BEIJING, April 1, 2011 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("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.
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 U.S. Securities and Exchange Commission which, among other things, include both the short and long-term effects of the global financial crisis on the Company and the BOPET film industry; 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.
SOURCE Fuwei Films (Holdings) Co., Ltd.