SOFIA (Bulgaria), July 21 (SeeNews) - Bulgarian flexible packaging producer Plastchim-T said on Monday it plans to raise its sales and profit 2.5 times by the end of 2010 on the back of a 13 million euro ($20.6 million) investment in a new production line.
Plastchim-T, which runs a factory for biaxially oriented polypropylene (BOPP) films with an installed capacity of 7,000 tonnes yearly, has ordered new equipment with 18,000 tonnes annual capacity from Germany's Bruckner, the company CEO, Aydin Faik, told SeeNews.
The new production line is expected to boost company sales 2.5 times to 140 million levs ($113.2 million/71.4 million euro) and increase its profit accordingly to some 5.0 million levs by end-2010, he added.
"The funding is secured through bank loans," said Faik. Plastchim-T is not planning further significant investments in the short term to avoid overheating.
Trial production is scheduled to start in the second half of 2009 and the new facility should start working at full throttle by the middle of 2010, said Faik.
The increased output will help the company increase its sales in the European Union, especially in Germany and Poland.
Plastchim-T will cover nearly 70% of Bulgaria’s BOPP demand with just a fourth of its annual output by 2010, or around 6,000 tonnes, said Faik.
Bulgarian financial and industrial group Eurohold Bulgaria acquired last year a 49.8% stake in Plastchim-T for an undisclosed sum, seeking to improve its performance in the manufacturing sector. Plastchim-T, created from the merger of former Famtex-T and Plastchim, has become the third manufacturing company in Eurohold’s portfolio after packaging plant Formoplast and plastic medical equipment producer Etropal.
Eurohold will help Plastchim-T secure the financing for its investment programme, Faik added.
Currently Plastchim-T is not considering listing on the Sofia bourse.
(1 euro = 1.95583 Bulgarian levs)
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