China’s largest biodegradable synthesis facility – the Daon 120,000 tons/year fully biodegradable plastic PBAT project – has completed the first phase of construction
Thread Content
Recently, the Daon 120,000-ton/year fully biodegradable plastic PBAT project, which boasts the largest production capacity for such facilities in China, has completed the first phase of its construction; it will be ready for temperature-rise testing by the end of this month. Dawn’s fully biodegradable plastic PBAT project is primarily engaged in the research, development, production, sales, and application of fully biodegradable PBAT resin. The project is being constructed in two phases, with the first phase already in trial production. Once fully operational, it will be able to produce 120,000 tons of fully biodegradable plastic PBAT resin per year, generating sales revenue of 2.4 billion yuan and profits and taxes amounting to 360 million yuan. It is said that Dawn degradable plastic (PBAT) possesses good ductility, heat resistance, impact resistance, as well as excellent biodegradability; it replaces traditional non-degradable materials such as PE, PP, and PVC, thereby addressing the issue of white pollution. The products are widely used in areas such as daily-use film bags, plastic tableware, delivery packaging, agricultural plastic films, medical supplies, and agriculture, forestry, animal husbandry, and fisheries, offering very broad market prospects. On November 28, 2022, Shandong Daon Degradable Materials Co., Ltd. (referred to as “Daon”)’s 120,000 tons per year production facility for fully biodegradable plastic PBAT was featured at the 2022 High-Quality Development Projects Exhibition held in Longkou City, Shandong Province; it achieved first place among the 19 projects that were evaluated. On the morning of June 14, 2022, the Longkou venue of the city’s centralized project launch event was held at the site of the Daon High-Polymer New Materials project. Dawn Co., Ltd. announced in 2021 that it would enter the PBAT polymerization business. On January 17, 2021, Daon Co., Ltd. partnered with the China Textile and Apparel Research Institute to sign an agreement for the construction of a project aimed at producing 120,000 tons per year of biodegradable resin (PBAT). The first phase of this project involves the construction of a continuous polymerization facility with an output capacity of 60,000 tons per year, and the construction period is 15 months. Previously, Dawn said at the online presentation on its 2021 financial results that it planned to put the project into operation in the second half of 2022. The interim report for 2022 stated that efforts would be accelerated to develop the PBAT project, with progress made in line with the established plan.
Downstream of PBAT, Daon Co., Ltd. has also invested in downstream modification and product development projects. As early as 2020, Dawn began developing materials such as PLA foam sheets, PLA/PBAT film modifiers, starch-filled biodegradable film modifiers, PE-based starch-filled masterbatches, as well as biodegradable materials for blister packaging, injection molding, and 3D printing. In April 2021, Daon Co., Ltd. established two new companies – Shandong Daon Degradable Materials Co., Ltd. and Shandong Daon Zhou’s Plastic Packaging Co., Ltd. – the former produces PBAT raw materials, while the latter manufactures packaging products and similar items. In March 2022, Daon Co., Ltd. established Daon Zhou’s (Qingdao) Environmental Protection New Materials Co., Ltd., intending to invest 500 million yuan in a project for the production of biodegradable materials. This project will be carried out in two phases, with the main focus on producing biodegradable raw material particles, flexible packaging products, biodegradable straws, cutlery, and tableware such as meal boxes and plates. In this way, Dawn has established a complete end-to-end industrial chain in the research, development, manufacturing, and packaging of bio-based materials. Upstream of PBAT, Daon Co., Ltd. has also invested in a BDO project. On July 25, 2022, at the Aksu Investment Promotion Service Center in Xinjiang, Daon Group and Shayar County signed an agreement for a project to produce 100,000 tons of 1,4-butanediol (BDO) per year. Daon Group plans to invest in Shayar County to build facilities for producing 200,000 tons of 1,4-butanediol (BDO) as well as 100,000 tons of spandex. This project takes advantage of resources such as natural gas, and it is linked to emerging industries such as biodegradable plastics and high-quality textiles and clothing. The project will be completed in two phases, and the 100,000-ton 1,4-butanediol (BDO) project for which a contract was signed falls under the first phase.
120,000 tons/year fully biodegradable plastic PBAT project. Nature of construction: new construction. Location: Daon Industrial Park, Longkou Economic Development Zone. Construction contents include the PBAT polymerization facility, THF recovery unit, power transformation and distribution room/MCC room, chilled water/air compression nitrogen generation station, central control room, analysis and testing laboratory, warehouses, tank areas, loading and unloading stations, heat transfer medium station, waste gas treatment facilities, sewage treatment station, initial rainwater tanks, accident storage tanks, etc. Production capacity: 60,000 tons/year for Phase 1 and 60,000 tons/year for Phase 2 of PBAT production； The purification and recovery of the by-product THF involve a capacity of 6,600 tons per year in Phase 1 and 6,600 tons per year in Phase 2. Land area: The project covers an area of 133,340 square meters, with a building area of 19,217.94 square meters. Project investment: The total investment for this project is 660 million yuan, of which 446,953,300 yuan is allocated to Phase 1 and 203,046,700 yuan to Phase 2.