One of the problems British Polythene Industries has experienced in recent years is that the price it pays for polymer, its basic raw material, to the big plastics producers does not always seem to reflect what is happening in the market.
Whenever the price falls it mysteriously seems to rise again, a coincidence alluded to again in the last trading statement last month.
Once RPC has control of BPI, the former’s take from those big producers will rise by a third to 800,000 tonnes a year. It is pretty certain that this improved buying power will result in better prices for the raw material. That pricing power is one of the reasons behind RPC’s purchase of BPI for in excess of £260 million.
That price