(Yicai Global) May 7 -- Gon Technology's stock price jumped today after the Chinese plastic raw material supplier said that it will expand its face mask fabric output to respond to the global gap between supply and demand.
Gon's shares [SHE: 002768] rose by the daily limit of 10 percent to CNY40.93 (USD5.80) this morning, the highest since late April.
The company will invest CNY200 million (USD28.2 million) to build new production lines to make 15,000 tons of meltblown nonwoven fabric, the Qingdao-based firm said in a statement yesterday. The final products will be N95 and N99 masks that meet the Chinese and international quality standards and the project will be ready within six months.
China's qualified producers could make about 200 tons of meltblown nonwoven fabric each day as of last month, which is enough for 60 million N95 masks or 200 million disposable ones, whereas the domestic demand is about 300 million masks per day so unanswered demand still exists, the company said, citing data from the China Nonwovens & Industrial Textiles Association.
Gon has advantages in raw material supply, production technology, product quality, and user base, it said, adding that after the Covid-19 epidemic is over, the firm expects to supply emergency reserves to the Chinese government.
Editor: Emmi Laine