1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

This project fully leverages the advantages of corn resources and labor resources in Jilin Province, transforming these resources into economic advantages. The target product is an innovative and environmentally friendly polymer material that has characteristics such as renewability, biodegradability, excellent thermal stability, mechanical properties, and chemical stability. These advantages make the product highly competitive in the application market, demand growth, as well as in terms of price and performance. The project adopts cutting-edge production technology and equipment, with a moderate and reasonable construction scale and reserved expansion space. The investment environment in the project location is superior, with guaranteed supply of water, electricity, and raw materials. Furthermore, this project not only has significant economic benefits, but also has outstanding performance in terms of social and environmental benefits.

1.1.2 Market prospect

(1) Current market situation

Biobased polyamide new materials are an emerging and environmentally friendly polymer material that has gradually gained widespread attention due to its renewable and biodegradable properties. In recent years, with the increasing global awareness of environmental protection and the promotion of sustainable development concepts, biobased polyamide new materials have achieved rapid development. It is expected that in the future, biobased polyamide new materials will gradually replace some traditional petroleum-based polyamide materials. Therefore, biobased new materials have become a highly promising direction for material development with its unique advantages such as environmental friendliness, sustainability, and biodegradability.

The application fields of biobased materials are very extensive, covering multiple areas such as medical devices, tissue engineering, drug delivery, oral medicine, food packaging, and agricultural protection. Especially in the field of medical devices, the application of biobased materials such as heart stents, artificial joints, and artificial heart valves is becoming increasingly popular. This widespread application demand has opened up enormous market potential for biobased material projects. According to data, China’s production of biobased materials reached 1.894 million tons in 2023, with a year-on-year increase of 28.5%; The sales volume was 1.524 million tons, with a year-on-year increase of 17.2%. In 2023, the market size of China’s biobased materials industry reached 21.123 billion yuan, with a year-on-year increase of 16.1%.

From a policy perspective, governments around the world are also actively promoting the development of biobased materials. The government has created a favorable policy environment for the development of the biobased materials industry by implementing fiscal and tax incentives, increasing investment, formulating relevant regulations, and promoting the application of biobased materials. In 2022, the national 14^th Five-Year Plan for the Development of Bioeconomy clearly stated that “Bioenergy should be steadily developed, with a focus on developing biobased materials to replace traditional chemical raw materials and biotechnology to replace traditional chemical processes. The technology system for biomass recycling should be built around biobased materials, new fermentation products, biomass energy, and other directions, and evaluation standards and labeling systems for biobased degradable materials should be improved to expand market application space In 2023, the national Three Year Action Plan for Accelerating the Innovation and Development of Non-grain Biobased Materials proposed that “By 2025, the non-grain biobased materials industry will have basically formed an innovative development ecology with strong independent innovation capabilities, continuously enriched product systems, and green, circular, and low-carbon development. The utilization and application technology of non-grain biomass raw materials will be basically mature, and the competitiveness of some non-grain biobased products will be comparable to petroleum-based products. A high-quality and sustainable supply and consumption system will be initially established. The introduction and implementation of these plans, schemes, and policies not only provide strong support for the biobased materials project, but also lay a solid foundation for its long-term development.

From the perspective of market demand, the demand for biobased materials is also gradually rising with the increasing awareness of sustainable development and environmental protection among people. For example, biobased biodegradable packaging materials are gradually becoming a popular choice in the market due to their excellent preservation performance and environmental characteristics. This change in market demand has brought broad market prospects for biobased material projects.

(2) Market prospect

With the increasing depletion of fossil fuels and the deepening of the concept of sustainable development, the development and application of eco-friendly biomass raw materials are becoming a hot topic in the research field. For example, these biobased monomers are then polymerized to produce polyamide, known as biobased polyamide using biotechnology to convert food or non-food biomass into biobased monomers. The raw materials of biobased polyamide are widely available, opening up a new path for the green, environmentally friendly, and sustainable production of polyamide products.

The market demand for biobased polyamide new materials continues to grow, mainly driven by environmental protection and sustainability needs.

The main driving factors for market demand growth include:

Environmental protection and sustainability requirements: Biobased polyamide (PA) is made from biomass raw materials and has low carbon emissions, which helps to reduce the concentration of carbon dioxide in the atmosphere and meet environmental standards. With the increasing global emphasis on environmental protection and sustainable development, the demand for biobased PA continues to rise.

High performance application requirements: Biobased PA performs well in fields such as automotive, marine, and electronics industries. It has the characteristics of lightweight, good flexibility, strong heat resistance, and chemical resistance, making it very suitable for high-performance applications.

