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Pannonplast sets up JV with Prettl

Plastics maker Pannonplast Rt said on Wednesday it signed a contract with Prettl Management Service of Germany to set up a new company 51% owned by Prettl and 49% by Pannonplast to take over the Budapest operations and specified assets of its technical plastics unit Pannonplast Műszaki Műanyagok Kft.

The contract is in line with a letter of intent between Pannonplast and Prettl announced on March 16. The transfer of operations and assets is scheduled to take place by the end of May 2006. Through the transaction, the Pannonplast group will complete the transfer of all majority or controlling stakes in its technical plastics manufacturing units, the company said. The new company, called Prettl Pannonplast Hungaria Plastics, will be set up with registered capital of Ft 25 million and the owners agreed to contribute additional capital in cash to purchase the assets, Pannonplast CFO Dénes Gyimóthy said.