China's Fuwei Films signs letter of intent with procurement service provider for Coca-Cola Bottling on PETG heat shrinkable label film supply, says Coca-Cola plans to replace PVC non-carbonated beverages labels with PETG films in China, from H2
July 6, 2011
– Fuwei Films (Holdings) Co., Ltd. (Nasdaq:FFHL - News) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced that its wholly-owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei") signed a letter of intent on PETG heat shrinkable label film supply for the second half of this year with China Bottlers Procurement Consortium ("CBPC"), the authorized procurement service provider for the Coca-Cola Bottling system in China, on June 30, 2011.
As the leading beverage supplier in the world, Coca-Cola plans to take the lead in replacing PVC non-carbonated beverages labels with PETG films in China starting in the second half of this year, in order to be environmentally-friendly.
PETG is an improved BOPET material, which is widely used in the international label industry due to its environmentally friendly nature. Shandong Fuwei developed its propriety PETG heat shrinkable label films through years of independent R&D. This product not only fills the gap in China but also is widely recognized and approved by many internationally renowned suppliers, such as Coca-Cola. The patent application for this product filed by Shandong Fuwei has been accepted. According to the letter of intent, Shandong Fuwei, as the exclusive local supplier of Coca-Cola in China, will supply PETG heat shrinkable label films to designated label suppliers within the Coca-Cola bottling system. Once the letter of intent is fully implemented, it is estimated that the sales of heat shrinkable label films to be supplied to Coca-Cola may account for 8 to10 percent of Fuwei's total sales in the second half of 2011.
"We are pleased to sign this letter of intent with the authorized procurement service provider of Coca-Cola," said Mr. Xiaoan He, Chairman and CEO of Fuwei Films. "We look forward to further cooperation with Coca-Cola and other internationally renowned beverage companies. The Company will continue to be committed to strengthening R&D, and to implementing the products differentiation strategy in order to maintain our competitive advantage in the market."
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.