Model Group achieved consolidated sales of CHF 700 million ($621 million)

Mar 27, 2009. /Lesprom Network/. Packaging specialists Model Group achieved consolidated sales of CHF 700 million ($621 million), maintaining the previous year's level. Had exchange rates remained constant and factoring out changes in the scope of consolidation, sales would have decreased by 2.7%, as the company informed Lesprom Network. As a result of higher value added, Group headcount rose from 2,861 to 2,924. Amounting to CHF 122 million ($108 million), investments were channeled primarily into expansion projects at existing and new sites. In its principal markets of Switzerland, Germany, France, Austria, the Czech Republic, Poland, Slovakia and Croatia, Model Group sold a total of 563 million square metres (-6.6%) of corrugated board packaging and 21,704 tonnes (-19%) of cardboard packaging. 30% of Group sales were posted in Switzerland, as in the previous year. Value added higher and range of services expanded Thanks to the strategy-driven growth in value added created, in particular by increased positioning of products at points of sale, sales revenues were maintained on lower volumes. To be seen as part of our efforts to expand our package of services, co-packing activities were also encouraging. Model Group is adopting a cautious outlook for 2009. The start to the new year reflects the economic slowdown in western and central Europe. In spite of the global economic slump, investments of over CHF 100 million ($89 million) are planned. The two largest single investments are the basic retrofit of the paper machine at the new Aarepapier AG's Niedergösgen site in Canton Solothurn and the construction of a new plant for Model Kramp GmbH in Hanau.