Britton Gelplas is to invest £500 000 in plant and machinery at its Hertfordshire based production site. This comes on the back of sustained sales growth. Packing margins continue to be depressed and will likely be further squeezed as a result of rising raw material prices.
Commenting on the plans, business unit director Charlotte King said: “Packaging has seen increased pressure on prices, which has meant that development plans across the industry have been shelved.
“After a period of quite extensive restructuring, we have been able to ensure that our site at Letchworth remains a highly efficient production facility.
“We have also attempted to further improve upon our product quality and responsiveness. This strategy has helped us return a small profit in 2002. Rather than being complacent we have decided to enhance our competitive position and will be investing in new equipment over the next 12 months.”
The new equipment will include the purchase of a three-layer IBC coextrusion line. Other investment will relate to upgrades to provide HD film capability as well as new conversion equipment.