CHONGQING, CHINA (May 25, 1:15 p.m. ET) — Chinese plastic pipe and fitting manufacturer Fujian Aton Advanced Materials Technology Co. Ltd. is building three new factories in China's west and southwest, in Xinjiang, Sichuan and Yunnan provinces, to be closer to growth in those areas.
The Fuzhou, Fujian province-based company is investing between 70 million and 80 million Chinese yuan ($11 million to $12.7 million) on each of the three factories, which are expected to start operating this year, said Chen Li Hui, vice chairman and general manager.
The Sichuan factory is already operating while the other two will be operational this year, he said in a May 24 interview at the Beijing-based China Plastics Piping Association's annual meeting in the western Chinese city of Chongqing.
The new factories are part of investments that will add about 25 percent to the company's production capacity, he said.
Chen, who is also a director at the CPPA, said the pipe industry is seeing growth from urbanization in China, including natural gas, electricity and water supply infrastructure, and from additional spending in rural areas, including in irrigation and water conservation project.
The company has developed more than 20 new products from cooperation and licensing agreements with both European pipe companies and various research institutes, including the China Science Institute, China Agriculture University and Beijing Chemical University, according to the company's website.