SECOS Group Limited\u2019s restructuring initiatives and global demand for resins is driving strong growth across its businesses.<\/p>\n
The company develops and produces sustainable and eco-friendly bioplastics that are used primarily in the packaging industry.<\/p>\n
The group\u2019s patented products were instrumental in driving fiscal 2017 revenues of $22 million across its businesses in Australia, China, Malaysia and the US.<\/p>\n
Management is forecasting sales to exceed $24 million in fiscal 2018 with the scope for substantial growth in 2019 as recent operational changes have a full year impact.<\/p>\n
Increasing demand for proprietary residence
\nSECOS has benefited from the growth in global demand for its proprietary compostable and biodegradable resins.<\/p>\n
The move to ban the use of traditional plastics in a number of geographic regions is driving demand for environmentally friendly alternatives.<\/p>\n
SECOS expects to continue to benefit from this market shift, as governments around the world increasingly announce bans on traditional, environmentally unfriendly plastics.<\/p>\n
China restructuring leads to 100% capacity utilisation with material cost savings
\nFrom an operational perspective, SECOS has gained an immediate benefit from the restructure of the company\u2019s Nanjing manufacturing business.<\/p>\n
While this resulted in a one-off expense of approximately $650,000, the business is achieving annualised fixed overhead cost savings of approximately $240,000.<\/p>\n
The completion of this work will result in SECOS\u2019 Nanjing resin plant operating at full output capacity for the first time.<\/p>\n
Full order book for first quarter
\nRobust production is expected to continue in 2018 as its Chinese operations contribute materially to overall growth in revenue and cash flow.<\/p>\n
SECOS\u2019s resin orders are now booked out to the end of the current quarter, with orders expected to continue to grow into the June quarter.<\/p>\n
Malaysian operations ramping up
\nSECOS\u2019s Malaysian operations will commence producing resin in the June quarter to meet growing South East Asian orders.<\/p>\n
This follows the expansion and upgrade of the new Malaysian plant.<\/p>\n
SECOS expects to achieve further growth in orders and revenue in the June quarter as a result of government contract wins in Australia and initial resin orders from the US.<\/p>\n","protected":false},"excerpt":{"rendered":"
SECOS Group Limited\u2019s restructuring initiatives and global demand for resins is driving strong growth across its businesses. The company develops and produces sustainable and eco-friendly bioplastics that are used primarily in the packaging industry. The group\u2019s patented products were instrumental in driving fiscal 2017 revenues of $22 million across its businesses in Australia, China, Malaysia […]<\/p>\n","protected":false},"author":59,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","nova_meta_subtitle":"","footnotes":""},"categories":[5572],"tags":[5838,5847],"supplier":[10686],"class_list":["post-50430","post","type-post","status-publish","format-standard","hentry","category-bio-based","tag-bioeconomy","tag-bioplastics","supplier-secos-group-limited"],"_links":{"self":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/50430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/comments?post=50430"}],"version-history":[{"count":0,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/50430\/revisions"}],"wp:attachment":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media?parent=50430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/categories?post=50430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/tags?post=50430"},{"taxonomy":"supplier","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/supplier?post=50430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}