Recently, Company A signed a strategic investment agreement with Sumida Capital, a subsidiary of Sumida. Both parties are optimistic about the market growth brought about by the implementation of the "plastic ban and restriction" regulations in Henan Province, which will accelerate the landing of biodegradable raw material projects and the coverage of downstream products in prefecture level cities.
According to the agreement, Company A and Sumida Capital will construct a 300000 ton per year PBAT project in the Luoxi Chemical Industrial Park in Henan Province. The project has a total investment of 1.5 billion yuan and covers an area of 106 acres. It is expected to start construction in March 2024.
The technical party is Shanghai A Company, a subsidiary of Sumida. Shanghai A Company has successfully pioneered a one-step PBS/PBAT fully continuous degradation resin technology, achieving the localization of PBS/PBAT engineering. At present, patented technology and patented equipment have a leading global market share in the biodegradable plastic PBAT project market. At present, the project has complete procedures for design, safety assessment, environmental impact assessment, and energy assessment. It is expected to be put into production by the end of the year, and the annual output value will exceed 4 billion yuan.
Multi party linkage promotes the sustainable and healthy development of the biodegradable plastic industry
Since the official implementation of the "Regulations on Prohibiting and Restricting Non degradable Disposable Plastic Products in Henan Province" on January 1, 2024, the substitute market for "prohibited and restricted plastics" in Henan Province has ushered in a new round of steady growth.
The Degradation Materials Trading Center is a representative of new productive forces, gradually forming a new model in the context of Henan's plastic ban. Through integrated production, supply, sales, inspection and financing services, it integrates BDO raw materials, PBAT raw materials, PLA raw materials, as well as supporting functions such as degradation plastic modified masterbatch and product trading, testing, warehousing, logistics, financial services, e-commerce, etc., promoting the convenient flow, networked sharing, systematic integration, collaborative development, and efficient utilization of labor, capital, land, knowledge, technology, management, data and other elements in the new materials industry, which can effectively reduce transaction costs, significantly improve resource allocation efficiency and total factor productivity.
The trading center promotes the deep integration of innovation chain, industrial chain, capital chain, and talent chain, accelerating the transformation of scientific and technological innovation achievements into new quality productivity. Based in Henan and looking at China, the estimated annual transaction volume is 50 billion yuan. At present, utilizing the cost advantage of industrial chain integration, a transaction project has been reached with Inner Mongolia Dongyuan Technology's 100000 ton BDO and Hubei Yihua Group's 100000 ton PBAT to shorten the supply chain of degradable products and reduce the cost of raw materials for enterprises. Gradually, a degradable plastic distribution center will be formed in Luohe, Henan, where raw materials are centrally traded and numerous small and medium-sized enterprises in the production of degradable plastics are concentrated. Through technological innovation and supply chain improvement, the cost of degradable plastics will be effectively reduced, which is basically consistent with the price of traditional plastics, laying a solid foundation and industrial guarantee for the comprehensive replacement of disposable plastic products.