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

Amcor buys Nampak Flexibles

March 31, 2015 3:31 pm ET

Australian packaging giant Amcor Ltd. has bought South African-based Nampak Holdings Ltd.'s Nampak Flexibles division.    More

Image

Dow Chemical sees potential for PE growth in packaging

March 30, 2015 1:17 pm ET

The packaging market continues to provide growth for the polyethylene business of Dow Chemical Co. — which is a good thing, since the firm will ...    More

Image

Sipospack to build new flexible packaging plant in Hungary

March 30, 2015 9:38 am ET

Hungarian flexible packaging producer Sipospack Kft. is investing nearly 3 million euros ($3.2 million) in an expansion at a new site at Sóskút in...    More

Image

Flextronics launches global injection molding, tooling unit

March 26, 2015 4:29 pm ET

Flextronics International Ltd. (Booth S34125) is officially launching Precision Plastics, a global injection tooling and manufacturing unit, as a...    More

Image

Kautex showing off an extrusion blow molding machine at NPE

March 25, 2015 6:00 am ET

After 80 years in business, Kautex Maschinenbau GmbH officials know good old-fashioned word of mouth is often the best way to reach more customers.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events