Q1 2021 Highlights: *Net Sales were $1,649 million versus $1,599 million in the prior year quarter. *Net Organic Sales increased 2% in the quarter driven by sustainability-supported innovative packaging solutions. *Net Income was $54 million versus a loss of $13 million in the prior year quarter. *Earnings per Diluted Share were $0.19 versus a loss of $0.04 in the prior year quarter. *Acquired $400 million of International Paper's minority ownership interest in the partnership, reducing minority ownership stake to approximately 7%. *Announces intent to acquire Americraft Carton, Inc., a leading independent folding carton producer in North America, extending participation into new and existing end markets while continuing to increase paperboard integration rates.
Fiber-based solutions offer more sustainable packaging options, including lower packaging weight creating less waste, package integrity and safety while building distinctive branding through packaging and offering diverse levels of protection. In addition, fiber-based packaging can reduce the overall impact on the environment, offering positive recyclability, repulpability, and at times compostable end-of-life scenarios. PurposeFil™ packaging products help meet multiple sustainability goals. Ahlstrom-Munksjö uses fiber from responsible and legal sources, and all PurposeFil™ products qualify for Chain of Custody Forestry Credits and Certification. The ultimate goal of PurposeFil™ packaging papers is to offer alternative packaging options to non-renewable substrates. “PurposeFil™ products are utilized in a wide variety of e-commerce packaging and retail packaging, in both primary and secondary packaging functions,” explained Zack Leimkuehler, Vice President of Ahlstrom-Munksjö’s Technical Solutions business. “There is so much diversity in the e-commerce and retail space, and we have the technical expertise and manufacturing flexibility to work with our customers to meet their unique performance requirements for their specific packaging structures.”
“Eco-design is a business approach that requires investments and time in the long term,” explains the president of Solarenn, Christophe Rousse. A joint effort from three actors of the fruit and vegetable sector -the Solarenn cooperative, DS Smith as global supplier of sustainable packaging and ETpack mechanizer - has helped optimize tomato packaging throughout the supply chain. The common goal? Moving to more sustainable solutions and eliminating single-use plastic. They have therefore developed a 100% cardboard packaging which is eco-designed and innovative, allowing maximum flexibility and visibility of the product. The joint design was initiated in September 2020. This commitment fits the expectations of the French consumers, who are increasingly concerned about the environmental impact of their consumption and who are now questioning the food industry . For the past 2 years, there is indeed strong consumer’s pressure to eliminate single-use plastic. In 2021, Solarenn will have 7 different trays on the market that are 100% cardboard with zero-plastic.
Smurfit Kappa Brazil, partnering with sommelier Myriam Echeverri, has won a prestigious Red Dot Award in the category of Product Design 2021. The award recognises this packaging as one of the most innovative design projects in the world. The packaging challenge came from Wine & Bite Box to secure and protect bottles of wine and food for a growing trend of tasting boxes being delivered to customers for an at home gourmet experience. Developed by Smurfit Kappa with 100% recyclable materials, the main advantage of the packaging design is its flexibility and the ability to accommodate different shapes and sizes of wine bottles safely, without having to use any filling materials. This design has a variety of 220 options to optimise space within the cardboard box and to accommodate different formats allowing for the wine bottle and food to fit perfectly.
O-I Glass, Inc. announced that its wholly owned subsidiary, Paddock Enterprises, LLC, has reached an agreement in principle for a consensual plan of reorganization under section 524(g) of the Bankruptcy Code. Paddock, the Official Committee of Asbestos Personal Injury Claimants, and the legal representative for the future asbestos personal injury claimants all agreed to accept the terms of a mediator’s proposal regarding a potential consensual plan of reorganization for Paddock. O-I Glass supports the agreement among Paddock, the ACC and the FCR that follows a successful court-approved mediation process conducted by Kenneth Feinberg and the Honorable Layn R. Phillips in connection with Paddock’s ongoing Chapter 11 case. “From the beginning of the Chapter 11 process, we have been committed to supporting a resolution of Paddock’s legacy asbestos liabilities in a manner that ensures claimants are treated fairly while providing finality and certainty for O-I Glass and Paddock. This agreement is a positive and significant step toward achieving those objectives. O-I Glass and Paddock look forward to working cooperatively with the ACC and FCR to implement the terms of the agreement. We believe this is the best path to not only equitably address Paddock’s legacy liabilities but also move expeditiously toward emergence,” said Andres Lopez, CEO of O-I Glass.
Q1 2021 in brief * Net sales decreased by 5% to EUR 802 million. EUR (845 million) * Adjusted operating profit was MEUR 77. EUR (EUR 74 million); reported operating profit EUR 72 million EUR (83 million) * Adjusted earnings per share were EUR 0.49 (EUR 0.46); reported earnings per share EUR 0.45 (EUR 0.53) * Comparable revenue growth was -0% at Group level and 4% in emerging markets * The effect of exchange rate fluctuations on the Group's net sales was EUR -46 million. EUR -5 million in operating profit. euros
Huhtamaki, a key advanced manufacturer of sustainable packaging solutions for consumers around the world, has entered into an agreement to acquire the assets of Jiangsu Hihio-Art Packaging Co. Ltd., a leading manufacturer of paper bags, wraps and folding carton packaging in China. The company currently serves international quick-service restaurants (QSR) as well as national bakery chains. With this acquisition, Huhtamaki continues to strengthen its position as the leading foodservice packaging provider in Asia and expands its product portfolio in China allowing it to better serve its existing and new customers in this exciting growth market. Jiangsu Hihio-Art Packaging Co. Ltd. currently employs approximately 200 people in its manufacturing unit in Xuzhou city, Jiangsu. Employees will be offered an opportunity to continue to work for Huhtamaki after the transaction is closed. In 2020 the annual net sales of the privately owned business were approximately EUR 20 million. Following the acquisition, Huhtamaki will have altogether four manufacturing units in China: in Guangzhou, Shanghai, Tianjin, and Xuzhou.
Berry Global Group, Inc. announced an investment of more than $70 million to support continued growth in consumer packaging films, primarily for e-commerce, food, and beverage applications. The investment supports new multi-layer blown film lines along with infrastructure upgrades and other equipment that will come online in 2021 and 2022, across multiple sites in the North American manufacturing system. Beyond the traditional infrastructure upgrade, the film lines will support the anticipated increased customer demand for recycled content. Beyond the material, Berry is committed to remaining at the forefront of the innovation necessary to meet customers’ sustainability goals and will do so through its investments in the latest equipment technologies, advantaged film development, and design for circularity. Line flexibility is a critical investment strategy deployed by Berry to ensure that ongoing material science developments apply to customer specifications, ranging from recycled content in its films to PHA resins that support bio-resin use.
First Quarter Highlights *First quarter 2021 GAAP earnings per diluted share were $0.71, compared with $0.80 in 2020. *First quarter 2021 GAAP earnings included net after-tax charges of $19.4 million related to restructuring activity, asset impairments, acquisition and divestiture transaction costs, loss on a business divestiture and non-operating pension costs which were partially offset by insurance proceeds. In the first quarter of 2020, GAAP earnings included net after-tax charges of $14.8 million related mostly to restructuring actions and non-operating pension costs. *Base net income attributable to Sonoco (base earnings) for first quarter 2021 was $0.90 per diluted share, compared with $0.94 in 2020. (See base earnings definition, explanation and reconciliation to GAAP earnings later in this release.) Sonoco previously provided first quarter 2021 base earnings guidance of $0.80 to $0.90 per diluted share. *First quarter 2021 net sales were $1.35 billion, compared with $1.30 billion in 2020. *Cash flow from operations was $138.7 million in the first three months of 2021, compared to $87.7 million in 2020. Free cash flow was $99.4 million in the first three months of 2021, compared with $57.1 million in the first three months of 2020. *On April 4, 2021, Sonoco completed the sale of its U.S. Display and Packaging business to Hood Container Corporation for approximately $80 million in cash, the proceeds of which were received subsequent to the period's end.
Sonoco announced it will raise the price for all paperboard tubes and cores by a minimum of 6 percent, effective with shipments in the United States and Canada, on or after May 24, 2021. “This price increase is necessary due to continued increases in costs for uncoated recycled paperboard (URB), our primary raw material which remains in very tight supply. Additionally, we are feeling significant inflationary pressures in adhesives, packaging and logistics costs,” said Mike Thompson, Director of Sales and Marketing for Sonoco’s North America Tubes and Cores Division.
Novolex is offering creative solutions to help restaurants with increased customer demand for convenient takeout and curbside service with a variety of plastic cups and containers for “drinks to go.” As restaurants evolve and offer more carryout, Novolex brands are creating ingenious ways to help them thrive in the changing world. In addition to “drinks to go,” which can be branded to customer specifications, restaurants can choose from a variety of family-style carryout boxes, peace-of-mind packaging that prevents tampering, and disposable table and chair coverings. Novolex is committed to helping restaurants succeed with a range of disposable products: *Stemless wine glasses, margarita glasses, stadium cups and mason-jar-shaped containers for alcoholic drinks; *96-ounce JavaPac® beverage dispensers, made from paperboard, that keep drinks hot or cold for hours; *Beverage bags, big carryout bags with handles, and drink cups with secure lids for easier takeout; *Large bowls, clamshells and trays for family-style portions that keep foods hot and reduce the number of containers needed; *Individually wrapped drinkware and optional lids for more hygienic transport.
