China’s carbon fiber industry started early and has made major breakthroughs since the 21st century. China has been producing polyacrylonitrile based carbon fibers since the late 1960s. Since entering the 21st century, China has restarted the localization process of carbon fiber, made major breakthroughs, successfully broke the blockade of foreign technology and equipment, and solved the “neck” problem in the field of carbon fiber. With the technological progress and increasing market demand, China’s carbon fiber industry has made breakthroughs, and a large number of carbon fiber production enterprises have emerged. China’s carbon fiber industry is mainly concentrated in Jilin, East China (Zhejiang, Jiangsu, Shandong) and other places. At present, with the continuous decline of carbon fiber varieties and application quality in China. China has established a complete industrial system from the research and development of preparation technology of series polyacrylonitrile carbon fibers to engineering, and then to thousand ton industrialization. The carbon fiber products with industrialization ability have covered four series: high strength, high strength medium mold, high strength and high mold. At present, China’s carbon fiber and its composite industry is in a period of rapid development, and the technical level and industrialization degree are gradually improved.
Jilin Province is the carbon fiber capital of China, and the layout of the whole industrial chain is perfect. Jilin is the cradle of China National Chemical Engineering Co.Ltd(601117) industry, an important chemical industry base in Northeast China, and has a good foundation for the development of carbon fiber industry. In the 1970s, Jilin Province pioneered the large-scale production of carbon fiber in China, realized the ice breaking of carbon fiber technology, and gradually grew into the main force for the development of carbon fiber in China. At present, Jilin Province has formed a relatively complete industrial chain of “propylene acrylonitrile polyacrylonitrile based carbon fiber precursor carbon fiber carbon fiber composite and downstream products”. Among them, Jilin has 25 carbon fiber production enterprises such as Jilin Chemical Fibre Co.Ltd(000420) , Jilin Carbon Valley, among which 12 Enterprises above Designated Size have realized large-scale production of 4 series of carbon fiber downstream products and more than 10 kinds of terminal products. Jilin economic and Technological Development Zone is a national carbon fiber high-tech industrialization base. At present, industrial clusters and supporting facilities have been formed in the upstream and downstream fields of carbon fiber industry, and the advantages of industrial clusters have initially appeared. During the “14th five year plan” period, Jilin Province will build a highland of carbon fiber industry and take the path of “terminal application leading, precursor carbon wire support and composite material coordination”. In November 2021, the “land scenery Three Gorges” project in Jilin Province was officially launched, providing strong support for the downstream demand of carbon fiber.
The carbon fiber industry chain layout of Jilin SASAC enterprises is complete and the enterprise synergy is strong. At present, Jilin SASAC actually controls two carbon fiber related listed enterprises Jilin Chemical Fibre Co.Ltd(000420) and Jilin Carbon valley The controlling shareholder of Jilin Chemical Fibre Co.Ltd(000420) group Jilin Chemical Fibre Co.Ltd(000420) group has a steady development trend in the carbon fiber sector. The group now has a precursor production capacity of 60000 tons / year and a carbon fiber production capacity of 25000 tons / year. At present, the carbon fiber precursor and carbon fiber expansion project are under construction. After completion, the total precursor production capacity will reach 330000 tons / year and the total carbon fiber production capacity will reach 100000 tons / year. The product specifications of carbon fiber precursor include 1K, 3k, 6K, 12K, 12s, 24K, 25K, 35K, 48K, 50K and other specifications. At the same time, Relying on the sound industrial system of Jilin Chemical Fibre Co.Ltd(000420) and Jilin Baojing, Jilin kaimeike, Guoxing carbon fiber and other subsidiaries and affiliated companies, Jilin Chemical Fibre Co.Ltd(000420) group’s carbon fiber business layout continues to extend downstream. Now it has entered the fields of large tow carbon fiber, small tow carbon fiber and carbon fiber composites, and is expected to grow into an integrated and comprehensive carbon fiber leading enterprise. Jilin Carbon Valley is mainly engaged in the R & D, production and sales of polyacrylonitrile based (Pan) carbon fiber precursor. Its products cover a full range of products from small tow to large tow of carbon fiber precursor. It mainly produces 1K, 3k, 6K, 12K, 24K, 48K and other PAN carbon fiber precursor and preoxygenated yarn. Jilin Carbon Valley has formed its own unique technical advantages and technical barriers by virtue of its technical experience and utility advantages accumulated in the production of DMAC wet two-step carbon fiber precursor for more than ten years. At the beginning of 2022, all production lines of the “40000 ton precursor project” originally built by Jilin Carbon valley have been completed and put into operation.
Investment suggestion: we suggest to pay attention to Jilin Chemical Fibre Co.Ltd(000420) , with continuous expansion of production capacity and comprehensive layout of carbon fiber industrial chain; Jilin Carbon Valley, with continuous upgrading of technology and deep moat, occupies the leading position of precursor.
Risk analysis: the risk of wind abandonment rate rising, the risk of low carbon fiber demand due to the slow transformation and promotion of wind power projects, and the risk of lower downstream demand than expected.
