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China's chemical fiber industry eliminated over one million tons of poor quality production each year
At the 12th China International Chemical Fibre Conference held in Jiangyin City, Jiangsu Province on the 8th, it was revealed that in recent years, as raw material costs have risen and market competition has intensified, the chemical fibre industry in China has undergone a significant structural adjustment. This has led to the elimination of hundreds of thousands of tons of low-quality production capacity annually, marking a clear trend toward what is known as the "three concentrations" in the industry structure.
According to Xu Kunyuan, vice president of the China Textile Industry Association, the polyester industry eliminated approximately 1 million tons of low-quality production capacity each year in 2004 and 2005, with fiber-grade polyester being the most affected. In fact, 90% of the polyester production capacity was phased out during this period. In 2005 alone, the viscose staple fiber and nylon industries removed 166,000 tons of substandard production capacity, mainly due to small-scale operations and outdated technology.
Currently, the industry's structure continues to improve, and the "three concentrations" are becoming even more evident. First, production capacity is increasingly concentrated in large enterprises. In 2005, there were 22 companies producing over 200,000 tons annually, with a combined capacity of 9.08 million tons, accounting for 47.2% of the total. These enterprises had an average annual output of 413,000 tons. Additionally, 59 companies produced over 100,000 tons per year, and 93 companies exceeded 50,000 tons. These are the key players driving China’s chemical fibre industry in both domestic and international markets.
Second, production capacity is concentrating in key market areas. As a critical raw material supplier for the textile industry, the chemical fibre sector is closely aligned with textile clusters. Most textile clusters are located in eastern provinces like Jiangsu and Zhejiang, making up 44 clusters—half of the national total. Similarly, 27 chemical fibre clusters are found in these two provinces, representing 68% of the country's total. In 2005, Jiangsu and Zhejiang accounted for 12.56 million tons of production capacity, or 65.2% of the national total.
Third, production capacity is shifting toward private enterprises. By 2005, private enterprises controlled more than two-thirds of the industry’s total production capacity, reaching 66.77%. Meanwhile, the share of state-owned and state-controlled enterprises dropped to 27.4%, indicating a growing dominance of private players in the sector. This shift reflects broader trends in China’s industrial development and highlights the increasing role of private enterprise in driving efficiency and innovation.