Policy support: Globally, the research and application of biobased materials have received policy support, such as the bioeconomy plans of the United States and the EU.

Specific application areas of market demand:

Textile industry: The application of biobased PA in the textile industry is steadily increasing, thanks to its continuous improvement in sustainability.

The automotive industry: The application of biobased PA in automotive components is increasing, which helps to reduce the total weight of vehicles and lower fuel consumption.

Sports equipment and automotive interiors: The application of biobased PA fibers in sports equipment and automotive interiors has also significantly increased.

Market size and forecast:

The global biobased polyamide market continues to expand in size. In 2024, the global market size of biobased polyamides reached US$ 330 million, and it is expected to grow at a compound annual growth rate of 6.2% by 2029. Furthermore, the global market size of biobased polyamide fibers is expected to reach 810 million yuan by 2030, with an average annual compound growth rate of 7.7% over the next six years.

Future development trends and potential growth points:

Technological innovation: The R&D of biobased PA is constantly advancing, involving the development of biobased materials, optimization of fiber properties, and environmental protection of production processes.

Market expansion: With the increasing awareness of environmental protection, the application of biobased PA in textile, automotive, sports equipment and other fields will further expand.

Policy support: Policy support from governments around the world for biobased materials will drive market development.

In summary, the market demand for biobased polyamide new materials continues to grow, mainly driven by environmental protection and sustainability needs, and has shown broad application prospects in multiple fields.

As a key county and city for national black soil protection, Fuyu City has been committed to building a corn industry cluster since the beginning of the 14^th Five-Year Plan, taking the creation of the “Agricultural Capital of China” as an opportunity. By 2025, it is planned to stabilize the corn planting area at 3 million mu and the yield at 2.4 million tons. Fuyu City will consolidate, enhance, and expand the city’s primary and deep processing industries, and actively guide corn deep processing enterprises to gather in the Fuyu Industrial Park. The abundant resources of biobased raw materials such as corn starch sugar in the local area provide unique conditions for the construction of a biobased polyamide new material project with an annual output of 200,000 tons. The target product also meets the current social demand for low-carbon, renewable and environmentally friendly materials. Competitive biobased polyamide new materials are produced by combining biotechnology with environmentally friendly manufacturing processes.

1.1.3 Technical analysis

This project is expected to be produced using sugar synthesis method.

Sugar contains a 3D structure and multiple functional groups, which can not only synthesize polymers with special properties, but also serve as one of the raw materials for the synthesis of biobased polyamides.

Derivatives of sugars can be directly condensed with diamines to obtain biobased polyamides with different properties, such as d-saccharic acid and galactaric acid; Fructose or glucose is dehydrated and oxidized to synthesize 2,5-furandicarboxylic acid, which is then condensed with linear diamines, alicyclic diamine, or aromatic diamine to produce biobased polyamides. Under different condensation conditions, biobased polyamides with a molecular weight range of 4,300-7,000 were prepared by reacting 2,5-furandicarboxylic acid with different diamine monomers. Polyamide 8F was synthesized by copolymerization of dimethyl Furan-2,5-dicarboxylate and octyl diamine under enzyme catalyzed conditions.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The 14^th Five-Year Plan for the Development of Raw Material Industry emphasized the fundamental role of the raw material industry in the national economy and proposed the goal of promoting the development of biobased materials. Polyamide PA66, as an important industrial raw material, is listed as a key development target.

Implementation Plan for Innovative Development of the Fine Chemical Industry (2024-2027): This plan is jointly released by 9 departments including the Ministry of Industry and Information Technology, emphasizing the development of biobased materials, including biobased polyamides, aiming to form an effective supplement to existing fossil-based materials.

(2) Industrial advantages

Fuyu has abundant resources. Fuyu City is located in the world’s golden corn belt and is one of the top five grain producing counties (cities) in China. The corn production in Fuyu City is not only abundant, but also of excellent quality, with an annual output stable at over hundreds of millions of kg. This is due to the unique natural conditions and advanced agricultural technology in the region. Fuyu City has a vast area of arable land, fertile soil, abundant sunshine, and suitable precipitation, which is very suitable for the growth of corn. Furthermore, local farmers and agricultural enterprises adopt modern planting and management methods to ensure high yield and High- quality of corn. Therefore, the corn in Fuyu City only meets the local processing needs, but also be sold in large quantities to domestic and foreign markets, providing solid raw material support for related industries. Fuyu City is an ideal investment and project development site.

