After years of developing wood-plastic composite products, Nanjing Jufeng Advanced Materials Co. Ltd. said its growth has been tied to the demand of the niche market.
The company just added two extrusion lines at its factory in Nanjing, China, in March, bringing the total to 12. ``Our capacity will reach 5,000 metric tons [11 million pounds] this year,'' sales manager Paul Fang said in an interview at the Chinaplas show.
The company commercialized wood composite products in 2002. The annual capacity was still staggering around 1.3 million pounds in 2006 until the market started ``waking up,'' Fang said.
``In 2007, we boosted the capacity to 2,000 metric tons [4.4 million pounds],'' he said, and the expansion continues.
Jufeng exports 60 percent of products to Europe and North America. The Chinese domestic market is catching up, but the models are different.
``Domestic sales are mostly to retailers. They want nice packaging that's ready to go on the shelf. Orders are relatively small,'' Fang said. ``In comparison, export usually requires less packaging and orders come in with much larger quantity.'' Therefore, prices for Chinese domestic buyers are higher than exports.
Fang said the products are highly customized. ``Depending on what the customers want and their price range, we can use either virgin or recycled resin - [polyethylene, polypropylene] or PVC. Up to 95 percent of the raw material can be recycled plastic.''