Expansion. Dunapack, Hungary’s largest paper producing company had a successful last year, increasing both its profit and sales revenues compared to last year.
As Miklós Galli President-CEO told our reporter, compared to 2006 net sales revenues for Dunapack Zrt. rose by 16%, while Dunapack group increased its net sales revenues by 12%. Though no exact figures are available until the balance sheet is completed, a growth in the company’s profit was also reported. These achievements are all the more remarkable, he added, since the price of raw materials (waste paper, starch) and energy (gas, electricity) went up considerably last year. Touching on the subject of market trends, he explained that there has been a boom in paper industry both in Western and Eastern Europe in the past two years, leading to a shortage in packaging paper. Buyers were left with no other choice but to accept the price increase imposed by manufacturers. According to Dunapack, the market growth was strongest in Eastern Europe, particularly in Poland, Bulgaria and Hungary. Mr. Galli underlined that though the GDP increase only reached one percent last year, corrugated packaging materials sales grew by nearly 10 percent, demonstrating that the processing industry was not affected by the economic standstill. Paper industry has always been characterized by cyclicity. On the basis of the forecasts and the events at the end of last year, no further price rises and a relative stability of the Western and Eastern European markets are anticipated. This, however, does not mean that manufacturers can now relax, since the impact of the recent stock exchange crash on world economy is impossible to predict. A potential slump may land packaging paper users producing papers for export, and, through them, packaging paper manufacturers, in difficulty.
Dunapack keeps improving its technology and machinery and is making efforts to increase its capacity to meet growing demand. The company has already launched a large-scale investment project. The new paper machine in the Dunaújváros plant requiring an investment of HUF 50 billion is expected to be in operation by Summer 2009. A HUF 30 billion power plant building project is also in the pipeline. The project has considerable environment protection implications, facilitating the recycling of 400,000 tons of waste paper. The high value project will be carried out by the project company of the group established precisely for this purpose. Building on the growing capacity, the company continues its expansion in Eastern Europe with a new plant in Herson, Ukraine, with an expected annual output of 120 square metres of packaging material from corrugated board. The EUR 34-million project has already begun. According to the plans, production will start early next year. The company is also reported to be planning the construction of a corrugated board plant for 2009-2010 in the Baltic region. HÉ High ranking on the top 500 list Based on its performance in 2006, Dunapack Zrt. was listed among the top 500 companies with the biggest sales revenue and profit on HVG’s recently issued top list. A sales revenue of HUF 47.9 billion – a 19 percent increase compared to the previous year – has landed the company 125th place, while with an after tax profit of HUF 2.8 billion, Dunapack secured itself 108th place among companies with the biggest profit.
Based on the company’s ROS and ROE, a 301th and 430th ranking was obtained, respectively.
Source: Világgazdaság, 20 February 2008. |
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