CHINA: Single fibreglass production line on stream

Chongqing Polycomp International Corporation, which was co-invested by Yuntianhua Group of China (the largest shareholder, 75%), Amiantit Co., Ltd. of Saudi Arabia (the second large shareholder) and t…

Chongqing Polycomp International Corporation, which was co-invested by Yuntianhua Group of China (the largest shareholder, 75%), Amiantit Co., Ltd. of Saudi Arabia (the second large shareholder) and two companies from the US, put an 18 000 t/a high quality fibreglass production line on stream in February. The project started construction in October 2001 with an investment totalling CNY 320 million. Output of fibreglass in the company is expected to reach 22,000 tons this year and over 60,000 tons by 2004. Fibreglass series products have wide applications in manufacturing reinforced plastic (GRP) pipeline, parts and elements of automobiles, integrated circuit (IC) board and even in national defence industry. It is estimated that global annual output surpasses exceeds 2.8 million tons while the annual growth rate ranges from 6 to 8% in the world. The US, France and Japan are the major countries for fibreglass production. There are over 150 fibreglass producers in China with output reaching 230,000 tons each year and three major fibreglass production sites including Chongqing, Zhejiang and Shandong are given support by the country to accelerate development. Experts think that the domestic demand growth rate definitely exceeds 6 to 8% largely due to the start-up of South-to-North Water Diversion Project and rapid expansion of automobile industry and IC industry. Zhang Jiaqing, the board chairman of Chongqing Polycomp International Corp., disclosed that the company plans to expand the capacity to 100,000 t/a by 2005 and ascend the top 10 fibreglass producers in Asia and top 15 producers in the world. By that time, the company will obtain sales revenue approximate CNY 1 billion and profit margin of CNY 100 million or so.