TENCEL: £400m invested so far, 14% ROS estimated (1997)

Tencel, the new fibre on which Courtaulds has lavished £400m so far, including £60m last year, has at last broken into profit. The group is coy about how profitable it is, but David Ingles at James Capel reckons it could have chipped in £14m on just under £100m sales last year. That augurs well for the third production line due on stream in Grimsby later this year and the next Tencel plant, due to be built in Korea, Indonesia or Singapore.

Viscose remains the dog of the portfolio, producing a small loss last year. It will not show real improvement until the industry cuts more capacity.

MAGNUS GRIMOND 

 

the indpendent, THURSDAY 22 MAY 1997