Jiaxing, Zhejiang –Double Arrow Rubber, a leading conveyor belt maker in China, is to raise up to €67 million (514 million yuan) through convertible bonds to fund its new production plant, currently under construction in Jiaxing.
The issuance obtained regulatory approval on 2 August, said a company announcement.
The plant broke ground last October and is slated to come on stream by early 2022. It has €72 million investment and will be able to produce 15 million square metre high strength, eco-friendly conveyor belt each year.
The plant is located in the company’s headquarters city of Jiaxing, covering 30,000 total area. It is managed by Double Arrow’s fully owned subsidiary Tongxiang Desheng Rubber Belt.
Double Arrow currently has the capacity to manufacture 65 million square metres of belt per year, and recorded a 95% utilisation rate in 2020. The company has an additional 25 million square metres of annual capacity in onging projects, and aims to raise its conveyor belt capacity to 150 square metre by the end of 2025.
The firm posted €237 million revenue for last year, up 19% from 2019. Net profit was up by 27% to €41 million.