Microfiber Synthetic Leather Leader Benefits Consumption Upgrade

Huafeng fiber is currently being promoted by three institutions in Beijing, Shenzhen and Shanghai.

According to public information, Huafeng microfiber is the leading enterprise of microfiber leather in China. At present, the annual production capacity of microfiber leather is 9 million square meters, and the sales of microfiber leather occupy the first place in China for three consecutive years.

Huafeng microfiber does not exceed 40 million shares in the proposed public offering. The total share capital after the issuance will not exceed 158 million shares. The fund-raising fund will be used in the investment construction project of the annual production of 6 million square meters of super fine fiber polyurethane synthetic leather production (phase 1), 3 million square meters / year fixed Island ultrafine fiber polyurethane synthetic leather project and enterprise technology center technical pformation project.

Gao Zheng, a researcher in the chemical industry of CICC, points out that microfiber leather products will benefit from consumption upgrading in the future. More low-end PVC leather and ordinary PU leather will be upgraded to microfiber leather.

It is understood that at present, the proportion of domestic microfiber leather in synthetic leather is less than 3%, far lower than that of developed countries, so the future substitution space is huge.

Facing the increase of market demand in the future, Huafeng ultra fine fiber has made efforts to make an article in terms of capacity supply.

In this regard, Huafeng ultra fiber said that the main reason restricting the development of the company is the capacity constraints, and some orders have to be abandoned.

It is reported that the company's self financing construction of the annual production of 3 million square meters of microfiber synthetic leather project is currently undergoing trial production, which will help alleviate the pressure on the company's capacity shortage. The company intends to raise funds for its own construction of 3 million 600 thousand square meters / year superfine fiber base cloth expansion project. The above mentioned projects will help increase the company's output after putting into operation. If the company's capital raising project is invested, the production capacity of microfiber PU synthetic leather will be further improved, which can not only improve the company's production capacity, but also optimize the product mix and further improve the market share of the product.