In 2013, 20 major production facilities are scheduled to undergo major overhauls and will be out of action for most of the year. 16 of these facilities are located in China. China Monitor is therefore forecasting that with this deceased supply, there will be both an increase in capacity utilization and prices. Profits and cash flow may lag as a result of the investments that are being made in new facilities like Jushi USA.
China's largest fiberglass manufacture China Fiberglass Co., Ltd. said recently that its wholly owned subsidiary Jushi Group Co. Ltd. plans to establish Jushi USA Fiberglass Co., Ltd. and invest USD 330 mn (approximately RMB 2 bn) in an alkali-free fiberglass kiln wire drawing project, with an annual production capacity of 100,000 metric tons (mt). The project is to be completed 18 months after it kicks off in 2013. When it’s up and running, it is expected to generate estimated annual sales and profits of USD 134 mn and USD 26.03 mn, respectively.
China Fiberglass Fully Controls Jushi Group
2007 China Fiberglass Co. Ltd. to acquire shares from Jushi Group Co. Ltd. The company will issue 250 million domestic shares to acquire the 49% held by other shareholders of Jushi Group.