Yancheng Jinguang Launches Construction of 500,000 t/a Specialty Cellulose Fiber Project

Jinguang Group has officially commenced construction of the first phase of its 500,000-ton-per-year differentiated cellulose fiber project at the Jinguang Yancheng Circular Economy Industrial Base in the Binhai Port Industrial Park, located in Yancheng.

The project marks a major step in building a large-scale, integrated cellulose fiber manufacturing hub that will support the production of high-end textile materials and other fiber-based products. The overall development of the industrial base is planned in phases and is expected to eventually reach a total capacity of 2 million tons per year of differentiated cellulose fibers, supported by a complete industrial chain including energy systems, environmental protection infrastructure, and public utility facilities.

The first phase involves a total investment of RMB 10.6 billion (approximately USD 1.46 billion) and covers about 3,000 mu (around 200 hectares), with a total construction area of approximately 710,000 square meters. Key facilities will include raw material processing units, spinning systems, acid treatment plants, sodium sulfate production, wastewater treatment systems, and a combined heat and power (CHP) plant.

Once operational, the first phase will add four high-end fiber production lines, delivering 500,000 tons per year of differentiated cellulose fiber capacity. The facility will focus on producing functional and differentiated cellulose fibers designed for high-value applications in premium apparel, home textiles, hygiene products, and medical materials.

Upon completion and commissioning, the project is expected to generate annual revenue of approximately RMB 12 billion and contribute around RMB 750 million in annual tax revenue, strengthening the economic development of the region and supporting the growth of advanced fiber manufacturing in China.

The development of the Yancheng Circular Economy Industrial Base aims to create a technologically advanced intelligent manufacturing center for cellulose fibers, further integrating pulp-based materials with downstream textile and industrial applications.