SCA increases the prices on white and brown kraftliner in Europe by €50 per tonne. The new price is valid from June 1, 2021. “The global demand for kraftliner continues to be high”, comments Mikael Frölander, VP Sales and Marketing Containerboard. “The capacity is limited to increase kraftliner deliveries and increasing costs for raw materials supports a price increase.”
Smurfit Kappa has announced a significant investment in its Hoya paper mill and board manufacturing plant in northwest Germany. It is the latest phase of an investment programme, which commenced in 2011, and this last phase will see production output increase by 70 kt to 450 kt per annum. The investment will replace the complete press section of the PM2 paper machine with new state-of-the-art technology, increasing the overall efficiency of the manufacturing process. The PM2 is a 7.5 meters wide paper machine, producing both testliner and fluting packaging paper. Production speed will increase to 1250 m/min and upon completion, this world class machine will further strengthen the industrial efficiency of Smurfit Kappa Group's containerboard system. It is expected to be operational from the first quarter of 2023.
With Pure DecorX™, BillerudKorsnäs is introducing the latest development in White Top Kraftliner. The launch opens up great improvement potential for decorative corrugated packaging, in terms of strength, print appearance and sustainability. Pure DecorX is a 3-ply construction made of 100% primary wood fibres, which makes the liner strong, stiff and with high thickness. In practice, this means great lightweighting opportunities, high runnability in converting machines, reduced risk of washboarding, and enhanced packaging performance. The use of only primary fibres also makes Pure DecorX a climate-smart choice: it is renewable, recyclable and biodegradable, and the fibres can be traced back to responsibly managed forestry.
SC Johnson has once again recognized Crown Holdings, Inc. at the brand’s 2020 Together We Win Supplier Awards. Crown received the “Value Excellence” title, which acknowledges a supplier’s commitment to continuous improvement, excellence in supply chain management and focus on collaborative processes. The Company supports SC Johnson in North America and Europe with the manufacturing and innovation of diverse aerosol packaging in the brand’s household cleaning, air care and pest control product portfolio.
Pregis is announcing two new manufacturing facilities in the Dallas area to support growing demand in the Southern region of North America. The recently opened 128,000 square foot Garland, Texas facility produces protective packaging materials, acts as distribution center for a variety of Pregis products and will have an onsite customer demo and training center. The Garland facility has already begun production and is expected to ramp up production later in the year. The Garland facility already has 44 employees, with another 40 to be added later in the year. Pregis’ new 265,000 square foot manufacturing facility in Arlington, Texas will be producing the recently rebranded Pregis EverTec™ mailer which features lightweight, recyclable all-paper cushioned construction. The Arlington facility will begin production in the summer. Pregis is currently looking to fill 80 new manufacturing positions in Arlington. Both facilities have room to expand to meet future demand, and are expected to provide additional employment opportunities in the region.
Total Containerboard production in March increased nine percent compared to March 2020. It was up two percent when compared to the same three months of 2020. March 2021 production of containerboard for export decreased 15 percent compared to the same month last year; it was down 25 percent year-to-date. The containerboard operating rate was 98.4 percent, up 2.8 points from March 2020 and essentially flat (-0.3 pts.) year-to-date. Mill inventories of containerboard at the end of March decreased 77,000 short tons from the previous month and were down 56,000 short tons compared to March 2020.
Total packaging papers & specialty packaging shipments in March increased three percent compared to March 2020. They were up three percent when compared to the same three months of 2020. The operating rate was 91.0 percent, down 2.2 points from March 2020 and up 0.6 points year-to-date. Mill inventories at the end of March decreased 10,000 short tons from the previous month and were up 6,000 short tons compared to March 2020.
Huhtamaki welcomes the development of an EU contingency plan to support Europe’s food system in times of crisis and calls for the essential role of food packaging to be fully incorporated into the plan. The EU food supply and food security contingency plan builds on lessons learned from the COVID-19 pandemic and is an important component of the European Green Deal and the EU’s Farm to Fork strategy. The availability of food, access to food, stability and utilization of food are key components of food security. Food packaging plays a key role in delivering these. It is critical to the effective functioning of modern food systems, which rely on packaging to store and transport food, while keeping safe from spoilage and disease.
Amcor has leveraged its global R&D resources to help Nestlé put enviro-conscious consumers first, by making Smarties the first confectionery brand to move to recyclable paper packaging in Australia. The new packaging is made from sustainably sourced thermoformable paper and is dynamic enough to be printed on with either flexographic or gravure technology and finished with a heat or cold-seal adhesive. Working closely with Nestlé, Amcor has developed this next generation packaging solution which performs when it comes to sustainability and consumer convenience, while also maintaining the highest levels of product protection.
With the growing trend of “skinimalism” and the evolution of more lightweight, water-like foundations with sheer and natural finishes, Aptar Beauty + Home has developed an outstanding dispensing solution for ultra-fluid formulas: Star Drop, a unique hybrid packaging with a patented smart valve technology delivering a highly accurate dose at each use. According to this year’s Pinterest Business report, “skinimalism” is a major beauty trend. It revolves around using less products in our daily routine (for skincare and makeup) and emphasizes simplicity to embrace slow and natural beauty. “Natural everyday makeup” jumped by 180% as the most searched terms on the platform as well as “natural glowing skin” increasing fourfold in the search words. For “skinimalism” one needs a precision dropper – that’s where Aptar Beauty + Home innovates with this new solution. Product flow is critical and often it is hard to control properly, and the pipette let’s the formula run and smudge during or after use. This is why Aptar Beauty + Home has developed a clean and practical solution to improve the overall user experience for consumers.
Smurfit Kappa’s innovative three litre Bag-in-Box packaging design has received Amazon’s “Frustration-Free Packaging” (FFP) certification. This is a world first for a generic packaging design, applicable for a wide range of products. The company unveiled this unique Amazon FFP pre-certification to thousands of customers at its recent invite-only virtual Better Planet Packaging event. Businesses selling on Amazon Marketplace can now use this ready to go, pre-certified Bag-in-Box design avoiding the need to go through costly and time-consuming testing at a specialised ISTA certified laboratory to gain FFP certification.
Liberty Diversified International (LDI) has acquired the assets of Miller Container Company, a Quad Cities-based manufacturer of corrugated cartons and displays. Miller Container will continue to operate under its well-established brand name at its Rock Island headquarters and warehouse as well as its sheet plant in Clinton, Illinois. Mike Vonderhaar, who has served as owner and president, will remain with the company and join LDI’s packaging management team. Miller Container employees will be offered continued employment. LDI’s profile as a major player in the corrugated packaging industry, with facilities in Minnesota, Nebraska, Texas, California and Mexico, continues to expand with this acquisition in the Quad Cities area.
Aptar Pharma was proud to receive an InnoPack China Award recently, in recognition of Aptar Pharma’s well-established Bag-on-Valve Technology (BOV) Platform, with a special focus on our innovative PureHale® device and Pacifica Duo Actuator. PureHale® is a portable and ready-to-use drug delivery solution designed for upper respiratory care. An industry first, this nebulizer-like device distributes a continuous fine mist to gently cleanse, moisturize and soothe the upper respiratory tract. Aptar Pharma’s Pacifica Duo is a twistable actuator that fulfills two needs in one applicator – spray for gentle application and jet for rinsing -providing flexibility to users.
DS Smith, as a member of AFCO (Spanish Association of Manufacturers of Containers and Cardboard Packaging) joins them to spread the campaign #MuchoMasDeLoQueImaginas (more than you can imagine) with the aim of raising awareness of the importance of an industry that is essential: Cardboard Packaging. Cardboard packaging, in addition to protect products, can help in the efficiency of a company and be a differentiating element and of value for brands among many other functions. In this video 5 executives of large companies in Spain explain why they choose cardboard packaging:
Flexible packaging paper Koehler NexPlus® Seal is used for secondary packaging. In this way, Ritter is taking up the changed consumer behavior as a pioneer. The switch to paper stand-up pouches was made without any large investment in packaging machines. Alfred Ritter GmbH & Co. KG aims to create packaging solutions from renewable raw materials that are in harmony with both humans and nature and recyclable. With a view to achieving this goal, the company actively monitors changes in consumer behavior, changes which have grown exponentially in recent months. The concept of sustainability is becoming a key criterion in shoppers’ purchase decisions, with packaging an increasingly important factor as shoppers no longer take the individual product into sole consideration. Ritter focuses on the first secondary packaging made of paper.
