Teijin and Jinggong Holding Group will form a polyester chemical recycling joint venture (JV) in Shaoxing, Zhejiang Province, China, to build a closed-loop recycling system for the country.
The move follows the March 2012 cooperative project agreement between Teijin and the China Chemical Fibers Association (CCFA) to explore business opportunities in the chemical fibres industry in China.
To be set up in September 2012, Zhejiang Jiaren New Materials JV will chemically recycle polyester fibre scraps and used polyester products into DMT (dimethyl terephthalate).
The new plant, which targets annual sales of JPY10bn in the first year of business, will also allow Japan-based chemical company Teijin to manufacture and sell resulting fibres.
The facility, with a DMT production capacity of 20,000tpa in the initial phase, will be expanded to produce 70,000tpa of DMT in the second phase.
The plant will produce 19,000tpa of recycled polyester fibre in the initial phase.
The Shaoxing-based multinational enterprise Jinggong will contribute 51% and will invest around JPY6bn in the JV to construct DMT production, polymerisation and fibre spinning facilities, while Teijin will contribute 49%.
The construction of the recycling plant will begin in November 2012 and it is expected to go on-stream by the end of March 2014.
Leveraging Teijin's polymer and fibre-spinning technologies, the DMT is used to produce polyester resin and polyester fibre.
The CCFA is promoting the chemical fibres industry, with focus on energy savings and waste reduction as the Chinese Government made energy conservation and environmental preservation a priority in its 12th five-year plan (2010-2015).
Image: Teijin and Jinggong Holding Group team up to build a closed-loop recycling system for China. Photo courtesy of: Teijin.