In 2022, multiple polymer companies invested in China's plastic recycling industry. In 2023, more investments will enter the circular industry, including professional financial institutions, Fortune 500 companies, listed companies, polymer companies, etc. This article will take you through some of the dynamics of the capital market in 2023, allowing us to look forward to greater breakthroughs and development in China's plastic recycling industry with the help of capital.
Guangfa Qianhe
In June 2023, Jiangsu Saiweier New Materials Technology Co., Ltd., a well-known food grade recycled plastic manufacturer in China, completed Series A financing. This round of financing is led by Guangfa Qianhe. The financing funds will be used for the construction of a new food grade PCR PET particle production line, as well as continuously increasing research and development investment and market development. Huang Bin, the founder and chairman of Saville, stated that the successful completion of this round of strategic financing is a sign of investors' optimism about the broad development prospects of the same level recycling market for waste plastic packaging materials, as well as a recognition of Saville's process route and product strength.
Wuyuefeng Science and Technology Innovation, Xuhuacheng
In December 2023, Shanghai Ruimo Environmental Protection New Materials Co., Ltd. announced the completion of a Series A financing of tens of millions of yuan. The investors in this round are Wu Yuefeng Science and Technology Innovation and Xuhuacheng Investment, and the service provider is Potential Capital. The financing funds for this project will mainly be used for the expansion and upgrading of production lines, talent development, and the construction of digital platform systems.
Sequoia China
In November 2023, Guangdong Gongye Technology Co., Ltd. completed a Series B financing of hundreds of millions of yuan, which was exclusively invested by Sequoia China. Gongye Technology will take the B-round financing as an opportunity to comprehensively layout overseas channel construction, expand the company's influence in the international market, and further promote the company's globalization strategy. Previously, Gongye Technology had received A-round investments from Dachen Financial Intelligence, PreA round investments from Jingwei Venture Capital, and Angel round investments from Huachuang Capital.
Due to the particularity of the industry, especially in terms of finance and taxation, there are few professional financial institutions investing in enterprises in the plastic recycling industry. Nowadays, enterprises in the industry are gradually moving towards standardization and normalization, and more and more financial institutions will begin to pay attention to industry enterprises. There will be more and more opportunities for formal enterprises.
Love and Taike
On March 23, 2023, the world bottle embryo giant and Japanese listed company, iTech Group, officially signed an acquisition contract with Liupanshui Pucheng Environmental Protection Technology Co., Ltd. It is understood that Liupanshui Pucheng Environmental Protection Technology Co., Ltd. will build 9 production lines, and 2 production lines have been completed and put into operation in December 2022, with a production capacity of 18000 tons per year. The third production line will be completed in June this year, and four more production lines will be built in August. Seven bottle sheet production lines will be completed by the end of the year, and two sheet production lines are planned to be completed by the end of 2024. All projects will be completed and put into operation, with an annual output value of about 690 million yuan and an annual processing capacity of 110000 tons. The expected export output value will reach 5 million US dollars.
European Green Protection
The world's top 500 European Green Protection Group has invested in the construction of an annual production of 150000 tons of rPET project in Yingtan High tech Zone, Jiangxi. The project is mainly engaged in the research and development, production, and sales of recycled bottle grade polyester chips, with an annual output value of 1 billion yuan, becoming a benchmark enterprise in the field of domestic recycling. This project will be divided into two phases of construction, and Eurogreen Baolong One New Materials (Jiangxi) Co., Ltd. has also been established on March 6, 2023. This is the first plastic recycling project of Oulubao Group in Chinese Mainland, which is currently in the stage of equipment commissioning.
Suez
On September 20, 2023, Suez, a Fortune 500 company, signed a contract with Taichu Environmental Resources Management (Zhejiang) Co., Ltd. to establish a cooperative company, which will build six post consumer plastic recycling and sorting centers in East China. This is Suez's first plastic recycling project in China.
The cooperation between Suez and Taichu this time includes investment, construction, and operation of post consumer plastic recycling and sorting centers, application of advanced artificial intelligence and other technologies, as well as intelligent information systems. The construction of six sorting centers in the first phase of the project is planned to be completed by early 2024. After the project is completed, approximately 30000 tons of waste plastics can be recycled and sorted annually, achieving intelligent, digital, visual, and low-carbon recycling systems with traceable sources and destinations.
