Guangzhou, Guangdong -- (SBWIRE) -- 05/29/2012 -- Now many domestic PPC (poly propylene carbonate) producers delayed or slowed down their expansion projects, which were planned in latest few years, according to CCM International’s May issue of Biomaterials China News.

A project with the capacity of 3,000 t/a PPC plastic is abolished in 2011 attributed to the immature technology and facility. The production line is owned by China National Offshore Oil New Material Co., Ltd., (CNOOC New Material) a level-three subsidiary of China National Offshore Oil Corporation (CNOOC). CNOOC New Material began this project's R&D in 2004, cooperated with Changchun Applied Chemistry Institute of the Chinese Academy of Sciences(Changchun Applied Chemistry Institute) , and started the construction on July 31, 2007. Before it was abolished, the project had been called off and examined twice. A staffer from the technology development department of CNOOC said the examinations were because the facility was out of order.

The start of an expansion project with the capacity of 10,000 t/a PPC plastic will delay to H2 2012 from March 2010. Mr. Zhang, Manager of Inner Mongolia Mengxi High-Tech Group Co., Ltd. (Mengxi High-Tech), said they planned to add a production line with capacity of 10,000 t/a on March 2, 2010, and they had already started R&D from 2002. However, the expansion hasn’t begun by now. A salesman said the delay was because of technology; now the problem had been solved, so they planned to restart the expansion in H2 2012. The expansion would be divided into 3 phases, and at last, the capacity would increase to 50,000 t/a. In 2004, Mengxi High-Tech cooperated with Changchun Applied Chemistry Institute and constructed the first domestic PPC production line with the capacity of 3,000 t/a.

Another expansion production line with capacity of 25,000 t/a PPC resin of Jiangsu Jinlong-CAS Chemical Co., Ltd. (Jiangsu Jinlong) also gives place to the company's another project. In 2009, Jiangsu Jinlong finished the PPC resin production line with capacity of 22,000 t/a. They planned to expand the capacity to 100,000 t/a in 2011, and the first phase with capacity of 25,000 t/a should be finished before 2012. They also made preparation to be listed thanks to the joint of VC fund. But on April 18, 2012, a staffer of Jiangsu Jinlong said the PPC resin program was slowed down, because the company wanted to speed up the construction of another program, and the PPC resin program would be completed in 2013. Jiangsu Jinlong cooperated with Guangzhou Institute of the Chinese Academy of Sciences (Guangzhou Institute) in technology.

Another new PPC plastic program’s construction is very slow. The program belongs to Guangzhou Tiancheng chemical Co., Ltd., an especially new company for the PPC program, established by the cooperation of Guangzhou Honsea Sunshine Bio Science & Technology Co., Ltd., Tinci Holdings Ltd. and Sun Yat-sen University. They signed the contract in October 2007, whose planned capacity was 60,000 t/a. The first phase was 10,000 t/a, which should be completed in four years. But now, the program is still in foundation construction.

For these companies, the problems for them to delay, slow down or even give up their PPC programs are mainly from technology, market and cost.

Technology is the first barrier for PPC industry.

Both CNOOC New Material and Mengxi High-Tech have suffered the technology constraint. One of them gave up and the other spent 10 years on R&D. Currently, four domestic mainly carbon dioxide degradable plastics technology are developed by Changchun Applied Chemistry Institute, Guangzhou Institute, Sun Yat-sen University and Tianjin University. Based on their technology, both catalyst and raw material are expensive, and then the PPC cost is very high, which leads to the high sales price.

Source: Biomaterials China News 1205
http://www.cnchemicals.com/Newsletter/NewsletterDetail_245.html

Main content of Biomaterials China News 1205:
- China PPC industry grows in twists and turns
- Overview of PLA import and export in China, 2007-2011
- Guangxi Guangwei to gain extra USD19.0 million to support the product line construction of bio-material PVC
- Zhejiang Fuling Plastic established academician workstation
- Kingfa works hard to promote its biodegradable shopping bags
- NatureWorks to expand PLA capacity in Thailand
- Xinfu Pharmaceutical changed its abbreviation to *ST Xinfu in SZSE
- Chinese cassava starch price remains at a low level
- China strengthens regulation of corn industry
- Largest domestic BDO project completed its first phase
- Bio-based and biodegradable plastic additives gain new breakthrough
- Ecomann PHA industrialization technology won Jining Awards for Science
- HTT to develop new degradable polyester

(Guangzhou China, May 10, 2012)

Biomaterials China News, with 12 to 14 topics in one issue, published on the 8th every month, will bring you the latest information on the latest market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations and policies and raw material supply dynamics that are shaping the market.

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