JIAXING, Zhejiang—Double Arrow Rubber, a leading conveyor belt maker in China, is looking to raise up to $79 million through convertible bonds to fund its new production plant, currently under construction in Jiaxing.
The issuance obtained regulatory approval on Aug. 2, the company said.
The plant broke ground last October and is slated to come on stream by early 2022. It has an $85 million investment and will be able to produce 15 million square meters of high strength, eco-friendly conveyor belts each year.
The plant is located in the company's headquarters city of Jiaxing. It is managed by Double Arrow's fully owned subsidiary, Tongxiang Desheng Rubber Belt.
Double Arrow currently has the capacity to manufacture 65 million square meters of belts per year, and recorded a 95 percent utilization rate in 2020. The company has an additional 25 million square meters of annual capacity in ongoing projects, and aims to raise its conveyor belt capacity to 150 square meters by the end of 2025.
The firm posted $280 million in revenue for last year, up 19 percent from 2019. Net profit was up by 27 percent to $48 million.