November 16, 2007 -- Chang-On International Inc, a provider engaged in the development, manufacture and sale of environmentally friendly construction materials, announced on October 31, that it will complete a new synthetic materials production facility in the province of Hainan in 2008. It will specialize in producing a material consisting of plastics and coal ash, known as 'SF'.

"The new facility will focus on construction materials production especially construction board with an [expected] capacity of 10,000 tons per year. Hopefully it will become one of the largest SF synthetic materials producers in Hainan province," Hui Wang, a spokesman from Chang-On told Emerging China.

"The location of Hainan, a third-tier city of strategic advantage to Chang-on will allow us to deliver products in South China and [expand] our products to neighboring areas," Guomin Li, president of Chang-On told Emerging China.

In cooperation with the Changchun Applied Chemistry Institute of the China Academy of Sciences, Chang-On has formulated a set of effective processes for synthetic materials from waste plastics and coal ash to produce products that can be used to replace PVC, plasticized steel bars, medium density fiberboard and steel molding board.

"With the output of plastics estimated to be 300 million tons in 2015 in China alone, [dealing] with waste plastics has become an ever important issue. SF Synthetic material adopts new technology to recycle waste plastics or "white pollution" and coal ash or "black pollution." So it is sure to have great potential [in] the market," Mozhi Shen, head of Chang-On's research and development told Emerging China

The two main products of the company are wall boards and drainage covers widely used in the building construction industry.

"Located in the very south of China, Hainan enjoys a different climate compared with Harbin, which will require varying product performance parameters such as heat-resistance or anti-erosion. So the actual product variants offered may need to be tailored to regional markets. The fabrics produced in Hainan will largely be used in construction, which is of good quality and endurance." said Hui Wang.

"Jiangsu is also a good market to enter with its advantageous geographical conditions and favorable taxation policies," said Guomin Li. Chang-On is considering setting up more facilities in other important regions such as Tianjin and Inner Mongolia in the near future.

"Plastic pollution has increasingly attracted extensive attention of various governments, which have heavily invested in the research of how to reuse solid waste. The Chinese government is keen on energy conservation and environmental protection." said Mozhi Shen.

"Chang-On endeavors to find an optimal growing point by combining social responsibilities and economic profit. To grab a large market share, Chang-On chooses to take a bold initiative to develop in southern China's market," said Guomin Li.