Sipospack to build new flexible packaging plant in Hungary
EUROPEAN PLASTICS NEWS
Sipospack Kft.
Hungary's Sipospack produces film in both PE and BOPP.
Hungarian flexible packaging producer Sipospack Kft. is investing nearly 3 million euros ($3.2 million) in an expansion at a new site at Sóskút in central Hungary to raise its production capacity.
It is constructing a new 2,400-square-meter production hall and installing a range of new machinery there with a completion date scheduled for June this year.
As a result of the expansion, Sipospack, expects to increase its annual revenue by 3.33 million euros ($3.6 million) in the next three years, and raise the workforce headcount from 22 to 37, while boosting the firm's share of export sales, according to its project manager Viktor Horváth.
The new project is supported with a European Union grant of 867,000 euros ($940,000) set to cover the cost of switching from natural gas to renewable energy through the use of solar panels and biomass fuel.
The company, based nearby in Herceghalom, manufactures polyethylene and biaxally oriented polypropylene films, cling film, laminates, converted bags and sacks and other packaging for the Hungarian food industry.
In 2013, Sipospack recorded annual sales worth 8 million euros ($8.6 million), including export revenue of almost 207,000 euros ($224,000) , and it achieved an after tax profit of 643,340 euros ($698,000), according to the Hungarian news agency MTI.
Sipospack formed in 1996 and today, the firm is the biggest distributor of films produced at Tiszaujvaros, Hungary by the Dubai-based producer Taghleef Industries.
Last year, Taghleef Hungary announced a project to boost its capacity for 5-layer BOPP films at the national plant raising its output to 60,000 metric tons per year. The upgrade, completed last June, was designed to enable Taghleef to serve the label industry with IML as well as the food sector.