NEWS


Production decline hits Eurocell sales and profit


Sales at UK-based profiles manufacturer Eurocell declined by more than 30% for the first half of 2020. The company reported


sales of nearly £94 million (US$118m) for the period, compared to around £136m (US$170m) for the same period in 2019. At the same time, the company posted a loss of more than £16m (US$20m), compared to a profit of more than £10m (US$13m) for H1 2019. In line with many other businesses, Eurocell was closed for six weeks between March and May – which led to the reduced output. Despite this, average sales per trading day declined by just 4% for the period. On this basis, sales for July and August are 12% ahead of 2019 – with building plastics performing more strongly than profiles. The company has also cut its workforce by around 3%


“Since re-opening, sales


Kelly: “Since re-opening, operating efficiencies have been better and gross margins are improving.”


(about 50 employees). Production decreased by


around 38% in the period, as the company made around 16,600 tonnes of rigid and foam PVC profiles (down from 26,600 tonnes). However, overall equipment efficiency of its machinery increased to 76% (from 73% in H1 2019), due to an earlier investment of £5m (US$6m) to increase capacity.


have exceeded our initial expectations, and we have been encouraged by recent market trends,” said Mark Kelly, CEO of Eurocell. “We are pleased that operating efficiencies have been better and that gross margins are improving as volumes increase.” The company used 4,700 tonnes of recycled PVC in co-extruded rigid profiles in the first half of the year, representing 26% of overall material consumption. This compared with 6,400 tonnes (22% of the total) in the same period in 2019. “Expanding the use of


recycled material increases our profits, because the cost of recycled compound is typically lower through the cycle than the price of virgin material, and reduces our exposure to volatile com- modity prices,” said Kelly. � www.eurocell.co.uk


Auxo buys two PPG companies


Auxo Investment Partners, a private equity company, has acquired two plastics extruders – Paramount Tube and Euclid Medical – from Precision Products Group (PPG). Paramount makes small


diameter, spiral-wound and extruded tubular products that provide customised, tight tolerance and uniquely shaped solutions. Euclid makes automated single- and multi-dose pharmaceutical packing systems, and converts medical-grade films into pharmaceutical packaging. “We selected Auxo as


our partner because of their desire to support our vision for growth and the values our organisations share,” said Dave Hooe, CEO of PPG, who will continue in his role. � www.auxopartners.com � www.ppgintl.com


Water pipe research project reveals results


A UK research project, to examine the long-term performance of plastic drinking water pipes, has reported its results – after more than 30 years. Severn Trent Water has exhumed the plastic pipes – installed in special testbeds at two of its pumping stations in the 1980s and 1990s – in the project that it funded with UK Water Industry Research (UKWIR). Pipes and joints have been kept ‘in-service’ and recently subjected to specific chemical and mechanical testing – especially to predict when the pipes will begin to leak or burst. This


www.pipeandprofile.com


information will help to improve the performance of the UK’s drinking water network, as more than 90% of new water pipes are made from PE. Test results show that polyethylene (PE) pipes with similar characteristics to the ones recently dug up will last for longer than the current 50-year design life. More recent high-pressure pipes, such as PE100, could have a useable life up to 160 years. The project also revealed that


installation issues cause most of the joint failures on PE pipe.


“Thanks to the foresight of engi- neers 40 years ago, today’s water industry engineers have a valuable asset – robust data,” said Jo Claronino, technical lead at Severn Trent Water. “The hope is that this can be used to create a national database of compa- nies’ analysis showing the life expec- tancy of water supply networks across the UK and Ireland.” While one of the testbeds been decommissioned, the other is still operating. � www.stwater.co.uk � www.ukwir.org


October 2020 | PIPE & PROFILE EXTRUSION 5


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