Improving production capacity for growth and ensuring sustainable market competitiveness of Hamat Ltd.

Hamat Ltd. is a manufacturer of PVC-plastisol cap seals intended for canned food and beverages. Our customers in Bulgaria are the biggest manufacturers of jar and bottle closures. About 40% to 50% of our production is exported to Turkey, Ukraine and Moldova. In recent years, the food industry has been required the use of closures with PVC-free sealing materials. For this reason, more and more manufacturers of closures are directing their production to products with TPE seals - a material based on thermoplastic elastomers with no PVC and plasticizers. This trend places a constraint on our business growth. We do not have the technology to produce seals without PVC and plasticizers and thus we can not meet the market needs and requirements. We are losing more and more customers because they are choosing manufacturers that already offer the new PVC-free sealing compound. The current project aims to meet these needs of the enterprise to transform its production process by putting into operation a new production line for the production of seals without PVC and plasticizers in response to the requirements of Regulation 1935/2004 and Directive 2002/72/EC for the production of materials and articles intended to come into contact with food. As a result of the activity to improve the production capacity for growth, we are expected to achieve the following outcomes on average base during the three years after project implementation: productivity gains by 6%; increasing production cost efficiency by 8%; increasing export earnings by 36%. The implementation of the project will help us to improve our capacity and to increase our production as well as to enter in foreign markets with a competitive product in line with the EU strategies to restrict the use of plastics and ensure maximum safety of food. The project duration is 14 months. The total value of the investment is 391000 BGN and the grant is 351900 BGN.

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