Dive Brief:
- The largest domestic compounder in China, Kingfa Sci & Tech, has recently established a new plastics recycling business, called Guangdong Kingfa Sci & Tech, reports Plastics News.
- A 455-acre recycling plant is slated for construction on May 18, 2014. The company predicts $4.8 billion in sales by 2018, the head of Kingfa Sci & Tech, Ning Hongtao, told Plastics News.
- The plant is expected to process one million tons of plastics waste, mostly polystyrene, polypropylene and polyethylene. Ning told Plastics News that PET is not a focus at this facility, as the "PET virgin resin market is very volatile."
Dive Insight:
In the interview with Plastics News, Ning touched upon the "Green Fence" implemented by China in 2013: According to Ning, the restructuring of the industry puts Kingfra in a top position, due to its resin technology and company size, to play a significant role in China's recycling transformation.
Customs officials in China have reported a 11% drop in plastics imports since the Green Fence policy was put in place. Changes have made the industry outlook uncertain around the globe, and in the United States, the policy could cost some municipalities in New Jersey as much as a half a million dollars in lost revenues.
