Packaging Market Weekly Wrap - VPK Packaging Profits Under Pressure

30 May 2008


VPK Packaging Group says profit margins are "under pressure" due to high energy prices.

The group says all divisions face "substantial" increases in energy and raw material costs.

It expects to pay €7m more for its recovered paper and energy in the current financial year than it did in 2007.

Despite this, in an interim statement the firm says it experienced first quarter growth in its packaging divisions.

GERRESHEIMER REPORTS INCREASE

Gerresheimer has reported first quarter sales increase of 18.2 percent to €239.1m, and a 20.4 percent increase in adjusted EBITDA to €43m.

In 2007, the company achieved sales of €957.7m and operating earnings of €181.6m.

CLONDALKIN GROUP TO INVEST IN POLAND

Clondalkin Group has announced a multi-million euro investment plan in Poland.

The expansion will double production capacity at Harlands Labels and a fifty percent increase at Boxes Prestige.

The investment will also improve the technical capability of both plants, with Boxes taking delivery of a brand new Man Roland 7 colour printing press, with twin lacquer stations, Clondalkin says.

Harlands will install an additional MPS press, with ten colours and options for both hot and cold-foil stamping.

Boxes Prestige's Polish production facility in Lublin was opened by Clondalkin in 2003, followed by Harlands Labels in 2005 to support existing customers moving to the region.

STORA ENSO TO SELL BERGHUIZER MILL

Stora Enso has agreed to sell its Berghuizer Mill at Wapenveld in the Netherlands, in two separate deals worth €21.5m, resulting in a €7m profit for the company.

The mill closed in October 2007 and the main machinery will be scrapped.

The land and buildings of the Berghuizer Mill, excluding the power plant, are being sold to W Goudkuil Beheer BV for industrial purposes and will be used among others by Bitufa Waterproofing BV for the production of durable waterproofing construction materials.

The sale is expected to be finalised by late 2008.

BASF EYES POLAND

German firm BASF says it wants to invest in Poland but will not participate in the privatisation process.

Senior Vice-President and advisor to the board, Dr Torsten Penkuhn, says the company wants to build six to eight production plants in the country by 2015.

Penkuhn has also ruled out the participation of BASF in the privatisation of one of Polish chemical companies.

"Our philosophy lies in focusing on our five production centres," he says.

"In other countries we can invest in particular undertakings."

By Elizabeth Clifford-Marsh


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