Affected by the Globally COVID-19

Affected by the globally COVID-19, raw materials, labor costs and shipping costs are increasing day by day. Our company's export trade for bags is also deeply affected. The increase in production costs and the extension of shipping cycles have given us great challenges. Besides the settlement price of international crude oil futures in the Russia-Ukraine conflict closed sharply higher. The settlement price of WTI April crude oil futures closed up $7.42, or 7.08%, at $112.12 per barrel. Petroleum is the basic raw material of polypropylene, which leads to an increase in the cost of raw materials for PP woven bags.

In order to meet the needs of customers and reduce customer losses as much as possible, we have purchased new machines,new weaving machines and printing machines at all costs to improve production efficiency and shorten delivery time. To finish 100,000PCS woven bags,we can save 2 production days, that means we can produce at least 50,000PCS bags more. Thereby shortening the order cycle and not delaying the normal needs of customers for products. We believe that difficulties are temporary, and we need to take a long-term perspective. Only by constantly improving and perfecting ourselves can we achieve stable progress and sustainable development.

From August last year, we built a new plant for new production equipment, that is, there will be new production equipment installation and commissioning in May for PP valve bags production. There is no doubts that the new production line will help us better meet customer needs and respond to market changes. 

For many years, China has been the country with the largest cement production capacity in the world, India, Russia, USA, Turkey also occupy part of the market, so the sales of valve bags for cements packing are mainly domestic demand. But we will greatly reduce product profit and ensure product quality and service, and promote cooperation with new customers in more other countries.