On December 30, 2008, Century Enka Ltd. announced that it was continuing its production curtailment for NTCF (nylon tire cord fabric), which was originally announced in mid-December. The Indian company has cut NTCF production by 35%–40% due to reduced demand from tire companies. The slowdown caused the company to build up excess inventories.
In the stock filing, Century Enka stated, “We regret to inform you that this partial suspension is still continuing as there is no revival in NTCF demand from tyre companies. At present, the production cut is in the range of 35-40%.”
The details of production and sales during the October-December 2008 quarter as compared to corresponding quarter of the previous year are as follows:
Products (Chips / Synthetic Textile Yarns / NTCF) – Sales – October to December 2008 – 26,661 MT – October to December 2007 – 29,564 MT
Products (Chips / Synthetic Textile Yarns / NTCF) – Production – October to December 2008 – 27,507 MT – October to December 2007 – 29,666 MT