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Phoslock Environmental Technologies (ASX:PET) has rocketed as much as +180% by midday Wednesday after the Sydney-headquartered producer told shareholders it would be restarting work at Changxing after four years.
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Production had previously been halted in 2021, with Phoslock using older inventory in China to meet continued sales through the last near-half-decade.
However, with this year’s deliveries quickly spiking again, the Australian company has decided that inventory finally “needs to be replenished” to meet demand. In answer, the Changxing plant will now restart in January.
“Phoslock Environmental Technologies is pleased to announce it will be recommencing the manufacture of Phoslock,” the company wrote. “The directors have decided to restart production at the factory in Changxing.”
The company has quietly been preparing for the restart for some months now, undertaking refurbishment work at the Chinese plant and equipment on-site.
To start, Changxing will operate on a single-shift rota and is expected to open with an annual production capacity of approximately 3,000 tonnes. Should it be needed, Phoslock is prepared to move to a two-shift system.
The product the company’s making – also called “Phoslock” – is a lanthanum-modified bentonite formulation that binds excess phosphorus within water bodies and sediments. By restricting the available phosphorus, the treatment limits the formation of cyanobacteria and creates drinkable water.
Phoslock (the company) sells Phoslock (the product) across markets in North America, Europe, Brazil, Australia, and throughout mainland China.
PET shares have been at 1.4c each since August, but are up to 2cps today.
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