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Pannonplast to buy or build plants in Serbia, Bulgaria

Pannonplast Rt, a plastics maker working to post its first annual profit in five years, plans to build or buy two plants in the Balkans this year to make packaging for companies such as Groupe Danone, Chief Financial Officer Dénes Gyimóthy told Bloomberg.  

The company plans to spend a total of €10 million to construct a plant in Serbia in the first half and to build or buy another in Bulgaria in the last six months of this year, Gyimóthy said. Production at the Serbian factory is to start in the second half of this year.

 

Pannonplast has struggled as slowing economic growth in western Europe curbed demand for its products including computer casings and yogurt containers. The company, which also operates in Romania and Ukraine, is focusing on consumer packaging and expansion in southeastern Europe after reshuffling management and selling unprofitable units.

 

“Since we're now done putting out fires, we're focusing on growth and expansion this year and next,” Gyimóthy said. “Our multinational customers want partners they can work with regionally.”