The main raw materials for carbon black production are by-products remaining from the upstream petrochemical and steel industries' refining processes. Through the special carbon black production process, these canbe transformed into high-value product carbon black, truly implementing a circular economy. In Greater China, India, and the United States, local refining and steel plant by-products are used as fuels and raw materials. To reduce carbon emissions, we are actively establishing green supply chains, introducing natural gas as a fuel. This was implemented in our Chongqing plant in March 2023 and the Linyuan Advanced Plant in April 2023, with plans for other facilities underway. Notably, starting from 2021, our Greater China facilities have planned to use tire pyrolysis oil as an alternative fuel. By 2023, this accounts for approximately one-fourth of the fuel at the Linyuan Advanced Plant, where pyrolysis oil has transitioned from fuel to raw material, producing environmentally friendly recycled carbon black products. Similar plans are in progress for other facilities.
| Note 1 | Non-renewable materials are defined as resources that cannot be replenished in the short term. E.g.: minerals, metals, oil, natural gas, coal, etc |
| Note 2 | Non-renewable packaging materials include plastic pallets and bulk bags |
| Note 3 | Renewable materials are defined as those that can be quickly restored through ecological recycling or agricultural procedures and can be used continuously for future generations. E.g.: wood, water |
| Note 4 | Recovered oil refers to tire pyrolysis oil (oil derived from recycled tires after pyrolysis, converted into reusable oil), which minimizes waste disposal issues and reduces the burden on fossil fuels. |