On October 28, 2022, the groundbreaking ceremony for the "Annual 200,000 tons Lactic Acid and 130,000 tons Polylactic Acid Project" of Jiangxi Keyuan Bio-Material Co., Ltd., a holding subsidiary of Levima Advanced Materials Corporation, was held at the project site in Jiujiang City. Yang Wenbin, Deputy Secretary of the CPC Jiujiang Municipal Committee and Mayor of Jiujiang Municipal People’s Government, announced the start of the project. Chen Deye, General Manager of Jiangxi Keyuan Bio-Material, attended the ceremony and presented an overview of the project.

Deputy Secretary of the CPC Jiujiang Municipal Committee, Mayor Yang Wenbin Announced Jiangxi Keyuan Bio-Material Polylactic Acid Project Commencement

       Deputy Secretary of the CPC Jiujiang Municipal Committee Jiang Wending, Executive Vice Mayor Ying Jiong, Deputy Director of the Jiujiang Municipal People's Congress Standing Committee Luo Baixi, and Vice Chairman of the Jiujiang Municipal Political Consultative Conference Ma Haiwei, along with key officials from various departments of the municipal party committee and government, attended the groundbreaking ceremony of the Jiangxi Keyuan Bio-Material project. The ceremony was presided over by Deputy Mayor Bao Chenggeng of Jiujiang. Zhao Heping, Secretary of the Lianxi District Committee, and Lou Qi, Director of the Jiujiang Municipal Bureau of Industry and Information Technology, delivered speeches.

       Biodegradable materials are the main way to solve the “white pollution” of traditional disposable plastics, which is one of the directions that Levima Advanced Materials will focus on during the “14th Five-Year Plan” period. Polylactic acid (PLA) is an important biodegradable material species, and is one of the biodegradable materials that have been industrialized, with strong market demand, continuous oversupply, and broad space for development. Jiangxi Keyuan Bio-Material has independently developed “High Optical Purity Lactic Acid - High Optical Purity Polylactide - Polylactic Acid (PLA)” whole industry chain technology, which is at the leading level in the industry. Jiangxi Keyuan Bio-Material's annual output of 200,000 tons of lactic acid and 130,000 tons of polylactic acid project, has been included in the list of key construction projects in Jiangxi Province in 2022. The project uses starch and other raw materials to produce lactic acid, polylactic acid and other products. Among them, the first phase of the project has an annual output of 100,000 tons of lactic acid and 40,000 tons of PLA, with a total investment of about 2.15 billion yuan, which is scheduled to be completed and put into operation by the end of 2023, and is expected to realize an average annual operating income of about 1.41 billion yuan and a net profit of about 315 million yuan after reaching production.

       General Manager Chen Deye stated, "At present, Jiangxi Keyuan Bio-Material has obtained the project's energy assessment, environmental impact assessment, planning permission, and construction permit approval documents. The EPC general contracting unit, Sinopec Guangzhou Engineering Company, has already been set up on-site. The procurement of major equipment has been completed, and the bidding for the construction unit has been finalized. The detailed engineering design of the project is being implemented according to plan, and the project has met all the conditions for full commencement. The team is confident and determined to realize the target of commissioning the project on schedule and making the project a benchmark project with industry competitiveness and influence."