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March 01, 2016 01:00 AM

China's Sinoma enters battery film separator market

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    Sinoma Science & Technology Co. Ltd. is charging into the battery separator film business and has already placed a large equipment order for the new project.

    The company plans to build annual capacity of 200 million square meters of lithium ion battery separator film in Tengzhou, Shandong province. The project claims a total investment of 940 million yuan and is scheduled to start construction in March. Production is expected to launch by the end of 2017.

    Sinoma has ordered two production lines for 4-meter-wide film from Dalian Rubber & Plastics Machinery Co. Ltd. The latter will also provide related engineering and factory design services. The deal is valued at 277.9 million yuan ($42.4 million).

    In addition, Sinoma also plans to install two production lines imported from Japan to "prevent technological risks," it said in a filing.

    Analysts' reports cited "explosive growth" in the battery separator film market from now to 2020, with an industry estimate of 70 percent compound annual growth rate. Reports also said China currently imports 90 percent of the battery separator film used in power batteries.

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