Zotefoams Warns of Higher Energy Costs
Zotefoams’ is U.K. based and its main manufacturing process is particularly energy-intensive, involving cross-linking polyolefins in large autoclaves under high pressure and at elevated temperatures.
On 10 August 2004, U.K. polyolefin foam maker Zotefoams has warned that higher energy costs will present “a major challenge” for the company this year. The company raised sales and profits in the first six months of the year.
Announcing its interim results, the Croydon-based firm expresses its fear of increasing its energy bills significantly. This raise is expected since the present supply arrangements will expire in October. They are currently reviewing all other options, including selling price rises, with respect to these and other inflationary cost increases.
The company managed to improve its financial performance over the last six months. When compared to with the same period last year, it recorded a 7% growth in sales and profits to £13m (E19.5m) and £870,000 (E1.3m) respectively.
Operationally, the company’s North American plant reached a new production record in June and the U.K. plant had new high-pressure capacity autoclave commissioned in April.
Chairman Bill Fairservice stated that, on the overall view the company is believed to be in good shape to face the challenges it anticipates for the second half of the year. And investment in new product development is showing promising signs for the medium term.