BEIJING, March 2, 2023 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service and environmental protection, electric power and coal chemical industries, today announced that it has formulated preliminary plans to expand into the plastics chemical recycling business. Recon also attended the 27th China Plastics Recycling Conference and Exhibition held on February 28 at Dongguan City of Guangdong Province to explore cutting-edge technologies that work to achieve circular economy goals in eliminating waste and pollution, keeping products and materials in continuous use, and regenerating natural systems. In contrast to traditional linear economies, the circular economy is important in addressing climate change, combating biodiversity loss, and preserving scarce resources.
Creating a circular economy is an essential sustainability target for stakeholders across the petrochemicals plastic value chain. Traditional mechanical recycling methods are necessary, but such methods are more likely to achieve a downcycling of plastics. Chemical recycling can create new plastics, save the consumption of crude oil, improve the reuse of waste plastics, and truly achieve the full life-cycle cycle of plastics which is a vital contribution to reducing plastic pollution. How to achieve stable production at low cost has been a key breakthrough that the global chemical industry continues to explore. The business segment has since attracted the attention and participation of many consumer industry giants, who have realistic requirements on increasing the use of recycled plastics, which means the development of the sector is rapid and the market potential is huge. The segment also attracts investments, planned expansions and real-world product launches into the field that all aim to accelerate its scale and application frequency.
Relevant data shows that the market space for chemical recycling of waste plastics is huge, with an annual new market potential estimated at tens of billions of dollars and a market potential of hundreds of billion dollars to dispose and reuse of plastics produced and previously landfilled. Chemical recycling of waste plastics is expected to become a new growth area and a driving force for petrochemical and sanitation solid waste industries in the carbon neutral era due to its superior plastic waste treatment, carbon reduction and crude oil substitution capabilities.
Recon decides to enter into this field to catch up with the opportunities presented by technologic innovation as well as on the backdrop of rising price of petroleum as raw material for plastics, increasing difficulties in exploration, and most importantly a deteriorating climate due partially to plastic pollution. The Company is planning to engage in sector of plastic chemical recycling, on the one hand, which fulfills its own corporate responsibility of pursuing the goal of environment protection, and on the other hand, which also gives full play to make use of its industry and technical know-how and advantages. The Company will provide further update on Recon's initiative when appropriate in the short-term.
Mr. Shenping Yin, Founder and CEO of Recon commented: "We are excited to announce Recon's new business initiative which is a natural extension of our existing business lines in the field of chemical recycling, and also a key step in fulfilling our commitment to our shareholders to transform the Company's operating cash flow to enhance our corporate value. Brands and consumers are fueling increasing demand for recycled polymers across many markets. The mechanically recycled polymer market is currently under-developed, with global capacity sitting at less than 10% for major polymers, according to ICIS("Independent Commodity Intelligence Services"). Chemical recycling is an area of growing interest and investment worldwide of sustainability as it could bridge the gap in supply of recycling materials and is probably the most effective and sustainable way to reach scale for food-grade packaging recycling. China's plastic recycling efforts over the past decade have helped reduce crude oil consumption by about 510 million tons and prevented 61.2 million tons of carbon dioxide emissions . We believe that now is a strategic time to enter the circular economy and chemical recycling industry. Over the years, we have also gained great industry know-how and aim to make fullest use of our skillset to contribute to the creation of a greener and circular economy that serves for the motto of our corporate governance."
About Recon Technology, Ltd ("RCON")
Recon Technology, Ltd (NASDAQ: RCON) is the People's Republic of China's first NASDAQ-listed non-state owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("CNPC"), with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, RCON has taken leading positions within several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients. For additional information please visit: http://www.recon.cn/.
Forward-Looking Statements
Recon includes "forward-looking statements" within the meaning of the federal securities laws throughout this press release. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," or "will likely result," and similar expressions that concern Recon's strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that Recon expected. Many of these statements are derived from Recon's operating budgets and forecasts, which are based on many detailed assumptions that Recon believes are reasonable, or are based on various assumptions about certain plans, activities or events which we expect will or may occur in the future. However, it is very difficult to predict the effect of known factors, and Recon cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed under "Risk Factors" in Recon's most recent Annual Report on Form 20-F and any subsequent half-year financial filings on Form 6-K filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by the cautionary statements that Recon makes from time to time in its SEC filings and public communications. Recon cannot assure the reader that it will realize the results or developments Recon anticipates, or, even if substantially realized, that they will result in the consequences or affect Recon or its operations in the way Recon expects. Forward-looking statements speak only as of the date made. Recon undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, Recon.
For more information, please contact:
Company
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799
Email: info@recon.cn
Investor Relations
Janice Wang
Wealth Financial Services LLC
Phone: +86 13811768559
+1 628 283 9214
Email: services@wealthfsllc.com
View original content: