Spanish PET producer La Seda de Barcelona (LSB) has shelved plans to grow its APPE plastic packaging division due to a failure to raise enough capital for the expansion.
The capital increase aimed to raise 40 million euros ($48 million) to finance the project for the growth of APPE and thus consolidate its international leadership. However, the total share subscription applications received were only about 12.3 million euros ($15 million). LSB said the company is looking into alternative sources of funding.
"The board of directors regrets that the capital increase has not been successfully concluded, declaring that the actual European economic conditions have had a negative effect," the company stated.