China-based oil and gas field service company Recon Technology, has announced plans to move into the plastics chemical recycling business. According to the company, relevant data has shown that the market space for chemical recycling of waste plastics is huge, with an annual new market potential estimated at tens of billions of dollars and a market potential of hundreds of billion dollars. The industry is expected to become a new growth area. It has already attracted the attention and participation of many consumer industry giants, who view the technology as a way to meet their commitments on increasing the use of recycled plastics., as well as investments, planned expansions and real-world product launches.
Against the backdrop of rising petroleum prices, increasing difficulties in exploration and the fast-expanding problem of plastic pollution, Recon has decided to enter the field to catch up with the opportunities it presents. The company attended China Plastics Recycling Conference and Exhibition held on 28 February to explore the various technologies currently available. Achieving stable production at low cost is a goal the global chemical industry continues to pursue. In that context, the chemical recycling business is one where Recon Technology can put its industry and technical know-how and advantages to good use, by making full use of its skillset to contribute to the creation of a greener and circular economy.
Shenping Yin, founder and CEO of Recon called the new business initiative a ‘natural extension of our existing business lines in the field of chemical recycling’ as well as a way to ‘enhance our corporate value’, as demand for recycled polymers - fueled by brands and consumers - continues to soar across many markets.
“The mechanically recycled polymer market is currently under-developed, with global capacity sitting at less than 10% for major polymers, according to ICIS. Chemical recycling is an area of growing interest and investment worldwide of sustainability as it could bridge the gap in supply of recycling materials and is probably the most effective and sustainable way to reach scale for food-grade packaging recycling,” said Yin.
China’s plastic recycling efforts over the past decade have helped reduce crude oil consumption by about 510 million tons and prevented 61.2 million tons of carbon dioxide emissions, he added. “We believe that now is a strategic time to enter the circular economy and chemical recycling industry.”