Plastic sales at Hull manufacturer Nippon Gohsei rose last year, but a planned factory shutdown hit profits hard.
The business, which has a plant at Saltend Chemicals Park on the edge of Hull, said market demand for its specialist plastic – Ethylene Vinyl Alcohol Copolymer - had continued to grow during the 2018/19 year.
Turnover at Nippon Gohsei rose from €130.4m to €130.7m during the year, and the company said it had invested in its Hull plant in a bid to keep up with product demand.
However, a major planned factory closure for maintenance work hit operating profits at Nippon Gohsei, and directors also warned of lingering Brexit uncertainty in the months ahead.
The company said in its accounts: “The overall market demand for EVOH continued to grow and we continue to work with our customers in developing new applications.
“Despite increased competition the company managed to maintain its competitiveness and increased sale volume in the year.
“Profit in 2019 was at a reduced level due to the charge of backdated royalties to group totalling €20m. Operating profit also decreased from the prior year due to a major planned plant shutdown where essential maintenance work was carried out.
“This occurs every four years.”
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Despite the rise in turnover, operating profits plummeted from €18.3m last year, to a loss of €6m.
Nippon Gohsei, a Japanese company, was formed in 1927 and today employs over 1,500 people producing a wide range of products on a global scale.
The 海角视频 operation in Hull was established in 2001, and the construction of the Saltend plant began in 2002, with commercial operation established in 2004.
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Nippon Gohsei specialises in the manufacture of EVOH – a plastic with high gas barrier properties which is used mainly for food packaging and fuel tanks.
Looking ahead, bosses at the company said they expected to see a further increase in trade in the year ahead.
They said: “The directors anticipate further increases in trading activity, although there is pressure in the market on sales price, rise in raw material prices and the uncertainty surrounding Brexit.
“The company is in a good position to respond to increasing market demand, having invested in the plant and skill base across the business.
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“The company is cautiously optimistic for continued steady growth despite increased competition.”
In the 海角视频, Nippon Gohsei employs around 125 people.
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