(3) Location advantages

Fuyu City is located in the Songnen Plain, in the north of Jilin Province and the northeast of Songyuan City, and on the wash plain of the Nenjiang River and Songhua River. Fuyu City is adjacent to Dehui City, Nong’an County, and Qian Gorlos Mongol Autonomous County across the Songhua River to the south and west. It faces Zhaoyuan County in Heilongjiang Province across the Songhua River to the north, faces Shuangcheng District in Heilongjiang Province across the Lalin River to the northeast, borders Yushu City across Huitanggou to the east, and connects with Ningjiang District in Songyuan City to the west.

Fuyu City has convenient transportation with multiple railways and highways. Three railways, including the Beijing-Harbin Railway, Harbin-Dalian High-speed Railway, and Songhuajiang-Taolaizhao Railway, pass through the territory; Four national and provincial highways, including the Beijing-Harbin Expressway, the Wuchang-Horqin Right Middle Banner Expressway under planning and construction, National Highway 102, and the Tieli-Horqin Right Middle Banner Expressway, run through the entire territory; Water transportation can reach Jilin City in the upstream and connect with Harbin City and Russia in the downstream.‌

(4) Talent advantages

Songyuan City has established 11 industrial colleges, scientific research internship and training bases, and doctoral workstations to support rural revitalization with 7 provincial universities including Jilin University and Jilin University of Finance and Economics. These collaborations have attracted a large number of high-level talents and college graduates to come to Songyuan for scientific research, study, work, and life. They have established a “Talent Home · Project Special Class” and connected 126 industrial projects and 83 talent projects. Through the integration platform of industry and talent, they have attracted a large number of high-level talents to provide sufficient talent support for the projects.

In terms of human resources, Fuyu City has a large number of agricultural and industrial technical talents, as well as a sound education system, which can provide sufficient technical support and talent reserves for the projects Meanwhile, Fuyu Municipal Government actively promotes various preferential policies, encourages and supports the development of enterprises, and creates a favorable investment environment for investors.

1.2 Contents and scale of project construction

Covering an area of 50,000 ㎡ The newly constructed building covers an area of 28,350 ㎡ and has a building area of 33,750 ㎡. Two new production lines with an annual output of 100,000 tons of biobased polyamide have been built, along with supporting facilities such as substations, heat exchange stations, water supply and fire pump rooms, sewage treatment stations, circulating water tanks, and fire water tanks.

1.3 Total investment of the project and capital raising

The total investment of the project is 1,000 million yuan, including the construction investment of 795 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 975.19 million yuan, its profit will be 232.55 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 1 year) and its return on investment will be 23%.

Note: “10 thousand yuan” in the table is in RMB

1.4.2 Social evaluation

Environmental benefits: The main raw materials for biobased polyamide materials come from renewable biomass, such as biobased lactams, biobased dicarboxylic acids, biobased diamines, etc. These raw materials are derived from plant-based materials and have the characteristics of being green and environmentally friendly. Compared with traditional petroleum-based polyamides, biobased polyamides have lower carbon emissions during production and use, which helps reduce environmental pollution and meets the requirements of sustainable development.

Economic benefits: Biobased polyamide materials have a wide range of applications, including textiles, electronics, automobiles, engineering materials, etc., and can replace some traditional petroleum-based polyamide materials. With the advancement of technology and the expansion of the market, the demand for biobased polyamides continues to grow, driving the development of related industries, creating new job opportunities, and driving economic growth.

Technological innovation: The research and application of biobased polyamide materials have promoted the progress of materials science and biotechnology. Enterprises are constantly exploring more efficient and environmentally friendly production methods, which have improved the performance and durability of their products. For example, enhancing the performance and durability of fibers through nanotechnology, strengthening interaction and education with consumers through digital channels, and promoting further market penetration.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation.

1.6 What to be invested by the foreign party

Funds, other ways can be discussed in person.

1.7 Construction site of the project

Fuyu Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of unit

Name: Fuyu Municipal Bureau of Commerce

Address: No. 789, Chunhua Road, Fuyu City　

2.2 Overview of unit

Fuyu City is located in the northwest of Jilin Province and the east of Songyuan City. It has jurisdiction over 12 towns, 5 townships, 5 street offices, 1 state-owned farm, 2 irrigation areas, 2 provincial industrial concentration zones, 2 municipal level industrial parks, and 1 agricultural and livestock product processing and logistics park. It covers an area of 4,658 k㎡ and has a total of 383 administrative villages. In recent years, with the goal of enriching the people and strengthening the city, Fuyu has accelerated the implementation of the development strategy of “expanding the new industrial city, strengthening the modern agricultural city, building a regional medium-sized city, and creating a new cultural and tourism city”, striving to create a new situation for economic and social development.

