The PBAT full-industry chain project, with a total investment of around 10.7 billion yuan, undertaken by Inner Mongolia Dongjing Zhongke New Materials Technology Co., Ltd., has been officially launched

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On March 26, an inauguration ceremony in the Wuda High-Tech Industrial Development Zone of Wuhai City, Inner Mongolia, attracted the attention of the entire chemical industry. The PBAT full-industry chain project, with a total investment of around 10.7 billion yuan, undertaken by Inner Mongolia Dongjing Zhongke New Materials Technology Co., Ltd., has been officially launched. This project is not simple. What it aims to create is a complete industrial chain that runs from coal to end-use biodegradable products. Zhang Hao, chairman of Shanghai Dongjing Green Energy New Materials Co., Ltd., revealed on site that the project will be carried out in three phases: Phase 1 will involve the construction of a facility capable of producing 1.2 million tons per year of PBAT biodegradable polyester; Phase 2 will focus on the production of 3 million tons per year of biodegradable modified materials; and Phase 3 will aim to produce 2 million tons per year of fully biodegradable products. Why choose Wuhai? Because a strong BDO industrial foundation has already been established here. By 2025, Uhai City’s BDO production capacity will have reached 1.292 million tons per year. BDO is one of the key raw materials for PBAT, accounting for approximately 34% of the cost of PBAT. The BDO required for the project comes directly from Inner Mongolia Dongjing Bio-Environmental Protection Technology Co., Ltd., which is located in the same industrial park, ensuring local supply of raw materials and thus establishing a closed-loop industrial chain of \"coal—BDO—PBAT—modified materials—final products\". According to the schedule, the first phase of the project, with an annual production capacity of 1.2 million tons of PBAT, is expected to take 18 months to build. Construction is scheduled to begin in November 2025, with completion expected by November 2027. 10 consecutive production lines, with each having a capacity of 120,000 tons – an impressive scale indeed. The timing of implementing this project is also worth considering. Just a few days ago, Kingfa Technology announced price increases for its PBAT product line: the resin variants saw an increase of 700 yuan per ton, while the modified variants saw an increase of 500 yuan per ton. BASF and Wanhua Chemical have also raised the prices of their related products. The pressure of rising raw material costs is being passed down along the supply chain. But Zhang Hao mentioned a key term at the inauguration ceremony: “Affordable plastic ban.” This means that by establishing a complete supply chain covering everything from upstream BDO to downstream end products, it is possible to reduce the cost of biodegradable materials, thereby making eco-friendly products more accessible.