Zhejiang Huaye Plans to Invest 1.094 Billion Yuan to Build Production Base

Securities Times Reporter Huang Xiang

On the evening of March 22, Zhejiang Huaye (301616) announced plans to invest in the second phase of the Mu’ao Production Base project, with a total investment of 1.094 billion yuan. The goal is to increase the company’s core product capacity, break through existing capacity bottlenecks, and further strengthen its competitive advantage in the industry.

The announcement states that the project is located in Dinghai District, Zhoushan City, Zhejiang Province. The construction period is three years, and funding will come from the company’s own or self-raised funds. The project mainly involves adding new production workshops, R&D supporting facilities, and utility engineering. After commissioning, it will focus on enhancing the production capacity of key components such as screws, barrels, and collet bars for plastic molding equipment. Once fully operational, the project is expected to generate an annual output value of about 1.2 billion yuan.

Public information shows that Zhejiang Huaye is a domestic enterprise in the field of plastic molding equipment components. Its main products include screws, barrels, and collet bars, which are core functional parts of injection molding machines, extruders, and other plastic molding equipment. These are often called the “heart components” of plastic machines, with end applications covering automotive, home appliances, 3C electronics, medical devices, new energy, and other fields.

The announcement indicates that Zhejiang Huaye’s current capacity utilization rate is already quite high. Thanks to government policies supporting export tax rebates and export credit insurance, the overseas market for injection molding machines continues to expand, and export scale is increasing. Zhejiang Huaye maintains long-term stable cooperation with downstream major plastic molding equipment manufacturers such as Haitian International and Yizumi. Amid a rapid recovery in downstream industry prosperity, the company’s order backlog is growing quickly.

According to the work hours statistics of frontline employees, in the first half of 2025, Zhejiang Huaye’s screw and barrel products will reach a capacity utilization rate of 110%; collet bar products will reach 100%. The existing capacity cannot meet the company’s order demand. The second phase project aims to enhance the production capacity of screws, barrels, and collet bars to break through current capacity bottlenecks and promote product value addition. After the second phase project is fully operational, the Mu’ao Production Base project is expected to achieve an annual output value of about 1.2 billion yuan, which will strongly support the company’s ability to seize market development opportunities, expand market share, and further improve profitability and overall competitiveness.

Zhejiang Huaye stated that the second phase project will build a digital factory for screws and barrels, establish efficient and flexible production lines, improve the production capacity of screws, barrels, and collet bars, break through capacity bottlenecks, seize market opportunities, increase market share, and continuously consolidate the company’s position in the industry. The implementation of the second phase project will further solidify the company’s large-scale production capacity for plastic machine components, explore new paradigms of mass customization that combine personalization and batch production, further leverage economies of scale, effectively reduce product manufacturing costs, and enhance the company’s overall competitiveness.

From the overall industry development perspective, China is the world’s largest producer of plastic machinery, with output ranking first globally for 20 consecutive years. Industry data shows that by 2025, the domestic plastic machinery market size will reach 96.24 billion yuan, a year-on-year increase of 8%, returning to a steady growth track. In recent years, with the upgrading of domestic manufacturing, downstream plastic product industries have continued to demand high-precision, high-efficiency, and low-energy-consuming plastic molding equipment. Coupled with increasing demand from emerging fields such as new energy vehicles, medical devices, and food packaging, this has created sustained growth opportunities for upstream core component industries. Meanwhile, the international competitiveness of domestically produced plastic machinery and core components continues to strengthen, with steady growth in export scale. Market share in emerging markets such as India, Vietnam, and Mexico continues to rise, and the process of replacing imported high-end products with domestically produced ones is deepening.