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Plastic bags limitation opens new doors for non-wovens

03
Jun '08
With the limitation on plastic bags, green shopping bag demand in the China is estimated to reach tens of billions, bringing wide business opportunities for industries.

Especially the non-woven fabric sector, which is one of the key raw-material for eco-friendly bags, will record a growth spurt in next five years.

Recognizing this breakthrough, many new projects are set to start. In Xia Li Town, Shaoxing County, four non-woven production lines have been newly introduced, with 250 million yuan of investment. This project will expand their annual production capacity to 50,000 tons, accounting for nearly 30 percent of total domestic production of non-wovens.

Besides, some of the luggage product manufacturers are planning new factories to specialize in production of non-woven bags. Even many non-woven garment companies are seeing this as a golden opportunity and strategizing diversification.

Statistics show that in the first quarter of 2008, total investment plan of non-woven fabrics industry was 6.869 billion yuan, an increase of 174.78 percent from the same time last year. From January to March actual investment reached to 860 million yuan, a year-on-year surge of 80.56 percent, already accounting for 12.51 percent of the amount of investment plan.

So far, 78 projects are under construction, up 52.94 percent from the same time last year, of which, newly started projects are 40, a growth of 37.93 percent.

As at the end of March, six projects have been completed, an increase of 20 percent, accounting 7.69 percent of the projects under construction, reflecting that investment projects of the industry are progressing smoothly.

Relative datum of Non-woven fabrics for the first quarter of this year:

Total output of non-woven fabric in first quarter of 2008 was 161,800 tons, a year-on-year increase of 34.09 percent, with gross margin of 9.43 percent and margin 4.10 percent.

Fibre2fashion News Desk - China


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