Hailide New Material Invests RMB657 mln for Capacity Expansion

The 31th session of the fifth board of Zhejiang Hailide New Material deliberated and passed the Agenda on Technical Innovation for 40,000 Tons of Automotive Industrial Yarn and 30,000 Tons of High-performance Tire Builder Fabric.

To adapt to market development of the company’s automotive industrial yarn andpolyester tire builder fabric, Hailide plans to buy a variety of advanced imported equipment to expand the annual capacity of automotive industrial yarn to 40,000 tons and that of polyester tire builder fabric to 30,000 tons through technical innovation. The capital to be used by the program will be raised by the company itself with no affiliate transaction nor significant asset restructuring.

The project will be constructed in the west part of Hailide’s plant area in Jianshan New Area of Haining, Zhejiang province, and the new built-up area will be 11,149 square meters. Upon completion of the project, Hailide’s annual capacity of automotive industrial yarn and polyester tire builder fabric will reach 40,000 tons and 30,000 tons, respectively.

The construction is expected to last three years with an overall investment of 657 million yuan, including new fixed asset investment of 617 million yuan (foreign exchange of 37.5 million dollars included) and minimum cash balance of 40 million yuan.