Guanwei Recycling Corp has reported an increase in third quarter sales of LDPE due to strong demand and its plans to buy more material direct from Europe.
The company, which is China’s leading clean tech manufacturer of LDPE, reported strong demand for plastics in China, which led to a 28 per cent year on year increase in Q3 sales.
However, higher raw material costs, increased remuneration costs for staff and higher depreciation expenses led to an approximately 5 per cent decline in year on year net income. Through the first nine months of the year, net income was up 29 per cent on a 39 per cent gain in revenues which included a 48 per cent increase in sales of manufactured recycled LDPE.
2011 Q3 net income was $3,375,758 (£2,123,118) compared with $3,547,997 (£2,231,444) in the same period in 2010.
It also reported that its average selling price for recycled LDPE was $1,199 (£754) per tonne in the third quarter compared to $1,109 (£697) in Q3 2010.
Guanwei Recycling Corp chairman and chief executive Chen Min said: “We were pleased with our continued strong revenue growth in the third quarter and anticipate the strong domestic demand for recycled LDPE underlying this growth will continue for the foreseeable future and translate to another year of record results for our company.
“We nevertheless continue to have our work cut out for us in order to reduce costs and increase profit margins. We remain focused on developing relationships with new suppliers and increasing direct purchase of raw materials from European plastics waste suppliers.
“We strongly believe our environmental leadership as a zero discharge manufacturer positions us well to accomplish this, while at the same time, we contribute to a better quality of life in our society. We also continue to focus on expanding our production capacity in a difficult environment for financing, and will move ahead as quickly as possible when we determine the most appropriate course of action.”