Guanwei Recycling Corp. (GURC.OB), formerly MD Holdings Corp. (MDHO.OB), a fast growing plastics recycler based in Fujian Province in China, has announced yesterday that its shares will immediately begin trading on the OTC Bulletin Board with a new stock symbol: GURC. The move follows the company’s name change last week from MD Holdings Corp. to Guanwei Recycling Corp.
Guanwei has grown rapidly, producing recyclable Low Density Polyethylene (LDPE) from plastic waste procured from Europe. It is now China’s largest manufacturer of LDPE, selling to more than 200 manufacturers in more than 10 industries in China, including the construction industry where there has been an ongoing government push to promote the use of plastic in such things as water and sewage pipelines.
Guanwei chairman and CEO, Mr. Chen Min, said of the name change, “By meeting the highest European environmental standards, Guanwei is one of the few plastics manufacturers licensed in China that also has obtained the certificate issued by the German Environment Auditing Association. Our advantage is that we procure high quality plastic waste directly from Germany and other European countries, with no middlemen, which enhances our bottom line and permits economic production of the highest grades of LDPE. As previously reported, in 2008 sales increased 61% to $25.4 million, with more demand for our high quality product than we could supply. The financial crisis in the first half of 2009 temporarily lowered demand and prices, but we still achieved a 74% gain in operating income on a sales increase of 149% to $30.4 million.”
The company indicated that China consumed more than 50 million tons of plastic in 2008, exceeding the country’s total plastics production capacity of 20 million tons.