KANGHUI NEW MATERIAL TECHNOLOGY CO.,LTD.

Introduction

KANGHUI NEW MATERIAL TECHNOLOGY CO., LTD. (康辉新材料科技有限公司) is a Chinese polymer and film materials manufacturer based in the Xianrendao Energy and Chemical Industry Zone in Yingkou, Liaoning Province, and is part of the Hengli petrochemical industrial group through Hengli Petrochemical Co., Ltd. The company is positioned around high-performance biaxially oriented polyethylene terephthalate (BOPET) film, PBT engineering plastics*, **functional polyester, and **biodegradable materials* such as **PBS/PBAT, placing it within the higher-value segment of the global plastics and advanced materials supply chain.

Kanghui’s industrial profile combines upstream polyester chemistry with downstream conversion and film-drawing technology, supported by Hengli’s polyester synthesis capabilities and German Brückner film production technology. Publicly available industry profiles and company materials also indicate activity in lithium-ion battery separator-related films, optical and packaging films, and other functional polyester applications, suggesting a business model focused on differentiated materials rather than commodity plastics alone.

The company was established in 2011 and has since developed into a sizable manufacturing operation with reported employment in the 2,000–3,000+ range and a registered capital of about RMB 1.68 billion. It has also been identified by Chinese government and industry sources as a specialized, refined, distinctive, and innovative enterprise (“specialized and sophisticated” SME designation), underscoring its role as a technology-oriented plastics producer rather than a basic converter.

History and Development

Kanghui New Material Technology was established in 2011 in Yingkou’s Xianrendao petrochemical zone, where it was developed as a key investment project tied to Hengli’s broader petrochemical and new materials strategy. The company’s stated development objective was to create a production base for BOPET film, PBT engineering plastics, functional polyester, and biodegradable plastics.

A major milestone in its industrial development was the build-out of large-scale polyester and film production capacity, including reported projects for BOPET film and film-grade polyester chips. Company materials have also described a project framework with substantial planned investment and expected integration of production, R&D, and commercialization, reflecting the capital-intensive nature of advanced polymer manufacturing.

Another notable milestone was the company’s reported development and mass production of an ultra-thin 3.9-micron carbon ribbon base film, which was described in Hengli-related disclosures as a domestic first using a melt direct-drawing process. This indicates a capability in precision film engineering, where thickness control, uniformity, and process stability are critical to performance in high-end electronic and industrial uses.

In 2022, local government reporting cited the company as operating a sizeable workforce and generating substantial revenue, while also describing it as an intelligent manufacturing demonstrator at the provincial level. In 2024, Hengli Petrochemical disclosed plans related to the spin-off and restructuring of Kanghui New Materials, reflecting the company’s strategic importance within the group’s new materials portfolio.

Business Operations and Segments

Kanghui operates as a materials platform spanning polymer synthesis, film production, and engineered plastics. Its business can be understood in three broad segments:

• Polyester-based films, especially BOPET and specialized functional film products.
• Engineering plastics, notably PBT resin and related applications.
• Biodegradable and specialty materials, including PBS/PBAT and other functional polyester products.

The company is located in a heavy chemical and energy industrial zone, which is consistent with integrated feedstock access, utilities-intensive production, and large-scale industrial logistics. Chinese regulatory and corporate records also indicate that it is authorized for a broad set of activities including plastic products manufacturing, synthetic material production, biobased materials, and goods import/export, although some activities require separate approvals.

Kanghui’s corporate structure and market presence are closely linked to Hengli Petrochemical, which provides industrial backing, upstream integration, and group-level strategic coordination. This linkage is important in the plastics industry because cost competitiveness and product consistency often depend on integration from monomer or resin production through downstream conversion and film processing.

Products and Technologies

Kanghui’s reported product portfolio includes the following major categories:

The company’s technology profile emphasizes biaxial orientation for film performance and precision polymer processing for engineered applications. BOPET films are valued for mechanical strength, dimensional stability, barrier performance, optical clarity, and heat resistance, which explains their broad use in packaging, electronics, and energy-related applications.

Public profiles also state that Kanghui uses Brückner film production technology alongside Hengli’s polyester synthesis technology. In practical terms, this suggests an industrial setup focused on high-line-speed film stretching, thickness consistency, and control of physical properties such as tensile strength and shrink behavior, which are central to industrial film quality.

The company has also been linked to the drafting and implementation of group standards for PET-butylene adipate polylactic acid film special material and PBAT talc film special material, showing participation in standardization rather than only commercial production. Such involvement typically reflects both product maturity and an effort to define technical specifications in emerging biodegradable material categories.

Applications and End Markets

Kanghui’s products serve several end markets across the plastics and materials economy:

• Packaging, where BOPET films are used for laminates, labels, and functional packaging layers.
• Optoelectronics and industrial films, including optical or specialty films with controlled surface and dimensional properties.
• New energy applications, particularly photovoltaic-related film uses and battery-related materials.
• Engineering and automotive sectors, where PBT resin is used for durable molded parts and electrical components.
• Biodegradable materials markets, which are increasingly shaped by environmental policy and customer demand for compostable options.

