In Nov., Ningbo Changhong Polymer Scientific & Technical Inc. (Changhong Polymer) announced a reply on the Feedback of Application Documents for Public Convertible Bonds Issuance from the China Securities Regulatory Commission (CSRC).

In mid-Sept., Changhong Polymer released the Plan for Public Convertible Bonds Issuance to raise funds of ≤USD106.76 million (RMB 680 million) for the secondary investment in the 600,000 t/a fully biodegradable thermoplastic industrialisation project (Phase I).

Details of the project:

• Construction entity: Zhejiang Changhong Biomaterials Co., Ltd. (Changhong Polymer's wholly-owned subsidiary)
• Construction location: Shengzhou City, Shaoxing City, Zhejiang Province
• Total investment: USD237.94 million
• Proposed funds: USD106.76 million
• Design capacity: 180,000 t/a of degradable plastics
• Estimated construction cycle: 9 months
• Project objectives:
• Expand a new biodegradable plastics business segment to optimise the product structure and improve the industrial layout. Changhong Polymer now has a relatively homogeneous business structure, which is based on SBS and focuses on the R&D, production, and sales of styrene-based thermoplastic elastomers (TPES)
• Determine Changhong Polymer's regional development advantages in Zhejiang Province and increase its regional market competitiveness
• Enhance the corporate profitability under scale effects since polybutylene adipate terephthalate (PBAT) biodegradable plastics have considerable profitability
• Raise brand influence in the industry

In late Oct. 2020, Changhong Polymer signed an investment agreement with Shengzhou Municipal People's Government for the fully-biodegradable new materials industrial park project.

Project details:

• Total investment: approximately USD785 million (RMB5 billion)
• Planned land use: 14.20 ha
• Construction cycle: 5 years in 2 phases
• Product scheme: 600,000 t/a of PBAT, PBS, PBT, and other flexible biodegradable material