On Sep. 25, 2012, Zibo Qixiang Tengda
Chemical Co., Ltd. (Qixiang Tengda) publishes a notice that it plans to raise
USD316 million (RMB2 billion) by non-public offering shares to step into China
The company tries to offer no more than 120
million shares with price of no less than USD2.212 (RMB14) per share. At
present, the company's holding company—Zibo Qixiang Petrochemical Industry
Group Co., Ltd. (Qixiang Group) will input no less than USD15.8 million (RMB100
million). The company will satisfy the balance between the total investment and
raised fund by self-financing.
Qixiang Tengda will divide the program into
two phases, and construct a whole work flow of PBS including the raw material
succinic acid (SA) and butanediol (BDO).
It will spend one year on the first phase. At
first, Qixiang Tengda will make use of its abundant by-product—butane to
produce maleic anhydride (MA) with capacity of 100,000t/a. MA can be used to
produce SA and BDO. During the first phase, the production facilities of MA and
BDO with capacity of 100,000t/a and 55,000t/a respectively should be completed.
It will spend one and a half years on the
second phase to construct production facilities of MA, BDO and SA with capacity
of 100,000t/a, 55,000t/a and 75,000t/a respectively. At last, it will construct
the PBS facilities with capacity of 150,000t/a.
Qixiang Tengda is entirely optimistic about
the prospects of PBS though its current market is not so good. It thinks that
domestic potential demand for PBS can exceed 500,000 tonnes per year.
Qixiang Tengda thinks that PBS is the most
excellent biodegradable materials in mechanical performance such as tensile
strength, elongation at break, and toughness, and it also has an outstanding
processing property. The biodegradable plastic industry has also been
encouraged by the government. In H2 2007, PBS, PLA and PCL were listed in the
11th Five-Year Plan as products to be encouraged, and in the 12th Five-Year
Plan, their position hasn't changed.
In fact, the current market of PBS is not so
good, and its capacity of 150,000t/a may not be digested. Zhejiang Hangzhou
Xinfu Pharmaceutical Co., Ltd. (Xinfu Pharmaceutical) is also a listed company
that produces PBS for more than 6 years with capacity of 13,000t/a. However,
according to the 2012 semiannual report of Xinfu Pharmaceutical, the sale
volume of this company’s PBS is less than 1,000 tonnes (Please refer to Biomaterial
China News 1209, Xinfu Pharmaceutical remains cautious with PBS business).
Besides, Xinfu Pharmaceutical has operated overseas market for a long period,
and its understanding of the PBS market may be better than Qixiang Tengda. Mr.
Liu, Secretary of the Board of Qixiang Tengda, said that compared to Xinfu
Pharmaceutical, they don't have any special measures to expand market, so it
may be a difficult task to make a breakthrough in sales volume.
Even though, Mr. Liu still insists that the
future of PBS is good, as Qixiang Tengda owns the whole processing chain, and
the cost may be smaller than that of other producers. On the other hand, more
countries start to care about the environment, which will promote the growth of
the industry.
It's no doubt that PBS is a promising
industry, but all commercial production should be led by consume market. As the
growth of the new market is slow, it is estimated that Qixiang Tengda will have
a tough road to expand its market after it finishes the construction.
Main content of Biomaterials China
Domestic
lyocell fiber starts to sprout
Main
barriers for China
New
environmental protection measures help biodegradable materials grow faster
Qixiang
Tengda to raise USD316 million to produce PBS
Longlive
Bio-technology: enzymatic hydrolysis lignin program to replace a corn deep
processing one
Tianrui
Technology received capital support from Anhui Provincial Government
Chemical
enterprises to beach biological succinic acid market
Biological
alcohol business of Global Bio-Chem Technology may be better in H2 2012
Domestic
demands led to increasing import and decreasing export of China
Import
analysis of cassava upon new extracting season in Aug. 2012
Import
volume of China
Wuhan
Boiler manufactures boiler for bio chemical alcohols waste burning
Green
Process and Collaborative Innovation of Chemical Resources Center establishes
Output of
agricultural film increases by 3.72 percentage point in Q1 2012
Potato
production may reduce in 2012 due to potato late blight
Corn
production may suffer decrease due to typhoon
… …
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dynamics, company dynamics, new biomaterials products, new biomaterials
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