Wenzhou, Zhejiang – China’s largest PU elastane maker Zhejiang Huafon Spandex is expanding its new differentiated elastane project’s capacity to 90 kT/year.
The project, originally with 60kT/year capacity planned as UTECH-polyurethane.com reported as the time, is located at the Baitao Chemical Park in Chongqing. The project is expected to break ground in mid 2017 with phase one, containing half the capacity, scheduled to come on stream by 2018 year end and phase two by 2020 year end.
Producing coarse denier fibers in its high-speed multi-end spinning lines, the project has CNY 2.6bn ($386 m) investment earmarked and is predicted to generate CNY 591m annual profit on CNY 2.7bn sales.
Over the past few years China's PU elastane’s capacity and apparent consumption have both been growing at a more than 10% rate annually, according to the statement. “PU elastane will continue to be the most popular among elastic yarns for a long period to come,” it said.
China’s PU elastane sector’s inventory in late 2016 was at a record low over the past few years and its capacity utilization rate was at a record high, the statement added. According to Chinese chemical news portals, PU elastane price in the market has jumped a third from its low point last August to nearly CNY 40,000/ton today.
In the first quarter of 2017 Huafon posted a 69% rise in sales to CNY 977m. Its net profit more than tripled to CNY 98m.
Exchange Rates: Xe.com 19 June, 2017
