Barriers to Lie on Road of Bio-degradable Plastics

More and more businessmen, politicians and citizens turn their sights on the bio-degradable plastics due to the shortness of fossil fuel and serious living condition. Also, domestic bio-materials have gained excellent score both in production capacity and technology. But will bio-degradable plastics have a smooth sail in the future? Maybe there are barriers lying on the road of bio-degradable plastics' development, according to CCM International’s June issue of Biomaterials China News.

High Price leads to small market

 

China has the largest population and now China's technology is close to that of western developed countries. However, China is still considered as a huge production base, but not a consumer market.

For the public, bio-degradable plastic sounds like a luxury. Take the food-grade film for example,PLA (polylactic acid) ,the most popular bio-degradable plastic, can be sold for USD4,740/t, while price of PE (polyethylene, one of the most general plastics) is only about USD1,896/t. Expensive price makes bio-degradable plastic invisible in general activity and daily life though it can attract many people's sight in large exhibition. Only some famous companies, like Coca-Cola and McDonald, who want to bear more social responsibility, have used bio-degradable plastic as their raw material.

 

Mr. Dan Sawyer, Manager of NatureWorks LLC in the Asia-Pacific region, said on April 19, 2012 that the quantity of consumed PLA worldwide increased by 20%, but regions responsible for the increase are Europe and America. In 2005, they entered into the Chinese market, and in 2011, their sale quantity is still about 4,000t, while the capacity of NatureWorks is 140,000t/a.

 

Domestic leading enterprises of bio-degradable plastics, such as Wuhan Huali, Guangdong Shangjiu, Kingfa, etc., complained about the similar problem, expressing that domestic bio-degradable plastic market is very small.

New Market is difficult to expand

 

Besides expensive cost, Mr. Hu, Chief Scientist of Wuhan Huali, explained that the difficulty to expand market has tormented bio-degradable plastic salesmen for a long time. He said that domestic companies have already formed a fixed network by purchasing and selling, while as a new product, bio-degradable plastic is still difficult to enter their network, for most enterprises are afraid to bear extra risk and don’t want to break down the cooperation with their traditional partners.

 

Attacks from low-end products and fake commodities

 

Attributed to government's weak regulation, many cheap fake commodities disturbed the market. When Wuhan Huali tried to expand market, they often have to face the situation exactly as what's said by Mr. Hu, "it just needs some recycled plastic and some calcium carbonate to produce fake commodities which are similar to ours, but these fake commodities can be sold at a very cheap price. If fake commodities can’t be banned effectively, the real environmental bio-degradable plastic industry will not have a bright futrue, which is dangerous (for the industry) at present.

R&D expenditure is insufficient

 

Innovation is the key factor for a company’s development, especially for those high technology industries, such as bio-degradable material. And private enterprises are an important source for innovation as they are sensitive to new technology and new market. But in China, most private enterprises’ R&D expenditure is insufficient. Mr. Bian, Senior Engineer of Shenghong Group, says that the R&D in China is just about how to make new technology applicable to industrial production, and one reason is that their R&D expenditure is limited by company’s budget, the other reason is that they dare not to start a long-term research since they are afraid of market changes. Mr. Hu, Chief Scientist of Wuhan Huali, who has been engaged in Chemical Department of Natural Science Foundation Committee, says that Chinese government should publish more policies to encourage colleges and research institutes conducting application and mass production research, as private companies are not able to apply for NSFC (Natural Science Foundation of China).

 

Raw material needs reformation

 

China has a huge population with relatively little land resources. Undoubtedly, Chinese government has to restrict food and grain application on non-food industries to guarantee domestic food supply. Nevertheless, corn and some grain crops which have abundant starch are still important raw materials of bio-degradable plastic, the problem may not have stood out yet. The total food-and-grain usage in this industry is not huge now. However, once bio-degradable plastics become main material in the future,  the problem can’t be ignored. Luckily, straw and other organic waste can replace grain crop as raw material. Corn deep processing industry can be a reference for the select of raw material, as corn deep processing industry consumed too much corn, which promotes corn price. At last, government published a serious of policies to squeeze their profit continuously.

