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Huazheng New Material Group to invest CNY 50 million in a composite materials project

News International-French

2 Nov 2017

Huazheng New Material group, based in China’s Zhejiang province and listed in the Shanghai Stock Exchange, has announced that its wholly-owned subsidiary Hangzhou Leson Material Co., Ltd. intends to invest CNY 50 million (US$ 7.5 million) to build a project dedicated to produce annually 3,000 tons of composite products.

Huazheng New Material Group to invest CNY 50 million in a composite materials project

The company plans to use long fiber reinforced thermoplastic composite materials (LFT-D) mixing and molding technology to produce LFDT-D thermoplastic composite materials related products.

The announcement said that the successful implementation of the project is expected to create a new profit growth point to increase the company's profitability, enhance the company's core competitiveness and its ability to control risk, and to achieve sustainable and stable development.

Huazheng New Material is mainly engaged in products design, research and development, production and sales of Copper Clad Laminate (CCL), insulating materials and thermoplastic honeycomb panels and other composite materials. In the first three quarters of this year, the company realized revenues of CNY 1,109 million yuan (US$ 167.3 million), up 33.5% compared to the same period of 2016, and achieved net income of CNY 70 million (US$ 10.5 million), up 3.25%. The main reason why the net profit increase is significantly lower than the revenue growth is that the CCL sales cost has increased, in a context of insufficient supply of CCL upstream raw materials. 

The company's performance is expected to further improve in the future, the announcement continues, asserting that LFT-D thermoplastic composites have a good prospect.

“LFT-D rank among the fastest growing materials in the composite industry today, and have many unique advantages, such as high toughness, good impact resistance, stable prepreg, no storage time limit, short manufacturing cycle, good chemical resistance, low moisture absorption rate, repeatable processing, etc. Thermoplastic composites are not only the key materials in high-technologies and cutting-edge technologies, but also important materials in the fields of automobile, electric appliances, new energies, new building materials etc.”