56 Billion Capital Enters Market! Q2 New Materials Investment Boom Erupts, Modified Plastics and Specialty Engineering Plastics Increase Across The Board

In the second quarter of 2026, China’s new materials industry has ushered in a new wave of investment enthusiasm. From April to the present, in just two months of Q2, seven listed companies in the chemical sector have successively announced capital increase and capacity expansion plans, with a total investment exceeding RMB 5.6 billion. These investments are primarily focused on new materials such as modified plastics, general-purpose engineering plastics, and specialty engineering plastics, targeting domestic substitution opportunities in core sectors including new energy vehicles, electronics and electrical equipment, and high-end equipment.

This wave of investment is not an isolated phenomenon. As a national strategic emerging industry, the new materials sector is a core foundation supporting the development of high-end manufacturing industries such as electronic information, artificial intelligence, and new energy vehicles. For a long time, China has relied on imports for high-end chemical new materials, with a relatively low rate of domestic self-sufficiency, making it a weak link constraining the autonomy and controllability of the industrial chain. This round of concentrated capacity expansion precisely reflects the determination of domestic companies to accelerate their catch-up in key materials.

Comprehensive Enterprise Overview: Leveraging Strengths and Achieving Multi-Point Growth(April–June 2026 Announcement)

Sino-Platinum Metals Co., Ltd.Three consecutive investment projects totaled over RMB 2.1 billion. In April, a private placement raised RMB 1.291 billion for the industrialization of precious metal new materials. On June 10, a subsidiary planned to invest RMB 411 million to build a green new materials industrial park for precious metals. On June 11, another RMB 400 million was invested to build a high-precision, high-performance composite materials base.

Kingfa Sci. & Tech. Co., Ltd.On April 17, a capital increase of RMB 2.487 billion was made to Ningbo Kingfa to support the construction of the “1.2 million tons/year polypropylene thermoplastic elastomer and modified new materials integrated project.” The total investment in the project is RMB 10.5 billion, and it is scheduled to be fully completed by the end of 2026.

Qide New MaterialOn June 11, nearly RMB 275 million was raised through a private placement to fund an annual production capacity of 45,000 sets of carbon fiber products and the construction of a factory in Thailand.

Dawn PolymerOn June 9, it was announced that the controlling subsidiary plans to invest 500 million yuan to construct a project with an annual production capacity of 25,000 tons of ethylene-propylene rubber.

Ke Bai'erOn June 5, it was announced that a wholly-owned subsidiary plans to invest 68.5267 million yuan to construct an "Integrated Project for the Annual Production of 50,000 Tons of High Polymer Innovative Composite Materials and Functional Masterbatches."

Xingxin New MaterialsOn May 28, it was announced that 155 million yuan of the raised funds would be used to implement the "Annual production of 10,500 tons of bisphenol series products and 150 tons of supported metal catalysts project."

Silver Jubilee TechnologyOn April 28, the company disclosed that it would replicate and expand its PPO production line at the original site, with completion expected in the second half of 2026.

2026 Expansion Plans of Other Representative Enterprises

PrittOn March 11, the Tianjin base received an additional investment of RMB 200 million to add 16 modified plastics production lines and 4 high-filled POE production lines. Upon completion in 2026, the Tianjin base’s production capacity will increase to 150,000 tons per year. The company plans to push toward a modified plastics production capacity of 1 million tons by 2029.

Wote SharesThe LCP synthetic resin production capacity at the Chongqing base has reached 25,000 tons, ranking second in the country. In May 2026, it underwent intensive research by 47 institutions and clearly stated its goal of becoming the world's largest LCP supplier.

Guoen Co., Ltd.In 2026, we will continue to promote the PEEK full industry chain project (with an annual production capacity of 1,000 tons of PEEK polymer), an 8,000-ton high-purity anhydride monomer project, and a 500-ton PSPI photoresist project, among others. The planned investment for these five major projects exceeds 3.8 billion yuan.

Sinochem InternationalIn June, the company announced plans to acquire 100% equity in Nantong Xingchen for RMB 2.11 billion, strengthening its engineering plastics business. The 10,000-ton-per-year polyphenylene ether production line project of Nantong Xingchen’s Ruicheng Branch began construction in April.

Wanhua ChemicalIn May 2026, the environmental impact assessment for the Nylon 12 plant expansion and technical renovation project was announced. With an investment of RMB 78.68 million, the project will bring total PA12 resin production capacity to 40,000 tons per year upon completion, ranking among the leading levels in China. The planned investment for major projects in 2026 is RMB 27.3 billion.

Huitong Co., Ltd.On March 13, the foundation was laid for the second phase of the 300,000-ton high-performance composite materials project at the Anqing base, with a total investment of 1.1 billion yuan and an additional production capacity of 150,000 tons, aiming to create a smart manufacturing lighthouse factory.

