Polyethylene terephthalate (PET) polymer prices normalised in this quarter, particularly in the United States because the market stabilised after Hurricane Katrina.

Global demand for PET polymers is expected to exceed 12 million tonnes this year, which is about 9 per cent more than in 2005. Furthermore, aluminium prices have increased by more than 70 per cent in the past years resulting in higher costs for making cans, which compete directly with PET in the US.

Petform, IRP's packaging

subsidiary, started commercial production using newly installed machinery for pre-forms and closures in the first quarter and in April it finished installing machinery to produce bottles.

IRP Group has considerable expansion plans under way in its core PET-polymer business.

A new PET plant in Lithuania

is expected to be completed in

the middle of the year and will add around an additional 200,000 tonnes in annual capacity. It will be the largest PET factory in Europe. Europe is a net importer of PET polymers so the group will tap into PET polymer demand, which is growing at 7-8 per cent a year in the EU.

IRP Group also has other expansions underway. It is expanding its PET polymer capacity in Thailand by 36,000 tonnes per annum and in the US by 84,000 tonnes per annum. Upon completion of plants in Lithuania, Thailand and the US the company's total PET Polymers capacity will be 525,000 tonnes per annum, equivalent to around 4 per cent of global demand. Effective capacity available in 2006 will be around 280,000 tonnes compared to 206,000 tonnes in 2005.

IRP has the largest market share of PET polymers in Thailand and will be the seventh-largest manufacturer in the world once it completes its expansions in Lithuania, the US, and Thailand.