SURTECO on dynamic growth course

SURTECO AG has taken some important strategic steps towards implementing the growth planned for the Group. These include, on the one hand, an US private placement amounting to 150 million euros intended primarily to finance the dynamic expansion of the Group planned over the coming years. In addition, the acquisition of 100% of the shares of the Swedish plastic foils producer Gislaved Folie AB has been closed and this further completes the product portfolio of the SURTECO Group. The company has been sold by Stena Adactum. Gislaved Folie AB is a leading manufacturer of decorative plastic foils used in shipbuilding, furniture industry and for special applications. The company generated sales revenues amounting to 26 million euros with a workforce of 145 employees during the business year 2006.

The aim of these measures is to increase consolidated sales revenues – 403 million euros in the business year 2006 – to some 800 million euros by 2011. The goal is also to significantly improve profitability. The EBITDA margin is projected to increase from just under 18% in 2006 to more than 20%. Planning for the Group envisages a large number of additional expansion stages for the coming years. These include expansion of existing production facilities, as well as pursuing a consistent policy of external growth. The focus here is on regional expansion and enhancement of the product portfolio, particularly in the segment of decorative plastic foils.