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Visy's Pratt eyes global growth to lift revenues to A$10 billion in 5-7 years

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Visy's Pratt eyes global growth to lift revenues to A$10 billion in 5-7 years

September 26, 2014 - 11:40

OAKLAND, CA, Sept. 26, 2014 (PPI Pulp & Paper Week) -Visy and Pratt Industries magnate Anthony Pratt told Australian media he expects his global packaging and paper business will generate more than A$10 billion (US$8.8 billion) in revenues and A$1 billion in earnings within the next five to seven years.

Pratt toldThe Dealin Australia that combined sales this year would be A$4.8 billion, up from $4.1 billion last year. Earnings are estimated to be above A$750 million but the private company does not disclose its financial results.

A recent IBISWorld Top 500 Private Companies list showed Visy as Australia's largest.

"A combination of things have driven the increase -- our American business is doing very well; our Australian exports have been very strong on the back of greater production in the mills, as well as strength in the primary packaging market," Pratt toldThe Deal.

Anthony Pratt ran Pratt Industries in the USA for nearly two decades before he returned to take over at Visy in 2009 following his father Richard's death.

Pratt Industries is building a new 360,000 tons/yr recycled containerboard mill next to its Valparaiso box plant in Indiana in a $260 million investment. The firm several years ago also started up a new containerboard machine in Shreveport, LA, as well. While adding containerboard capacity, Pratt Industries in the USA has also continued growing its corrugated business.

The company opened a new $44 million box plant in Ohio and plans a $2 million distribution plant in Indiana to complement the new mill in Valparaiso. The Valparaiso mill will be Pratt's fourth containerboard mill in the USA.

Also, the company in December opened its 13th US Material Recovery Facility in Columbus, GA, and is one of the largest consumers of recovered paper in North America, according to RISI figures.

Pratt toldThe Dealthe company would focus on expanding operations in Asia, to raise the region to 20% of EBITDA from about 10% currently.