Synthesis sells

The merger of the Sochaczew division of the Boryszew group with the Suwary industrial packaging company will follow the conversion of o/Sochaczew into a joint stock company by May. The deal is expected to be finalized by the end of 2007. Boryszew will be the majority owner of about 80 percent of the new company's capital.

At present, the firms operate in related industries - plastics and chemical products. Suwary is a producer of plastic containers and automotive-safety equipment for cars such as warning triangles, first-aid kits and reflective jackets. O/Sochaczew focuses mainly on the production of building materials, chemistry and glues, in addition to plastic and polystyrene containers and products for the automotive industry.

Both companies stand to benefit from the merger and anticipate an increase in efficiency. "We want to create a strong independent company that will function actively on the market," said Waldemar Zwierz, the managing director of o/Sochaczew. Production of plastic containers - an area of business which the companies share - will be expanded. Sales and purchasing will also be consolidated. EBIT results after the merger are expected to come to zł.2.7 million in 2008 and zł.3.3 million in 2009.

With the EU plastics market expected to develop significantly, the companies are counting on high returns. "The new entity will be operating in a fast-growing sector. We want to have the means for quick and dynamic development," said Zwierz. Mirosław Połeć, sales director for o/Sochaczew added, "The market of plastic containers is worth E800 [zł.3,123] million. There is real opportunity for us there."