Polyram USA
Since its establishment in 2012, Polyram’s US subsidiary has shown limited development in its operations. In the initial field of Bondyram, which was the primary goal for setting up the plant, the company reported that it is now a supplier of Tie layers adhesive materials for three major companies in the US food sector. Additionally, Polyram launched an innovative impact modifier for the American market, a result of a five-year development process.
In March 2023, Polyram announced the completion of a new production line installation for its engineering thermoplastic products. The company ordered another production line for the US plant, the third one dedicated to the Polytron sector, primarily serving the automotive industry. Alongside, the company reported winning two significant projects in this field. The new line is expected to be operational by the end of 2024.
These successes led the company to announce the exercise of the CALL option to acquire full ownership of its subsidiary, Polyram USA. Alongside, the company declared an additional dividend distribution of NIS 10 million. Polyram will purchase 49% of the company from the local partner, thus owning 100% of the company. The purchase cost of the partner’s share is expected to total approximately $4.9 million, based on a multiple of 5 times the average profit of the last three years. This is in accordance with the original agreement made with the local partner in 2012 at the time of the company’s establishment. Polyram estimates that the transaction will be completed in Q3 2024.
Polyram’s foreign revenues have significantly increased in recent years. In 2022, the company reported a growth of NIS 200 million, derived from growth in its key target markets: a 44% increase in sales in Europe and approximately 31% growth in the American market.
We begin 2024 with strong growth in profitability and activity across all sectors compared to the previous quarter and the same quarter last year, as Polyram continues to grow and operate fully in Israel and worldwide. Additionally, the company is significantly expanding its marketing activities in the growing defense sector.
The company's high production capacity allows us to take on additional projects globally, particularly in the US, where immediate availability is required by customers. All projects planned by the company for 2024 are progressing as scheduled, and we are working to further increase production in additional lines in Polytron and EP sectors. We see continued growth compared to the previous quarter and continued growth in exports compared to the same quarter last year.
Last week, we returned from the NPE2024 exhibition in Florida, one of the world's largest exhibitions in the plastics field. The exhibition allowed us direct and important meetings with existing and potential customers, distributors, and the opportunity to strengthen ties with the American market as part of the company's strategy to strengthen sales to end customers.
Exercising the option to purchase the partner's holdings in the US marketing company aligns with the company's strategy to expand in the American market.
*This article was written in collaboration with Plastic Time magazine.