 

Process technology is not mature

 

Through the development of several centuries, the process technology of fossil fuel plastics is very mature, and fossil fuel plastics can be widely used in almost all industries. But bio-degradable plastics still have many disadvantages, especially in process technology, which leads to bio-degradable plastics’ application focusing on package, medicals and disposable table ware.

 

Recycle and degradation may require a new system

 

In fact, most degradable plastics can’t decompose in nature environment. For example, PLA may exist 100 years or more without controlled-composting environment, which is made up of special facility, special microbe, and temperature of 60 celsius degree for more than 10 days. Besides, garbage workers can’t distinguish PLA from PET efficiently. A new system is required to recycle PLA, according to the dilemma on PLA’s recycle in America in 2009 that rubbish recycle station refused people to use PLA bottlers since PLA can bring great trouble for American Rubbish Recycling System that USA has spent 20 years on the system’s construction.

Though the bio-degradable plastic industry still has many problems to be solved, it’s still a great progress to decrease the rely on fossil fuel and strengthen environmental protection. The current situation is that more problems may be hidden, since the industry has just taken its first step. Nevertheless, the overseas market demand is greatly over its capacity, so the domestic market potential is predicted to be great in the future.

Source: Biomaterials China News 1206

http://www.cnchemicals.com/Newsletter/NewsletterDetail_245.html

Main content of Biomaterials China News 1206:

Barriers to lie on road of bio-degradable plastics

Numerous bio-material enterprises enter agriculture film market

Development of PLA recycle in China

 PBS may enjoy bright future in China

Kingfa tries to double its sales within four years

Domestic first low-temperature special water soluble fiber successfully developed

JAAS successfully developed degradable straw pot

Corn stock of northeast ports continues rising

Price of global wheat may be pushed to a higher record due to drought

… …

(Guangzhou China, June 12, 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.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1098.html

China PPC Industry Grows in Twists and Turns

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.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source : http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1066.html

3rd Edition Lactic Acid & Polylactic Acid Benchmarking Report Comes Out

Lactic acid (LA) is one of the most important multifunctional organic acids. Its application fields have been expanding in recent years; more and more high-quality L-lactic acid is needed. In 2011, its total capacity in China reaches 385,000t/a and its output comes to 165,500 tonnes. What is the detailed production situation of lactic acid in the past two years?

Corn and glucose are the two major raw materials for domestic LA production. Being an important production country on corn and glucose, China's supply of the two raw materials for LA production is abundant by now. In 2011, the output of corn and glucose is 184,000,000 tonnes and 1,900,000 tonnes respectively in China. What is the latest information of the two kinds of raw materials in China?

Compared with ordinary plastic, polylactic acid (PLA) is featured by being environmentally friendly and biological degradation, which is attracting more and more attention both at home and abroad. Though China has achieved great progress in the development of PLA in the past ten years, its PLA industry still stays at the initial stage. Domestic PLA production still lags behind some developed countries such as the US. In 2011, there are six active PLA producers in China. The total capacity is 21,500t/a and the output can reach 7,300 tonnes. What are the details of PLA production in China in the past two years?

In terms of PLA consumption in China, the apparent consumption of PLA in 2011 is 11,050 tonnes, 33% more than that of 2010. The most important consumption is plastic commodity, accounting for over 60% of the total consumption of PLA in China in 2011. What is the precise consumption pattern of PLA in 2011?

Speaking of the production cost of LA and PLA in China, the manufacturing cost is the major part, accounting for about 90% of the total production cost. What is the precise analysis of domestic LA and PLA on leading producers in 2012? You can find the answers in CCM International’s 3^rd Edition Report of Benchmarking of Lactic Acid and Polylactic Acid in China, published in February 2012.

The report can offer you vital business intelligence of China's LA and PLA market so that you may grasp the potential commercial opportunities. It can also keep informed of your competitors and their activities in China. By the profound analysis providen in this report, readers can learn more about the key market drivers and factors so as to find out the future trend of Chinese LA and PLA market.