Stora Enso Intelligent Packaging is expanding the selection of the sustainable ECO RFID –product family with a tag collection that is specifically designed for food & beverage items. Part of the new ECO RFID Food & Beverage Collection by Stora Enso is the world’s first paper tag for microwave-safe use, ECO Meal. RFID technology is used in the food industry to automate processes, provide real-time ‘track and trace’ –functionalities, and support next-generation unmanned retail. The new ECO Meal RFID tag by Stora Enso is specially designed for item-level tagging and tracking of ready-made meals. It is the first paper-based RFID tag on the market for this specific use case. Unlike traditional RFID tags, ECO Meal labels do not need to be removed from the food package prior to microwave heating, and the tags can be recycled in paper recycling.*
LEIPA Group is pleased to announce another addition to its Sales team: Mike Petersen will be joining us on May 1st, 2021, as Head of Sales Packaging Paper and will have overall responsibility for all related end-to-end sales processes and functions. In this capacity, Mr. Petersen will report to LEIPA Group’s Chief Sales Officer, Dr. Fabian Gaus. Mr. Petersen joins us from the Prinzhorn Group, where his last positions were Managing Director for optimizing the sales set-up of 24 containerboard plants in Europe, and General Manager and Sales Director for their Dunapack Spremberg operation. Previous engagements included management positions in Sales with Igepa, Papier Union and Mondi.
North Pacific Paper Company (NORPAC) is excited to announce the arrival of a new state-of-the-art drum pulper that will help the company expand its production of lightweight recycled packaging papers and safeguard more than 400 mill jobs and support other indirect jobs in Cowlitz County. The new pulper just arrived at the Port of Longview and will be moved this week to the NORPAC mill. The pulper and other mill infrastructure upgrades represent more than a $50 million capital investment that will expand Longview mill operations to transform wastepaper into lightweight recycled papers for corrugated boxes, displays, bags and various other packaging products.
20/20 Custom Molding Plastics’ latest expansion, beginning in April, will bring more than 100 new jobs to its two locations thanks to various machine additions and the relocation of several high pressure presses. The manufacturing firm will proceed with adding two 3,000-ton high pressure machines and one 8,000-ton high pressure machine to its 225,000-sqaure-foot Holiday City plant this year and into 2022. The 375- and 500- ton high pressure presses in Holiday City will be relocated to the Bluffton, Indiana 325,000-square-foot facility. In addition, the Bluffton location will receive three new structural foam presses over the next 18 months. President of 20/20, Ron Ernsberger noted that the company’s ability to continuously grow is rooted in its goals to exceed customer expectations.
Aptar Food + Beverage’s SimpliCycle™ recyclable Valve was awarded the Best CSR/Sustainability Initiative at the World Food Innovation Awards ceremony held virtually on YouTube March 23. Entrants were judged on categories such as: innovation, functionality, design and product expression and represents excellence across every category of the global food industry. Composed of a low-density material, SimpliCycle™ allows the valve to float so it’s easily separated from the PET stream and ultimately recycled within the PP/PE olefin stream. According to Susan DeGroot, Director of Product Marketing, this award is one more reflection of Aptar’s commitment to using sustainable materials to create innovative solutions that help CPG brands achieve their goals, while enabling consumers to establish a deeper connection to their preferred brands.
By combining their expertise and the latest Innovations, Siegwerk and Kotkamills will actively create new capabilities for fiber-based packaging Printers and producers, promoting circularity. Siegwerk, one of the leading global providers of printing inks for packaging applications and labels, and Kotkamills, a Finnish paper and paperboard manufacturer, have joined forces to create innovative solutions for printers and producers of fiber-based packaging to further drive packaging circularity. Under the motto “Together we Accelerate change for good”, this strategic partnership aims to provide the market with highly sustainable and eco-friendly solutions by combining the latest technologies of both companies.
Pregis announces its partnership with Circular Great Lakes (CGL), a regional initiative focused initially on keeping valuable plastic materials out of the waste stream and the environment. CGL has been created by the Council of the Great Lakes Region (CGLR) to create a “future without waste” in this binational economic region. Pregis is a founding member and funder of the initiative. The mission behind the Circular Great Lakes initiative aligns perfectly with the Pregis Purpose to “Protect, Preserve & Inspyre” and its 2k30 sustainability goals. Pregis is committed to achieving circularity through product design and making end of life collection easier for consumers so materials can be brought back through the supply chain through recycling and reuse. The company views this opportunity as a way to collaborate with industry members, academia, material processors and purpose-driven customers to create this circular economy.
Mondi has helped Spanish retail chain Alvaro Moreno to save almost 90 tonnes of plastic per year by switching from plastic to paper shopping, online delivery and gift bags. In the past, Alvaro Moreno used more than 3.7 million plastic bags and containers per year. By switching to paper packaging for its bags and thus reducing its plastic consumption, the company is demonstrating its commitment to sustainability. All three bags are recyclable and made from Mondi’s Advantage and EcoVantage product ranges using renewable and responsibly sourced materials. EcoVantage is Mondi’s newest paper range created with fresh pulp and recycled fibres, providing a high-quality printing surface to feature the brand’s distinct white logo and promote the sustainability benefits for its customers.
Sonoco announced it has closed on the sale of its Display and Packaging business in the United States to Hood Container Corporation for $80 million in cash. Sonoco’s U.S. Display and Packaging business produced net sales of approximately $135 million in 2020 and provides point-of-purchase display design, manufacturing and fulfillment as well as contract packaging services for consumer product customers with more than 250 brands. Based in Winston-Salem, N.C., the Display and Packaging business operates eight manufacturing and fulfillment facilities along with four sales and design centers and has approximately 450 employees.
PEFC-certified cardboard has replaced the plastic packaging around beverage can packs by Estrella Damm, a leading Spanish beverage producer, leading to big reductions in their plastic use. The decision to completely remove the printed plastic packaging from all six, twelve and twenty-four-can packs reduces plastic use by 99 tons a year. The action is an important step in the company’s sustainability strategy. The new packaging is made from PEFC-certified, natural and renewable fibres. Consumers benefit from the new design with rounded edges and different opening options, making it easier to carry and open.
The scale and importance of e-commerce has been felt worldwide especially during the current pandemic and is here to stay. It has been the fastest-growing channel as consumers shop online, on their smartphones and through social media. All have come to expect a seamless shopping experience, the omnichannel approach, across multi-platforms from brick and mortar (click & collect) to online. “At Aptar Beauty + Home we are READY to deliver our strategy by focusing on our enablers – sustainability, digitalization and transformation. Offering sustainable and e-commerce capable solutions is critical today. Packaging is the first interaction a customer has with our clients’ products. How it arrives, how it is disposed, and the overall customer experience is what our team is working on every day.” shares Marc Prieur, President, Aptar Beauty + Home.
Smurfit Kappa has announced a further investment of over €25 million at its Pruszkow ‘mega-plant’ located in central Poland. This investment forms part of the accelerated capital investment programme following the company’s €660 million equity capital raise which took place in November 2020. This latest investment will double the output from the facility and result in the creation of 25 new jobs, bringing employment to more than 230 staff at the location. Construction is due to commence in July of this year and be completed during 2022. Upon completion, the newly expanded facility will be 37,500 metres2, making it Smurfit Kappa’s largest facility in Poland and one of the largest facilities for Smurfit Kappa in Europe. The customer portfolio includes some of the leading brands in the FMCG food and beverage sectors and serves both international and local customers.
International Paper has purchased two state-of-the-art corrugated box plants in Spain, further growing its capabilities in Madrid and Catalonia, the largest industrial regions in the country. The terms of the transactions were not disclosed. Corrugated packaging is a strategic business for International Paper in EMEA and offers customers high-quality packaging solutions in the industrial, fresh fruit and vegetable, and e-commerce segments. The two businesses will become part of International Paper effective April 1, 2021.
Mondi has produced recyclable packaging for Bell Germany’s ‘Abraham’ range of thinly sliced gourmet ham that ensures perfect conformity with existing recycling guidelines. Bell Germany is launching a mono-material recyclable WalletPack in March for over 30 products including Seranno, Prosciutto and Savoy sliced ham. The new solution will replace a multi-material non-recyclable plastic solution, using 37% less material compared to standard modified atmosphere packaging. This switch will also reduce plastic waste for Bell Germany by 35 tonnes per year thanks to the lightweight solution. It will also lower waste disposal fees for Bell Germany and meets the design for recycling guidelines of leading retailers.1 Created after two years of development, the new Mondi WalletPack operates as a folder, which the consumer opens to unpack the product. It features a re-close function on the backside to prevent food spoilage, provides excellent protection for thinly sliced deli meats, and has been verified by the German institute cyclos-HTP as 93% recyclable.
