Materials
RPC buys Slovakian firm but hit by materials costsstevenkiernan, 3 July 2007Be the first to comment on this article Rigid plastics group RPC has bought its first injection-moulding facility in central Europe with the 2m purchase of the plastic manufacturing operations of DM Plast in Slovakia. The firm is well-placed to take advantage of the growing markets in the east of the continent, and has also worked with Western European customers, notably personal and home care product manufacturer Henkel. Although RPC already owns several facilities in Eastern Europe, mainly in Poland, they mostly produce thermoformed plastic containers. RPC announced the deal last month as it revealed that its profits had been hit hard by the continued rise of raw material costs. Although the group recorded a 5.6% increase in sales for the year to 31 March, pre-tax profit fell by more than a quarter. Chairman Peter Williams said the results were “solid” in a difficult year. Polymer costs are expected to remain high for the next 12 months, but RPC is buoyed by several projects in the pipeline, including a number in the pharmaceuticals sector. RPC ANNUAL RESULTS • Sales up 5.6% to £645.7m • Pre-tax profit down 28.4% to £18.9m • Highest-ever polymer costs – £20m increase over the year • Sales of fruit bowls to a major customer halved • Increased contribution from Bramlage-Wiko cluster • Replacement for finance director Chris Sworn to be appointed soon. He will manage RPC’s blow-moulding business until retirement in two years. Speak Your Mind |
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