Nov 9 2010
Fox Petroleum Inc. (PINKSHEETS: FXPT) announced today that Resource Polymers Inc, its Canadian operating subsidiary, expects to increase exports to China starting early in the first quarter of 2011 with increased demand for wood plastic composites.
China's wood plastic composites industry is projected to grow more than 30 percent this year, pushed by both rising domestic demand and the country's cost-competitiveness internationally, according to Chinese industry leaders.
China's WPC (wood plastics composites) industry, the second-largest in the world behind the United States, is projected to have production of 300,000 metric tons this year, up from about 215,000 metric tons in 2009, according to the Wood Plastic Composite Committee of the China Plastics Processing Industry Association.
The country is likely to continue its focus on exports, with about 75 percent of China's WPC production currently sent abroad, most of that to North America and Europe, said Ji Jian Ren, secretary general of the WPC committee.
"We have consistently sold raw scrap plastic materials to China and we expect to increase this production as our operations continue to grow," said William Lieberman, President of Fox Petroleum Group. "Historically China has been a large purchaser of scrap materials and over the past five years buying as much product possible. We expect to see this increase in demand for scrap plastics to continue to rise," he added.
The company expects that this subsidiary will process up to 30 Million pounds of post industrial and post consumer scrap plastics per year with revenues approaching Five million dollars per year at these processing levels. Fox Petroleum is aggressively seeking additional acquisition targets in the plastics recycling market place to increase its processing capacity and the company is currently speaking to Fortune 500 companies in the automotive and beverage industries to process plastic waste streams and fulfill circular recycling streams. The company expects its technology and processing to reduce 350,000 cubic yards of landfill space next year.