Ningxia Coal-based New Materials Technology Co., Ltd. is a wholly-owned subsidiary of Ningxia Baofeng Energy Group Co., Ltd. Located within the Ningdong Energy and Chemical Industry Base, it serves as the operating entity for the Group’s Phase III olefin project in Ningdong. The project utilizes the third-generation DMTO (Methanol-to-Olefins) technology developed by the Dalian Institute of Chemical Physics (DICP) under the Chinese Academy of Sciences. It represents the first single-train polyolefin production facility in China with an annual capacity of 1 million tons. Trial production commenced in September 2023, supported by a 1.5 million tons/year methanol plant. The product portfolio includes 400,000 tons/year of polyethylene, 500,000 tons/year of polypropylene, and 250,000 tons/year of ethylene-vinyl acetate (EVA) copolymer.

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In February 2024, the associated EVA production unit was completed and brought online. As the world’s first project to produce EVA using coal as a feedstock, it offers the flexibility to switch between EVA and low-density polyethylene (LDPE), as well as between different grades of EVA, based on market conditions. The facility has successfully transitioned from producing foaming-grade EVA to photovoltaic (PV)-grade EVA—meeting the required quality standards—and has achieved its first export order. The completion of this unit enables the company to extend its olefin product offerings into high-value-added sectors, such as PV encapsulant films and high-end foaming materials, marking a flagship initiative in the Group’s strategy focused on "high-end development and product differentiation."