Treofan doubles profits in 2015

BOPP film specialist Treofan almost doubled its operating profit to over 32 million EUR (37 million USD) in the 2015 financial year, in part due to the company’s move to a product mix more heavily focused on specialty films.

BOPP film specialist Treofan almost doubled its operating profit in 2015

In 2015, the share of specialty films grew to almost 70 percent of Treofan’s total sales volume, reaching 72 percent in the first quarter of 2016. Treofan Americas was responsible for the biggest individual increase, growing its specialty films share by more than 12 percent.

In its Packaging & Labels business unit, specialty products now make up 66 percent of sales volume. In Treofan’s tobacco packaging business, this figure is 90 percent, while the company’s technical films department only produces specialties. One of these, being launched this year, is Treopore. First commercial orders of this nanostructured microporous separator film are currently being delivered. Having successfully passed an exhaustive series of tests for use in lithium-ion batteries from leading manufacturers, Treofan is expecting Treopore to reach an order volume of around five million sq m in 2016.

Treofan CEO Dr Walter Bickel said: ‘We increasingly see ourselves as a provider of BOPP film surface technologies. Being the only BOPP manufacturer to cover all application areas, we can tailor film parameters such as thickness, barrier effect and porosity, adhesive properties and processing speed to all kinds of different uses. This ability, combined with our direct access to major brand owners and our network of partners at every stage of the value chain, strongly differentiates us on the market.’

Further organizational initiatives towards leaner processes and improved cost structures also contributed to the 2015 result, as well. One example is the recent streamlining of the company’s European management structure.

Strong performance has already been reported by Treofan in the first quarter of 2016, and Bickel expects this to continue. In addition to the ongoing expansion of Treofan’s specialty product share, initiatives to make the organization even more customer-oriented will play a role in growing profitability, as will continued investments, such as a new coater at Treofan’s Battipaglia site in Italy.

In the Packaging & Labels business unit, taking a strategic approach to joint development has led to a whole series of new products. Carolyn Wagner, head of Packaging & Labels, lists examples including the EPT special film for thermoforming IML, the HybraPack hybrid material that combines paper and BOPP film, and the development of a barrier film to prevent mineral oil migration, as well as custom packaging products tailored to the demands of individual brand owners.

‘At Treofan, innovation used to mean developing a new film formulation, whereas today it means comprehensive packaging ideas,’ said Wagner. ‘Brand owners need smart solutions that are suitable for global use, convenient, economical, and that differentiate them from competitors. We aspire to give each of our customers precisely the solution that their situation calls for.’

Treofan has now created a new organization to bundle its customer-orientated product development expertise, headed up by Dr Marco Holst and Dr Yvonne Düpre.