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The first phase of 3D Shares’ 300,000-ton BDO project aims to go into operation by mid-2023! Author/Source: Coal Chemical Industry Information Network Date: 2022-04-29 Clicks: 1 On April 26, Shandong Sanwei Holding Group Co., Ltd. released its annual report for 2021, showing revenue of 3.364 billion yuan, a year-on-year increase of 86.89% ； The net profit attributable to the shareholders of the listed company was 124 million yuan, a decrease of 41.15% on a year-on-year basis. Among them, the revenue of the rubber products industry was 1.39 billion, representing a year-on-year increase of 13.63% ； The revenue of the rail transit industry was 588 million, representing a 3.56% increase compared to the previous year ； The operating revenue of the chemical fiber industry reached 1.234 billion, a year-on-year increase of 31,080%. An investment of 13 billion yuan has been allocated to build an integrated BDO production facility with a capacity of 900,000 tons per year. In June 2021, Sanwei Co., Ltd. established Inner Mongolia Sanwei New Materials Co., Ltd. in Wuhai City, Inner Mongolia; the total investment is expected to be 13 billion yuan, aimed at developing an integrated industrial chain for BDO and biodegradable plastics with a production capacity of 900,000 tons per year. The total investment for Phase 1 of the project is 4.366 billion yuan, covering the construction of a facility capable of producing 300,000 tons per year of 1,4-butanediol (BDO), 100,000 tons per year of biodegradable plastic PBAT, 60,000 tons per year of high-end polyether material PTMEG, and 600,000 tons per year of formaldehyde; in addition, there will be a related facility for producing 360,000 tons per year of acetylene raw material (calcium carbide). As of the end of the reporting period, 107 million yuan had been invested. Phase 1 of the project has now completed all the necessary approval procedures for commencement, and the energy consumption targets have been set. The company has engaged Hualu Engineering Technology Co., Ltd., a subsidiary of Sinochem Engineering Corporation, to provide EPCM services; construction began on March 13, 2022, with the goal of meeting the conditions for operation by mid-2023. The energy assessment for Phase 2 has been approved, and the company is currently making active efforts to implement the energy consumption requirements and obtain the environmental impact assessment approval for this phase. Regarding the market prospects of the BDO integration project, Sanwei Co., Ltd. believes that biodegradable plastics, as an emerging industry with significant economic and low-carbon environmental benefits, have become a focus of global research and development as well as promotional efforts in annual reports for 2021, offering broad market prospects. In line with China’s 14th Five-Year Plan and the Long-Range Objectives through 2035, the two sectors related to BDO’s downstream applications – biodegradable materials and new energy vehicles – are both classified as **strategic emerging industries**, leading to rapid expansion of production capacity in these areas. Driven by the trend of rising demand for higher-quality clothing, the production capacity for spandex, which is already under planning or in construction, is set to nearly double. As a result, market analysts expect that a tight supply balance for BDO will continue, with the BDO market remaining robust at high levels. 3D Shares stated that in 2022 it will continue to strengthen the BDO team, secure funding for project construction through various channels, work closely with all parties involved, and make every effort to ensure that the first phase of the project is put into operation on schedule. It is also actively pursuing the various approvals required for the second-phase construction as well as the acquisition of the necessary production resources.