London – UK polymer group Syntheomer plc is reducing its capital expenditure and withdrawing its full-year financial guidance due to uncertainties caused by Covid-19 pandemic.
The London group expects to cut 2020 capex to £50 million (€57 million) from the £73.5 million originally anticipated, and has frozen senior management salaries at 2019 level, Synthomer said in a 29 April trading update.
Synthomer also withdrew its financial outlook for the year 2020 saying it would update the market “when there is better visibility.”
The group said it continued to operate 37 of its 38 global manufacturing sites, with speciality chemicals designated as key industrial assets in the geographies in which it operates.
While raw material supply and the distribution of finished goods have experienced “no significant issues”, Synthomer said second quarter sales into industrial markets such as the automotive and oil & gas are currently being impacted.
On a positive note, demand for the group’s nitrile butadiene latex continues to be strong particularly as a result of the Covid-19 pandemic.