China – Teijin Ltd of Japan is to establish Zhejiang Jiaren New Materials Co., Ltd – a joint venture with the Jinggong Holding Group of Shaoxing in Zhejiang Province, one of China’s largest production bases for fibre products.
Through the joint venture, Teijin will chemically recycle polyester as well as manufacture and sell the resulting fibres, with the aim of establishing a closed-loop recycling system in China. In this way, it will be leveraging its advanced proprietary chemical recycling technology and the business expertise it has cultivated in the global expansion of the ECO CIRCLE closed-loop recycling system for polyester. It will be the first time Teijin will have operated polyester chemical recycling outside Japan.
The joint venture, to which Teijin will contribute 49% and Jinggong Holding Group 51%, will invest around Yen 6 billion (US$ 760 million) in the construction of facilities for dimethyl terephthalate (DMT) production, polymerisation and fibre spinning. Construction will begin this November, with operations scheduled to start by the end of March 2014. The joint venture is targeting annual sales of Yen 10 billion (US$ 1.2 billion) in its first year of business.
The new plant will chemically recycle polyester fibre scraps and used polyester products into DMT with quality comparable to that derived directly from petroleum; the DMT will be used for the production of polyester resin, as well as value-added polyester fibre. The facility will have a DMT production capacity of 20 000 tonnes per year in the initial phase; as demand grows, annual capacity will be expanded to 70 000 tonnes. Annual production capacity of recycled polyester fibre will be 19 000 tonnes in the initial phase.