German BOPP films manufacturer Treofan (Raunheim; www.treofan.com) is facing considerable upheaval. Owner Management & Capitali (M&C, Milan / Italy; www.mecinv.com) apparently plans to divest its Americas business with the two management entities Treofan America and Trespaphan Mexico Holdings. The proceeds will be used to reorganise its European units and to "significantly reduce the company's debt." M&C is responding to disappointing figures in the first half of 2017, especially in Europe.

Upon Plasteurope.com's enquiry, information on possible consequences for the European sites was not available. However, the supervisory board has already approved the new strategy. The board intends to introduce details of the plans in spring 2018. Ernst & Young Corporate Finance (Canada) has been appointed as financial advisor for the planned transaction.

Concurrent with M&C president and CEO Giovanni Canetta Roeder's presentation of this new strategy, Treofan CEO Walter Bickel has been appointed to M&C's management board. He will be responsible for internal control and risk management. Among other things, one hopes for more effective communication between the holding company and Treofan.

The profitability of Treofan's European activities is apparently not the best, considering the group's EBITDA in the first half of 2017 fell from EUR 19m to EUR 13.1m. Treofan America, on the other hand, posted EBITDA of USD 24m (just over EUR 20m) in the first nine months of the year. By contrast, Treofan's North and South American activities – which account for around one-third of its global sales – have grown significantly, not least due to extensive investments over the past five years. Most recently, the company spent EUR 40m to expand its plant in Zacapu / Mexico (see Plasteurope.com of 27.06.2017).

Restructuring is to be financed, among other things, with an increase in capital, which is expected to be completed by mid-2018. In future, Treofan intends to concentrate more heavily on customer-specific film specialities and high-performance films in Europe. With the sale of its Americas activities, films capacity is shrinking from 180,000 t/y to around 120,000 t/y at its three plants in Neunkirchen / Germany, Battipaglia and Terni (both in Italy).