Tetra Pak announces it is ready to deploy its portfolio of tethered cap solutions. The portfolio brings numerous benefits to food and beverage manufacturers and consumers, as the company builds on its vision of the most sustainable food package. These benefits include minimising litter, as the cap will stay attached to the package. The carbon footprint can also be reduced because the company’s tethered caps are planned to become available as a plant-based option, therefore increasing the renewable content of the package. In tandem, the company is accelerating the expansion of its paper straws offering to ensure further renewable and low carbon materials across the range of packaging solutions. The aim of this is to address a broad range of customer sustainability needs without compromising on food safety, while still delivering on the end-user drinking experience. Tetra Pak’s tethered caps and paper straws developments mark the latest additions to its range of responsible end-to-end solutions, allowing manufacturers to achieve their ambitions in three essential areas – food safety, food waste and the environment - simultaneously.
Eric Le Lay, President of Huhtamaki’s Fiber Foodservice Europe-Asia-Oceania business, has been appointed President of the European Paper Packaging Alliance (EPPA) as of March 24, 2021. Representing Europe’s leading manufacturers of paper and fiber-based food and foodservice packaging, EPPA promotes food safety, circular solutions, and lower carbon emissions. The European paper and board packaging sector directly employs around than 50,000 people and supports the foodservice market, with an estimated turnover of EUR 70 billion, employing 1.6 million people and supplying 160 million consumers across the EU. Commenting on EPPA’s priorities for 2021, Eric Le Lay indicated that he will be focusing on better regulation and evidence-based policy making during his presidency. This to ensure that the legislation which affects paper-based packaging and the EU’s Green Deal ambitions is delivered based on sound evidence and better regulation principles and with a view to fostering environmentally viable solutions through innovation. “EPPA members are committed to reducing the environmental footprint of food and foodservice packaging without compromising food safety and human health protection. We will continue to build partnerships with organizations who share our focus on developing and delivering innovative and practical solutions to increase recycling and to reduce carbon emissions. EPPA, whose members represent both suppliers of renewable and sustainably produced raw materials and manufacturers of food service packaging, is committed to helping food retailers and hospitality businesses deliver the best consumer experience sustainably,” says Eric Le Lay, the newly appointed President of EPPA.
Sonoco announced it is implementing a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning April 26, 2021. Sonoco said the price increase was in response to strong demand across its U.S. and Canada mill network which is driving significantly longer backlogs as well as stepped up inflation of input costs, especially freight, papermaking chemicals and packaging supplies.
Amcor and Mars Food today celebrate the supermarket roll-out of easier to recycle microwavable rice pouches in the UK. This new pouch, designed to be recycled, will be piloted with Uncle Ben’s® Ready to Heat Wholegrain rice, and will be available in Tesco stores from mid-April. The breakthrough innovation delivers on the commitment made by Amcor and Mars Food in December 2020 to deliver easier to recycle packaging for microwaveable food pouches in the first quarter of 2021. This innovation uses Amcor’s proprietary AmLite HeatFlex technology to allow Mars Food to retain the shape, long shelf-life, functionality and high safety standards needed for its ready-to-heat rice packaging whilst adding the benefits of being easier to recycle. Amcor’s recyclable* AmLite HeatFlex® technology has a broad range of applications for food products that require the packaging to be heated either during manufacturing or at-home consumption. The roll-out of Uncle Ben’s® (soon to be rebranded as Ben’s Original®), new pouch coincides with several major UK retailers announcing in-store trials to collect and recycle flexible packaging material such as this.
O-I Glass, Inc. announced a significant investment to support strong customer demand for highly sustainable glass packaging. O-I will invest approximately $75 million in an expansion at its Zipaquirá, Colombia facility. Upon completion by the end of 2022, the project is expected to add nearly 2 percent of capacity to the company’s Americas segment and produce about 500 million bottles annually. “Our customers recognize the strong brand building characteristics and superior sustainability profile that make glass the preferred packaging substrate. In particular, strong market growth and affinity for glass is fueling significant demand for glass packaging in the Andean market. Building on our highly successful expansion at the Zipaquirá facility in 2019, we are excited to add a fourth furnace with an attractive return on investment to support market growth. As a result, the facility will be one of O-I’s largest and most cost effective plants in the global network,” said Andres Lopez, O-I CEO.
Smurfit Kappa has designed a new integrated packaging system following close collaboration with Signify, the world leader in connected LED lighting systems, by designing the BioShift UV-C Chamber Case, used to ship and transport UV-C lights that have significant antibacterial properties, which kill germs and viruses. The new packaging solution is a 100% mono-material paper-based solution, that removes all plastics and reduces the number of packaging materials used, from five to one. The BioShift case is secured by a fit-to-size hood with special multi-use locks. The case is then placed on a corrugated pallet. In addition to providing a more sustainable solution, the new integrated packaging system also reduces costs. The BioShift UV-C Chamber’s lightweight design reduces assembly labour by 50% and reduces storage space by 30% which allows for 16 additional pallets per truck. The new packaging also guarantees 100% security during transport.
With Koehler NexPlus®, the Koehler Group is meeting the rapidly growing demand for sustainable packaging solutions - and this extends beyond just the food industry. Within the framework of an extensive sustainability project, Südzucker is changing all of its packaging to 100% recyclable solutions over the coming years. As part of this, Südzucker has changed the packaging material of its sugar sticks to Koehler NexPlus® Seal paper.
Berry Global Group, Inc. announced its second investment for 2021 in the wipes segment to support the long-term consumer behavior shift towards infection prevention, amplified by the COVID-19 pandemic. The investment, located in Europe, will increase Berry’s production footprint in support of its global customers, with total investments reaching over $110 million in nonwoven materials for products such as hard surface disinfectant wipes. Prior to the demand surge of 2020, the European impregnated wet wipes segment, for home cleaning and disinfecting, was growing at the rate of five percent in the 2014 to 2019 time frame. COVID-19 has increased heightened focus on sanitation and personal hygiene for infection prevention, suggesting permanent consumer trends away from the chore of cleaning to a health and safety priority. “We strategically partner with many of the world’s leading brands with wipe materials, ensuring our investments align with demand for today and for the future. The reliability of our capacity and scale are paramount to our customer support and the trusted relationships we desire to maintain,” said Curt Begle, President of Berry’s Health, Hygiene, and Specialties Division.
We are so excited to announce the opening of our new branch facility in Kansas City, MO! With the growth and expansion of our customer base and sales representation into the Midwest, Kansas City is a prime location to service existing and new customers throughout Kansas, Missouri, Iowa and Nebraska. Our team has been hard at work to get up and running at this new location. We have sales reps, inside sales, warehousing operations, logistics, technicians, and engineers based in and around Kansas City ready to serve this area of the country with the same care and attention that our customers have come to expect.
ePac is excited to announce the opening of its second Canadian location, this time in the Greater Toronto Area. ePac Toronto will open in June of 2021 and will be located at 209 Brunel Road, Mississauga, Ontario. Hila Frish joined as ePac Toronto’s General Manager, bringing over 18 years of management and manufacturing experience to her new position. The facility has begun taking orders, with fulfillment handled by ePac Vancouver until the official opening of ePac Toronto. According to George Boustani, Managing Partner for ePac’s Canadian operation: “We opened ePac Vancouver in December 2019, and realized the same rapid growth we’ve seen in other ePac locations around the world. Our value proposition of 5-15 day turnaround and low minimums resonates well with the Canadian market, and we’re excited to bring our community-based focus to Toronto”.
Metsä Group’s innovation company Metsä Spring and Valmet are building a demo plant in Äänekoski. The plant will manufacture new 3D fibre products for food packaging and other purposes. The demo plant reached its full height on 23 March 2021 with construction work proceeding as planned. The main equipment delivered by Valmet will be installed in the autumn 2021, and the first test runs should begin at the end of 2021 – approximately 12 months after the start of the construction. “The demo plant will test the production of new 3D fibre-based packaging. New packages will be tested with different partners to receive feedback on their market feasibility,” says Veli-Matti Hulkko, Technology Manager at Metsä Spring. The advanced production process is efficient and flexible. Wood fibre from Metsä Group’s mills could be used to produce large volumes of completely ready packages for different purposes.
After breaking ground two and a half years ago, Green Bay Packaging produced the first reel of paper at its new paper mill. According to officials, the construction of the new Green Bay Mill will preserve more than 1,100 Green Bay Packaging jobs across Brown County and over 1,500 jobs in Wisconsin. “These are exciting times at Green Bay Packaging as we ramp up production on our new paper machine. This is the single biggest project in our company’s history, and It certainly would not have been possible without the tireless efforts of our internal people and our many partners and suppliers working together to turn this dream into reality,” commented Will Kress, Chairman and CEO of Green Bay Packaging.
Today a lack of both collection and processing infrastructure makes it difficult to keep waste out of landfill and meet consumer demands for more sustainable packaging. The prototype KitKat wrapper (pictured) demonstrates the opportunity to close-the-loop on recycling soft plastics and has been created by a coalition of companies with a shared vision to resolve the challenge of plastic waste in the environment. Partnering together, Nestlé, CurbCycle, iQ Renew, Licella, Viva Energy Australia, LyondellBasell, REDcycle, Taghleef Industries and Amcor leveraged their individual expertise to collect and process soft plastic waste, turn it back into oil using advanced recycling technology and create the prototype KitKat wrapper.
