Press release Bong Ljungdahl AB

New Tyvek® agreement to boost ProPac sales

Bong has entered into an exclusive agreement with DuPont for the manufacturing, marketing and sales of Tyvek® branded envelopes and pockets and postal packaging solutions in Western Europe. The Tyvek envelopes and postal packaging products is a well-established business with an annual turnover of more than Euro 10 million.

The sales of Tyvek® products within this agreement will grow quickly from now on and is estimated to increase Bong’s sales by more than SEK 100 million on an annual basis from the second half of 2010.

Tyvek® is a spunbonded polyethylene material developed and manufactured by DuPont. It is light, thin and flexible but also extremely tough and durable. Tyvek® is, for example, tear and water resistant and therefore highly suitable for protective envelopes and postal packaging solutions. Furthermore, it is readily recycled.

“Tyvek is a well-known and successful brand in the envelope industry. Customers throughout Europe use Tyvek envelopes and packaging solutions on a daily basis, especially when the mailing is of extra importance” says Bong’s President and CEO Anders Davidsson. “Tyvek fits exceptionally well into our ProPac strategy and we are excited about the opportunity to develop Tyvek in the years to come. I believe the Tyvek material can be used for a number of new, interesting applications, e.g., for use by e-business and mail order companies.”

Bong will buy the Tyvek® material from DuPont’s Luxembourg plant and convert it into finished products in its production sites around Europe, predominantly in Wuppertal, Germany. Bong is also planning to sub-contract part of the manufacturing and distribution to third parties in order to secure high availability and easy access to the products for the end-users. Bong will market and sell Tyvek® envelopes and postal packaging solutions as a part of its ProPac range.

The new Tyvek® agreement is expected to contribute positively to Bong’s result as from 2010.

For additional information, please contact Anders Davidsson, President and CEO of Bong Ljungdahl AB. Telephone (switchboard) +46 (0)44 20 70 00, (direct) +46 (0)44 20 70 80, (mobile)
+46 (0)70 545 70 80.

Bong is a leading European provider of specialised packaging and envelope products and offers solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are the ProPac packaging concept and Russia. The Group has annual sales of approximately SEK 2 billion and some 1,200 employees in 13 countries. Bong has a strong market position, particularly in Northern Europe, and the Group sees attractive opportunities for further expansion and development. Bong is a publicly listed company and its shares are quoted on the Stockholm Stock Exchange.