Sales revenue has surpassed the £200m mark at an East Yorkshire manufacturer of titanium dioxide products, with pre-tax profits soaring to more than £20m.
Cristal Pigment UK, which is part of the wider Cristal Group and has operations on five continents, has benefitted from strong production and a higher price of sales.
The company’s Stallingborough plant, their only location in the UK, is one of seven manufacturing sites that produces titanium dioxide
Titanium dioxide is a bright white powder that has the ability to pigment virtually any material and is used in a wide range of products such as ink, paper, ceramics, glass, leather, synthetics and paints.
For the 12 months of 2016, Cristal Pigment UK reported turnover of £239m. That is up over £40 million compared to the £197m generated in the previous 12 months.
At the same time, pre-tax profits had nearly quadrupled from £5.97m to £21.9m.
Throughout 2016, the majority of large manufacturers in the titanium dioxide industry implemented a series of price increases, said Cristal, which resulted in a strong performance from the company after prices had fallen to the "lowest point of the industry cycle" in 2015.
"Prices are predicted to increase further in 2017 and Cristal considers the peak in pricing has not yet been reached," a spokesperson said.
"In addition, demand for product remains high and inventory reductions now require that supply in the key markets is tightening and is reliant on good production and utilisation rates."
The company is also looking to save money and cut costs in other areas while still getting the most out of products. A company reorganization, for example, saw the average workforce size fall from 448 to 384.
Talking about the market in general, a spokesperson said: "The titanium dioxide market is currently going through a strong period of demand.
“However, the global titanium dioxide market traditionally moves in cycles, so the directors anticipate that the current market dynamics will change in the future.
"The directors want to ensure that the company is in the best and most cost effective position to be able to be competitive throughout all the stages of a cycle."