Packaging manufacturer Færch Plast (Holstebro / Denmark; www.faerchplast.com) has reported a net loss of DKK 8m (EUR 1.07m) for 2008, compared with a net profit of DKK 62m in 2007. Sales in 2008 were DKK 927m, up from DKK 914m in 2007. Niels Hermansen, Færch Plast chairman, said that a requirement for a different managerial focus in the current economic climate had led to CEO Jens Bornstein retiring from his position.

Hermansen blamed falls in the company’s most important markets, including the UK, exchange rate changes and higher than expected expenditure on a new IT system for the lack of profit growth. This has been compounded by difficulties in establishing Færch Plast’s new facility in the Czech Republic, he added.

The company, which has 577 employees, holds a leading position in Europe in plastic trays for the food industry and has invested significantly in extending and strengthening production facilities over recent years. Hermansen said that this had prepared the company to deal with difficult market conditions and that it expects to return to satisfactory earnings levels.

Hermansen, in co-operation with the board, will be responsible for the day-to-day management of the company until a new CEO is appointed.