Dutch turnover up 9%

09 August 1997 00:00  [Source: ICB]

Improved global conditions benefited the Dutch chemicals industry in the first half of 1997, according to the Association of the Dutch Chemical Industry (VNCI). The upturn in the world economy along with increased demand pushed turnover up 9% to Dfl27.1bn ($13.2bn) in the first half.

While the US and Far Eastern markets became net importers of European chemicals, competition in the regional European market declined allowing the Dutch industry to prosper, said the association. Rising sales prices and volumes aided the figures, although price hikes for raw materials prevented any major rises in margins in some areas. Overall profits were up 12% on 1996 at more than Df13bn.

A VNCI spokesman said: 'Had we been able to pass on the full raw materials increases the profits would have increased more.'

Production volumes rose 8% and plant utilisation remained constant at 87%, contributing to a considerable improvement in operating efficiency within the industry. Currency fluctuations played their part in the figures. A strong dollar, used to buy raw materials, and a weak deutschmark combined to hit margins.

Stringent regulations meant that environmental charges were up by 6% to more than Dfl1bn. The spokesman added: 'The beneficial world situation has helped us a lot, especially as we mostly deal with base chemicals.'

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