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PAGO relocates manufacture of labels and PAGOmedia from France

Media Release

PAGO relocates manufacture of labels and PAGOmedia
products from France to Germany and Switzerland

Grabs/Elancourt, October 2010

The Pago Group’s establishment in Elancourt near Paris specialises in the manufacture of Pagomedia labels (leaflet and booklet labels). Self-adhesive labels are also produced here. In Germany and Swit-zerland, the Pago Group operates two other major production plants, which manufacture the same label and Pagomedia specialties. As a result of the on-going structural changes in this specific market area Pago is planning to relocate production from France to these two sites in order to create synergies and strengthen market performance from which French customers will also benefit. Customer service and market canvassing will continue to be the responsibility of French label specialists belonging to our field service.

With the situation being accentuated by the economic crisis and given the absence of any indications that a change would bring about a positive development of the market positioning, the Pago Group had to review the state of affairs of its subsidiary’s establishment in Elancourt. Various options to continue the operation had been examined in detail. Unfortunately, none of them proved to be suitable to ensure a long-term and sustainable continuation of a separate label manufacturing. Therefore the decision was finally taken to relocate production from Elancourt to the big Pago sites in Germany and Switzerland. The resulting closure of the Elancourt establishment will affect 54 employees with the representatives of whom a wide-ranging social compensation plan has been agreed.

The manufacturing centres in Germany and Switzerland have comprehensive production techniques and are able to meet the needs of existing French customers. For example, the Swiss production site has qualified for GMP certification pursuant to ISO 15378 since December 2009. Production facilities in Germany and Switzerland are already back up centres for the Elancourt works and benefit from proven experience of label and Pagomedia manufacture for all branches of industry.

Following the relocation of manufacturing, the Pago Group will continue to provide its customers in France with a strong, modern and innovative production facility which meets high quality standards and assures ex-tremely reliable delivery. Pago continues to attach great importance to personal service for customers in France which will still be provided as it has been up to now.

The Pago Group also operates a branch establishment for nationwide sales and service of labelling machinery at Décines-Charpieu near Lyon. This business unit will remain part of the Pago SA company and will continue to focus on all areas of labelling technology on the French market. 

About Pago
The Pago Group is a world leading system supplier of labels and labelling technology and handles all aspects of labelling: self-adhesive labels, Pagomedia, leaflet labels, sleeves as well as labelling machinery and labelling software. The activity area comprises all branches with the main focus on hair and body care, pharmaceuticals and chemicals, the food and beverages industry and logistics. With headquarters in Switzerland, the Pago Group employs over 1,100 persons and operates production plants, branch establishments and participations in Switzerland, Germany, Austria, France, England, Romania, Italy and Thailand. There are also close cooperation partnerships in other European countries and in Asia, Russia, North and South America.