2 Tongxiang giants cooperate in overseas entrepreneurship
Polyester filament giants Tongkun Group and Xinfengming Group recently announced plans to jointly launch Taikun Petrochemical (Indonesia) Co Ltd to carry out a refining-petrochemical integration project.
The new company is based in the Kalimantan Utara Industrial Park of Indonesia and covers an area of 898 hectares.
It is expected to have a refining oil capacity of 16 million metric tons per year, a p-xylene (PX) production capacity of 5.2 million tons per year, and an ethylene production capacity of 800,000 tons per year. Construction will last four years.
The construction project has a value-added tax financing amount of $8.62 billion. It is expected to achieve an average annual operating income of $10.43 billion and an average annual after-tax profit of $1.32 billion.
In recent years, Tongxiang has strengthened economic and trade cooperation with Indonesia, and Indonesia has become an important trade partner of Tongxiang.
In the first five months of this year, Tongxiang accumulated a total of $1.61 billion in foreign direct investment in Indonesia, ranking first in Jiaxing and among the highest in Zhejiang province.
By the end of the 14th Five-Year Plan (2021-2025) period, the two groups are expected to have a purified terephthalic acid (PTA) production capacity of more than 20 million tons per year and a polyester filament production capacity of 25 million tons per year. The PX production will be transported back to China for use by Tongkun Group and Xinfengming Group's production bases in Zhejiang, Jiangsu, and Fujian provinces.