(Yicai) June 3 -- Sinofibers Technology plans to invest CNY1.4 billion (USD190 million) to raise its capacity to make space graded high-performance carbon fibers.

The Chinese supplier of carbon fiber fabrics and composite materials intends to build a new plant in Changzhou, where it is based, that can produce 2,000 tons of high-performance carbon fibers a year, Sinofibers announced late on May 31. Production at 30 percent will likely start in the fourth year after construction begins, it added.

Full production is expected to be reached in the seventh year, Sinofibers pointed out, adding that revenue will likely top CNY1.6 billion by that time, with a net profit of CNY774 million (USD100 million).

In addition, the project will lift Sinofibers' upstream polyacrylonitrile precursor and downstream carbon fiber fabrics output capacities accordingly, the company said. 

The capacity expansion will effectively transform Sinofibers' research and development advantages in high-performance carbon fiber products into production advantages, allowing for the replacement of expensive imported products in relevant applications and enhancing its core competitiveness, the company noted.

Sinofibers' main clients include large Chinese aerospace and aviation firms, with its carbon fiber production reaching 306 tons last year and relevant sales 302 tons, according to its annual financial report. Its revenue topped CNY812 million (USD112.7 million), with income from its carbon fiber business accounting for 68 percent, while the rest mainly came from carbon fiber fabric sales.

Shares of Sinofibers [SHE: 300777] ended 2.2 percent higher at CNY34.80 (USD4.83) apiece in Shenzhen today.

Editor: Martin Kadiev