Section 172 (1) statement
Year ended 31 March 2021
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing this, section 172 requires a director to have regard, amongst other matters, to the:
(a) likely consequences of any decisions in the long-term;
(b) interests of the company’s employees;
(c) need to foster the company’s business relationships with suppliers, customers and others;
(d) impact of the company’s operations on the community and environment;
(e) desirability of the company maintaining a reputation for high standards of business conduct;
(f) need to act fairly between members of the Company.
We set out below some examples of how the directors have had regard to the matters set out in section 172(1)(a) – (f) when discharging their section 172 duties in their decision making.
Product development is central to the group’s strategy and an integrated approach is taken in the group. Key areas of focus include the transition to electric vehicles, achievement of CO2 reduction, the use of recycled and natural fibre materials, flame retardant and high-performance grades. During the year, the decision was taken to strengthen the UK company’s R&D capabilities, including recruiting new roles and investment in laboratory equipment. This will enhance the already strong R&D team in the UK. In Turkey, investment is being made in recycled processing capacity and integrating this significant capability with the rest of the group. Recycled product has become an essential part of supporting our customers’ strong moves towards environmental sustainability. In India, the in-house Moldflow and Computer Aided Engineering capabilities became well established, serving the group as a whole. Together with the use of an online platform to share characterisation data, good feedback has been received from customers and it has proved effective as a marketing tool for demonstrating the group’s products and winning new customers.
New plant in Poland
Due to the increasing importance of the NE Europe region and the demand for regional production, the decision was taken to establish a new production facility in Poland. A new 100% owned subsidiary company was formed in March 2021. A brand new production line is being constructed in a modern, efficient industrial building. Once operational, the plant shall act as a subcontracting manufacturer for Sumika UK and Sumika France. Significant transport cost and CO2 savings will be made by localising production of existing business in NE Europe. The Poland plant complements the group’s existing locations in UK, South of France and Turkey, securing the group’s business with existing customers and providing opportunity to win new customers.
Sumika Polymer Compounds (Europe) Ltd
Approved by the board on 13 December 2021