TONGXIANG, Zhejiang - Jushi Group Co Ltd, the world's largest manufacturer of fiberglass by output, plans to establish its first overseas production base in North Africa in the second half of this year.
The move is a bid to boost overseas expansion and resist trade protectionism, according to the company's top official.
"The total investment in the new production base in North Africa amounts to $200 million, and the plan has already been approved by the government," said Zhang Yuqiang, the chairman and president of Jushi.
The company also expects to establish more overseas production bases in North America and India in the near future, Zhang said.
Currently, Jushi has an annual production capacity of 900,000 tons, which accounts for 18 percent of the global output, with 50 percent exporting to 74 countries and regions worldwide, according to the company's data.
It has three domestic production bases at Tongxiang in Zhejiang province, Jiujiang in Jiangxi province and Chengdu in Sichuan province.
In September, the European Union (EU) began to levy anti-dumping tariffs of 43.6 percent on Chinese-made fiberglass.
Although the EU reduced the tariffs to 13.8 percent in mid-March, the growing trade protectionism targeting on China will continue to pose serious challenges, according to the company.
"In addition to the EU, Turkey and India have also imposed anti-dumping tariffs of around 20 percent on our fiberglass. Therefore, it is imperative for us to accelerate the establishment of overseas production bases in order to resist trade protectionism," said Shen Guoming, chief of the Investment and Strategic Planning Section at Jushi.
Zhang said that because the government attaches great importance to the new-materials industry in the country's 12th Five-Year Plan (2011-2015), the company will seize the opportunity to fuel its rapid growth.
"Jushi Group's annual production capacity is projected to reach 1.5 million tons by 2015, accounting for a quarter of the world's total output," he said, adding that some 300,000 tons will be produced at the company's overseas bases.
Jushi will also strive to reduce the amount of pollutants in the manufacturing process and the consumption of energy and water and achieve a zero discharge of waste water, said Zhang.
"We believe that reductions in energy consumption and emissions will also enhance our competitiveness," he said.
In the first quarter of this year, China Fiberglass Co Ltd, Jushi Group's parent company, generated sales of 1.4 billion yuan ($215 million), a rise of 82 percent from the previous year, while net profit rose 264 percent year-on-year to 60.51 million yuan, according to the company's quarterly financial report released in April.