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July 09, 2007 02:00 AM

Shenma Group ups its capacity, profit

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    China Shenma Group Co. Ltd., China's largest domestic producer of nylon 6/6, is expanding capacity, focusing on existing market share and adding product value as multinational competitors such as DuPont Co., Rhodia and Solutia Inc. grow in China.

    The Pingdingshan-based company added 66 million pounds of annual capacity for nylon 6/6 in March, making total capacity 276 million pounds, sales engineer Xing Yanxiu said at Chinaplas, held May 21-24 in Guangzhou.

    The public company also claims 661 million pounds of capacity for nylon salt, a water solution of nylon 6/6 monomers.

    ``We have been expanding steadily and now have the world's fourth-largest production base for nylon 6/6,'' Xing said.

    He said the Chinese nylon 6/6 market is increasing 15 percent a year, but Shenma's sales have been growing 30-40 percent annually.

    ``Although we are still small compared to those foreign producers, we have our own advantages,'' he said. ``We guarantee quick delivery and also take small orders that big multinational companies wouldn't even consider.''

    Most customers are Chinese domestic processors. The company also exports nearly 20 percent of its nylon 6/6 output to Southeast Asia and elsewhere.

    Nylon division Pingdingshan Shenma Engineering Plastics Co. Ltd. employs 1,500.

    Another subsidiary, Henan Shenma Chloride & Alkali Development Co. Ltd., has 220 million pounds of annual PVC capacity. Its second-phase facility will create an additional 441 million pounds of PVC capacity and will begin production later this year.

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