Despite excess capacity, Polyplex upbeat on PET film

By Gurdip Singh
Correspondent

Published: July 19, 2012 6:00 am ET

Related to this story

Topics Packaging, Film & Sheet

BANGKOK (July 19, 1:15 p.m. ET) — The excess capacity from new film plants, mostly in Asia, will not last forever, assured Polyplex (Thailand) Public Co. Ltd. Chairman Manu Leopairote.

As anticipated, the polyester film industry retraced from historical highs of the previous year with margins recalibrated to normalized levels, he pointed out in the company’s 2011-2012 annual report.

Leopairote said Polyplex would remain upbeat about the plastic film industry. The company believes that the steps taken to diversify risks associated with cyclical nature of polyester industry would contribute to maintaining the growth tempo as well as a reasonable bottom line, he wrote in the report.

Backed by a strong and liquid balance sheet, Polyplex would continue to grow the business.

The new thin polyester film line in the United States was the continuation of the company’s policy to have a geographically diversified manufacturing base, he said.

He said Polyplex was fully committed to the expansion projects announced in the last 18 months despite the sharp downturn in margins and a challenging outlook for the current year. Polyplex has committed more than US$200 million on these projects, which would double the asset base in next 12 months.

All the projects were progressing satisfactorily and were expected to commence commercial operations on time, he added.

Notwithstanding the comparison with previous year profitability, the Polyplex numbers for the fiscal year were quite respectable.

After-tax profit fell 65 percent to Baht 1.36 billion (US$42.92 million) but the company still had a reasonable net margin on sales of 13.27 percent.

Sales were down 9.3 percent on the year at Bt10.14 billion (US$320 million), reflecting the compression in selling prices despite higher volumes.


Comments

Despite excess capacity, Polyplex upbeat on PET film

By Gurdip Singh
Correspondent

Published: July 19, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Berry's rebranded Blue Clover expands packaging design reach

January 23, 2015 1:59 pm ET

As design director of Berry Plastics Corp.'s rebranded packaging design studio, Scott Fisher believes the new name of Blue Clover Studios cuts the...    More

Image

W&H buys bigger stake in BSW

January 23, 2015 10:43 am ET

Windmoeller & Hoelscher KG will get more involved in flexible packaging machinery through its bigger stake in machinery maker BSW Machinery Handels-...    More

Image

Esterform buys Constar UK, doubles PET preform capacity

January 23, 2015 10:07 am ET

Constar UK, once part of global packaging firm Constar International Holdings LLC, has a new owner.    More

Image

Delia to take over as CEO at Amcor

January 22, 2015 10:27 am ET

There will be a leadership change at the helm of Australian packaging company Amcor Ltd. starting in July.    More

Image

European study finds 'no consumer health risk' from current BPA levels

January 21, 2015 9:45 am ET

The European Food Safety Authority (EFSA) has concluded there is no health risk to consumers of any age group from current exposure levels to bispheno...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events