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Adhesives price rise warning
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Cautious optimism for adhesives industry, says report The UK adhesive sector is showing good and improved profitability, and this trend should continue throughout 1988. However, a cautionary note is sounded, with a slow down in the UK's economic growth being forecast and the consequent effects which will be felt by the UK adhesive industry which supplies wide sectors of British industry. These are just some of the conclusions arrived at in the report "Adhesive Manufacturers - - 9th Edition', recently published by information specialists TCC Business Ratios, UK. The report analyses and compares the financial performance of 60 UK adhesive companies over three years to March 1987. The main highlights of the report are: an 11.6% growth in sales in the first half of the period covered and 10.6% in the second half, giving an overall rise of 23.4% for the 3 year period. Profit margins improved from an average of 5.5% to 7.3% with a middle year figure ( 1 9 8 5 / 8 6 ) of 4.6%. Returns on capital have improved over the 3 years from an average of 14.1% to
18.3% with no dramatic changes in asset utilisation or stock turnover. The report looked at 3 main sectors: • Adhesive manufacturers, with Evode Group PLC, UK, Berger, Jenson and Nicholson Ltd, UK, leading the way with turnovers ( 1 9 8 6 / 8 7 ) of £70m and £78.2m and annual sales growths of 15% and 6%, respectively. • Adhesive and adhesive product manufacturers, with Ciba-Geigy PLC ( 1 9 8 6 / 8 7 , £625.5m; 1 9 8 4 / 8 7 , 5%), DRG (UK) Ltd (£477.9m; 5%) and 3M United Kingdom PIc (£408.5m; 11%)
the leading companies in this sector. • Adhesive product manufacturers, with the leading company in this sector being RafLatac Ltd, UK, who had a 1 9 8 6 / 8 7 turnover of £21.9m. The outlook for the UK adhesives industry is for a steady continuing growth and good profitability in the short term but that this may slow down and some flattening in profits is likely in the long term, according to the report. Adhesives Manufacturers, 9th Edition is priced at £ 1 6 5 (free of VAT) and is available from ICC Business Ratios, London EC 17 8QE, U/C
Adhesives price rise w a r n i n g Substantial price increases of 30% or more are predicted for poly (vinyl acetate) homopolymer and copolymer adhesives and acrylic adhesives by the British Adhesives Sealants Association. These price rises are the direct result of a major fire and explosion at the Hoechst/ Celanese acetic acid plant in Texas, USA on 1 4 November 1987 which resulted in its complete shutdown. Acetic acid is one of the key raw materials from which PVA and acrylic adhesives are manufactured, and as the Hoechst/Celanese plant is one of the world's largest, there is now a global shortage of acetic acid and its price has risen dramatically. For more details contact: Dr Peter Bosworth, BASA, 2A High Street, Hythe, Southampton, SO4 6YW, UI~
The new Kroenert Reco 700A coating and laminating machine, from Engelmann of Buckham Machinery Ltd (UK), is designed to apply aqueous or solvent based adhesive coatings to a paper or film substrate for subsequent lamination purposes. The machine pictured above was supplied to Basildon based Coated Specialities Ltd, to replace their original Kroenert Reco 2 bought in 1962. CSL manufacture large quantities of adhesive covering film and double coated tape. The new version is designed to handle materials from 12 micron polyethylene to 160 g paper up to a maximum web width of 1650 mm at a maximum machine speed of 200 m per minute. The Engelmann [~ Buckham Group, William Curtis House, Lenten Street, Alton, Hampshire, GU34 1HH, UIC
INTJ.ADHESION AND ADHESIVES APRIL 1988
67
l/ll i / t i l / l l !
iilll
Cautious optimism for adhesives industry, says report The UK adhesive sector is showing good and improved profitability, and this trend should continue throughout 1988. However, a cautionary note is sounded, with a slow down in the UK's economic growth being forecast and the consequent effects which will be felt by the UK adhesive industry which supplies wide sectors of British industry. These are just some of the conclusions arrived at in the report "Adhesive Manufacturers - - 9th Edition', recently published by information specialists TCC Business Ratios, UK. The report analyses and compares the financial performance of 60 UK adhesive companies over three years to March 1987. The main highlights of the report are: an 11.6% growth in sales in the first half of the period covered and 10.6% in the second half, giving an overall rise of 23.4% for the 3 year period. Profit margins improved from an average of 5.5% to 7.3% with a middle year figure ( 1 9 8 5 / 8 6 ) of 4.6%. Returns on capital have improved over the 3 years from an average of 14.1% to
18.3% with no dramatic changes in asset utilisation or stock turnover. The report looked at 3 main sectors: • Adhesive manufacturers, with Evode Group PLC, UK, Berger, Jenson and Nicholson Ltd, UK, leading the way with turnovers ( 1 9 8 6 / 8 7 ) of £70m and £78.2m and annual sales growths of 15% and 6%, respectively. • Adhesive and adhesive product manufacturers, with Ciba-Geigy PLC ( 1 9 8 6 / 8 7 , £625.5m; 1 9 8 4 / 8 7 , 5%), DRG (UK) Ltd (£477.9m; 5%) and 3M United Kingdom PIc (£408.5m; 11%)
the leading companies in this sector. • Adhesive product manufacturers, with the leading company in this sector being RafLatac Ltd, UK, who had a 1 9 8 6 / 8 7 turnover of £21.9m. The outlook for the UK adhesives industry is for a steady continuing growth and good profitability in the short term but that this may slow down and some flattening in profits is likely in the long term, according to the report. Adhesives Manufacturers, 9th Edition is priced at £ 1 6 5 (free of VAT) and is available from ICC Business Ratios, London EC 17 8QE, U/C
Adhesives price rise w a r n i n g Substantial price increases of 30% or more are predicted for poly (vinyl acetate) homopolymer and copolymer adhesives and acrylic adhesives by the British Adhesives Sealants Association. These price rises are the direct result of a major fire and explosion at the Hoechst/ Celanese acetic acid plant in Texas, USA on 1 4 November 1987 which resulted in its complete shutdown. Acetic acid is one of the key raw materials from which PVA and acrylic adhesives are manufactured, and as the Hoechst/Celanese plant is one of the world's largest, there is now a global shortage of acetic acid and its price has risen dramatically. For more details contact: Dr Peter Bosworth, BASA, 2A High Street, Hythe, Southampton, SO4 6YW, UI~
The new Kroenert Reco 700A coating and laminating machine, from Engelmann of Buckham Machinery Ltd (UK), is designed to apply aqueous or solvent based adhesive coatings to a paper or film substrate for subsequent lamination purposes. The machine pictured above was supplied to Basildon based Coated Specialities Ltd, to replace their original Kroenert Reco 2 bought in 1962. CSL manufacture large quantities of adhesive covering film and double coated tape. The new version is designed to handle materials from 12 micron polyethylene to 160 g paper up to a maximum web width of 1650 mm at a maximum machine speed of 200 m per minute. The Engelmann [~ Buckham Group, William Curtis House, Lenten Street, Alton, Hampshire, GU34 1HH, UIC
INTJ.ADHESION AND ADHESIVES APRIL 1988
67