Sino Techfibre, the leading producer of microfibre, polyurethane (PU) synthetic leather and pattern moulding paper (PMP) in China, says the group has clinched a major contract worth RMB45.1 million ($9.3 million) from Shandong Mingjun Textile & Garment Co. for PU synthetic leather to be used for the manufacture of belts and shoes. This is an entirely new PU synthetic leather product which was developed by the group’s R&D team.

Shandong Mingjun is our new customer based in Shandong province which specialises in the manufacturing of fashion apparel, including those for student groups such as The Young Pioneers of China and the Communist Youth League.

Sino Techfibre is contractually obliged to deliver the belt and shoe materials to Shandong Mingjun before Dec 9, 2010. As such, the contract is not expected to have a material impact on the group’s net tangible assets and earnings per share for the financial year ending Dec 31, 2009.

PU synthetic leather continued to be the group’s largest contributor of total revenue, comprising 46.3% of total sales in the first nine months of FY2009, whilst microfibre synthetic leather accounted for 36.9% and PMP made up the remaining 16.8%.

Sales from its major customer — The People’s Liberation Army and the government sector — accounted for 18.9% of total sales in the first nine months of FY2009 (9M2008: 17.1%).