Taizhou, China – China’s largest rubber belt exporter Zhejiang Sanwei Rubber Item went public on the Shanghai Stock Exchange in December.
Capital raised in the IPO will be pumped into a specialty conveyor belt project with 7 million square metre annual capacity and 183 million yuan (€25 million) investment earmarked, said Sanwei’s prospectus.
The project has received regulatory approval and construction is predicted to take one year to complete.
Set up in 1990 in Taizhou, Zhejiang, Sanwei covers a total area of 180,000 square metres and employs more than 1,300 staff with a portfolio of 230 products.
Today the company has 25 million square metre annual capacity for rubber conveyor belt and 200 million meter for V belt (equivalent to A type belt’s cross sectional area), Sanwei told ERJ.
The company aims to up its conveyor belt capacity to 38 million square metre per year within 2017.
Last year Sanwei reported €12 million net profit on €104 million revenue, 26% of which came from exports. It expects to see an up to 15 percent drop in net profit this year on stable revenue.