Foam producer Zotefoams (Croydon / UK; www.zotefoams.com) is predicting high single-digit percentage growth in its polyolefins business for the first six months of this year. In its trading update at the end of June, the company said it was also expecting growth of nearly 50% (on a constant currency basis) in its high performance products (HPP) business. Revenue from its “MuCell Extrusion” (MEL) technology licensing activities was anticipated to be in line with 2013’s levels although Zotefoams noted that activity was high.

The company also announced that its “microZOTE” extrusion line at the Croydon site will now be used solely for development and manufacturing there will cease. The decision by the Board follows recent technical innovations at MEL where results in foaming a variety of polymers have been extremely promising. These polymers are outside MEL’s core focus on consumer packaging but many have synergy with Zotefoams’ HPP business and require further technical and market development. The company has decided it would be best to develop further expertise at Croydon, allowing MEL to focus on existing products and markets. The move will result in a one-off charge of approximately GBP 1.2m.

Commenting on raw material prices for the year to date, Zotefoams said the average euro price of LDPE has been similar to that in 2013. However, the company commented that any benefit from sterling’s strengthening in 2014 when purchasing in euros will be outweighed by the impact on foreign currency sales and assets.

Zotefoams expects to announce its half-year interim results on 12 August 2014.