 2015-06-22 |
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Stock News: ACHEM (1715) to Increase OPP Tape Production Capacity to 200 Million Square Meters Within Two Years
[Finance Express News / Reporter Wu Cailian] With oil prices stabilizing, ACHEM (1715) plans to expand its production capacity for OPP film tapes. Monthly production will increase from 170 million square meters to 200 million square meters within two years. For PVC tapes, production will rise from 18 million square meters to 22 million square meters. With the vertical integration effects of the Haian project starting to show, gross margins are expected to improve by 1 to 2 percentage points.
ACHEM is the world's largest supplier of OPP film tapes, accounting for approximately 50% to 55% of its revenue. It currently has a monthly production capacity of 40 million square meters at each of its Zhangbin, Yangmei, Foshan, and Ningbo plants, and an additional 10 million square meters in Vietnam, totaling 170 million square meters. This capacity will be increased to 200 million square meters within the next two years.
Additionally, 25% to 35% of ACHEM's revenue comes from PVC film tapes. Current monthly production capacities are 6 million square meters each at its Taiwan, Dongguan, and Jiading plants. The Haian plant will add 4 million square meters, bringing the total PVC tape production capacity to 22 million square meters.
As for packaging materials, Newzhou (3171) is adjusting its distribution structure in China, focusing on major regions such as East China (Shanghai), Central China (Wuhan), and North China (Tianjin). The company started achieving monthly profitability in the second quarter for its Chinese operations. |
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