Swedish packaging company PLM AB has signed an agreement with the Leszno province governor to acquire a 52% stake in the glass container maker Wielkopolska Huta Szkla based in Gostyn, Poland, after it…
Swedish packaging company PLM AB has signed an agreement with the Leszno province governor to acquire a 52% stake in the glass container maker Wielkopolska Huta Szkla based in Gostyn, Poland, after it becomes a joint stock company owned by the state. The state will retain a stake of a little over 42% and employees will get just under 6% of the new company“s shares. PLM is to invest about US$ 20 million in Gostyn. The agreement is subject to the approval of the privatisation minister. PLM has also announced that it has recorded a SKr 62 million profit figure after net financial items in the first quarter of this year, down from SKr 74 million in the corresponding period in 1995. However, group sales showed a slight fall to SKr 1,808 million (first quarter 1995: SKr 1,827 million). PLM still expects its full-year profit to exceed the 1995 figure despite the fact that the first-quarter results were below expectations. The glass division posted an operating profit of SKr 32 million (SKr 47 million) on sales of SKr 705 million (SKr 716 million). The deterioration was due largely to a major furnace overhaul programme in the UK, which is part of PLM Redfearn“s UK 35 million expansion aimed at boosting its European markets. PLM has opened a UK 13 million furnace at its Barnsley centre, UK, safeguarding the jobs of 1,050 staff and setting the seal on a project that has boosted capacity by 20% to 3 million bottles and jars a day. The Swedish-owned company has raised its exports significantly and is targeting France, its main European market, with its coated glass containers. PLM is spending UK 15 million this year and UK 20 million in 1997 on furnaces, machinery, design facilities and handling improvements to serve an expected 10% sales increase to UK 100 million for customers including Bass and Nestl.