Kowloon, Hong Kong - Flexible foam manufacturer Foamasters International Ltd has warned in its 27 May AGM (Annual General Meeting) statement that full-year performance will be below market expectations.
Growth achieved in sales since the start of 2008 has been slow compared to the same period last year, and the global economic slowdown has resulted in a gross margin decrease in the year-to-date, said the company. Steep pricing inflation in key raw materials and disruption in the domestic Chinese market have all contributed to the full-year financial performance, Foamasters added.
The company also announced in the AGM statement its installation of a second production line to produce 'Mobius' recycled polyurethane foam powders, which can be fed into the traditional foam production circuit.
The second production line will be installed at the Foamasters production facility in Zhejiang, China. The company expects it will be fully operational by October 2008.