Press Release, 23.03.2017
Vetropack Austria GmbH concludes difficult 2016 financial year
Pöchlarn, 21 March 2017 – 2016 proved to be a very challenging year for Vetropack Austria. Weak market dynamics and erratic weather conditions led to a decline in sales and in net income from products and services.
Vetropack Austria, a Vetropack Group company and Austria’s leading manufacturer of packaging glass, generated net income of €172 million in the 2016 financial year. Compared with the previous year, this represented a decline of 5%. Sales fell to 1.539 billion units, which was also 5% below the record figure for 2015.
Downward trend in domestic and export Business
The market dynamics necessary for growth was lacking in nearly all product areas. Moreover, a May frost had a negative effect on the Austrian harvest of wine grapes, and poor weather at the start of the summer resulted in lower demand in other beverage areas. A furnace repair reduced available production capacities. In addition, a power loss caused temporary production outages at the Kremsmünster plant. All of these factors had a negative effect on domestic business and export markets.
Significant investments were made at the Pöchlarn and Kremsmünster glass plants in 2016. They targeted the construction of a new flint-glass furnace at the Pöchlarn plant and the establishment of a training centre for the entire Vetropack Group. Furthermore, production equipment continued to be modernised, and testing facilities were further improved. Vetropack Austria also plans to make investments in the two Austrian plants in 2017 as well. They will focus on preparatory measures for the construction of a new flint-glass furnace in Kremsmünster and modernisation of the related infrastructure. These investments provide long-term job security for the 686 employees of Vetropack Austria.
Vetropack Group: Net sales up 8%
Vetropack Group generated net sales from goods and services of CHF 601.7 million in the 2016 fiscal year, 8% more than in 2015. Unit sales rose by 4.9% to 4.87 billion units of glass packaging. These increases are attributable to the Group's newest subsidiary Vetropack Italia S.r.l., which was consolidated for a full year for the first time in 2016. Vetropack Group includes subsidiaries in Switzerland, Austria, the Czech Republic, Slovakia, Croatia, Ukraine and Italy.
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