Hengli Group

Hengli Group is a major Chinese privately held industrial enterprise headquartered in Suzhou, Jiangsu. Its business developed from textile manufacturing into an integrated chain covering crude-oil refining, petrochemical feedstocks, polyester materials, chemical fibers, yarns, films, and textiles. The group’s origins date to 1994, when Chen Jianhua and Fan Hongwei began operating a small weaving factory in Shengze, Wujiang, a textile center within Suzhou. The enterprise initially concentrated on weaving and chemical-fiber products, then expanded into upstream polyester production and the manufacture of key intermediates such as purified terephthalic acid (PTA). Hengli was formally established as a group in 2003, with Fan Hongwei serving as general manager. The company’s central strategic idea has been vertical integration. Polyester production depends on upstream chemical inputs, and Hengli progressively added capacity to control more stages of the chain rather than relying solely on external suppliers. Its industrial model links crude oil and aromatics to paraxylene, PTA, ethylene glycol, polyester chips, polyester filaments, industrial yarns, films, and textile applications. This structure gives the group exposure to both commodity petrochemicals and downstream materials used in apparel, home furnishings, packaging, and industrial products. A decisive expansion began in Dalian. In 2010, Hengli worked with the Dalian municipal government to begin developing a petrochemical industrial park on Changxing Island. The resulting complex became the group’s principal large-scale refining and chemical platform. The project included a refinery designed for approximately 20 million tonnes of crude oil per year, equivalent to roughly 400,000 barrels per day, together with ethylene, paraxylene, PTA, and other petrochemical facilities. Reuters reported in 2018 that the project represented an investment of approximately US$11 billion and was preparing for testing. The broader Changxing Island base has been described by Chinese sources as integrating refining, aromatics, PTA, and polyester production. Hengli’s main listed affiliate is Hengli Petrochemical Co., Ltd., but the group itself remains private. Hengli Petrochemical entered the Shanghai market through a restructuring of Dalian Rubber & Plastics Machinery, an existing listed company. Regulatory approval for the major asset restructuring was granted in January 2016, and the listed company changed its name to Hengli Petrochemical on 27 May 2016. A further restructuring in 2018 incorporated Hengli’s Dalian refining assets. This transaction allowed the privately controlled group to access public-market financing while retaining control by Chen Jianhua and Fan Hongwei. Chen Jianhua serves as chairman of Hengli Group, while Fan Hongwei chairs Hengli Petrochemical. The two founders are married and remain the group’s principal controllers. In disclosures in the listed subsidiary’s 2025 annual report, Hengli Group was identified as the controlling shareholder and Chen as the group’s legal representative. Chen and Fan were reported to control 75.73% of Hengli Petrochemical directly and through Hengli Group and concert parties. Hengli has been described as one of the world’s largest polyester-yarn producers and one of China’s largest private industrial groups. In 2025, Fortune ranked it 81st in the Fortune Global 500 and 22nd in the Fortune China 500, reporting 2024 revenue of US$121.126 billion. The group’s scale has also brought environmental and geopolitical scrutiny. A planned coal-to-polyester project in Yulin, Shaanxi, drew criticism because coal-based chemical production can be more carbon- and wastewater-intensive than oil-based alternatives. In 2026, the U.S. Treasury designated Hengli Petrochemical’s Dalian refinery over alleged purchases of Iranian oil, creating sanctions, trade, ownership, and supply-chain consequences. Hengli denied the allegations. A petrochemical trading arm, Hengli Petrochemical Trading (恒力石化贸易), operates under the group, based in Dalian and focused on petrochemical product trading.

