Shenyang Chemical Saw Good Performance in H1     

Shenyang Chemical Industry Co., Ltd. (SZ: 000698) expects its performance to rise 100% year-on-year in the first half of 2008, driven by sales of major products including PVC paste resin and acrylic acid/acrylates and the income tax rate in 2008  reducing from 33% to 25%.
   Shenyang Chemical produces 130 000 tons of PVC paste resin per year, holding more than 30% share in the domestic market. With the sustained high oil price in the international market, the PVC production using the calcium carbide process will have more advantages. The price of PVC paste resin in the domestic market is around RMB10 000 per ton today and will be stable. The PVC business will further contribute to its profit.
   The 130 000 t/a project of acrylic acid/acrylates that came on stream in August 2007 will also fuel the profit growth in the company for 2008 and 2009. The prices of acrylic acid/acrylates are increasing in 2008.  
   The elimination of the naphtha consumption tax can help ease the serious raw material shortage in the ethylene sector in China. The completion of the ethylene project in October 2008 will also bring a satisfactory profit prospect to the company.