IRP on course for revenue record

       SET-listed Indorama Polymers Plc (IRP),Thailand's largest polyethylene terephthalate (PET) producer, is aiming for 20% growth in revenue this year to a record 47 billion baht, thanks to growing global PET demand.
       PET prices are also expected to rise in the second half because of increasing raw material costs, said chief executive D.K. Agarwal.
       Crude oil prices have moved upward to a range of $65-70 per barrel in the second quarter, resulting in the same trend for petrochemical prices, he said.
       Global demand for PET resin - normally used in the manufacturing of drink containers - is forecast to expand by 3.2% to 15.8 million tonnes this year year and to rise by 7.6% to 17 million tonnes in 2010.
       Globally, leading beverage brands reported a 2-3% rise in sales volume in the first half of this year. PET is used in 65% soft drink container manufacturing worldwide and 53% of that in Asia, and the trend is growing for further use of PET instead of aluminium and glass.
       "The company expects its revenue to grow by 20%, from 41 billion baht in 2008 to 47 billion baht this year as sales volume surges 25% from 820,000 tonnes to 1.05 million," Mr Agarwal said yesterday at a briefing for investors.
       In the second quarter, IRP's net profit increased by 53.3% from the same period last year to 658 million baht even as revenue slipped 2.4% to 11.8 billion baht. First-half net profit fell 15.9% from 1.59 billion baht a year earlier to 1.34 billion but revenue rose 13.8% to 21.86 billion baht.
       Mr Agarwal said IRP expected higher sales growth in 2010 when its Alabamabased AlphaPet plant starts production in September after a two-month delay necessitated by plant modifications and contractor issues.
       To manage the delay, IRP assigned its subsidiary, Indorama Polyester Industry Plc, to produce 90,000 tonnes of PET bottles in the fourth quarter.
       The $182-million AlphaPet plant will lift IRP's annual capacity by 35-40% or 400,000 tonnes to 1.5 million tonnes,making it the world's second largest PET producer after M&G.
       "AlphaPet will be very aggressive in the market in the fourth quarter. Our internal target is 70-80%(of total production capacity) in the next year at least," said Mr Agarwal.
       The current profit margin of IRP is 5.5% compared with 3.8% last year. The company hopes to maintain the figure for the rest of this year.
       IRP shares closed yesterday on the SET at 11.80 baht, unchanged, in trade worth 131 million baht.