Hengli Group emerged from Suzhou’s textile economy. In 1994, Chen Jianhua and Fan Hongwei began operating Wujiang Chemical Fiber Weaving Factory in Shengze, a small enterprise that reportedly had 27 employees. Chen later said that he acquired the bankrupt town-run factory for RMB 3.69 million and expanded it with additional equipment and branch facilities. The company’s first capabilities were in weaving and chemical-fiber processing, establishing the downstream base from which the group would later build a much broader industrial system. During the following years, Hengli moved upstream from weaving into polyester and chemical-fiber production. This transition allowed it to participate in the manufacture of polyester materials rather than merely converting purchased yarn or fabric. The group subsequently invested in PTA and related petrochemical inputs. PTA is a central raw material for polyester, and controlling its supply helped Hengli connect textile manufacturing with large-scale chemical production. Hengli was formally established as a group in 2003, with Fan Hongwei serving as general manager. The group’s defining strategic move was the construction of a major petrochemical base at Dalian Changxing Island. Hengli partnered with the Dalian municipal government in 2010 to begin developing a petrochemical industrial park in the Changxing Island Economic and Technological Development Zone. The project expanded Hengli from a polyester-centered manufacturer into a refinery and petrochemical operator. The complex was designed around a crude-oil processing capacity of approximately 20 million tonnes annually, alongside aromatics, ethylene, paraxylene, PTA, and other chemical units. Reuters reported in 2018 that the refining and petrochemical project involved investment of roughly US$11 billion and was entering testing preparations. The Dalian complex strengthened Hengli’s integrated chain. Crude oil could be converted into refinery products and chemical feedstocks; aromatics could be used to produce paraxylene; paraxylene could be processed into PTA; and PTA and ethylene glycol could be converted into polyester products, yarns, films, and textile materials. This structure reduced the distance between the group’s raw-material base and its downstream businesses, while also increasing its exposure to volatile energy and chemical markets. Hengli’s access to public capital came through Hengli Petrochemical. The company used a restructuring of Dalian Rubber & Plastics Machinery, an existing Shanghai-listed company whose predecessor had been listed in 2001. Chinese regulators approved the major asset restructuring in January 2016, including a share transfer to Hengli Group and the acquisition of Jiangsu Hengli Chemical Fiber assets. The listed company changed its name to Hengli Petrochemical Co., Ltd. on 27 May 2016. A further restructuring in 2018 included the acquisition of Hengli Petrochemical (Dalian) Refining Co., Ltd. Although Hengli Petrochemical is listed, Hengli Group itself remains privately held and is controlled by its founders. Chen Jianhua chairs the parent group, while Fan Hongwei chairs Hengli Petrochemical. The couple are the group’s founders and principal controllers. Disclosures in Hengli Petrochemical’s 2025 annual report identified Hengli Group as the controlling shareholder and Chen as the group’s legal representative. The report attributed effective control to Chen and Fan, who together with Hengli Group and concert parties held 75.73% of the listed company. Hengli’s scale has made it one of China’s most prominent private industrial enterprises. Reuters described it as one of the world’s largest polyester-yarn producers, while Fortune ranked the group 81st in its 2025 Global 500. At the same time, the group’s expansion has generated environmental and geopolitical challenges. A planned coal-to-polyester facility in Yulin drew criticism because coal-based chemical production generally produces more carbon dioxide and wastewater per unit than oil-based alternatives. In April 2026, the U.S. Treasury sanctioned Hengli Petrochemical’s Dalian refinery under Iran-related authorities, alleging purchases of Iranian petroleum. Hengli denied the allegations, said its suppliers had warranted that crude was outside the scope of U.S. sanctions, and stated that it would seek relief. Subsequent changes to the Singapore trading arm, a reported wind-down, Chinese countermeasures, and effects on commercial agreements illustrated the international risks facing a large, China-centered petrochemical group. Hengli nevertheless continues to be organized around refining, petrochemicals, polyester new materials, and textile manufacturing. Within the group, a petrochemical trading arm, Hengli Petrochemical Trading (恒力石化贸易), operates from Dalian, focused on trading petrochemical products.

• 2026

  U.S. sanctions target Dalian refinery

  [4]U.S. Treasury sanctions releasehome.treasury.gov

  The U.S. Treasury designated Hengli Petrochemical (Dalian) Refinery under Iran-related sanctions, alleging purchases of Iranian petroleum.

• 2025

  Fortune Global 500 ranking

  [5]Fortune Global 500fortune.com

  Hengli Group ranked 81st in the Fortune Global 500 and 22nd in Fortune China’s China 500 list.

• 2018

  Dalian refinery and petrochemical complex approaches testing

  [9]Dalian refinery and petrochemical complex approaches testingreuters.com

  The large Changxing Island refining and petrochemical project moved toward testing, with planned crude-processing capacity of about 20 million tonnes per year.

• 2016

  Public-market restructuring completed

  [3]Hengli Petrochemical investor informationhengliinc.com

  The restructuring of Dalian Rubber & Plastics Machinery created the listed Hengli Petrochemical platform; the company adopted its current name on 27 May.

• 2010

  Dalian Changxing Island project begins

  [8]Dalian Changxing Island project beginschinadaily.com.cn

  Hengli and the Dalian municipal government began developing a petrochemical industrial park on Changxing Island.

• 2003

  Hengli Group formally established

  [1]Hengli Groupen.wikipedia.org

  The enterprise was formally organized as Hengli Group, with Fan Hongwei serving as general manager.

• 1994

  Founding textile operation begins

  [1]Hengli Groupen.wikipedia.org

  Chen Jianhua and Fan Hongwei began operating Wujiang Chemical Fiber Weaving Factory in Shengze, Suzhou, establishing the textile origins of Hengli Group.

A vertically integrated, large-scale Chinese private petrochemical and advanced-materials group spanning refining, chemical intermediates, polyester production, and textile manufacturing, with a petrochemical trading arm.

• Petrochemical intermediate

  Purified terephthalic acid

  PTA is a core raw material for polyester production. Hengli produces PTA within its integrated petrochemical chain, linking aromatics and paraxylene production with downstream polyester fibers, yarns, films, and other materials. The product is supplied primarily into industrial and textile-related manufacturing channels.

