11/01/2012 (China Daily) - Shenzhen-listed Guangzhou Lonkey Industrial Co, one of the top-five detergent makers in China, is looking to find another market niche with its environmentally friendly formulas.

The company will start mass producing detergents made from palm oil in the near future, said general manager Fu Yongguo.

Its new 500 million yuan facility in the Nansha district of Guangzhou will have the capacity to produce 36,000 tons of a palm oil derivative annually in cooperation with two partners from Malaysia.

The site will also be capable of making 200,000 tons of detergent powders, 150,000 tons of liquid detergents and 50,000 tons personal care products every year. The company is relocating its facilities to Nansha by the second half of 2012.

In addition to its environmental and renewable characteristics, palm oil is cheaper and has fewer price fluctuations than crude oil, Fu said.

"We are gaining sustainability with the green initiative," he noted.

As the company takes the lead in palm oil detergents in China, Fu said Lonkey is gathering momentum in the highly competitive industry through research and development.

It also plans a foray into Internet sales with specially packed products catering to affluent consumers. Its proprietary products include a stain-removing pen for business people.

After expanding its sales network in South China in 2010, the company plans for its products to be on the shelves in 2,000 hypermarkets in first and second-tier cities in three years and to set up 8,000 exclusive stores in rural areas.

The company's operating revenue soared 94.65 percent to 954 million yuan and net profits increased 40.49 percent to 8.49 million yuan in the first half of 2011.