The company’s market orientation appears to be high-performance and differentiated rather than generic commodity supply. This positioning is significant in the plastics industry because margins and customer retention are often stronger where material performance is tied to precise end-use requirements, such as optical clarity, dielectric behavior, heat resistance, or compostability.

Global Presence and Market Position

Kanghui is headquartered in Yingkou, Liaoning, but its commercial footprint extends through trade and distribution functions in Suzhou, and it has been described in business listings as serving worldwide markets. Company materials also mention overseas business functions and domestic distribution centers, indicating a multi-location operating model.

Industry reporting has described Kanghui as one of the important players in China’s BOPET sector, with one source stating that it ranks second in domestic capacity in that segment. Because this figure comes from an industry publication rather than an audited company filing, it should be treated as an external market estimate rather than a verified official ranking.

The company has also been identified in Chinese exhibitor and government listings as a specialized SME and a provincial smart manufacturing example, both of which reinforce its profile as a technology-led producer within China’s new materials ecosystem.

Sustainability and Environmental Initiatives

Kanghui’s sustainability profile is closely tied to its involvement in biodegradable plastics and functional materials designed to support lighter-weight or more application-specific material use. Its product mix includes PBS/PBAT materials and related film products, which are often positioned as alternatives in packaging and compostable applications.

At the same time, the company remains part of a petrochemical industrial structure, meaning its environmental profile is shaped by the broader realities of energy-intensive polymer production, feedstock sourcing, and emissions management. In this context, sustainability is best understood as a combination of material substitution, process efficiency, and compliance with industrial environmental standards rather than as a simple transition away from petrochemicals.

Government reporting has highlighted Kanghui as a smart factory example, suggesting investments in automation, digital control, and manufacturing efficiency. In plastics manufacturing, such systems can improve yield, reduce off-spec production, and support more consistent quality, all of which have direct environmental and economic benefits.

Financial Performance and Economic Impact

Publicly available local government reporting stated that Kanghui employed more than 2,800 people and recorded 2022 revenue of RMB 6.89864 billion. Another company-related disclosure associated with Hengli indicated substantial assets and net profit at the subsidiary level in a prior reporting context, though those figures should be interpreted within the scope of group disclosures rather than standalone audited reporting.

The company has been described as a major industrial project in Yingkou and as part of a larger Hengli-driven materials cluster, meaning its economic impact extends beyond its own product sales to include upstream procurement, logistics, industrial services, and regional employment. For a plastics manufacturer, this kind of cluster effect is often as important as direct output, because it supports supply-chain localization and downstream customer proximity.

Leadership and Corporate Governance

Company registry data identify Zhao Xintao as the legal representative, and corporate disclosures indicate that Kanghui has been controlled through Hengli Petrochemical and ultimately linked to the Hengli Group ownership structure. This ownership arrangement places the company within a vertically integrated industrial group rather than as an independent standalone processor.

The group’s strategic decision to consider a spin-off of Kanghui New Materials indicates that governance and capital-market strategy are important parts of the company’s evolution. In practice, this kind of restructuring often reflects efforts to separate high-growth new materials businesses from more mature petrochemical operations, potentially improving capital allocation and market valuation visibility.

Innovations and Future Outlook

Kanghui’s innovation profile is centered on high-performance BOPET, engineering plastics, and biodegradable materials, with particular emphasis on precision film technology and differentiated product design. Its development of ultra-thin film products and its participation in technical standards suggest that it aims to compete through process capability and product specification rather than volume alone.

Future growth will likely be shaped by several industry trends:

• Rising demand for specialty packaging films with higher barrier and functional performance.
• Expansion of new energy applications, including photovoltaic and battery-related material requirements.
• Continued development of biodegradable plastics, which remains sensitive to policy support, cost competitiveness, and end-market acceptance.
• Ongoing investment in smart manufacturing and process efficiency as Chinese plastics producers seek quality and cost advantages.

At the same time, the company’s outlook depends on feedstock economics, competition in China’s film industry, and the pace at which specialty and biodegradable materials can be scaled economically. Its group affiliation with Hengli provides industrial scale and integration advantages, but it also places the company within a capital-intensive sector where product differentiation and operational efficiency are critical.

Summary

Kanghui New Material Technology Co., Ltd. is a Hengli-backed Chinese materials producer focused on BOPET films, PBT engineering plastics, and biodegradable polyester-based materials. Its development reflects the broader evolution of China’s plastics industry toward integrated, technology-driven, and application-specific materials production, with particular strength in high-performance film and functional polymer categories.

References

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  CPS+ eMarketplace. (n.d.). KANGHUI NEW MATERIAL TECHNOLOGY CO.,LTD.KANGHUI NEW MATERIAL TECHNOLOGY CO.,LTD.. CPS+ eMarketplace. https://www.chinaplasonline.com/eMarketplace/ExhibitorInfo?CompId=1004570Link