Sinopec, PetroChina, and Wanhua Chemical Enter the Market as Dow Exits

[DT New Materials] has learned that on August 12, the green circular packaging company Shanghai Leju Technology Co., Ltd. announced the completion of its B++ round of financing, exclusively invested by Kunlun Capital, a subsidiary of China National Petroleum Corporation. Previously, the company had received investments from institutions such as China Petrochemical Corporation, Wanhua Chemical, Jingbo Petrochemical, and Hillhouse Capital.

According to the information, Leju Technology was established in 2018.It is the leading enterprise in the field of shared and reusable packaging for chemical products in China.The company is deeply engaged in three main business sectors: recycling and regeneration, circular logistics, and smart equipment. The funds from this financing round will be primarily used to expand the scale of smart circular packaging assets, strengthen the research and large-scale application of circular materials, and increase investment in AI, focusing on the development of sensing technology, constructing industrial unmanned vehicles and logistics automation solutions, and supporting intelligent equipment robots.

In addition, on August 11,IKEAParent companyIngka GroupIt also announced that it has invested in a Chinese plastic packaging waste recycling company.Shanghai Ruimo Environmental Protection New Materials Co., Ltd.(Ruimo Environmental) made a growth investment, marking the group's first investment in a Chinese company in the circular economy sector.The company's investment department has announced that it will add $1 billion in investments in the future, with a focus on recycling technology and companies supplying recycled materials.

Sustainable Recycling Path of Ruimo Environmental Takeaway Boxes

Source: Ruimo Environmental

The circular recycling economy, exemplified by plastic recycling, has become a global consensus.The European Union, the United States, Japan, and ChinaThe "14th Five-Year Plan" has set clear targets for the proportion of recycled materials used in plastic packaging, with multiple countries requiring the proportion to reach 30% by 2030. Meanwhile, large consumer goods companies such as IKEA have set goals to purchase only renewable or recycled materials by 2030. Brands like Coca-Cola and Nike have also announced targets for using 25%-50% recycled materials.

In China, in October last year, the State-owned Assets Supervision and Administration Commission of the State Council, on behalf of the State Council, performed the duties of the contributor.The registered capital is 10 billion yuan.China Recycling Resources Corporation has already demonstrated the top-level importance and inevitable future of this track, thus attracting many major companies to enter rapidly.

In Japan, polymer recycling has already become one of the transformation choices for major Japanese chemical companies.

In Europe,Not to mention, it has always been at the forefront of the world. However, on August 6th,Dow CompanyA spokesperson informed the globally renowned data service provider S&P Global Platts via email that Dow has already translated the above content into English. The construction plan for the facility in Böhlen, Germany, which will chemically recycle 120,000 tons of mixed plastic waste annually.。

Why is this so?

Due to structural challenges in the European market, the company has decided to permanently close the steam cracker in Böhlen, Germany by 2027 (565,000 tons per year of ethylene, 310,000 tons per year of propylene). The chemical recycling plant was originally designed to support the overall facility by providing recycled naphtha, using Mura's Hydro-PRT technology (supercritical water pyrolysis). With the closure of the steam cracker, the feedstock for the chemical recycling plant loses its purpose. However, Dow claims it will continue to explore other collaboration opportunities with Mura in Europe.

It turns out it was not intentional.

On the contrary, as a chemical industry giant, Dow Chemical has also been an early adopter in the field of chemical recycling. Since 2010, it has been developing chemical recycling technologies, focusing on three main technologies: pyrolysis, dissolution, and depolymerization. Among these, pyrolysis technology stands out as Dow's core technology, developed in collaboration with Mura as HydroPRS™ (Hydrothermal Plastic Recycling Solution). This technology uses supercritical water as a "molecular scissor" to decompose plastics into original monomers or oils within 25 minutes, achieving efficiency far beyond traditional pyrolysis.

Major chemical material giants worldwide are all making efforts in plastic recycling. The circular economy, which first gained traction in Europe, is gradually becoming popular in the Asia-Pacific region. In the future, more green capital might enter China. Will Chinese enterprises take over the mantle of the circular economy from Europe?