The first phase of a large-tow carbon fiber project being built by Sinopec Shanghai Petrochemical Co., Ltd. in Uxin Banner reached mechanical completion on February 1, one month ahead of schedule. The project has now entered production preparation and is on track to begin operations in the second quarter of this year.

Panoramic view of the production lines built. (Photo/ Uxin Banner Integrated Media Center)

With a total investment of about 2.243 billion yuan (US$322 million), the project is being constructed by Inner Mongolia Xinjinshan Carbon Fiber Co., Ltd., a subsidiary of Sinopec Shanghai Petrochemical. Full construction began in July 2025. The first phase includes two production lines with an annual capacity of 6,000 tons. When the entire project is completed by the end of 2027 with all 10 planned lines, it will have a total annual capacity of 30,000 tons, making Shanghai Petrochemical the leading domestic producer of large-tow carbon fiber.

The project uses proprietary technology from Shanghai Petrochemical and leverages Uxin Banner’s green electricity resources to produce 48K and 60K large-tow carbon fiber. Its design and equipment are internationally advanced, with strengths in safety, environmental protection, efficiency and reliability. A supporting project to produce 60,000 tons of precursor fiber annually is scheduled to start construction in the first half of this year at Shanghai Petrochemical’s existing plant, forming a complete industrial chain from precursor to carbon fiber.

Large-tow carbon fiber, known as “black gold,” is a strategic new material critical for replacing imports and is widely used in wind power, rail transport, civil aviation and other fields.

The project overcame multiple challenges during construction and reflects both Sinopec’s strategic focus on new materials and Uxin Banner’s supportive business environment. It is expected to contribute significantly to industrial development and local economic growth.