BARCELONA, SPAIN (July 13, 11 a.m. ET) — La Seda de Barcelona has halted a plan to expand its plastics packaging division (APPE) after falling short in an attempt to raise capital for the project.
The Barcelona-based blamed tough financial conditions in Europe, and said it will look for alternative ways to finance the plan.
The company was seeking capital to help APPE expand into new markets and different materials.
La Seda announced July 12 that it had aimed to raise 40 million euros ($48.7 million) to finance the project, but to date it had only raised about 12.3 million euros ($15 million).
“The board of directors regrets that it has not been possible to complete the operation, which has been affected by current economic conditions in Europe,” the company said.