Poland’s injection moulder and packaging film manufacturer ERG capital group has purchased a PE stretch film production line from Italian company MAM2, PRW.COM reports.
The deal is worth more than €1.18m (£1.06m), the producer said in a filing to the Warsaw Stock Exchange (WSE).
Last month, ERG secured an investment grant of some 1.99m zloty (PLN) (£414,000) from the European Union. ERG used the allocation and the funds it acquired through a bank loan to finance the purchase.
The project is expected to be completed by the end of February 2017, and is set to increase the company’s production capacities by 18%.
The move is accompanied by the release of ERG’s improved financial results for the first three quarters of this year. From January to September 2016, the manufacturer posted revenues of some PLN 72.75m (£15.13m), an increase of 12.6% compared with the same period a year earlier.
ERG also managed to expand its net profit fivefold to about PLN 4.87m (£1m).
ERG’s product range includes PP and PVC adhesive tapes, PE and EVA packaging films, as well as plastic bags, containers, battery cases, buckets, bins, crates and baskets, according to data from the Polish company.
Established in 1972 and headquartered in Dąbrowa Górnicza, in the country’s south-western part, ERG was privatised in 2005. The company has been listed on the WSE since 2005.
In June, ERG announced that it grew profits for the first quarter by 80% year-on-year, following the launch of two new stretch film production lines.