Envelope and packaging manufacturer Bong said in an interim report that its merger with Hamelin is progressing as planned although demand in the European envelope market remained relatively weak.
“The work to realise synergies is ongoing,” says Bong President and CEO Anders Davidsson. “Although first quarter earnings were pressured by continued price increases on uncoated fine paper and other raw materials, ProPac delivered healthy growth and cash flow was good.
The volume trend for envelopes fell somewhat short of expectations during the quarter, which constrained earnings. In the company’s assessment, the West European envelope market has declined by a few percent compared to the same period in 2010. Vigorous development continued in the Russian and East European markets, which grew by an estimated 10 percent compared to 2010.