Total packaging papers & specialty packaging shipments in February decreased two percent compared to February 2020. They were up one percent when compared to the same two months of 2020. The operating rate was 84.5 percent, essentially flat (-0.2 pts.) from February 2020 and up 0.6 points year-to-date. Mill inventories at the end of February increased 4,000 short tons from the previous month and were up 14,000 short tons compared to February 2020.
Fourth quarter 2020 net income from continuing operations was $6.5 million compared to net income from continuing operations of $1.0 million in the fourth quarter of 2019. Net income from ongoing operations, which excludes special items and discontinued operations, was $9.7 million in the fourth quarter of 2020 and $9.9 million in the fourth quarter of 2019. Full year 2020 net loss from continuing operations was $16.8 million compared to net income from continuing operations of $58.5 million in 2019. Net income from ongoing operations was $50.8 million in 2020 and $47.6 million in 2019.
Sonoco ThermoSafe and Unilode Aviation Solutions announce a partnership for the maintenance, repair and handling of Sonoco ThermoSafe’s passive bulk temperature-controlled containers at several key locations. This cooperation will play an important role in enabling the safe and efficient transport of pharmaceuticals and other temperature-sensitive products around the world. Sonoco ThermoSafe’s Pegasus ULD® is the world’s first FAA and EASA-approved passive bulk temperature-controlled container for pharmaceutical use, which enables it to speed through international ground handling and customs processes at the lowest possible cost. Engineered with composite materials, the Pegasus ULD® offers a lighter solution that is substantially more damage-resistant than traditional metal containers. Additionally, the Pegasus ULD® contains a fully integrated, FAA-approved telemetry system, providing real-time, cloud-based data on payload and ambient temperature and key environmental factors, precisely synchronized with GPS location.
DS Smith has announced a £100 million of combined investment in two new packaging sites in Italy and Poland in response to increased customer demand. The investment follows significant growth over the past three years and supports our ambitious plans for further organic growth. With the sustainable paper-based packaging market expected to grow significantly as a result of increased adoption of e-commerce and continued expansion in traditional food and drink markets, the new sites will provide much needed capacity. We arewell positioned to respond to these trends with 85% of the Group’s overall offering focused on consumer goods. Through its focus on recyclable, paper-based packaging, it can also respond to market requirements for solutions to replace single-use plastic.
The Group's consolidated sales reached EUR 2,528.4 million and were therefore close to the previous year's level (2019: EUR 2,544.4 million). A volume-related increase in sales in the packaging division was offset by a price-related decrease in the cartonboard division. EBITDA increased by 2.4% or EUR 9.3 million to EUR 398.9 million (2019: EUR 389.6 million), the EBITDA margin to 15.8% (2019: 15.3%) ). At EUR 231.4 million, the operating result was 9.4% or EUR 23.9 million below the previous year (2019: EUR 255.3 million). Financial income of EUR 1.7 million (2019: EUR 1.4 million) was offset by financial expenses of EUR -7.9 million (2019: EUR -8.4 million). The “other financial result - net” changed to EUR -3.2 million (2019: EUR 2.8 million), primarily due to changes in the foreign currency result. At EUR 222.1 million, earnings before taxes were therefore 11.6% below the previous year (2019: EUR 251.1 million). Income taxes amounted to EUR 59.8 million (2019: EUR 60.9 million), resulting in an effective Group tax rate of 27.0% (2019: 24.3%).
The packaging industry is experiencing an unprecedented change: there is a strong push from both consumers and regulators for more sustainable solutions. As a result, brand owners have set ambitious targets for increasing the share of recyclable and fibre-based packaging. In order to achieve these targets, they need the help of the entire packaging value network; this is a huge opportunity for everyone involved. “The ultimate purpose of packaging is to protect the product during delivery and keep the contents safe to use. With many foods, for example, this means that packaging needs to offer protection against moisture or grease. Today these properties are typically achieved using plastic structures, but we are now working on fibre-based solutions that can satisfy these requirements, while offering additional benefits for climate and recycling,” says Janne Varvemaa, Director, Products and Technology at UPM Specialty Papers.
TC Transcontinental Packaging is thrilled to announce that it has won the Gold Award for Sustainability in the 2021 Flexible Packaging Achievement Awards Competition for the Maxwell House Canada 100% compostable coffee pod lidding and mother bag films. These breakthrough sustainable films are certified BPI (Biodegradable Products Institute) industrial compostable which leaves zero waste, provides an environmentally friendly solution to the popular single serve pod, and responds to the demand for sustainable packaging without sacrificing product freshness, performance and convenience. “At TC Transcontinental, the development of sustainable products is firmly rooted in our long history of social responsibility. This award underscores our leadership position in crafting commercialized, sustainable packaging solutions, and is one of many recognitions for our work in this space including the award-winning recycle ready pouch for loose tea, compostable structure for closed-loop collection, and also compostable whole-bean packaging for coffee. It is gratifying to see how our values of performance, teamwork and innovation have culminated in the development of such an outstanding array of sustainable products,” said Thomas Morin, President of TC Transcontinental Packaging.
Amcor dual-chamber pouch secures Gold achievement award for technical innovation - The Amcor dual-chamber pouch is a specialty multi-chamber pouch with a breathable membrane separating the chambers. The innovative packaging format consists of a peelable device chamber and non-peelable desiccant chamber. The desiccant is kept separate from the device by a vented film allowing the headspace in the two chambers to equilibrate. This leading solution is ideal for moisture sensitive applications such as drug-coated products which may be adversely affected by ambient moisture content. The non-peelable chamber also can be used to house other scavenging technologies including oxygen. Versions of the Amcor dual -chamber pouch are available for both irradiation and ETO sterilization. Shield Pack® clear high-barrier aseptic IBC liner garners Gold achievement award for technical innovation - Amcor’s innovative designers were faced with a challenge: The up-to-300 gallons of aseptic product within a bulk package could not be examined until dispensing occurred due to the bulk package’s metallized structure. Providing extended shelf life and a high barrier were key, while also targeting the clarity manufacturers want. Shield Pack® clear high-barrier aseptic IBC liner provides clarity and durability that distribution demands, while the multi-layer structure safeguards against moisture, oxygen and environmental contamination. This exciting technology extends distribution range, reduces transit failures, improves product quality and color, all while delivering other important attributes, including extended shelf-life, durability and the clear packaging format manufacturers want.
Fourth Quarter 2020 Highlights (as compared to fourth quarter 2019): • Revenue increased 18% to $344.1 million primarily due to an increase in volume/mix primarily driven by increased demand in products with significant e-commerce or building and construction end-market exposure, including wateractivated tapes, protective packaging, and certain other tape products. • Net earnings attributable to the Company's shareholders ("IPG Net Earnings") increased $5.5 million to $17.1 million primarily due to an increase in gross profit, partially offset by increases in SG&A and income tax expense. Fiscal Year 2020 Highlights (as compared to fiscal year 2019): • Revenue increased 4.7% to $1,213.0 million primarily due to an increase in volume/mix primarily driven by increased demand in products with significant e-commerce or building and construction end-market exposure, including wateractivated tapes, protective packaging, and certain other tape products. • IPG Net Earnings increased $31.5 million to $72.7 million primarily due to an increase in gross profit and a gain resulting from a fair value adjustment to the Company's contingent consideration related to the Nortech Acquisition(2) , partially offset by an increase in SG&A.
Pregis announces its new film converting facility in Elkhorn, Wisconsin, and new machinery assembly facility in Germantown, Wisconsin to meet growing e-commerce demands for its Sharp Packaging Systems® by Pregis brand of poly bagging solutions. Production has been moved from nearby East Troy, doubling the number of converting lines. The facility converts multilayer coextruded polyethylene film (which has been blown at its Sussex, Wisconsin facility), into pre-opened bags supplied on a roll or in a box. The bags are used with Sharp Packaging bagging equipment at fulfillment centers to package and ship a broad variety of soft goods, pharma/nutraceuticals, and other non-fragile products. The high-output equipment only requires a small number of operators, enabling packers to social distance. To support the increased demand for equipment, Pregis is also moving its equipment assembly operations from the current Sussex, Wisconsin facility to a new location in Germantown, Wisconsin in Q2. This move enables more efficient assembly layout, double the production space to support current and future growth, and allows additional space for further expansion of its poly converting capacity at the current Sussex facility.
Huhtamaki Flexible Packaging Europe now offers three different tube laminate structures, for use in oral care and cosmetic products, which have been certified to be fully recyclable. The Huhtamaki team, together with partners Plastuni Lisses, member of the Somater Group, and Zalesi, have developed polyethylene (PE) based tubes that have been certified as fully recyclable within the high-density polyethylene (HDPE) container stream by RecyClass, the cross-industry initiative that works to advance plastic packaging recyclability and to establish a harmonized approach towards recycled content calculation and traceability in Europe. “The new recyclable blueloop laminates are a perfect example of effectively implementing sustainable design principles and contributing to the development of the circular economy,” says Jens Pilzecker, Head of Global Tube Laminates at Huhtamaki’s Flexible Packaging segment. “With these laminate structures we help our customers take a big step forward in addressing their sustainability targets as they can now package products in fully recyclable high-barrier tubes. In addition, this innovation is in line with our target of designing 100% of our products to be recyclable, compostable or reusable by 2030.”
