China Fiberglass Co. aims to enter world top three

China Fiberglass Co., Ltd. achieved a main-business revenue of CNY 1,093.19 million from the beginning of 2005 to the end of the 3Q, up 34.29% over the same period of 2004, a main-business profit of C…

China Fiberglass Co., Ltd. achieved a main-business revenue of CNY 1,093.19 million from the beginning of 2005 to the end of the 3Q, up 34.29% over the same period of 2004, a main-business profit of CNY 342.1889 million, up 44.4%, and a net profit of CNY 103.1071 million, up 71.6%. The firm“s fiberglass production capacity rose from 150,000 tonnes/annum in 2004 to 210,000 tonnes/annum in 2005, an increase of 40% and it is expected to reach more than 300,000 tonnes/annum in 2006. According to the latest projections, the average annual growth of world fiberglass capacity will be maintained at around 5% for a considerable time to come. The growth rate in the United States is expected to be 2.5% from 2002 to 2007 and output will reach 1.27 million tons in 2007. At 7%, the Asian growth rate will be much higher than the US and higher even than the 4% growth rate in Europe. Composite annual growth of fiberglass capacity in China was 8.6% between 1990 to 2000 and reached 34% from 2001 to 2004. China Fiberglass Co., Ltd. has a total fiberglass capacity of 210,000 tonnes/annum in Tongxiang, Jiujiang, Jiangxi province and Chengdu, Sichuan province. For its follow-up capacity expansion, the company is building an alkali-free production line with two units of 80,000 and 20,000 tonnes/annum in Tongxiang, which is expected to start up in February 2006. Following that, Alkali-free production lines will also be constructed in Jiujiang and Chengdu and the capacity at each site will be 100,000 tonnes/annum. Also under construction is a 50 million sq meter/annum electronic fabric project. The company is aiming for a fiberglass capacity of 500 000 tonnes/annum which would make it one of the world“s top three producers. Building work on the 80,000 + 20,000 Tongxiang tank-furnace drawing project is already complete and equipment installation is in progress. The 80,000 tonnes/annum line will make products such as SMC twist-less roving, transparent sheet yarn, jet twist-less roving and TP chopped grey yarn. The 20,000 tonnes/annum unit is an environmental protection project. Through the upgrading of production equipment and the use of advanced technology and equipment, the capacity of the 40,000 tonnes/annum alkali-free tank-furnace drawing production line that started production in September 2004 has now reached 60,000 tonnes/annum. Piling work on the 50 million sq meter/annum electronic fabric Chinese-German joint venture project has already begun. The Chinese side of the venture provides the fiberglass yarn technology and the German side provides the electronic fabric technology. The project will start production in the 2H of 2006. The manufacturer scales its production strictly according to demand. The production plan for 2006 was made on the basis of the annual sales meeting held in Tongxiang in October 2005.