You are Group plans to invest 20.7 billion yuan to build the first phase project of degradable plastics recycling industry

On May 6, You are Group announced that it intends to build a Phase I green environmental protection recycling industry project with an annual output of 2× 600,000 tons of BDO and an annual output of 2×1 million tons of PBAT/PBS/PBT/PTMEG in Wuhai City, Inner Mongolia with its wholly-owned subsidiary, Inner Mongolia You are Group Chemical Co., Ltd., as the main investor. The project is expected to have a total investment of 20.7 billion yuan. The construction period of the project is from May 2021 to December 2023. After the project is completed, it is expected to achieve an annual operating income of about 16.4 billion yuan and a total profit of about 3.5 billion yuan.

The project will build 1 million tons of PBAT/PBS/PBT/PTMEG co-production plant, 600,000 tons of BDO plant, carbon-based material hydrogen production plant, 800,000 tons of formaldehyde synthesis (55%wt) plant, 400,000 tons of Adipate plant and supporting raw material production plant and BDO The unit has an annual output of 800,000 tons of acetylene raw material combined unit and supporting and auxiliary production facilities.

With the large-scale use of plastics, white pollution has become a globally recognized environmental problem. With the gradual implementation of the national policy of banning and limiting plastics, the demand for degradable plastics has increased significantly, and it will have a broad market development prospect. Construction projects of degradable plastics have exploded in the past two years, and BDO is an important raw material for the production of degradable plastics. Since the beginning of this year, the price of BDO has soared, leading to the shortage of degradable materials.

Figure 1 BDO price quotation

You are Group said that the production technology involved in the project products is relatively mature, and its main business products are chemical materials, so there is a strong connection and connection in production, technology, market and other aspects. Relying on the management, technology and talent advantages accumulated in the existing circular economy industry chain, it is based on the field of degradable materials. On the one hand, it can further consolidate and expand the comprehensive competitive advantage of the existing industrial chain, and on the other hand, it can gradually establish its industrial scale and comprehensive competitiveness in the field of fine chemical industry.

Source: You are Group Announcement