Tuesday, July 1, 2008

HuaAn .. July 2008

Sino Hua-An’s additional capacity by Sept

KUALA LUMPUR: Sino Hua-An International Bhd, an independent producer of metallurgical coke, said the 600 tonnes new capacity added to its current 1.2 million tonnes capacity in May would come onstream fully in September.

“The additional capacity was completed in May. In June, I think we are looking at 70% of that 600 (tonnes), come July about 80%, come August 90% and full capacity in September,” said its executive chairman Tunku Naquiyuddin ibni Tuanku Ja’afar.

The increase in coal prices have raised concerns that the company’s margins would be affected this year but its executive director Cedric Choo Sia Telk said its margins were very much protected. He said coke price was trying to catch up with the current coal price.

“The challenge came in mid-November and December last year and early months (of this year) whereby there was a very sudden spike in the price of coal. There are other external factors that may affect the numbers (earnings forecast) that this year, one of which is the Beijing Olympics which is forcing certain industries within 600km radius (of the city) to close down ,” he said.

However, he said Sin Hua-An would not be affected by the ruling but instead it may need to increase its production on anticipation of a supply shortage.

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