Polythene prices set to rise

British Polythene Industries (BPI) will be forced to pass on raw material increases of 30% to 50% to customers due to supply problems in the polymer industry.

Chairman and chief executive Cameron McLatchie said that some grades had increased by 210 to 220 per tonne and that although these would be passed on to customers in the short term, they would be reversed.

"Its basically due to a supply problem from polyethylene plants in Europe. The nearer customers are to the basic film product the more they will have to absorb," said McLatchie.

He said that the first four months of 2002 had been in line with BPIs expectations, but volumes could be improved on.

Last month BPI announced the closure of plants in Dublin and Rochdale with the loss of 61 jobs.