Treofan Group, one of the world's leading makers of high performance BOPP films, has completed the sale of its production site and assets in Lamezia, Italy, to local investors, booking a cash effect of around EUR 2m.
"With this sale, we have achieved a clean break from our legacy CPP business in Italy, and have come out ahead financially, said Carlo Ranucci, CEO of the Treofan Group. "The sale allows us to concentrate on our core BOPP activities and to continue to profitably grow our business.
The plant, located in Calabria, Italy, produced CPP (cast polypropylene), and was thus not in line with Treofan's focus on high performance BOPP (biaxially oriented polypropylene), labels and specialty packaging, technical films and tobacco films.
The decision to sell the Lamezia plant was originally taken in August 2008. In mid-December this year, Treofan signed sale agreements with two local investors, who acquired the plant machinery and the real estate respectively. Some of the employees previously employed by Treofan at the site have already found new jobs, while the remaining employees will benefit from a social plan agreed with all stakeholders.
After taking into account the costs of the social plan, as well as transaction and maintenance costs, the sale allows Treofan to book cash of about EUR 2m. No other financial details were released.