Two million euros for development at the Sepsiszentgyörgy plant
Dunapack Rambox, Dunapack Rt.’s affiliate in Rumania, made record profit last year. This year, the company is planning to make a 2-million-Euro investment for quality improvement and capacity increase in its plant in Rumania. Dunapack Rt., the owner operates production plants in several countries in the region apart from Rumania, and is considering further expansion.
Last year, Dunapack Rambox strengthened its position as the leader in the Rumanian market. In 2005, it sold around 66 million m2 corrugated cardboard products, exceeding previous year\´s sale by more than 20%, while revenues for the company reached 60 million lei (4.3 billion forints, which also represents a solid 20% increase compared to the previous year, said László Panyi, Deputy CEO of Dunapack Rt. Mr. Panyi also told us that for the past two years, the boom in the Rumanian economy has become increasingly evident, and its effects are also seen in the increased demand for packaging materials. On the other hand, Dunapack Rambox’s sales rose at a higher rate than the 12-13% increase in the demand for corrugated cardboard products and the market share of the company has grown to 19-20%. In addition to favorable market conditions, the high exchange rate of the leu as compared to the euro, and low prices for base paper, the most important raw material for corrugated cardboard production, also contributed to high profit for the company. However, a few months ago the trend of decreasing base material prices was reversed and prices are expected by Dunapack Rambox to increase this year. This explains higher prices for end products. As a result, in 2006, the company will focus on increasing the sale of products with higher added value and optimizing the product portfolio. With a view to increasing the production of printed corrugated cardboard boxes that are for sale at higher prices, quality improvement and capacity increase investments were made in the Sepsiszentgyörgy plant financed both from last year’s investment plan fund of more than 1 million euros in last December and from a further 2-million-euro development fund this year.
The Rumanian company was founded by Dunapack Rt. in 1994 and local production started in 1997. Since then, the company has spent more than 15 million euros on its plant in Sepsiszentgyörgy, Kovászna county. Ninety percent of the products manufactured here are sold in the Rumanian market, while the rest is transported to Moldova to be sold. The affiliate company focuses more on supplying for the local market, whereas Dunapack Rt.’s other plants in Bulgaria and Croatia are engaged in export deals in the South-Eastern European region as well.
Gergely I. Németh
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