Astrapak to sell underperforming Hilfort Plastics
JSE-listed packaging firm Astrapak has entered into an agreement to sell its Cape Town-based Hilfort Plastics business to polyethylene terephthalate (PET) preform and plastic bottle manufacturer Boxmore Plastics.
Astrapak stated that Hilfort, which manufactures and sells 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.
This transaction was expected to enhance the packaging company’s financial performance.
Further, it would also ensure continuity of supply to the Western Cape customer base and would allow Boxmore to consolidate this business into its existing Western Cape operation, thereby, enhancing and securing its business’s scale and sustainability.
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