Constantia Packaging (Vienna / Austria; www.constantiapackaging.com) and Arla Foods (Viby / Denmark; www.arla.com) are to dissolve their joint venture Danapak Flexibles (Slagelse / Denmark; www.danapakflex.com), which was established in 2002. The company manufactures packaging materials for the dairy, food and pharmaceutical segments. Negotiations on revising the jv’s shareholding structure began almost two years ago, as its earnings situation was thought to be unsatisfactory (see Plasteurope.com of 21.05.2007). Danapak's products include laminate packaging, transparent and metallised film for wrapping cheese and butter and soup bags. Approval of the transaction is awaited from the companies’ supervisory boards and antitrust authorities.

Constantia, which owned 60% of the shares in the jv, will retain only the Corona Packaging plant at the Danish site of Ishoj, where 30 people are employed. It last posted annual sales of around EUR 18m. Danapak will fully take over the main Slagelse site as well as production in Horsens (both in Denmark). The two plants, with a total of 270 employees, recorded sales in 2008 of around EUR 60m. The Danapak plant in Dundee / Scotland with a workforce of 150 and annual sales of EUR 14.7m, was sold in May 2008.

According to provisional figures, Constantia Packaging posted sales in 2008 of EUR 2.08 bn (EUR 1.57 bn in 2007), 48% of which was in the flexible packaging segment. EBIT was EUR 176m (EUR 150m). Further details will be announced with the company’s annual results on 2 April 2009.