Unipap Technology Investments and EU Expansion Plans Announced

Byst, Czech Republic, 04 September 2006 -- /PRNewswire/ -- Unipap, joint-stock company, the leading Czech producer of industrial packaging and one of the Czech largest paper processors, have commissioned a unique technology for production of atypical packages. No other packaging manufacturer in Central Europe currently has a similar technology. The total cost of acquisition of this new technology exceeded EUR 5 million.

At the end of the year, the company will also start construction of its own research and development center, the cost of which is supposed to be EUR 2.2 million. The new research and development center will employ about 50 qualified university graduates, who will design new packages and cushioning from both paper and wood. This investment will allow the company to speed up the production launch of new packages, based on the actual needs of its customers.

"Foreign companies are very demanding, but they do not know what to expect from Czech packaging producers. Their general requirement are large runs of packages and just-in-time delivery. Therefore, these investments, our long history, and proven track record will allow us to match their requirements and give us a possibility to supply our products to their manufacturing facilities not only in the Czech Republic, but also in EU member countries, for which we have all necessary certificates," commented Pavel Rozman, sales director of Unipap.

To support its export activities, the company built a branch in Pilsen (West Bohemia), which serves customers from Germany, Austria, and other EU member countries.

Unipap a.s. has its main production facility in Byst (Kralovehradecky region), where it has built a new production and logistic center in an industrial zone. Last year, the company processed 17,000 tons of raw material and its revenues exceeded EUR 22 million. The company holds certificates ISO 9001:2001, ISO 14001:2004, and ISO 18001:1999.

The company currently employees 140 people in its main production facility and branches. After the completion of all planned investments, the number of employees should grow to 250 people during the next year.