Atlantic Packaging is proud to announce that they have joined the Alliance to End Plastic Waste (the Alliance), a non-profit organization committed to ending plastic waste in the environment. In their capacity as an Alliance member, Atlantic will be collaborating with over 80 member companies, project partners, allies and supporters around the world to address this global issue. The Alliance’s mission is to develop, accelerate and deploy innovative and impactful solutions, engage communities around the world, and to catalyze investments.
Smurfit Kappa has approved transformational investment plans for its Mold plant in North Wales, that will further expand capacity at the facility, make it the largest box factory in the UK and allow the company to meet the growing demand for sustainable packaging. The investment in state-of-the-art equipment will reduce CO2 per tonne emissions by 15% at the plant. Commenting on the announcement, Smurfit Kappa UK and Ireland CEO, Eddie Fellows, said, “This investment in North Wales will increase our capability, flexibility and speed of response to deliver unrivalled, innovative packaging solutions to customers across the UK and Ireland. We are determined to meet the future needs of our customers in a sustainable way. It is vital that our investment has benefits for the local community and the environment.”
Amcor and the Alliance share the belief that collaboration and collective action are critical to eliminating plastic waste. Alliance membership also aligns with Amcor’s 2025 Sustainability Pledge to develop all its packaging to be recyclable or reusable by 2025.This new partnership is the latest example of Amcor’s commitment to better waste management and recycling infrastructure. Ron Delia, Amcor CEO, said, “Amcor’s extensive innovation capabilities are delivering packaging designed to achieve the commitment to make all our packaging recyclable or reusable by 2025. But keeping waste out of the environment also requires collaboration across the global value chain for better waste management and recycling infrastructure, and to educate consumers. AEPW serves as a crucial forum for that collaborative effort across parties aligned on the need to deliver more sustainable outcomes. I am excited that Amcor is taking up this leadership role within the Alliance and we look forward to working with the other Alliance members to advance on our shared ambitions for responsible packaging.”
Paper-based packaging leader, Graphic Packaging International emphasizes its commitment to supporting beverage brands on their plastics reduction journey with its latest recyclable paperboard packaging solution, Cap-ItTM. Cap-It is an innovative clip with neck rings for multipack polyethylene terephthalate (PET) or recycled (rPET) bottles. The paperboard clip, made of renewable materials, is an alternative to traditional shrink film packaging, increasing overall pack recyclability to 100 percent.
Berry Global Group, Inc. released its 2020 Impact Report and GRI Index against its Impact 2025 strategy. In addition to this year’s report, Berry has increased its sustainability transparency by adding a comprehensive Environmental, Social, and Governance (ESG) Appendix, Sustainability Accounting Standards Board Response (SASB), and document aligning to the United Nations Sustainable Development Goals (UNSDG). Throughout the report, Berry spotlights its sustainability achievements from its 2020 fiscal year. In step with Berry’s efforts and commitments to promote a more circular economy, the Company has invested heavily in increased access to recycled content and is helping its customers achieve the growing needs of their consumers. Through its success in package light-weighting, integration of post-consumer resin (PCR), design for circularity, and use of bio-resins, Berry continues to collaborate with customers to meet and exceed their sustainability goals. Notable highlights of progress regarding Berry’s environmental sustainability goals include: *Record percentage of PCR used *Secured access to 600 million pounds of PCR content by 2025 *Increased focus of lifecycle assessments *Announcement of closed loop program with Georgia-Pacific Recycling *Over 165,000 MWh of renewable energy purchased *Reduction in absolute water usage by two percent *ISCC Plus certification for seven sites in 2020, ensuring traceability of circular resins *Reduction of greenhouse gas emissions by seven percent
Amcor has partnered with McKinsey.org, a nonprofit founded by global consultancy McKinsey & Company, to develop recycling and waste management solutions that can be applied across communities in Latin America. Amcor is supporting McKinsey.org’s “Rethinking Recycling” initiative in Buenos Aires, Argentina, which has worked with 5,000 households, trained more than 120 workers and helped communities to recycle a third of their waste. Before the initiative, there was no formal recycling system and only a minority of the population regularly sorted their waste. The project aligns with Amcor’s 2025 Sustainability Pledge and commitment to collaborate with partners globally to promote better waste management and recycling infrastructure.
Arrow Systems, Inc. has announced a partnership with Sihl Group to pair the Arrowjet Aqua 330R with the Sihl ARTYSIO line of flexible packaging materials. This partnership allows customers looking for ways to digitally print and pack flexible packaging inline in a single production step up to 12.75’’ wide with water based, pigment inkjet. “We feel that the flexible packaging space is one that has enormous growth potential," says Shaan Patel of Arrow Systems, Inc. “We understand that the majority of customers in this space are currently outsourcing their flexible packaging needs because, in the past it has been too costly or difficult to produce them in-house. We believe that the combination of the Sihl materials with our pigment inkjet press will allow more customers to begin producing their own short run flexible packaging.”
Although Bag-in-Box is already a very sustainable packaging, by enabling considerable plastic and CO2 reduction, Smurfit Kappa is continuing to focus effort on raw material innovations, especially by incorporating recycled or bio-based resins to our taps and bags, where the food safety regulations allow it. One of the main steps of this initiative has been recently achieved with the ISCC PLUS certification. The Vitop facility in Alessandria, Italy, that produces the best-selling Vitop® original taps for Bag-in-Box is proud to be the first plant in the Bag-in-Box industry to be ISCC Plus certified. The certification recognises that Vitop’s industrial processes and standards comply with the chain of custody of these bio-based and recycled resins. ISCC is a globally applicable sustainability certification system and covers all sustainable feedstocks, including bio-based and recycled resins and plastic packaging.
Fort Dearborn Company today announced that it has acquired Hammer Packaging Corporation. The combined organization takes advantage of Hammer’s state-of-the-art technology to enhance Fort Dearborn’s leadership position in the decorative label and packaging marketplace by further expanding the company’s geographic footprint, capacity and capabilities. With two facilities located in West Henrietta, NY and Rochester, NY, Hammer Packaging has a strong reputation for delivering innovation and quality product to a loyal and valued customer base. The combination will increase both companies’ capabilities to provide an even higher level of product and service offering to customers. The company’s product offering includes: cut & stack, in-mold, pressure sensitive, roll-fed, shrink and stretch sleeve labels as well as flexible packaging.
Smurfit Kappa is proud to announce that its support of and contribution to the UN 2030 Sustainable Development Goals (SDGs) has been recognised by Support the Goals. The company is the first FTSE 100 company to receive a five star rating. The SDGs are a universal call for action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. Agreed in 2015 by world leaders, these goals can only be achieved with the support of businesses. Support the Goals is a global initiative that was established to rate and recognise those businesses that support the SDGs to work towards a more sustainable future. A five star rating is only awarded to companies who are actively involving their suppliers in their efforts towards reaching these goals. For most businesses, a significant amount of their environmental and social impact comes from the supply chain, therefore it is vitally important to help suppliers understand and support the SDGs.
WestRock Company announced that Steven C. Voorhees has decided to step down from his position as president and chief executive officer and a director of the Company for health reasons, effective March 15, 2021. In addition, the Company’s Board of Directors announced that, following a comprehensive search as part of the Company’s long-term succession processes, it has elected David B. Sewell to succeed Voorhees as WestRock’s president and chief executive officer at that time. Sewell has been appointed to the Board of Directors, effective as of when he assumes his new role, and Voorhees will be available to support a smooth transition. Sewell, age 52, brings with him more than 25 years of commercial, marketing, and general management experience. He joins WestRock from The Sherwin-Williams Company, a global leader in the manufacture, development, distribution and sale of paint, coatings and related products, where he most recently served as president and chief operating officer responsible for global operating segments that generated $18.4 billion in sales and are supported by 60,000 team members.
Metsä Group’s innovation company Metsä Spring Ltd has made an equity investment in Montinutra Ltd, a startup converting forest industry side streams into high-value bioactive products. The financing round totals approximately EUR 1 million, and Metsä Spring is participating in the round with current and new private investors. Montinutra intends to produce valuable ingredients for the cosmetics, food and beverage, and pharmaceutical industries using forest industry side streams as its raw material. Metsä Group has two spruce sawmills in Finland, which may provide sawdust for the production. The company focus is first set clearly on SprucegumTM, an extract obtained from spruce sawdust. Sprucegum™ has potential for personal care, cosmetics and foodstuffs as an emulsifying and stabilising ingredient, for example. In addition, health beneficial Qusitol® obtained from sawdust, too, has shown potential for the treatment of lower urinary tract symptoms (LUTS).
