Tongde Chemical Advances Construction of Integrated Production Line for Bio-Degradable Plastics and Raw Materials

Tongde Chemical, a wholly-owned subsidiary of Tongde Group, is currently undertaking a project to construct an integrated production line with an annual capacity of 60,000 metric tons of bio-based fully degradable plastics (PBAT) and 240,000 metric tons of 1,4-butanediol (BDO), the raw material for PBAT. The overall construction progress of the project has surpassed 80%, with the aim of achieving trial production before the end of this year.

"Bio-degradable plastics, as an emerging industry with significant economic and low-carbon ecological significance, are currently a hot topic for global research and development and promotion. We believe there are great market opportunities," said Zhang Yunsheng, the founder of Tongde Chemical. "In recent years, the company has actively planned for transformation and upgrading, targeting new energy, new materials, and other business sectors, ultimately choosing degradable materials."

PBAT, as a fully bio-degradable plastic, has a wide range of applications including supermarket shopping bags, takeaway food containers, agricultural mulching films, and biomedical products. With the introduction of plastic restrictions and bans, along with the expansion of the green consumption market, the use of PBAT as a substitute for traditional plastic materials has become one of the most effective methods to eliminate "white pollution." BDO, on the other hand, is an important organic and fine chemical raw material and one of the main production materials for PBAT.

"This project integrates the world's most advanced process equipment and digital intelligent manufacturing technology, achieving world-leading levels in terms of overall process, product composition, energy conservation, environmental protection, and operational efficiency," Zhang Yunsheng added.

The project construction has also brought certain financial pressure to Tongde Chemical, and the advantages of capital market financing channels have been demonstrated. In July of this year, the company's refinancing application received approval from the China Securities Regulatory Commission. The company plans to raise funds of no less than 60.3 million yuan and no more than 24.1 million yuan, which will be used entirely to repay bank loans after deducting issuance expenses.

In conclusion, Tongde Chemical's project to establish an integrated production line for PBAT and BDO showcases its commitment to the development of the bio-degradable plastics industry. The project's advancement in advanced technology and digital manufacturing demonstrates the company's dedication to achieving world-leading standards. Tongde Chemical's efforts to secure additional funding through the capital market highlight its determination to overcome financial challenges and ensure the successful completion of the project.