May 20, 2010. /Lesprom Network/. VPK Packaging Group's consolidated turnover in the 1Q was up 10.6% on the same period last year to a level of Euro 142,3 million. All segments had an increase in volumes compared to the same period last year, company said in a statement received by Lesprom Network. In the paper segment, the volume of sales rose by 48.6%. This growth is mainly due to price increases, which in turn are the result of the strong increase of the recycled paper price. Turnover in the corrugated board segment rose by 8.7%. The increase in turnover here was to a large degree attributable to the growth in volume. The charge through of the increased paperprice is expected to have its effect from the next quarter on. The specialities segment recorded a growth in turnover of 5.8% , which was mainly due to the volume increase compared to the first quarter of last year. The 1Q 2010 was mainly characterised by the sharp price increase in the basic raw material, recycled paper. Whereas this had still been at a level of Euro 75 per ton at the end of December 2009, the price had risen to Euro 150 per ton at the end of March. One has to go as far back as 2002, a period of strong economic growth, to find the price at such a high level. The reasons for this sharp rise are to be found in the gradual recovery of demand in Europe on the one hand, and the significant export demand from China, on the other. Whilst containerboard prices, including the paperqualities bought by VPK Packaging Group NV, follow these increases quite quickly, it takes a few months before these increased paper prices are charged through in the packaging sales price. The gross margin in the first quarter was therefore lower than in comparison with the first quarter of last year. VPK Packaging Group N.V. is a vertically integrated Belgian packaging group comprising 26 companies in 12 European countries.