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Danapak Papemballage sold

Press Release   •   Jun 10, 1999 12:31 CEST

The Swedish packaging firm, SCA Packaging, has bought Danapak Papemballage from the MD Foods group with effect from January 1, 1999 for a sum of DKK 530 million. If Danapak Pap's 1999 earnings were to significantly exceed those of 1998, a further amount of up to DKK 15 million will fall due.
Danapak Papemballage was a division of the Danapak group.
The division was put up for sale in the autumn of 1998 following a decision to concentrate Danapak's resources on the group's other three divisions, which manufacture inner packaging. The packaging sector's increasing internationalisation and the powerful influence of the very large manufacturers of paper and forestry products in the production of corrugated cardboard also played a role.
Danapak's remaining divisions will not be affected by the sale.
As part of the continued adjustments of Danapak's production, the printing and punching departments at Danapak's Northampton factory in the UK have been transferred to Danapak's factory in Bremen following three years of unsatisfactory results. Some finishing of products for selected UK customers will, however, continue in Northampton. 88 employees currently work at Danapak in Northampton producing cardboard packaging for the UK market. This figure will fall to approx. 30 employees once the transfer has taken place in February.