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VPK invests in new paper mill
VPK Packaging Group, the owner of Rigid Containers in the UK, is looking to build a new paper mill in central Europe to help meet future capacity for lightweight recycled corrugated case material.
The new €200m (£158m) plant, which VPK said would take two years to complete, will produce 300,000 tonnes of material each year. This will take VPK's total capacity to around 800,000 tonnes, a figure that matches its predicted needs in 2011.
VPK has taken an option on two possible locations - Zeitz in Germany and Wroclaw in Poland - and expects to create 250 new jobs.
The announcement comes two months before the opening of a new €16m facility in Salonta, Romania, to produce corrugated board packaging and tubes.
VPK, which has 26 plants across Europe including the Rigid Containers operation in North Yorkshire, generated €617m in sales in 2007.
But, profit margins for 2008 are "under pressure" from high energy costs. It expects to pay €7m more for its recovered paper and energy in the current financial year than it did in 2007-8.
VPK: 300,000 tonne capacity by 2011
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Comments
Ali Syme - 05 August 2008
Perhaps that's £158m better spent reducing energy requirements?
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