China's largest compounder shaking up the recycling industry

By Nina Ying Sun
Assistant Managing Editor

Published: May 19, 2014 12:31 pm ET
Updated: May 19, 2014 12:34 pm ET

Image By: Nina Ying Sun Ning Hongtao, head of Kingfa Sci & tech Co. Ltd.'s recycling unit in Guangdong,

Related to this story

Topics Sustainability, Materials, Recycling, Materials Suppliers, China

SHANGHAI — If the Green Fence campaign has put China’s highly fragmented plastics recycling industry at crossroads, Kingfa Sci. & Tech. Co. Ltd. hopes to take it to a new direction. The Guangzhou-based firm, by far the largest domestic compounder, has set an aggressive goal for its newly formed recycling business — 30 billion yuan ($4.8 billion) in sales by 2018 or nearly a third of Kingfa’s overall sales, said Ning Hongtao, head of Kingfa’s new recycling unit.

In a strategic move to enter the recycling business, Kingfa established a subsidiary — Guangdong Kingfa Sci. & Tech. Co. Ltd. — in Qingyuan, Guangdong province, at the end of last year to build a greenfield, massive, 455-acre recycling industrial park.

Phase one — 30 acres — which expected to start production on May 18, with 50,000 metric tons annual capacity, said Ning, general manager of Guangdong Kingfa. The recycled plastics will primarily consist of polystyrene, polypropylene and polyethylene.

“PET is not our focus, because the PET virgin resin market is very volatile,” he added. “The price can take a huge fall while the shipment is still on the way.”

About 60 percent of the plastic waste going into the Qingyuan facility will be sourced from overseas.

Kingfa will finalize its long-term planning of the Qingyuan project by the end of next month, Ning said during an interview with Plastics News at Chinaplas. Previous reports said the recycling park will draw 3.8 billion yuan ($610 million) of investments and will eventually be able to process 1 million tons of plastics waste and yield 1 million tons of compounds per annum.

Ning described the current state of China’s plastics recycling industry as “low-tech, small-scale, fragmented and disorderly.” Thousands of small mom and pop shops engage in basic sorting and washing without proper environmental protection measures, he said, causing pollution and public health hazards.

“That’s why the government is pushing for zone management. These new recycling parks will ensure the recyclers are equipped with technology, management skills, and environmental protection,” he said.

China’s Green Fence campaign in 2013 has triggered the recycling industry’s re-regulation and reshuffling, Ning noted. He believes Kingfa’s leading position in resin technology and business scale makes it a perfect candidate for taking a significant role in the industry’s transformation.

Kingfa also has 300,000 tons of compounding capacity for recycled plastics in Guangzhou, Shanghai and Tianjin, supplying major brand owners in the electronics and auto industries, among others.

Ning also serves as president of the plastics recycling committee of China Plastics Processing Industry Association.


Comments

China's largest compounder shaking up the recycling industry

By Nina Ying Sun
Assistant Managing Editor

Published: May 19, 2014 12:31 pm ET
Updated: May 19, 2014 12:34 pm ET

Post Your Comments


Back to story


More stories

Image

Recycling trade group growing in size, resources

February 27, 2015 4:50 pm ET

DALLAS — The executive director of the Association of Postconsumer Plastic Recyclers is partial to calling his group the little engine that...    More

Image

Experts explain why resin sales are down in a healthy US economy

February 27, 2015 1:58 pm ET

The economies of the U.S. and Canada posted solid growth in 2014 — even though resin demand in those countries lagged behind.    More

Image

Industry vet Dwight Morgan joins M. Holland

February 27, 2015 1:55 pm ET

Resin distribution leader M. Holland Co. has hired industry veteran Dwight Morgan as its vice president of corporate development.    More

Image

Indian masterbatch makers growing locally and thinking globally

February 27, 2015 1:30 pm ET

GANDHINAGAR, INDIA — India’s masterbatch makers are expanding their domestic capacity to meet growing demand, as some are also moving...    More

Image

Silicone baby teether company working with Massachusetts recycler

February 26, 2015 1:14 pm ET

A recycling company and a startup will try to keep silicone baby products out of landfill.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events