Yantai Juli Isocyanic Ester Co., Ltd. (“Juli”) is a high-tech private chemical company founded on June 8, 2001 registered in Yantai, Shandong province, China. After a restructuring in August 2010, Juli repatriated its Off-shore holding to a Chinese domestic holding, a JV legal entity, which would be able to IPO in China.
The Company’s main product, Tolylene Di Isocyanate (TDI), is mainly used in the production of polyurethane serial products, such as: sponges, high-grade paint, high-grade adhesive, firming agents, plastic rubber racetrack, elastic bodied and more. The main product of Juli is TDI (Toluene DisoCyanate), and hydrochloric acid is its by-product. TDI is the raw material for soft Polyurethane series of products. It is mainly used for sponges, high-grade Polyurethane paint, high-grade adhesives, spandex and polyester, etc. With the rapid development of China’s Polyurethane industry, TDI products have wide market usage. TDI Industry in China is growing steadily at 8% annually and this trend is not likely to recede in the coming 5 years. In 2009 the TDI demand in China was 445K tons per year, and the actual output was 261K tons. In 2010 the domestic consumption is expected at 500K tons. The main reason for the Juli’s high profitability in 2009 is a combination of lower raw material prices, the efficient / optimized production process, quality control of the incoming supply chain, lower financial costs, government incentives and lower depreciation.
In Aug 2010, CIVC and its co-investors invested ¥33M (~$4.9M) in Yantai Juli as part of the company restructuring.