Guanwei Recycling has revealed a 107 per cent gain in net income on a 73 per cent revenue increase in the second quarter of 2011.
It said that strong demand for recycled LDPE within China coupled with higher selling prices helped it to generate record results in the quarter and the half year to 30 June.
Revenues increased to $15.76 million (£9.8 million) in Q2 2011 from $9.12 million (£5.66 million) in the same period a year earlier with net income of $3.45 million (£2.14 million).
In its results statement Guanwei Recycling, which it says is China’s leading clean tech manufacturer of recycled LDPE, said: “During the quarter, the company maintained its competitive advantage over other producers with its ability to utilise high quality imported plastic waste in its manufacturing process as a consequence of meeting and exceeding the rigorous environmental standards demanded by European exporters of the material.”
It also revealed that the average selling price of recycled LDPE in the quarter was up 12.5 per cent to $1,172 (£728) per tonne from $1,042 (£647) per tonne in the previous quarter.
The company also said that in July it had been given permission from the Chinese government to increase its import quota for LDPE from 59,000 tonnes to 99,000 tonnes per year. It expects to increase this next year to 185,000 tonnes.
Guanwei Recycling chairman and chief executive Chen Min said: “Our growth in the quarter and through the first half of the year again demonstrates the very strong demand in China for our recycled LDPE which is used as a direct substitute for virgin plastic or blended with it to lower manufacturing costs.
“It should be noted that the upgrade of our facilities in the first half of 2010 reduced somewhat our production in that period, but the resulting enhancements to our product have contributed to our success this year and will continue to facilitate future growth.
“The expansion of our import quota certainly was the most significant event so far this year, positioning us to meet the strong and growing demand for our product over the foreseeable future.
“At the same time, we remain focused on expanding our sources of supply for high quality imported plastic waste to lower our costs and maintain healthy margins. Our leadership in environmentally friendly manufacturing will ensure continued access to this material while permitting us to make an important contribution to improving the quality of life in our society.
“Another top priority is an expansion of our production capacity, which currently is 65,000 tonnes annually. Given our strong performance and healthy financial position, we have options available that we continue to study in order to determine the best course going forward.”