Total Packaging Papers shipments were 235,900 tons, 1.7 percent lower than August 2016. Bag & Sack shipments were up 5.5 percent year-to-date, while Food Wrapping shipments were down 8.5 percent over the same period. The operating rate for August 2017 was 90.3 percent, while the year-to-date rate was 88.8 percent. Inventories were 168,600 tons, down slightly since July.
http://afandpa.org/media/news/2017/09/19/american-forest-paper-association-releases-august-2017-u.s.-packaging-papers-specialty-packaging-monthly-report
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As consumers around the world look to make more sustainable decisions in their day-to-day lives, the move away from single-use plastic bags has been one of the most noticeable packaging trends. Ecobag Network, the largest producer of ecological paper bags in Poland, has recently turned to Stora Enso for a solution that achieves new levels of lightweight strength and production output. Polish supermarket chains have been encouraging their customers to switch from plastic to paper bags in recent times. This can be seen in the growth in paper bag production across the industry nationwide. Between 2019 and 2023, the number of paper bag producers has doubled from seven to fourteen, while the biggest national retailer now uses 90 million bags a year. What has driven this change? As well as the consumer habits mentioned above, another key factor is the EU’s Single Use Plastics (SUP) Directive, the Polish implementation of which entered into force on 24 May 2023. This directive stipulates that any business that places lightweight plastic carrier bags (below 50 micrometres in thickness) on the market will incur an annual fee. It therefore makes business sense for supermarket chains to look around for viable alternatives.
CEO Per Lindberg comments on the development during Q3 2017: “We experienced a very strong market in the quarter, resulting in positive sales performance. Net sales were up 3% and volumes were up 1% on last year. Overall, we have had some difficulties with production availability in recent quarters, so we have established a new organisation to work proactively on both availability and quality at our facilities. I am confident that this will generate results over the coming years. Looking ahead, market conditions appear encouraging, and we see good opportunities for continued growth. In the longer term, we will have additional support from increasing demand for sustainable packaging solutions. In this respect, our major investments, which will start to deliver in 2018 and 2019, will make a significant positive contribution to our growth on this market.” Click Read More below for additional information.
Mayr-Melnhof Group (MM) has entered into an agreement to buy Essentra Packaging (100% equity interest in ESNT Packaging & Securing Solutions Limited (UK) and its affiliates and 100% equity interest in Essentra Packaging US Inc (US)) from Essentra plc (UK) for GBP 312 million - currently around EUR 365 million. The acquisition of Essentra Packaging serves to implement MM Packaging's strategy to grow in profitable and resilient segments such as pharma secondary packaging and strengthens its position in the European market for pharma folding boxes and leaflets. Additionally, this acquisition expands MM's presence in the US market with a significant position in the East Coast pharma hub. Essentra Packaging reported sales of around £370m for 2021 - currently c.€430m. The company comprises 21 production sites in 10 countries in Europe and North America, ideally complementing MM Packaging's current position in Scandinavia through the recently acquired Eson Pac and the existing business in France. Essentra Packaging serves over 800 customers worldwide, including 19 of the top 20 pharmaceutical companies, and employs over 3,500 people.