The plant will make plastic packaging for the Serbian market

Hungarian injection moulder Pannonplast is setting up a company in Serbia to manufacture plastic packaging. Pannonplast will invest Hungarian forint 355m (€1.3m) in the company, in which it will hold a 66% stake. It pointed out that local production will avoid Serbian import duties of 20%.

The facility is expected to start production in the first quarter of 2007. In its first year, the Serbian subsidiary is expected to have sales revenues of HUF 400m, with this figure doubling within the following three years. EBITDA in the first year of operations is forecast at HUF 70m, and HUF 140-150m is possible within the next three years, said Pannonplast.