Higher nylon demand lifts China Sky Q2 net profit

14 August 2007 06:29  [Source: ICIS news]

SINGAPORE (ICIS news)--China Sky Chemical Fibre posted late on Monday an 81.8% rise in second quarter net profit due to higher production capacity and increased demand and said it could expand further through acquisitions.

The Chinese high-end nylon fibres maker and supplier said in a statement to the Singapore exchange that second quarter net profit attributable to shareholders jumped 81.8% to yuan (CNY) 159.5m ($21m) compared with CNY87.7m in the same period a year ago.

Total revenues in the second quarter were CNY566.6m, up 79.7% from last year, due to increased demand for its products and contributions from capacity expansions.

The company - touted as the largest high-quality nylon producer in China - said that it commenced production of higher-end air-textured yarn (ATY) and drawn-textured yarn (DTY) in June this year, bringing its total capacity to 88,000 tonnes/year.

It has also begun the groundwork for new facilities to house the production of two other high-end products. This will add 35,000 tonnes/year to China Sky’s capacity.

"These two lines will have an initial capacity of 15,000 tonnes/year by the first half of 2008, which will rise by another 20,000 tonnes/year by early 2009, bringing the total group capacity to 123,000 tonnes/year," said Huang Zhong Xuan, CEO of China Sky.

The company added that it may expand its business through acquisitions, in view of possible consolidations in China’s nylon industry.

($1 = CNY7.58)

By: Jeanne Lim
+65 6780 4359

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