Texxon Holding Limited announced that its 600,000‑ton annual polystyrene plant in Henan Province has completed the mandatory “Three Checks, Four Fixes” safety program and has filed the Major Hazard Installation Safety Assessment Report on December 10 2025. The subsidiary, Henan Net Plastic Supply Chain Management Co., Ltd., also secured the hazardous chemicals operating license, clearing the final regulatory hurdle before the facility can begin trial production in early 2026.
The completion of these approvals marks a pivotal step in Texxon’s strategy to shift from a thin‑margin commodity‑trading model to a higher‑margin manufacturing and digital supply‑chain platform. In FY2025 the company reported revenue of $797.15 million, an 18.5% increase from the prior year, but its gross profit margin contracted from 0.7% to 0.6% as it invested heavily in the new plant and other operational initiatives. The new polystyrene facility is expected to add 10‑20% to the company’s overall gross margin once it reaches full production capacity.
Management emphasized that the plant will reduce Texxon’s dependence on a single customer that accounts for roughly 59.2% of revenue, a concentration risk that has historically limited earnings quality. By integrating upstream manufacturing with its existing logistics and digital distribution platform, Texxon aims to capture higher‑margin sales and improve resilience to commodity price volatility.
Market reaction to the announcement was positive: the company’s shares rose 5.01% to $5.66, adding approximately $6 million to its market value. The lift reflects investor confidence that the regulatory approvals de‑risk the project and accelerate the company’s transition to a more profitable business model.
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