Packaging

Investment in a new Papermill

Thursday 31. July 2008 - VPK Packaging Group plans an investment in a new Papermill.

VPK Packaging Group plans to invest 200 mio EUR in a new paper mill to produce 300.000 tons per year of light weight recycled corrugated case material (80-160 g/m²). There has been taken an option for this new plant on a location in Zeitz, Germany and in Wroclaw, Poland. The construction will take 2 years and would be operational in 2011. The mill will create 150 new direct jobs and beside it 100 indirect jobs in the neighbourhood of the plant.

This investment will bring the paper production capacity of VPK Packaging Group to 800.000 Tons. The paper consumption in the groups’ packaging plants is expected to reach the same level in 2011, so the paper production will be almost completely integrated within the group. With this investment the group will have special attention to the reduction of the emissions and decrease of the specific energy consumption. The paper industry suffers heavily from the high energy cost.

VPK Packaging Group realised 617 mio EUR sales in 2007 which was an increase of 17% compared to previous year.

At the beginning of 2008 VPK Packaging divested its Dutch trading activity (Twinpack BV with a yearly sales of 47 mio EUR) in order to concentrate on the key activities of the group. Recently VPK Packaging acquired a display manufacturing plant (Saucas Europe P.O.S. NV) and a solid board converter (Smart Packaging Solutions) , both located in Belgium.

The start-up of the new production site in Romania is foreseen for September 2008. This represents an investment of 16 Mio €. The site in Salonta will produce corrugated board packaging as well as tubes.

VPK Packaging Group is a vertically integrated packaging group with its origin in Belgium, running 26 plants spread across 12 European countries, and has 3,000 employees.