BEIJING, June 24 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co. Limited (Nasdaq: FFHL) ("Fuwei" or "the Company"), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced that Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"), the Company's operating subsidiary, has applied for a new BOPET films patent for heat shrinkage film which has been reviewed by the State Intellectual Property Office (SIPO) of China.
Heat shrinkage film is widely used for packaging for alcohol, cans, mineral water and various beverages among others. It is very flexible, impact resistant, and unbreakable. With shrinkage film packaging the product will look more attractive. Currently Fuwei is the only manufacturer of heat shrinkage film in China. Fuwei has been recognized as the supplier of several large and international drinks manufactures in China and overseas.
Currently this product is manufactured on the pilot production line. The pilot line is expected to be in full production based on the orders and purchase demand from our customers we have already received.
Fuwei Shandong is planning to transform the Bruckner production line from the next half of this year to the first half of next year. If they successfully transform the production line, the monthly production of heat shrinkage film will be more than 500 tons.
In the domestic market, heat shrinkage films are usually made of PVC (polyvinylchlorid) which is not environmental friendly. With the Chinese Government's increasing attention on the environmental protection, the BOPET heat shrinkage film industry is expected to grow faster. With the exception of Fuwei film product, most supply of heat shrinkage film is dependent on importing.
"R&D has always been one of the key competitive advantages of our company and we have acquired many patents related to BOPET films in the past. The latest patent for heat shrinkage film will make a significant contribution to increasing profitability. We expect that the market for this product will expand quickly in China," said Mr. Xiaoan He, Chairman and CEO of Fuwei.
"Since the second quarter of 2010, the demand for BOPET films in the domestic market is growing rapidly. The orders we received reached a new high record. Sales prices and volumes have increased. We believe the operating results of 2010 could be better than 2009 and we are encouraged by our progress."
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary Shandong Fuwei Films Co., Ltd. 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.
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission some of which are among other things, competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.
For further information, please contact: In China: Maggie Huang Investor Relations Manager Phone: +86-10-6852-2612 Email: fuweiIR@fuweifilms.com In the U.S.: Leslie Wolf-Creutzfeldt Investor Relations Grayling Global Phone: +1-646-284-9472 Email: email@example.com
SOURCE Fuwei Films (Holdings) Co. Limited