Peter Driscoll, Managing Director of PCI Fibres, a specialist consultancy to the fibres and related industries, announced in a press release today that although polyester fibres capacity is still increasing in China, driven by projects already planned, financed and committed, there are now indications of some shake-out as a result of demand growth not being as strong as expected by the polyester industry in China and elsewhere in Asia.
Based on the latest edition of the PCI Fibres Red Book, a list of the world’s top polyester fibre producers still includes 15 Chinese firms in the top 20. But among these there are three producers, Kings Industry Group, Jiabao and ShiChuan, all three in textile filament and all based in Zhejiang, which have already reduced capacity this year. And Shaoxing Yuandong of Zhejiang in textile filament and staple has stopped expanding. Expansion also appears to have come to a halt at the following operations in Jiangsu, the first in staple and the other three in textile filament: Jiangyin Huahong, Taicang Senjo, Yixing Huaya and Wujiang Yingxiang.
Reports from the market suggest there are a number of other companies undertaking reductions in capacity, mostly without any announcement to the market. Fibre producers in expansion mode are usually quite keen to publicise any new capacity, but the reverse applies when capacity is being cut back.
Still expanding however is Tongkun, China’s top producer, as are in quite different circumstances two other leaders in the list: Reliance Industries in India and Indorama Ventures which is now spread across South East Asia, India, Europe and North America, partly with new capacity and partly through acquisition. Toray Industries has also expanded through acquisition, with the purchase of Woongjin in Korea, in consequence returning to the top 20 as listed by PCI Fibres.
