Year 2004

The environment is a matter of such importance to the Company that it is covered in separate report, published on the Dunapack website.

Research and development activity is reflected in product – and, to a lesser extent – technological developments. In 2004, expenditure on R&D reached HUF 53 million.

Product Categories in 2004

1. Corrugated Board Paper

The European paper market has been following similar trends for years now. In the 15 countries of the former EU, which account for 90% of consumption and production, consumption has been rising at the annual rate of 1-2% and production capacity at 3-4%, resulting in fierce competition and depressed prices. The relatively small Central-Eastern European region cannot make any impact on this development even though its paper and packaging material consumption has been expanding at 5-6% a year. The 2004 plans were made in anticipation that the trend would change and that prices would rise about 10% over the 2003 level. In fact, corrugated board paper prices stagnated.

Value of production, Dunapack Ltd. (HUF million)