At present, the digital intelligence system is evolving towards globalization. How can enterprises establish and improve their standardized digital system to empower industrial innovation, achieve diversified disciplinary technology, communication innovation, business model innovation, an infinite circular world industry chain, and a long-term public welfare ecological mechanism, as well as complete the transformation and upgrading of enterprises through digitization, will all promote sustainable development of enterprises in global competition.
Ningbo Topcentral New Materials Co., Ltd
Founder and CEO Ma Yiming
Summary of speech:
My topic is "Digital Cloud Artificial Intelligence Technology Innovation Recycling Value Chain", which is divided into three parts. The first part is about the current situation and future development trends of the recycling industry chain. Over the past 70 years, we have consumed approximately 9.2 billion tons of plastic, with an average annual output of 140 million tons. Many plastics have been incinerated, landfilled, or continue to be used. Based on data from 2022, the plastic consumption is approximately 369 million tons, and it is expected to reach 1 billion tons by 2050. Based on data from 2022, the plastic recycling rate is approximately 12.1%, at 45 million tons.
This is the entire solution path for physical recycling at present, seeking to find new points in energy consumption, performance balance, industry applications, etc. People have always believed that recycling is a relatively low-end industry, but it will definitely not be low-end in the future.
Based on data from 2021, the United Nations calculates that global carbon dioxide emissions are 50 billion tons of carbon dioxide equivalent, while China‘s is 11 billion tons, accounting for approximately 19.6%, which is a relatively high proportion, just like its economic contribution. CBAM is the EU‘s carbon border regulation mechanism, which is the prototype of a carbon tax. There are three points in this. The first is that it will be put into trial operation in October this year, covering steel, cement, aluminum, including hydrogen energy, gray hydrogen, blue hydrogen, and specific downstream products. On January 1, 2026, it will officially commence, and related to us is that organic compounds, polymers, and downstream derivatives will be directly included in this system for control. After 2034, it will be fully implemented, and all goods circulating in the entire EU market will be integrated into the entire system.
There are many technologies available now, including physical recovery, chemical recovery, bio based and biodegradable materials, and even other methods of landfill incineration. We believe that for today‘s Chinese market, it must be a combination of physical recycling, chemical recycling, and biodegradable materials. At the same time, Sinopec is facing a current situation that many petrochemical technologies have not yet completed localization, so localization technology breakthrough is still a key point in many industries in China.
But there is a big problem with domestic breakthroughs, which is how to avoid the problem of severe overcapacity after localization breakthroughs. It is predicted that in 2040, similar to CBAM, including green energy trading, the world‘s diversified disciplines and technologies, exchange and innovation, as well as the industrial chain including business model innovation, infinite recycling world and long-term public welfare ecological mechanism, the whole plastic related industry of Recycling and reuse will break through 1 trillion dollars, and the recovery rate can reach more than 80% of the ideal.
What will the entire industry look like in 10 or 20 years? It will not be dirty, messy, or low-value, nor will it be artificial, low-end, or low-value. In the future, it will present three characteristics: first, technology, and then capital and talent intensive. Therefore, it will present a completely different trend of industrial development compared to the decades to come.
Since the World War II, the international economic order and pattern have all followed the WTO system. What is the essence of the WTO system? It‘s its competition rules. The essence of its competition rules is cost free competition. That‘s why I have this pen in my hand, which is the result of the WTO market competition where the cost of manufacturing in China is 80 cents, surpassing the cost of manufacturing in Europe by 1 yuan. However, the market competition mechanism will be changed, shifting towards a completely new system of carbon competition rules, completely replacing the original WTO cost free competition system. In the future, the entire industry will exhibit polarization, with the first being globalization and the second being localization.
Globalization is no problem. Technology, technology, and talent must be globalized, so it is important to prioritize localization in the physical supply chain. In the next 10 to 20 years, it will complete more than 80% of the global mainstream market‘s supply chain system, which must be localized.
