The PBAT biodegradable materials full-industry chain project in Wuhai City, Inner Mongolia, with a total investment of around 10.7 billion yuan, has officially commenced construction

Thread Content

On March 26, the PBAT biodegradable materials full-industry chain project, with a total investment of around 10.7 billion yuan, officially commenced construction in the Wuda High-Tech Industrial Development Zone of Wuhai City, Inner Mongolia. The project is being driven by Inner Mongolia Dongjing Zhongke New Materials Technology Co., Ltd., and its scope of construction includes PBAT polymers, biodegradable modified materials, and fully biodegradable products. Public information indicates that the project will be implemented 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. The corresponding construction scope has expanded from raw materials to end products. The supporting facilities on the raw material side have been clearly defined simultaneously. One of the key raw materials for PBAT is BDO, and Wuhai has developed a certain industrial foundation in recent years. By 2025, the local BDO production capacity will have reached 1.292 million tons per year. According to the disclosed information, the BDO required for the project will be supplied by Inner Mongolia Dongjing Bio-Environmental Protection Technology Co., Ltd., a company located in the same industrial park; a coordinated supply relationship has been established within the park. The arrangements for the first phase of construction have been outlined. The project for 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 and completion is targeted for November 2027. 10 continuous production lines are planned, with each line having a capacity of 120,000 tons per year. This corresponds to a larger-scale continuous production scheme. The project start date coincides with recent changes in PBAT prices. Previously, Kingfa Technology raised the prices of its PBAT products, with the price of resins increasing by 700 yuan per ton and that of modified versions rising by 500 yuan per ton. Companies such as BASF and Wanhua Chemical also adjusted the prices of their related products, and the cost pressures are gradually spreading throughout the industry chain. Against this backdrop, the project proposes \"affordable plastic bans\". For PBAT materials, the future application prospects depend not only on production capacity but also on the degree of integration among raw materials, modification processes, and end-use applications. This project brings together the relevant components within the same facility for development; such an arrangement has already been used in some projects. However, an extended chain does not mean that the synergistic effect is guaranteed. Future performance will need to be further observed in light of the progress of construction and operational conditions. Whether the flow of the project from raw materials to the end product can proceed smoothly remains an area that requires ongoing attention.