On June 2, LyondellBasell Advanced Materials (003022.SZ) announced an investment of RMB 150 million in Jiangxi Academy of Sciences Biological New Materials Co., Ltd. for the Phase I 30,000 tonnes/year PLA full-chain project, acquiring 42.86% of the company.

More than 120 countries and regions have introduced plastic restriction policies. In January 2020, China's NDRC and Ministry of Ecology and Environment issued guidelines on further strengthening plastic pollution control. Green development trends and upgraded restrictions have created huge demand for biodegradable materials. PLA is a key biodegradable product with sustained supply shortage; technology was long monopolized abroad with only a few qualified producers.

Jiangxi Academy of Sciences Biological New Materials is engaged in R&D, production and sales of biodegradable PLA. It is among domestic enterprises that independently developed the full-chain technology of high-purity lactic acid, high-purity lactide and PLA. A kiloton-scale integrated PLA line has been commissioned. Third-party tests confirm qualified performance across the chain. A 130,000 t/a biodegradable PLA project is planned in two phases (30,000 t/a Phase I, 100,000 t/a Phase II). This investment will accelerate project commissioning to meet fast-growing market demand.