Capacity boost eyed on tire prospects
By Fu Chenghao |
August 8, 2009, Saturday
|
Print Edition
Print Edition
Jiangsu Sinorgchem Technology Co, a major maker of chemicals used in rubber products, is raising capacity in anticipation the tire market will return to normalcy in the second half of next year.
The company, partly owned by United States private equity firm Carlyle, supplies para-phenylenediames (PPD), a key rubber chemical additive which can prevent premature ageing of rubber, to tire makers such as Michelin, Pirelli and Yokohama.
"The economic crisis is not yet over, but we expect the market to bottom out by year-end," Sinorgchem's Chief Financial Officer Stephen Choi said yesterday. "It could start to improve in the first half of 2010 and return to normal in the second half."
Sinorgchem last month began a 1.8-billion-yuan (US$264 million) expansion of its plant in Heze, Shandong Province. The first phase, which includes a 40,000-ton-a-year PPD facility, costs 1 billion yuan and is set to come on stream in April next year.
Choi said Sinorgchem's vision is to become the world's top brand in the rubber chemical additive market. It competes with Flexsys, a unit of US specialty chemicals maker Solutia Inc.
Choi declined to give sales figure for the company but said sales grew 10 to 15 percent in the first half from a year earlier as it expands its global market share. Sinorgchem exports half its products.
Jiangsu Province-based Sinorgchem yesterday opened an operation center in Pudong New Area.
Global auto sales have slumped due to the recession but China posted strong growth in the first half of this year, thanks to government stimulus measures.
The company, partly owned by United States private equity firm Carlyle, supplies para-phenylenediames (PPD), a key rubber chemical additive which can prevent premature ageing of rubber, to tire makers such as Michelin, Pirelli and Yokohama.
"The economic crisis is not yet over, but we expect the market to bottom out by year-end," Sinorgchem's Chief Financial Officer Stephen Choi said yesterday. "It could start to improve in the first half of 2010 and return to normal in the second half."
Sinorgchem last month began a 1.8-billion-yuan (US$264 million) expansion of its plant in Heze, Shandong Province. The first phase, which includes a 40,000-ton-a-year PPD facility, costs 1 billion yuan and is set to come on stream in April next year.
Choi said Sinorgchem's vision is to become the world's top brand in the rubber chemical additive market. It competes with Flexsys, a unit of US specialty chemicals maker Solutia Inc.
Choi declined to give sales figure for the company but said sales grew 10 to 15 percent in the first half from a year earlier as it expands its global market share. Sinorgchem exports half its products.
Jiangsu Province-based Sinorgchem yesterday opened an operation center in Pudong New Area.
Global auto sales have slumped due to the recession but China posted strong growth in the first half of this year, thanks to government stimulus measures.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