Highlights of this report are as follows:
- LA and PLA production situation in China
- LA and PLA production cost in major producers
- PLA technique analysis and PLA consumption pattern

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_r_1025.html

Plastic Ban Accelarates PHA Development in China

As people's environmental protection awareness is increasing, the plastic ban is estimated to be implemented gradually in Europe and in the US. It might offer more business opportunities for the Polyhydroxyalkanoates (PHA) manufacturers in China. CCM International’s December Issue of Industrial Biotechnology China News reports this story.

In November 2011, the City Council of Seattle in the US is considering a ban on single-use plastic bag which is harmful to marine wildlife and recycling machinery. Recently, under the new city law of Seattle, grocers would have to get rid of the thin plastic bags that are doled out at most check-out stands and they would be required to charge a five-cent fee for any paper bags used at checkouts.

In fact, international and domestic-related plastic limitation and the policies of plastic degradation encouragement have been launched at present. This provide a perfect chance for PHA. Since PHA has great performance in gas barrier property and it is great for producing plastic packaging, especially the fresh wrapping paper. Therefore, Chinese PHA manufacturers are optimistic about the future PHA market.

Mr. Zeng, a staffer from Shenzhen Ecomann Bio-technology Co., Ltd. (Shenzhen Ecomann) reveals that export of PHA in the company is increasing gradually as the national ban policies on plastic launched in Europe and in the US in 2008-2011. He emphasizes that the export business in Shenzhen Ecomann will maintain an increasing growth if the national policies launched in the near future.

Mr. Wang, manager of Tianjin Green Bioscience Co., Ltd. (Tianjin Green), explains that PHA products of Tianjin Green are also mainly exported to the US and Europe. He believes that demand of PHA products in the US and Europe will increase as the implementation of ban on plastic in the US and Europe.

According to the survey of CCM international, the output of PHA reached 709 tonnes in 2010 in China, and PHA manufacturers in China have a rapid growth in capacity from 7,035t/a in 2009 to 17,016t/a in 2011.

A more detailed story is reported in Industrial Biotechnology China News. If you need more information, please contact us at econtact@cnchemicals.com.

Headline News of Industrial Biotechnology China News 1112:

-Zhejiang Fuel Ethanol will launch the cassava ethanol production line in 2013.

-Recently, a new policy of grain fuel ethanol is issued by the Chinese government to cancel the VAT refund policy and increase the levy on consumption tax of vehicle fuel ethanol gasoline products which will have the potential to accelerate the development of cellulosic ethanol development.

-Domestic biodiesel manufacturers need specific policies from the Chinese government rather than any other guidances written by the Chinese government like the guidance published in November 2011.

-Hualan receives HSA production documents in November 2011.

-The worldwide economic downturn affects PTT sales in China.

-China's PLA import volume decreased by more than 65.50% while price of PLA export and import sharply increased in October 2011.

-The PHA manufacturers in China find more business opportunities thanks to the ban on plastic, and it is estimated that the trend of ban on plastic will go on gradually in Europe and in the US.

……

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_930.html

PHA Manufacturers to Benefit from the Ban on Plastic in Europe and in America

Thanks to people's increasing awareness of environmental protection, it is estimated that the trend of ban on plastic will go on gradually in Europe and in the US. Therefore, the Polyhydroxyalkanoates (PHA) manufacturers in China will have more business opportunities at home and abroad, according to CCM International’s December Issue of Industrial Biotechnology China News.

In November 2011, the City Council of Seattle in the US is considering a ban on single-use plastic bag which is harmful to marine wildlife and recycling machinery. It wants to take the choice away in order to save the environment and money. Council member Mike O'Brien, chair of Seattle's regional development and sustainability committee, says that the proposal is designed to be in line with what most people in Seattle want to protect—the health of Puget Sound and the marine life.

Recently, under the new city law of Seattle, grocers would have to get rid of the thin plastic bags that are doled out at most check-out stands and they would be required to charge a five-cent fee for any paper bags used at checkouts. In fact, international and domestic-related plastic limitation and the policies of plastic degradation encouragement have been launched at present.

