Recon Technology, a China-based independent solutions integrator in the oilfield service and environmental protection, electric power and coal chemical industries, announced that it has formulated preliminary plans to expand into the plastics chemical recycling business.

Creating a circular economy is an essential sustainability target for stakeholders across the petrochemicals plastic value chain.

Recon decides to enter into this field to catch up with the opportunities presented by technologic innovation as well as on the backdrop of rising price of petroleum as raw material for plastics, increasing difficulties in exploration, and most importantly a deteriorating climate due partially to plastic pollution. The Company is planning to engage in sector of plastic chemical recycling, on the one hand, which fulfills its own corporate responsibility of pursuing the goal of environment protection, and on the other hand, which also gives full play to make use of its industry and technical know-how and advantages. The Company will provide further update on Recon's initiative when appropriate in the short-term.

Shenping Yin, Founder and CEO of Recon commented: "We are excited to announce Recon's new business initiative which is a natural extension of our existing business lines in the field of chemical recycling, and also a key step in fulfilling our commitment to our shareholders to transform the Company's operating cash flow to enhance our corporate value. Brands and consumers are fueling increasing demand for recycled polymers across many markets. The mechanically recycled polymer market is currently under-developed, with global capacity sitting at less than 10% for major polymers, according to ICIS.

“Chemical recycling is an area of growing interest and investment worldwide of sustainability as it could bridge the gap in supply of recycling materials and is probably the most effective and sustainable way to reach scale for food-grade packaging recycling. China's plastic recycling efforts over the past decade have helped reduce crude oil consumption by about 510 million tons and prevented 61.2 million tons of carbon dioxide emissions.

“We believe that now is a strategic time to enter the circular economy and chemical recycling industry. Over the years, we have also gained great industry know-how and aim to make fullest use of our skillset to contribute to the creation of a greener and circular economy that serves for the motto of our corporate governance."