The company’s management explains that it has been faced with a particularly difficult economic environment since the start of the Covid-19 pandemic, which has seriously hampered its development plan.
A renewal of the machine park
According to its managers, the company based in Oyonnax, France, in Ain, had planned to renew its fleet of machines, the obsolescence of which had become noticeable with the strong growth recorded in 2017, following the takeover by the STLinks group. .
In November 2020, PRP Création announced that it had completed the renewal of its fleet of injection molding machines with the introduction of ten new electric and automated presses. A total of four 90 ton presses, four 150 ton presses, one 190 ton press and one 360 ton press had joined the injection molding tool of PRP Création to meet all the requirements of its customers.
3 million euros were invested in 2020 to increase the company’s production capacities. New extrusion-blow molding machines were to complete the fleet.
Unfortunately, the sudden health crisis seems to have upset the good timing of this development plan. The sharp drop in activity in 2020 slowed down investments. These problems were followed by supply problems, then a “increase in all cost elements“(plastics, cardboard, wood, power supplies, etc.). A context that has greatly disrupted the company’s business plan, with a strong impact on its cash flow.
However, government support measures have enabled PRP Création to “maintain its position on the cosmetics market and accelerate its developments within the framework of the circular economy (100% recyclable solutions: XTrem Capsule and XTrem Pump, use of recycled and biosourced materials, etc.),“said the company in a statement.
A restructuring plan
Since March 2022, the management has been working on the implementation of the new aid proposed by the government (PGE  resilience, industry credit, PGE spread*) necessary to cope with the consequences of rising production costs. However, “despite an understanding of the problems of PRP Création, the various operators concerned by these devices did not consider it appropriate to provide their financial support”, regretted the company.
By placing PRP Création under the protection of the Commercial Court of Bourg-en-Bresse, the management intends preserve its industrial tool and maintain as many jobs as possible. A restructuring plan, including debt spreading, should be presented soon.
The management team is confident in the company’s ability to meet this new challenge, with “a motivated team” and “very successful” innovations, including the XTrem pump presented at Luxe Pack Monaco 2021 and recently awarded at Paris Packaging Week.
“I am firmly convinced that with the support of our entire ecosystem and our teams, PRP Création will bounce back quickly and enter a growth phase in the luxury and masstige market,“said Joël Viry, CEO of the company.
PRP Création offers complete packaging solutions (bottle + dispensing system + decoration) for the cosmetics, perfumery, personal care and hygiene markets. Thanks to its mastery of the three molding technologies (injection, extrusion blow molding and injection blow molding) and decoration (screen printing, hot stamping and pad printing), millions of bottles are produced each year in its French factory. For several years, the company has been investing in various eco-design solutions in line with market expectations (reduction of the CO2 impact and 100% recyclable products).
At the start of the year, PRP Création announced the sale of its flexible packaging division to Texen.