China-based Cathay Industrial Biotech Co. Ltd (Cathay) and the government of the City of Wusu, Xinjiang, have signed an agreement for the expansion of Cathay’s production of bio-based pentamethylene diamine and long-chain diacids at the Wusu site to meet the expanding market demand.
Biochemical producer and process developer Cathay has focused on R&D and industrialization of bio-manufacturing for more than 20 years. The production of long-chain diacids, bio-based pentamethylene diamine, and bio-based polyamides derived from plant starch has been successfully implemented on an industrial scale.
The company currently operates two production plants in China. One is in the county of Jinxiang, Shandong Province and has an annual output capacity of 40 000 tonnes of bio-process long-chain diacids. It also operates pilot production lines for over one thousand tonnes of bio-based pentamethylene diamine and bio-based polyamides.
Cathay’s second production site is in the city of Wusu, Xinjiang Province, with annual output capacities of 30 000 tonnes of bio-method long-chain diacids, 50 000 tonnes of bio-based pentamethylene diamine and 100 000 tonnes of bio-based polyamides. The Wusu plant commenced production in the second half of 2018.
The completion of the first phase of Cathay’s plant in Wusu is only a small part of the comprehensive plan for the production of new bio-materials. The successful start of the production at the Wusu site, however, is of great importance. For the project expansion, Cathay can draw on its 20 years of industrialization experience and its new R&D results to consistently provide high-quality products to the market and thus meet the expanding market demand, said Dr Xiucai Liu, Chairman, and CEO of Cathay.
US$500 million investment in capacity expansion
According to the agreement, an additional investment of US$500 million will be made in the Wusu facility in order to expand the annual output by 30 000 tonnes of bio-process long-chain diacids and 50 000 tonnes of bio-based pentamethylene diamine.
The company says that it has “always been dedicated to its bio-manufacturing technology, challenging the principles of traditional chemical manufacturing.” Its bio-manufacturing has continuously improved production efficiency, made manufacturing processes more energy-efficient and environmentally friendly, and expanded market applications and scale by focusing on customer-oriented application development.
Now that Cathay has successfully built the first phase of the Cathay project and started production, it carries out the second phase of the expansion without delay. The combined investments of the two phases will exceed US$1 billion, which is very meaningful for the economic development of the city of Wusu and even the Xinjiang region. For the expansion of the investment projects, the city will continue to contribute, focus on infrastructure, take care of formalities, and promote the project with high-quality services in order to complete the project as soon as possible. In the long run, Cathay’s unique bio-manufacturing technology will fill a gap in the world’s high-end bio-based materials. Wusu will use the city’s power to support the development and scale-up of the Cathay project, and gradually become a large and important bio-based new material industrial park, said Chen Zhou, Mayor of Wusu.
