BEIJING, Aug. 25, 2025 -- Recon Technology Ltd. ("Recon" or "the Company"), a China-based provider of oilfield and low-carbon energy services, 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."
About Recon Technology, Ltd ("RCON")
Recon Technology, Ltd (NASDAQ: RCON) is the People's Republic of China's first NASDAQ-listed non-state-owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec and The China National Petroleum Corporation ("CNPC"), with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, RCON has taken leading positions within several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients. For additional information please visit: http://www.recon.cn/.
Forward-Looking Statements Disclaimer:
Recon includes "forward-looking statements" within the meaning of the federal securities laws throughout this press release. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," or "will likely result," and similar expressions that concern Recon's strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that Recon expected. Many of these statements are derived from Recon's operating budgets and forecasts, which are based on many detailed assumptions that Recon believes are reasonable, or are based on various assumptions about certain plans, activities or events which we expect will or may occur in the future. However, it is very difficult to predict the effect of known factors, and Recon cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed under "Risk Factors" in Recon's most recent Annual Report on Form 20-F and any subsequent half-year financial filings on Form 6-K filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by the cautionary statements that Recon makes from time to time in its SEC filings and public communications. Recon cannot assure the reader that it will realize the results or developments Recon anticipates, or, even if substantially realized, that they will result in the consequences or affect Recon or its operations in the way Recon expects. Forward-looking statements speak only as of the date made. Recon undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, Recon.
For more information, please contact:
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799
Email: info@recon.cn