In 2019, Veolia, a Fortune 500 company, acquired Huafei Recycling Resources to build it into one of the largest recycled plastic enterprises in China. This year, Fortune Global 500 companies continue to actively expand their presence in the Chinese market and have completed or plan to implement multiple acquisitions or equity investments. These actions demonstrate confidence in China's plastic recycling industry and recognition of its future potential. In the future, Observer Jun predicts that this trend will become increasingly apparent.
Shengqi Technology
On January 12, 2023, Shengqi Technology (stock code: 839605) announced its outward investment, stating that in order to further enhance its comprehensive strength and promote industrial upgrading, Jiangxi Shengqi Technology Co., Ltd. plans to invest in the construction of a PET recycling project, with a total investment of approximately 64 million yuan.
On November 30th, Shengqi Technology released a notice on changing the PET recycling project to an annual production of 80000 tons of plastic recycling project. It plans to change the aforementioned project to an annual production of 80000 tons of plastic recycling project, with a total planned investment of about 202 million yuan, including construction investment of 170 million yuan and initial working capital of 32 million yuan. The construction site of the project is SP-3 plot in Shipai Industrial Park, Xunwu County, Ganzhou City, Jiangxi Province. After the project is completed and put into operation, it is expected to achieve an annual production of 50000 tons of RPET materials, 15000 tons of RPP materials, and 15000 tons of RPE materials.
At present, Shengqi Technology has completed preliminary research work and the purchase of land use rights, factory buildings, office buildings, and related ancillary facilities for the SP-3 plot of Shipai Industrial Park in Xunwu County, Ganzhou City, Jiangxi Province.
High energy environment
On October 29th, High Energy Environment (stock code: 603588) announced that it plans to invest a total of 140 million yuan to acquire 51% equity of Anhui Zhongxin Hongwei Technology Co., Ltd. According to disclosure, Zhongxin Hongwei achieved a revenue of 124 million yuan and a net profit of 7.3951 million yuan from January to May 2023. Zhongxin Hongwei stated in its performance commitment that its performance targets for the next few years are 208.3 × N (N represents the remaining months of 2023), 25 million yuan, 35 million yuan, and 45 million yuan, respectively.
After the completion of this investment, High Energy Environment will integrate Zhongxin Hongwei's business advantages in the field of recycled resources such as polyamide 66 raw materials, and horizontally expand the company's resource comprehensive recycling and utilization business in the sub categories of recycled plastics such as PA and PET.
The plastic recycling industry is showing a rapid development trend, and listed companies have also seen this opportunity and begun to actively layout to obtain more business opportunities and higher profits. Listed companies have advantages in resource allocation, technological research and development, and sales models. Their joining will inject stronger impetus into the industry's development.
SK Chemistry
On March 6th, SK Chemical, a subsidiary of SK Group, held a board meeting and announced the signing of a contract to transfer assets related to Tree Industry's environmental protection chemical regeneration raw materials and chemical regeneration PET business. The acquisition value is approximately 130 billion Korean won. Through this investment, SK Chemical has completed the value chain of recycled plastics that extends to r-BHET, CR-PET, and CR Copolyester, ensuring the sustainability of its core business of copolyesters and laying the foundation for new products.
As global plastic pollution becomes increasingly severe, polymer companies, the source of plastic production, are facing enormous pressure. To address this challenge, these companies are actively seeking new solutions. In recent years, polymer companies have begun to invest heavily in the plastic recycling industry. Taking Liederbusser as an example, we have acquired industry enterprises multiple times, built chemical recycling factories, invested in new recycling technologies, and continuously expanded our plastic recycling industry. There is still one year left in the global plastic convention negotiations, and it is believed that more and more polymer companies will enter the plastic recycling industry as their main development business.
Once, capital drove the industrial, technological, and green revolutions. Nowadays, capital has become an important force driving economic development and industry advancement.
The popularity of plastic recycling is rising, capital is pouring in, empowering the industry to flourish and helping high-quality enterprises accelerate upgrading.
2024, New Era, New Power!