Dunapack Packaging Plans EUR 5.7 Million Machinery Upgrade Project at Nyíregyháza, Hungary Plant

Dunapack's investment project at its production facility in Nyiregyhaza in Northeast Hungary, will replace and modernize a significant part of the plant's machinery.

Oct. 17, 2013 (Press Release) - Dunapack Packaging Division, part of the family owned Austrian Prinzhorn Holding, is substantially upgrading its production plant in Nyiregyhaza in North-East Hungary. With an overall investment of EUR 5,7 mill (HUF 1,717 mill), Dunapack plans to systematically modernize machinery and infrastructure in its plant Dunapack Nyiregyhaza (PC3), in order to further strengthen its production quality and flexibility, and to increase productivity and production capacity.

The investment project will replace and modernize a significant part of the machinery and shall be finalized by the end of 2014. The investment reflects the strong commitment of Prinzhorn Holding to its Hungarian entities: In the time-span 2006 - 2010, Prinzhorn Holding invested a total amount of EUR 280 million in Hungary; primarily into the construction of its new paper mill in Dunaújváros.

Further investments to the amount of EUR 220 million are planned for the period 2011 - 2015.

The investment project in Nyiregyhaza is made possible by the availability of European non-refundable subsidies for the North-East region of Hungary; 50% of the investment will be covered by an EU grant.

"Dunapack's strength has its roots in our high-level quality standards, in our innovative product portfolio that allows tailor-made packaging solutions for our clients, and in our sustainable production processes, based on 100% recycled paper as raw material for all of our packaging solutions", says Alexander Enzenberg, Managing Director of Dunapack Packaging Division. "Our investment program will even further these strengths for the Hungarian market."

The Dunapack Nyiregyhaza (PCR) plant was built in 1971, primarily to supply the local agricultural production with paper-based packaging materials. During the last 20 years the plant has expanded to supply a wide range of industrial clients in Hungary and the neighboring countries with top-quality packaging solutions. The planned upgrading of machinery and infrastructure will allow a substantial widening of the range of packaging production and an outreach to new markets and client segments. It will also decrease the amounts of waste caused by production and lower maintenance costs.

"Further increasing our production capacity and improving our quality as well as our productivity and operational safety will strengthen our competivity on the currently very sharp packaging market in Hungary and CEE", says Alexander Enzenberg; Managing Director of Dunapack Packaging.

The upgrading program foresees a new packaging machine, a new print unit, new splicers, web and steam controlling system for the corrugator as well as a modernization of the internal material handling and the flexographic printing and improvements with box making.

Leading Market Position in Europe

Dunapack Packaging is part of Prinzhorn Holding. Prinzhorn Holding employs 4.478 people in 13 countries and ranks among the European market leaders in the recycling, paper and packaging industry. With an annual production of 1,7 million tons of corrugated board produced from recycled paper and an annual turnover of approximately 1 billion Euros the company is number three in Europe in this segment.

The family owned Prinzhorn Holding has its headquarters in Wiener Neudorf / Austria and is structured in three divisions: Hamburger Recycling Group (collection and trading of waste-paper), Hamburger Containerboard (production of corrugated board) and Dunapack Packaging (corrugated packaging solutions).

In Hungary, Prinzhorn Group is present since 1990, as an important waste collector (Duparec Kft.), with the most important Hungarian waste recovery and paper production facility (Hamburger Hungaria Kft.) and as the largest producer of packaging paper (Dunapack Kft.). Operations in Hungary, creating high added value with today annual turnover of € 400 Mio., have invested around € 600 Mio. in the last 20 years in Hungary. As a local market leader, Prinzhorn employs over 1.100 people in Hungary.

SOURCE: Dunapack Packaging