Crown Asia Chemicals Corp., maker of premium pipes and polyvinyl chloride (PVC), said Monday that it had increased the capacity of its compounds manufacturing plant by a tenth.
In a disclosure to the Philippine Stock Exchange, the company said it received newly imported machines from Germany to produce its latest line of PVC compounds.
The new compounding line cost P12.5 million, funded by initial public offering proceeds from the firm’s listing in April last year.
Crown Asia Chemicals said its newly acquired machine “has the capability to produce a wide range of PVC compounds for various applications, most notable of which are clear rigid compounds used in bottles, IC tube packaging, shrink films, and labels.”
Crown Asia Chemicals supplies these compounds to other enterprises, which in turn manufacture chemicals based on their respective specifications.
The new compounding line would add 1,500 metric tons per year to Crown Asia Chemical’s existing compounding annual capacity of 15,000 metric tons, the company said.
Crown Asia Chemicals started PVC compounding production in 1990 with 1,500 metric tons per year under the trademark “Petrovin.”
“By enhancing our production capacity in these new product applications, we are looking at growing our local customer base, which is expected to translate into a notable boost in our top line sales revenues,” Eugene Lee Villanueva, Crown Asia Chemicals President and General Manager for Compounds Division, said.
At present, revenues from this specialized application accounts for only 14 percent of the profits of the company’s compounds division, with 86 percent of production capacity dedicated to the production of PVC compounds for wires and cables for export and local markets.
The company said it had a profit of P70.49 million in January to September 2015, about 60-percent higher than the P65.38 million it made in the same period a year before.