German BOPP film maker Treofan is closing its production site in Battipaglia, Italy, with the loss of 67 jobs.
The company, which has recently been acquired by India's Jindal Films, cited “unfavourable general conditions” as the main reason for the shutdown.
The conditions, it noted in a 25 Jan release, leave little chance of operating the site profitably “even in the medium- and long-term.”
With only one production line, Battipaglia is a relatively small factory focused on standard films – a market segment that has come under particularly fierce price and margin pressure across Europe during the past years.
Treofan was acquired by Indian film maker Jindal films in August last year. The two companies operate another two sites in Italy and a total of six factories in Europe.
“Our aim is to create a positive long-term perspective for our team”, said Manfred Kaufmann, CEO.
To achieve that, he added, the company requires “highly-efficient structures and processes in all areas.”
According to Kaufmann, the company's projections demonstrate that the Battipaglia site does not have a “sustainable future”.