Friday, July 25th, 2014

On July 22nd, 2014 COVERIS and ITC completed the sale of COVERIS´s Spanish injection molding business including it´s factory located in Sopelana/Bilbao (Spain) to ITC Packaging Group, a Spanish provider of rigid packaging solutions located in Ibi/Alicante (Spain). The divested business has a turnover of approximately €8,5 million and employs 48 people.

The management of COVERIS is pleased, that this sale process has resulted in sucha positive outcome for the business. We believe that ITC, whose Spanish operations have extensive injection molding experience, will be a good and supportive new owner of the Sopelana factory. During the sale process both parties ensured that the transaction didnot cause any disruption to the business which will continue as normal under new ownership. The divestment of the Sopelana factory is another step in the development of COVERIS Rigid´s European footprint.

ITC Packaging Group stated, that with this acquisition the company completes it´s stratregic plan to expand business in Europe. ITC Packaging Group will provide with this acquisition a very ambitious growth plan for the incoming years. With more than 20 years of experience in rigid packaging, ITC was focusing its business from the unique existing production site for thin wall packaging in Alicante, South East Spain. Today, ITC employs 150 people with a group turnover of 33M€.

Coveris Rigid Spain, is today 100% part of ITC Packaging Group and will be the base of the future growth of the society, where the headquarters will remain in Alicante but Sopelana´s plant will provide double production capacity for the group in the future. Additionally, ITC Group will increase its range of customers with the dairy main producers in Spain and France.

Among the value of customers added to the Group, human value on Sopelana´s team has been also a key driver to complete this process. The final name of the new site has not been decided yet but it will be announced promptly.

ITC strategic business plan will focus future investments in Bilbao, enlarge the activity of the plant and optimize its resources. The 4.900 m2 of production facilities in Bilbao will enlarge to double the current existing facilities of ITC Group in Alicante.

It has to be highlighted to contribution of the whole ITC staff along these years that has worked with high efficiency and competitiveness showing a great commitment and sense of belonging to the Group.

Headquarters in Alicante will keep all the current activity and excellence as production plant for the future, and Bilbao´s facilities will support all North Spain customers and export sales in France, UK, Benelux and Italy among other countries where ITC group is present. It is expected to reach the target of 50M€ turnover in the next 2 years with a gradual staff increase. The second production site in the Group will allow contingency plans for key projects where the supply and good service is key demand, and the goal today is to achieve excellence in both production sites with high investment capacity.