3.469 billion yuan! FSPG and Hunan Petrochemical Jointly invest in the Construction of a Nylon Film Integration Project

Hz info：On September 26th, Foshan Fosu Technology Group Co., Ltd. (referred to as "Fosu Technology") announced its intention to jointly invest with Sinopec Hunan Petrochemical Co., Ltd. (referred to as "Hunan Petrochemical"), a subsidiary of Sinopec, to establish a project company in Yueyang City, Hunan Province, and invest in the construction of the "Polyamide Nylon Film Integration Project". This move marks a substantial step forward in Fosu Technology's strategy to extend the nylon film industry chain upstream, aiming to enhance its comprehensive competitiveness in the field of polymer functional films.

Project Overview: With a total investment of 3.469 billion yuan, we aim to build an integrated production capacity of "slicing+film"

According to the announcement, the registered capital of the project company is 960 million yuan, of which Foshu Technology contributes 576 million yuan and holds 60% of the shares, making it the controlling shareholder; Hunan Petrochemical invested 384 million yuan and holds a 40% stake. After the completion of the project company, it will be included in the scope of Buddha Plastic Technology's consolidated financial statements.

The total planned investment for the project is 3.469 billion yuan (including value-added tax and operating working capital). Among them, the tax exclusive fixed assets investment is 2.792 billion yuan, including 2.542 billion yuan of investment in production equipment and supporting facilities, and 250 million yuan of construction costs and initial working capital; An additional operating working capital of 409 million yuan and a value-added tax of 270 million yuan will be arranged.

The project is located in Yueyang Green Chemical Industry Park, with plans to construct 4 polyamide 6 slicing (PA6 slicing) production lines and 5 biaxially oriented nylon film (BOPA film) production lines, with designed annual production capacities of 280000 tons and 125000 tons, respectively. The entire project construction period is 38 months, and the BOPA film production line will be built and put into operation in batches.

Industrial Collaboration: Strong Collaboration, Connecting the "Caprolactam PA6 Slices BOPA Film" Industry Chain

PA6 slices, as a key raw material for BOPA films, are also widely used in fields such as nylon fibers and engineering plastics, with downstream coverage in industries such as textiles and clothing, electronic appliances, and new energy vehicles. BOPA film is widely used in high growth markets such as high-end food packaging, pharmaceutical sterilization packaging, and soft pack lithium battery packaging due to its excellent barrier properties, puncture resistance, and high and low temperature resistance.

As the first domestic enterprise to achieve mass production of BOPA film, Foshu Technology has led the development of the national standard for this product and accumulated over 30 years of experience in biaxial stretching technology, production line transformation, and operational management. Hunan Petrochemical has the world's largest single scale caprolactam industry chain project, with significant advantages in raw material supply, PA6 slicing production, and large-scale project management.

The cooperation between the two parties aims to build a complete industrial chain loop from "caprolactam PA6 slicing BOPA film", leverage the agglomeration effect of the park, achieve stable supply of raw materials, optimize energy consumption and logistics costs, improve production and operation efficiency, and create an integrated industrial base with leading technology, significant scale, and outstanding synergistic effects.

Financial Security and Strategic Significance: Financial Stability, Supporting Long term Development

As of June 30, 2025, the asset liability ratio of Fosu Technology is 28.96%, with a monetary fund balance of 594 million yuan, and its operating and credit conditions are good. The project funding is planned to be solved through a combination of capital and bank financing. The company stated that the comprehensive financing cost is controllable, and the funding arrangement will not affect the existing business operations.

This integrated project is highly in line with the strategic development direction of "polymer functional films and composite materials" of Foshu Technology. Extending upstream not only helps to enhance BOPA's film business's cost competitiveness and supply chain security, but also further strengthens the company's overall solution capabilities in emerging fields such as new energy materials and high-end packaging.

Enterprise background: Deeply cultivating membrane materials and focusing on new energy

Fosu Technology was founded in 1988 and listed on the Shenzhen Stock Exchange in 2000. It is a high-tech enterprise controlled by the state-owned enterprise in Guangdong Province and has been selected as one of the top 500 manufacturing enterprises in China for several consecutive years. The company focuses on polymer functional films and composite materials, with products covering high-tech barrier materials such as capacitor films, polarizing films, and breathable films. Multiple products have achieved domestic substitution and broken through the bottleneck link.

In 2025, the company will acquire Jinli Shares, a lithium battery separator enterprise, for 5.08 billion yuan, accelerating its layout in the new energy materials field. As of 2024, the company has a total of 368 authorized patents and has led or participated in the development of 56 national and industry standards, possessing full chain capabilities from technology research and development to industrialization.

BOPA film: excellent performance, broad prospects

BOPA film, as the third largest category of biaxially oriented films, has two core processes: synchronous stretching and asynchronous stretching. Due to its high barrier, high strength, high temperature resistance, and excellent appearance, it is widely used in food cooking and packaging, freezing and preservation, pharmaceutical sterilization, lithium battery aluminum-plastic packaging, and agricultural seed bags.

The industry is moving towards high-performance, lightweight, environmentally friendly, and intelligent directions, such as the development of nano coated ultra-high barrier films, bio based biodegradable BOPA, intelligent asynchronous stretching production lines, etc. These trends also bring new development opportunities and technological challenges to leading enterprises such as Formosa Plastics Technology.

The investment has been approved by the board of directors of Fosu Technology and is still awaiting approval from the shareholders' meeting. After the completion of the project, it will effectively promote the strategic extension of Foshu Technology from material processing to the upstream of the industrial chain, strengthen its competitiveness and discourse power in the global high-end film market, and inject new momentum into the high-quality development of China's new materials industry.