Polyester bottles and chips: New units are launched centrally, production capacity ushers in a rapid expansion cycle

Lead: Recently, with the centralized commissioning of 750,000 tons of new equipment in Sanfang Lane and 600,000 tons in Wankai's third phase of Chongqing, as well as the early launch of new production capacity in Hanjiang River, Sichuan, China's polyester bottle production capacity has increased significantly by 1.95 million tons this year, and the production capacity growth rate has reached 16%.

Table 1. Statistics of China's new polyester bottle production capacity in 2023 (unit: 10,000 tons)

In May, Wankai's 600,000-ton new plant in Chongqing was put into operation. Currently, Wankai's total production capacity has reached 3 million tons, ranking first in polyester bottle sheet production capacity. In early June, a new 750,000-ton polyester bottle and sheet device in Sanfang Lane was officially put into operation and shipped. Currently, around 60%-70% of the construction is underway. Coupled with the original production capacity of 2 million tons, Sanfang Lane's total production capacity has reached 2.75 million tons, ranking second in polyester bottle and sheet production capacity. Yisheng and China Resources 'polyester bottle sheet production capacity is both 2.7 million tons, ranking third in polyester bottle sheet production capacity. At present, the top four production capacities of polyester bottle sheets have accounted for 77.84% of the total production capacity. The production capacity of other manufacturers only accounts for about 22%, and their market share is gradually occupied by leading manufacturers, and the pressure of market competition gradually increases in the later period.

In recent years, bottle and tablet companies have added a large number of new production capacity, ranging from 500,000 to 800,000 tons, so the proportion of production capacity of large companies has gradually increased. As of now, coupled with the 600,000 tons of new equipment newly put into operation in Hanjiang River, Sichuan at the end of March this year, the new production capacity of polyester bottle sheets in China has reached 1.95 million tons so far, and the total production capacity of polyester bottle sheets in China has reached 14.325 million tons. The growth rate of production capacity is as high as 15.76%. Among them, the average growth rate of production capacity from 2018 to 2022 is 8.30%.

In the next few years, China's new bottle-grade PET production capacity will enter a new round of peak production. The major manufacturers are actively expanding new production capacity. Yisheng, Sanfangxiang and Wankai are still actively investing in new production capacity. By then, the production capacity of the major manufacturers will continue to expand, the distribution of enterprises will become more concentrated, and the share of leading enterprises in the market will continue to expand. New companies such as Fujian Baihong, Anhui Haoyuan, and Tongkun will also actively invest in the bottle-grade PET industry. The number of bottle-grade PET companies will continue to increase, and the competitive pressure in the industry will continue to increase in the later period.