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EQS-News News vom 25.06.2019

Eliopack will temporarily shift production capacity to other Aluflexpack facilities due to fire incident

EQS Group-News: Dynamics Group AG / Key word(s): Miscellaneous

25.06.2019 / 21:18

Press release

Reinach AG, 25 June 2019

Eliopack will temporarily shift production capacity to other Aluflexpack facilities due to fire incident

Aluflexpack AG ("Aluflexpack" or the "company") informs that on the late afternoon of 24 June 2019, a fire occurred in the ink department at the manufacturing facility of its subsidiary Eliopack in the industrial zone of Ajeux in La Ferté-Bernard, France, one of Aluflexpack's seven production plants. The fire is reported to have started at about 5.40 p.m. (CEST) and was extinguished at about 10:30 p.m. (CEST). No human injuries or casualties have occurred.

Aluflexpack is currently examining the scope of the damage caused. Based on a preliminary assessment, management believe that only the facility's ink department and some electrical infrastructure elements have been affected. The company currently believes that, on the basis of the immediately apparent damage, the necessary repairs can be completed in a period ranging from three to five weeks. Several other departments are expected to be able to continue normal operations within a week.

Net sales of Eliopack accounted for approximately 12.4% of Aluflexpack's total consolidated net sales for the financial year ended 31 December 2018 (on a pro forma basis, showing the effects of the acquisition of Arimpeks in Turkey, as if this acquisition had been completed as of 1 January 2018). On that basis, and based on management's preliminary assessment of the damages, production plans and taking alternative routing within the Aluflexpack group into account, management currently believes that this incident will not result in material loss of revenues. The company expects that the damage, including potential cost associated with business interruption will be covered by the existing insurance policies "The most important thing is that nobody got hurt", says Igor Arbanas, CEO of Aluflexpack. "I would like to wholeheartedly thank our team and the local fire department for their swift and professional reaction which prevented bigger damage. Next week, we will restart operations in several departments and expect the site to be fully operational in 3 to 5 weeks. Based on the first evaluations and discussions with our customers, we believe our ability to fulfill customers' orders won't be materially affected. I would also like to thank our partners who immediately provided help in fixing the damage and helping us to get back to normal business as soon as possible."

During the production stoppage required to carry out repairs, the company will endeavour to shift production to other facilities. Aluflexpack maintains a certain overlap in production capabilities of its production facilities primarily for contingency planning. Management currently assumes this overlap will enable the company to shift production to other facilities to a very large degree. As a result, management currently does not believe that the company's ability to fulfil customer orders will be materially interrupted.

Together with the local fire authorities, Aluflexpack is currently investigating the cause of the fire. The company is also investigating whether the stability of its infrastructure and the structure of the affected area at the manufacturing facility in La Ferté-Bernard have been affected by the fire.

Media contacts
Dynamics Group AG
Andreas Durisch / Thomas Balmer /
+41 43 268 32 32

About Eliopack:

Eliopack is situated in the industrial zone of Ajeux in La Ferté-Bernard, France. Eliopack manufactures flexible packaging materials mainly for the pharmaceutical and human food end market, where it focusses on converting, printing, slitting and die cutting. As of the financial year ended December 31, 2018, Eliopack employed 80 employees and generated net sales of EUR 23,782 thousands, primarily in France but also in some other European markets. The company was acquired by AFP Group GmbH, a wholly-owned subsidiary of Aluflexpack, in July 2015. AFP Group GmbH holds 80% of the interest in Eliopack.

About Aluflexpack AG:

Aluflexpack AG (Aluflexpack) is a 100 % subsidiary of Montana Tech Components AG. Aluflexpack produces flexible packaging solutions mainly for end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and dairy. Well-established insights, service flexibility and innovative strength are what underpin long-term customer relationships; both with locally operating companies and large international corporations. Aluflexpack, headquartered in Reinach (AG), Switzerland, has production facilities in Switzerland, France and Turkey and four production facilities in Croatia. The number of employees as of March 31, 2019 was approximately 1,150.



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