Recon Technology, Ltd: Recon Hits Milestone: Chemical Recycling Plant Construction Finished as Project Nears Production Launch

BEIJING, Aug. 25, 2025 /PRNewswire/ -- Recon Technology Ltd. ("Recon" or "the Company"), announced today that the main manufacturing plant for Shandong Recon Renewable Resources Technology Co., Ltd. ("Shandong Recon")'s 40,000-ton-per-year waste plastic chemical recycling project ("Recon Plastic Chemical Recycling Project") was successfully topped out. This marks a key breakthrough in the project's construction, as it officially enters the equipment installation and commissioning phase. To date, the Company has invested over $15 million in this project. The project is expected to be fully completed by November 2025, and a required one-month trial operations production phase will commence in December 2025, in accordance with domestic regulatory laws, rules, and regulations.

The Recon Plastic Chemical Recycling Project spans an area of approximately 50 acres. Upon completion and commencement of operations, the main construction components of the project will include six pyrolysis units, two distillation units, and corresponding environmental protection facilities. The project is expected to produce 30,000 tons of plastic pyrolysis oil and 6,000 tons of carbon residue annually, generating an estimated $30 million in annual returns and achieving the high-value conversion of waste plastic resources.

Recon is currently engaged in in-depth discussions with several multinational chemical giants and leading domestic chemical companies. The Company has successfully signed product purchase intent and strategic cooperation agreements to jointly explore the diverse applications of its high-value pyrolysis oil products.

Technologically, the Recon Plastic Chemical Recycling Project adopts a dual-process approach combining catalytic pyrolysis and catalytic reforming. The pyrolysis process employs a "horizontal screw-type three-stage continuous reactor" for the first time, and effectively addressing the technical challenge of plastic coking in traditional processes and ensuring stable and continuous feedstock supply. Additionally, the introduction of catalytic reforming significantly increases the olefin content of the pyrolysis oil, substantially enhancing its value and competitiveness in the market. These technological breakthroughs are leading-edge applications in the global plastic pyrolysis field. Currently, the primary raw material for this project is membrane film-type waste plastic, which is difficult to process using physical recycling methods.

Management Commentary

Mr. Yin Shenping, the CEO of Recon, stated: "We are delighted to announce the successful completion of the main structures of the Shandong project, which marks an important milestone in its construction. This demonstrates our team's ability to execute efficiently and underscores our commitment to advancing the industrialization of the plastic chemical recycling industry. Our core process has passed scientific and technological achievement evaluations by authoritative institutions, rigorous industrialization experiments, and domestic safety and reliability verification, laying a solid foundation for the project's safe and stable operation."

"During 2025, our primary objective is to ensure the project's smooth commissioning and stable production of products that meet stringent standards. We will spare no effort to transform the Shandong Recon plant into a globally leading benchmark facility for the stable and continuous production of plastic chemical recycling. The plastic pyrolysis oil produced here will serve as high-quality, sustainable chemical feedstock for large-scale chemical plants and consumer goods companies both domestically and internationally. We are also striving to meet international certification requirements such as ISCC (International Sustainability and Carbon Certification).

"By implementing full-process digital management, we are actively building a low-carbon smart factory. This is not only to improve operational efficiency and environmental performance but also to establish a 'standard factory' model that can be rapidly replicated. This will support Recon's future rapid scale expansion in the field of waste plastic resource utilization. We firmly believe that this project will be a significant source of profit for Recon upon its launch. Once operational, the project will effectively utilize the resources of various low-value waste plastics, including municipal solid waste plastics, industrial waste plastics, and agricultural films. This will provide a technical solution to address "white pollution" and promote a circular economy. In the future, Recon will continue to focus on upgrading core technologies for waste plastic chemical recycling, integrating and optimizing raw material supply chains, and expanding terminal product portfolios to build a more complete industrial ecosystem and achieve higher economic and social value."

Photo - https://mma.prnewswire.com/media/2756819/Shandong_Topped_OUT_EN.jpg

For more information, please contact:
Ms. Liu Jia, Chief Financial Officer
Recon Technology, Ltd
Phone: [phone]
Email: [e-mail]

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