American Forest & Paper Association Releases January 2018 Boxboard Report

Smurfit Kappa notes the announcement released on the evening of 6 March 2018 by International Paper Company setting out the price of the unsolicited and highly opportunistic proposal that was originally made to the Board of Smurfit Kappa on 23 February 2018 and rejected in the Group’s announcement of 6 March 2018. The Board of Smurfit Kappa has already carefully considered, with its financial advisers, the Proposal in detail and has unanimously rejected it on the basis that it fails entirely to reflect the Group’s superior prospects as an independent business and represents a valuation multiple significantly below recent comparable transactions. Shareholders are strongly advised to take no action. This announcement is made without the consent of International Paper. Click Read More below for additional information.

Smurfit Kappa has announced it will invest €24 million to expand its corrugated plant in Rethel, North-East France, demonstrating the company's continued commitment to its French customer market. The new investment will facilitate the consolidation of two existing facilities at that plant and the installation of a new state-of-the-art corrugator and conversion equipment. This investment will result in environmental improvements at the plant including a reduction in CO2 emissions, with a saving of at least 150 tonnes annually. Phase one of the project, including installation of the new corrugator, is due to be completed in the first half of 2022, with full completion of the investment project expected in 2023. The investment will help to modernise and expand the plant, which will include a new 8200m2 building designed specifically for the installation of the new high-tech corrugator.

The growth of e-commerce has generated significant demand for sustainable packaging options, as both consumers and e-retailers look to increase the recyclability of their packaging. This curbside recyclable padded paper mailer is a sustainable alternative to non-recyclable dual material packaging. GP is expanding its offerings to include paper padded mailers. In May, the company opened a new facility in Arizona to manufacture curbside recyclable paper padded mailers with Amazon as a key customer. To manufacture this product, Georgia-Pacific created approximately 80 jobs at a new manufacturing facility in Tolleson, Arizona, outside of Phoenix. The company will begin supplying Amazon’s West Coast fulfillment centers with potential expansion to other parts of the country. “This padded paper mailer is a significant advancement in developing a sustainable packaging alternative to reduce environmental impacts,” says Adam Ganz, vice president – commercial development at Georgia-Pacific. “Shipping items to consumers in a mailer that can be tossed in the bin with the rest of their paper recyclables is a game changer. We’re excited to bring this to our customers at a time when e-commerce continues to grow rapidly.”