Chinese compounder Kingfa Science & Technology Co. Ltd. is increasing its production capacity in Shanghai from 26 million to 40 million pounds.
The Guangzhou, China-based industry leader said it will complete the expansion by January to accommodate rapidly growing market demand in eastern China, centering around Shanghai.
``In addition to traditional industries such as appliances and auto, many new customers come from the [information technology] industry,'' said Jiliang Ji, managing deputy general manager of Kingfa's Shanghai brand, Shanghai Kingfa Science & Technology Co. Ltd. He spoke at the recent APPLAS show in Shanghai.
About 100 jobs will be added, he said.
Publicly held Kingfa has plants in Shanghai, Mianyang and Guangzhou, respectively in east, southwest and southeast China. Total capacity tops 1 billion pounds.
About 40 percent of overall company sales come from polypropylene compounds, but the percentage is around 30 percent for the Shanghai branch, he said.
While other Chinese compounders at APPLAS reported relatively slow growth because of continuous resin price hikes and heated competition, Kingfa expects to maintain its growth.
Ji also said Kingfa officials are considering building a plant in Dalian, China.
``The Dalian plant will use the same model of development path as the Shanghai facility,'' he said.
Kingfa generated no sales in Shanghai until 2001 and only launched the compounding facility in 2004.
The Shanghai operation, which currently employs 700, expects to see $203.5 million in sales for 2007, up about 50 percent from the year before, Ji said.