Consumables
Bong Ljungdahl AB: New Tyvek Agreement to Boost ProPac Sales
Tuesday 01. September 2009 - Bong (STO:BONG) has entered into an exclusive agreement with DuPont for the manufacturing, marketing and sales of Tyvek branded envelopes and pockets and postal packaging solutions in Western Europe. The Tyvek envelopes and postal packaging products is a well-established business with an annual turnover of more than Euro 10 million.
The sales of Tyvek products within this agreement will grow quickly from now on and is estimated to increase Bongs sales by more than SEK 100 million on an annual basis from the second half of 2010.
Tyvek is a spunbonded polyethylene material developed and manufactured by DuPont. It is light, thin and flexible but also extremely tough and durable. Tyvek is, for example, tear and water resistant and therefore highly suitable for protective envelopes and postal packaging solutions. Furthermore, it is readily recycled.
“Tyvek is a well-known and successful brand in the envelope industry. Customers throughout Europe use Tyvek envelopes and packaging solutions on a daily basis, especially when the mailing is of extra importance” says Bongs President and CEO Anders Davidsson. “Tyvek fits exceptionally well into our ProPac strategy and we are excited about the opportunity to develop Tyvek in the years to come. I believe the Tyvek material can be used for a number of new, interesting applications, e.g., for use by e-business and mail order companies.”
Bong will buy the Tyvek material from DuPonts Luxembourg plant and convert it into finished products in its production sites around Europe, predominantly in Wuppertal, Germany. Bong is also planning to sub-contract part of the manufacturing and distribution to third parties in order to secure high availability and easy access to the products for the end-users. Bong will market and sell Tyvek envelopes and postal packaging solutions as a part of its ProPac range.
The new Tyvek agreement is expected to contribute positively to Bongs result as from 2010.