Shandong Stock Observation | Huicheng Environmental Protection Commences Production of Globally First-Ever "One-Step Method" Chemical Recycling Equipment for Waste Plastics

On March 11, 2026, Qingdao-listed Huicheng Environmental Protection Technology Group Co., Ltd. (Stock code: 300779.SZ) disclosed on the Shenzhen Stock Exchange’s Interactive Platform that its 200,000-ton/year mixed waste plastic chemical recycling industrial test facility officially resumed production on March 9. The facility started full-load production testing on February 7, 2026, running continuously for 80 hours and successfully achieving stable operation at 100% capacity.

This progress marks a significant step for this high-tech enterprise dedicated to the circular economy, as it advances along the industrialization path of its globally pioneering deep catalytic cracking technology for mixed waste plastics.

Facility passes full-load test and resumes production

According to Huicheng Environmental Protection’s disclosure on the Interactive Platform, the company’s 200,000-ton/year mixed waste plastic resource utilization project began full-load testing on February 7, 2026. After 80 hours of continuous testing, the facility achieved stable operation at 100% capacity, further validating the process feasibility. The plant resumed production on March 9, and the company stated it will fully push forward to meet its goals based on the optimal plan.

Since the project’s initial trial production in July 2025, it has undergone multiple debugging and optimization phases. According to the Economic Herald, in mid-July 2025, the project was shut down for maintenance to troubleshoot and rectify expected equipment issues; during the second trial in August 2025, a flaw was found in the oil and gas pipeline design, prompting subsequent technical upgrades; in November 2025, the plant was shut down again for technical modifications, with the company explaining that the shutdown was necessary to optimize feedstock input methods, complete adjustments for raw material and equipment compatibility, and to promote the construction of supporting hydrogenation units to improve product quality.

Regarding the delay in the full-load testing in February 2026, Huicheng Environmental Protection previously responded to investor inquiries on February 4, 2026, stating that the delay was caused by maintenance of the external natural gas supplier’s pipeline.

Innovative “one-step” process achieves efficient conversion

Huicheng Environmental Protection’s independently developed deep catalytic cracking technology for mixed waste plastics (CPDCC) employs a globally pioneering “one-step” process. As the company explained on the Shenzhen Stock Exchange’s Interactive Platform, this technology does not require complex sorting of various low-value mixed waste plastics and can directly convert them into high-value chemical raw materials, with a product yield rate exceeding 92%.

According to Snowball Finance, Zhang Xinggong, founder and CTO of the company, introduced at the 3rd Polymer Recycling Conference in 2025 that this technology couples thermal and catalytic cracking reactions within a single reactor, using a counter-current fluidized bed reaction process to achieve the goal of directly cracking mixed waste plastics in one step to produce low-carbon olefins and mixed aromatics. Huicheng Environmental Protection estimates that converting 1 kilogram of waste plastic can produce chemical raw materials equivalent to about 3 kilograms of crude oil cracking output, significantly improving resource utilization efficiency and economic benefits.

Rising oil prices and circular economy strategies provide dual support

Recent changes in the chemical raw material market prices have created a favorable environment for waste plastic chemical recycling projects. Huicheng Environmental Protection disclosed on March 11 on the Interactive Platform that, influenced by international geopolitical conflicts, prices of chemicals such as ethylene and propylene have fluctuated recently. The company noted that, according to statistics, ethylene prices in East China rose from about 6,000 yuan/ton in early March to current levels of 8,800–10,000 yuan/ton, while propylene prices increased from about 6,400 yuan/ton to around 9,700 yuan/ton. The company stated that crude oil is a raw material for many chemical products; its rising prices will increase the costs across the entire chemical industry chain, thereby strengthening the cost advantages of alternative industries.

Long-term policy support for the industry is provided by national circular economy strategies. On December 23, 2025, the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Ecology and Environment, Ministry of Commerce, General Administration of Customs, and State Administration for Market Regulation jointly issued the “Recycling Material Application Promotion Action Plan.” The plan aims to further improve the waste recycling system by 2030, establish standards and certification systems for recycled materials, and increase the annual production of recycled plastics to over 19.5 million tons.

According to the Economic Observer, a responsible official from the National Development and Reform Commission emphasized that promoting the application of recycled materials is crucial for developing the circular economy, ensuring resource security, and achieving carbon peaking and neutrality.

Public information shows that Huicheng Environmental Protection was founded in 2006, listed on the Shenzhen ChiNext Board in 2019, with a registered capital of 201 million yuan. Headquartered in Qingdao, Shandong, the company specializes in the treatment, disposal, and resource utilization of industrial “three wastes.” Its steady progress on the 200,000-ton/year mixed waste plastic resource utilization project offers a new technological pathway and industry practice for solving “white pollution” and developing the circular economy.