Brussels — Sales at Recticel were up 4.6% in the first quarter of 2018, to EUR 382m.
The f0amer confirmed it was pursuing expansions in its quarterly results statement. Recticel said: ‘Technical Foams teams are finalising their expansions projects in China and Morocco, both due to start up during the second quarter of 2018.’
In Finland, the construction of the company’s insulation plant is on schedule to start up in the fourth quarter of this year,. Output from this will go to Scandinavian and Baltic markets, according to the statement.
Olivier Chapelle, the group’s CEO, said he was ‘satisfied with the overall sales growth generated during the first quarter of 2018, despite the harsh weather conditions that prevailed. The markets in which we operate have remained overall supportive, with exception of the United Kingdom.’
In addition to this, the PU industry faced raw material price increases during the first quarter of this year which impacted on Recticel’s operations, the statement said.
The group has four segments, which comprise flexible foams, automotive, bedding and insulation.
The highest sales increase was reported by the automotive division. Here turnover rose by 12.8% compared with the first quarter of 2017.
Despite this, Chapelle said his company was focused on ‘the execution of its geographic growth initiatives and on the divestment of its Automotive divisions.’
In comparison, Recticel’s bedding division reported lower sales for last quarter. These were down by 5.8% compared with the same period in 2017. Insulation sales fell by 2%. Flexible foams sales were 6.4% higher.
Last March, Recticel reportedly initiated the sale of its automotive division by hiring consultancy firm EY to assist in the process, according to local business daily De Tijd. The planned deal could be worth up to EUR 150m.
Recticel has a global workforce of 8,411, including joint ventures. It is present in 28 countries. Recticel owns 98 production facilities and offices, according to data from the group.