The Swedish-based firm is consolidating after its recent purchase of a 50% stake in UK-based Nova Envelopes.

We are looking at productivity, said Bong president and chief executive Anders Davidsson. We are not excluding any area and the UK remains in our focus, he added. Results would determine potential job losses or gains, said Davidsson, who shed 25 posts at Milton Keynes last year because of reduced volume in England.

He added, however, that there were no plans to axe any jobs at 11-staff Nova Envelopes, based in Leighton Buzzard. As part of the deal, which went through in March, Nova managing director Robert Green has an option to sell his half share in five years.

Short-run direct mail is a growing business segment especially in the dynamic area around London, said Davidsson. We didnt have as much competence for short-run work as Nova. Its good for that type of firm to be run by an entrepreneur without being absorbed into a big business mechanism.

Net first-quarter sales at Bong Ljungdahl rose nearly a quarter to 40m (SEK556) and pre-tax profit to 1.1m.
The firm is restructuring in Finland and Germany, following the purchase of German competitor RCT Kuvert.

Bong Factfile
Staff worldwide 1,400
Capacity 18bn envelopes
October 2005 Bong opens Russian facility
December 2005 buys RCT Kuvert
February 2006 buys Smeads envelope factory in Estonia
March 2005 takes 50% stake in Nova Envelopes in the UK