Austria’s Hirsch Servo (Glanegg; www.hirsch-gruppe.com) said that it is expanding its production network with the acquisition of Czech packaging and recycling specialist Novopol (Velky Trebesov; www.novopol.cz). Terms of the deal were not released.

“With this acquisition, we are closing the gap in the middle of our production network and strengthening our position as the leading EPS processor in Europe," CEO Harald Kogler said. “Novopol enriches our group of companies, not only with one of the largest production capacities for EPS packaging and pulp moulding in the Czech Republic, but also with the first mechanical EPS recycling plant in Europe.”

The deal gives Hirsch Servo two plants in the Czech Republic, namely in Velky Trebesov and Ceska Skalice. The production network until now comprised 26 locations in Austria, Germany, France, Hungary, Poland, Romania, Slovakia and the Ukraine. The workforce is expected to grow by 60 employees, to 1,600 employees.

In addition, Hirsch Servo said it is investing EUR 12m in its existing plants in the current financial year, including 2.5m to expand its headquarters in Glanegg / Austria. “Specifically, we are developing and installing a new pulp moulding production facility in Glanegg with our own mechanical engineering department and building an additional warehouse in order to be prepared for the growing demand for protective transport packaging made from 100% recycled cardboard,” Kogler added.