Demand hike prompts Chinese firm to triple battery separator film capacity

By Nina Ying Sun
Assistant Managing Editor

Published: June 17, 2014 3:29 pm ET
Updated: June 17, 2014 3:31 pm ET

Related to this story

Topics Sustainability, China, Electronics, Film & Sheet

In response to soaring demand, Cangzhou Mingzhu Plastic Co. Ltd. plans to invest about 245.9 million yuan ($39.4 million) to build additional capacity for separator film for lithium-ion batteries.

Chairman Yu Lixin told investors last week that the company sees significant growth for its battery separator film business this year. He said its customer, battery maker BYD Co. Ltd., has been increasing output in recent few months and it will have a positive impact on Cangzhou Mingzhu.

Cangzhou Mingzhu's sales of battery separator film jumped by 90 percent in 2013, reaching 50.2 million yuan. It currently has an annual capacity of 20 million square meters of battery separator film and produced about 13 million square meters in 2013.

The planned expansion includes a dry process project of 20 million square meters of annual capacity and a wet process project of 25 million square meters.

The dry process project will take 12 months to build and an investment of 87.4 million yuan ($13.9 million). It is estimated to generate 86 million yuan ($13.8 million) of annual sales and 23.35 million yuan ($3.7 million) of net profit.

The wet process project will take 18 months to build with an investment of 158.5 million yuan ($25.5 million). The company expects it to generate 130 million yuan of annual sales and 32.6 million yuan of net profit.

The company last week announced plans to raise the fund for the expansion through non-public offering of shares.

It also plans to raise 80 million yuan ($12.8 million) to inject cash into two ongoing expansion projects: a 15,000-metric-ton-per-year polyethylene pipe project and a 5,500 metric ton biaxially oriented nylon film project.

The company currently has 90,000 tons of PE pipe capacity and 23,000 tons of nylon film capacity.

The company posted 1.98 billion yuan ($317.9 million) of sales in 2013 with 150 million yuan ($24 million) of net profit. In the first quarter of 2014, sales came in at 370 million yuan ($59.4 million) and net profit 21.8 million yuan ($3.5 million).

Cangzhou Mingzhu, a joint venture between Hebei Cangzhou Dongsu Group Co. Ltd. and Hong Kong Juhong Co. Ltd., is publicly listed on the Shenzhen Stock Exchange.


Comments

Demand hike prompts Chinese firm to triple battery separator film capacity

By Nina Ying Sun
Assistant Managing Editor

Published: June 17, 2014 3:29 pm ET
Updated: June 17, 2014 3:31 pm ET

Post Your Comments


Back to story


More stories

PE suppliers go after oxo-biodegradable technology in Mexico

July 31, 2014 1:12 pm ET

Mexican industry defends itself, calling claims 'misleading'    More

Bioplastic created using rice starch

July 31, 2014 10:40 am ET

The new transparent, biodegradable material has a high degree of mechanical strength and good thermal resistance.    More

Image

Keep up with China's rapid changes

July 31, 2014 10:33 am ET

In many ways, 1989 was a very special year in history. Plastics News was launched in Akron. Half a world away, China was trying to carry on economic...    More

Image

Plastics News Now: PVC pipe used to help repel sharks from beaches

July 31, 2014 6:00 am ET

Also, we visit Nicolet Plastics which is using a unique employee structure, and Washington D.C. bans polystyrene.    More

Image

DC banning PS foam containers

July 30, 2014 2:34 pm ET

Washington D.C. Mayor Vincent Gray signed into law on July 29 a bill that will ban polystyrene foam food and drink containers from the District.    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

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