re: Ann: Proposed Selective Capital Reduction... Based on...

re: Ann: Proposed Selective Capital Reduction... Based on information on CCFEI I think the overall performance in the first qtr will be subdued, despite P4 because:

1) Both the feedstock and nylon prices are declining because the crude oil price has declined significantly in the past 3 months, which negatively impact on margins (the general logic is that we bought the feedstock at high prices prior to P4 commisioning, but when we produced the goods the order price for final products falls).

2) Downstream buyer very cautious about inventory levels, not willing to put big orders.

3) Most fibre producers are on a break-even profitability level, with ultilazation rate around 60%. Most of them, like Mesbon, are expanding production capacity aggressively over the past three years. Therefore I don't see how Mesbon could achieve an outstanding result when the big environmnet is week. The big cycle will turn, but it takes time.

4) Greece is still affacting global confidence.