Ningde, Fujian – Huide New Materials started up the first phase of its plant for PU resin, TPU and other products in Ningde, Fujian on 18 June.
China’s Huide starts up PU resin and TPU plant
Fujian Huidong Construction Engineering was the contractor; planning applications were filed in 2016, and ground was broken in March 2018. In total investment is expected to be CNY450m ($64m); phase one has received CNY283m.
The first phase will have a production capacity of 100kT/year PU resin, 20kT/year TPU elastomer, 10kT/year modified PU systems and 5kT/year water-based PU.
Phase two will take another 12 months to complete, the company said. This second phase will increase the plant’s capacity to 100kT/year PU resin, 50kT/year TPU elastomer, 20kT/year modified PU systems and 10kT/year water-based PU.
The project is expected to create 315 jobs when in full operation, and generate CNY169m annual gross profit on CNY2.3bn sales.
Huide New Materials is a fully owned subsidiary of Shanghai-headquartered Huide Science and Technology, which went public in 2018. Last year, the parent group sold 108.8kT PU resin for leather, 3.8kT TPU resin and 18.8kT polyester polyol.
In Q1 2020, the group recorded CNY211m revenue, down by 31% from a year ago. Net profit shrank by a third to CNY18m.