China Green Material eyes 160% capacity increase with new facility
China Green Material Technologies, Inc. (OTBB: CAGM) has acquired a new
manufacturing facility and plans to relocate in May this year, expanding
its capacity by 160%
as market demand for its bio degradable tableware
continues to increase, warranting an expansion of the business.
The
facility is located in the Harbin Economic and Technological
Development Zone, spanning over 15,000 sq m (square meters) with 5
production lines and a total capacity of 22,000 t (tonnes) compared to
the company's current capacity of 8,800 tonnes. The new fully automatic
packaging line will boost the packaging capacity by 200% compared with
the original half automatic line, while the energy consumption and the
rejection rate of the new equipment are expected to decline 30% and 50%
respectively.
The company said this will positively impact the
overall quality and stability of the product and cut costs.
“As a
result of the continued increase in market demand for our starch-based
biodegradable tableware products, we are taking the appropriate steps to
rapidly expand our production capacity to accommodate our growing
business. We believe this enhanced, more efficient operating platform
ideally positions us to benefit from favorable macro environmental
policy and leverages growing customer awareness and preferences for our
environmental-friendly products,” said Chief Executive of CAGM Su
Zhonghao.
Earlier this month, the CGMT secured a US$6.0 million
contract from Zhengzhou Synear Food Co (SGX: SYNF) to supply
biodegradable packaging for frozen food products during 2010.
China
Green manufactures various disposable tableware consumer goods,
including cups, plates, bowls, knives, forks, and spoons, as well as
food package and containers used. The company has submitted two separate
patent applications for its proprietary biodegradable food packaging
material.
Related news
- Peninsula Energy chairman talks to Proactive Investors in Stocktube Video
- Empire Energy Group hits oil production milestone in Appalachia
- Aminex and Solo Oil to carry out further analysis on Ntorya-1 well
- Angel Biotechnology shares surge as it reveals new contracts worth total of £4.5mln
- Pan Pacific Aggregates secures £2m facility from Yorkville Advisors
- Sunrise Resources reveals high grade results from Derryginagh barite project – UPDATE
- Red Rock Resources acquires option in Kansai Mining
