Astrapak finalises sale of PET business
After last month announcing that it would offload its underperforming Hilfort Plastics Cape Town business to polyethylene terephthalate (PET) preform and plastic bottle manufacturer Boxmore Plastics South Africa, packaging group Astrapak on Friday notified shareholders that all suspensive conditions to the transaction had been met, rendering the effective date of the transaction July 14.
Engineering News Online reported on June 19 that Hilfort, which manufactures PET rigid plastic containers and accompanying closures, had underperformed relative to Astrapak’s other rigid operations for some time, owing to factors relating to changing fundamentals in the PET market.
“The PET market remains highly competitive; the fundamentals continue changing rapidly; and, to remain sustainable, the single most important factor is operational scale.
“The trend of customers moving in-house to blow their own bottles, and consolidating filling facilities in terms of centres of excellence, continues to further reduce the scope of volume available to converters,” Astrapak explained, adding that these factors were more pronounced in the Western Cape where the industry was relatively small in relation to the Gauteng region.
The transaction was expected to enhance the packaging company’s financial performance.
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