Annual report 2006

• In 2001, a ten-year development project approved by the environmental authority was planned for the Csepel site. The tasks related to water reuse planned for 2006 were completed (HUF 42.8 million). As a result, specific fresh water consumption was kept below the targeted 10 m³ per ton of paper. Water circulation was reorganised in such a way that all technological waste-water can be  removed through one point.
• The preliminary permit for the new biological sewage treatment facility was obtained and the related preparatory operations were commenced (HUF 24.8 million). Research and development activity involved product and, to a lesser extent, technological development projects. In 2006, expenditure on R&D reached HUF 55 million.

Product Categories in 2006

1. Corrugated Base Paper

The long-year trend relevant for the European packaging paper market reversed in the autumn of 2005. In the region corresponding to the 15 countries of the former EU, accounting for 90 per cent of both consumption and production, consumption rose by 3 per cent as against the rate of 1 to 2 per cent in previous years, while production capacities decreased by approximately 4 per cent. The Eastern European region repeatedly contributed a significant growth rate of approximately 6 per cent to the balancing of supply and demand. The increase in demand in the European market was stepped up by the fact that the European corrugated paper production facilities strived to substitute test liner for the kraft liner imports significantly cut back from both Russian and US sources.

When the plans for the business year of 2006 were developed, there were no signs of a steady market growth as yet, and only a slight increase in prices was expected. In contrast, from the 4th quarter of 2005 on, we managed to raise our prices by some EUR 100 in four steps as against the nadir registered in August 2005. The steadily growing demand made it possible for us to optimise our clientele and to improve the utilisation of working width.