Shanghai, China – Shenzhen-listed PU leather maker Huafon Microfibre saw a 71% rise in net profit during the first quarter of 2014 to RMB22mn ($3.5mn) on RMB191mn revenue, thanks to an increase in exports to the US and Europe.
According to Huafon Microfibre’s Q1 report, in March its export sales had a 60% growth from the same period in 2013, and the company expects its exports to have a 50% jump on year in 2014. The company’s market share in China is estimated at 20-30%, and it is also expanding into apparel and furniture with a stagnant domestic demand in footwear.
Huafon Microfibre has a 7.2m m²/year capacity expansion scheduled to go into operation in the latter half of 2014. The project was started in August 2013 with RMB120mn investment, and will bring the company’s total capacity to 36m m²/year when completed, said board secretary Cheng Ming.
Huafon Microfibre is based in Shanghai with 600 employees, and is a subsidiary of Huafon Group which claims to be the world’s largest maker in volume of PU resin for synthetic leather used in footwear.
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