Stock News: Hongwei to double capacity for synthetic cotton in 2007

Hongwei Technologies Ltd, a China-based manufacturer and supplier of polyester fiber, said it is looking to double its production capacity for synthetic cotton to 16,000 tons next year, to tap on its increasing popularity over natural cotton in the textile industry. It is building a new factory in phases and completed in the second half of next year. The new factory will enjoy tax exemption for two years and three years of 50 pct tax relief. The group said synthetic cotton is more competitively priced and environmentally-friendly than natural cotton, and yields a higher gross profit margin of 32 pct, compared to 28 pct for traditional products. "The new factory will expand our production capacity rapidly. We are also looking to more research and development efforts to develop new products with higher profit margin to meet customers' requirements," Hongwei chief operating officer Wu Guoxin said in a statement.