Sichuan Meifeng natural gas costs to rise in 2008

27 December 2007 06:23  [Source: ICIS news]

SINGAPORE (ICIS news)--Sichuan Meifeng, a Chinese fertilizer producer, said on Thursday its operating costs in 2008 will rise around yuan (CNY) 84m ($11.4m) on higher natural gas prices.

The company signed a natural gas contract with its supplier for 2008 which were based on higher prices set by the government, it said in a statement to the Shenzhen stock exchange.

Sichuan Meifeng said it would raise its output, improve on its management and lower energy consumption to offset the higher cost.

The company’s costs in 2006 reached CNY971.9m while its sales and operating profit were at CNY1.4bn and CNY281.8m respectively.

Sichuan Meifeng produced 757,100 tonnes of urea, 3,893 tonnes of melamine, 5,782 tonnes of plastic woven bags and PVC pipe fittings in 2006.

($1=CNY7.35)

By: Florence Tan
+65 6780 4359

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