Packaging Corporation of America announced that it has discontinued production of uncoated freesheet (UFS) grades on the No. 3 paper machine at its Jackson, AL mill and will begin preparing for the permanent conversion of the machine to linerboard. As previously disclosed, in order to meet strong packaging demand and maintain appropriate inventory levels, the machine temporarily began producing linerboard in the fourth quarter of 2020 and continued producing linerboard in the first quarter of 2021. The mill will now begin preparations to permanently convert the 365,000 ton-per-year No. 3 UFS paper machine to a 700,000 ton-per-year high-performance, virgin kraft linerboard machine, in a phased approach, over the next 36 months. Plans are for the machine to run at its current containerboard production rate for the next 12 to 15 months until the scheduled first phase outage is taken in the second quarter of 2022.
Q4 2020 Highlights • Sales of $1,284 million (compared with $1,275 million in Q3 2020 (+1%) and $1,227 million in Q4 2019 (+5%)) o Operating income of $109 million (compared with $73 million in Q3 2020 (+49%) and operating loss of $(1) million in Q4 2019) o Operating income before depreciation and amortization (OIBD)1 of $181 million (compared with $154 million in Q3 2020 (+18%) and $76 million in Q4 2019 (+138%)) o Net earnings per share of $0.72 (compared with $0.51 in Q3 2020 and net loss per share of $(0.27) in Q4 2019). 2020 Annual Highlights • Sales of $5,157 million (compared with $4,996 million in 2019 (+3%)) o Operating income of $366 million (compared with $261 million in 20192 (+40%)) o Operating income before depreciation and amortization (OIBD)1 of $665 million (compared with $550 million in 20192 (+21%)) o Net earnings per share of $2.04 (compared with $0.77 in 20192)
Greif, Inc. announced an agreement to sell 69,200 acres of timberlands in southwest Alabama to Weyerhaeuser Company for approximately $149 million in cash. Proceeds from the transaction will be applied to debt repayment. While this transaction is subject to tax, the Company has tax losses from other transactions which will substantially mitigate the tax associated with this land sale. Pete Watson, Greif’s President and Chief Executive Officer, commented, “We are pleased to enter into this agreement with Weyerhaeuser Company. Proceeds from the transaction will help to de-lever our balance sheet and accelerate the transfer of Greif’s enterprise value from debt to equity holders in line with our stated financial priorities.”
Pregis is announcing a new 300,000 square foot manufacturing facility in Bethel, Pennsylvania. The plant will be producing lightweight, recyclable all-paper cushioned mailers to support demand in the Northeastern region of North America. The facility will house multiple production lines and is scheduled to be operational at the beginning of May. Pregis is currently looking to fill 80 new manufacturing positions, boosting employment opportunities in the region. The facility also has room to expand to meet future demand. “E-commerce is continuing to grow exponentially. Brand owners and retailers are looking for sustainable alternatives to ship their products through the parcel network direct to consumers. Pregis’ investment in this new manufacturing facility is yet another commitment to our robust e-commerce offering and our dedication to sustainable protective packaging options,” said Kevin Baudhuin, president and chief executive officer, Pregis.
Smurfit Kappa is launching its innovative punnet portfolio in Europe. The “Safe&Green” portfolio is Smurfit Kappa’s paper-based, sustainable solution to plastic packaging for fresh produce, and consists of unique designs that are 100% renewable, recyclable, and biodegradable. Recent research by Smurfit Kappa has found that consumers prefer a punnet that balances visibility of the contents with sustainability, with over half (58%) of respondents rating these as the most important attributes of fresh produce packaging. The research also found that 75% of consumers surveyed believe paper-based punnets to be the sustainable choice . In addition, Eurostat's latest figures affirm consumer’s beliefs as it confirmed that 83% of paper-based packaging is actually recycled. As a result, growers and retailers are increasingly selecting sustainable packaging solutions for fresh produce that respond to, and address, a multitude of customer needs.
SCA increases the prices on white and brown kraftliner in Europe by €50 per tonne. The new price is valid from April 1, 2021. “The European kraftliner market continues to be strong and stable”, comments Mikael Frölander, VP Sales and Marketing Containerboard.
Through close and enduring collaboration BillerudKorsnäs and Tetra Pak aim to push the figure of renewable material from wood fibre in carton packages towards 100%. Already today the figure is about 70%. New innovations to further increase the sustainability of packages are since long top of the agenda for both companies. “Our mission is to challenge conventional packaging for a sustainable future. 70 % renewable is a good start, and the only way that we can solve the major sustainability challenges we face is to do it together”, says Malin Ljung Eiborn, Director Sustainability and Public Affairs. The collaborative innovation takes the form of a number of defined projects where experts from the two companies work together. BillerudKorsnäs also work together under the auspices of Treesearch, a Swedish collaboration platform for fundamental research, knowledge and competence-building in the field of new materials and specialty chemicals from forest raw material. It involves academia, industry, private foundations and the Swedish government, and aims to turn pioneering fundamental research into high-tech innovations to meet the climate challenge.
Mill Rock Capital, a growth and operations oriented private investment firm, announced that its portfolio company Mill Rock Packaging Partners LLC has acquired All Packaging Company, a leading specialty paper packaging company focused on various consumer end markets. Mill Rock Packaging is a growth-oriented specialty packaging company focused on leading design, innovation and technology; strong operational capabilities and unparalleled customer service. Terms of the transaction were not disclosed. All Packaging, based in Aurora, CO and founded in 1946, is a leading, full-service provider of specialty paperboard packaging to the food and beverage, health and beauty, pharmaceutical and other consumer end markets. The company's comprehensive service suite includes all requirements of a folding carton program, including graphic and structural design, prepress and proofing, printing and converting, in-house cutting and creasing and ancillary services. Customers rely on All Packaging to create packaging that enhances the consumer experience in both retail and e-commerce environments while maintaining brand integrity. All Packaging operates two facilities in Utah and Colorado.
Mondi Group announces a three-year strategic partnership to support the United Nations World Food Programme’s (WFP’s) efforts to save lives, change lives around the globe. The collaboration will see Mondi make a US$1 million in-kind and financial contribution to help WFP improve how it delivers nutritious food over a complex humanitarian supply chain, with an aim to reduce food waste and mitigate the impact of packaging on the environment. The partnership will draw on the infrastructure, knowledge and expertise from Mondi's corrugated solutions, paper bags and consumer flexibles businesses. Over the next three years, the goal is to develop robust and effective guidance for WFP’s global network of food manufacturers and local suppliers as well as for the wider humanitarian community.
Tetra Pak has announced the introduction of certified recycled polymers, becoming the first company in the food and beverage packaging industry to be awarded the Roundtable on Sustainable Biomaterials (RSB) Advanced Products certification. Its carton packages integrating attributed recycled polymers are now available for food and beverage manufacturers. This move marks a key step in Tetra Pak’s approach to circularity which includes: minimising dependency on fossil-based resources; responsibly sourcing raw materials; designing packages for enhanced recycling and reduced litter; and building partnerships to develop effective collection and recycling infrastructure worldwide.
For the quarter ended December 31, 2020, reported sales increased 12% to $749 million compared to $671 million in the prior year. Core sales, excluding the impacts from changes in currency exchange rates and acquisitions, increased 5%. For the year ended December 31, 2020, reported sales increased 2% to $2.93 billion compared to $2.86 billion reported a year ago while core sales remained flat. The effects of currency translation rates were more than offset by the positive contribution from acquisitions. Cash generated from operations for the year reached $570 million, an increase of 11% over $514 million in the prior year primarily due to better working capital management and the positive impact of recent acquisitions.
Total packaging papers & specialty packaging shipments in January increased two percent compared to January 2020. The operating rate was 85.8 percent, essentially flat (+0.1 pts.) from January 2020. Mill inventories at the end of January increased 2,000 short tons from the previous month and were up 11,000 short tons compared to January 2020.
Novolex® announced that it is adding easy-to-understand recycling instructions to more of its plastic bags and packaging. The announcement comes just weeks after Novolex revealed plans to increase its capacity to recycle plastic bags. Novolex, an industry leader in packaging and foodservice products, will add the How2Recycle® Store Drop-off label to products across its business units. These include products from Shields® such as poly mailers for shipping applications and security bags frequently used in the banking industry; and products from Hilex®, including the iconic “Thank You” plastic T-shirt bags, produce bags for conventional and organic items, and the Load & Seal™ Tamper Evident Deliver Bags, which are growing in demand as to-go orders increase at restaurants.
Michael (“Mike”) A. Weinhold has been named Senior Vice President, Sales - Board, effective February 15, 2021. Mike has held senior leadership positions at Verso Corporation, International Paper and Champion International and brings over 30 years of commercial experience in the paper industry. He will report to Mike Farrell, EVP, Mill Division. We appreciate your support during this time of change. While we work diligently to support your needs and make a smooth transition, we remain focused on the keys to success, including your business and partnership.
