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Retal Baltic Films increases production capacity
Retal Baltic Films which produces food-grade APET film and HDPE bottle caps at the Klaipėda FEZ, produced 16 percent more production in the first half of this year despite the fluctuations in demand caused by the pandemic and predicts a positive result for the entire year of 2020.
Viktorija Grižienė, the general manager at Retal Baltic Films, comments that the latest developments in the global business environment haven’t changed the company’s strategic or investment plans, and the result for the first half of this year is positive.
“Last year, we launched one new line of films and bottlecaps and so, this year we see these investments begin working – production capacities are on the rise, and financial results are positive, including profitability. This year, we are modernising one of our older film lines, and over the course of this year, we plan a 35 percent increase in film production capacities, albeit that due to global circumstances, bottlecap capacities might remain at the levels of 2019,” Grižienė says.
According to Grižienė, during the pandemic, there has been a notable rise in the food-film segment, but the market retains much uncertainty and fluctuations particularly in the bottlecap segment, with consumers choosing larger containers, and tourism weakening. On the other hand, having diverted some of its materials to the production of protective face shields during the pandemic, currently, Retal Baltic Films already has sizeable international commercial contracts in this field.
This year, Retal Baltic Films plans to conclude the 4.5 million-euro administrative, warehousing and laboratory building development project that launched last year, whereby the company is tying its further ambitions and development of its product portfolio with namely the laboratory’s operation. The company also plans to increase the scale of its educational activities.
“The pandemic has reminded consumers of the advantages of plastic packaging, but we are faithful to our commitments in sustainability. For some time now, we have had the capacity to produce all our production out of 100 percent recycled PET, and part of our clients make use of it. Nevertheless, in pursuing the goals of circular plastic economy, responsible consumer behaviour and state action are gaining ever more importance. Suitable sorting, collection and recycling of plastic helps to not only reduce environmental pollution, but also offers producers more sustainable and appealing raw materials,” Grižienė states.
Based on audited data, in 2019 Retal Baltic Films reached a 45.7 million-euro turnover, which was a reduction of 4.7 per cent compared to the previous year. The company’s profit remained identical to its results in 2018 and reached 1.78 million euros. The production produced by the company also hardly changed over the past year and reached 22.9 thousand tonnes.
In August, Retal Baltic Films changed its legal name from Retal Baltic. This change reflects the continuous business expansion, specialisation and reinforcement of company’s both fast-developing product areas: caps & closures and PET films. Now that Retal Baltic Films’ caps & closures and films businesses represent two independent profit centres, each with their own development strategies, this change in name reflects company’s focus going forward.