A major polyethylene terephthalate (PET) manufacturer Indorama Polymers Plc (IRP) expects that ample output of PET products will double up its revenue next year.
The PET project in Lithuania with the production capacity of 198,000 tons a year could be active by April 2006; this combined with total production in other facilities would enhance company's consolidated production capacity of PET polymers to 508,000 tons per year from 226,000 at present, said Anil Lohia, group chief executive officer for IRP.
Lohia expected 100 percent revenue growth in 2006.
Expansion of Petform, a JV with Sermsuk Plc will boost the company's production capacity next year. This JV will come on-stream in the first quarter.
After the completion, output figures of Petform products will soar to 348 million pieces per year from 244 million per year and closures will swell to 540 million pieces per year from 360 million at present.
The company will also start production of bottles with the target of manufacturing 150 million pieces per year and proposes to increase its PET production capacity of StarPet, a wholly owned US subsidiary of IRP.
When all the production projects are operational, IRP will become the seventh largest PET producer in the world with 4 percent market share, Mr Lohia informed.
IRP registered 2.76 billion baht in revenues for the third quarter of this year, up 93 percent year-on-year but down 3.5 percent quarter-on-quarter. Its net profit was 223 million baht compared with 148 million baht in the second quarter and 28 million baht in the same period in 2004.
In the first nine months, company registered a net profit of 519 million baht, up from 132 million baht in the same period last year, on revenues of 8.47 billion baht, up 151 percent year-on-year.
Lohia stated that company's gross margin in the Q3 was 16 percent, up from 13.8 percent in the previous quarter.
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