October 17, 2024 – Cathay Biotech has recently unveiled its ambitious plans in Taiyuan, Shanxi, with the official announcement of two major project designs on the website of Shanxi Transformation and Comprehensive Reform Demonstration Zone. The projects encompass a 2.4 million tons/year corn deep processing and 5 million tons/year bio-fermentation liquid facility, as well as a 500,000 tons/year biobased pentamethylenediamine and 900,000 tons/year biobased polyamide production line, with a total investment of 21.838 billion yuan. This move underscores the deepening collaboration between Cathay Biotech and Shanxi, as they jointly strive towards creating a globally leading 100-billion-yuan synthetic biology new materials industrial cluster.
The roots of this partnership trace back to 2015. Established in 2000, Cathay Biotech is a high-tech enterprise specializing in the research, development, production, and sales of biobased new materials using synthetic biology and other disciplines. Its products find widespread application in textiles, automotive, electronics, and renewable energy sectors. In 2015, Cathay Biotech caught the attention of Shanxi’s state-owned enterprises, with Lu’an Group becoming its second-largest shareholder through a subsidiary’s capital injection. Following a series of equity changes and listing preparations, Cathay Biotech successfully debuted on the Science and Technology Innovation Board in 2020, marking it as the first synthetic biology stock in China.
Post-listing, the collaboration between Cathay Biotech and Shanxi has grown stronger. In 2020, they signed a cooperation agreement with the Shanxi Comprehensive Reform Demonstration Zone Management Committee to jointly establish the “Shanxi Synthetic Biology Industrial Eco-Park.” This 80-billion-yuan park, divided into two phases, is poised to significantly propel the industrialization of Shanxi’s synthetic biology new materials. According to Color Masterbatch Industry Network, the first phase’s core projects include corn deep processing, biobased pentamethylenediamine, biobased polyamide, and biobased long-chain dicarboxylic acid, with an expected output value exceeding 100 billion yuan upon completion.
However, building a 100-billion-yuan industrial cluster is not without challenges. The two recently announced projects, both key components of the first phase, have encountered hurdles. Specifically, the “500,000 tons/year biobased pentamethylenediamine and 900,000 tons/year biobased polyamide project,” initially scheduled for completion in late 2024, has been postponed to late 2025 due to factors such as park infrastructure development and customer demand.尽管如此, Cathay Biotech has announced a phased production approach to enhance operational efficiency and has already completed a 5,000 tons/year high-temperature nylon demonstration line by the end of 2023.
Furthermore, Cathay Biotech’s projects in Shanxi have attracted upstream and downstream synthetic biology material enterprises to settle in the park. Focusing on the construction of the Synthetic Biology Industrial Eco-Park, the Shanxi Comprehensive Reform Demonstration Zone is introducing various enterprises along the industrial chain, aiming to form a complete industrial chain. This not only boosts the competitiveness of Shanxi’s synthetic biology new materials industry but also injects new vitality into the local economy.
Looking ahead, the partnership between Cathay Biotech and Shanxi will continue to strengthen, jointly driving the development of the synthetic biology new materials industry. With the gradual completion and commissioning of projects and the continuous influx of upstream and downstream enterprises, the blueprint for a 100-billion-yuan synthetic biology new materials industrial cluster is gradually turning into reality.