CHEMICALS group BASF has seen a huge rise in pre-tax profits, despite difficult trading across its operations.
The group, which employs about 250 staff at its plastics and fibres business at Seal Sands, on Teesside, recorded pre-tax profits of £4.3bn in the year to December 31, compared with £1.81bn in the previous year.
However, the plastics and fibres operation, which includes the Teesside site, saw decreasing demand, coupled with low selling prices, hit its bottom line. Income at the division fell by 77 per cent to £111m.
Sales at the operation fell to £527m, from £540m in 2000.
Seal Sands manufactures chemicals for use in acrylic and nylon fibres used in the manufacture of carpets, clothing and plastic parts for the automotive sector.
A spokesman for the division said: "Decreasing demand, coupled with low selling prices reduced sales and earnings at the division.
"Fibres, fibre intermediates and styrenics were particularly hard hit, but the performance of our polyurethanes business was better."
Commenting on the results, BASF chairman Jurgen Strube said: "The past year has been overshadowed by the tragic events of September 11 in the US, events which have changed the world politically, socially and economically.
"2001 was an extremely difficult year for the global economy, for the chemical industry and BASF in particular."
But he said: "While we have not yet seen signs of a recovery in our order book, I remain confident that we will be among the first companies to benefit from an economic recovery.
"BASF has a strong market position and the right portfolio of products that will enable us to meet future challenges."
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