Online Reporter
Business Reporter
PROPLASTICS expects sustained growth across its business segments, supported by improving operating conditions, increased infrastructure investment and strategic initiatives aimed at strengthening its market position.
The plastics manufacturer said its products remain critical inputs across key sectors of the economy, including construction, agriculture, mining and infrastructure development, with demand expected to continue rising as investment activity expands.
It noted that the domestic market has undergone significant changes in recent years, with purchasing power becoming increasingly decentralised and customer demand becoming more segmented.
Proplastics said it has identified further opportunities to expand its export footprint into regional markets, although competitiveness remains constrained by the 30 percent foreign currency surrender requirement.
Despite the challenges, the group said it would continue pursuing selected export opportunities where viable.
“Strategic market positioning, coupled with investments in capacity expansion and improved production efficiencies, will enable Proplastics to meet the challenges of a changing and growing market with confidence.
“The market-driven momentum experienced in the latter part of the year is expected to carry through into the new year, providing further opportunities for growth in operations,” said Proplastics chairman Mr Gregory Sebborn in the company’s trading update for the quarter to March 2026.
However, the company warned that global geopolitical developments, particularly tensions in the Middle East, could disrupt raw material supply chains and place pressure on production costs.
The group said the conflict could result in raw material shortages, supply delays and price increases, although it has secured adequate supplies in the short term.
Proplastics added that the impact of the conflict on energy prices had already started filtering through the economy, increasing input costs and exerting pressure on margins.
“Management is closely monitoring the situation and working with suppliers to explore mitigation strategies to protect operations
“The resultant ripple effect on all input costs will increase pressure on the group’s margins, and management is already focused on strategies to ensure sustainability and continuity of operations,” he said.
Despite the risks, Proplastics remains optimistic about its growth prospects, saying it has adequate production capacity to respond to increasing demand and capitalise on emerging opportunities.
