Fuwei Films to purchase 16.45M of equipment from Germany's Lindauer Dornier for its BOPET production line in Shandong Province, China; delivery expected June 2 to July 14, 2012; operations slated to begin by end of 2012
April 1, 2011
– Fuwei Films (Holdings) Co., Ltd. (Nasdaq:FFHL - News) ("Fuwei" or the "Company"), a manufacturer and distributor of high-quality BOPET films in China, today announced that its subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei") has entered into a contract with Lindauer Dornier GmbH ("Lindauer Dornier GmbH"), a German equipment supplier, to purchase equipment for its previously disclosed thick film BOPET production line on March 30, 2011 in Weifang City, Shandong Province, China.
The products of the new production line, with a designed annual capacity of 23,000 metric tons and thickness ranging from 38 to 250um, will be widely used in electronic, electrical and solar energy industries, including TFT-LCD.
Pursuant to the terms of the contract, the total purchase price is 16.45 million Euros with a delivery date of June 2, 2012 to July 14, 2012. The production line is expected to be put into operation by the end of 2012.
The original contract between Shandong Fuwei and Lindauer Dornier GmbH was entered into on January 20, 2007, as amended on February 2, 2007 with the total purchase price of 12.30 million Euros and a delivery date set forth as of the end of 2007. However, as a result of Shandong Fuwei's inability to pay the balance of the purchase price, the contract was cancelled and the construction of the production line was suspended. In 2010, Shandong Fuwei entered into negotiation and discussion with Lindauer Dornier GmbH regarding the terms and conditions of the contract and has reached an agreement to start the new production line project. The building for the new production line has already been completed.
Mr. Xiaoan He, Chairman and CEO of Fuwei said, "We are pleased to announce the purchase of the new BOPET production line. This new production line will focus on thick films for electronic, electrical and solar energy industries which is an emerging market. We hope this will allow us to continue to be at the forefront of BOPET industry demand."
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.