Constantia Flexibles to shut confectionery packaging plant

Constantia Flexibles Group is to close its confectionery and snack packaging plant in Romania in a move that will lay off 90 employees.

The closure of the film-based flexible packaging facility in Bucharest is expected to be finalised by July. Production of confectionery and snack packaging will be transferred to the company’s plants in Weiden, Germany, Ankara, Turkey and Kleszczów, Poland.

“We will carry out this closure in a fair and socially responsible way, while at the same time ensuring that our valued customers experience no disruption in supply,” says Stefan Grote, executive vice president of the food Europe division.

“The transfer of production capacities will also mean we can offer a dedicated plant concept to our customers in the long-term, thus optimising order placement, production scheduling, logistics and quality,” adds Grote.

Constantia Flexibles’ food Europe division has twelve production sites in eight countries, serving the dairy, processed meat and confectionery/processed food industries.

Separately,Constantia Flexibles posted a 3.4% decline in full-year net profit to €57.4 million from €59.4m in 2015. The group’s sales, however, increased 8.6% to €2.10bn from €1.90 last year. Sales of the food division increased by 6.8% to €1.20bn in 2016.

Growth in America in 2016 was “encouraging” for the food division. The business with film-based snack packaging achieved significant sales increases, Constantia notes.

Sales in Europe declined slightly, primarily due to lower raw materials prices. Sales volumes of film-based packaging for confectionery and ready-made meals increased again. Sales in the emerging markets were challenging, due to the difficult political environment in Turkey and neighbouring countries.