Essel Propack will set up manufacturing operations in Poland under Arista Tubes brand, which is a leading manufacturer of plastic tubes in the UK and Europe. The plant will be set up at a cost of $23 million, which will be funded through operating leases and debt.
This plant will be the company's 25th facility. It has units spread over 15 countries. The new unit, which will become operational in March 2007, will cater to the cosmetics and toiletries industry of Europe.
Ashok Goel, vice-chairman and managing director, Essel Propack, said, "Our strategic intent is to focus our energies on Europe for enhanced growth and plastic tubes is the path we have chosen for inducing this."
Jeremy Paul, global head, who will be heading the implementation of the project, said, "Europe is the largest market for plastic tubes globally. And Poland is the largest market in Eastern Europe exhibiting faster growth rate than the rest of Europe. Hence, Poland is the ideal location for tapping the potential of Europe."
The plant in Poland is the company's fourth new venture during the last two years. This move is part of the company's vision to establish itself as a leading player in plastic tubes across all geographies by 2010 with 20 per cent market share.
