The construction of a new plant has been completed. Polypackits subsidiary Sarantis Group in Poland, an investment that allows the company to process more orders and reportedly increase its maximum production capacity by 30%-50%. The new division, which represents an investment of about 23 million euros, produces both waste bags for the group’s products – about 1/3 – and own-brand waste bags, which the company sells in supermarkets. The new plant, located next to the previous one, has an area of ​​24,000 sq.m. and includes advanced mechanical equipment and a modernized research and development laboratory, and introduces automated production processes to produce more environmentally friendly products. The new production areas are automated and equipped with robotic systems and autonomous forklifts, have an improved central feeder and a large-scale secondary grain production line. New investments started about 2 years ago and were carried out with EU co-financing. through the European Regional Development Fund. Polipak’s 2021 sales were €22.5 million, with a 30%-50% increase in production growth expected to increase the company’s sales by a corresponding percentage. Polipak’s products, i.e. garbage bags, are supplied to at least 20 countries in which the group is present, including the German market.

The construction of the new unit is completed – an investment of 23 million euros.

Meanwhile, the completion of the investment paves the way for the future development of Polipak’s synergy with Polish home goods company Stella Pack. This is a company that came under the control of the Sarantis group in 2022, and the related transaction is awaiting – possibly in early 2023 – the approval of the antitrust authorities. Stella Pack has a waste separation production line that produces its own recycled plastic to meet its production needs. Thus, according to the group’s sources, it is possible that in the future “Polypak” will be supplied with raw materials produced by the Polish “Stella Pak”.

As in the first half of the year, group sales rose and profitability declined in the nine months of 2022 due to higher energy and raw material costs. Thus, sales increased by 9.95% to 327.2 million from 297.6 million in the corresponding period of 2021, driven by growth in sales of consumer goods. Profitability, although lower than last year, shows an improvement compared to 6M 2022 due to the stabilization of raw material costs. Thus, EBITDA decreased by 8.32% to 35.5 million euros from 38.7 million euros in the 9th month of 2021, while EBIT decreased by 11.9%, amounting to 25.6 million euros from 29 million euros. in the 9th month of 2021.