China's largest compounder, Kingfa Science & Technology Co. Ltd., has received approval to issue up to 250 million additional shares of its stock, to raise funds for five new material projects.
The company plans use the proceeds to add 2.7 billion pounds of capacity and transform itself from a plastics compounder to a “multimaterial manufacturer,” Kingfa said in an Aug. 18 statement.
The five new projects include a 1.8 billion-pound-per-year automotive plastics project; a 220 million-pound spray-free, high-gloss ABS project; a 220 million-pound polycarbonate and PC alloy project; a 176 million-pound high-strength nylon project; and a 330 million-pound high-performance recycled-plastics project.
Total investment for these projects is estimated to be 3.82 billion yuan (about $600 million).
Kingfa divested its involvement in the real estate market in the first quarter and refocused on the new-materials industry.