Lactide and PLA project updates in Q1 2024 03-29-2024

Summary: In Q1, there are lactide and polylactic acid (PLA)-related projects updated progresses, ie. COFCO Biotech's 30,000 t/a lactide project, Jiangxi Keyuan's 200,000 t/a lactic acid and 130,000 t/a PLA project (phase I), and Linyi Xinyuan's 300,000 t/a PLA project; and Shanghai Tongjieliang's 200,000 t/a PLA project is signed to settle in Quanzhou.

In Q1, there have developments in a number of lactide and polylactic acid (PLA)-related projects.


On 12 March, COFCO Biotechnology Co., Ltd. (COFCO Biotech, stock code: 000930.SZ) stated on the investor interaction platform that its subsidiary COFCO Biomaterial (Yushu) Co., Ltd. has completed and installed the main structures and auxiliary equipment according to the project plan for 30,000 t/a lactide, with full sets of imported production equipment to be installed.

Project overview:

  • Construction nature: New construction
  • Location: Wukeshu Economic and Technological Development Zone, Yushu City (county-level), Changchun City, Jilin Province
  • Total investment: USD82.60 million (RMB586.94 million)
  • Site area: 42,657.87 m2
  • Construction content: Based on some existing auxiliary facilities and utilities of COFCO Biomaterial (Yushu), to build a new lactide production workshop and production line, tank farms, warehouses and other facilities
  • Designed capacity: 30,000 t/a of lactide and 2,680 t/a of industrial-grade lactic acid/LA (by-product)
  • Commencement of construction work: Sept. 2022

    On 30 Jan, Jiangxi Keyuan Bio-Material Co., Ltd. (Keyuan) notified to start coordinated trial operation of installed systems of the 200,000 t/a LA and 130,000 t/a PLA project (phase I).

    Overview of the 200,000 t/a LA and 130,000 t/a PLA project:

  • Construction nature: New construction
  • Location: Chemical Fibre Industrial Base of Lianxi District, Jiujiang City, Jiangxi Province
  • Investment: USD419.69 million (RMB2.98 billion), 3.50% (USD14.67 million/RMB104.25 million) of which for environmental protection
  • Designed capacity:
  • Phase I: 100,000 t/a LA, 40,000 t/a PLA (30,000 t/a high-gloss pure PLA + 10,000 t/a low-gloss pure PLA), and 100,000 t/a gypsum plaster
  • Phase II: 100,000 t/a LA, 100,000 t/a high-gloss pure PLA, 100,000 t/a gypsum plaster; this phase will also transform the 30,000 t/a high-gloss pure PLA line (of the phase I) into a 20,000 t/a low-gloss pure PLA line
  • Construction period:
  • Phase I: Construction started in Oct. 2022
  • Phase II: Construction to start in 2024

    On 15 Jan., Linyi Xinyuan New Material Technology Co., Ltd. (Linyi Xinyuan) broke ground for the 300,000 t/a bio-based new material (PLA) project in Linshu Economic Development Zone.

    This project accounts for a budget of USD703.64 million (RMB5 billion) and two-phased construction over an area of 40 ha. The Phase I covers an area of 21 ha and includes 13 production workshops for thermal charcoal regeneration, LA concentration, hydrolysis and recovery, as well as supporting facilities like natural gas cogeneration station and wastewater treatment station; Phase I is designed to produce 30,000 t/a fulvic acid, 150,000 t/a LA, 100,000 t/a PLA, and 150,000 t/a modified PLA from straw via advanced fermentation process, due for completion in 2025 and expected to generate an annual output value exceeding USD422.18 million (RMB3 billion) once in full operation.

    Linyi Xinyuan was founded in Oct. 2023 with a registered capital of RMB35 million.


    On 8 Jan., Shanghai Tong-Jie-Liang Biological Materials Co., Ltd. (Shanghai Tong-Jie-Liang) signed a contract with the local government of Huian County, Quanzhou City, Fujian Province for a 200,000 t/a PLA production project. Shanghai Tong-Jie-Liang have one plant in Anhui operated by Ma'anshan Tong-Jie-Liang Biomaterials Co., Ltd. with one 10,000 t/a PLA line in operation, and one plant in Shandong operated by Shandong Tongbang New Materials Technology Co., Ltd. with one project under construction for 300,000 t/a LA, 200,000 t/a PLA and 100,000 t/a PLA fibre (phase I: 150,000 t/a LA, 100,000 t/a and 50,000 t/a PLA fibre) due for completion in 2024.


    More iinformation can be found at CCM Bio-based Materials China Quarterly Report.

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