BEIJING, June 23, 2011 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holding) Co., Ltd. (NASDAQ: FFHL)("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET films in China, today announced that its wholly-owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei") has obtained a EUR 10.7 million Letter of Credit from Bank of China, Weifang Branch to use towards purchasing new production line equipment, including self-funded 7.37 million EUR and 3.33 million EUR credit line from Bank of China, Weifang Branch.
Fuwei Films previously announced that it entered into a contract with Lindauer Dornier GmbH, a German equipment supplier, to purchase equipment for its thick-film BOPET production. The total amount to purchase the new production line equipment is 16.45 million EUR. Prior to that, a prepayment of 5.08 million EUR has already been made by Shandong Fuwei.
The Chairman and CEO of Fuwei Films, Mr. Xiaoan He, said, "We are very pleased that the Weifang Branch of the Bank of China has extended the credit line that will enable us to proceed with the purchase of the production line equipment from Lindauer Dornier. Now that the major shareholder case has been resolved, banks are showing willingness to extend credit to Fuwei Films. We believe that this is a positive development for supporting our growth plans."
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.
Safe Harbor
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission which, among other things, include competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.
For more information, please contact:
In China: | |
Ms. Amy Gao | |
Investor Relations Manager | |
Phone: +86-10-6852-2612 | |
Email: fuweiIR@fuweifilms.com | |
In the U.S.: | |
Ms. Leslie Wolf-Creutzfeldt | |
Investor Relations | |
Grayling | |
Phone: +1-646-284-9472 | |
