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Pannonplast signs contract for sale of plastics unit

Plastic parts company Pannonplast Rt announced on Thursday it has signed a final contract to sell the assets of Pannonplast Technical Plastic in Székesfehérvár to France's Plastiques Du Val De Loire (PVL). Under the contract, Pannonplast will retain ownership of the property on which the factory is built, but will lease it to PVL's Hungarian unit Dunainjecion. PVL will, however, have an option to purchase this property in the future. The unit racked up losses of Ft 100 million from the start of the year until the assets were transferred on February 13, Pannonplast said in the announcement, noting that the unit will be included in its consolidated figures until February 13. The price of the transaction is confidential and PVL did not wish to disclose the term of the option for the real estate, CFO Dénes Gyimóthy said earlier. When Pannonplast announced the signing of a preliminary contract for the sale in December 2005, it said Pannonplast would write off Ft 430 million in losses as a result of the sale.