Wolff Walsrode AG (D-29655 Walsrode, www.wolff-walsrode.de), which is part of the Bayer group, is spinning off its recently founded subsidiary, Covexx Films Walsrode ( www.covexx.de), to the Wipak Group ( www.wipak.com), which belongs to the Finnish Wihuri Group (FIN-00570 Helsinki; www.wihuri.fi). Covexx comprises the previous Wolff Walsrode business units “Combitherm” and “Finishing” with the user markets of consumer packaging, technology and medical. The company posted sales last year of EUR 108m with 531 employees. The sale is due to become effective at the beginning of June 2001 on condition that the cartel authorities give their approval. The two parties agreed to remain silent about the financial details.

The Wihuri Group has sales of EUR 448m in its packaging business and has production plants for high-grade packaging film in Finland, France and North America. The subsidiary company Wipak is divided up into the two segments “Food” and “Medical”. According to reports, Wipak intends to expand its production network with the Covexx site in Bomlitz in the German state of Lower Saxony. For Bayer, the transaction is a further step in its strategy to optimise its portfolio, divesting activities for which it does not see good development opportunities in its own organisation. For Wolff Walsrode, the sale of Covexx is an important move towards strengthening the Bomlitz site by partnerships, according to a press release.