SCHMALBACH-LUBECA
PET leads business growth for packaging group / Continued substitution of glass containers / Successful restructuring in the US
Packaging group Schmalbach-Lubeca AG (D-40832 Ratingen) increased operating profits for the fourth successive year in 1999, from EUR 314m to EUR 341m, thanks to further growth in its PET business. The return on sales over the 12-month period improved from 14.9% to 16.7%, generating an increase in pre-tax profits from EUR 139m to EUR 141m.
With sales of EUR 914m, the PET Containers product group accounted for 43% of sales. The Beverage Can group contributed 37% of the total EUR 2,049m turnover and White Cap Closures 20%. Sales in Europe provided 65% of turnover, with the Americas contributing 35%. Despite a significant growth in turnover, the company says Asia continued to play only a minor role.
Although PET turnover was slightly below the 1998 level of EUR 904m, this decline was due to lower polymer prices as sales volumes actually increased. The late summer weather provided a significant boost to sales in Europe. Business in Germany benefited from renewal of the returnables pool for carbonated soft drinks and the decision of the association of mineral water suppliers to use returnable PET bottles. Market leadership in the UK was consolidated by concluding two longterm supply contracts for soft drinks containers.
There was growing demand in the US for preforms destined for the water market and sales volumes for heat-resistant containers for fruit juices and isotonic drinks improved. Trade in carbonated soft drinks, however, fell below expectations. PET business operations increased in all countries in Latin America and significant growth was achieved, also, in India.
Continuing restructuring in the US market saw the setting up of an ultra-modern plant for PET carbonated soft drinks in Blythewood, South Carolina, and commissioning of a facility for high quality applications, such as heat-resistant food containers, in Fairfield, California. A new plant on the East Coast, in Allentown, Pennsylvania, replaced facilities in New Jersey and Delaware.
A cost-cutting programme in Europe saw the closure of a plant in Beaune, France, with production being re-allocated to factories in Dunkirk, France, and Brecht, Belgium. A new plant was opened in Morocco as part of the modernisation of injection moulding operations as, overall, the group invested EUR 232m in its PET product sector. This included the start-up of new facilities in Peru, Colombia, Venezuela and Turkey.
Capital expenditure in the closures business totalled EUR 48m, primarily concentrated on facilities for plastic closures in the US, where there is growing demand. A further EUR 59m was invested in the beverage can sector, much of it on the setting up of two ultra-modern lines at the plant in Hassloch that was badly damaged by fire in 1998. A new metal closures unit in Poland is expected to be the most cost-effective in the European production network.
Schmalbach-Lubeca says the continuing replacement of glass because of its weight, breakage and environmental advantages, as well as new product innovations, are expected to lead to continuing high growth rates for PET containers. Group turnover and earnings are both anticipated to improve further.
• Plasteurope.com Service:Further details on financial year 1999 of Schmalbach-Lubeca (English): PIE-No. 44483.
With sales of EUR 914m, the PET Containers product group accounted for 43% of sales. The Beverage Can group contributed 37% of the total EUR 2,049m turnover and White Cap Closures 20%. Sales in Europe provided 65% of turnover, with the Americas contributing 35%. Despite a significant growth in turnover, the company says Asia continued to play only a minor role.
Although PET turnover was slightly below the 1998 level of EUR 904m, this decline was due to lower polymer prices as sales volumes actually increased. The late summer weather provided a significant boost to sales in Europe. Business in Germany benefited from renewal of the returnables pool for carbonated soft drinks and the decision of the association of mineral water suppliers to use returnable PET bottles. Market leadership in the UK was consolidated by concluding two longterm supply contracts for soft drinks containers.
There was growing demand in the US for preforms destined for the water market and sales volumes for heat-resistant containers for fruit juices and isotonic drinks improved. Trade in carbonated soft drinks, however, fell below expectations. PET business operations increased in all countries in Latin America and significant growth was achieved, also, in India.
Continuing restructuring in the US market saw the setting up of an ultra-modern plant for PET carbonated soft drinks in Blythewood, South Carolina, and commissioning of a facility for high quality applications, such as heat-resistant food containers, in Fairfield, California. A new plant on the East Coast, in Allentown, Pennsylvania, replaced facilities in New Jersey and Delaware.
A cost-cutting programme in Europe saw the closure of a plant in Beaune, France, with production being re-allocated to factories in Dunkirk, France, and Brecht, Belgium. A new plant was opened in Morocco as part of the modernisation of injection moulding operations as, overall, the group invested EUR 232m in its PET product sector. This included the start-up of new facilities in Peru, Colombia, Venezuela and Turkey.
Capital expenditure in the closures business totalled EUR 48m, primarily concentrated on facilities for plastic closures in the US, where there is growing demand. A further EUR 59m was invested in the beverage can sector, much of it on the setting up of two ultra-modern lines at the plant in Hassloch that was badly damaged by fire in 1998. A new metal closures unit in Poland is expected to be the most cost-effective in the European production network.
Schmalbach-Lubeca says the continuing replacement of glass because of its weight, breakage and environmental advantages, as well as new product innovations, are expected to lead to continuing high growth rates for PET containers. Group turnover and earnings are both anticipated to improve further.
• Plasteurope.com Service:Further details on financial year 1999 of Schmalbach-Lubeca (English): PIE-No. 44483.
31.03.2000 Plasteurope.com [17475]
Published on 31.03.2000