The group expects insurance to cover most of the charge that arose from feedstock supply problems in Italy

The group expects insurance to cover most of the charge that arose from feedstock supply problems in Italy

EVC hopes to recover most of the E23m cost that arose from feedstock supply problems in Italy last year from its insurance, directors said this week. The PVC market leader was forced to buy feedstock on the spot market at up to twice the normal cost and also suffered from lost production. But it expected insurance to cover most of the impact.

The problem exacerbated what chief executive Callum McLean called a challenging year for the company. It has posted results he acknowledged were “ pretty poor”. Hit by volatile prices, costly feedstocks, exchange rates and intense downstream competition in compounds and film, EVC turned in a net loss for the year of E25.6m compared with 2002’s E40.1m deficit. The operating loss after exceptionals on sales of E1.03bn was E3.6m compared with a figure of E13.7m for 2002.

McLean today said the company was continuing to reduce its costs and is now enjoying improved market conditions with good stocks available to meet rising demand.