Low & Bonar PLC ("the Group"), the international performance materials group, publishes its interim management statement providing an update on its business since 30 November 2010.
In comparison to last year, the overall demand for our products has been strong across all markets through a combination of economic recovery, new products and increased exposure to emerging markets. Raw material polymer prices have escalated further but we expect that we will continue to be able to pass through price increases, albeit with a time lag. As a result the full benefit of increased revenues will not be felt until the second half.
Performance within the Yarns business is improving and is on track to be profitable this year. The restructuring project is progressing to plan and the Ostend site will close in June.
Our joint venture in Saudi Arabia with NATPET, announced on 1 February, is being established. Construction of the production facility in Yanbu is expected to commence in the third quarter. The joint venture is well positioned to take full advantage of the high growth geotextile markets in the Middle East and the Indian subcontinent given its technological, marketing and raw material strength.
In spite of the very high polymer prices, we remain confident that the Group will deliver another year of substantial progress.
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