CECEP Costin New Materials Group

Tsimshatsui, Kowloon, Hong Kong
2012 Nonwovens Sales: $256 million
Key Personnel: Chim Wai Shing (Jackson), CEO; Chan Kwok Yuen (Elvis), CFO
Plant Locations: Xinhua Industrial Garden Niancuopu, Longhu, Jinjiang,Fujian, China
Processes: Needlepunch, stitch-bonded
Major Markets: Filter material, Nonwovenfabric, Chemical fabric, home textile, textile materials etc.
CECEP Costin New Materials Group Ltd. is China’s first nonwovens producer to be listed on the Hong Kong Stock Exchange’s IPO Main Board. Described as “a pioneer in the nonwoven materials industry, committed to using advanced and innovative technology for the production of nonwoven materials,” CECEP Costin is China’s first nonwovens maker to receive the “carbon footprint” certificate, and is a SCS Recycled Environmental Protection certified enterprise, and entitled as Fabric China Pioneer Plant of Environmentally-friendly Filtering Materials, Top 500 Enterprises of Textile and Apparel Industry, Top 10 Enterprises of Tec-textile Industry.
The company’s headquarters is located in Hong Kong, its manufacturing base is located in Jinjiang City, Fujian province, and its industry consultation division is located in Beijing. In April 2012, the company joined CECEP, which is the only state-owned enterprise engaged in energy conservation and environment protection.
CECEP Costin’s two pillar industries are the production of recycled chemical fiber using renewable materials and three-dimensional nonwoven materials through clean manufacturing processes.
The company has two first-class production lines for differential fiber, which consume 53,000 tons of solid plastic waste and produces 42,000 tons of functional polyester staple fiber annually. All products are made from recycled PET bottles and polyester waste. The main production process includes feeding, drying, high temperature extrusion by melting, spinning, condensing, storing, clustering, stretching, curling, relaxation heat setting, cutting and packaging. The quality of the variety of products is consistent and complete due to several technology patents in fiber development and the production of materials that are anti-UV, permanent antibacterial deodorant, antistatic, thermal with moisture-permeability, electromagnetic radiation grade owned by CECEP Costin.
CECEP Costin’s nonwoven materials segment operates 12 needlepunch lines and 17 stitchbonding production lines, which were supplied from German, Taiwanese and domestic suppliers. Together, these lines can produce 181 million yards of annual production capacity.
The group’s production facility includs the world’s most advanced equipment in the industrial fi ltration material industry, including two Dilo needlepunching lines, one fiberglass production line, one Brückner thermal setting line, one Osthoff singeing line and two sets of automatic keilmann sewing lines, which combine for an annual production capacity of 21 million square meters of industrial filtration materials.
The group also has seven production lines for finishing process including thermal setting, coating, pigment, etc. with an annual treatment capacity of up to 80 million yards. The major production processes include bale-opening, blending, carding, crosslapping, needlepunching or stitch bonding, calendering, winding and finishing processes. The company’s manufacturing processes are transitive and can be assigned for different features and physical properties, require little labor and are effective in energy conservation and emission reduction.
Tsimshatsui, Kowloon, Hong Kong
2013 Nonwovens Sales: $199 million

Key Personnel
Yu Heping, co-chairman and executive director; Chim Wai Kong, co-chairman and executive director; Chim Wai Shing Jackson, CEO and executive director; Xue Mangmang, executive director; Chan Kwok Yuen Elvis, CFO and company secretary; Ji Li Quan, COO.

Plant Locations
Xinhua Industrial Garden Niancuopu, Longhu, Jinjiang,Fujian, China

Needlepunch, stitchbond

Major Markets
Footwear materials, functional nonwoven fabrics, interior decoration materials for automobiles, consumables for heavy industry, luggage, and filtration materials

The nonwovens roll goods business of CECEP Costin New Materials Group increased 2.87%, to RMB1226.9million, or nearly $200 million, in 2013. Driven by the more profitable products sales, the company also enjoyed a 2.3% gross margin growth in the same period.

Currently, the company operates 17 stitch bonding lines and 9 needle punching lines, which produced 103 million yards and 57 million yards respectively in2013.

The nonwovens industry in China is facing difficulties that started in the second half of 2013, and are characterized by higher labor costs, fluctuating raw material prices, overcapacity in the industry, and the general slow down of the macro economy. All are key factors to blame for this situation.

However, the company keeps growing by optimizing product structures with an emphasis on developing more profitable goods. Supplying renewable synthetic fibers for its nonwovens as raw materials also helps save costs and increase profit. At the same time, CECEP Costin is shifting from its original consumer market focused strategy to the industrial market, a measure the company believes will facilitate its nonwoven business future growth.

The company is looking to the automotive sector as a major focus of upgrading its nonwovens business moving forward. In 2013, CECEP Costin started a cooperation with Coroplast in Germany, a global automotive wiring harness leader. The company says this marks a milestone for it to expand its presence in the technical textile industry.

In addition, CECEP Costin says there is tremendous opportunity in shoe materials. Six billion pairs of shoes are produced in China every year, which will benefit the company due to its close location to the so-called “Shoe-making Capital in China.”

Other high value added nonwovens products that CECEP Costin will focus on also include nonwovens for construction, composite nonwovens, geotextiles, automotive interiors, high-temperature and filtration materials. At the same time, the company says it is putting more emphasis on renewable, environmentally-friendly and diversified raw material sources.