On the vast expanse of the Ningdong Energy and Chemical Base in Ningxia, a high-tech factory is quietly taking shape.

By day, the site buzzes with the roar of machinery and bustling construction; in the future, once fully operational, its main workshops may even run “lights‑out”—with robotic arms moving with pinpoint precision—making it the textile industry’s first “lights‑out factory.”

This factory is more than just a production facility. It is a long-established state-owned chemical enterprise in China that, amid the shifting global landscape and the wave of industrial upgrading, has charted a path of high-quality development by leveraging technological innovation and a strategic westward expansion.

Breaking the Impasse: The Technological Long March for Critical Raw Materials

The story begins with a years-long “breakthrough” at the upstream end of the industry chain.

Nylon 66, an engineering plastic with outstanding performance, is a critical material in industries such as automotive and electronics. For many years, the production technology for its key raw material—adiponitrile—was controlled by a handful of international chemical giants, making it the “Achilles’ heel” of China’s nylon 66 industry.

“Without adiponitrile, the production of high-end nylon 66 would be out of the question, and China’s related industrial chain has long faced the risk of supply disruptions,” said Li Benbin, Chairman of Shenma Shares, capturing the predicament of the past. When raw materials are subject to external control, the entire industrial chain becomes extremely vulnerable.

Shenma Shares has embarked on a strategy of tackling tough challenges. On the one hand, it has successfully developed a process for producing adiponitrile via direct hydrocyanation of butadiene; on the other, bypassing the conventional adiponitrile route, it has independently pioneered a new method for synthesizing hexamethylenediamine from aminonitriles. According to Li Benbin, “This technology can fully replace imported products.”

In April 2026, the 200,000‑ton adiponitrile (Phase I) project was commissioned, with all performance indicators reaching internationally advanced levels. At the same time, construction commenced on the third phase of the 100,000‑ton aminohexanenitrile project, whose technological capabilities are already among the most advanced worldwide. This marks the completion of Shenma Shares’ efforts to achieve independent and controllable access across the entire nylon‑66 value chain, making it one of the few companies to master both adiponitrile and aminohexanenitrile—two core proprietary technologies—and providing China’s nylon‑66 industry with a dual‑layer supply security.

With mastery of core raw materials, one gains the confidence to define downstream products. Ningxia’s “dark‑factory” represents a pivotal leap, transforming this technological autonomy into market competitiveness for end‑use products. Here, production‑technology expertise and smart‑manufacturing capabilities are seamlessly integrated.

Move: Advance west into Ningxia

Why locate this smart manufacturing project in Ningxia, in northwest China? The hard economic and resource considerations are the primary factors.

Ningxia boasts abundant coal, electricity, and natural gas resources at relatively low prices. For the synthetic fiber industry, this represents a cost advantage that cannot be overlooked.

This also forms part of China Pingmei Shenma Group, the parent company of Shenma Shares, in its participation in China’s Western Development Strategy. In 2024, China Pingmei Shenma Group acquired the lead development rights to the Hejiayao Coal Mine in Ningxia, establishing a stable and reliable “grain store” of raw materials for the entire nylon industry chain.

The strategic value of location and connectivity is equally critical. Situated along the domestic segment of the New Eurasian Land Bridge, Ningxia serves as a key logistics hub linking China to Central and West Asia. As a result, Shenma Shares’ products—particularly its tire‑cord fabric destined for the global market—can more easily integrate into the joint development of the Belt and Road Initiative, significantly reducing logistics costs and enhancing international competitiveness.

Intelligent Transformation: A Profound Revolution in Production Relations

According to reports, Ningxia’s “dark factories” are aiming for full-process, end-to-end automation, going far beyond the simple replacement of workers with machines.

A representative from the “dark factory” project revealed that, upon completion, the facility is expected to boost production efficiency by 20%. Meanwhile, end-to-end digital control will significantly enhance product consistency and stability.

This is not merely an upgrade of tools; it represents a comprehensive reshaping of corporate organizational models, management mindsets, and value‑creation approaches.

The value of the “dark factory” will extend far beyond the factory’s perimeter.

In 2025, Shenma Co., Ltd. had cumulatively invested approximately RMB 485 million in R&D, and its RMB 50 million pilot‑scale nylon materials base was commissioned, facilitating the translation and application of research findings in real‑world settings.

For Shenma Shares, technological R&D serves as a powerful “profit engine” and a “risk stabilizer.” Cost reduction and efficiency gains directly bolster profitability; intelligent manufacturing enhances the company’s ability to respond swiftly to market fluctuations; meanwhile, the Ningxia base’s comprehensive industrial‑chain layout has significantly strengthened supply‑chain resilience and security.

Against the backdrop of overcapacity and intense homogeneous competition in the nylon industry, Shenma Shares is pursuing innovation to achieve differentiated, high-end competitiveness and break free from the industry’s “involution.”

This has also been hailed by the industry as a practical demonstration of “developing new‑type productive forces tailored to local conditions.” Shenma Shares has innovatively integrated its breakthrough core technologies—once subject to critical bottlenecks—with Ningxia’s abundant energy resources, a key factor of production. By building “dark‑factory” facilities that epitomize deep industrial transformation, it has ultimately catalyzed a quantum leap in both efficiency and quality.