Annual report 2002.

The Company’s product groups in 2002

1. Corrugated base paper

Corrugated base paper sales increased 5% year on year. Growth in demand from within the Company (10%) and from other domestic companies (20%) were particularly dynamic. The share of exports within total sales decreased, due to a greater-than-expected increase in intra-company and domestic sales opportunities. However, the sales volume of light weight corrugated base paper from machine no. 4 increased spectacularly (by almost 50%), making it possible to utilise the machine capacity freed up by the reduction in demand for bag paper. Sales prices were below target, mainly due to the strengthening of the forint, and fluctuated dramatically over the course of the year, steadily decreasing until the middle of the year before increasing rapidly in the third quarter and dropping again in the fourth. Prices at year-end were approx. 5% higher than in January, while the amplitude of the price fluctuations reached 30%.

2. Bag paper

Due to a fall in demand from within the company, bag paper sales decreased by 700t (3%) year on year. In the first half of the year prices were approx. 10% lower than estimated. In the second half it was possible to narrow this gap by approx. 5 percentage points, but – due to the stronger-than-expected forint – prices in December were still lower than calculated.

Production value of the Dunapack Group (HUF million)