After a number of price changes to its products, a Newport-based chemicals manufacturer has increased turnover to almost £120 million. In the year to 31 December 2018, turnover at Solutia UK rose to £119.6 million, up from £100.9 million in 2017.
Moreover, profit before tax also rose to £6.72 million from £1.48 million in the year prior. Of its total turnover, £11 million relates to the provision of services to gus operators, down from £12 million in 2017.
A report accompanying the results read: “The Solutia products manufactured at the Newport site represent 81 per cent of turnover.
“In Newport, Solutia also provides labour, utilities and support services for Valtris UK and ltalmatch UK, and further provides utilities and support services for Advanced Elastomer Systems Limited (AES), part of Exxon Mobil.
The company’s key measurement of effectiveness of its operations is gross profit. The overall gross margin increased from 8.5 per cent in 2017 to 11.5 per cent in 2018.
“An increase in production of Therminol covering fixed costs, and a change in Saﬂex transfer pricing to a reduced risk margin basis, contributed greatly to this increase.
“The trading outlook for the next 12 months is positive. The company has strong and viable product lines in place.”
Solutia UK is ultimately controlled by Eastman Chemical Company which completed a $4.8 billion (£2.8 billion) acquisition of Solutia Inc in July 2012.