Huafon Chemical's 300kt/year differential spandex expansion project adjusted to 250kt/year

According to Huafon Chemical's announcement, in order to improve the efficiency of capital use and combine the dpandex market situation and the company's actual operating conditions, Huafon Chemical Company plans to adjust the annual production capacity of the "Differential Spandex Expansion Project with an Annual Output of 300,000 tons" to 250,000 tons, of which 100,000 tons have officially reached production capacity, and the remaining 150,000 tons are still under construction (It is expected to be gradually put into production starting from 2025), and the original date when all production capacity reaches the scheduled usable state will be extended from February 2025 to December 2026.

After adjustment, the total investment of the project is 3.800 million yuan, which is greater than the net raised funds of 2.773.2924 million yuan. The amount of raised funds planned to be used by the project remains unchanged, and the part of raised funds less than the total investment of the project will be settled by the company's own funds.

Reasons for the adjustment of this fundraising project

In recent years, the capacity and output of Chinese spandex industry have maintained rapid growth. Leading enterprises in the industry have given full play to their scale effects and cost advantages to continue to rebuild and expand production, resulting in the elimination of backward production capacity in the industry and the continuous increase in industry concentration. At the same time, as the application fields of differentiated polyurethane products continue to expand, the market demand for differentiated polyurethane products will further increase, which will attract more production companies to build new differentiated polyurethane projects. Therefore, the company decided to invest in the construction of a "differentiated Spandex expansion project with an annual output of 300,000 tons" in 2021.