China launches advanced plastics cracking plant

China’s first large-scale industrial facility for the chemical recycling of mixed plastic waste has started trial production in Jieyang, Guangdong province.

The new plant can process over 200 000 tonnes per year using a proprietary one-step deep catalytic cracking technology developed by Guangdong Dongyue Chemical Technology.

Unlike conventional two-step processes requiring sorting and dissolution, this system converts unsorted, low-value mixed plastics directly into high-value chemical feedstocks. The innovation significantly reduces sorting costs and achieves a product yield above 92%.

According to Zhang Xingong, Dongyue’s chairman, the process integrates catalytic cracking and conversion into a single phase, setting a new benchmark for the sector.

Scaling towards a circular economy

City officials see the trial as a milestone in developing Jieyang into a global chemical recycling hub. ‘This is the world’s first plant combining integrated equipment and a one-step process for mixed plastics,’ says Wang Shaole, Jieyang’s deputy party secretary.

The project aims to reduce China’s reliance on imported crude oil and accelerate the transition to a green, circular economy.

Future phases will scale processing capacity to over three million tonnes annually. The city authorities are also committed to creating a rule-of-law-based, market-driven business environment to attract global partners.

Strong demand for plastics

China is the world’s biggest consumer and producer of plastics. Recent market data suggests demand for plastics will reach 110 million tonnes by 2030, and 118 million tonnes by 2050. The packaging, construction and decoration, electronics and appliance, and automobile areas are the four segments that rely the most on plastics. Together, they account for more than 80% of China’s plastic consumption.

Its plastic recycling industry was worth 10.6 billion in 2023. Analysts believe this will grow to exceed EUR 20.7 billion by 2030. In terms of material, polypropylene (PP) represents that biggest revenue stream for Chinese recyclers. Polyethylene terephthalate (PET) is witnessing the fastest growth in use.

In terms of revenue, China accounted for 25.4% of the global recycled plastics market in 2023. The country has a 30% plastics recycling rate.