EQS Group-News: Dynamics Group AG / Key word(s): Miscellaneous
Eliopack will temporarily shift production capacity to other Aluflexpack
facilities due to fire incident
2019-06-25 / 21:18
Press release
Reinach AG, 25 June 2019
*Eliopack will temporarily shift production capacity to other Aluflexpack
facilities due to fire incident*
Aluflexpack AG ("Aluflexpack" or the "company") informs that on the late
afternoon of 24 June 2019, a fire occurred in the ink department at the
manufacturing facility of its subsidiary Eliopack in the industrial zone of
Ajeux in La Ferté-Bernard, France, one of Aluflexpack's seven production
plants. The fire is reported to have started at about 5.40 p.m. (CEST) and
was extinguished at about 10:30 p.m. (CEST). No human injuries or casualties
have occurred.
Aluflexpack is currently examining the scope of the damage caused. Based on
a preliminary assessment, management believe that only the facility's ink
department and some electrical infrastructure elements have been affected.
The company currently believes that, on the basis of the immediately
apparent damage, the necessary repairs can be completed in a period ranging
from three to five weeks. Several other departments are expected to be able
to continue normal operations within a week.
Net sales of Eliopack accounted for approximately 12.4% of Aluflexpack's
total consolidated net sales for the financial year ended 31 December 2018
(on a pro forma basis, showing the effects of the acquisition of Arimpeks in
Turkey, as if this acquisition had been completed as of 1 January 2018). On
that basis, and based on management's preliminary assessment of the damages,
production plans and taking alternative routing within the Aluflexpack group
into account, management currently believes that this incident will not
result in material loss of revenues. The company expects that the damage,
including potential cost associated with business interruption will be
covered by the existing insurance policies "The most important thing is that
nobody got hurt", says Igor Arbanas, CEO of Aluflexpack. "I would like to
wholeheartedly thank our team and the local fire department for their swift
and professional reaction which prevented bigger damage. Next week, we will
restart operations in several departments and expect the site to be fully
operational in 3 to 5 weeks. Based on the first evaluations and discussions
with our customers, we believe our ability to fulfill customers' orders
won't be materially affected. I would also like to thank our partners who
immediately provided help in fixing the damage and helping us to get back to
normal business as soon as possible."
During the production stoppage required to carry out repairs, the company
will endeavour to shift production to other facilities. Aluflexpack
maintains a certain overlap in production capabilities of its production
facilities primarily for contingency planning. Management currently assumes
this overlap will enable the company to shift production to other facilities
to a very large degree. As a result, management currently does not believe
that the company's ability to fulfil customer orders will be materially
interrupted.
Together with the local fire authorities, Aluflexpack is currently
investigating the cause of the fire. The company is also investigating
whether the stability of its infrastructure and the structure of the
affected area at the manufacturing facility in La Ferté-Bernard have been
affected by the fire.
Media contacts
Dynamics Group AG
Andreas Durisch / Thomas Balmer
adu@dynamicsgroup.ch / tba@dynamicsgroup.ch
+41 43 268 32 32
About Eliopack:
Eliopack is situated in the industrial zone of Ajeux in La Ferté-Bernard,
France. Eliopack manufactures flexible packaging materials mainly for the
pharmaceutical and human food end market, where it focusses on converting,
printing, slitting and die cutting. As of the financial year ended December
31, 2018, Eliopack employed 80 employees and generated net sales of EUR
23,782 thousands, primarily in France but also in some other European
markets. The company was acquired by AFP Group GmbH, a wholly-owned
subsidiary of Aluflexpack, in July 2015. AFP Group GmbH holds 80% of the
interest in Eliopack.
About Aluflexpack AG:
Aluflexpack AG (Aluflexpack) is a 100 % subsidiary of Montana Tech
Components AG. Aluflexpack produces flexible packaging solutions mainly for
end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and
dairy. Well-established insights, service flexibility and innovative
strength are what underpin long-term customer relationships; both with
locally operating companies and large international corporations.
Aluflexpack, headquartered in Reinach (AG), Switzerland, has production
facilities in Switzerland, France and Turkey and four production facilities
in Croatia. The number of employees as of March 31, 2019 was approximately
1,150. www.aluflexpack.com
Disclaimer
The information contained herein is not for release, directly or indirectly,
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This communication is not being distributed to, and must not be passed on
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End of Corporate News
830901 2019-06-25
(END) Dow Jones Newswires
June 25, 2019 15:18 ET (19:18 GMT)
