Mar 07, 2007. /Lesprom Network/. Model Group consolidated sales were up 9.5% to CHF 597 million ($487.8 million) on strong volume growth in 2006. Adjusted for currency translation effects, sales increased by 6.5%. Amounting to CHF 52 million ($42.5 million), investments were mainly channelled into expanding production capacity across the entire group. In its principal markets of Switzerland, Germany, France, Austria, the Czech Republic, Poland, Slovakia and Croatia, Model Group sold a total of 588 million square meters of corrugated board packaging (up 7.5%) and 22 754 tonnes of cardboard packaging (up 5.9%). Although growth again stemmed largely from markets outside Switzerland in the year under review, Swiss operations nonetheless reported an increase in volumes. Total Swiss corrugated cardboard consumption is growing approximately in line with GDP. 32% of group sales were posted in Switzerland compared to 33% in 2005. The dramatic rise in paper prices caused a substantial loss in margins at corrugated cardboard plants. The price increases pushed through by the entire paper industry in the second half of 2006 could not be passed on to packaging prices to a satisfactory degree. Further rises in raw material prices have already been implemented or announced in the current year, which in turn is bound to push up packaging prices. Model Group is cautiously optimistic for the 2007 business year. The start to the new year reflects the still sound economic outlook for Switzerland and Western Europe and continued solid growth in Central Europe. The largest single project among the planned investments of some CHF 80 million ($65.4 million) is the major overhaul of the corrugated board plant at Czosnow near Warsaw. Camares AG, which is owned by Martin, Daniel and Elisabeth Model and holds 99.9% of Model Holding AG, is to merge with Model Holding AG in the current year to form a single company. Third-party shareholders will receive a cash settlement of CHF 950 ($776.3) per bearer share at CHF 25 ($20.4) par. The difference between the cash settlement paid and the par value of the share represents taxable income or revenue in a number of cantons and at the direct federal tax level. Accordingly, Camares AG is tendering a public offer to all holders of bearer shares inviting them to sell their shares to Camares AG at a price of CHF 950 ($776.3) net in the period from 5-23 March 2007 prior to the planned merger. A sale of this kind by shareholders who are not required to keep books of account and who are resident in Switzerland normally qualifies as a tax-free capital gain. The Model Group - under the parent organization Model Holding AG - encompasses 13 production plants throughout Europe and is the leading supplier of corrugated board and carton packaging. The Model Holding AG headquarters are situated in Weinfelden, Switzerland. Around 2800 employees are employed throughout the whole group.