NANTONG, Jiangsu—Chinese polyurethane mattress and pillow maker Healthcare Co. Ltd. announced in November it will raise up to about $116 million through a private share placement.
It will use $51 million the money to build new facilities in the U.S. A total of $36.5 million will go toward expanding is plant in Ruma, Serbia. The remaining $29 million will be used to boost cashflow.
The U.S. plant, will have registered offices in Knoxville, Tenn., but will be built in South Carolina, the company said. It revealed details of the new U.S. plant in October.
An additional 10 percent tariff on exports to the U.S. has been imposed since September. A Healthcare Co. new release noted that raising prices or shifting production to Serbia cannot fully solve the problem. The plant in Serbia is running at close to capacity, the company added.
Further, it will be possible to source MDI and TDI locally in the U.S. This could counter the fluctuation of MDI and TDI prices in the China market, the release said.
Throughout the first nine months of 2018 Healthcare Co. reported a 27 percent year-on-year rise in revenue to $306 million. Net profit during the period, however, dropped 24 percent to $16 million.
The firm also has acquired Spanish mattress maker Maxcolchon, which throughout the first nine months of 2018 saw a 41 percent jump in net profit to $1.6 million on a 24 percent rise in revenue to $22 million.