AUSTRIA: FRANTSCHACH PLANNING ACQUISITIONS

Article Abstract:

According to chief executive Veit Sorger, Austria's biggest paper maker Frantschach is to conclude an acquisition of a packaging paper maker in Asia by the end of October 1999. The takeover is believed to take place either in South Korea or Malaysia. If the deal turns out to be successful, the Austrian group might make further acquisitions in Asia. In Israel, the due diligence procedure is being carried out for the acquisition of a majority stake in American Israeli Paper Mill (AIPM). The Israeli company produces 100,000 tpy of copy paper and has a capacity expansion potential of 50%. Recently Frantschach acquired a stake in Jordan Paper, expanding its world leadership in the field of industrial sacks. Frantschach, in which Mondi of South Africa holds a 50% stake, is planning no major acquisitions in eastern Europe. Mr Sorger does not, however, rule out takeovers of smaller of packaging makers there. Mr Sorger says that "with some luck" Frantschach will reach the 1998 profit of Sch 810mn in 1999. Turnover will be around Sch 19bn. Frantschach expects savings of about Sch 150mn annually from a restructuring of purchasing and logistics from year 2000. Electricity costs are to be cut by more than 50% through a deal with E & S (the power distribution joint venture of EVN and WienStrom) for the supply of electricity to the group's mills in Austria, Germany and the Netherlands. The total volume of the deal is believed to be about 120 GWh. E & S itself will supply only the Austrian mills.

South Korea, Israel, Austria, Acquisitions & mergers, Electric Utilities, Electric Power Generation, Transmission and Distribution, Foreign operations, New orders received, Woodpulp & Related Products, Pulp Mills, Strategic alliances, Use of materials & supplies, Malaysia, Jordan, Stationery, Uncoated Business Papers, Stationery, Tablet, and Related Product Manufacturing, Die-Cut Paper and Paperboard Office Supplies Manufacturing, Paper, Packaging & Converting Paper, Paper Mills, Coated and Laminated Packaging Paper and Plastics Film Manufacturing, Wood pulp industry, Paper industry, Business papers

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POLAND: FRANTSCHACH TAKES OVER PAPER SACK FIRM

Article Abstract:

Frantschach Swiecie, Polish subsidiary of the Austrian Frantschach group, has taken over the Polish paper sack producer Krapkowice. Frantschach will increase annual sales in central eastern Europe to 300mn paper sacks, of which the new subsidiary will account for 100mn sacks. With an annual output of 2bn paper sacks, Frantschach is the world's largest producer of industrial sacks. Further acquisitions are planned.

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AUSTRIA/E EUROPE: COFINEC OK FOR FRANTSCHACH

Article Abstract:

The supervisory board of Eastern Europe's biggest paper merchant Cofinec has recommended the shareholders to approve the takeover bid by Austrian Frantschach group. The Austrian group is offering US$ 15 per share.

Netherlands, Czech Republic, Hungary, Romania, COFINEC

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