In the 12 years of its existence, IRP has gone from strength to strength in every aspect of its operations. Our remarkable
journey to the forefront of the PET polymers industry is achieved out of a vision to be the world’s best. As the IRP
saga surges forward, we expand our vision to even further horizons.
TAKING CLEAR VISIONS TO REALITIES
RP has aligned its capabilities and strategies to its vision and harnessed the best of resources to create world class products.
people who have strived for and achieved both growth and success in the year 2007.
IRP vision to be a recognized global producer of PET polymers is now a reality with plants located in the three major continents
of Asia, Europe and North America. The business has grown from around 30,000 tons per annum in year 2002 to 600,000 tons
per annum in year 2007. IRP started its journey in 1995 with a small sized plant in Lopburi, Thailand to produce PET polymers
to service the domestic market. In the initial years the emphasis was towards gaining business knowledge, understanding
which was supplemented by growing global demand for the product. The movement towards growth began with the expansion
supplier relationships and an experienced team of managers. The people at Indorama Polymers have combined their energies
towards realizing the Mission and Vision of the company,
To be among the top three companies in the world
To be the most respected and preferred Company for all stakeholders
To be the beat team and best workplace
We believe Togetherness is built on three pillars…Respect, Sharing and Learning.
Respect is built around recognizing the role, value and contribution of the people. Sharing drives open, transparent and
productive communication across all functions, geographies and people. Learning is striving for growth towards the path of
progress and achievement.
Our culture which consists of a healthy mix of commitment and performance is the real energy that drives the
organization.
FINANCIAL PERFORMANCE : GROWTH AND SUCCESS
Growth in business is directed towards growing revenues, earnings and cashflows. Year 2007 was a challenging year with,
• Crude rising to US$ 100 a barrel resulting in cost push on energy costs
• Strengthening of Thai Baht viz-a-viz US$ impacting translation of earnings from overseas subsidiaries
• Short term shortage of a key raw material MEG due to an explosion in a major producers plant resulting in a sharpincrease in prices
Despite the challenges, IRP achieved sales volume growth of 127.6%, higher earnings and a return on equity of 20.9%.The
key financial highlights are:
2006
2007
Growth
Net Sales
11,863
25,559
115.4%
EBITDA
1,270
2,071
63.0%
Net Profit
784
1,073
36.8%
Earnings per Share
0.57
0.78
36.8%
Shareholders Equity
4,739
5,520
16.5%
Book Value per Share
3.43
3.99
16.5%
Net Debt to Equity
1.11
1.04
-6.3%
OUR MANTRA AND OUR STIMULUS FOR FUTURE GROWTH
Ideas to business results,
To be innovative is to be able to live with the changes that time brings
To come to terms with altering market realities
To sustain calculated risks
To integrate the company and its people into a wholesomeness
To be competitive enough to bridge past, present and future with a common thread
Industry is providing a platform for both organic growth and growth from acquisitions. The competitive landscape has changed with the lowering of cost structures supported by technology development and larger economies of scale resulting in high cost producers to either exit or rationalize capacity.
PET polymers is a 15 million tons industry and growing by 7-8% or 1 million tons per annum. This increase is a result of organic growth in existing applications, new applications in alcoholic beverages, juices, energy drinks, pharmaceuticals and others and replacement of other packaging materials due to PET ’s superior properties.
IRP has announced next phase of growth to be accomplished in year 2008-9,
• A greenfield plant in Decatur, Alabama, USA with capacity of 432,000 tons per annum. The plant will be the largest PET polymers plant in USA. It is a strategic move to capture growing market and to co-locate next door to a PTA plant owned and operated by world’s largest PTA producer BP Chemicals Inc. The plant will set new costs parameters in the industry from scale and logistics savings. The plant will commence operations in Q1, 2009.
• Announced acquisition of two PET polymers plants from Eastman Chemicals Inc. which are located in Rotterdam, Netherlands and Workington, UK. The two plants have a combined capacity of 355,000 tons per annum. The acquisition will give access to an expanded portfolio of customers and products, regional consolidation and IRP will become the 2nd largest producer in the region. In addition, the plant in Rotterdam is co-located next door to a PTA plant. The acquisition will be completed end of March, 2008
The momentum of growth at IRP will continue in year 2008 and 2009.
HUMAN CAPITAL
Simultaneously increased importance is being given to people development and talent retention. This is systematically followed through various learning and development initiatives. Steps are also being taken to further strengthen employee management and ensure that key people are identified and actions are taken to retain them. The organization is undertaking an assessment of key profiles that it needs to retain and recruit to take care of the business growth, business complexities and its rising global aspirations. The focus on Management Development Programs and succession planning will increase significantly over the years to come. IRP is also taking several steps to establish its image in the minds of its prospective employees.
IRP attains ISO 14001 certification
QUALITY, HEALTH AND SAFETY
The focus on quality “Q” is being reinforced in people, products and processes.Quality is a dynamic and ongoing process and for the purpose employees are undergoing training and are being put into groups of Quality Circles to take-up activities across the functions of an organization. The main Qs of Quality comprise of, can we do it better, are we satisfying a customer need, is it innovative, does it provide superior value and are we delivering what we commit.
The focus of Corporate Social Responsibility is towards, Employees well being start from within and than move out. Focusing on both content and spirit. Neighbourhood development to make a meaningful contribution to the quality of life as well as the ecology of such regions. Environment powering a greener tomorrow.
PET polymers is recyclable. Recycling requires a collection system for PET bottles. Once collected, PET bottles are forwarded to recycling locations where they are run through grinders that reduce them to flake form. The flake then proceeds through a separation and cleaning process that removes all foreign particles such as paper, metal, and other plastic materials. Having been cleaned according to market specifications, the recovered PET is sold to manufacturers who convert it into a variety of useful products such as carpet fibre, strapping, moulding compounds, and non-food containers. IRP is looking at an investment opportunity in PET recycling with its customers.
SHAREHOLDERS COMMUNICATION
Good Corporate Governance Practices for communication and disclosures have been formalized. IRP communicates to shareholders, analysts, fund managers through:
• Announcement of Quarterly / Annual results
• Posting of information on the website of the company
• Notices to shareholders and Shareholders Meeting
• Quarterly analyst meetings
• Domestic and International Non-deal Roadshows
• One-on-One meeting with fund managers
ACKNOWLEDGEMENT
I would like to ake this opportunity to thank and compliment all the dedicated and committed employees across the globe for their efforts enabling IRP to rise up and rank amongst the top players in the industry. I would also like to recognize the loyalty of our many customers and shareholders for having kept their faith in us.