• Chemical fiber

  Polyester filament yarn

  Polyester filament yarn is one of Hengli’s principal downstream products and connects the group’s petrochemical capabilities with apparel, home-textile, and industrial-fabric applications. Hengli has been described as one of the world’s largest polyester-yarn producers, with production supported by its PTA and polyester-material operations.

• Chemical fiber

  Polyester staple fiber

  Polyester staple fiber is produced for use in textiles, nonwoven materials, filling, and blended fabrics. Within Hengli’s integrated model, staple fiber is part of the downstream conversion of PTA and other petrochemical feedstocks into usable textile materials.

• Refining

  Refined petroleum products

  Hengli’s Dalian Changxing Island complex processes crude oil into refined petroleum products and chemical feedstocks. The refinery forms the upstream foundation of the group’s broader integrated chain and supplies inputs for aromatics, olefins, and downstream petrochemical production.

• Basic chemicals

  Petrochemical intermediates

  Hengli’s petrochemical portfolio includes paraxylene, ethylene glycol, ethylene-related products, aromatics, and other intermediates. These materials support the group’s polyester operations and are also sold into broader industrial chemical markets.

• Trading

  Petrochemical product trading

  Hengli Petrochemical Trading, based in Dalian, engages in the trading of petrochemical products under Hengli Group.

• 2026

  U.S. sanctions over alleged Iranian petroleum purchases

  The U.S. Treasury sanctioned Hengli Petrochemical (Dalian) Refinery under Executive Order 13902, alleging that the refinery was a major customer for Iranian crude oil and petroleum products. Hengli denied ever trading with Iran, said its suppliers had provided sanctions-related assurances, and stated that it would pursue removal of the restrictions. The designation was followed by reported ownership changes involving Hengli’s Singapore trading arm, a planned wind-down of that entity, commercial disruptions, and Chinese government countermeasures.

  Source

• 2020

  Maritime subsidiary fined for black smoke emissions

  In 2020, Hengli Maritime Dalian, an indirectly controlled subsidiary of Hengli Petrochemical, was fined 4,500 yuan for visible black smoke emissions from the vessel Hengli 11. The entry clarifies the corporate relationship and does not present this as a consumer product quality issue.

  Source

Read more

• 2026

  Reconfigure trading-arm ownership after U.S. designationStrategy

  Background

  The U.S. sanctions designation created restrictions for the Dalian refinery and entities connected to it.

  Action taken

  Hengli reduced the refinery’s ownership of Hengli Petrochemical International from 100% to 5%, transferring the remaining stake to Dalian Changxing International Trade, a company owned by a local Chinese government entity.

  Aftermath

  The Singapore trading arm was subsequently reported to be preparing to cease operations and wind down, while some employees moved to other Hengli entities.

  Source

• 2018

  Add Dalian refining assets through restructuringM&A

  Background

  Hengli sought to consolidate the Dalian refining platform with its listed petrochemical operations.

  Action taken

  A further asset restructuring included the acquisition of Hengli Petrochemical (Dalian) Refining Co., Ltd.

  Aftermath

  The listed company became more closely tied to Hengli’s large integrated refining and chemical complex.

  Source

• 2016

  Use a listed-company restructuring to create Hengli PetrochemicalM&A

  Background

  Hengli sought a public-market platform for its chemical-fiber and petrochemical assets.

  Action taken

  Assets associated with Hengli were injected into the Shanghai-listed Dalian Rubber & Plastics Machinery through a major restructuring, and the company later changed its name to Hengli Petrochemical.

  Aftermath

  The restructuring gave Hengli a listed subsidiary while the parent group remained privately controlled by Chen Jianhua and Fan Hongwei.

  Value of assets injected in the backdoor listing. RMB 10.8 billion (End of 2015)

  Source

• 2010

  Enter large-scale refining and petrochemicalsStrategy

  Background

  Hengli had developed from a textile and chemical-fiber manufacturer but depended on upstream petrochemical inputs for its polyester operations.

  Action taken

  The group partnered with the Dalian municipal government to develop a petrochemical industrial park on Changxing Island, later including a major refinery and associated chemical units.

  Aftermath

  The project transformed Hengli into an integrated refining, petrochemical, polyester, and textile group.

  Source

1. 1Hengli Groupen.wikipedia.org
2. 2Hengli Group official websitehengli.com
3. 3Hengli Petrochemical investor informationhengliinc.com
4. 4U.S. Treasury sanctions releasehome.treasury.gov
5. 5Fortune Global 500fortune.com
6. 6Hengli Grouphengli.com
7. 7https://www.hengli.comhengli.com
8. 8Dalian Changxing Island project beginschinadaily.com.cn
9. 9Dalian refinery and petrochemical complex approaches testingreuters.com
10. 10Value of assets injected in the backdoor listingcs.com.cn
11. 11Reconfigure trading-arm ownership after U.S. designationreuters.com
12. 12Maritime subsidiary fined for black smoke emissionsnbd.com.cn