Taiwan's Top 2 Nylon Makers Posted Record Revenues in July

Taipei, Aug. 11, 2006 (CENS)--Taiwan's top two makers of nylon products, Li Peng Enterprise Co. and Zig Sheng Industrial Co., scored record monthly revenues of NT$1.55 billion (US$46.97 million at US$1 = NT$33) and NT$1.21 billion (US$36.67 million) in July, up 15% and 67%, respectively, from a year earlier.

In July Li Peng shipped 17,000 tons of nylon chips and filament, an increase of more than 1,000 tons from the corresponding figure of a month earlier. The company's revenue from nylon chips rose by over NT$100 million (US$3.03 million), but its revenue from long-fiber cloths declined by NT$60 million (US$1.82 million).

In the same month Zig Sheng delivered over 9,500 tons of nylon chips and filament, with monthly revenue hitting NT$1.2 billion (US$36.36 million).

Market observers expected the two nylon makers to enjoy better profits in July since the prices of nylon products rose by NT$2-3 (US$0.06-0.09) per kilogram from a month earlier. Li Peng is estimated to rake in profits of NT$30-50 million (US$0.91-1.52 million) for the month.

Traditionally, the third quarter is a sluggish season for the petrochemical industry. However, the soaring international oil prices have vitalized the industry, helping boost the prices of petrochemical products for six consecutive months since the beginning of this year. Among the products are paraxylene (PX), purified terephalic acid (PTA), ethylene glycol (EG), and caprolactam (CPL).

Currently the price of nylon chips jumps to US$2,400 per ton and that of CPL rises to US$2,120-2,140 per ton, close to last year's ceiling price. Besides, it is reported that in North America the price of nylon chips for bottles is very likely to chalk up by US$88 per ton and that of polyester staple fiber by US$100 per ton, which will encourage Taiwan's manufacturers to follow suit.

In July, some leading domestic textile manufacturers also posted revenue growth. Among them, Makalot Industrial Co. scored revenue of NT$257 million (US$7.79 million), up 6.8%, and Kwang Ming Silk Mill Co. raked in revenue of NT$75 million (US$2.27 million), for a sharp rise of 17%.