Recon’s Waste Plastic Recycling Plant Enters Equipment Phase
Plastic Recycling | 2025-08-26 13:12:15
The company reports it has signed product purchase intent and strategic cooperation agreements with several chemical companies.
By Paul Ploumis
SEATTLE (Scrap Monster): Recon Technology Ltd. (NASDAQ:RCON), a $73 million market cap company currently trading below its InvestingPro Fair Value, announced Monday that its 40,000-ton-per-year waste plastic chemical recycling project has reached a construction milestone with the topping out of its main manufacturing plant.
The project, operated by subsidiary Shandong Recon Renewable Resources Technology Co., has received over $15 million in investment to date. With a strong liquidity position reflected in its 9.19 current ratio and more cash than debt on its balance sheet, the company is progressing with the facility’s equipment installation and commissioning phase, targeting full completion by November 2025. InvestingPro analysis reveals 8 additional key financial insights about RCON’s investment profile.
The recycling plant, situated on approximately 50 acres, will include six pyrolysis units, two distillation units, and environmental protection facilities. Once operational, it is projected to produce 30,000 tons of plastic pyrolysis oil and 6,000 tons of carbon residue annually, potentially boosting the company’s current annual revenue of $9 million.
The facility employs what the company describes as a dual-process approach combining catalytic pyrolysis and catalytic reforming, utilizing a "horizontal screw-type three-stage continuous reactor" to address plastic coking issues in traditional processes.
Recon CEO Yin Shenping stated that the project has passed scientific evaluations by authoritative institutions and domestic safety verification. The company reports it has signed product purchase intent and strategic cooperation agreements with several chemical companies.
Trial operations are scheduled to begin in December 2025 in accordance with domestic regulatory requirements. The company indicates the project will primarily process membrane film-type waste plastic, which is difficult to recycle using physical methods.
The project represents part of Recon’s expansion beyond its traditional business as a provider of oilfield services to China’s largest oil exploration companies, Sinopec and China National Petroleum Corporation. While the company is not currently profitable, with negative earnings in the last twelve months, this diversification effort could help improve its financial performance. Unlock comprehensive financial analysis and real-time alerts with InvestingPro.
Courtesy: www.investing.com
