Difficult trading conditions and a strong Dutch Guilder resulted in turnover for Royal Packaging Industries Van Leer (NL-1180 AA Amstelveen) barely unchanged for 1995 at NLG 3,978m. Profit before tax was down 2.7% to NLG 200.6m. Business was affected by the rapid rise in the cost of raw materials during the first half of the year and then a fall off in sales volumes during the second half once margins started to improve.Van Leer's results came as it announced its purchase of Plastona Ltd (40 Wakefield Street, GB-Leeds LS10 1DT) from John Waddingtons PLC for £ 4.5m. The acquisition is in line with Van Leer's strategy to expand its consumer packaging business.

Waddingtons took the decision to sell its loss making subsidiary so that it could concentrate on other core activities which include injection moulded pharmaceutical packaging. Plastona manufactures thermoformed pots and tubs for yellow fats. It uses approximately 4,000 t of material a year, mainly PP and PS as well as small quantities of A-PET and C-PET. Its losses for the year to 31st March 1995 amounted to £ 2.3m.

Whilst Van Leer has long been well known as a supplier of industrial packaging, particularly drums, since the early 1990s it has been following a strategy of expanding its business in consumer packaging markets. The company significantly enhanced its position with the purchase of the 4P Group of companies from Unilever in 1992. This included 4P Rube Göttingen (D-37077 Göttingen), a leading supplier to the German yellow fats market. They subsequently set up a greenfield site in Poland to meet the needs of one of their international customers for quality packaging for margarine and yellow fats. Given its highly international outlook in its drums business (Van Leer operate in 42 countries around the world), further acquisitions or joint venture arrangements are likely.

READER SERVICE: Annual Report 1995 Van Leer (English): PIE-No. 39269.