Hungarian flexible packaging producer Sipospack is investing nearly €3m in an expansion project at a new site at Sóskút in central Hungary to raise its production capacity.
It is constructing a new 2,400 square metre production hall and installing a range of new machinery there with a completion date scheduled for June this year.
As a result of the expansion, Sipospack expects to increase its annual revenue by €3.33m in the next three years and raise the workforce headcount from 22 to 37, while boosting the firm’s share of export sales, according to its project manager Viktor Horváth.
The new project is supported with a European Union grant of €867,000 set to cover the cost of switching from natural gas to renewable energy through the use of solar panels and biomass fuel.
The company, based nearby in Herceghalom, manufactures polyethylene and BOPP films, cling film, laminates, converted bags and sacks and other packaging for the Hungarian food industry.
In 2013, Sipospack recorded annual sales worth €8m, including export revenue of almost €207,000, and it achieved an after tax profit of €643,340, according to the Hungarian news agency MTI.
Sipospack is a dynamic young packaging company only formed in 1996 which achieved its initial market position in the area of plastic film wrap. Today, the firm is the biggest distributor of films produced at Tiszaujvaros, Hungary by the Dubai-based producer Taghleef Industries.
Last year, Taghleef Hungary announced a project to boost its capacity for 5-layer BOPP films at the national plant raising its output to 60,000 tpa. The upgrade, completed last June, was designed to enable Taghleef to serve the label industry with IML as well as the food sector.