European plastics packaging firm Bericap is investing around €6m to expand its closure manufacturing capacity in Hungary and France
Bericap of Budenheim, Germany is spending €2m to install a closures line at its beverage caps plant in Szekesfehervar in Hungary. The line, required to increase supply of its products to the Danish, Swedish and Norwegian packaging markets, is set to come on stream in November this year, according to Hungary's MTI news agency. The Hungarian subsidiary, which manufactures 4.5 billion caps per year, is boosting its production by 10% during 2009. Last year, it invested around Euro 4 million in its operations with the help of a state grant, MTI said. Meanwhile, in France, the Bericap is reported to be investing €4 million to add 10 closure moulding lines. The new lines, being installed at its plant in Dijon Longvic, France, will enable the group subsidiary to produce new types of closure, varying weight according to application, with a resulting major cost reduction in material used. Despite being hit by the effects of historically high resin prices, low volume demand and weakening currencies in several countries, Bericap group remained in the black, recording annual sales worth nearly €500 million, it reported. During 2008, the company expanded production capacity in Romania with the launch of a new plant in Ploiesti, while adding another operation in South Carolina, USA. Bericap plans to concentrate future growth in Asia. The firm says it is keeping up with the expansion of customers there.