YTTH Specialty Fiber Technology Group specializes in R&D, production and marketing of spandex, aramid and other high-performance fibers.
Among them, spandex is mainly used in the textile field and the medical and health field to increase the elasticity of the fabric. Aramid has always been a key basic material in the field of defense and military industry. It is mainly used in military and police combat uniforms, honeycomb structure materials, bulletproof vests, and bulletproof armor. At present, the company has all the qualifications to participate in military research and production licenses.
The orderly construction and expansion of various business sections:
①Spandex business: YTTH is the first spandex manufacturer in China, and its production capacity and market share rank among the top in the country. However, in recent years, with the popularity of spandex applications, the growth rate of demand has gradually slowed down, and the situation of overcapacity has continued for many years. In the short term, the entire industry has overcapacity and market competition is becoming increasingly fierce. In the medium and long term, the spandex industry faces rare integration opportunities, and it is expected that the industry's concentration will continue to increase in the future.
The company implements a dual base strategy. A new high-efficiency differentiated coarse denier spandex project (15,000 tons/year) was built in the park to promote the efficiency, scale, and benefit of differentiated products; in Ningxia, vigorously implement low-cost expansion strategies, focusing on the development of large-scale, low-cost, High-efficiency spandex products, new green differentiated spandex intelligent manufacturing engineering project (30,000 tons/year). According to the implementation progress, the backward production capacity will be eliminated gradually. Through the conversion of old and new kinetic energy, we can rebuild the competitive advantage of spandex business.
②Aramid business: YTTH is a leading enterprise in China's aramid industry (divided into meta and para aramid), and its meta aramid and para aramid technology reserves and production capacity currently rank first in the country. The competitors in the aramid industry are mainly DuPont in the United States and Teijin in Japan.
According to YTTH's five-year development plan, the company plans to expand the production of para-aramid and meta-aramid to 12,000 tons/year. In terms of meta-aramid, the company implements a high-performance meta-aramid efficient integration industrialization project for protection in industrial parks, with a new production capacity of 8,000 tons per year, which is expected to be put into production in the third quarter of 2020; for para-aramid, the company is in the NX region The expanded 3,000-ton/year high-performance para-aramid project has now been successfully trial-produced and achieved full-line connectivity, with a current capacity of 4,500 tons/year.
Demand for the military application of para-aramid has increased, and there is a wide range of domestic substitution: the demand for para-aramid in China exceeds 10,000 tons/year, but more than 80% depends on imports. The main production capacity is occupied by DuPont and Teijin Corporation of the United States. On June 18, YTTH's NX production base 3000 tons/year para-aramid production line was officially put into operation, superimposing the company's original 1500 tons/year production capacity, the company will have 4500 tons/year para-aramid production capacity. Para-aramid can be used in bullet-proof vests, bullet-proof armor, etc. With the increasing military training in China and the increasing friction between China and the United States, the military application of para-aramid will rapidly increase, and the company will also be localized Fully benefit from substitution.
Implement a major reorganization, integrate the group, and expand the downstream industrial chain: YTTH acquired 65.02% equity of China's leading aramid paper manufacturer YTMS. After the completion of this transaction, the company's business will extend to downstream aramid paper and its derivatives, high The performance aramid fiber industry chain is more complete.
Acquisition of YTMS aramid paper business, after the completion of the acquisition, the company will hold 96.86% of YTMS shares. The main products of YTMS are meta-aramid paper and para-aramid paper and their derivatives. It has a production capacity of 2,200 tons/year of aramid paper and the current annual output is about 500 tons. The mid-position aramid paper can be used for honeycomb core structural parts such as airplanes, ships, and high-speed rails, and the para-position aramid paper can be used for aerospace honeycomb core materials. Downstream customers include military industry users such as the aviation industry.