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Donghua Technology partners with Anhui Shuguang and Xinjiang Lvyuan to develop an integrated supply chain for biodegradable plastics. Author/Source: Donghua Technology ECEC Date: 2021-07-15 Clicks: 26 As the new plastic restriction policies are implemented more thoroughly, biodegradable materials, as one of the strategic emerging industries, are increasingly becoming the driving force behind high-quality development in this sector. On July 13, under the joint witnessship of the Party Committee of China National Chemical Engineering Group Co., Ltd. (hereinafter referred to as “China National Chemical”), Vice President Wu Xiangong, the Party Committee of Bayingolin Mongol Autonomous Prefecture in Xinjiang, the Party Secretary and Political Commissar of the Second Division of the Xinjiang Production and Construction Corps (hereinafter referred to as “the Second Division”), and Wu Bin, Chairman of the People’s Congress of Tiemenguan City, Donghua Engineering Technology Co., Ltd., a subsidiary of China National Chemical (hereinafter referred to as “Donghua Technology”), and Xinjiang Shuguang Luhua Biotechnology Co., Ltd. (hereinafter referred to as “Shuguang Luhua”) signed an EPC general contract for a project capable of producing 100,000 tons of BDO and 120,000 tons of PBAT per year. At the same time, Donghua Technology signed a strategic cooperation agreement with the Tiemenguan City Economic and Technological Development Zone of the Second Division. Wu Bin extended a warm welcome and sincere gratitude to all parties for investing and doing business in Tiemenguan City of the Second Division. He also stated that Tiemenguan City of the Second Division would strive to improve the business environment, provide thorough support services, enhance communication and coordination, and do its utmost to facilitate the progress of these projects. She pointed out that all parties should make full use of their advantages in terms of funding, technology, talent, management, and advanced working concepts, continuously expand the scope of industrial cooperation, and promote the economic transformation and upgrading of Tiemenguan City in the Second Division. Wu Xiangong expressed his gratitude to Tiemenguan City of the Second Division for its long-term support for China Chemical. He also noted that Tiemenguan City boasts a favorable location, abundant resources, a beautiful environment, and strong development momentum; it is an ideal place for starting businesses, with a bright future ahead. He hopes that Donghua Technology will adhere to China Chemical’s corporate mission of \"delivering value and building the future,\" provide excellent services for EPC projects, establish a long-term cooperative relationship with Tiemenguan City in the Second Division, and achieve mutual success. Project Overview: Shuguang Lüehua was established through joint investment by Anhui Shuguang Chemical Group Co., Ltd. (hereinafter referred to as “Anhui Shuguang”), Xinjiang Lüyuan State-owned Capital Investment and Operation Co., Ltd. (hereinafter referred to as “Xinjiang Lüyuan”), and Donghua Technology. The project is located in the Economic and Technological Development Zone of Tiemenguan City, with a total investment of approximately 3.57 billion yuan and a construction period of around 26 months. The project covers the entire production process of producing acetylene from natural gas, 1,4-butanediol (BDO) through the synthesis of acetylene and formaldehyde, and biodegradable plastic PBAT from 1,4-butanediol (BDO), terephthalic acid (PTA), and adipic acid (AA). Based on this project, Donghua Technology will achieve integration across the entire industry chain and value chain in the field of biodegradable plastics, covering key aspects such as research and development, design, manufacturing, and industrial investment. Leveraging the local abundance of natural gas resources and favorable policies for industrial development, this project adopts advanced, mature, safe, and environmentally friendly green manufacturing technologies. By combining Donghua Technology’s extensive resources in the chemical industry along with its experience in project construction, and by taking advantage of Anhui Shuguang’s professional capabilities in production and operation management as well as its strengths in expanding the industrial chain and innovation chain, this initiative aims to achieve strategic goals of complementary advantages, strong collaboration, and mutual benefit. In recent years, our country has continuously introduced top-level strategies for addressing plastic pollution. **Various ministries and commissions, including the National Development and Reform Commission, have issued guidelines to strengthen efforts to combat plastic pollution, and 30 provinces, autonomous regions, and municipalities across the country have announced plans for addressing this issue. As a biodegradable material, PBAT is included in the list of **strategic emerging industries, as well as in the catalog of industries encouraged in the western regions. Its degradability and biosafety have been globally certified. It can be widely used in disposable plastic products such as packaging materials, tableware, hygiene products, and mulch films. Through modification, it can also be utilized in fields like medical materials, optoelectrochemistry, and fine chemicals. There is a significant market gap at present, and the prospects for development are good; the implementation of this project will inject new momentum into the sustainable social and economic development of the local area.