Frigoglass puts freeze on Norway plant
FRIGOGLASS, the Greek maker of drinks refrigeration equipment, has said its nine-month profit fell 15% as orders from its main German and Russian markets fell due to the economic downturn.
The Greek firm has reported sales are up 10.9% to €423.7m, thanks to a rise in sales from emerging markets, however the firm was hit by a drop in German and Russian markets as usual orders for the final months of the year did not materialise.
Frigoglass, which supplies brewers and Greek bottler Coca-Cola HBC, said it is shutting down its plant in Norway, restructuring its Poland plant and lowering general and operational costs to protect itself from the economic downturn. Frigoglass, based in Athens, has operations in 18 countries.
Petros Diamantides, md of Frigoglass, said: 'Frigoglass achieved a 10.9% rise in sales for the first nine months of 2008. This was driven by a healthy volume growth in drinks coolers primarily from our emerging markets in Eastern Europe, Asia and Africa as well as significant contributions from our latest acquisition, SFA of Turkey.
'The gains from the above geographies materially offset all of the ICM declines seen in Germany and Russia, but growth was adversely affected by the usual
and expected late-season orders that have not materialised. This is owing to the prevailing market conditions which have witnessed an unprecedented
confluence of adverse external factors'.