Yizheng profits plummet in tough polyester market

07 April 2008 15:40  [Source: ICIS news]

LONDON (ICIS news)--Yizheng Chemical Fibre booked an 82% drop in pre-tax profits for 2007 at yuan (CNY) 11.4bn ($1.6bn) in a difficult operating environment, the China-based polyester products firm said on Monday.

Sales were 0.8% lower than the 2006 figure at CNY17.2bn.

Yizheng said the domestic polyester industry was still in “an acute situation of profound adjustment,” while the total domestic polyester production capacity remained excessive, creating a tough operating environment.

“Since August, because the global market price of crude oil went up, prices of monoethylene glycol (MEG) increased significantly as a result and the profit margin of polyester products was significantly compressed,” said the company in a statement.

Yizheng produced 2,133,145 tonnes of polyester products in 2007, 3.7% higher than the year earlier, while capacity utilisation was 96.9%.

($1 = CNY7.02)

By: Mark Watts
+44 20 8652 3214

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