REMSCHEID, 25 July 2008 – Oerlikon Barmag is celebrating the start up of its first production plant for the manufacture of polytrimethylene terephthalate fully drawn yarn (PTT FDY) at Jiangsu Zhonglu Technology Co., Ltd., an affiliate of Shenghong Group. With 32 spinning positions, this PTT plant is currently the largest in China. Located in the Chinese province of Jiangsu, the plant achieved the desired yarn quality upon commencement of operations.

As one of the largest polyester manufacturers in China, Shenghong Group is increasingly focused on sophisticated materials and applications. "The pressure on the margin for commodity yarns is extremely high. We are increasingly exposed to competition from other Asian countries who can produce these goods at lower cost. Thus in the future we will focus on the high-priced segment and niche markets. In this respect, PTT is an outstanding addition to our portfolio," said Miao Han Gen, CEO of Shenghong Group. PTT is a polyester variant which is a very complex material in terms of processing, so that complete control of the production process by the yarn manufacturer is an absolute must.

Due to their special properties, PTT yarns are not only substitutes for polyester and polyamide in textile applications, but open up new possibilities for use as well. PTT is extraordinarily soft and highly elastic, yet retains its shape very well. High light-fastness and wash resistance make this material ideal for use in areas where durability is required. Furthermore, PTT repels dirt and builds up hardly any static charge. Accordingly, PTT is used primarily for sports clothing - in particular for swimsuits in this case - and for home textiles.

The unique properties of PTT yarn as well as the sophisticated production process ensure attractive margins for yarn manufacturers.

For further information, please contact:
Susanne Beyer
Corporate Communications

Tel. +49 2191 67-1526
Fax +49 2191 67-1313

susanne.beyer@oerlikon.com