CARBIOS and Zhink Group, a prominent Chinese enterprise listed among the Top 500 Private Enterprises, specializing in PET and textile industries globally, have announced the signing of a joint Letter of Intent. This agreement marks their collaboration to establish a biorecycling facility in China, leveraging CARBIOS’ innovative enzymatic depolymerization technology to cater to the global market.

The partnership aims to establish a long-term relationship, with initial plans for a licensing agreement to construct a plant capable of processing a minimum of 50,000 tonnes of prepared PET waste annually. This initiative is expected to accelerate the adoption of circular economy principles in the plastic and textile sectors. Given China’s position as the world’s leading producer of PET, this strategic agreement allows CARBIOS to establish a foothold in this crucial market, further solidifying its global presence.

China stands out globally as the largest producer of PET, manufacturing 67 million tonnes annually, which constitutes 61% of the world's PET production. This dominance positions China not only as a significant producer but also as a pivotal player in the potential growth of recycled PET (r-PET) production, responding to increasing regional and global demand. In 2021, Asia consumed 58% of the world's r-PET, with China alone accounting for 38%, highlighting its critical role as both a producer and consumer in this sector.

Moreover, China leads in transforming PET into resins and fibers, particularly in the packaging and textile industries. The country commands 78% of the global PET fiber transformation market, underscoring its extensive influence in these applications worldwide.

Sustainability initiatives and China's "dual carbon" policies serve as primary drivers propelling the growth of the PET recycling industry within the country. These policies emphasize environmental responsibility and carbon reduction goals, aligning with global efforts towards achieving a more sustainable future.

Zhink focuses strategically on two global industries, PET and textiles, aiming to lead with sustainable competitiveness. As a major player in the PET market, Zhink produces 3 million tonnes annually, serving both domestic and global markets. CARBIOS has pioneered enzymatic depolymerization technology, enabling efficient and solvent-free recycling of PET plastic and textile waste into products akin to virgin materials. The initial agreement between Zhink and CARBIOS aims to expand Zhink's recycled PET capacities, aligning with its sustainability objectives by offering r-PET from enzymatic recycling—a circular solution capable of processing diverse PET waste types, including hard-to-recycle items like opaque and colored bottles, multilayer food trays, and textile waste. This approach also reduces CO2 emissions by 57% compared to virgin PET production.

For CARBIOS, this collaboration signifies a pivotal advancement in deploying its technology globally and implementing its licensing model to achieve leadership in PET recycling by 2035. The planned Asia-based plant, licensed by Zhink, complements CARBIOS' ongoing construction of the world's first industrial-scale enzymatic PET recycling plant in Longlaville, France, underscoring their commitment to sustainable innovation on a global scale.