Extrapack adding two new plants

The plant in Pavlikeni has a built-up area of more than 7.5 thousand square meters and the investment so far is BGN 5 million

Extrapack adding two new plants

The Veliko Tarnovo-based packaging producer is expanding its capacity for paper packaging and cardboard boxes

The plant in Pavlikeni has a built-up area of more than 7.5 thousand square meters and the investment so far is BGN 5 million

© Extrapack


Veliko Tarnovo-based packaging producer Extrapack is expanding its capacity and product range with investments totaling around 20 million levs (10.2 million euro). The company is adding a fourth plant to its existing three facilities that is enabling it to manufacture larger sizes of paper bags and other products. With the acquisition of a majority stake in cardboard box manufacturer Universal-Polygraph in 2022, Extrapack included new items in its portfolio and is now increasing capacity for their production with a new, fifth plant in the town of Pavlikeni (central northern Bulgaria). The construction of both buildings has already been completed and the first machines are operational, with additional equipment to be installed in the coming months.

Fourth plant

Extrapack was established nearly 30 years ago and is currently owned by five partners. The largest shareholder is manager Milen Georgiev (36%). His brother Veselin Georgiev, Ivaylo Penchev (known primarily as majority owner of climbing wall manufacturer Walltopia), and Nikolay Kolev each hold 18%, and Nedko Hristov has 10%.

The company's first plant is located in the city of Veliko Tarnovo and produces textile and paper packaging. The second plant, for polyethylene bags, and the third one, for non-woven fabric, are located in the nearby village of Ledenik, which also hosts the company's logistics base. The fourth plant, which costs 12 million levs, was recently built there. Construction started at the beginning of 2022 with financing from UniCredit Bulbank. The total built-up area is over 7,900 sq. m. The project is intended to consolidate all processes related to the production of flexo-printed paper packaging under one roof.

"We will practically split the production of paper products - roll packaging with flexo printing will be made entirely in Ledenik, while sheet offset packaging production will remain in Veliko Tarnovo," Milen Georgiev told the Capital Weekly. Besides various sizes of bags, the new plant will also produce items such as tray liners, printed wrapping paper and more, mainly for food and clothing.

The fourth plant is located in the village of Ledenik, right next to the company's logistics base
Photographer: Tsvetelina Belutova

Part of the equipment from the first plant will be moved to the new building after the installation of new additional machines. "We already have several machines up and running and within the next couple of months we will reach normal operating capacity," Georgiev said.

At full capacity, the facility will be able to produce around 300 tonnes of products per month. Production is largely automated, with about 20 employees expected to work in the plant. Currently Extrapack employs 660 people.

Investment in Byala Cherkva

Parallel to this investment, Extrapack is building a new cardboard packaging plant in Pavlikeni. The project is carried out by Universal-Polygraph, a family firm based in the town of Byala Cherkva, in which Extrapack acquired a 55% stake two years ago through a capital increase of 500,000 levs.

Extrapack's decision to invest in the company was market-driven. "We were looking for expansion, because of the rising demand for boxes which we did not produce," said Georgiev and added another company based in Sofia was also mulled as an option for acquisition.

Universal-Polygraph primarily produces boxes for dietary supplements and medicines and after the new majority owner joined it the product list has been expanded to include food delivery packaging and more. In 2022, the company had sales of 1.2 million levs and a net profit of 15,000 levs.

Relocation to Pavlikeni

As a result of the deal production was expanded with additional premises rented in Byala Cherkva, but they proved insufficient to house the machines. This led to the company's decision to invest in a new facility by purchasing a 5-hectare plot with buildings, part of a former state-owned canning factory, in the nearby town of Pavlikeni.

Renovation is now complete and installation of equipment is pending. The built-up area exceeds 7,500 sq. m and the investment so far amounts to 5 million levs. All machines from Byala Cherkva will be moved to the building in Pavlikeni and an additional 5 million levs is earmarked for new equipment, which includes machinery for the new plant in Ledenik too. Currently Universal-Polygraph employs about 20 people, but the number is expected to increase to around 50 once production starts this summer.

Besides boxes for medicines and dietary supplements, the factory will also produce packaging for food delivery, confectionery products, gifts, luxury goods and industrial products. Future plans include expanding the production portfolio with corrugated cardboard packaging.

For 2022, Extrapack reported a total revenue of 102.5 million levs and a profit of 9.7 million levs. However, sales dropped by about 15% last year. "The reason is the sharp spike in 2022 when sales peaked by over 20%," explained Georgiev. About 80% of the company's output is exported.

Veliko Tarnovo-based packaging producer Extrapack is expanding its capacity and product range with investments totaling around 20 million levs (10.2 million euro). The company is adding a fourth plant to its existing three facilities that is enabling it to manufacture larger sizes of paper bags and other products. With the acquisition of a majority stake in cardboard box manufacturer Universal-Polygraph in 2022, Extrapack included new items in its portfolio and is now increasing capacity for their production with a new, fifth plant in the town of Pavlikeni (central northern Bulgaria). The construction of both buildings has already been completed and the first machines are operational, with additional equipment to be installed in the coming months.

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