Headline News Overview

★ Italy Postpones Implementation of Plastic Tax to 2027 Again: Multiple Considerations Behind Policy Delay

★ Daicel reorganizes Polyplastics to integrate the engineering plastics segment.

★ BASF North signs a memorandum of understanding with LEMON to jointly develop new clothing material solutions.

Trump: Imposing a 100% tariff on China is unsustainable! Hints at not increasing tariffs.

01. Plastics Headline

Italy Delays Plastic Tax Implementation to 2027 Again: Multiple Considerations Behind the Policy Postponement

The Italian government recently announced in the 2026-2028 fiscal budget draft that the implementation of the Plastic Tax, originally scheduled for July 1, 2026, will be postponed again to January 1, 2027. At the same time, the implementation date for the Sugar Tax has also been delayed accordingly. This marks the eighth postponement of the legislation since it was first proposed in 2020.

The affected range of products includes plastic bottles, shopping bags, polyethylene food containers, Tetra Pak packaging, expanded polystyrene (EPS) packaging, and bottle caps. However, packaging made from compostable bioplastics or recycled materials, as well as medical devices and pharmaceutical packaging, will be exempt.

In addition, tax regulations stipulate strict penalty mechanisms: anyone who fails to pay the plastic tax on time will be fined two to five times the amount of the unpaid tax, with a minimum of 250 euros. If there is a delay in payment, an administrative surcharge of 25% will also be imposed, with a minimum of 150 euros.

According to the Tianyancha App, Sinopec Recycling Technology Co., Ltd. has completed its business registration and officially announced its establishment. With a registered capital of 200 million RMB, it is wholly owned by Sinopec Chemical Sales Co., Ltd. This move marks a substantial and crucial step for Sinopec in the layout of the circular economy industry.

The new company is indirectly wholly owned by Sinopec, specifically funded by the Chemical Sales Co., Ltd. This demonstrates the group's strategic intention to leverage its mature market channels and customer resources to quickly penetrate the recycled resources product market.

Nouryon: 6,000 tons/year capacity is about to be established!

On October 15, Nouryon, a global leader in specialty chemicals, held a grand completion ceremony for its organometallic expansion project at its production base in Jiaxing. This expansion has doubled the production capacity of triethylaluminum (TEAL) at the base and simultaneously enhanced the capabilities for blending, filling, and other supporting services. It marks a key step in Nouryon's strategy to deepen its presence in the Chinese market and strengthen its localized supply chain. Company President Dr. Larry Ryan, Senior Vice President of Performance Materials Alan LeWolter, and other senior management team members attended the ceremony and joined media and partners in witnessing this milestone moment.

02. Major Events of the Company

Daicel restructures with Polyplastics to integrate the engineering plastics segment.

On October 16, 2025, Daicel Corporation (hereinafter referred to as Daicel) and its wholly-owned subsidiary, Polyplastics Co., Ltd. (hereinafter referred to as Polyplastics), announced a group corporate restructuring plan, with the core content being the comprehensive integration of Polyplastics' engineering plastics segment. According to officially disclosed information, this restructuring adopts a spin-off acquisition model, with the key timeline set for April 1, 2026. Daicel has made it clear that the core objective of this integration of the engineering plastics segment is to maximize the value of the group enterprise.

Cangzhou Mingzhu: Guangzhou SASAC will become the actual controller of the company.

On October 16, Cangzhou Mingzhu announced that its controlling shareholder Dongsu Group and its concerted parties intend to transfer 167 million shares of the company (accounting for 10.00% of the company's total share capital on the agreement signing date) to Guangzhou Light Industry, and at the same time, entrust the voting rights corresponding to the remaining 160 million shares (accounting for 9.58% of the company's total share capital on the agreement signing date) to Guangzhou Light Industry. If the transfer is completed, Guangzhou Light Industry will become the company's controlling shareholder, and the Guangzhou State-owned Assets Supervision and Administration Commission (SASAC) will become the company's actual controller. Commentary: The introduction of Guangzhou's state-owned capital as the controlling shareholder of Cangzhou Mingzhu represents a typical change of control through state-owned capital entry. This move not only brings funding and resource support to the company but also is expected to leverage the state-owned background to enhance its credibility and market position in the new energy materials sector. For the original controlling shareholders, this is a way to relinquish control while retaining some benefits. In the future, how the new actual controller empowers the business development of Cangzhou Mingzhu will be the focus of market attention.

03. Downstream Industry Trends

BASF and LEMON sign a memorandum of understanding to jointly develop new clothing material solutions.

BASF has signed a memorandum of understanding with LEMON Co., Ltd., in which both parties will collaborate to use BASF's Elastollan thermoplastic polyurethane (TPU) to produce Freeflex fibers, thereby advancing new apparel application solutions. As a leading producer of functional nanomembranes, LEMON plans to use Freeflex in the production of its waterproof and windproof clothing. The memorandum also outlines future opportunities for collaboration in technology development and business expansion.

Guo Shougang from the Ministry of Industry and Information Technology: Research and formulate the 15th Five-Year Plan for the development of the intelligent connected new energy vehicle industry, and regulate enterprise OTA upgrade activities.

On October 17, at the 2025 World Intelligent Connected Vehicles Conference, Guo Shougang, Deputy Director-General and First-Class Inspector of the First Division of Equipment Industry at the Ministry of Industry and Information Technology, stated that the Ministry will study and formulate the "15th Five-Year Plan" for the development of the intelligent connected new energy vehicle industry. Additionally, it will strengthen the supervision and management of production consistency for vehicles equipped with combination driving assistance systems and regulate enterprises' OTA upgrade activities, reinforcing corporate responsibility. The Ministry plans to expedite the introduction of regulations for motor vehicle production access management, improve enterprise exit mechanisms, and ensure a healthy and positive development environment for the industry. It will continuously improve the standards system construction in areas such as driving assistance systems, autonomous driving systems, functional safety, information security, data security, automotive electronics, intelligent cockpits, connected communications, and artificial intelligence.

Mitsubishi Chemical Develops Antithrombotic Elastomer Material

Recently, Mitsubishi Chemical Corporation (MCC) has launched a joint research project aimed at promoting the use of its antithrombotic thermoplastic elastomer, Zelas AMP, in medical devices. Mitsubishi Chemical stated that the core polymer of this material combines two structures: one is a hydrophilic structure that can enhance blood compatibility, and the other is a hydrophobic structure that can improve adhesion to the base resin. When added to materials such as polyvinyl chloride, polyurethane, or engineering plastics, it can endow the materials with antithrombotic properties, low protein adsorption, and reduced bacterial adhesion. Mitsubishi Chemical indicated that the company plans to commercialize the material by 2027 and launch it in the global market.