2013 Nonwovens Sales: $199 million
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.
Xinhua Industrial Garden Niancuopu, Longhu, Jinjiang,Fujian, China
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.