Meilian New Materials: Delay of degradable projects
On December 26, Guangdong Meilian New Materials Co., Ltd. issued an announcement on extending the implementation period of the investment project with raised funds.
Details of the extension of the implementation period of the project
| Investment project | The project is ready for use
Date (before extension) |
The project is ready for use
Date (after extension) |
| Functional masterbatch and biodegradable masterbatch
Industrialization project |
December 31, 2022 | December 31, 2023 |
The reason for extending the implementation period of the project with raised funds — the problem of land use
The implementation subject of this project is Meilian New Materials. The original land use right of this plot is Guangdong Meilian Membrane Co., Ltd., a wholly-owned subsidiary of the company (hereinafter referred to as “Meilian Membrane”).
At the beginning of 2022, Meilian Xincai absorbed and consolidated its wholly-owned subsidiary, Meilian Diaphragm. And then, the company legally inherit all its assets, creditor’s rights and liabilities, and all other rights and obligations, and they cancel the independent legal personality of Meilian Diaphragm.
Since then, Meilian Xincai has applied to the local natural resources bureau to change the land use right owner of the land for the raised investment project from Meilian Diaphragm to Meilian Xincai according to the resolution and the relevant certification materials issued by Shantou Municipal Market Supervision and Administration Bureau. However, due to the failure of relevant government departments to complete the irrigation ditch relocation and relocation construction project in the plot on time, they cannot handle the land use right transfer registration of the plot and the construction project application procedures in a timely manner with Meilian New Materials as the main body. Therefore, affecting the overall construction progress of the project.
Project overview
Five masterbatch production lines and supporting facilities are proposed for the project. After they complete the project, it will achieve an annual production capacity of 36300 tons.
In addition, Biodegradable masterbatch can not only color degradable products. But also self degrade in the natural environment to achieve green environmental protection effect. In other words, it is an important upstream industry in the degradable plastic industry chain and has broad market and economic benefits.
