Dec 13, 2005. /Lesprom Network/. Austria's Constantia Packaging said on Monday it has agreed to buy a 47.6% stake in Bulgarian cardboard maker Trakia Papir and plans to acquire a majority stake in the firm in the medium term as part of its expansion into Southeastern Europe. The acquisition will be made through Constantia's 60%-owned subsidiary Duropack, the packaging maker said in a statement sent to the Vienna Stock Exchange where it is listed. "For Duropack, the acquisition of Trakia Papir is an important and logical step in its expansion strategy into Southeastern Europe," the statement read. "It has 70% market share in Bulgaria and offers expansion potential through exports to Macedonia, southern Romania and northern Greece." Trakia Papir, which is listed on the Bulgarian Stock Exchange, has a market capitalization of BGN 77.4 million ($46.8 million). Trakia Papir has a staff of around 680 and produces some 55 000 metric tonnes of corrugated board base paper and 135 000 square meters of corrugated board annually. The company had a net profit of BGN 1.8 million ($1.1 million) for the first nine months, up from BGN 550 000 ($335 300) for the same period last year. Its sales for January to September rose 12% year-on-year to BGN 44.4 million ($27.1 million). Constantia Packaging Group, with around 5 000 employees worldwide, had Euro 945 million in 2004 sales, down 3% year-on-year. Earnings before interest and taxes (EBIT) rose to Euro 75.6 million in 2004 from Euro 61.6 million in 2003. Constantia's customers include companies in the food and beverage, pharmaceuticals and automotive industries. Duropack, in which Jefferson Smurfit Group holds 40%, has a staff of nearly 2 000 and an annual turnover of some Euro 235 million. It has 8 plants for production of paper and corrugated board, including two in southeast Europe - one in Brestancia, Slovenia and one in Krusevac, Serbia and Montenegro.