La Seda to shut down Greek PET operation

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: June 4, 2013 12:03 pm ET
Updated: June 4, 2013 12:05 pm ET

Related to this story

Topics Packaging Blow Molding
Companies & Associations

European PET packaging group La Seda de Barcelona has begun the formal process of closing down its Greek PET and packaging preform subsidiary Artenius Hellas.

The group, based in Barcelona, Spain, reported to the Spanish stock exchange regulator CNMV, that, under the process, it has reached agreement to terminate labor contracts with the workforce at the Artenius Hellas plant in Volos, Greece.

Artenius Hellas, which was reported to have earlier cut salaries of its workers, had been in statutory talks with representatives of 92 employees prior to plans to cease operation of the facility.

Labor agreement follows the liquidation decision over the loss-making 80,000 metric ton per year Greek PET operation which has suffered from a reduction in production capacity and falling local demand, the group said.

Apart from the Greek plant, it operates three other PET facilities in Italy, Turkey and Spain as well as raw material chemical units in Spain and Portugal.

LSB, which is still struggling to reach an agreement over the renegotiation of its outstanding 230 million euro debt, has been granted a further reprieve on repayments for its syndicated loan. The Catalan group has obtained a further month's extension until 30 June to defer required payments.

LSB is working to get a tentative debt refinancing agreement involving the US Anchorage investment fund ratified by the lenders of 75 percent of its syndicated debt, representing more than half of its creditors. Debt renegotiation is essential for LSB to avoid bankruptcy.

If the deal is approved it could mean corporate restructuring and separation of LSB's buoyant APPE packaging operations from its less successful PET polymer and recycling divisions.


Comments

La Seda to shut down Greek PET operation

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: June 4, 2013 12:03 pm ET
Updated: June 4, 2013 12:05 pm ET

Post Your Comments


Back to story


More stories

Image

Colormasters' film investments add capacity and capability

April 17, 2015 11:35 am ET

Colormasters LLC continues to invest in new film and converting capacity to keep up with demand for its flexible packaging products.    More

Image

Thailand's Royal Group adding thermoforming plant in Indiana

April 17, 2015 11:17 am ET

Royal Interpack North America Inc. is spending $12 million to make recycle-content PET clamshell containers in Anderson, Ind.    More

Image

Inteplast buys Canadian film maker Haremar, bag maker El-En

April 13, 2015 4:29 pm ET

Inteplast Group has increased its business in Canada with the acquisition of a specialty polyethylene blown film coextruder.    More

Image

Reliance finds room to grow in North Carolina

April 9, 2015 3:04 pm ET

Reliance Packaging LLC expects to grow significantly during the next three years, both in production of heavy-duty plastic bags for the lawn and...    More

Image

Silgan to hire 120 for new plant

April 9, 2015 2:57 pm ET

New details are emerging about Silgan Plastics' plans for a new production facility in Hazelwood, Mo., near St. Louis.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events