GTS Chemical Holdings P.L.C. has released its preliminary earnings report for 2014, with its lubricants unit particularly exceeding expectations. The unit now accounts for around 20% of total group revenue, which is a major achievement considering that it only began operations in the second half of 2013.
Based in Shandong province, China, the company said that its lubes unit has now expanded operations from nine to 18 regions in 2014 and has increased the number of its distributors from 18 to 48. Sales grew almost 200% in 2014 to CNY138.6 million (USD22.4 million) from the year-ago-period.
The group has acquired a 5.1-hectare area adjacent to the current GTS site, which has been earmarked for lubricant production. Once the new site is operational, the current GTS site will then only be used for chemical production. GTS’ plans for 2015 include constructing a new state-of-the-art lubricant production line, which will more than double its current production capacity.
Cheng Liu, chief executive officer of GTS Chemical Holdings P.L.C., said, "I am delighted by the Group's progress in the period, which exceeded management and market expectations. GTS' main business divisions have grown faster than estimated at the time of our August 2014 IPO.”
GTS Chemical Holdings mainly serves the paper and chemical industries, with a growing lubricating oil division. It is China’s largest producer of ammonium sulfite, and its second largest producer of ammonium bisulfite. Incorporated in Jersey, the company is listed in the AIM market of the London Stock Exchange plc.