Breaking through technological monopoly: The path to self-reliance and controllability for China's PETG industry

HZ info:In the current era of intense competition in the global new material industry, PETG (polyethylene terephthalate-1,4-cyclohexanedimethylene terephthalate), as a strategic emerging material, its localization process is not only a tough battle for technological breakthroughs but also a strategic choice to ensure national industrial security. At the end of 2023, the Ministry of Industry and Information Technology included PETG in the "Guidance Catalogue for the First Batch of Application Demonstration of Key New Materials (2024 Edition)", marking that this material officially ranks among the national strategic-level new materials and becomes a key support for promoting the high-end transformation of the manufacturing industry.

PETG: The "Transparency Revolution" Reshaping the Industrial Landscape

PETG, with its excellent performance, has redefined the standards for high-end plastics. This non-crystalline copolyester, copolymerized from terephthalic acid, ethylene glycol, and 1,4-cyclohexanedimethanol, boasts glass-like transparency (transmittance >90%) and impact strength 15-20 times that of acrylic. It also exhibits chemical resistance, high temperature resistance (long-term use at 85°C), environmental friendliness, and non-toxicity (free of bisphenol A). It is widely used in food packaging, medical equipment, electronic displays, and other fields. The VISA cards we use daily, high-end cosmetics packaging, and even transparent building materials for the Winter Olympics venues all rely on this "king of plastics".

Amidst the surging demand for environmental protection and health, PETG is rapidly replacing traditional PVC and PC materials. For instance, Estée Lauder's "Boundless Pavilion" constructed using PETG at the China International Import Expo not only achieved a breakthrough in ultra-thin injection molding technology with a single piece thickness of 2.5 millimeters, but also ensured 100% recycling and reuse of the materials after the exhibition, perfectly embodying the concept of sustainable development. This recyclability has made it the preferred choice for high-end packaging materials, largely replacing PVC in the European and American markets.

Industrial Dilemma: Twenty Years of Being "Choked"

For a long time, the production technology of PETG has been monopolized by companies such as Eastman in the United States and SK Chemicals in South Korea. The synthesis process of its core raw material, 1,4-cyclohexanedimethanol (CHDM), has been strictly sealed, resulting in domestic enterprises having to import finished products at high prices. Before 2022, China's PETG market was 100% dependent on imports, with an annual demand exceeding 200,000 tons but no independent production capacity. This full-chain dependence on "raw materials-production-application" has left domestic related industries in a passive position in international competition.

Market data reveals a grim reality. In 2023, the global PETG market reached a value of 13.16 billion yuan, with China emerging as the largest consumer market with a demand of 317,600 tons. However, China's production capacity stood at only 112,600 tons, resulting in a supply-demand gap exceeding 60%. What is even more concerning is that the top three global enterprises account for 63% of the market share, while domestic enterprises hold less than 20% in the high-end segment.

Capacity expansion: Rewriting the global competition landscape

2024 marked a turning point for China's PETG industry. The Shandong Wankai project, invested 2.5 billion yuan by Guangdong Jishuo, commenced its first phase of production with a capacity of 60,000 tons in July of that year. Once fully operational, it will achieve an annual production capacity of 480,000 tons, ranking among the top globally. On one hand, it significantly enhances the domestic self-sufficiency rate, greatly alleviating the robust demand in the domestic market. On the other hand, it will further lead and propel related industries to accelerate their high-end transformation, aiding the country's key material industries in achieving self-reliance and controllability.

As a world-class high-tech industrial company dedicated to the fields of new energy and new materials, Guangdong Jishuo New Material Co., Ltd. was established in 2010, specializing in high-performance color masterbatch, functional masterbatch, modified plastics, and injection-grade PETG materials. The company has successively obtained certifications as a "National High-tech Enterprise", a "National-level Specialized, Fine, Unique, and Innovative Small Giant Enterprise", and a "Technology-based Small and Medium-sized Enterprise", and was listed on the New Third Board in 2023. The company consistently adheres to independent research and development, endowing masterbatch with more characteristics through thousands of proprietary color mixing and functional reformulation formulas. It is also one of the few technology-based new material enterprises in China that can be applied to over 40 high-precision industries such as military aerospace, rail transportation, automotive, photovoltaic panels, and 5G applications.

Future Outlook: A qualitative change from following to leading

With the acceleration of localization, the PETG industry is undergoing three major transformations:

Technological iteration: To meet the global market demand for specialty polymer materials, Guangdong Jishuo will continue to strengthen technological innovation and new product research and development, build the largest supply base for new polyvinyl acetate materials in the Guangdong-Hong Kong-Macao Greater Bay Area, and strive to create the world's largest research, development, and production base for specialty polymer materials.

Application expansion: In the field of 5G communication, PETG has become an ideal material for high-frequency electronic components due to its low dielectric loss characteristics; in the field of new energy, its weather resistance has enabled it to occupy a significant share in the photovoltaic encapsulation film market.

Standard reconstruction: The performance standards for PETG, which are primarily formulated by domestic enterprises, are taking shape.

According to data from the Ministry of Industry and Information Technology, the self-sufficiency rate of domestically produced PETG has increased from less than 20% to over 50% in 2024, and it is expected that the market size will exceed 20 billion yuan by 2030. This industrial revolution driven by technological breakthroughs not only gives China a say in the field of high-end plastics but also opens up an independent and controllable path of development in the global competition for new materials. Just as Guangdong Jishuo proposed its vision when it was listed on the National Equities Exchange and Quotations (NEEQ): "Defining world standards with Chinese innovation" - this is a true portrayal of China's new materials industry moving from following to leading.