Tsimshatsim, Kowloon, Hong Kong
2014 Nonwovens Sales: $207 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
Jinjiang Fujian, China
Industrial dust filtration materials, differential fiber, functional nonwoven materials, shoe materials, household textiles, decorative construction materials, infrastructure materials, suitcases & packaging material and interiors for automotives.
As of the end 2014, CECEP Costin New Materials Group operated 17 stitchbonded nonwoven lines and nine needlepunching lines with annual production capacity of approximately 103 million yards and 57 million yards, respectively.
In 2014, CECEP generated $207 million in sales, which was down from $256 million in 2013. The decline is blamed on the economic slowdown and currency fluctuations, but CECEP still remains as one of the leading players in the Chinese nonwovens industry.
Under the new economic environment, the market demand for renewed chemical fibers and nonwoven roll goods was down, while labor costs and other costs relevant to production increased rapidly. Also, the industry-wide overcapacity and fierce competition further worsened the business climate.
Sales volumes and turnover of the company’s nonwoven materials dropped by approximately 1.7% and 15.4%, respectively, compared to 2013. However, the company did benefit from the rise in sales volume of products with higher gross profit margin, which increased by 37.4%.
In 2014, CECEP continued to strengthen its cooperation with Coroplast Fritz Muller, a German company, and sales of stitch-bonded wiring tapes for middle and high-end automobiles increased 206% to approximately $2.5 million. As a result, the company has established a long-term supply relationship with the German company. The current production capacity of stitch-bonded wiring tapes amounted to approximately five million square meters. CECEP plans to expand the capacity of stitch-bonded wiring tapes to 15 million square meters this year.
In 2014, CECEP had three lines producing thermal resistant filtration materials with an annual production capacity of about 21 million square meters. In 2014, sales volumes of thermal resistant filtration materials were about 2.5 million square meters, an increase of approximately 63%, while turnover amounted to approximately $15.7 million, representing an increase of about 40%.