German film and flexible packaging manufacturer Nordenia (Greven; www.nordenia.com) saw a 4.4% year-on-year fall in adjusted operating profit (EBITDA) to EUR 101m in 2011 on sales up almost 10% at EUR 881m. Sales volumes also grew, by 1.4% compared with 2010, reaching 224,670 t. Nordenia CEO and executive board chairman Ralph Landwehr said that in 2011 the company had been unable to repeat the above average growth rates and record profits seen in 2010 as the industry picked up from the recession, leading to slightly reduced earnings, which are still the second highest in group history.

Landwehr added that rising costs, increased competitive pressure and fluctuations remaining in the economy had contributed to the 2011 result remaining slightly below the level of the previous year. The increase in sales, which was disproportionate in comparison with the gains in sales volumes, was the result of increased raw material prices, which the group was only able to pass on to customers at a delay, and a change in the product mix towards higher quality products.

Looking forward, Landwehr said that depending on further developments in the oil states and in the financial sector, he expects business to continue stable in 2012 with increasing sales and earnings. He added that the annual result will be greatly dependent on further developments in raw materials pricing.

The company is planning to further expand its business in North America, Asia, Germany and eastern Europe and expects to invest an average EUR 35.6m annually in 2012 and 2013. This year, investment will focus on Nordenia's sites in Gronau / Germany, Jackson, Missouri / USA and Poznan / Poland. At the end of 2011 Nordenia also implemented a cost reduction and efficiency program for 2012. “Even though in 2011 we achieved our second-best company result, this measure was necessary in order to keep the company safely profitable,” Landwehr said.

During 2011 the company expanded, in particular in eastern Europe and the Asia/Pacific region, which both saw sales gains for over 20% year-on-year. Germany is Nordenia’s largest market with a share of over 32% of sales, which rose by 7.0% compared to 2010. With sales of EUR 398m, the hygiene market, where the company is the market leader in diaper components and diaper closure systems, continues to be the most important area for the packaging manufacturer, accounting for over 45% of group sales.

In financial 2011, Nordenia invested almost EUR 40m in new compounding capacities and a new cast film extrusion line and blown film extrusion line at its Gronau facility. The group also invested in a new extrusion plant at its Osterburken / Germany site, a ten-colour printing machine for its unit in Szada / Hungary, an additional blown film extrusion line at Halle / Germany, and also started raising capacity for its flexible stand-up "FlexZiBox" pouches in Steinfeld / Germany and Jackson – see Plasteurope.com of 10.08.2011.