Basf(US:BASFY) Di Yi Cai Jing·2025-04-30 13:42Core Viewpoint - BASF is focusing on the gradual realization of waste material recycling through quality balance methods, emphasizing the importance of collaboration across the supply chain and strict government regulation [1][3]. Group 1: Sustainable Development and Innovation - BASF aims to showcase its efforts and achievements in sustainability and green environment at the CHINAPLAS 2025 exhibition, highlighting the commercialization of plastic waste recycling in downstream products through co-creation with customers [1]. - The company's notable exhibits include safety shoes developed in collaboration with KPR and a new automotive connector created with TE Connectivity, marking a transition from technical validation to formal commercialization of material recycling [1]. Group 2: Challenges in Recycling Technology - Despite the technical feasibility of various recycling paths, the commercial viability remains a challenge due to limited upstream suppliers and insufficient material supply, leading to high costs and narrow choices for recycled materials [3]. - The lack of effective waste sorting and classification upstream complicates the recycling capacity, necessitating collaboration across the entire industry chain and ecosystem for effective waste material recycling [3]. Group 3: Government Regulation and Economic Opportunities - Many countries have implemented Extended Producer Responsibility (EPR) systems, which extend producers' environmental responsibilities throughout the product lifecycle, including design, circulation, consumption, recycling, and waste disposal [3]. - China's 14th Five-Year Plan for Circular Economy Development aims for a resource recycling industry output value of 5 trillion yuan by 2025, indicating significant economic opportunities in resource recycling [3]. Group 4: National Initiatives and Market Trends - The establishment of the China Resource Recycling Group, with a registered capital of 100 billion yuan, marks a new phase in the domestic circular economy, integrating resources from major state-owned enterprises [4]. - By 2030, the domestic resource recycling industry scale is expected to approach 10 trillion yuan, reflecting the evolution of the circular economy from mere recycling to a high-tech, high-quality new industry [4]. Group 5: Focus on Automotive and Renewable Energy Sectors - BASF's investment strategy in China is primarily directed towards the automotive and renewable energy sectors, with the automotive industry representing nearly half of its specialty materials business [5]. - The shift towards electric vehicles is evident, as BASF's material supply is increasingly directed towards new energy vehicles, aligning with China's accelerated construction of a new power system [5].