Hong Kong, Mar 19, 2014 - (ACN Newswire) - China Lumena New Materials Corp. ("Lumena" or the "Company", together with its subsidiaries collectively known as "the Group", Stock Code: 67), the world's largest PPS resin producer* and one of the largest thenardite producers**, announces that its expanding 25,000-tonne PPS resin production line under construction will be completed soon in spite of the complexity of technical know-how and facilities. The plant will commence trial production on 19 June, increasing the PPS resin production capacity of the Group to 55,000 tonnes, which will boost the sales volume and revenue significantly in the future.
Following more demanding environmental requirements and specifications will be raised for various industries, the Group expects to see huge potential in the PPS demand. As a result, the Group will further expand the production capacity of PPS resin, 80% of which will be used to produce environmentally friendly products. Therefore, the proportion of environmentally friendly products will significantly increase in the Group's product mix, wherein the production capacity of PPS fibre will be tripled. The Group will also follow up with the construction of another PPS resin production line in 2014, in order to further expand the production of PPS and to meet the demand of the market.
According to the latest market research report issued by the independent research institute IHS Chemical, the PRC's demand for PPS will continue to rise in the next few years, so the market is in short supply. It is expected that from 2012 to 2017, the total PPS demand in the PRC will grow by 13% annually. Moreover, the bar for entry into the PPS sector is high, so PPS manufacturers in the PRC market face less competition. Hence, we believe there is still ample room for the expansion in the domestic PPS industry.
Mr. Zhang Zhigang, Executive Director and Chairman of Lumena said, "The Group's products are among the top list of world's advanced science and technology products, which have been used for many cutting-edge technology products supported by the central government's policies. As a result, our products have been in short supply and the market potential is huge. We will leverage on the government supports for the industry of PPS, which is listed as principal strategic new material under the 'Twelfth Five-Year Plan', to utilize its existing competitive advantages and explore new development opportunities, so as to contribute to the country and bring optimal returns to our shareholders."
A great number of cities were seriously disturbed by the haze problem. The PRC government has been actively implementing environmental policies and raised more demanding requirements and specifications on environmental protection of various industries, which has boosted demand for PPS. Recently, at the executive meeting held on 12 February 2014, the State Council set up a special fund, explicitly stating that the central government will invest RMB10 billion in addressing the "haze" problem. The promulgation of policies and the financial input demonstrate the PRC government's determination to combat atmospheric pollution. In addition, the National Development and Reform Commission issued Guiding Catalogue of Key Products and Services in Strategic Emerging Industries in 2013 to implement the Decision of the State Council on Accelerating the Fostering and Development of Strategic Emerging Industries, wherein PPS resin, PPS fibre and PPS filter cloth are recognized as the key products in the new materials and environmental protection industries. It is expected that the state's promulgation of environmental protection policies and active support for environmentally friendly industries and the new materials industry will vigorously drive PPS demands, which is conducive to the stable development of the Group's businesses in the long run.
About China Lumena New Materials Corp. (Stock code: 67)As a leading new materials enterprise in the PRC, Lumena is the world's largest PPS resin producer* and one of the world's leading thenardite producers**. PPS is a special engineering thermoplastic widely used in electrical and electronic, automotive, rail transportation, environmental protection and emission reduction, aeronautics and astronautics, and coatings applications, etc. It has been listed as one of the new materials to be developed and supported by the PRC government in its Twelfth Five-Year Plan. The Group manufactures, develops and sells PPS resin, PPS compounds and PPS fibre. Equipped with the world's largest single line production facility, the Group produces high quality thenardite products such as medical thenardite and industrial-grade thenardite. It is the only approved and certified producer of medical thernadite in the PRC.
* In terms of production capacity as of 31 December, 2012, according to IHS Chemical. (formerly known as SRI Consulting), an independent research institute** In terms of production capacity as of 31 December 2010, according to Behre Dolbear & Company (USA) Inc., an independent market research consultant
Source: China Lumena New Materials Corp.
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