With Plastic Bags and Plates, China Tries to Cure its Corn Hangover

Posted by sere on December 4th, 2019

China plans to get rid of corn stocks by using large amounts of corn as raw materials for the emerging biodegradable plastic industry, which could change the rules of the game belts for Changchun Shengda biological materials and other private factories of Chinese corn.

After buying corn for many years to support farmers, Beijing must find a way to address such a large corn reserve to meet China's food needs.

More than 4 billion people a year. The government believes that the treatment of long-term headache may be to promote the country's poly-C Ester (PLA).

Make corn starch and cassava into biodegradable plastic products such as bags and plates.

China's National Grain Administration announced the strategy within five years.

The annual policy document at the end of December, which also includes the promotion of increased ethanol production and the use of grains as livestock feed. The Commission did not elaborate on how the plan would be implemented, which has the potential to raise corn prices at a time of global oversupply. Nevertheless, this policy marks a major shift in the government and its food.

Secure fixed, which makes it unwilling to promote non. In a country that experienced three years of famine in 1958, the use of food61. This also shows how the corn Mountain. A market soaked in the American car marketS. crops. Forcing policy makers into new areas. If successful, a national industry would help reduce corn stocks, which was established after the government bought corn from farmers over the past decade to support income and ensure that the growing urban population had access to food. In the long run, it could disrupt the niche global market for biodegradable plastics, challenging veteran PLA players like NatureWorks LLC, a joint venture with Cargill. CARG. And PTT Global Chemical products sold to China. China can also export PLA products.

According to China's research and intelligence in Shanghai, by 2020, the global total output of the People's Liberation Army products is expected to rise from 800,000 tons in 2012 to 200,000 tons. Half of them will be in Asia. However, some experts questioned whether concern about whether polyc Ester was the answer to China's corn dilemma, saying it would take too long, with too much cash, and still not using enough corn to reduce inventory. Jilin, second in the country.The largest corn planting province is providing a blueprint for the formation of the policy. To revitalize the economy, the province has been working to build and fund a new industry. Invest in public funds to attract eight companies to produce PLA products such as plastic bagsand plates. Changchun Shengda, a subordinate unit of private Huasheng material technology group, is one of them. Its experience provides insight into the challenges faced by small private companies. The company set up stores in the provincial capital of Jilin province in 2014, under the temptation of free rent and other benefits in three new industrial parks, including 33 million yuan (. 80 million)in subsidies. The original benefits are now due. Changchun ShengDa has to move to a smaller factory in the same garden area. The rent for a year is about 820,000 yuan. In the case of limited demand for products, production costs have increased, and Changchun Shengda is now reducing costs to survive.

Zhang Guangjun, general manager of Changchun Shengda company, said the company purchased PLA raw materials from NatureWorks. He believes that the new initiative of the Grain Bureau to create the National People's Liberation Army industry can provide a lifeline by reducing the cost of raw materials. Domestic production of raw materials from the People's Liberation Army will help reduce reliance on higher-cost imported products. We still have to play by our ears.

Without the support of the policy, the industry cannot develop . China will not build the PLA from scratch, although.

COFCO Holdings and Anhui Hengxing joint venture, is expected to build an annual output of 10,000 tons of polymerization device by the end of this year. Qian Houxiang, general manager of Jilin COFCO Biological Materials Co. , Ltd. , said that by the end of 2018 this may be expanded to 200,000 tons per year. It takes about three tons of corn to produce a ton of PLA. According to the current capabilities of the People's Liberation Army, this means that it will take nearly 400 to solve the problem of corn stocks. Making plastic from corn is like putting out a car of firewood with a glass of water, said Feng Lichen, president of Yumi. Corn industry website located in Dalian city, Liaoning province. According to some estimates, after abandoning the corn safety policy in 2016, the government sold some old stocks, but there are still more than 0. 2 billion tons in the warehouse. It is of poor quality and is not suitable for human consumption. Removing this excess from the inflated global market could increase demand for corn outside China and push prices higher. However, this is partly to assume the success of China's new bio-skim plastic industry. At 40-50 cents per bag, twice the price of regular plastic bags, is a challenge for supermarkets to use biodegradable plastic bags. Outside major cities, public awareness of environmental damage caused by the production of ordinary plastic bags is limited. Experts say Jilin, which banned the production and use of plastic bags in 2014, has pioneered models that other regions have followed. Industry insiders say other local governments in the corn belt from Jiangsu to Hainan are considering following suit. The domestic market for biodegradable plastics may eventually reach 2-COFCO's Money said that if ordinary plastic is banned in Beijing, it will reach 3 million tons a year. He said that some COFCO products have been certified for sale in the United States and Europe, giving the company the potential to export. Oil-Based on the product has a history of more than a century, but the People's Liberation Army has only about 20 years. There is still a lot of work to be done.