Packaging: PRP Creation files for a safeguard procedure

The company's management explains that it is facing a particularly difficult economic environment since the start of the Covid-19 pandemic, which has seriously hampered its development plan.

According to its managers, the company based in Oyonnax, France, in the Ain region, had planned to renew its fleet of machines, whose obsolescence had become noticeable with the strong growth recorded in 2017, following the takeover by the STLinks Group.

In November 2020, PRP Creation announced that it had completed the renewal of its pool of injection moulding machines with the introduction of ten new electric and automated presses. In total, four 90-tonne presses, four 150-tonne presses, one 190-tonne press and one 360-tonne press had joined PRP Creation's injection moulding facility to meet all its customers’ requirements.

3 million euros were invested in 2020 to increase the company's production capabilities. New extrusion blow moulding machines were to complete the fleet.

Unfortunately, the sudden health crisis seems to have upset the proper timing of this development plan. The sharp drop in activity in 2020 slowed down investments. These issues were followed by supply problems and then a "surge in all cost items" (plastic materials, cardboard, wood, power supplies, etc.). A context that severely disrupted the company's business plan, with a strong impact on its cash flow.

However, the government's support measures have enabled PRP Creation to "maintain its position in the cosmetics market and accelerate its developments in the context of circular economy (100% recyclable solutions: XTrem Capsule and XTrem Pump, the use of recycled and biosourced materials,...)," explained the company in a release.

Since March 2022, the management has been working on the implementation of the new aids proposed by the government (PGE [1] resilience, industry loan, PGE* spread) needed to cope with the consequences of rising production costs. However, "despite an understanding of PRP Creation's problems, the different operators concerned by these schemes did not consider it appropriate to provide their financial support", the company regretted.

By placing PRP Creation under the protection of the Bourg-en-Bresse Commercial Court, the management intends to preserve its industrial tool and maintain a maximum number of jobs. A restructuring plan, including a spread of debts, should be presented shortly.

The management team is confident in the company's ability to meet this new challenge, with "a motivated team" and "highly successful" innovations, including the XTrem pump presented at the 2021 Luxe Pack Monaco trade show and recently awarded at the Paris Packaging Week.

"I am firmly convinced that with the support of our entire ecosystem and teams, PRP Creation will bounce back quickly and re-enter a growth phase in the luxury and masstige market," declared Joël Viry, CEO of the company.

PRP Creation offers comprehensive packaging solutions (bottle + dispensing system + decoration) for the cosmetics, perfume, personal care and hygiene markets. Thanks to its expertise in the three moulding technologies (injection, extrusion blow moulding and injection blow moulding) and decoration technologies (screen printing, hot stamping and pad printing), millions of bottles are produced each year in its French factory. For several years, the company has been investing in various eco-design solutions in line with market expectations (reduction of the CO2 impact and 100% recyclable products).

At the beginning of the year, PRP Creation announced the sale of its flexible packaging division to Texen.

Footnotes

[1] PGE: state-guaranteed loans

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