Fletcher Building to double Formica’s capacity in China
Ongoing construction growth in China has prompted Fletcher Building’s Formica unit to build a new laminates plant in the Jiangxi Province.
The planned facility in Jiujiang (pop: 4.8 million) will double Formica’s capacity in China and allow for additional market growth, Fletcher said in a statement.
Slated for completion in 2013, the new plant will manufacture high-pressure laminate to support demand in China and other select Asian markets.
The more than 50,000 square foot facility will employ approximately 400 people and will be Formica’s second plant in China and its eleventh manufacturing facility worldwide.
“The commercial construction boom, coupled with the massive construction of government-subsidized housing projects, has accelerated the demand for laminate, said Mark Adamson, Formica president and chief executive.
The Chinese market was already twice the size of the United States market and continued to grow by 15% a year, he said.
“We’re confident about the future of laminate – the future of the Formica Brand – in the world’s largest market.”
In August Fletcher reported a solid net profit of $283 million for the year to June.
Formica’s operating earnings were $56 million, 65% higher than the $34 million earned in the prior year.
Fletcher Building shares [FBU:NZX] were trading up 14c, or 1.9%, at $7.53 in mid afternoon trade, having charted down in recent months from their high of $9.50 in April.