Dongcai TechnologySubsidiary Meishan Dongcai is investing in and constructing a project with an annual capacity of 20,000 tonnes of electronic materials for high-speed communication substrates (including 3,500 tonnes of hydrocarbon resin), which is expected to be ready for trial production with feedstock input by June 30, 2026.

Nanjing JulongThe Jiangbei New District's special materials project with an annual output of 40,000 tons has started construction, with a total investment of 130 million yuan; the Huizhou modified plastics project with an annual output of 60,000 tons has an investment of 110 million yuan; the Mexico base has partially commenced production.

Aggregation orderThe construction of the 80,000-ton PA66 project in Zibo is progressing steadily, with feedstock trial production expected to begin in 2026.

Changhong High TechnologyPhase I of the 600,000 tpa fully biodegradable plastics project, with a capacity of 120,000 tpa, is ready for commissioning; Phase I of the Guangdong Acrylic Acid Industrial Park has commenced construction as planned.

Blue Dawn TechnologyInvesting 1.15 billion yuan to construct a high-end materials industrial park for life sciences; establishing an annual production capacity of 20,000 tons for adsorption separation materials.

Driving Force Analysis: Growth Logic Under Triple Resonance

Beyond the leading companies in this round of capacity expansion, more enterprises across different segments and of varying sizes are also accelerating their in the new materials sector through a range of approaches, including private placements, expansion and renovation projects, and technological breakthroughs. From the cases above, several trend-related features worthy of deeper reflection can be identified:

Feature 1: Modified plastic tracks have entered the "million-ton club" era. 

Kingfa Sci. & Tech., PRET, Guoen Co., and Huitong Co. are among the leading enterprises that have either planned or already built production capacity targets reaching the million-ton or even tens-of-billion-scale level. Kingfa Sci. & Tech.’s Ningbo project has a total investment of RMB 10.5 billion; PRET plans to reach 1 million tons by 2029; Guoen Co.’s sales of modified plastics have already climbed to the second highest in China; and Huitong Co. is further ramping up capacity through its 300,000-ton Anqing project. The golden era of domestically produced automotive modified plastics is accelerating.

Feature 2: Specialty engineering plastics are moving from a niche market to the mainstream. 

Watts Holdings focuses on the platform layout of LCP, PPS, and PPA, Guoen Co., Ltd. connects the entire industrial chain of PEEK, Plitec builds a full chain of LCP films and fibers, and Sinochem International consolidates PPE specialty resins. These companies collectively point to a judgment: special engineering plastics are stepping out of "laboratory scale" and being batch introduced into applications in the automotive, AI server, and humanoid robot industries.

Feature 3: Carbon fiber composites are flourishing in multiple areas. 

Qide New Materials is expanding production through a private placement to add 45,000 sets of carbon fiber products, Nanjing Julong is advancing a project with an annual capacity of 30 tons of carbon fiber composite components, and Orinko is strategically positioning itself in advanced composite materials. Carbon fiber materials are gradually expanding from high-end aerospace applications into mass-consumption sectors such as new energy vehicles and the low-altitude economy.

Feature 4: Breaking through “chokepoint” bottlenecks has become the core driving force for capacity expansion. 

Xinxin New Materials is advancing the localization of 4,4'-biphenol, a key monomer for LCP and PEEK; Dawn Polymer is expanding EPDM production to help fill the domestic gap in high-end rubber; Sinochem International has achieved stable supply of para-aramid to the world’s top five optical fiber and cable customers; and Sunresin has made landmark breakthroughs in ultrapure water resins and adsorption and separation materials. Chinese companies are shifting from followers to peers—and even leaders.

Outlook: The Leap of Domestic Substitution from “Point” to “Surface”

Overall, the new materials investment boom in the second quarter of 2026 shows several distinct characteristics: first, the investors are diversified, including both industry leaders and companies deeply engaged in niche segments; second, investment is focused on areas where domestic substitution demand is most urgent, such as modified plastics, specialty engineering plastics, and precious metal materials; third, downstream applications are extending from traditional sectors such as home appliances and automobiles to higher value-added fields such as new energy vehicles, semiconductors, and high-end equipment.

From a broader perspective, Chinese enterprises are shifting from isolated breakthroughs to systematic substitution. The localization of 4,4'-biphenol monomers, the expansion of PPO production lines, and the increasing adoption of carbon fiber composites in automotive lightweighting—behind each project lies a story of breaking dependence on imports and mastering core technologies.

The road to domestic substitution remains long, but the RMB 5.6 billion capital commitment has already marked a new chapter in the accelerated development of China’s advanced materials industry. When Kingfa Science & Technology’s RMB 10-billion-level integrated project is fully put into operation by the end of 2026, when Qide New Materials doubles its carbon fiber product capacity, and when Guiyan Platinum’s three investment projects all reach full production, we have reason to believe that China’s advanced materials industry will reach a new level in its capacity for independent and controllable development.

Editor: Winnie