Fuwei Films soars after Popping the Top with China Bottlers

July 7th, 2011 | by Jaxon Hewlett |

Shares of Fuwei Films Holdings Co. Ltd. (NASDAQ: FFHL), a China-based developer, manufacturer and distributor of plastic film soared in today’s trading after the company’s wholly owned subsidiary signed a letter of intent with China Bottlers Procurement Consortium (CPBC). At last check, Fuwei Films shares were trading 27.85% higher at $4.18, with volume up from daily average of 51,546 to 1.97 million.

Fuwei Films’ wholly owned subsidiary, Fuwei Films (Shandong) Co. Ltd., signed a letter of intent on PETG heat shrinkable label film supply for the second half of this year with CBPC, the approved procurement service provider for the Coca-Cola Bottling System in China.

Fuwei will be the exclusive local supplier of Coca-Cola in China and will supply PETG heat shrinkable label films to designated label suppliers within Coca-Cola bottling system. On full implementation of the letter of intent, the company estimates the sales of heat shrinkable label films to be supplied to Coca-Cola will account for 8%-10% of the total sales in the second half of this year.

Xiaoan He, chairman and CEO of Fuwei Films, said that the company is pleased to sign the letter of intent with the authorized procurement service provider of Coca-Cola in China and looks forward to further cooperation with the company. He added that the company will continue to remain committed to strengthening its R&D, and implementing the product differentiation strategy in order to maintain its competitive advantage in the market.

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