Keyuan saw 2010 revenues up seven-fold

ERJ staff report (DS)

Ningbo, China -- Chinese plastics supplier, Keyuan Petrochemicals Inc. said it sold seven times as much material in the 12 months to December 2010 as it did a year previously. Revenues increased in proportion.

Keyuan commenced construction of its first Styrene-Butadiene-Styrene ("SBS") production facility adjacent to its existing production facility in September 2010. The facility, completed in September 2011, will have an annual production capacity of 70,000 metric tons.

For the twelve months ended December 31, 2011, the Company sold 658,570 metric tons (MT) of petrochemical products, up 777.1 percent from 75,081 MT of products sold last year. Revenues for the twelve months ended December 31, 2010 totaled $558.8 million, up 714 percent from $68.7 million of revenues in the full year 2009. For the twelve months of 2010, cost of goods sold was $490.9 million, with gross profit of $67.8 million. Gross margin was 12.1 percent for the twelve months of 2010 compared to a loss in the corresponding period last year.

Keyuan also noted that on January 25, 2011, the Company received approval for a utility patent from the National Intellectual Property Bureau in China. The Company's proprietary production process, called multiple ethylene propylene ("MEP") improves the manufacturing efficiency and flexibility for a variety of petrochemicals.

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Press release from Keyuan