Romanian plastics firm Prodplast has begun searching for a partner it hopes will help it to step up production of polyethylene in the country's blossoming market for flexible food packaging.
Elena Pantazi, the group's economic manager, said Romania's capacity for polyethylene production was insufficient to meet the growing potential of the market among food packagers and other businesses. She added that as the country is presently without a dedicated producer for the various types of multilayer films, processors are having to look to foreign markets to meet their demands. Prodplast hopes that by producing the films, which along with polyethylene include polypropylene (PP) and EVA, it will be able to capitalize on the need for the materials in the country.
Pantazi told FoodProductionDaily.com that as part of the company's new technology platform, situated outside of Bucharest, it would look to enhance its production capabilities for polyethylene and other multilayer films. „Because the future for consumption of packaging materials exceeds the existing local production capacity, our investment plan involves a PE flexible packaging development.” To do this, the group hopes to work with a company that has strong experience in the sector as part of a strategic alliance or joint venture.
Prodplast said it was therefore unable to discuss financial arrangements for the plants construction as it was not yet aware just what its partner's spending potential or intentions for the venture would be. The group said, however, that Romania was an increasingly strong market for its products. „Polyethylene flexible packaging is important even now, accounting for 40% of our total sales, which is about €20 million,” said Pantazi. „The potential of local market is getting bigger and bigger, particularly for food and non food packaging.” The group admitted it had already held negotiations with two potential suitors, but they had not chosen to move ahead with a collaboration. Flexible packaging and multilayer film has many applications for food producers particularly for frozen, dry and fresh foods, as well as liquids. (foodproductiondaily.com)