• In parallel with this, the conversion of corrugated manufacturing in Csepel to independent operation is underway.
• The construction of the corrugated product factory in Ukraine as a Greenfield investment was started; however, due to the deepening of the Ukrainian crisis we have temporarily suspended the realisation of the project.
• The relocation of the IT systems to Austria has started.

Despite the above negative factors, the results of our company group have significantly surpassed the plans, though a major part of this is attributable to the sale of assets. The result achieved continues to provide a stable basis for the realisation of our started projects and strategic objectives.

In 2008, Dunapack Ltd.’s investment activities were intensive. We implemented environmental and production rationalisation projects worth HUF 3,150 million. The construction of the Csepel sewage treatment plant was completed (HUF 243 million). The mechanical refurbishing of the paper making machine’s drying section in Dunaújváros was completed (HUF 308 million) and the reconstruction of sewage treatment was started as well (HUF 357 million). A new processing machine was commissioned at the Csepel corrugated product plant at a cost of HUF 860 million. Due to the expected termination of paper manufacturing, we have started to set up the conditions for independent operation at the plant (HUF 87 million). The board making machine in Dunaújváros was expanded for HUF 493 million. During the work, the interruption in manufacturing was compensated by transporting boards internally. In Nyíregyháza, the complete replacement of the dry end of the board making machine was completed. The pro rata cost of this for 2008 was HUF 282 million.
As opposed to the planned HUF 1,3 billion, our actual spending on maintenance-type investments was HUF 1 billion.

Our investment activities were also significant during the year. Our most substantial investment is related to one of the priority tasks of 2008, the Ukrainian project. To finance this we have implemented a capital increase of EUR 4 million. We also increased the capital of our Bulgarian subsidiary by EUR 1 million to provide the coverage for the modernisation of the board making machine. In Romania, the 2008 costs of the replacement of the dry end of the board making machine required an investment of EUR 1 million. We increased the capital of Valoviti by over EUR 2 million to enable the acquisition of a processing machine and to help the company overcome its financing difficulties.
Within the framework of the PM7 investment we brought in assets worth close to EUR 4 million to Hamburger Hungária Ltd., but we sold the share of the company thus acquired to the Paper Division of Prinzhorn Group during the year.