Metallurgy / Chemicals / Rubber & Plastics

Under the One Paper Restriction Order, the papermaking, pulp mold manufacturing, and biodegradable plastics industries have a great leap forward in production capacity. Faced with a planned papermaking capacity of 46 million tons and a planned production capacity of more than 10 million tons of degradable plastics, the demand for 3.32 million tons of degradable plastics is obviously not enough.

So the question is, how did such a big bubble blow up in the era of big data known as information symmetry?

According to the company’s intelligence expert "Financial Graffiti", on the evening of May 6, Ingenic Group (601216.SH) announced that the company plans to invest 20.7 billion yuan to build 3.2 million tons of degradable plastic projects. Both can achieve operating income of about 16.4 billion yuan and total profit of about 3.5 billion yuan.

In July 2020, 9 departments including the National Development and Reform Commission and the Ministry of Ecology and Environment jointly issued the "Notice on Solid Promotion of Plastic Pollution Control", and the "Plastic Ban Order" will be fully implemented on January 1, 2021. After the decree was issued, it triggered a crazy expansion of production capacity in the paper industry, pulp mold manufacturing and packaging industries, and the same madness was also staged in the plastics industry.

According to incomplete statistics, after 2021, the new domestic production capacity of white cardboard will reach 14 million tons. In the next 2-3 years, the planned new production capacity of white cardboard is expected to be about 6.7 million tons, of which Guangxi Jingui is expected to be put into operation in October 2021. 1.8 million tons.