Thread Content
------------------------------------------------------------------------ On December 27, 2024, the integrated project for product structure adjustment at Huasu Co., Ltd., which aims to produce 120,000 tons per year of biodegradable new materials, reached an important milestone. The project was successful in its material feeding process according to the established plan, resulting in the production of high-quality biodegradable new material PBAT; this marks a partial success for the project and signals the entry into a new phase of rapid progress. The project is located in the Dingyuan Salt Chemical Industrial Park in Anhui, covering a total land area of 392 mu. The construction capacity is 160,000 tons per year of formaldehyde, 100,000 tons per year of BDO, and 120,000 tons per year of PBAT. The project uses calcium carbide as a raw material to produce acetylene through the expansion and renovation of the existing acetylene plant; meanwhile, methanol and hydrogen are purchased externally to manufacture BDO, with PBAT products being produced as a by-product. Once the project is put into operation, it will expand the range of biodegradable plastic products available on the market, meet the growing demand for environmental protection, and promote a green transformation in the plastics industry, thereby making a significant contribution to environmental conservation efforts. At the process technology level, its formaldehyde production facility uses Zhejiang Sinochem Wanfeng’s iron-molybdenum method for methanol-to-formaldehyde conversion; this process is mature and highly safe ； The BDO plant employs a modified alkyne-aldehyde production process developed by Hong Kong Guanda; this process features strong continuity in production, low material consumption, and stable product quality ； The PBAT production line utilizes the one-step manufacturing process developed by Shanghai Juyou; this process is well-established, ensuring stable product quality. Huasu Co., Ltd. also has its own advantages in entering the BDO-PBAT project. The raw materials used, namely acetylene and some hydrogen, can be sourced from the company itself, which helps to reduce production costs while ensuring a stable supply of these raw materials; this in turn enhances the market competitiveness of the products. Furthermore, Huasu Plastics is located in the East China region, which gives its products a geographical advantage in terms of sales; the transportation cost per ton is reduced by over 800 yuan compared to the Northwest region. This enables the company to have greater flexibility and competitiveness in terms of product pricing and market coverage. In addition, on December 31, Huasu Co., Ltd. released its response to the \"Query Letter regarding the review of the application documents submitted by Anhui Huasu Co., Ltd. for issuing shares to specific investors.\" It provided detailed answers regarding the latest progress of the investment and construction of the \"120,000-ton annual production capacity for biodegradable materials project,\" the estimated time of commissioning, the arrangements for raising funds, and the anticipated impact on the company’s financial performance. The overall construction period for this project is estimated to be around 24 months. Construction began in December 2022, and it is currently in the preparatory stage for trial production. The trial operation is scheduled to be completed in the first half of 2025, after which the project will be fully capitalized in one go. The total budget for the project amounts to 2.328 billion yuan. According to the \"Feasibility Study Report on Anhui Huasu Co., Ltd.’s 120,000-ton-per-year PBAT integrated production project\", prepared by Donghua Engineering Technology Co., Ltd. in November 2021, it is estimated that during the project’s operation period, the annual tax-exclusive sales revenue will be 2.66 billion yuan, while the annual after-tax profit will be 258 million yuan. The project’s after-tax internal rate of return is 14.44%, indicating strong profitability and good economic returns. Estimation of operating income for the project producing 120,000 tons per year of biodegradable new materials: The main product of this project is PBAT, while the by-products include THF, butanol, BDO, and reconstituted BDO components. The project’s operational period is 15 years; the production capacity will be 80% in the first year, 90% in the second year, and 100% from the third year onward. The estimated revenue figures for the following projects are derived from a combination of industry historical data, forecasts regarding future market conditions, industry cycles, and capacity utilization rates. The tax-exclusive sales revenue upon 100% production capacity being achieved is 2,242,938,100 yuan. The details are as follows: Huasu Co., Ltd. is primarily engaged in the production and sale of chlor-alkali chemical products based on PVC and caustic soda; its business scope includes the extraction of raw salt and limestone, coal-based power generation and calcium carbide production, PVC and caustic soda manufacturing, as well as the comprehensive utilization of waste materials, thereby establishing an integrated circular economy system in the chlor-alkali chemical industry. The company’s main products include PVC, caustic soda, limestone, calcium carbide slag cement, and lime.