Nanjing, Jiangsu – China’s maker of PU system and insulation materials Hongbaoli saw its total revenue drop by 10% to RMB978m ($153m) in H1 2015, and reported a 41% decrease in insulation materials sales to RMB5m with China’s lukewarm real estate market.
The company still has a 15m m²/year project for high flame retardant insulation materials in the pipeline – 7.5m m²/year facilities have started operation so far.
“The Ministry [of Housing and Urban-Rural Development]’s new regulation on building insulation is making it even worse,” vice director of Hongbaoli’s Polyurethane Institute Yuan Haishun told UTECH-polyurethane.com.
The new regulation came into force in May and requires residential buildings measuring 27m to 100m to use B1 class materials, although according to Yuan, B2 should suffice.
“The B1 requirement would really bump up the cost,” added Yuan. “Currently PU only accounts for 5% of exterior insulation materials used in China.”
XE Currency Conversion: 24 September, 2015