On 3 March Faerch Plast inaugurated a totally new production factory in Liberec, Czech Republic. The investment in a factory of 13,500 square metres amounts to DDK 200m, and with this investment the factory in Holstebro, Denmark, is taking a step closer to the great markets in Central and Eastern Europe.

The decision to locate a new factory in the Czech Republic is based on the great sales potential of the surrounding countries. Countries such as Poland, Slovakia and of course the Czech Republic all offer high-growth and from a market penetration perspective are very attractive to Faerch Plast. In addition, there are logistical advantages with distance to markets such as Germany and Southern Europe being significantly reduced.

Liberec Was The Choice

Prior to the decision on placing the factory in Liberec, many different locations were considered. “The site in Holstebro cannot be extended further, and we had to look for other premises,” explains Jens Bornstein, managing director of Faerch Plast. “Liberec and its surroundings has for many years been known for good, stable and well-trained employees, and the area already has a history of plastic production. Liberec was a natural and easy choice to make” explains Jens Bornstein.

Production in (PP) Polypropylene Packaging

A large market for Polypropylene (PP) packaging already exists in Southern Europe and Germany and it was a logical choice for the Liberec factory to exclusively produce plastic packaging in PP. ”Six thermo forming machines have been installed, and an extruder will arrive in April making the site capable of extruding the PP sheet it needs,” says Henning Sandal, Technical Director of Faerch Plast. ”Longer-term, other materials will be produced but initially production with be exclusively in PP,” continues Henning Sandal.

The factory in Liberec already has more than 40 employees, and this number is expected to rise to more than 75 employees during the year. An good example of overseas investment creating jobs in the Czech Republic.

“Færch Plast of Holstebro, Denmark was established in 1969. Since then the company has earned a good reputation and secured a strong market position in the development and manufacture of high quality packaging for direct food contact. Extrusion and thermoforming continue seven days a week all year round. In addition to our production facilities in Holstebro and the Czech Republic, we have sales offices in Denmark, France, and a subsidiary in the UK Harrison Europac.