Plastic packaging producers take small, but fast steps

Financial results show that it is possible for a firm that has operated for 3 years in the industry of film and flexible packaging to derive a turnover worth 530,000 euros, provided it has a clearly devised investment strategy and a thorough development plan.
“We had a great deal of experience in plastics production when I first started the business. Because of economic conditions, the firm we originally worked for went bankrupt. However, we didn’t manage to find another job in the plastics industry and didn’t have any experience in any other sectors, so the only option we had left was to set up our own firm,” recount Stela Dulgheru and Bogdan Radu, partners in Simco Prodplast 2000, based in Pitesti.
It took the two individuals only 10 days to set up the company and in early 2004 the firm began manufacturing plastics, namely film and flexible packaging made from low and high-density polyethylene film and BOPP.
The first clients were individuals and companies known to the two entrepreneurs. Initially, the range of products offered was limited, whilst the first individuals employed were the company’s shareholders. For more than 12 months the two shareholders handled all the firm’s activities, but eventually employed a staff of 12.
To begin with banks were unwilling to grant a loan for investments in equipment; therefore in order to develop the firm investments were made in small steps. Around 7-8 months after the firm was formed, the opportunity arose to acquire the first film processing equipment, which resulted in higher productivity and the expansion of the product range and allowed the firm’s to meet delivery deadlines.
Simco Prodplast 2000 now boasts customers from all several economic sectors within its portfolio. The company’s openness to new partnerships has allowed it to produce specialised packaging for industrial companies, which up until that point had been imported. The company’s turnover reached 90,000 euros in its first year of activity and saw an increase of 32% in 2005. In 2006, the turnover reached 270,000 euros and this year the company expects to derive a turnover worth 530,000 euros. “We consider small, but fast steps to be the best way for us to remain competitive on the market,” added the two associates.
Mihai Preda, manager of another firm, Daconex, started operating on the market of flexible packaging in 1990, after noticing the lack of firms in Constanta that specialised in this sector.
The firm started out with 26 employees, which it has now reduced to 12. Initial investments totalled 100,000 dollars, which covered the sum required to purchase a complete processing line. In addition, 60-70,000 euros were also used for other investments.
In 2006, Daconex generated a turnover of around 250,000 euros, approximately 13% higher than in 2005. For 2007, Preda has estimated a growth rate of 13-14%. The manager of Daconex also believes that it is possible to successfully develop a family business on the flexible packaging market.

Plastic packaging overview
After 3 years of activity, a firm operating in this domain can derive a turnover of 530,000 euros provided it has a clearly devised investment strategy and a thorough development.
Daconex’s initial investments totalled 100,000 dollars
In 2006, Simco Prodplast reached a turnover worth 270,000 euros and expects to derive 530,000 euros this year; in 2006, Daconex generated a turnover around 250,000 euros, up approximately 13% on 2005 and estimates a 13-14% growth for 2007