Strong market growth led to accelerated demand and short supplies for several of Perstorp’s products during the period. Coupled with the political unrest in North Africa and the Middle East, this caused significant raw material price hikes.

The Perstorp Group’s sales rose by 9% to SEK 3,947 m (3,607), despite the Swedish krona strengthening considerably compared with the corresponding period last year, giving a negative currency effect of 12%. Operating earnings before depreciation and amortization was SEK 411 m (435) adjusted for items affecting comparability. The currency effect was SEK -160 m, partly due to consolidation effects and partly because the USD weakened over the quarter which gave negative revaluation effects.

The purchased Penta business of the U.S. specialty chemicals company Ashland Inc. is now being integrated into the Perstorp Group, resulting in increased Penta volumes and synergy effects. At the start of the year Perstorp decided to extend its capacity for HDI-derivatives and 2-EHA in Europe and Asia, by setting up production at the Group’s plant in Singapore. Production is expected to start in 2013.

After the end of the quarter a decision was taken to proceed with the investment in a new production plant for Valeraldehyde and its derivatives 2-PH and DPHP. The plant is scheduled to be on stream in 2014. An expansion of the Group’s Neo production, through a new plant in China, was also decided after the end of the quarter.

The Perstorp Interim report 1 January - 31 March 2011 can be downloaded >> and ordered >> in printed copies.