American Pacific International Inc

This year proved to be another difficult year for most developed economies. In contrast, some markets in the developing world, particularly in Asia and South America, have entered the new decade with strong momentum and confidence. American Pacific is well-placed to benefit from that momentum, with plans to expand its trading project portfolio to meet rapidly growing Asian demand – particularly in China – while participating in the development of the resources that are key to the realization of Mexico’s national ambitions.

The benefits of global trade are well understood. It seems likely that in certain key markets, governmental policies favoring our project will further strengthen the growth in global goods demand over the decade ahead.

During the year, there was continued divergence between international benchmark commodities prices, with the latter remaining well below their 2008 peak. In that context, it is important to note that, while the major commodity is central to American Pacific’s portfolio, the Group’s exposure to the commodities prices will increase considerably. In the very large Asian markets where American Pacific has a growing presence, the linkage between the commodities prices and international benchmark prices is already an established norm. Additionally, Asian Commodity Trading will make an increasingly significant contribution to Group revenues as development progresses over the coming years. Further details are set out in the Business environment and outlook section.

American Pacific has established a dedicated team to study investigation findings and to review the Group’s own operations, enhancing practices, where applicable, to reflect lessons learnt.

Mike Lee, Chairman of American Pacific International Inc