A Multi Billion Dollar Problem, page-3

PET currently has irons in the fire in China, Europe and the USA and the growth potential is enormous.

According to Newing, PET plans to triple current output at it's Changxing factory to 40k tonnes pa plus. We can only assume that management is reasonably confident that many more contracts are on the way in the Yunan region in the coming this year. We also know from the week's press release that management is also looking at scaling up production capacity elsewhere in China.

If PET were also to win contracts in the US and Europe it would make sense to have factories there too.

Management says factory output can be expanded relatively cheaply without recourse to raising funds. This makes sense given that annual revenues around $150 m could be anticipated from the Changxing factory with a gross margin of 50%.

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