The functional textile new materials project of Xinxiang Chemical Fiber with investment of 3.6 billion yuan landed in Dongying, Shandong

The Xinxiang Chemical Fiber 5,000-ton mushroom straw industrialization project is set to commence production in December, marking the beginning of a strategic goal of 5 million tons. Recently, Xinxiang Chemical Fiber (000949.SZ) signed a contract for its functional textile new materials project in the Dongying Economic and Technological Development Zone, causing its stock price to quietly rise for two consecutive trading days. The signing of the Dongying project signifies a solid step forward in cross-regional cooperation following Xinjiang and marks further progress in the industrialization of mushroom straw fiber for Xinxiang Chemical Fiber.

The Dongying project includes two major components: mushroom straw cultivation and the industrialization of biomass fiber, with a total initial investment of 3.6 billion yuan, jointly funded by Xinxiang Bailu Investment Group Co., Ltd., the Dongying Economic and Technological Development Zone Management Committee and China Youth Travel Service Urban Development Holding Co., Ltd.

The textile industry is paying significant attention to Xinxiang Chemical Fiber's innovative breakthroughs. Although the company has not yet produced mushroom straw fiber in large quantities, it has received an overwhelming number of inquiries from downstream sectors. Industries such as viscose staple fiber, lyocell fiber, and viscose filament have expressed concern about the production process of mushroom straw fiber, with some major players in the staple fiber industry already procuring small batches of mushroom straw fiber from the company.

Industry insiders estimate that, conservatively calculated at 10,000 yuan per ton, the output value of 1 million tons of mushroom straw fiber from Xinxiang Chemical Fiber will reach 10 billion yuan in five years, and exceed 50 billion yuan in ten years.