According to this article from a PR firm (I cannot confirm the figures) on Li Heng:
- In 2007, China became worlds largest nylon producer... but is still a net nylon importer, relying on imports for high-grade nylon.
- The nylon produced by Li Heng is of a quality that borders on domestic and import grade (e.g.: undergarments, swimwear)
- Li Heng is a leading producer of high-end nylon in China with a 15% market share...and has one of the highest operating margins (34%) among textile players
- Polyamide, a by-product of oil, comprises over 90% of Li Heng’s cost of sales.
- Inventory management is important as nylon has a shelf life of only 5 months
- To address cost pressures, Li Heng is looking to produce its own polyamide by 3Q09