He said the worst of the business cycle appeared to be over.

Last year, the industry witnessed a state of oversupply, where available capacity was more than the demand. The situation was compounded by a surge in input costs caused by crude oil prices reaching almost US$75 (Bt2,681) per barrel and the steep decline in the US dollar against the baht.

This year, the demand situation is expected to improve gradually resulting in a better demand-supply balance by year-end.

However, Gupta also said the company, with longer industry experience and strategic positioning, had emerged as a major player in the PET film industry, both in Thailand and around the world by increasing its product range, especially in value-added products.

On the cost efficiency front, Polyplex switched to natural gas from fuel oil in January, which will reduce costs and be more environment-friendly.

Meanwhile, the company plans to complete an extrusion coating plant in Thailand in the final quarter of the year, as well as set up an additional PET thin-film line in its subsidiary in Turkey with completion expected in the second quarter of 2008.

This year, Polyplex's key strategies include further investments in value-added products, such as extrusion coating, and in-house development to expand the product range for better protection against cyclical movements in margins.

At the same time, the company plans to focus on building strategic relationships with key customers and attaining higher market penetration in certain major markets.

From revenue of Bt1.03 billion in the April-June 2006 period, income increased to Bt1.14 billion in the firm's second quarter and Bt1.23 billion in the third.

Net profits of both Polyplex (Thailand) and its subsidiaries increased from Bt30.94 million in the first quarter to Bt75.39 million in the second and Bt114.60 million in the third. Although revenue did not increase substantially, total profit did, due to an increase in the gross profit margin resulting from declining raw material prices.

"We always reiterate to our valued investors about the benefits of the company's strategic investment plans, and the same can be evaluated with the operating results of the company in the recent past and also through comparison with its competitors" said Gupta.