Huafeng Sells World's Largest Bio-based PDO Business, to Launch Breakthrough Bio-PTMEG in 2026

Following the transaction, Primient will continue to supply BioPDO to CovationBio under a long-term supply agreement, which will be used to produce a portion of bio-based Sorona® polymer (PTT polyester) – a sustainable solution widely used in the global apparel and home furnishings industries.

Moelis & Company is serving as the exclusive financial advisor for this transaction.

Meanwhile, CovationBio is solidifying its leadership in the biomaterials sector by driving the development of next-generation emerging biomaterials and preparing for the commercialization of its latest product, bio-based poly(tetramethylene ether) glycol (bioPTMEG), in 2026.

CovationBio CEO Steven Ackerman said: "The BioPDO business, initially applied to Sorona® polymer (PTT polyester) 25 years ago, has evolved into a mature and continuously growing successful business platform. As part of our long-term strategy to reaffirm our commitment to investing in new technologies, we are incorporating BioPDO into a broader sustainable materials ecosystem. This divestiture will enable us to invest more deeply in next-generation sustainable materials innovation." Mr. Ackerman has over 15 years of industry experience, successfully bringing multiple sustainable material solutions to the global market and achieving commercialization.

CovationBio's latest breakthrough product is bioPTMEG, a second-generation bio-based polyether diol derived from corn cobs—a feedstock that does not compete with primary food sources. As a drop-in replacement for traditional petroleum-based PTMEG, bioPTMEG offers significant sustainability advantages for applications involving spandex, polyurethanes, and thermoplastic elastomers. Its use cases span functional performance apparel, footwear components, industrial elastomers, as well as automotive parts and accessories.

"Looking ahead, we are excited to commercialize relevant solutions and help downstream value chain partners reduce obstacles when incorporating sustainable materials into production. As a direct replacement for traditional PTMEG, bioPTMEG can be seamlessly integrated into production as a bio-based raw material without requiring significant adjustments to production processes," added Ackerman.

CovationBio's Sorona® polymer, containing 37% plant-based ingredients, was officially commercialized in 2000. Since its launch, Sorona® polymer has grown to become a globally recognized material for apparel and home furnishings, winning the favor of many world-renowned brands due to its ability to enhance product environmental performance while maintaining an excellent user experience. It can add softness, stretch, durability, and warmth with breathability to fabrics for various apparel and home products, with applications spanning activewear, outdoor apparel, workwear, ready-to-wear, high fashion, and carpets. In September 2025, CovationBio released an updated, third-party audited Life Cycle Assessment (LCA) report for Sorona® polymer, which showed that the polymer offers significant environmental advantages compared to traditional synthetic materials.

• Compared to producing Nylon 6 using non-renewable resources, the production of Sorona® polymer saves 44% of energy and reduces greenhouse gas emissions by 170%.

• Compared to the production of polyethylene terephthalate (PET) using non-renewable resources, the production of Sorona® polymer reduces greenhouse gas emissions by 41%.

• Compared to producing fossil-based polybutylene terephthalate (PBT) from non-renewable resources, producing Sorona® polymer saves 4% energy and reduces greenhouse gas emissions by 4%.

In 2025, Huafeng Ruixun will invest a total of 10 billion yuan in Qidong City, Jiangsu Province. A commercial factory is being built in the Lvsi Port Economic Development Zone. The project will be constructed in three phases, with the first phase covering an area of 320 mu (approximately 52.8 acres). Construction is expected to be completed by the end of 2025, with commercial production commencing in the first quarter of 2026.At that time, 50,000 tons will be achieved. /year of BioPTMEG, with synchronous by-products of 20,000 tons of tetrahydrofuran and other products, taking the lead in starting a new journey of bio-based PTMEG industrialization; Phase II covers an area of 120 mu and is planned to be completed and put into operation in 2028, adding 150,000 tons/year of BioPTMEG and its by-products; Phase III covers an area of 210 mu and is planned to be completed and put into operation in 2030, adding 300,000 tons/year of BioPTMEG and its by-products. After all the phases are completed, BioPTMEG's total production capacity will reach 500,000 tons per year, forming the world's largest bio-based PTMEG production base.

About Covation Biomaterials (CovationBio):

Covation Biomaterials LLC, founded in 2022 in Newark, Delaware, is a global leader in innovative high-performance, sustainable solutions, primarily serving the apparel and home goods industries. With a deep foundation in breakthrough scientific innovation, the company successfully commercialized Sorona® polymer 25 years ago and continues to be dedicated to scaling new biomaterials across multiple industries, including its latest innovation, bio-based polyether glycols (bioPTMEG), which is planned for commercialization in 2026.

The CovationBio design mark and all trademarks and service marks designated with a ™, ℠ or ®, unless otherwise noted, are owned by or used under license by Covation Biomaterials LLC or its affiliates.