Sonoco Signs Five-Year Packaging Services Contract with the LEGO Group

With this agreement, Sonoco further expands its ranges of packaging services in Europe and establishes a firmer market position in packaging services for leading brand owners.

06/10/06 Sonoco, the global packaging company, has become a supplier of packaging services to the LEGO Group in Europe. Under terms of the five-year contract, Sonoco will be supplying packaging services for the LEGO Group's Education and BELVILLE products, both from the LEGO Group's Small Business supply chain.

According to Niels Duedahl, vice president of the LEGO Group, Sonoco was selected because it can offer a cost-effective, flexible workforce, low administrative costs, high quality and reliable delivery dates. He further commented, "One of Sonoco's specialties is small batch series and multiple tool changes."

With this agreement, Sonoco further expands its ranges of packaging services in Europe and establishes a firmer market position in packaging services for leading brand owners. Sonoco will establish a new service center in the city of Lodz, Poland. Together with its existing service center in Lodz, Sonoco will have a solid base of packaging services, which will allow for further expansion.

According to Charles Sullivan, Sonoco's executive vice president, Global Consumer Packaging and Services, Sonoco has chosen to expand its packaging services base in Poland due to the high quality and flexible labor force, the central location of Lodz in Poland and in Europe and the overall cost- effectiveness.

Sonoco operates 21 locations worldwide providing strategic packaging displays and service solutions for retail-focused customers. These include service centers, point-of purchase manufacturing facilities, sales and design offices and brand artwork management centers. The Company's Services operations include designing, manufacturing, assembling, packaging and distribution of temporary, semi-permanent and permanent point-of-purchase displays and supply chain management services including contract packaging, fulfillment and scalable service centers. Sonoco serves a number of consumer packaged goods companies, including those serving markets in personal care, beauty, health care, electronics, hosiery, confectionery, home and garden, sporting goods, office supplies and pharmaceuticals.