For the first four months of 1995 the Viag subsidiary, Schmalbach-Lubeca AG (PO Box 3307, D-38023 Braunschweig), a leading European packaging company, reported an increase in turnover of 1.5%. This was equivalent to a real increase in turnover of 5%, after correction for the effect of US dollar and European currency exchange rate losses. All business areas showed growth, excepting metal packaging and whitecap glass closures. Nevertheless it will be difficult for Schmalbach-Lubeca in 1995 to repeat the sort of results that they achieved during the previous year, according to the Chairman of the Board, Erich Kanofsky speaking at a press conference.

Schmalbach-Lubeca reported an increase in turnover of 9% in 1994 to reach DM 3.9bn. Operative profit improved to DM 183m (132m), with after tax profit of DM 65m (10m). The PET packaging business area almost doubled its turnover from DM 264m to 512m. The majority of this growth was due to the new 1 litre Coca-Cola PET re-usable bottle. Even the markets for single use packaging, particularly in Spain, were characterised by a very good year. In order to develop the Polish market rapidly, previously supplied by exports, the new Radomsko plant will manufacture PET preforms. Additional manufacturing plants will be installed there during 1995. In the medium term Schmalbach-Lubeca is setting great hopes on the introduction of PET re-usable bottles for lemonade from the German mineral water industry. The rapidly increasing demand for PET has been underscored by the shortage of PET granulate during the second half of 1994. Due to uncertainty about future increases in raw material capacity, the growth potential for PET packaging has to be regarded critically.

Growth in turnover from DM 345m to 379m for the plastic packaging business area was entirely due to acquisitions. Dearer raw materials, increasing strength of the buyers and pressure on prices all affected business negatively in 1994 according to Kanofsky. The Belgian subsidiary, Cobelplast NV (Antwerpse Steenweg 8/10, B-9100 Lokeren), leading European producer of coextruded multilayer foils, introduced a novel plastic capping foil as an environmentally acceptable replacement for aluminium closures. This allows the manufacture of mono-plastic packaging. Further market segments in the non-food area could be reached with this new type of multi-layered film. Bebo-Plastik GmbH (PO Box 1147, D-27421 Bremervörde) has built up its market position in the margarine, ice-creams and delicatessen businesses. This includes the successful introduction of the sealable and tear away cup and closure systems "Bebo-Peel". Due to the increasing importance of the packaged food industry in Eastern Europe, a new plant will be start production in Posen, Poland, during the second half of 1995.

READER SERVICE: Annual report 1994 of Schmlabach-Lubeca group and AG: PIE-No. 37778.