As the largest combined polyether for hard foam manufacturer in China, Hongboli owns an annual output capacity of 90 kt. Combined polyether for hard foam is the major raw material of thermal insulation material and is mainly applied in refrigerator industry, cold-chain logistics industry and building insulation industry. With the continuous development in China economy and global electrical appliances manufacture base transferring to China, refrigerator industry will surely experience a rapid growth, thus boosting the demand for combined polyether for hard foam.

In July 2011, the company invested RMB 246 million in 60 kt/a combined polyether for hard foam and the project is under construction and scheduled to put into operation in 2012H1, as a result, its combined polyether for hard foam output capacity will expand to 150 kt and the market occupancy will be further increased. In addition, the decompression foam technology developed by Baohongli independently has achieved successful trial production on Midea Group’s refrigerator production line, the gross margin of combined polyether for hard foam and the company’s profitability are expected to be improved after the promotion of the technology.

Meanwhile, the flame retardant standard of the polyurethane insulation board of Baohongli has reached B1 via the adjustment of polyether molecular structure. In June of 2011, 1 million sq.m./a flame-retardant polyurethane foam insulation board Project put into operation and the company plans to build 15 million sq.m./a polyurethane board project in the next three years; 12 million sq.m./a Solar EVA Film production line put into operation in November of 2011. With the increasing new material capacity, the company’s profitability will be further improved.