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Lianhong New Materials’ integrated project for new energy materials and biodegradable materials / Author/Source: Energy Knowledge Base / Date: April 25, 2023 / Clicks: 13. On April 10, Lianhong New Materials issued a notice titled “Prospectus for the Issuance of A-share Stocks to Specific Investors (Draft)”, stating its intention to issue up to 267,113,600 shares to no more than 35 specific investors; the total amount of funds raised would be no more than 202,000 million yuan. The net amount of funds remaining after deducting issuance costs is intended to be invested in the integrated project for new energy materials and biodegradable materials. According to the announcement, the entity responsible for implementing the integrated project for new energy materials and biodegradable materials is Lianhong Gerun, a holding subsidiary of Lianhong New Technology. Its basic information is as follows: http://img.yf116.cn/image/img/20230425/1432435236315.jpg The construction site for this integrated project is located in the Lunan High-Tech Chemical Industry Park in Tengzhou City, Shandong Province. The construction includes a 1.3 million tons per year DMTO plant (methanol-to-olefins plant), a 200,000 tons per year EVA plant, a 300,000 tons per year PO plant, a 50,000 tons per year PPC plant, as well as various supporting utility facilities and auxiliary production equipment. The total investment amount for the project is 1,250,000.00 million yuan, with 202,000.00 million yuan planned to be funded from the raised capital. Before the funds raised from the issuance of A-share stocks to specific investors are available, the company may use its own funds to finance the investment projects in question, and replace those funds with the money raised once it becomes available. If the actual amount of funds raised (after deducting issuance costs) is lower than the amount intended to be used for the project, the shortfall will be covered by the company using its own funds or through other financing methods. The project construction period is approximately 3 years. The project implementation timeline is as follows: http://img.yf116.cn/image/img/20230425/143312523926.jpg The 200,000 tons per year EVA project utilizes Lyondell Basell’s high-pressure tubular process technology; it is designed to produce photovoltaic film materials with high added value. Once the project is completed, the company will have access to both the world-leading Lyondell Basell tubular process and Exxon Mobil’s batch process, which will help enhance production flexibility and facilitate the development of new products. http://img.yf116.cn/image/img/20230425/143485244814.jpg The PO production process utilizes the world-leading co-oxidation CHPPO technology, which offers advantages over other PO production methods, including higher product yields, fewer by-products, and lower energy consumption and carbon emissions. http://img.yf116.cn/image/img/20230425/1434395247965.jpg The PPC project utilizes a new generation of supercritical polymerization technology developed in collaboration with the Changchun Institute of Applied Chemistry, Chinese Academy of Sciences. This technology features a high proportion of carbon dioxide in the product, high conversion efficiency per reaction cycle, short reaction times, low energy consumption during production, few by-products, and a high molecular weight of the resulting products, making it leader in this field. To date, the project has obtained the \"Registration Certificate for Construction Projects in Shandong Province\" issued by the Online Approval and Supervision Platform for Investment Projects in Shandong Province, the \"Approval regarding the Environmental Impact Assessment Report for the Integrated Project of New Energy Materials and Biodegradable Materials of Lianhong Gerun (Shandong) New Materials Co., Ltd.\" issued by the Zaozhuang Ecology and Environment Bureau, and the \"Review Comments on the Energy Conservation Report for the Integrated Project of New Energy Materials and Biodegradable Materials of Lianhong Gerun (Shandong) New Materials Co., Ltd.\" issued by the Shandong Provincial Development and Reform Commission. As a supplier of new material products and solutions, Lianhong New Materials focuses on the development trends in new materials, emphasizing its efforts in the fields of new energy materials and biodegradable materials, with the aim of building leading industrial clusters in several sub-sectors of new materials. In the field of new energy materials, Lianhong New Materials is a leading domestic producer of EVA photovoltaic film materials. It is currently building a project to produce 3,000 tons per year of vinyl carbonate (VC), as well as a project to produce 20,000 tons per year of ultra-high molecular weight polyethylene materials for lithium-ion battery separators. It has already completed the construction of a combined facility for producing 100,000 tons per year of lithium-ion battery materials and carbonates, and this facility is now in the preparation stage for production ； In the future, an industrial ecosystem for new energy materials will be established, encompassing various categories such as photovoltaic film materials, electrolyte solvents and additives, as well as lithium battery separator materials. Lianhong New Materials has taken the lead in China in developing EVA photovoltaic film materials, thanks to its unique industrial layout and product structure, as well as its strong research and development capabilities. The quality of its products is at an advanced level in both domestic and international industries, enabling it to build a good reputation and market influence. In 2022, the company carried out technical upgrades and capacity expansions to the EVA production facilities, resulting in an further increase in EVA output. Once the 200,000 tons per year EVA plant comes online, Lianhong New Materials’ EVA production capacity will reach approximately 350,000 tons per year. At the same time, Lianhong New Materials is advancing the construction of a 90,000-ton/year VA production facility; once operational, this facility will be able to meet the raw material needs associated with the EVA production plant. This will make Lianhong New Materials’ industrial chain more complete, thereby further enhancing its competitiveness. In terms of biodegradable materials, Lianhong New Technology possesses independently developed technologies for the entire PLA production chain. The 100,000 tons per year lactic acid and 40,000 tons per year polylactic acid (PLA) production facilities being built by its subsidiary Kexue Bio will come online by the end of 2023. The PPC project utilizes industry-leading technology jointly developed by Lianhong New Materials and the Changchun Institute of Applied Chemistry, Chinese Academy of Sciences. Once operational, this project will help expand the company’s range of biodegradable materials, increase the scale of products in this sector, and enhance Lianhong New Materials’ market position and influence.