Chinese polypropylene recycler Novarise opens new facility

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 6, 2013 11:48 am ET
Updated: March 6, 2013 11:54 am ET

Related to this story

Topics Materials, Sustainability, Recycling, Materials Suppliers

QUANZHOU, CHINA — Chinese polypropylene recycler Novarise Renewable Resources International Ltd. is looking to a new factory to improve its profit margins, after the company said revenue rose modestly in 2012 and profits remained basically flat.

The Quanzhou based company, which is traded in Australia, said in a Feb. 28 financial report that revenue rose 2.6 percent to A$82.4 million (524.6 million Chinese yuan), while after tax profits declined less than one-tenth of a percent to A$16.9 million (107.6 million yuan), mainly because of higher tax bills.

The company in November began operating the first of eight planned production lines at its new factory in Nan 'an, Fujian province, and said it expects to phase in the remaining lines by early 2014, giving it 200,000 tons of capacity for making products from recycled PP.

It said it expects the new facility to improve profits.

"Gross margins of Novarise's products are expected to improve with the introduction of new production from the Nan 'an facility in 2013," the company said. "This will include new finished products with higher margins and the lowering of costs through economies of scale, manufacturing and process improvements."

The company said it began last year manufacturing finished products from PP yarn and fiber, including computer bags, shopping bags and clothing, expanding from its traditional recycling business. It said it expects strong demand for its products.

"Overall demand for PP yarn expanded in China and internationally in 2012, driven by stronger global demands and rising consumer awareness for green products," it said. "Demand and market acceptance of Novarise's recycled products are expected to grow in China and internationally as governments and consumer behavior… encourage the wider use of green PP products such as green shopping bags."

The company said it also last year was named as a national manufacturing and research and development base for renewable polypropylene products in China. The company said its PP fibers are used to produce bags and other products for global brands including Dell, IBM and Samsonite.

The new facility had been scheduled to start operating in April 2011, but Novarise said it was delayed for two reasons: one, Nan 'an is in a "mountainous area where the rainy season is relatively long, for which the Group did not take into account" and two, construction companies involved in the project changed management frequently.


Comments

Chinese polypropylene recycler Novarise opens new facility

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 6, 2013 11:48 am ET
Updated: March 6, 2013 11:54 am ET

Post Your Comments


Back to story


More stories

Image

Evonik sells polyimide foams operation to Boyd

July 29, 2014 10:46 am ET

Modesto, Calif.-based Boyd Corp., a manufacturers of specialty material and sealing agents, has purchased Evonik Industries’...    More

Image

Formosa to be compensated for Vietnam riot

July 28, 2014 1:44 pm ET

Taiwan's Formosa Plastics Group will receive $2.39 million from the Vietnamese government and insurance companies for damages suffered during the...    More

Image

Material Insights: Bioplastics firms win government funding

July 28, 2014 12:51 pm ET

Also this week, a study takes a look plastic at the ocean surface and comes away with a surprise finding, and new materials capacity announced.    More

Image

Ukraine's Group DF may be forced to sell Crimea-based additives plant

July 28, 2014 10:12 am ET

Group DF, the industrial business of Ukrainian tycoon Dmitry Firtash, may be forced to sell off Eastern Europe's biggest producer of titanium oxide,...    More

Image

DuPont resins help take Nike golf balls 'Fore!'ward

July 25, 2014 1:07 pm ET

It may be difficult to imagine just how much science, not to mention rubber and plastic components, go into a golf ball. But global giant DuPont Co. b...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events