There was a strong recovery in the performance of industrial blow moulder Gem Plastics (Regaskin, Co Cavan / Ireland; www.gemplastics.ie) in the 12 months to 31 December 2011. Net profit of EUR 430,000 in the period was a significant improvement on 2010, when the group posted a loss of EUR 554,000 after exceptional items. The improvement followed an extensive restructuring programme that saw Gem consolidate and restructure its production operations, which include Gem Oils, which supplies lubricants and associated products to a range of market sectors across Ireland. The businesses generated earnings before interest, tax, depreciation and amortization of more than EUR 2m in 2011, following a 19% increase in sales of almost EUR 25m.

In addition to the production reorganisation and strong sales growth, the substantially improved financial performance for 2011 is attributed to the implementation of a lean manufacturing programme. The firm also benefited from a EUR 500,000 equity investment of Enterprise Ireland (Dublin / Ireland; www.enterprise-ireland.com) and, it says, continuing support from its banks and funding partners.

Family-owned Gem Plastics produces blow moulded HDPE containers in sizes from five litres up to 220 litres. It employs 84 staff on its 10,000m² production and warehousing site. The order book situation reportedly is strong and the group plans a significant capital investment this year, too.