Wenzhou, Zhejiang – Huafon Spandex, the elastane arm of China’s polyurethane heavyweight Huafon Group, posted CNY 2.1bn ($294m) revenue in H1 2019. This was down 5% from H1 2018.
Net profit over the period dropped 4% to CNY 237m. Net profit less non-recurring items fell by 7% to CNY 230m, according to the company’s half-year report.
‘Oversupply continues to haunt the PU elastane sector,' the report said. 'Major importing countries are setting up trade barriers. Product price has been kept at a low level.’
The company has set up a trade subsidiary in Turkey, a textile hub for both Asia and Europe. Overseas markets accounted for 10% of the company’s revenues in H1 2019.
The company currently has 110kT/year capacity, and claims to be the world’s second largest PU elastane maker after Korea’s Hyosung. Huafon has a 100kT/year project for differentiated products in the pipeline.
It is also planning to absorb the group’s PU resin and polyester polyol subsidiary, Zhejiang Huafon New Materials.