Fuyu has a profound cultural heritage, with many national and provincial leaders coming from Fuyu. There are also a large number of Fuyu natives active in the cultural and entertainment industries. Cultural relics include the Victory Stele of the Great Jin Dynasty, Wanshan Stone Bridge, Shitouchengzi Site, Xiao Zhenying’s Former Residence, Ciyun Temple, etc. Fuyu has convenient transportation. Fuyu is a nodal city connecting Jilin and Heilongjiang provinces, located 92 km from Harbin city center and 130 km from Taiping International Airport; 123 km away from Changchun city center and 165 km away from Longjia Airport. Three railways, including the Beijing-Harbin Electrified Railway, Harbin-Dalian High-speed Railway Passenger Dedicated Line, and Songyuan-Taolaizhao Railway, pass through the territory. Three national and provincial main roads, including the Tongjiang-Sanya Expressway, 102 National Highway, and Ketei-Tiechang Highway, run through the entire area, surrounded by rivers such as the main stream of the Songhua River, its tributaries, and the Lalin River on three sides. Water transportation can reach Jilin City in the upstream and connect with Harbin City and Russia in the downstream.   

Fuyu has abundant resources. Firstly, food resources. Fuyu City is located in the world’s golden corn belt and is one of the top five grain producing counties (cities) in China. In 1988, it was awarded the title of “National Grain-Production First County” and has been continuously awarded the title of National Advanced County in Grain Production for many years. By now, a planting base dominated by corn, rice, peanuts, soybeans, and miscellaneous grains has been formed. Fuyu’s specialty green agricultural products such as “Silihong” peanut and “Zengshengyong” millet are well-known both inside and outside the province. It has 340,000 hectares of arable land and a stable grain output of around 3.3 million tons. Secondly, livestock resources. Fuyu City has 20,000 hectares of grassland and 3 million tons of straw. There are 240 breeding farms and residential areas with an annual output of over 500 live pigs. A good breeding foundation and abundant forage resources provide a solid foundation for the vigorous development of animal husbandry and animal husbandry processing industry. Yurun Group, Zhengbang Group, Wellhope Foods, etc. have invested in building factories. Thirdly, mineral resources. The underground resources in Fuyu mainly include oil, shale oil and natural gas, as well as mineral resources such as glass sand and fireclay. At present, the proven oil reserves are 100 million tons, and the recoverable reserves are over 80 million tons. The reserves of shale oil are considerable, with a total reserve of 45.2 billion tons, where 24.2 billion tons have mining value, and 2.617 billion tons of extractable shale oil. If the mining recovery rate is estimated at 75% and the recovery rate (dry distillation method) is estimated at 80%, 841 million tons of extractable shale oil, about 4.6 billion barrels, which is about 1.5 times the remaining recoverable reserves of Daqing Oilfield and about 5.3 times the remaining recoverable reserves of the province’s petroleum. It provides broad development space for the development of petrochemical and supporting industries. Fourthly, water resources. The total length of the main streams of Songhua River and Lalin River flowing through Fuyu City is 262 km. The annual average inflow of water is 404 millionm³, with 2 large tributaries and 14 large lakes within the territory, with a total water surface of 243 k㎡. Fifthly, wind energy resources. Fuyu is located on the southwest airflow channel between the Great Khingan Mountains and the Changchun-Baicheng Railway Mountains. The terrain is flat, the annual effective power generation time is 2,234 hours, the wind power density/㎡ is 304 W, and the wind farm can be developed for 500 k㎡. The wind energy is relatively abundant, with great development prospects.   

