ZHUHAI, CHINA (Aug. 18, 3:55 p.m. ET) — China's largest compounder, Kingfa Science & Technology Co. Ltd., has received approval to issue up to 250 million additional shares, in order to invest in five new material projects.
The company plans use the proceeds to add 1.23 million metric tons of capacity and transform itself from a plastics compounder to a “multi-material manufacturer,” Kingfa said in an Aug. 18 announcement.
The five new projects include an 800,000 metric ton per year automotive plastics project, a 100,000 metric ton spray-free, high-gloss ABS project, a 100,000 metric ton polycarbonate and PC alloy project, an 80,000 metric ton high-strength nylon project, and a 150,000 metric ton high-performance recycled plastics project.
Total investment for these projects is estimated to be 3.833 billion yuan (about $600 million).
Kingfa divested its involvement in the real estate market in the first quarter, refocusing on the new materials industry.
First half profit reached 699 million yuan (about $109.5 million), a 260 percent increase compared to the same period last year.
