Huafeng Chemical's Chongqing spandex expansion begins trial operations

Huafeng Chemical Co., Ltd. (stock code: 002064) has announced that the remaining 75,000 tonnes of capacity from its "Annual Output of 250,000 Tonnes of Differentiated Spandex Expansion Project" has entered trial operation. This project, managed by its subsidiary Huafeng Chongqing Spandex Co., Ltd., is part of a larger plan originally aiming for 300,000 tonnes per year. The company expects a period of gradual commissioning before reaching full production.

This new capacity leverages advanced equipment, processes, and technologies, which the company states requires time for full operational efficiency. Huafeng Chemical possesses an integrated R&D, production, and technical service system within the spandex industry, with proprietary intellectual property in key technologies. The expansion is expected to boost the company's spandex production capacity, reinforce its industry leadership, and enhance market influence and core competitiveness.

However, the company also cautioned investors about potential risks, including fluctuations in market prices and demand for spandex products due to national industry policies, economic cycles, and market supply-demand dynamics. These factors could impact the project's economic benefits, potentially leading to outcomes below expectations. The announcement references prior disclosures regarding the project's progress and adjustments, dating back to January 2021.