Tongde Chemical plans to invest an additional 3.479 billion yuan to complete the integration project for the PBAT new material industry chain
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On August 26, Tongde Chemical announced that it plans to invest an additional 3.479 billion yuan to complete the integration project for the PBAT new material industry chain. By the end of 2024, 3.049 billion yuan had been invested in the construction of this project. The reasons for the additional investment include changes in site conditions, slow progress in the construction of supporting facilities, rising prices of construction materials, and certain costs that cannot be quantified. This additional investment is a adjustment made based on the actual circumstances during project implementation; it meets the project’s actual needs and helps to advance the project’s progress. Project investment: As of the end of 2024, 3.049 billion yuan had been invested in the construction phases of the PBAT new material industry chain integration project, bringing the total investment in this project to approximately 3.479 billion yuan. The details are as follows: Reasons for additional investment in the project: 1. There have been significant changes in the on-site conditions of the PBAT new material industry chain integration project. Due to geological conditions, construction was carried out in stages, which resulted in an increase in the amount of civil engineering work on site, higher investment costs for the external pipe galleries, and increased overall layout expenses; correspondingly, the costs for lighting and water supply and drainage systems also increased ； Due to the phased construction approach, facilities such as power distribution and transformation units as well as cabinet rooms, which were originally planned to be built together in the initial feasibility study, must now be designed and constructed separately, resulting in increased investment for the power distribution and transformation systems as well as the instrumentation and control systems ； 2. During the initial stage of project construction, the park promised to have relatively complete supporting facilities. During the project construction, the development of supporting facilities in the park was slow, failing to keep up with the schedule required for the project’s construction. This project has seen the installation of additional safety and environmental protection facilities; moreover, there are many supporting facilities related to PBAT, which has increased the construction costs ； 3. There was a significant increase in the prices of construction materials during the period of bidding for project subcontracting. In particular, price increases were especially noticeable for rebar, concrete, and shaped steel, leading to higher costs ； At the same time, some equipment is of high-quality imported type, which has led to a significant increase in costs compared to the estimated period. 4. Some costs cannot be quantified. The quantifiable increases in investment are shown in the table below:
BDO (1,4-butanediol) is an important raw material in the organic chemical and fine chemical industries; it is used as a basic material for producing polybutylene terephthalate (PBT), **tetrahydrofuran (THF), and 1,4-butanediol. With increasing efforts to protect the environment worldwide, restrictions on plastic use have been implemented in most countries. In China, as a result of the introduction of such restrictions and the expansion of the green consumer market, fully biodegradable plastics hold promising market prospects. PBAT, being one type of fully biodegradable plastic, can be widely used in supermarket shopping bags, takeout containers, agricultural plastic films, and biomedical applications. PBT can further be converted into PBAT. THF is an important organic solvent, and the polytetramethylether glycol (PTMEG) obtained through polymerization is a key raw material for producing high-elastic spandex fibers. Spandex is primarily used in the manufacture of high-elastic knitted products such as premium sportswear and swimsuits. 1,4-Butanediol is a raw material used in the production of 2-pyrrolidone and N-methylpyrrolidone products; from these, a range of high-value-added products such as vinylpyrrolidone and polyvinylpyrrolidone are derived, which are widely used in fields such as pesticides, pharmaceuticals, and cosmetics.
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