Leading PVC manufacturer Shin-Etsu Chemical (Tokyo / Japan; www.shinetsu.co.jp) has reported an operating profit of JPY 19.7 bn (EUR 170m) in its PVC and chlor-alkali business segment for the year ended 31 March 2011, an increase of 0.5% compared with the previous year. Sales in the business rose by 19% year-on-year, reaching JPY 283 bn.

The company said that while demand in the US had been sluggish due to the long term slump in the housing market, its US subsidiary Shintech (Houston, Texas; www.shintechinc.com) had maintained a high level of shipments to its worldwide customers and expanded its business. Similarly, Shin-Etsu PVC in The Netherlands maintained high volumes. However, in Japan, a rise in raw materials prices and sluggish demand was compounded by a stoppage of operations at the company’s Kashima plant as a result of the Japanese earthquake in March 2011 – see Plasteurope.com of 22.03.2011.

Overall, the company recorded an operating profit up 27% year-on-year at JPY 149 bn on sales up 15% at JPY 1,058 bn. Shin-Etsu said the Asia region, centred on China, saw an ongoing recovery in the economy, while the US and Europe, despite signs of gradual recovery, saw a continuation of the serious economic situation reflected in high unemployment rates. The recovery in Japan lacked strength, the company said. Against this background Shin-Etsu focused on increasing sales while simultaneously carrying out business rationalising and streamlining measures, and developing and commercialising new products, it said.

Looking forward, Shin-Etsu said that given the unclear situation, it would not issue a forecast.