Bong reports progress in synergies following its merger with Hamelin. However, the Packaging and envelope manufacturer says that the economic situation has hit margins in Europe leading it to implement efficiencey measures.
The integration process following the Hamelin merger and efforts to realise synergies have progressed as planned. Cashflow was robust as of first year and key savings measures will successively reduce costs in the company in 2012 and forward,” said Bong President and CEO AndersDavidsson. ”However, economic uncertainty in Europe, higher raw material prices and tough competition have put pressure on our margins. We are running several efficiency improvement projects to secure higher margins, long-term competitiveness and profitability.”
Important growth areas for Bong are the ProPac packaging concept and Russia. The Group has annual sales of approximately SEK 3.2 billion and about 2,300 employees in 15 countries.