Packaging papers performing well for Cham

- Company withdrawing from release liner market

 

- Expecting bigger business for packaging and tobacco products in the future

 

Cham Paper Group, a global supplier of coated specialty packaging papers, recorded solid performance in its consumer goods business area during the first half of 2012, as it completed its withdrawal from the industrial release segment and progressed with its transformation process.

 

Its consumer goods segment includes papers for flexible packaging and label printing, which are used in food, non-food, cigarette, beverages and pharmaceutical applications.

 

Sales volumes in this area experienced an increase of one percent despite a streamlining of the portfolio.

 

Cham said it has a “unique” family of packaging and tobacco papers, including the new BARnamic range. However, it said expects it will take several years before it sees demand large volumes of these papers.

 

Overall, Cham said it achieved net turnover of €129 million during the first half, down 9.4 percent on the first six months of 2011, although said this was in-line with its expectations.

 

An operating income of €2.25 million and net profit of €170,000 indicate its reorganization can be achieved above the break-even point in-line with objectives, Cham added.

 

The controlled exit from the industrial release liner market was completed as planned and the first of the two paper machines was taken out of service at the end of June.

 

For the rest of 2012, Cham said the restructuring process remains a challenge and will continue to place demands on the company for some time.

 

It added that it is on schedule to complete the realignment of its paper activities by the end of 2013, and anticipates a continued positive development of demand for core products, as well as recording a stable result for the whole financial year during the current period of transition.

 

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