Ceepackaging

Publicly quoted Plast-Box, with annual sales of around €14.2m in 2006 saw its stock price rise when it revealed it is in merger talks with an unnamed Polish partner firm.

The identity of the mystery specialist packaging company should be revealed in May according to Slupsk-based Plast-Box. The only detail released about the firm at this stage is that its containers are used to transport automotive and other heavy duty metal components.

By 15 May, the due diligence process should be complete and the partners will give details of exactly when and how they will come together, according to Plast-Box chief executive officer Waldemar Pawlak reported the Polish business daily Puls Biznesu.

Pawlak said: “We expect great synergies. Thanks to the merger we will be able to offer packaging to the automotive and home appliance producers. Today, mainly chemical and food companies buy our products.”

In May, management changes at the companies and a date for a general shareholders meeting will be announced and the transaction is due to be concluded by the end of 2008.

Meanwhile, growth in the huge Russian market is attracting Plast-Box’s attention. Its chief executive officer admitted he would like to establish a plant in the country once the firm has completed work on an 11 million Polish zloty (€3.05m) plant in the Ukraine planned to come on stream by mid-2009.

Pawlak said Russia is becoming an increasingly important market for his company. He told the Interfax news agency: “Over 35% of export sales of our Ukrainian subsidiary [Plast-Box Ukraina] go to Russia.” Pawlak added that work on construction of a Russian plant could begin after 2009.

In Poland, Plast-Box, which saw its sales in the first three quarters of 2007 rise by 13.8% year on year, plans to build a new plant for its national operations too.