The industrial system of Fuyu has initially taken shape. Firstly, the agricultural and livestock product processing industry. The abundant agricultural and livestock product resources in Fuyu have promoted the rapid development of the agricultural and livestock product processing industry. The Yurun Group’s Million Pig Slaughtering and Processing Project, Zhengbang Group’s Integrated Breeding and Processing Project, Wellhope Foods Group’s Breeding and Feed Processing Project, Dongrui Food Processing Project, Longhua Food Peanut Processing Project, etc. have driven the development of the entire industry. The key direction for the future industrial development of Fuyu is to utilize peanut resources to construct oil processing, beverage production, and food processing projects, and to deeply develop the deep processing industry of agricultural and livestock products by utilizing miscellaneous grains, beans, and livestock resources. Secondly, the building materials industry. Jidong Cement, Northern Cement, Jilin Forest Industry Group, Penghong Wood Industry, Penghong Flooring, Aoliwei Building Materials, Hongyuan Solid Wood, Xinlongyi Doors and Windows, Dongyuan Aluminum, Liuhuan Cement Products, Leitai Cement Products, Longyu Cement Products, and Gongpengzi Industrial Concentration Zone Wood Processing Project Group have built a strong building materials industry. Relying on industrial clusters, they have developed and constructed new energy-saving and environmentally friendly building materials, energy-saving composite doors and windows, panel furniture, solid wood furniture, new pipe manufacturing and other projects, extending the industrial chain and having great potential. Thirdly, manufacturing industry. The manufacturing industry in Fuyu has developed rapidly and has formed advantageous industries such as fertilizer manufacturing, automotive parts manufacturing, and glass manufacturing. Stanley, Yonfer, CNSG ANHUI HONG SIFANG and other fertilizer companies have successively started construction. After being put into operation, Fuyu will become the largest fertilizer manufacturing base in Northeast China. Led by Shengbao Glass and Hezhong Glass, Fuyu has become one of the important glass manufacturing bases in Northeast China. Furthermore, Fuyu’s unique transportation location advantage is closely related to large enterprises such as FAW Group, Jilin Oilfield, and Daqing Oilfield, and the construction of automotive parts and oilfield supporting projects has a promising future. Fourthly, the new energy industry. The new energy projects in Fuyu have become new economic growth points. Projects such as Changchun Zhongcheng Oil Shale Development Project, CECEP Green Carbon Environmental Protection Company Organic Waste Comprehensive Utilization Project, Guangdong Changqing Group Straw Comprehensive Utilization Project, Shuntai Biomass Cogeneration Project, and Shanghai Chengrui Wind Power Generation have gradually established the direction of Fuyu’s new energy industry development. Fifthly, the service industry. Fuyu has always been a major commodity distribution center in Jilin and Heilongjiang provinces, with active commercial logistics. The Fuyu Commercial and Trade City built by China Supply and Marketing Group is bustling with transactions, and the Sanjingzi Wholesale Market for Miscellaneous Grains and Beans has become the largest professional wholesale market for miscellaneous grains and beans in Northeast China. The Sanjingzi Agricultural and Livestock Products Processing and Logistics Park has been approved. Relying on its superior location and transportation advantages, Fuyu has planned a large-scale warehousing and logistics turnover center to directly provide warehousing and logistics services to Harbin City. Sixthly, the tourism industry. The tourism industry in Fuyu is thriving, and the Dajinbei Wetland Park, Zhu’er Mountain Scenic Area, Ciyun Temple, Yuantong Temple, and Jiangshan Tourist Resort have become famous tourist attractions in our province. The Dajinbei Wetland Tourist Area has completed its overall planning, with a total planned area of 414 hectares, including 234 hectares of water area and 180 hectares of land area.

Fuyu Economic Development Zone, formerly known as Fuyu Industrial Concentration Zone, Fuyu Gongpengzi Industrial Concentration Zone, Taolaizhao Industrial Park, and Caijiagou Industrial Park, was officially integrated and promoted to Jilin Fuyu Economic Development Zone on March 27, 2020. The development zone is located in Fuyu, Songyuan City, Jilin Province, with a planned total area of 14.78 square kilometers, including the following parts:

Fuyu Industrial Concentration Zone: covering an area of 5.67 k㎡, with the 503 National Highway as the center, south to the edge of the built-up area of Fuyu City, north to the 200-500 m north to northern ring road, east to the boundary between Laodangpu Village and Yaoliu Village in Sanchahe Town, and west to 1,800 m west of the Harbin-Dalian High-speed Railway.

Fuyu Gongpengzi Industrial Concentration Zone: Covering an area of 1.38 k㎡, including two plots. The eastern plot is centered around 503 National Highway, extending west to the edge of the built-up area of Gongpengzi Town, south to 200-350 m south of 503 National Highway, and north to 300-420 m north of 503 National Highway; The western plot extends eastward to 143 County Road, southward to 570 m south of 301 Provincial Road, westward to 200-480 m west of 143 County Road, and northward to 1,400 m north of 301 Provincial Road.

Taolaizhao Industrial Park: Covering an area of 6.73 k㎡, it extends from Taolaizhao Town exit of Tongjiang-Sanya Expressway in the west, to 102 National Highway in the east, to Yushu-Taolaizhao Railway in the north, and 650-1800 m south of Yushu-Taolaizhao Railway in the south.

Caijiagou Industrial Park: Covering an area of 1 k㎡, it extends from 600 m east of the Beijing- Harbin Railway in the west, to Huitanggou in the east, to 1,200 m north of No. 1 Jidong Road in the north, and to No.1 Jidong Road in the south.

2.3 Contact method

Contact person of the city (prefecture) where the project is located:

Contact unit: Songyuan Municipal Commerce Bureau Investment Attraction Service Center

Contact person: Yu Lili

Tel: +86-18004388787