The development concept of ZhejiangBoxai's biodegradable materials industry is highly recognized by

With the implementation of the ban on plastics, biodegradable materials have further attracted the attention of major investment institutions. On November 11, 2020, ZhejiangBoxai was invited to participate in the 2021 capital market investment strategy meeting hosted by Industrial Securities.

The founder of the company, Mr. Wu Wei, delivered a speech on the topic of "Industrialization and Application of Biodegradable Materials". At the meeting, Mr. Wu pointed out the current dispute over three development routes for biodegradable materials:

01 The dispute between commercial value and product price:

As consumers, products with the same functions are never willing to spend 2-3 times the price to buy. This is the essential reason why the high-cost degradable material industry expects the government's administrative ban.

02 Controversy between plastic reduction and remodeling:

As the government, the purpose of banning plastics is to reduce plastic waste pollution. Is the fastest and most effective way to reduce plastic waste pollution to reduce the use of plastics, or to take advantage of the trend to guide the upgrading and transformation of the plastics industry to use biodegradable materials?

03 Degradation and recycling:

The traditional plastic industry believes that instead of forcing the consumption of high-cost degradable plastics, the government should spend the cost to establish a perfect recycling mechanism. The biodegradable material industry needs to prove that its value is not just degradation.

Therefore, to respond to the abovementioned development route dispute and develop biodegradable materials in a sustainable way, the industry must simultaneously solve the following three dimensions:

01 Application expansion

The expansion of new downstream applications is the engine of the development of the new material industry, and innovation must be maintained to develop applications.

02 techinque level

Biodegradable materials are not omnipotent materials. On the contrary, it is precisely because of the defects in the properties of biodegradable materials that they cannot meet the needs of the existing mature market and require technological innovation in the industry.

03 Industry maturity

At present, the mainstream PLA material, the upstream raw material industry chain is still small, which is not enough to support downstream development, and downstream garbage composting facilities are also in urgent need of construction.

And in the existing mature plastic packaging market, how does the existing biodegradable materials with defects in performance compare with traditional plastics? Mr. Wu believes that the only answer is: find your application location.

Finding a location requires a comprehensive judgment from four angles.

COST

Biodegradable materials must find breakthroughs in the entire industry chain. It is necessary to break the cost black box of all links in the industry chain and strive to reduce product costs in one place, otherwise it will be difficult to meet the challenges initiated by traditional plastics.

MARKET

The biodegradable materials industry is not a public welfare undertaking. The real market creator of biodegradable materials is not the government, but valuable consumption scenarios. With the correct usage scenarios, there will be a real market.

COMPETITIVENESS

Biodegradable materials must give play to the due characteristics of new material varieties and create their own substantial commercial value, otherwise they will not be able to win a firm position in the competition.

POSITIONING

Biodegradable materials cannot fully replace traditional petroleum-based plastics. Traditional plastics are a powerful material matrix composed of thousands of varieties. There are not a few types of biodegradable materials that can be replaced. Therefore, biodegradable materials focus on reducing plastic waste pollution.

Finally, Mr. Wu pointed out some application directions of future biodegradable material products.

01 It will coexist with natural substances, make use of its own high molecular polymer characteristics to make up for the lack of natural substance performance, and achieve new use value creation. Such as paper-plastic composite, bamboo-plastic composite.

02 It will be combined with the garbage classification, exert its own biodegradation characteristics in the garbage classification, and achieve the value goal of helping the classification of kitchen waste. Such as kitchen waste bags, pet feces bags.

03 Will give play to its own material characteristics, and find innovative applications that match it. For example, use the crystallinity, dimensional stability, and transparency of PLA; use the puncture resistance of PBAT, use the barrier properties of PGA, and so on.

After the meeting, a number of investment institutions such as Industrial Capital, Coastline Investment, Guiyuan Investment, Bodao Fund, Dieter Investment and Zhejiang Sowed conducted in-depth exchanges of opinions on the development and investment of the biodegradable materials industry. It is believed that Zhejiang Sowing, as a leading biodegradable material application developer, will usher in a faster growth with the help of capital in the future.