The company's balance sheet is sound and we are well placed for funding capital requirements in the foreseeable future, including those for Tencel and the Far East expansion.
-In "Chief Executives Review: Strategy" (Sipko Huismans)
We brought our new Tencel fibre into full production and turned it into a commercial success. In November we announced a second US plant, more than doubling capacity, and we hope to make a start on a European plant in the present financial year.
-In Finance Directors Review (Michael Pragnell)
...expenditure plans for the coming year remain at the 1993-94 level*: in addition the next phase of US investment in Tencel is already underway.
*£143m representing 1.7 times depreciation.
-In "Fibres and Chemicals"
The common theme of these businesses is the transformation of cellulose and other material into fibre or film and the use of R&D and market development to create product differentiation. Tencel, the world's first solvent spun fibre, with exceptional versatility and environmental compatibility, is an outstanding example.
Tencel made a notable contribution to profit in 1993/94 despite an increased level of investment in research and market development. Manufacturing continuity and yields improved throughout the year. Dependence on the Japanese market lessened as both US and European demand increased, and by the end of the year sales were equally balanced between all three geographic regions. Construction of a second Tencel plant in the US, which will more than double capacity, commenced in January 94. It is expected to be on stream by mid-95.
More to come...
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