Fuwei Films’ Third Production Line Put into Trial Operation
BEIJING, Jan. 31, 2013 /PRNewswire-FirstCall/ — Fuwei Films (Holding) Co., Ltd. (NASDAQ: FFHL) (“Fuwei Films” or the “Company”), a manufacturer and distributor of high-quality BOPET films in China, today announced that its third production line has been put into trial operation at the end of January 2013. This commissioning of this production line was delayed due to the former major shareholders’ ownership transfer in early 2012.
This production line will manufacture high-performance electric insulation film, base film for solar backsheet and TFT-LCD optical film with an annual design capacity of 23,000 metric tons and thickness between 38 and 250 micrometers.
During the trial operation, only the commodity thick films will be produced and the production line will be adjusted to meet the operational criteria.
Mr. Xiaoan He, Chairman and CEO of the Company said, “We are proud and pleased to announce that the third production line has begun trial operation. We intend to make every effort to accelerate the development of our high value-added thick films to meet the market demands, improve our profitability as well as strengthening our competitiveness. Fuwei Films is now confronted with unprecedented market competition, in which excessive capacity results in reduced prices. We believe upon commencing production, the third production line may not be profitable in the short term due to the fact that it may take time to develop a prototype, pilot production, testing and confirmation by clients leading to mass production of its high-end products. However, we are convinced that by staying ahead of the competition in terms of technology and quality, we will eventually grow and profit from the third production line.”
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 Films’ 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 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 including complaints and claims from clients; 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.
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SOURCE Fuwei Films (Holdings) Co., Ltd.