Tengzhou, Shandong – New East New Materials is to start up a 30kT/year compound polyurethane adhesive plant in Tengzhou, Shandong province by the end of 2021.
The plant will produce both solvent-based and solvent-free adhesives, with a stronger focus on the former, the company told UTECH-polyurethane.com.
The project has CNY445m ($67m) total investment, and also includes a 30kT/year soft package ink facility. It broke ground in October 2019.
New East also announced it is increasing capital at the subsidiary business building at the plant by CNY 30m to CNY130m. This is to help it fund future operations.
The company already has 10kT/year PU adhesive capacity at its site in Tongxiang, Zhejiang province. Last year, it produced 7.5kT.
Its adhesive business generated CNY136m sales in 2019, down by 9% from 2018. However, gross margin increased by 13.5% from 2018 to 38% in 2019 .
New East was set up in 1983, and is headquartered in Taizhou, Zhejiang province. It only sells to the Chines market, the company said.