November 23 (SeeNews) - Switzerland-headquartered flexible packaging solutions producer Aluflexpack said on Monday it plans to invest 65 million euro ($77 million) over the next two years in the expansion of two of its four production plants in Croatia.
The investment will go towards adding 13,000 square metres of production and warehouse space to Aluflexpack's plants in Omis and Drnis, southern Croatia, and supply of production equipment, the company said in a statement.
With the expansion, Aluflexpack will add up to 30,000 metric tonnes of foil conversion capacity to its platform - vertically integrated covering pre-treatment and coating.
"This expansion, together with already planned investments, not only enables attractive growth beyond 2022, it also assures that Aluflexpack remains in a leading position in its target end markets," the company said.
Construction works on the planned expansion will begin in the first half of 2021, with production expected to commence towards the end of 2022.
The incremental revenues linked with the expansion are anticipated in the amount of over 100 million euro in the medium term, with available capacity to grow further, the company noted.
"We will finance this investment with funds from the IPO along with existing credit lines and our operating cash flows," AluflexpackCFO, Johannes Steurer, said.
Aluflexpack manufactures products mainly for end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and dairy industry. Apart from the four plants in Croatia, the company has production facilities in Switzerland, France, Turkey and Poland.
($=0.841837 euro)