The construction of Dongjing Green Energy’s Wuhai project, the largest PBAT facility in China, is accelerating

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Recently, the biodegradable materials production project established by Shanghai Dongjing Green Energy New Materials Co., Ltd. (hereinafter referred to as “Dongjing Green Energy”) in Wuhai City, Inner Mongolia, has seen a series of key developments. The overall planning for the industrial park was finalized through agreements between the government and private parties, and arrangements for the supply of core equipment were established via a quadripartite agreement, marking the entry of this project into a phase of substantive progress across its entire value chain. On December 25, the Wuhai Municipal Government and Dongjing Green Energy held a signing ceremony for the investment cooperation agreement. The investment cooperation agreement for the \"Shanghai Dongjing Green Energy Wuhai Biodegradable Materials Industrial Park Project\" signed by both parties includes a PBAT production facility with an annual capacity of 1.2 million tons, as well as projects for modifying materials on a scale of 3 million tons per year and for producing finished products at a rate of 2 million tons per year. The goal is to develop a complete industrial chain centered around PBAT, spanning from coal to BDO, then to PBAT, and finally to biodegradable modified materials. Prior to this government-enterprise agreement, the supply of equipment for the project’s core units had already been arranged. On the evening of December 22, Zhuoran Co., Ltd. announced that its wholly-owned subsidiary Zhuoran Digital Intelligence officially signed a Four sides amendment agreement under the \"General Contract for the Construction of the 1.2 million-ton per year PBAT biodegradable polyester production project at Inner Mongolia Dongjing Zhongke New Materials Co., Ltd.\" with the project owner Dongjing Green Energy, Inner Mongolia Dongjing Zhongke New Materials Technology Co., Ltd. (a wholly-owned subsidiary of Dongjing Green Energy, hereinafter referred to as \"Dongjing Zhongke\"), and the EPC general contractor Shanxi Installation Group Co., Ltd. (hereinafter referred to as \"Shanxi Installation\"). Based on the cooperation framework of the original contract, this supplementary agreement specifies the total amount of orders for which Zhuoran Digital will be responsible under the project; it will be tasked with supplying the equipment. The estimated value of these orders is 403,283.45 million yuan, which represents 142.09% of Zhuoran Shares’ audited operating revenue for the year 2024. It is understood that the core component of this series of collaborations is the Dongjing Zhongke project, which aims to produce 1.2 million tons per year of PBAT biodegradable polyester. This project is located in Wuda District, Wuhai City, Inner Mongolia, and it involves the construction of a production line for PBAT biodegradable polyester resin with an annual capacity of 1.2 million tons, as well as THF recovery facilities. Additionally, auxiliary facilities such as a central control room and substation systems will be built as part of this project. Upon completion, the project will become the largest single PBAT biodegradable polyester production line in China. With a substantial total investment, it is in line with the **\"dual carbon\" strategy goals, aiming to drive the transformation and upgrading of the traditional chemical industry toward greener and more environmentally friendly practices. In terms of the partners involved, all parties possess strong capabilities to support the progress of the project: Dongjing Green Energy was established jointly by Inner Mongolia Dongjing Bio-Environmental Protection Technology Co., Ltd. and Beijing Zhongke Green Energy New Materials Co., Ltd. Dongjing Bio-Environmental Protection is a leading domestic manufacturer of biodegradable and modified materials, having established a complete industrial chain in key areas such as PBAT ； Dongjing Zhongke focuses on the research, development, and industrialization of high-performance green new materials. Its main business activities include the development of new material technologies as well as the manufacturing and sales of bio-based materials, with the goal of becoming a leading enterprise in the field of biodegradable materials in China ； As a core subsidiary of Shanxi Construction Investment Group Co., Ltd., a state-owned enterprise in Shanxi Province, Shanxi Installation was listed on the main board of the Hong Kong Stock Exchange in November 2023; it is able to provide integrated system solutions for projects across the entire process and throughout the production chain ； Zhuoran Digital provides support for the implementation of project’s core equipment, thanks to its capability to supply professional equipment. The signing of this government-enterprise agreement along with the equipment supply contract has established a collaborative framework characterized by the government providing support, enterprises taking the lead in implementation, and coordinated efforts across the entire chain. This not only lays a solid foundation for the rapid progress of the Dongjing Green Energy Wuhai Biodegradable Materials Industrial Park project, but it will also inject strong momentum into the green transformation of Wuhai as a resource-based city, thereby facilitating the high-quality development of the regional green new materials industry.