China’s Shenyang Chemical 2009 net profit falls 30%

31 March 2010 09:20  [Source: ICIS news]

GUANGZHOU (ICIS news)--China’s Shenyang Chemical has posted a 30% year-on-year decline in its net profit to yuan (CNY) 68.6m ($10m) in 2009 due to low product prices, the company said on Wednesday.

The company’s operating profit fell 65% to CNY39.2m. while its operating revenue was down 24% to CNY4.5bn last year, it said in a filing to the Shenzhen Stock Exchange.

Overcapacity and rising feedstock cost would be the major challenges to the company’s financial performance in 2010, the company said.

It added that demand for its mainstream products, including chlor-alkali, polyvinyl chloride (PVC) resins, propylene oxide (PO) and polyester, would remain weak this year.

Meanwhile, the company's 500,000 tonne/year cracker and 200,000 tonne/year polyethylene (PE) unit that were brought on stream in July 2009 would be able to operate at full load by June this year, it said.

The company said it planned to produce 180,000 tonnes of chlor-alkali, 120,000 tonnes of acrylic acid, 30,000 tonnes of PO, 100,000 tonnes of PE and 20,000 tonnes of polyester this year.

Shenyang Chemical is based in Liaoning province, northeastern China.

($1 = CNY6.83)

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By: Fanny Zhang
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