The Kuwait Styrene Company (TKSC), the first and only producer of styrene monomer in Kuwait, said it has registered a 11 per cent growth in its net profit for 2016 which soared to $107 million from $97 million the previous year.

Established in 2004, TKSC is an international joint venture between the Kuwait Aromatics Company and the Dow Chemical Company.

TKSC is part of Greater Equate, operated by Equate Petrochemical Company, which also includes Kuwait Paraxylene Production Company (KPPC) and The Kuwait Olefins Company (TKOC). The firms operate under one integrated umbrella in Kuwait.

On the results, CEO Adel Al Munifi, said: "Despite global market fluctuations and a scheduled plant turnaround, our double-digit growth rate in 2016 proves that TKSC has a flexible structure that enables it to weather through global market challenges and deliver a high quality product that continues to see increased demand from our solid customer base in the Europe and Asia."

The global styrene monomer market saw a slow recovery in prices at the end of 2016, which is expected to continue during 2017.

Prices have already been on an uptrend in January reaching $1300/MT, which was $300/MT higher than January 2016.

"Financially, the company refinanced its loans in a record timeframe and successfully undertook a $280 million loan from a local bank to reinforce activities that improve the company's competitiveness at an international level," noted Al Munifi.

According to him, the company’s increase in profit was driven by several factors such as higher market prices in comparison to feedstock costs due to healthier oil prices, austerity measure leading to lower fixed cost, optimised logistics cost and Six Sigma programs.

"With a strong financial position and an operational strategy to increase our competitiveness, TKSC is set to continue its growth, supported by recovery in prices and cost-optimization programs," he added.-TradeArabia News Service