Processors

By Colin Steddy Hemp Inside Pty Ltd | iHemp NSW Executive Member In late July 2025, I headed to China to reconnect with key partners and explore the latest in fiber, plastic, and board manufacturing technology for hemp. The trip was fast-paced, full of factory visits, long train rides, and great conversations over tea — but most of all, it reaffirmed just how fast hemp innovation is moving in China. Shanghai: Fiber Processing Reimagined After leaving Vacy early on July 30, I arrived in Shanghai late that night where my long-time contact, Victor, met me at the airport. We eventually found his car after a short adventure in the car park and drove three hours to the hotel, pulling in around 3:40 a.m. Despite little sleep, I was keen to see what awaited the next day. At the factory, I was impressed by the level of refinement in their fiber-processing systems. The new long-fiber line, recently upgraded, now requires only two operators instead of nine. It runs cleanly without the need for an underground pit — a big saving — and automatically bales the finished fiber. The new setup handles stalks under 5 mm thick, blowing the Hurd cleanly into a separate bin. Equally impressive was the short-fiber line, featuring a redesigned drum that treats the fiber gently, maintaining its length and softness. The integrated dust-extraction system can service both lines simultaneously, allowing any short fiber from the long-line process to be redirected — meaning virtually no waste. Although each line currently outputs about 300 kg of fiber per hour (roughly one ton combined), the modular design means five units could outperform a five-tons-per-hour European system at a fraction of the cost. That evening over supper, I reconnected with Eric, an interpreter from a previous trip, and his colleague Tim, a Dutch-born Chinese fiber specialist with a distinctly Australian sense of humor. Over coffee, we discussed how Australian hemp fiber could fit China’s high-volume textile markets. China’s grading system is still largely based on experience — “look and feel” rather than numbers — but their eye for quality is sharp. The conversation reminded me how important hands-on understanding remains in this trade. Jinan: Natural Fiber Plastics The next leg took me north by high-speed rail to Jinan. Steven from GW Plastics met me and introduced me to their automated molding operation — one worker producing a pallet of parts every three minutes.   Their latest trials blend up to 80 percent natural fiber with plastic. The result is stronger, lighter, and less brittle — an ideal direction for sustainable materials. I immediately thought of potential applications for hemp, from injection-molded components to structural profiles. One idea we discussed was a “plastic rebar” or concrete straightener — using waste plastic and hemp stalks together. It’s the kind of circular solution that could really take off as green construction grows. Cement Boards and Bio-Composites From there I met Kevin, who manufactures cement board machinery used around the world. His plant featured two systems: a 100-metre heat-based line that requires glue, and a 50-metre cold-press version that doesn’t — fully automated, simple to run, and versatile. Boards ranged from thin 2 mm sheets up to 120 mm sandwich panels. This technology, combined with hemp fiber, could produce strong, lightweight, and toxin-free panels — exactly the kind of building materials the market is demanding. Every machine component met European electrical standards, meaning compatibility with Australian regulations would be straightforward. That evening, I checked into a modest hotel and ventured out for dinner, finding that everywhere I went, WeChat was the key to doing business. It’s more than just messaging; it’s the backbone of communication and payments in China. It’s clear I’ll need to set up a proper account before my next trip. Panjin: Reed and Hemp Board Futures A few days later, after a long standing-room-only train ride, I arrived in Panjin to meet Mr. Zhang, who runs a major reed-board manufacturing facility. Liz, an excellent interpreter, joined us for the tour. The factory processes 30–35,000 tons of reeds annually — material harvested from local wetlands and stored in large bales much like hay or hemp. The plant was spotless, with no visible dust and a sweet smell from the natural lignin binding the boards. Workers weren’t masked or suited up — the process itself is that clean. Over lunch, we discussed the potential for hemp as a feedstock. Mr. Zhang already had trialed hemp board and was enthusiastic about the results. He suggested partnering with Hemp Inside to test Australian hemp in his system, with the possibility of building a dedicated mill in Australia by 2027 if the economics and market align. The reed and hemp boards are almost indistinguishable by sight or touch — but hemp may prove to be the stronger and more sustainable fiber. Zhangpu: Wrapping Up and Looking Forward My final stop was Zhangpu, where I reunited with Mr. Xu — a long-term collaborator and friend. Over several days we shared meals, visited his warehouse, inspected a salt-tolerant kenaf trial, and talked late into the evenings about hemp’s future. Xu’s knowledge and network across China’s hemp and bio composite sectors continue to open new doors for collaboration. Our discussions confirmed that China is pivoting rapidly toward non-toxic, bio-based materials. Whether in fiber decortication, plastic composites, or natural boards, every manufacturer I met was seeking cleaner, simpler processes — and hemp fits perfectly into that vision. Reflections In just under two weeks, I saw firsthand how China’s manufacturing ecosystem continues to adapt and innovate around natural materials. The common thread across all these meetings was efficiency, integration, and sustainability — each factory taking steps to reduce labor, waste, and reliance on synthetic binders. For Hemp Inside and for Australia’s growing hemp industry, the opportunities are clear. By connecting our clean, high-quality raw materials with China’s processing technology and manufacturing scale, we can accelerate the development of hemp products that are competitive, sustainable, and commercially ready. As I landed back in Sydney on August 11, tired but