Hua Jie, The Head Of Yutong Environmental Protection In Haikou City: In The Construction Of The Second Phase Of The Project, The Focus Is On Expanding The Production Capacity Of Pure Plant Fiber Cat Litter

In 2020, with the changing situation of plastic restrictions and bans in Hainan, Yutong Environmental Protection decided to invest 370 million yuan to establish a fully biodegradable and high-end packaging industry base in Hainan, and carry out environmentally friendly meal package matching and high-end packaging business. Since taking root in Haikou in 2020, Haikou Yutong Environmental Protection Technology Co., Ltd. has been focusing on the research and production of green biodegradable materials and products. Relying on the policy, location, and innovation advantages of Hainan Free Trade Port, enterprises continue to break through in the fields of biodegradable tableware, plant fiber cat litter, and other products. This not only meets the local environmental protection needs in Hainan, but also promotes products to international markets such as Spain and Australia, becoming a vivid footnote to the development of the environmental protection industry in the Free Trade Port.
Recently, Hua Jie, the head of Haikou Yutong Environmental Protection Technology Co., Ltd., stated in an interview with Hainan Net that the company plans to use the funds saved by the "two 15%" policies to build a more advanced research and development center, introduce international top equipment, and develop high-end products such as biodegradable packaging films. Huajie revealed that the company's second phase project is focusing on equipment installation and intelligent warehouse construction. After production, it is expected to have an annual total output value of 500 million yuan, and will focus on expanding core production capacity such as pure plant fiber cat litter.

Supported by the advantages of free trade ports, it accelerates the reduction of burden for the green materials industry
The biodegradable materials industry is sensitive to cost, market, and technology, and the advantages of free trade ports precisely match our needs, "said Hua Jie, the company's leader. From raw material imports to product exports, the multiple dividends of free trade ports enable enterprises to run more steadily and faster on the green track.

The policy dividend directly lowers the production threshold. The production of biodegradable products requires the import of some special raw materials, and the "zero tariff" policy of free trade ports exempts tariffs and import value-added tax and consumption tax, significantly reducing procurement costs. By allowing us to purchase high-quality raw materials at more favorable prices, we not only ensure the stability of product degradation performance, but also enhance price competitiveness. Taking imported plant-based resins as an example, the "zero tariff" policy has reduced their procurement costs by about 15%, saving the enterprise tens of millions of yuan annually. The "two 15%" income tax incentives have formed a "two-way incentive": the reduction of corporate income tax by 15% has released more funds for research and development; The preferential personal income tax for high-end talents has enabled enterprises to successfully attract professional talents in fields such as materials science and process design, providing intellectual support for technological breakthroughs.
The advantages of location and trade facilitation have opened up international market channels. Hainan's 4-hour flight circle covers over 20 countries and regions in Southeast Asia, radiating nearly 50% of the global population, and building a "fast logistics network" for products to go abroad. More importantly, the customs clearance model of "opening up the front line and controlling the second line" and the filing system for overseas certification agencies have significantly improved the efficiency of product exports.
Technological innovation as the core, green products entering the market
In the production workshop of Yunlong Industrial Park in Haikou National High tech Zone, automated production lines are running at high speed, and biodegradable meal boxes made from sugarcane bagasse are gradually being produced. This lunch box is our 'flagship product' with independent patents. It can completely decompose within 180 days under composting conditions, and even European customers praise its environmental performance. "Hua Jie picked up a lunch box and said that technological innovation is the 'golden key' for enterprises to open up the market.

In order to break through the performance bottleneck of biodegradable materials, the company has established a professional R&D team covering materials science, process design and other fields, and invests a large amount of funds every year for equipment upgrades and technological breakthroughs. In addition to sugarcane bagasse meal boxes, the team has also developed new products such as pure plant fiber cat litter, which have reached international leading levels in water absorption and environmental protection, and have become one of the core production capacities of the second phase project. Our research and development is not just about 'working behind closed doors', but also leveraging the innovative resources of the free trade port, "said Hua Jie. The company has carried out industry university research cooperation with local universities, jointly built degradation material laboratories, successfully overcome the problem of insufficient material temperature resistance, and developed meal boxes that can hold hot food, expanding the application scenarios. At the same time, through platforms such as the Industrial Technology Innovation Alliance of the Free Trade Port, enterprises can exchange cutting-edge technologies with peers and continuously optimize product formulas.

The technological advantage has been transformed into market results. After the first phase of the project is put into operation, Nissan will produce 1 million pieces of biodegradable tableware, which not only meets the local demand under Hainan's "plastic ban" policy, but also covers multiple provinces in China through a dealer network, and is in high demand in first tier cities with high environmental protection requirements. In the international market, our products are exported to countries such as Spain and Australia, with an annual export sales of about 100 million yuan. The combination of "environmental protection+efficiency" has enabled our company to accumulate a stable customer base overseas.
Rooted in the free trade port, drawing up a new blueprint for green industries
With the acceleration of the second phase project, the green map of the enterprise is constantly expanding. It is reported that the second phase of the project is focusing on equipment installation and intelligent warehouse construction. After being put into operation, the total annual output value is expected to reach 500 million yuan. The focus will be on expanding the production capacity of pure plant fiber cat litter and promoting the formation of a complete industrial chain of "raw materials production recycling" for fully biodegradable materials in the park. We plan to use the funds saved by the 'two 15%' policies to build more advanced research and development centers, introduce international top equipment, and develop high-end products such as biodegradable packaging films, "said Hua Jie.
Enterprises are full of expectations for the operation of the closure of Hainan Free Trade Port. Hua Jie stated that the company has formulated three major plans: firstly, to increase research and development investment, utilize the advantages of the innovation resource aggregation of the free trade port, cooperate with universities and research institutions, and develop more high-performance and low-cost environmental protection products to meet different market demands; The second is to expand production scale, accelerate the construction of the second phase project, introduce more advanced production equipment and technology, and improve production efficiency and product quality; The third is to strengthen market expansion, on the one hand to consolidate and expand overseas market share, and on the other hand to actively explore the mainland market through the policy of processing value-added domestic sales without tariffs; The fourth is to actively introduce and cultivate talents, use the talent policies of the free trade port to attract more outstanding talents in the industry, and provide intellectual support for the company's development.

The rapid growth of enterprises cannot be achieved without the full support of local authorities. The relevant departments in Haikou have opened up a green approval channel to facilitate the rapid implementation of the first and second phase projects; The park assisted in applying for electricity subsidies and declared as a "leading enterprise in Hainan Province", reducing costs while enhancing brand influence; The complete transportation, water and electricity facilities ensure the stable operation of the production line 24 hours a day. These supports allow us to focus on technology and market, and have more confidence in building an internationally competitive environmental brand in Hainan, "said Hua Jie.
From rooting in Hainan to exporting products, from technological breakthroughs to expanding the industrial chain, Haikou Yutong Environmental Protection Technology Co., Ltd., with green and biodegradable materials as the link, not only practices environmental protection concepts, but also enjoys the dividends of free trade port development. In the future, as the closure operation approaches, we look forward to this enterprise running faster on the green industry track and contributing more to the development of the real economy of the free trade port and the achievement of the "dual carbon" goal