News

British Polythene Industries (BPI) said today that "attritional" increases in polymer prices had placed its margins under "constant pressure".

In a trading statement, the Greenock-based polythene film, bag and sack producer said trading in the past six months had been reasonable although volumes were "somewhat sluggish".

Monthly price increases in polymer have reduced margins as the company is unable to continually raise its prices in line with suppliers' prices.

But despite high oil feedstock prices, BPI predicted that polymer prices would fall over the next year as global capacity increases.

Its results for the first half of 2006 will be "a little below" the same time last year despite rationalisation in some areas of the business earlier this year.

The firm will publish its results for the six months to 30 June on 3 September.