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New Danish Investment in the Czech Republic

On Monday the 3rd of March, 2008, the official opening of the new factory of the Danish company Faerch Plast took place in the industrial zone of Liberec South.

Faerch Plast1

On Monday the 3 rd of March, 2008, the official opening of the new factory of the Danish company Faerch Plast took place in the industrial zone of Liberec South. The factory represents an investment of € 26.8 million (approx. CZK 670 million).

The prominent Danish packaging manufacturer was originally established in 1869 as a tobacco company, while the production of plastic packaging for foods commenced in 1969, 100 years later. Production facilities were raised in the town of Holstebro, and soon Faerch Plast became market leader in Denmark. Last year the company supplied packaging to the value of DKK 905 million, or nearly CZK 3 billion.

Faerch Plast2

However, the demand increased, and the present 46,000 sqm. factory in Holstebro became insufficient. It was decided to extend the production capacity by building a new production plant in Central Europe. Having evaluated options in southern Poland, the Czech Republic, and Hungary, the solution available in Liberec, Northern Bohemia, was preferred.

According to a statement by Mr. Jens Bornstein, CEO of Faerch Plast, the choice was made with due consideration to the strategic location of Liberec in terms of supplying the markets of Slovakia, Poland, and, of course, the Czech Republic. Furthermore, the proximity of markets like Germany and Southern Europe, where the company already has a wide network of distributors, plays an important role. In the longer term also Russia is a potential market for the production in Liberec. Finally, the co-operation with the Technical University of Liberec was a decisive factor, too.

Faerch Plast3

The vast investment began materialising, when the foundation stone was laid on May the 29 th, 2007. The factory was planned to occupy 6,000 sqm, but already during the construction it was decided to expand the facilities to 13,500 sqm. By the end of January, 2008, after no more than eight months, the complete factory was handed over to the factory management.

Faerch Plast4

During the official inauguration ceremony it was particularly mentioned that this important enterprise had been effectuated in a smooth and efficient co-operation with the Czech authorities and local community.

Faerch Plast5