Thanks to the trend of ban on plastic launched in the near future, the Chinese PHA manufacturers are optimistic about the future PHA market.

Mr. Zeng, a staff from Shenzhen Ecomann Bio-technology Co., Ltd. (Shenzhen Ecomann) reveals that export of PHA in the company is increasing gradually as the national ban policies on plastic launched in Europe and in the US in 2008-2011. He emphasizes that the export business in Shenzhen Ecomann will maintain a good growth if the national policies launched in the near future.

Mr. Wang, manager of Tianjin Green Bioscience Co., Ltd. (Tianjin Green), explains that PHA products of Tianjin Green are also mainly exported to the US and Europe. He believes that demand of PHA products in the US and Europe will increase as the implementation of ban on plastic in the US and Europe.

Besides, Mr. Zeng explains that PHA is mainly used in production of plastic packaging, especially the fresh wrapping paper, thanks to its great performance in gas barrier property. Recently, the company's PHA products are mainly used in agriculture and medicine areas. Thanks to PHA's bright future, Mr. Zeng claims that Zoucheng Shandong plans to expand its PHA's capacity to 75,000t/a from 5,000t/a. Recently, the company is preparing for the PHA expansion documents to the Chinese government and it is estimated that the company will begin the construction in 2012.

Owing to higher prices of PHA resins than those of conventional plastics, the PHA products are mainly exported to the developed countries. Take Shenzhen Ecomann for example, in early December 2010, it gained approval from the European Union for its PHA to be used in foodstuffs, providing its PHA with  more applications in food and beverage industry. In March 2010, Shenzhen Ecomann has signed an agreement with A&O FilmPAC (a resin distributor in the UK) to entitle it as the sole EU distributor for its PHA. Shenzhen Ecomann didn't set up any other agents except A&O FilmPAC in other countries.

Thanks to the national government support, PHA manufacturers in China have a rapid growth in capacity from 7,035t/a in 2009 to 17,016t/a in 2011. According to the statistics of CCM international, the output of PHA reached 709 tonnes in 2010 in China.

Meanwhile, there have been six active PHA producers in China. Among these PHA producers, only three producers can industrially produce PHA at present and Tianjin Green Bioscience Co., Ltd. is the largest PHA producer with capacity of 10,000t/a. As the second largest PHA producer in China, Shenzhen Ecomann Biotechnology Co., Ltd. has already launched its PHA production line with capacity of 5,000t/a in 2009. As the first domestic PHA producer, Ningbo Tian'an Biologic Material Co., Ltd. (Ningbo Tian'an) has become an important PHBV producer of the world. It is reported that Ningbo Tian'an may expand its PHA capacity from the current 2,000t/a to 5,000t/a in the next several years. Due to high cost of PHA production, Tianjin North Food Co., Ltd. stopped its PHA production line at the end of 2009. Moreover, Lukang Pharmaceutical Co., Ltd. has been doing research and development on PHA since 2010, as PHA will have a bright prospect in medicine field.

Source: Industrial Biotechnology China News 1112

http://www.cnchemicals.com/Newsletter/NewsletterDetail_21.html

Main content of  Industrial Biotechnology China News 1112:

Zhejiang Fuel Ethanol to launch the cassava ethanol production line in 2013

New policy of fuel ethanol in China accelerates development of cellulosic ethanol

Ningbo Yinzhou's first biogas power plant launched in November 2011

Domestic biodiesel manufacturers need the appropriately specific policies from the Chinese government

Hualan receives HSA production documents in November 2011

Trade analysis of butanol in China

Zhangjiagang Huamei to launch PDO products in April 2012

Worldwide economic downturn affects PTT sales in China

……

Industrial Biotechnology China News, a monthly publication issued by CCM International on 8th of every month, focuses on biofuels, bio-products, bio-based chemicals, bio-materials and industrial biotechnology applications, offers latest investment hotspots, new technology & product, company & market dynamics, and government regulations, aiming to facilitate your insight into China's industrial biotechnology.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_877.html