Brzeg Dolny, Poland — First half 2019 EBITDA in the Polyurethane division of PCC Rokita fell by 26.8% compared with the first half of 2018. Earnings were PLN 20.99m ($5.3 m) in the 2019 period.
Sales in the division were almost unchanged at PLN 353m in first half of 2019.
The company blamed the 'stagnant' European flexible foam market for the situation. It added that high market availability of polyether polyols depressed prices in the half. It said there was 'an intensive inflow of goods from the Sadara complex.'
The falling price of propylene oxide – a key polyol raw material – also depressed polyol prices. TDI prices also fell over most of the half. This helped reduce cost of TDI/polyether foam. This is making PU foam mattresses more competitive, Rokita added.
PCC Prodex is PCC's polyurethane systems business. This saw sales grow the spray foam sector in the half.
The IRPC polyol business in Malaysia had a difficult half. The company blamed the because of easy availability of polyols in the region. 'Aggressive commercial policies of major Asian producers,' made the situation worse, said the company.
Looking across the company, sales were PLN 734m the first half 2019.This higher by 1.8% than the same period in 2018.
Meanwhile, EBITDA in the company grew by 2%. The company generated earnings of PLN 132m in the first half.
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