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Inner Mongolia Huaheng: One BDO production unit and two PTMEG production units are ready for trial production. Author/Source: BDO Research Institute. Date: 2022-12-08. Clicks: 22. Recently, at the construction site of Huaheng Energy Technology Co., Ltd.’s integrated new material industry chain project, excavators and transport vehicles moved back and forth, while workers worked closely together to carry out tasks such as installing rebar, pouring concrete, and conducting safety inspections on equipment; the project, spanning several miles, has now taken shape in its entirety. Entering the fourth quarter, enterprises are seizing the \"window period\" for project construction, continuously improving the supply of necessary resources, and making every effort to accelerate construction and bring projects online sooner. “To achieve the goal of starting operations next year, we are accelerating the schedule and pushing forward with construction at full speed. Currently, two sets of PTMEG plants are ready for trial production, and one set of the BDO project is also ready for production. ”Yu Zhongbo, deputy general manager of Huaheng Energy Technology Co., Ltd., explained. Since its commencement, the project has been in sprint mode, with work continuing even during the winter break, thereby setting a new record for the construction speed of projects in Wuhai. To date, 92% of the construction progress has been completed for the project’s power station, formaldehyde production unit, and natural gas-based hydrogen production unit; 95% of the construction progress has been completed for the BDO production unit and the PTMEG production unit. Operations are expected to begin in June 2023. The Huaheng New Materials project is a key industrial project in Wuhai City. Construction began in July 2021, with a total investment of 10.5 billion yuan and an area of around 2,700 mu. Its main products are advanced polymer materials such as BDO (1,4-butanediol), PTMEG (poly**furan), and PBAT (biodegradable plastics). The widespread use of these materials is of great significance for developing the degradable plastics industry, addressing the global problem of \"white pollution\" at its source, and safeguarding ecological environment safety. In recent years, Wuhai City, which is in a critical period of transformation, has regarded the development of a full-industry-chain base for new materials focused on biodegradable plastics as an important approach to reshaping its industrial structure and pursuing high-quality development, and has made every effort to advance this initiative. With the steady progress of five biodegradable plastic-related industrial projects, including those undertaken by Huaheng New Materials, the development of a complete new material industry chain base in Wuhai is seeing vigorous competition among various players. By 2025, Wuhai is expected to have a production capacity for biodegradable plastics of 3 million tons, accounting for over 40% of the country’s total capacity, with the entire industry generating an output value of 100 billion yuan. A comprehensive biodegradable plastics industry base with the largest production capacity in the country, as well as national influence, competitiveness, and market influence, is on the verge of being established. Wuhai City has unique advantages for developing the degradable plastics industry. The main raw material for BDO is calcium carbide, and the production of calcium carbide relies on coke and limestone. Wuhai City has extremely abundant limestone reserves. It also possesses a calcium carbide production capacity of 5.3 million tons, as well as a coking production capacity of 17.63 million tons. In addition, it has key raw materials such as coke oven gas and acetylene that can be recycled and utilized efficiently. These resources enable the development of industrial chains related to calcium carbide, acetylene, formaldehyde, BDO, PTMEG, biodegradable plastics, spandex, etc., facilitating the transformation from low-end products to high-end ones. To establish a major national base for the degradable plastics industry, in addition to hard factors such as resource endowments and industrial infrastructure, a favorable business environment is even more crucial. “We are not only impressed by Wuhai’s excellent resources and environment, but also by its **services and support systems. From the project initiation to the start of construction, Wuhai City has provided our company with ‘nanny-style’ support, resolving issues promptly, which has enabled our project to be developed at such a rapid pace. ”Yu Zhongbo said that since the signing of the Huaheng New Materials project, Wuhai City established a dedicated task force to provide one-on-one follow-up support. It took proactive steps to address the difficulties that arose during the project’s construction, offered guidance to help the enterprise, and ensured smooth progress in the project’s development. Once the Huaheng New Materials project is completed and put into operation, it will generate annual revenue of 9 billion yuan and annual profits and taxes of around 1 billion yuan, while creating employment for more than 2,000 people. It will not only significantly enhance the overall industrial competitiveness of Wuhai City and promote the optimization of the regional industrial structure, but it will also achieve a breakthrough in the production of PTMEG and PBAT products in the autonomous region.