VPK Packaging Group, the owner of Rigid Containers in the UK, has reported first-quarter growth in its packaging divisions, but said profit margins were "under pressure" owing to high energy prices.
The Belgian packaging group said in an interim statement that all divisions faced "substantial" increases in energy and raw material costs. It expected to pay €7m (£5.5m) more for its recovered paper and energy in the current financial year than it did in 2007.
The firm said it would have "strong growth" in the first half of 2008 in Central and Eastern Europe as demand for packaging grows. This region could also provide scope for further expansion of the business.
By contrast, Western Europe was an "uncertain" market for the group in the first quarter.
Paper production at Oudegem in Belgium is expected to be lower in the first half of 2008 following a stoppage for the refurbishment of its largest paper machine.
VPK has acquired two Belgian firms, Saucas Display, a producer of corrugated board displays, and R&F Folding Boxes, which makes solid board packaging, since the beginning of the year.
The firm is also investing £3m at Rigid Containers' plant in Selby, North Yorkshire.
The group has two paper mills, 10 corrugated board companies and one solid board company in Benelux, France, UK and Poland. It also has 10 tube businesses located in nine countries.
Source: packagingnews
The Belgian packaging group said in an interim statement that all divisions faced "substantial" increases in energy and raw material costs. It expected to pay €7m (£5.5m) more for its recovered paper and energy in the current financial year than it did in 2007.
The firm said it would have "strong growth" in the first half of 2008 in Central and Eastern Europe as demand for packaging grows. This region could also provide scope for further expansion of the business.
By contrast, Western Europe was an "uncertain" market for the group in the first quarter.
Paper production at Oudegem in Belgium is expected to be lower in the first half of 2008 following a stoppage for the refurbishment of its largest paper machine.
VPK has acquired two Belgian firms, Saucas Display, a producer of corrugated board displays, and R&F Folding Boxes, which makes solid board packaging, since the beginning of the year.
The firm is also investing £3m at Rigid Containers' plant in Selby, North Yorkshire.
The group has two paper mills, 10 corrugated board companies and one solid board company in Benelux, France, UK and Poland. It also has 10 tube businesses located in nine countries.
Source: packagingnews
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