Douglas, Some pretty incredible bullish oil demand news out of China -
Thanks for the Nat Gas info. Am looking into nat gas producers. So many great cheap stocks in the energy sector, so little time. I am growing more and more dependant on this board for absolutely fabulous investment ideas. Care to name some names Doug? I'm partial to the under $10 cheapies cause they get better % gains than the majors, imo.
Energy News
Thu, 29 Apr 1999, 7:32am EDT
Beijing Yanhua to Spend 5.1 Bln Yuan in Next 3 Yrs on Expansion
Hong Kong, April 29 (Bloomberg) -- Beijing Yanhua
Petrochemical Co., China's biggest plastics maker, said it will
spend 5.1 billion yuan ($614.5 million) to increase production
capacity and cut costs as demand rises.
Chinese demand for resins and plastics will likely grow 6
percent a year in the next three years, said Cao Xianghong, the
company's chairman.
''We will achieve greater economies of scale and reduce our
unit cost of production by expanding our production capacity,''
said Cao. ''China's production of petrochemical products cannot
meet its demand and so there is scope for growth for competitive
Chinese producers.''
China's production of petrochemical products meets about
half of the country's demand. A 27 percent increase in domestic
production last year still left China with a shortage of 4.5
million tons of resins and plastics, analysts said.
The company's capital expenditure for this year will amount
to 1.4 billion yuan. It will rise to 2 billion yuan in 2000 and
then decrease to 1.7 billion yuan in 2001, said Qi Jiren, an
executive director at Beijing Yanhua.
About 3.84 billion yuan will go to expanding the company's
annual ethylene production capacity to 660,000 tons in 2001 from
450,000 tons today. The project, which will have a return on
investment of 12 percent, will help cut the company's unit cost
of ethylene production by 7 percent.
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