La Seda de Barcelona suspends expansion plans

The capital increase aimed to raise 40 million euros ($48 million) to finance the project for the growth of APPE and thus consolidate its international leadership. However, the total share subscription applications received were only about 12.3 million euros ($15 million). LSB said the company is looking into alternative sources of funding.

"The board of directors regrets that the capital increase has not been successfully concluded, declaring that the actual European economic conditions have had a negative effect," the company stated.

LSB is an industrial plastic packaging group operating internationally through its 14 facilities across Europe, Turkey and North Africa.

The company supplies PET containers in a fully integrated way from raw material feedstock, conversion technology and design, injection and blowmolding up to the delivered finished product.

Acquired from Amcor PET packaging in 2007, APPE is the wholly owned packaging division of LSB. APPE provides single-stage and two-stage PET preforms, bottles and containers for a wide range of markets such as food, beverages, home and personal care. APPE also operates the largest food-grade PET recycling plant in Europe, producing 35,000 tonnes of recycled PET annually.

In 2010 article on PlasticsToday, LSB said it was financially stable and ready to invest, which included in APPE.

The group decided it needed to refinance, did so, and officials said they were on course to become the premier plastic packaging company in Europe, the article stated.

 In addition to restructuring the group's debt, the new capital would enable the company to invest to help develop the Artenius business.

"The restructuring has given La Seda de Barcelona and APPE a great opportunity to refocus our outlook in several ways," said Martin Hargreaves, general manager of APPE Europe, in a statement at the time.

That new strategy for the PET processing business involved less focus on vertical integration with its parent company's PET plant, and renewed focus on developing its product range.