BPI raw material costs rise

PACKAGING maker British Polythene Industries (BPI) yesterday warned that its suppliers would raise prices again in the new year as raw material costs continue to soar.

But the Greenock-based firm said it expected its full-year results to be in line with market predictions.

Last month, shares in BPI fell nearly 8 per cent after the company said profits would be at the lower end of predictions due to rising raw material costs.

Yet the company still expects to beat last year's pre-tax profit of 11.8 million, which came on the back of 425m in sales.

In yesterday's short pre-close update, BPI said: "We have agreed new banking facilities of 70m to replace our 57.5m revolving credit facilities - which expire in November 2011 - and certain short term facilities."