Start-up and investment costs as well as a production outage prompted a 12.4% fall in 2014 operating profit (EBITDA) for the plastics processing business of Belgian coffee specialist and packaging company Miko (Oud-Turnhout; www.mikocoffee.com). Its plastic processing division produces high quality packaging for the food and cosmetic industries and operates plants in Belgium and Poland.

The drop was attributed to various factors. Depreciations increased sharply as a result of the substantial investments made in Poland for new capacity, storage and office space, as well as for a number of production lines for a key contract. In addition, a major production line was closed for maintenance for several months. Weak economic figures in Europe were reflected in lower margins, too.

Considerable one-off start-up costs were also incurred in connection with the joint venture project in Indonesia with Innoware – see Plasteurope.com of 23.04.2014. Miko said substantial value can be added to the partnership from the knowhow and quality standards it has in Europe, bringing mutual benefit to both parties. A 31,000 m² area of land has recently been acquired for the development of a greenfield site – a location was not disclosed.

The Miko group posted an 8.7% rise in operating profit compared with 2013, at EUR 20.7m. Group turnover was EUR 160m of which the plastics segment accounted for 47.3%, a rise of 5.4% on 2013, mainly in the thermoform division, which produces containers for ready meals. Investments in the plastics segment amounted to EUR 12.2m in 2014.