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 Sustainability, Materials, 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

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in...    More

Image

Bayer PC used for lightweight, durable luggage collection

July 24, 2014 10:52 am ET

Bayer MaterialScience has partnered with U.S.-based travel goods manufacturer Andiamo Luggage LLC to create a special plastic for suitcases that is...    More

Image

Study: 100 times less plastic than expected polluting ocean surface

July 23, 2014 3:46 pm ET

There's as much as 100 times less plastic floating on surface of the world's oceans than would be expected given the mushrooming use of the material...    More

Image

Asia to remain chemical giant but US shale will bring competition

July 23, 2014 1:00 pm ET

A new IHS Chemical report on global spending for chemical production predicts capacity additions will peak in 2014 at $120 billion and then will...    More

Image

DuPont quarterly sales drop, income rises

July 23, 2014 12:46 pm ET

DuPont Co.'s sales and net income experienced slight changes for the second quarter 2014, as operating earnings dropped to $1.17 per share in the seco...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

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

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

More Events