ATHENS (Thomson Financial) - Greek packaging group M. J. Maillis said that its restructuring efforts to improve profitability are continuing, with the merger of commercial and production activities and a reduction in the number of intermediate holding companies.
Maillis said that commercial activity in the Netherlands was absorbed by M.J. Maillis Belgium NV, which was renamed to M.J. Maillis Benelux NV.
The commercial activities in Sweden, Albania and Serbia through commercial subsidiaries were terminated and resumed through local distributors.
The merger of production entities and divisions in Italy was completed and in order to reduce the number of the intermediate holding companies of the group, all the holdings and other activities of Helero B.V. were transferred to the other holding company of the group, Europack S.A.
The above restructuring will result in one-off impairment losses, good will write offs and extraordinary expenses of 6 mln eur which will be booked in the 2007 interim results.
The cost of the restructuring on a cash basis is 200,000 eur, but the company expects that the group's consolidated results will benefit by 1 mln eur annually.
Maillis added that it expects to derive economies of scale, improved working capital management and a streamlined structure which will benefit the groups headquarters and subsidiaries. Source: Euro2day.gr NewsWire nick.skrekas@thomson.com ns/rfw COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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