Packaging partnership formed

Related tags Customer service

Norwegian packaging firm Elopak is confident that the recently
completed partnership agreement with Dutch company Variopak will
reinforce the group's position within the European liquid food
packaging market. This sector has seen a large degree of
consolidation in recent years.

Elopak is currently the European market leader in the chilled dairy and premium juice packaging sector. The company is engaged in three core segments: dairy, juice and beverages, and new liquid food products. The company provides a number of packaging solutions, including both the Pure-Pak carton and plastic bottle systems.

Elopak believes that the agreement with Variopak will enable the business to further consolidate its leading market position. Variopak entered the gable top carton market 25 years ago, and has gone on to become the third largest supplier in this market in Europe.

"This agreement is another important milestone in Elopak's focused growth strategy,"​ said Elopak chief executive Bjørn Flatgård. "We are developing strongly with focus on organic growth with core customers, increased attention towards innovation, as well as pursuing acquisitions to consolidate our leading position.

"The agreement, which further strengthens our gable top business, is an integral part of Elopak's strategic plan and a key milestone for generating synergies and further profitable growth. Furthermore, Variopak will become an important partner for Elopak, and we will co-operate in the development of new packaging business. The co-operation secures the highest level of service to our customers, and creates a foundation for improved partnerships in each of our core segments."

Variopak's owner Willem Korstanje said: "The liquid packaging market requires strong market players who are ready to take on future challenges. The co-operation agreement will reinforce both Variopak and Elopak, to the benefit of the market."

The partnership with Variopak follows the recent announcement that Elopak is to build a state-of-the-art production plant in China, as part of its overall strategy to increase the group's global presence. The company, which has been present in the country since 2000 with a representative office in Beijing, believes it has established a solid customer base upon which it can build.

"China is currently experiencing substantial growth in the liquid food market and a local presence is mandatory if we are to be part of this opportunity,"​said Flatgård. "Elopak is developing strongly with a focus on organic growth within our core segments and increased attention towards innovation, and with this new joint venture we will be able to bring state of the art technology and solutions into the Chinese market."

Flatgård believes that the establishment of a subsidiary in China is crucial if the company is to respond more efficiently to customer requests and significantly improve service and delivery times to the Chinese market.

Elopak​ claims to be one of the world's leading suppliers of packaging systems for liquid food products. It develops, manufactures and sells complete systems for packaging of non-carbonated liquid food products. In 2002, the company, employing 2,000 staff excluding joint ventures, had a turnover of approximately €487 million.

As a full systems supplier with organisations and associates in more than 40 countries and customers in over 100, the Elopak Group is seeking to expand its international reach by bringing product technology to new markets.

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