(Yicai) Dec. 3 -- Wankai New Materials, a leading Chinese bottle-grade PET plastic manufacturer, will join hands with French biodegradable technology developer Carbios S.A. to build a EUR115 million (USD130 million) factory in China, marking the first large-scale application of enzyme-based degradation technology for waste PET in Asia.

The factory in Zhejiang province is planned to process 50,000 tons of waste polyester materials annually, the Jiaxing-based firm announced yesterday.

Clermont-Ferrand–headquartered Carbios is a pioneer in PET recycling. The company has developed a unique enzyme-based process that breaks down PET plastic waste into its fundamental components, enabling the production of new, high-quality PET. Besides Wankai, Carbios has formed several alliances with multiple global brands in cosmetics, beverages, and apparel, including Nestlé and Pepsi, aimed at enhancing circularity.

The latest Chinese collaboration marks the first large-scale application of enzyme-based degradation technology for waste PET materials in the Asian region. The project aims to produce high-quality, recycled polyester materials with a low carbon footprint, which is expected to become a core sourcing option for low-carbon raw materials in the global beauty, beverage, sports, and fashion industries, according to Wankai.

By utilizing the biodegradable enzyme decomposition technology provided by the French partner, the factory aims to produce and recycle the monomers of PTE materials, such as purified terephthalic acid (PTA) and monoethylene glycol (MEG), as well as regenerating PET products. This will enable 100 percent recyclability of polyester materials that have previously been difficult to recycle.

The two parties will establish a JV, in which Wankai will hold 70 percent of the shares, and Carbios will hold the remaining shares. This JV will be responsible for the construction and operation of the joint venture plant, per the announcement.

The announcement also stated that, to strengthen the strategic partnership between the two parties, Wankai plans to invest EUR5 million (USD5.8 million) in the target company through a capital increase, thereby becoming a minority shareholder of Carbios and securing a seat on the company’s board of directors. However, the announcement did not estimate the shareholding percentage after the completion of this equity investment.

After the establishment of the JV, the two parties will promptly sign a technology licensing agreement to obtain Carbios' exclusive license for its PET decomposition technology in the entire Asian region for a period of three years. If the annual processing capacity of the JV plant for waste PET increases to one million tons in the future, this exclusive license will be converted into a perpetual license.

The announcement also revealed that the biocatalysts used in the JV plant will be supplied by Carbios' global exclusive manufacturer, Novonesis. Carbios will ensure that the JV receives enzyme formulations produced using the latest technology and will guarantee their stable supply.

The notice did not mention any related financial figures. Publicly available information shows that Novonesis currently operates three factories in China, all of which produce Carbios' specialized enzyme products.

Editor: Emmi Laine