(Yicai) March 22 -- Intco Recycling Resources will invest USD60 million to increase the capacity of its Vietnamese plastics recycling factory, the Chinese plastics recycler said yesterday.

The expansion of its existing factory in Bim Son city, Thanh Hoa province will produce recycled plastics which can then be used to make decorative building materials and high quality picture frames, Zibo-based Intco said. Construction is expected to take two years.

The Vietnamese plant, which supplies products to the European and US markets, raked in net profit of CNY13.3 million (USD1.8 million) in the first half of last year on revenue of CNY71.7 million, the company said, citing unaudited financial figures.

Expanding the factory in Vietnam, which is strategically located and where there are lower labor costs and favorable taxes, will help Intco better serve its overseas clients by improving the resilience of its supply chain and ensuring smooth delivery of products abroad.

Intco has six plastics recycling bases, including a factory for food-grade recycled plastics in Malaysia.

Intco’s share price [SHA:688087] was trading down 0.2 percent at CNY24.84 (USD3.44) as of 11.30 am. Earlier in the day it climbed 2 percent to hit CNY25.42.

Editor: Kim Taylor