In a recent report released by Beijing-based China Industrial Information Issuing Center, Chinese plastics processors, at least the largest ones, still produce decent margins, compared to other manufacturing sectors.

According to the study, which analyzed the 500 largest manufacturing companies in China, the plastics processing industry is the third most profitable (11.62 percent), only behind the tobacco industry (17.3 percent) and the beverage industry (15.03 percent).

Average margins register at 2.81 percent for telecommunications equipment, 4.77 percent for electrical machinery, 6.93 percent for transportation equipment and 7.38 percent for steel.

The industry giants' performance certainly doesn't represent the entire market. The Chinese plastics processing industry, like its U.S. counterpart, consists mostly of small and medium-sized enterprises.

The 2007 average margin of China's 500 largest manufacturers was 6.51 percent, almost one percentage point higher than a year ago.

The company at the bottom of the list of China's 500 largest manufacturers reported 2007 sales of 5.4 billion yuan (about US$789 million).