Fuwei Films Announces a New BOPET Patent for Heat Shrinkage Film

Fuwei Films (Holdings) Co. Limited (Nasdaq: FFHL) (“Fuwei” or “the Company”), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced that Fuwei Films (Shandong) Co., Ltd. (“Fuwei Shandong”), the Company’s operating subsidiary, has applied for a new BOPET films patent for heat shrinkage film which has been reviewed by the State Intellectual Property Office (SIPO) of China.

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Heat shrinkage film is widely used for packaging for alcohol, cans, mineral water and various beverages among others. It is very flexible, impact resistant, and unbreakable. With shrinkage film packaging the product will look more attractive. Currently Fuwei is the only manufacturer of heat shrinkage film in China. Fuwei has been recognized as the supplier of several large and international drinks manufactures in China and overseas.

Currently this product is manufactured on the pilot production line. The pilot line is expected to be in full production based on the orders and purchase demand from our customers we have already received.

Fuwei Shandong is planning to transform the Bruckner production line from the next half of this year to the first half of next year. If they successfully transform the production line, the monthly production of heat shrinkage film will be more than 500 tons.

In the domestic market, heat shrinkage films are usually made of PVC (polyvinylchlorid) which is not environmental friendly. With the Chinese Government’s increasing attention on the environmental protection, the BOPET heat shrinkage film industry is expected to grow faster. With the exception of Fuwei film product, most supply of heat shrinkage film is dependent on importing.

“Since the second quarter of 2010, the demand for BOPET films in the domestic market is growing rapidly. The orders we received reached a new high record. Sales prices and volumes have increased. We believe the operating results of 2010 could be better than 2009 and we are encouraged by our progress.”

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