Fuwei Films's Shandong, China, unit gets €10.7M letter of credit to purchase new production line equipment for its thick-film BOPET production
June 24, 2011
Fuwei Films (Holding) Co., Ltd. (NASDAQ: FFHL)("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET films in China, today announced that its wholly-owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei") has obtained a EUR 10.7 million Letter of Credit from Bank of China, Weifang Branch to use towards purchasing new production line equipment, including self-funded 7.37 million EUR and 3.33 million EUR credit line from Bank of China, Weifang Branch.
Fuwei Films previously announced that it entered into a contract with Lindauer Dornier GmbH, a German equipment supplier, to purchase equipment for its thick-film BOPET production. The total amount to purchase the new production line equipment is 16.45 million EUR. Prior to that, a prepayment of 5.08 million EUR has already been made by Shandong Fuwei.
The Chairman and CEO of Fuwei Films, Mr. Xiaoan He, said, "We are very pleased that the Weifang Branch of the Bank of China has extended the credit line that will enable us to proceed with the purchase of the production line equipment from Lindauer Dornier. Now that the major shareholder case has been resolved, banks are showing willingness to extend credit to Fuwei Films. We believe that this is a positive development for supporting our growth plans."
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.