Ningde, Fujian – Huide New Materials started the first phase of its plant for PU resin, TPU and other products on 18 June.
Fujian Huidong Construction Engineering is the contractor. Planning applications were filed in 2016 and ground was broken in March 2018. The total investment is expected to cost $64 million (€56 million). Phase one has received $40.5 million.
The first phase will have an annual production capacity of 100,000 tonnes of PU resin, 20,000 tonnes of TPU elastomer, 10,000 tonnes modified PU systems and 5,000 tonnes of water-based PU.
Phase two will take another 12 months, the company said. This second phase will increase the plant's annual capacity to 100,000 tonnes of PU resin, 50,000 tonnes of TPU elastomer, 20,000 tonnes of modified PU systems and 10,000 tonnes of water-based PU.
The project is expected to create 315 jobs when in full operation, and generate $24.16 million in annual gross profit on $330 million in sales.
Huide New Materials is a fully owned subsidiary of Shanghai-headquartered Huide Science and Technology, which went public in 2018. Last year, the parent group sold 1.09 million tonnes of PU resin for leather, 3,800 tonnes of TPU resin and 18,800 tonnes of polyester polyol.
In first quarter 2020, the group recorded $30.17 million in revenue, down by 31% from a year ago. Net profit shrank by a third to $2.57 million.