Profits soar at Nippon Gohsei UK as demand for product rises
By Hull Daily Mail | Posted: 26 Oct 2018
Profits are up at Saltend-based plastic manufacturer Nippon Gohsei UK as demand for the company’s specialist product continues to rise.
Nippon Gohsei, part of the Saltend Chemicals Park, saw revenue rise to £115m in the year ending March 31, 2018, as profits soared to £13.1m.
The Japanese company, which runs its UK arm from Hull, said investment in the Saltend plant meant it was well placed to meet rising demand for its products.
Nippon Gohsei UK manufactures a special type of plastic, used primarily for food packaging and fuel tanks.
The company said in its accounts, filed recently: “The overall market for EVOH (Ethylene Vinyl Alcohol Copoylmer) continued to grow at a good rate, enabling turnover to increase and profits to improve.
“Trading profit increased on the back of good sales volume and production.
“The directors anticipate a further increase in trading activity, although there is pressure in the market on sales price and rises in raw material prices which could impact on the expectant level of profitability.”
Nippon Gohsei saw its UK revenues rise from £9.2m in the 2016/17 financial year, to £11m in the last year.
Revenues also rose for the company across European countries, and the rest of the world.
Nippon Gohsei UK employs more than 120 people at its Saltend site.
The business said while the price of raw material “remains a concern” as it moves forward, it was well placed to continue its growth.
“The company is in a good position to respond to increasing market demand, having invested in the plant and skill base across the business.
“Raw material prices remain a concern and the directors continue to monitor closely to mitigate the impact.
“With current planned capital expenditure, it is expected to remain debt-free within the next financial year.”
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 UK operation in Hull was established in 2001, and the construction of the Saltend plant began in 2002, with commercial operation established in 2004.
The Hull factory manufacturer SoarnoL, an environmentally-friendly product used in plastics packaging such as bottles and containers.