Many of us engage in petrochemical industry, including domestic ones, such as conventional PCs. Its production capacity may be twice or three times excess. According to the original WTO system, this is not a problem. But in the future, will CBAM allow the export of excess domestic production capacity within 10 years.
No, the country is already starting to localize, and breakthroughs need to be made in production capacity and technology. Production capacity needs to be planned and coordinated, otherwise there will be severe overcapacity. Within 10 years, this rule will change, and low prices are useless. If a 30% carbon tax is imposed, costs will be 20% cheaper, and there will be no use at all.
What can digital cloud artificial intelligence technology and circular regeneration industry chain do? There will be many hierarchical technologies involved, various equipment technologies, including functionalized paths, various professional equipment, and other testing, analysis, and evaluation systems.
The red characters are how to digitize to empower innovation in the entire recycling industry chain.
Digitization is defined as having five core functions, namely Big data BgDAT ™， Cloud Computing CLCAL ™， Artificial intelligence, we call it espionage agent®， This is our trademark. And the entire blockchain, we call it Fenghonglian®， TCB Chain®。
Another important point in the future is data security, which is now being overlooked. Data security is very important. In the future, it will be realized through these methods, including, for example, how we propose to establish Standard Model, professional models and risk control models, and how to realize these applications in the industry. This is a whole digital technology industry chain to drive the future entire recycling industry chain, which is not only limited to physical recycling, chemical recycling, but also various other biological technologies.
We are just a small part of the industry and we also feel the opportunities for industrial development, including crises, where danger lies ahead and opportunities lie behind. Topcentral® Our work, in fact, the red characters are a part of our corporate culture and values that are particularly emphasized, and we are developing rapidly based on this.
I would like to share two points. The first is our business philosophy: sustainability, Topcentral® Establishing sustainable partnerships with partners, employees, society, the environment, and everyone else is essential. Our mission is to contribute to the beautiful development of humanity.
After more than three years of development, we have also developed various standards, industry standards, and a large number of patents and trademarks. Over the past three years, we have authorized 23 invention patents, totaling 51 patents and 3 national standards. Now we have the fourth national standard being developed, including the ISO three system certificate from Rhein, Germany. 80% of our partners are among the Fortune 500 companies.
The first part of our company‘s brand matrix is Topcircle®, Chinese is the top brand of physical circulation, Taosu ®， Creating a zero carbon future, there are secondary brands below, TcycleGP® Universal plastic, TCycleEP® Engineering plastics, with three tier brands: PCR PC®。
We reserve some rights in our trademarks, even including those used by other brands, including certain companies using Oceancycle ®， It also uses our trademark. In 2022, we have become a PCR material enterprise that is carbon neutral for enterprises and products by achieving carbon neutrality in commercial finance. At the same time, we also have Oceancycle ® And OBP‘s full range of carbon neutrality solution materials. OBP is based on the amount of waste plastic within 50 kilometers of the coast.
For the multi-dimensional digital whole life cycle process traceability, including other kinds of traceable evidence chain data figures, including the identification of Big data artificial intelligence, it will present many different scenarios in the future. Topcentral® The whole industry chain element, the AI integrated Innovation management platform, has begun to be carried out and used in different industries, and has started to use the supercomputing platform for AI research and development. Topcentral ® The basic model of the cloud digital platform, the digital marketing platform, also provides a one-stop system solution for many small and medium-sized users, customers around the world, including marketing diversion transactions, brands, and online artificial intelligence services.
The inherent thinking in the recycling industry, including today, is that competition outweighs cooperation, and we hope that cooperation outweighs competition. We have launched a full series of products together with our partners, which come from many special marine plastics, with special functions, full lifecycle digital traceability, and full recycling design. Its prototype is used to create the world‘s first infinite cycle template, the first complete industry infinite cycle.
Our goal is to work together with industry partners to empower industrial innovation and create an infinite circular world over a period of 30 years. This is our ultimate goal.
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