On September 6, 2021, in order to promote the implementation of the "dual carbon" goal, the Ministry of Industry and Information Technology of China formulated the "14th Five-Year Plan for Industrial Green Development", which is expected to be released and implemented as soon as possible. In order to control plastic pollution, the Ministry of Industry and Information Technology will encourage the development of high-end degradable materials, strengthen policy guidance in terms of technological innovation and industrial application, and promote biodegradable plastic companies to carry out technological innovation, technological achievement transformation and product application.
This move has driven the use of biodegradable products by enterprises in major domestic cities such as supermarkets, e-commerce, and tea drinks. The demand for biodegradable plastics has grown rapidly, and the market has entered a stage of rapid growth. In fact, the technical barriers to biodegradable plastics are relatively high. As the market accelerates, companies that can truly achieve innovative breakthroughs can withstand the test of the market.
Kingfa Technology (600143, SH), as one of the active advocates of fully biodegradable plastics in the world, is in the leading camp of global fully biodegradable plastics manufacturers and has reached the international advanced level in technology.Kingfa has a complete grasp of the core technologies of copolyester synthesis, reactive extrusion, alloying modification and terminal applications. The product technology and quality have reached the international advanced level. With the continuous release of production capacity, Kingfa will continue to make greater contributions to the green and sustainable development in the future.
Regardless of whether it is from the perspective of R&D hardware or software, the strength of Kingfa Technology cannot be underestimated. The company adheres to the R&D philosophy of “independent innovation, technology leadership, and product excellence” to create a “13551” R&D system (1 research institute, 3 International R&D center, 5 sub-technical centers, 5 new chemical material incubation bases and 1 national industrial innovation center), gradually form a R&D platform driven by three-wheeled technology research, industry research, and product research. As of the end of June 2021, Kingfa Technology has applied for 3918 domestic and foreign patents, including 2819 invention patents, 546 utility model patents, 12 design patents, 344 PCT patents, and 197 foreign patents. In the first half of this year, Kingfa Technology’s newly-added PBAT synthesis device with an annual output of 60,000 tons was put into operation in time. At the same time, it refined the biodegradable copolyester product structure, enriched product grades, and developed cost-effective biodegradable shopping bags, fruit and vegetable bags, garbage bags, Tableware and other products have enhanced the competitive advantage of copolyester modified products in the domestic and foreign markets.
Through the increase in production capacity and product optimization, Kingfa Technology has achieved remarkable results in the sales of fully biodegradable plastic products in the first half of the year, achieving a sales volume of 44,100 tons, an increase of 40.32% year-on-year. As of the first half of 2021, Kingfa Technology already has 120,000 tons of PBAT production capacity. In the fourth quarter of 2021, the company's newly added 30,000 tons of PLA production capacity will also be put into production smoothly. In addition, Kingfa Technology will closely follow the trend of domestic policy changes and market demand to promote the construction and commissioning of the subsequent 180,000 tons of PBAT device in a timely manner. In fact, the development of degradable plastics from R&D to energy production requires long-term technological cultivation and breakthroughs by enterprises, and ultimately requires continuous market testing.
Kingfa Technology will do technical research and breakthroughs down-to-earth, and actively invest in production capacity construction, truly transform core technological achievements into products that have outstanding contributions to the treatment of white pollution, and help the green and sustainable development of the society in China and the world.
Source：National Business Daily，2021
