Changhong High-tech Degradable Masterbatch Industrial Park Investment Project Shareholders Meeting Approved

On February 16, Changhong Hi-Tech held the first extraordinary general meeting of shareholders in 2023. The company issued an announcement showing that the general meeting of shareholders voted and passed the “About the signing of the and Proposal on Foreign Investment to Establish a Wholly-owned Subsidiary Company”. Previously, the company announced that its wholly-owned subsidiary, Changhong Biology, plans to sign an “Investment Agreement” with the Hezhou Municipal People’s Government, and plans to establish a subsidiary company, Guangxi Changhong Biomaterials Co., Ltd. The grain industrial park project is expected to have a total investment of 3 billion yuan, which will be invested in two phases, each with an investment of 1.5 billion yuan. The investment needs to be reviewed and approved by the general meeting of shareholders before it can be formally launched.

The company already has the production capacity of PBAT, but because the direct use of 100% PBAT to produce terminal degradable plastic products cannot meet the relevant mechanical performance requirements and the cost is high, so it is necessary to add about 35% calcium carbonate to the production of PBAT products to achieve modification Effect.

It is understood that Hezhou, Guangxi, where the project is located, has rich and high-quality calcium carbonate resources and is known as China’s “Heavy Calcium Capital”. “Hezhou White” marble has a calcium carbonate content of more than 98% and a whiteness of more than 92%. It is well-known both at home and abroad.

The deliberation and approval of this shareholders’ meeting means that Changhong Hi-Tech has taken another key step in the integrated layout of the upstream and downstream of the whole industrial chain of degradable plastics, and has made substantial progress. The construction of this project can provide the company with stable and high-quality calcium carbonate raw materials. It is another big investment in the field of degradable plastics after the company plans to invest 11.2 billion yuan in the natural gas deep processing project in Qingyang, Gansu Province to produce BDO, the key upstream raw material for PBAT. . In the future, with the continuous advancement of various projects, the company will plan to form a whole industrial chain layout from BDO, to PBAT products, calcium carbonate masterbatch, PBAT modification and then to degradable products.