Title: Hengli Petrochemical’s Subsidiary Kanghui New Materials Begins Spin-Off and Listing, Set for Growth in New Materials Industry
On July 4th, Hengli Petrochemical, a leading Chinese petrochemical company, announced its plans for the spin-off and listing of its subsidiary, Kanghui New Material Technology Co., Ltd. The move aims to expand the company’s presence in the field of new materials and leverage the capital market for business development.
Kanghui New Materials has established itself as a world-leading high-tech enterprise, specializing in the production of high-end, differentiated, green, and environmentally friendly functional membrane materials, high-performance engineering plastics, and biodegradable materials. With its strong self-owned synthesis technology and independent research and development capabilities, the company has gained a prominent position in the industry.
Tianfeng Securities, in its research report, emphasized that Kanghui New Materials is a vital asset for Hengli Petrochemical’s quest for differentiation and green development. The company is currently the largest PBT manufacturer in China and the second-largest globally, producing 12-micron silicon-coated release-type laminated lithium battery protective film online. With the industry’s rapid growth and new production capacity, Kanghui New Materials is poised to witness improved development prospects.
The spin-off and listing will support Kanghui New Materials in accessing the capital market, facilitating business expansion, and unlocking its independent value. This move will also enhance the overall valuation of Hengli Petrochemical.
Kanghui New Materials’ strength lies in its production capacity advantages. Over the years, it has focused on creating industry-leading biaxially oriented polyester films, lithium battery separators, PBT engineering plastics, functional polyester, PBS/PBAT biodegradable plastics, among others. The company currently leads in terms of production capacity, with substantial market share in PBT engineering plastics, BOPET functional film, and PBAT.
With new production capacity already in partial operation and additional capabilities under construction, Kanghui New Materials’ performance is expected to improve further. The company’s new projects include a 450,000-ton degradable plastic project, a 470,000-ton high-end functional polyester film project, a 100,000-ton special functional film project, and a 2.6 million-ton high-performance polyester project.
Kanghui New Materials is also actively entering the lithium battery separator market, anticipating increased demand. Projections indicate that China’s lithium battery separator shipments may reach 33 billion square meters by 2025, with an annual growth rate of 39% from 2023 to 2025. Capitalizing on this opportunity, the company is well-positioned to embark on a second growth curve.
Aside from its production capacity and scale advantages, Kanghui New Materials emphasizes technological innovation. Through meticulous management of production processes and continuous improvement of technical processes, the company has developed a series of unique and functional products, solidifying its market position. Furthermore, Kanghui New Materials has overcome domestic material shortage technology and supply chain bottlenecks, effectively addressing industry challenges.
Looking ahead, Kanghui New Materials is well-prepared to seize new market opportunities driven by the transformation and upgrading of China’s economy. The company’s strengths in optical films, functional films, degradable plastics, lithium battery separators, and PBT engineering plastics will enable it to capitalize on the growing demand in these sectors.
With its world-leading high-end equipment and self-developed process technology, Kanghui New Materials is well-equipped to maintain a long-term competitive advantage and pursue extensive growth in the industry.
Overall, the spin-off and listing of Kanghui New Materials not only opens doors for its own growth but also positions Hengli Petrochemical for success in the new materials industry.