October 09, 2024, Changhong High-Tech announced that its wholly-owned subsidiary, Guangxi Changhong Biomaterial Co., Ltd., has successfully secured a substantial award of 50 million yuan from the Hezhou Bureau of Industry and Information Technology as part of the 2024 Major Industrial Project Subsidy. Currently, based on the actual progress of the project, the autonomous region has advanced 15 million yuan as support funds, with 1 million yuan already received by Guangxi Changhong.
This marks the second consecutive year that Changhong High-Tech has received significant subsidies from the Guangxi government. Earlier, on March 23, 2023, Guangxi Changhong received a 60 million yuan industrial support fund from the Hezhou High-Tech Industrial Development Zone Management Committee, bringing the total government subsidies received over the past two years to a staggering 110 million yuan.
What exactly is Changhong High-Tech’s endeavor in Guangxi? According to the Color Masterbatch Industry Network, Changhong High-Tech initiated a calcium carbonate masterbatch project in Hezhou, Guangxi, in 2023. The project is being implemented in two phases by Guangxi Changhong Biomaterial Co., Ltd. Currently, the first phase has been successfully completed, encompassing an annual production capacity of 500,000 tons of high-end modified calcium carbonate, 300,000 tons of degradable masterbatch, and 300,000 tons of shoe material masterbatch. The second phase is planned with similar capacity scales and additionally includes a 100,000-ton production line for degradable products and agricultural films.
The total investment for these two phases amounts to 3 billion yuan, which includes significant assets such as land and mining rights acquired by Guangxi Changhong through bidding in 2023. Specifically, the company successfully bid 85.21 million yuan for the state-owned construction land use rights of plot HTC-2023-6 in March and 140 million yuan for the mining rights of a marble mine in Pinggui District, Hezhou, in September.
Why is the Guangxi government willing to invest heavily in subsidies? This is primarily due to the strategic importance of Guangxi Changhong Biomaterial Co., Ltd.’s biodegradable masterbatch industrial park project. Not only is this project a key industrial project promoted by the Hezhou Municipal Party Committee and Government, but it is also a major project coordinated and promoted by the Guangxi Autonomous Region and a “Double Hundred Double New” industrial project. Upon completion, the project is expected to become the largest production base for degradable masterbatch in China.
Furthermore, this project aligns closely with the development strategy of Hezhou’s calcium carbonate industry. Currently, Hezhou is striving to build a calcium carbonate new material industry cluster and establish itself as the “Capital of Masterbatch in China.” As a crucial component of this strategy, Guangxi Changhong’s project will significantly contribute to the refinement, functionalization, and serialization of the local calcium carbonate industry. The government’s substantial subsidies not only provide strong support for the company’s development but also demonstrate Guangxi’s firm determination and courage to vigorously develop the high-end calcium carbonate industry.