[Plastic] The "most stringent" ban on plastics is implemented, and companies expand production of biodegradable plastics to seize the market of 100 billion yuan

Entering 2021, the "Notice on Solid Promotion of Plastic Pollution Control" jointly issued by 9 departments including the National Development and Reform Commission and the Ministry of Ecology and Environment has been officially implemented.

The "History of the strict" ban plastic , requirements from January 1, 2021, municipalities, provincial capitals of shopping malls, supermarkets, pharmacies, bookstores and other places not prohibit the use of biodegradable plastic bags, food and beverage industry nationwide ban on the use Non-degradable disposable plastic straws.

Release hundreds of billions of biodegradable plastics market

According to CCTV reports, many large-scale catering companies, including milk tea shops and coffee shops of various brands, no longer provide disposable plastic straws.

The implementation of this ban on plastics and the upcoming 2022 Winter Olympics also announced the use of biodegradable tableware, which will accelerate the release of the benefits of the degradable plastics industry.

It is reported that the mainstream degradable plastics currently on the market are mainly represented by PLA (polylactic acid) produced from biomass and PBAT (polyadipate/butylene terephthalate) produced from fossil energy.

The production of these two plastics is relatively mature, and the total production capacity is at the forefront.

Leading companies accelerate their layout and expansion

●Sinopec takes a stake in Hisun Biotech

Sinopec Group Capital Co.

According to reports, Hisun Biomaterials has realized the industrialization of polylactic acid.

●Hengli Petrochemical's biodegradable polyester project successfully started up at one time

Hengli Petrochemical's subsidiary Yingkou Kanghui Petrochemical Co.

Some analysts pointed out that after the project is put into production, its production capacity has jumped to the top three in China, which will greatly alleviate the domestic supply and demand gap of PBS-type biodegradable plastics, and it is expected to increase annual revenue by 600-700 million yuan.

●Changhong Hi-Tech 600,000-ton PBAT capacity project landed in Shengzhou

Thermoplastic elastomer company Changhong Hi-Tech announced that its wholly-owned subsidiary, Zhejiang Changhong Biomaterials Co.

According to the plan, the project will be carried out in two phases, each phase is 300,000 tons/year, and the total construction period is 5 years.

According to reports, the total area of ​​the project is about 213 mu, of which the first phase of the first batch of 100,000 tons of production capacity is expected to be completed and put into operation in June 2021.

● Ruifeng High Materials reached an intention of cooperation in the PBAT project with an annual output of 300,000 tons

In addition, Shandong Ruifeng Polymer Materials Co.

●Tongcheng New Materials plans to build a PBAT plant with a capacity of 60,000 tons

Tongcheng New Materials, which has been authorized by BASF, will build a PBAT plant in Shanghai with a capacity of 60,000 tons in the first phase.

Cost reduction and stable technology are the key

According to relevant statistics, the market price of polylactic acid rose to 33,000 to 34,000 yuan/ton in the week before the formal implementation of the plastic ban, while the PLA price in mid-December was still 32,000 yuan/ton, and the price increased by 2,000 yuan/ton.

However, currently in the synthesis route of polylactic acid, the key intermediate lactide purification technology barrier is extremely high, and domestic manufacturers rarely make breakthroughs.
PBAT requires solidification and transportation, and general manufacturers need to dissolve at high temperature after purchase.
If integrated production can be adopted, PBAT can be produced directly before solidification and enter the next process, saving a lot of energy consumption, transportation costs and intermediate manufacturers’ earnings Profit.

Pigs can go to the sky when the vent comes, but only if you master the technology and continue to innovate, can you really have the last laugh.

(Keywords: ban on plastics, degradable plastics)