Thursday, December 22, 2011

China to Accelerate Development of Biomaterials

Chinese Ministry of Industry and Information Technology (MIIT) released a "Twelfth Five-Year Plan for Industrial Technology Innovation (2011- 2015)" on November 4, 2011, which will accelerate the development of domestic biomaterial industry in next several years, according to CCM International’s first issue of Biomaterials China News.

In general, the plan will support technological innovation of four industry fields including raw materials, equipment manufacturing, consumer goods and information technology sectors to boost the industrial transformation and upgrading. Among these fields, biomaterial industry will directly benefit from the related support policies of the raw materials and consumer goods. Based on the specific content of the plan, domestic biomaterial industry will get more support from the Chinese government and enter a rapid development stage.

Major tasks of the plan are: to strengthen the technological innovation ability, to build the service system of technological innovation, to develop the key and common technologies, to promote the transformation of scientific research achievements, and to foster and develop the emerging industries of strategic importance.

Major guarantee measures of the pan to support technological innovation are: to establish a coordination mechanism, to increase investment, to strengthen policy guidance, to improve the technology standard system, to expand international scientific and technological cooperation and to strengthen talent training.

Besides this plan, another plan related to biomaterial, namely "Twelfth Five-Year Plan for New Material Industry", has also been completed by MIIT at the end of November 2011, which may be published in December 2011. On November 16, 2011, Mr. Gao, an officer from MIIT, revealed that total output value of domestic new material industry may reach about USD300 billion in 2015, with an annual growth rate of above 25% from 2011 to 2015. Meanwhile, the specific guarantee measures are: to establish a stable financial input mechanism, to build and perfect a safeguard mechanism for investment and to promote 30 new materials, etc.

As for the above plans, some insiders of domestic major biomaterial producers believed that the above plans will be helpful to accelerate development of domestic biomaterial industry in the next several years. Mr. Zhang, a staff from Wuhan Huali Environmental Technology Co., Ltd. (Wuhan Huali) which is the largest starch-based material producer with capacity of 40,000t/a in China, thought that the above two plans will be helpful to exploit new domestic market and promote starch-based material in the future. Moreover, Mr. Zhang hoped that the Chinese government can release more support policies in addition to the measures of the above plans, such as increasing export tax rebates to strengthen international competitiveness and providing finance subsidy to reduce raw material cost.

Moreover, Mr. Liu, a staff from Tianjin Green Bioscience Co., Ltd.(Tianjin Green)which is the largest PHA (Polyhydroxyalkanoates) company with capacity of 10,000t/a in China, believed that the above plans will increase domestic demand for biomaterials. Meanwhile, he also revealed that Tianjin Green may adjust product structure, expand capacity and make more efforts to cooperate with more domestic downstream companies in the future. Furthermore, Mr. Liu also expected that the Chinese government can provide financial subsidies to reduce the negative effect caused by the increasing RMB appreciation.

Additionally, Mr. Wu, a manager from Nanyang Zhongju Tianguan Low Carbon Technology Co., Ltd. (Nanyang Zhongju Tianguan) which is the largest PPC (Polypropylene-carbonate) company with capacity of 5,000t/a in China, also generally agreed with the above opinions of Mr. Zhang and Mr. Liu. Mr. Wu thinks that the plan can improve competitiveness of biomaterial companies to be better than that of oil-based plastic companies. Meanwhile, Mr. Wu hoped that the Chinese government should make a law to clearly regulate a specific content of biomaterials in related environmental friendly products, in order to guarantee stable demands from domestic biomaterial downstream industries.
Source: Biomaterials China News

Main content of Biomaterials China News:
China to accelerate development of biomaterials
Overview of development of milk protein fiber in China
Worldwide economic downturn affects PTT sales in China
PHA manufacturers to benefit from the ban on plastic in Europe and in America
Chitosan fiber still has a long distance to the industrial production
Suzhou HiPro to expand its bio-polyamide capacity
Wanwei Updated High-tech expands PVA capacity
Nanyang Zhongju Tianguan to expand its PPC resin capacity
Zhejiang Hisun to expand its PLA capacity in 2013
… …
(Guangzhou China, December  15, 2011)

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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