Equipment

British Polythene Industries expects sales volumes in the second half of 2006 to be lower than in the same period in 2005.

In a trading statement released before Christmas, the company, which is the largest manufacturer of polythene film, bags and sacks in Europe, also blamed increases in raw material costs during the late summer and early autumn for reduced sales and narrower profit margins.

However, the company said that it had since reduced operating costs and sales margins had recovered. It said that second-half performance would be in line with expectations.

BPI will announce its results for the year to 31 December on 5 March.