Huafeng Microfiber Company announced in August that it will build a non-woven microfiber-reinforced PU leather facility at its existing production base in Nantong, Jiangsu Province, with a total capacity of 69 million square meters per year.
The project is located in the coastal Lusigang Economic Development Zone with a total area of 319,000 square meters and an investment of RMB 1.7 billion (US$247 million). Its planned production capacity includes:
● 33 million square meters / year of microfiber base fabric;
● 17 million square meters / year of microfiber polyurethane synthetic leather;
● 6 million square meters / year of microfiber suede; and
● 14 million square meters / year of color microfiber.
The production base already has a super-fiber plant with a capacity of 104 million square meters per year.
The company expects that the project will be fully operational in December 2019, which will create 1,300 jobs. If the project is planned, the trial will begin in September 2019. The plant is scheduled to go into production in December of the following year. Huafeng Group expects that the factory will realize a profit of 300 million yuan, with an average annual income of 2 billion yuan.
Microfiber reinforced polyurethane has been applied in more than 90% of high-end sports shoes, and its application range is also expanding. Huafeng said that in sportswear and sports accessories, such as golf gloves, ultrafine fiber reinforced polyurethane Very popular. The company expects that ultra-fibre PU leather will increasingly replace natural leather. Currently, natural leather accounts for 35% of the 23 million pairs/year golf glove market.
In the first half of 2018, Huafeng Microfiber's revenue increased by 54% year-on-year to RMB 1.5 billion. Net profit for the same period increased by 141% to RMB 208 million.