Strategic Co-operation with Gebacolor
PAGO and Gebacolor conclude long-term co-operation arrangement
The Pago Group, with international operations in the manufacture and marketing of labels and labelling systems and Gebacolor, a leading manufacturer of self-adhesive labels in Romania, are starting up a long-term cooperation arrangement. The two partners have set themselves the aim of strengthening their position in the Romanian market and expanding the activities with their nationally based clients. The conditions required for collaboration with multinational clients in Romania are to be created in a second step. The cooperation between the two companies is geared towards the long term and a subsequent integration of Gebacolor within the Pago Group
The market for labels and product decoration is extremely diverse both in terms of the various types of label as well as with regard to geographic emphases and requirements specific to individual countries. Label manufacturers are therefore faced with the challenge of focusing on specific product and market segments and specialising their services accordingly. Cooperation arrangements play a key role in this context. On the one side, they allow for the exchange of know-how and experience beyond national borders whilst on the other side, however, ensuring that continued account is taken of the regional requirements both of the markets and clients.
With this in mind the cooperation between Pago and Gebacolor will be pursuing a number of staged objectives:
• Gebacolor's good position in the Romanian and neighboring markets will be strengthened by the collaboration. The needs of the regional markets and clients in terms of product range and services form the guiding principles for the direction of the business.
• In a second step, as an expansion of the business activity, the conditions will also be created to enable a service to be provided for multinational clients in Romania and for Eastern Europe in general. In Western Europe the Pago Group is today a leading supplier of decoration labels for international branded products and with the help of the cooperation arrangement will be able to establish an important foothold in Eastern Europe.
• Intensive effort will be put into driving forward the collaboration between Gebacolor and Pago in all the corporate areas, orientated towards the long-term. There are consequently plans to integrate Gebacolor into the Pago Group at a later date.
The Pago Group is today already represented in Romania through its own subsidiary in the area of labelling systems, components and total systems for applying self-adhesive labels. Pago Sisteme de Etichetare SRL in Arad manufactures labelling machines and services the national market. This area of business will continue unchanged.