Consistent with the overall strategy of geographically diversifying manufacturing operations, PE has put up a new film line in Europe with a capacity of 24,000 TPA in Dec 2005. This include an 8.7m film line with a captive cogeneration power plant of 4 MW capacity. Further we have also put a Metallizer with a capacity of 5000 TPA in March 2006. PE is now in the process of implementing a Chips plant at the existing location. The plant is located in the European Free Zone in Çorlu, Tekirdag shall have a total project cost of about USD 55 million. A Free Zone provides a conducive investment environment especially for import/export intensive operations as minimal controls apply on trade, currency and investment. 

With this location, we now have ready access to an existing large market in Western Europe where no new capacity has been added in the last 3-4 years notwithstanding a continued growth in the market. This market also imports significant quantities.

This location acts as a bridge between Asia and Europe and is also servicing the Middle-East, America, Russia/ CIS and Central and Eastern Europe markets, which though small currently, have a lot of potential given the stage of economic growth of these regions. Further, the countries around the Mediterranean rim are another possible destination for the output. Turkey has a Customs Union with EU, which facilitates duty free movement of goods between the two territories.

This project is a key element in the company’s plan to build a global footprint and associate with dominant customers in the converting and is industrial segments. Savings in delivery costs and likely better pricing would offset the higher operating costs of a manufacturing set up in Europe.