Plastics margin increases

Sinopec Beijing Yanhua Petrochemical chairman Du Guosheng said the plastic-maker's gross profit margin has recovered to about 16 per cent in the first quarter this year, after falling from 1999's 18.3 per cent to 14.8 per cent last year due to weak product prices and high raw material costs. Debt gearing is expected to rise to 47 per cent by the end of this year from 40.4 per cent at the end of last year, due to borrowings to fund heavy capacity expansion.