Such projects include a new specialty conveyor belt plant with 5 million square metre annual capacity and 49 million yuan €6.5 million investment, upgrading specialty machinery with €4.7 million investment, and relocating existing facilities with €21.4 million investment. Sanwei also put aside additional €4 million floating capital.
The relocation project, consisting of 5 million square metre annual capacity for automobile raw edge V belt and 200 million meter for V belt (equivalent to A type belt’s cross sectional area), broke ground in May.
The three projects are slated to come on stream in two years and generate €8 million annual profit on €93 million revenue, said Sanwei’s statement.
“China is the world’s largest single country market for both rubber belt production and consumption. It is also one of the fastest growing markets,” said the statement. The sector is expected to be increasingly concentrated over the next few years, it added.
The company’s current overall annual capacity also includes additional 10 million square metres for automotive raw edge V belt and 25 million square metres for rubber conveyor belt. It was China’s second largest V belt maker in 2017.