Shenma outlines €70m tire cord project in China

Beijing – Shenma Industrial Co. has detailed plans for a major polyamide 66 (PA66) industrial yarn and dipped tire cord project in the Ningdong Energy and Chemical Base, Ningxia, central China.

With a total investment at Yuan560.76 million (€68 million), the project “PA66 high-performance dipped tire cord Ningdong project” will have the capacity to produce 35 kilotonnes per annum (ktpa) of industrial yarn and 26ktpa of dipped tire cord once fully complete.

In the first phase, the plant will have a production capacity of 20ktpa of PA66 yarn and 13ktpa of dipped tire cord, according to a 25 Nov stock exchange filing.

Shenma expects to start construction work on the project in March next year with production scheduled for September 2027.

The plant location takes advantage of western China’s resource base to “effectively reduce production costs” for tire cord and strengthen competitiveness in export markets.

Shenma stressed that tire applications were central to the investment, noting that PA66 cords were ‘priority materials for high-end rubber tires,’ helping reduce weight and extend durability of EV tires.

According to the filing, other PA66 applications include airbags, industrial machinery, and wind turbine blade release fabrics.

Shenma currently operates 130ktpa of PA66 industrial yarn and 80ktpa of PA66 tire cord, with more than 90% of output classed as “high-end products.”

Around 60% of its products are exported, giving the company a reported 40% global market share, said the filing.

The new Ningdong project aims to “fill the domestic supply gap for high-performance dipped tire cord,” supported by new production technology, upgraded equipment and strengthened R&D.

Shenma said it plans to develop proprietary technologies and enhance the performance of its products in high-end technical textiles.

Citing local marker research, the filing said China’s demand for PA66 accounted for more than 50% of global consumption in 2024.

Global demand for PA66 is forecast to reach 1.32 million tonnes by 2025, with annual average growth of 25%, and is expected to rise to 2.88 million tonnes by 2030, Shenma added.

According to the Chinese supplier, PA66 production remains concentrated globally in the US, Italy, Germany, Japan and China, with leading suppliers including Invista, Ascend, BASF, Shenma and Asahi Kasei.

Shenma said it is the only Chinese producer among the global top five, ranking ‘first globally’ in PA66 tire cord fabric production.