Core Insights - Covation Biomaterials LLC, a subsidiary of Huafeng Group, will sell its entire stake in Primient Covation LLC to Primient, granting Primient 100% ownership of the world's largest bio-based 1,3-propanediol (Bio-PDO) production business. The transaction is expected to be completed in the first quarter of 2026, pending regulatory approvals [1][2]. Group 1 - Primient Covation LLC was established in 2000 and became the first company to achieve large-scale production of bio-based PDO. It has a production capacity of 77,000 tons per year at its facility in Tennessee, USA, and plans to expand capacity by 33,000 tons by April 2024 [2]. - The brands Zemea® and Susterra® under Primient Covation are recognized for their 100% bio-based properties and are widely used in cosmetics, personal care, textiles, coatings, and functional fluids, serving as core raw materials for Sorona® polymer production [2]. Group 2 - The sale marks a strategic divestment of Huafeng Group's overseas bio-based PDO business, following its acquisition of DuPont's bio-based PDO/PTT business for approximately $240 million in June 2022. This divestment highlights the company's strategic shift to focus on core areas [3]. - After divesting the PDO business, Huafeng will concentrate on the commercialization of the next generation of bio-based polyether glycol (BioPTMEG), which is derived from corn husks and does not compete with food resources. This product can replace traditional petroleum-based polytrimethylene ether glycol and is expected to provide significant carbon reduction benefits in various applications [3]. Group 3 - For Primient, this acquisition is a key move to strengthen its leadership in the bio-manufacturing sector. Primient's CEO emphasized the company's deep understanding of the technical capabilities and growth potential of the business since its inception [4]. - Post-transaction, Primient will continue to supply bio-based PDO to Huafeng through long-term supply agreements, ensuring stable raw material supply for Sorona® polymer production [4].