Chinese tissue, sanitary napkin and diaper manufacturer Hengan International to boost its tissue production capacity in China by about 360,000 tonnes/year in 2014 and 120,000 tonnes/year in 2015, to reach about 1.4 million tonnes/year by end of 2015

Debra Garcia

Debra Garcia

LOS ANGELES , September 11, 2013 () – Hengan International Group Co. Ltd. plans to increase its annual tissue production capacity in China by about 480,000 tonnes during 2014 and 2015, to reach 1.38 million tonnes/year by the end of 2015, the company stated in its first-half financial results.

The Chinese producer of tissue products, as well as sanitary napkins, disposable diapers and food and snack items, stated further that it had not added any production capacity for tissue products during the first half of 2013.

The 2014-2015 tissue capacity expansions will involved the addition of eight new production lines at the group’s facilities in Chongqing, Hunan, Shandong and Wuhu City, according to the report, which was given on Aug. 27.

Hengan International, which is one of the world’s largest producers of tissue products, expects its annualized tissue production this year to be 900,000 tonnes. The company is based in Quanzhou, Fujian Province.

The company reported that its first-half revenue from tissue sales in Mainland China increased by 17.8% year-over-year. However, total tissue revenue was up by a lesser 14.8% due to a double-digit drop in tissue export sales.

The HK$5.07 billion (US$653.2 million) earned from total tissue sales in the first six months represented about 48.6% of the company’s total revenue for the period, according to its first-half financial results.

Hengan International’s first-half total revenue was up 15.2% year-over-year, to HK$10.4 billion. Profit attributable to shareholders increase by about 14.3% year-over-year, to HK$1.9 billion, the company reported.

A year ago, the company forecast annualized tissue production would be about 900,000 tonnes by the end of 2012. At the time, 60,000 tonnes/year and 180,000 tonnes/year capacity expansions were under way at mills in Jinjiang and Wuhu, respectively.

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