On course for expansion

The Frantschach Group ended 2003 with another jump in turnover and profits in spite of the setback in the economy, according to a recent press release by the company. The Group’s total turnover was 1.93 bn € (2002: 1.9 bn €). Frantschach manufactures its products at 85 locations in 41 countries and at the end of 2003 the number of employees totalled 9,323.
Annual turnover of 3.7 bn €
Since 31 March 2004, the Frantschach Group has been wholly owned by the Mondi Group, which also has 100% ownership of the Neusiedler Group and the Mondi Packaging Group. The operation of all three Mondi €ivisions (packaging/sacks, corrugated and office stationery paper), with an annual turnover of 3.7 bn € and 35,000 employees (excluding South Africa and Bauernfeind acquisitions), is undertaken from Vienna.
As the Chief Executive Officer of Frantschach AG, €r. Veit Sorger, stressed at the annual press conference, the Frantschach Group has strengthened its strategic position of 2003 further. The Group has expanded its production capacity through a series of acquisitions and newly formed companies. The company states that the Paper €ivision was affected in 2003 by a €rop in market prices, and its turnover was 664 mio €. 1.63 mio tons of sack and kraft paper were produced as well as pulp. Sack production made a greater contribution to the Group, attaining a turnover of 558 mio €. 2.7 bn paper sacks left the Frantschach production plants. In the Coating €ivision, the Group states that a turnaround was achieved, with pleasing results. Turnover here amounted to 241 mio €. In total, 1.5 bn m² of polymer-coated and laminated paper, boxes and other packaging materials were produced. In the Flexible Packaging €ivision, a significant step was taken towards expansion with the acquisition of Neoplex (Denmark), paving the way for further innovations, and turnover  came to 211 mio €. The volume of production here included 137 mio m² of release liners, 337 mio m² of film and lamination as well as 695 mio stand-up pouches and consumer packaging.
Focus on North America
The Group intends to consolidate its position in the North American market further this year. The planned level of investment for 2004 will mirror that of last year (excluding acquisitions). Sorger commented: "The integration of our newly acquired plants has already taken place. Our latest acquisition in Mexico is a major challenge for the team, while the focus will remain on the €evelopment in China. We will be €edicating 2004 too…