Smurfit Kappa announced the launch of a new packing system for its sustainable TopClip product, a paper-based replacement for plastic shrink wrap that bundles beverage multi-packs. This packing system, which is designed for smaller businesses and brands, comes after the launch of their high speed machine with KHS last year. This now completes the portfolio of Smurfit Kappa's end to end solutions for TopClip, ensuring it is suitable for beverage companies of all sizes. The launch of this new packing solution, and the implementation by Czech beer brewer Pivovar Clock, sees the packaging company selected to supply their innovative and sustainable paper-based TopClip for 500ml cans. A modern and creative brewery, Pivovar Clock are noted within the industry for their early adoption of sustainable technology. The brewer uses the latest steam technology and local ingredients to produce their beer.
PEFC-certified wood pulp is at the heart of a ground-breaking new sustainable alternative to plastic packaging by Arjowiggins. Sylvicta® is a translucent, functional barrier paper that preserves the quality of food and cosmetics just as well as conventional plastics, while ensuring limited impact on the environment. This pioneering paper is fully recyclable, compostable, bio-degradable and offers a sustainable alternative to single-use plastic packaging. Aimed at eco-conscious brand owners, retailers and converters, it offers a solution that enables them to reduce or even eradicate the use of plastics in their packaging. Bio-based materials are becoming popular as the foundation for sustainable and flexible packaging. “As a paper manufacturer, Arjowiggins is dedicated to protecting and respecting the environment,” said Christophe Jordan, Managing Director of the Translucent Papers division at Arjowiggins.
Aptar announced that its Activ-Film™ technology was selected to protect a new SARS Rapid Antigen test for COVID-19 that recently received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA). Aptar CSP Technologies’ Activ-Film™ technology is integrated into the diagnostic kit to protect against moisture and other environmental conditions that could otherwise impact test accuracy. Activ-Film™ leverages Aptar’s proprietary 3-Phase Activ-Polymer™ technology, which provides a broad spectrum of custom-engineered protection in a variety of configurations, such as Activ-Vial™ for housing diagnostics dipsticks and Activ-Tab integrated within diagnostic cassettes. This material science-based active packaging technology is currently used to protect a range of electrochemical, lateral flow and molecular diagnostic test kits on the market today.
JobsOhio has provided BurrowsTM with a $400,000 grant to invest in new machinery, equipment and infrastructure at its manufacturing plants in Franklin and Mount Vernon, Ohio. Burrows, a Novolex® brand, will use the grant to support part of its investment for growth at its food-packaging manufacturing plant at 2000 Commerce Center Drive in Franklin and 101 Commerce Drive in Mount Vernon. More than 300 employees work at these facilities. Burrows makes a variety of packaging products for some of the world’s leading casual-dining and quick-service restaurants.
Ox Industries has acquired Corex US, LLC. The Corex facility, located in Stevens Point, Wisconsin is a manufacturer of spiral wound tubes and cores customized for any application. This facility adds high strength paper core production technology for plastic film and paper mills to the Ox converted product line. Ox Industries is again furthering their reach with converted products in the Midwest. Kevin Hayward, Ox Industries’ CEO stated, “We couldn’t be happier about this acquisition. The Stevens Point facility expands our converted products footprint in the Midwest, and we’re adding a solid team to our organization. We welcome the employees and anticipate great things out of this facility.” The Corex US facility will be vertically integrated within the Ox paper mill network and immediately operational.
The Mayr-Melnhof Group has reached an agreement that International Paper Holding sp. zoo ("Kwidzyn") from International Paper for around EUR 670 million and to assume additional liabilities of around EUR 33 million from usufructuary rights and operating leases according to IFRS. The acquisition of Kwidzyn is part of MM's strategy to grow in the high-quality virgin fiber board (FBB) sector with innovative, sustainable and cost-effective qualities. The planned transaction will have an immediate impact on earnings. At the integrated pulp and paper site in Poland, Kwidzyn operates a pulp mill with a capacity of around 400,000 t pa and four connected cardboard/paper machines: the core is an FBB board machine with a capacity of 260,000 t pa.
January–December 2020 (compared to 1–12/2019) • Sales were EUR 1,889.5 million (1,931.8). • Comparable operating result was EUR 221.2 million (184.4) or 11.7% (9.5%) of sales. Operating result was EUR 227.3 million (180.8). • Comparable earnings per share were EUR 0.46 (0.41), and earnings per share were EUR 0.48 (0.41). • Comparable return on capital employed was 12.2% (10.4%). • Net cash flow from operations was EUR 307.7 million (200.5). October–December 2020 (compared to 10–12/2019) • Sales were EUR 473.1 million (478.4). • Comparable operating result was EUR 64.5 million (39.1), or 13.6% (8.2%) of sales. Operating result was EUR 64.5 million (20.0). • Comparable earnings per share were EUR 0.14 (0.09), and earnings per share were EUR 0.14 (0.05). • Comparable return on capital employed was 14.3% (8.9%). • Net cash flow from operations was EUR 81.0 million (89.6).
Metsä Board launches a development programme for its white-top kraftliner mill in Kemi, enabled by Metsä Fibre's new bioproduct mill investment announced today. The development programme is a significant step towards the company's sustainability targets for 2030. Metsä Board and Metsä Fibre are parts of Metsä Group. Metsä Board owns 24.9 per cent of its associated company Metsä Fibre. The development programme will increase the mill's annual paperboard capacity by approximately 40,000 tonnes. The programme includes a series of modernisation and bottleneck investments in the paperboard production line, and as part of the programme, Metsä Board will purchase the modernised unbleached pulp production line with an annual capacity of approximately 180,000 tonnes from Metsä Fibre in 2023. The total investment value of the programme is approximately EUR 67 million, divided in 2021–2023, and mainly in 2023. The development programme will reduce the Kemi paperboard mill’s water consumption by about 40 per cent and energy consumption by about 5 per cent per tonne of paperboard produced. Metsä Board's company-level target is to reduce water consumption by 30 percent and energy consumption by 10 percent per tonne of paperboard produced by 2030 compared to 2018.
Q4 2020 in brief • Net sales decreased 7% to EUR 813 million (EUR 875 million) • Comparable net sales growth was -2% at Group level and -7% in emerging markets • The impact of currency movements was EUR -52 million on the Group’s net sales and EUR -5 million on EBIT. Q1-Q4 2020 in brief • Net sales decreased 3% to EUR 3,302 million (EUR 3,399 million) • Comparable net sales growth was -2% at Group level and -6% in emerging markets • The impact of currency movements was EUR -89 million on the Group’s net sales and EUR -8 million on EBIT • Capital expenditure was EUR 223 million (EUR 204 million) • Free cash flow was EUR 207 million (EUR 226 million)
Net sales for the fourth quarter were $1.4 billion, an increase of $67.5 million, or 5.2 percent, from last year’s quarter. Sales grew during the quarter due to strong volume gains, higher selling prices and acquisition sales net of divestitures. Because of the Company's accounting calendar, the fourth quarter of 2020 included two additional days when compared to the prior year quarter. The GAAP net loss attributable to Sonoco in the fourth quarter was $(11.6) million, or $(0.12) per diluted share, a decrease of $56.5 million, compared with GAAP net income of $44.9 million, or $0.44 per diluted share, in 2019. Base earnings in the fourth quarter were $83.0 million, or $0.82 per diluted share, an increase of $6.6 million, compared with $76.4 million, or $0.75 per diluted share, in 2019.
Atlantic Printing & Graphics has a legacy of meeting our customers needs and growing right alongside them. As our customers’ product lines gain in popularity, we’ve been able to expand our capacity to stay right in step with them. Our latest example of this commitment is the installation of new KBA Wide Format Printer and Bobst Die Cutter. We’ve always operated on a traditional printing press format – 28 x 40 – but we saw an opportunity this past year to branch out and enter new markets. With the KBA 6 color printer, we can print 47.25 x 63.50. This is significantly larger and gives us a whole new capacity and output. We installed the Bobst Die Cutter to support the materials we’re creating on the KBA printer. These pieces of equipment together are incredible and put Atlantic Printing & Graphics in a whole new playing field. We are set up to service and support our current and new large customers with their needs for printing, folding cartons, and much more.
*Reported Results: For the full year 2020, the company recorded earnings from continuing operations of $1.57 per share (diluted), compared with a loss of $2.56 per share in 2019. Current year earnings from continuing operations before income taxes were $353 million, compared to a loss of $261 million in the prior year. Both periods included items management considers not representative of ongoing operations. Cash provided by continuing operating activities was $457 million in 2020, compared with $408 million in 2019. *Segment Operating Profit1: Full year 2020 segment operating profit was $678 million compared to $856 million in 2019. Higher selling prices more than compensated for cost inflation, but were more than offset by the impact of 4 percent lower sales volume and approximately 7.5 percent lower production volume due to the pandemic. Turnaround initiatives, strong operating performance and cost control measures partially offset the impact of lower production levels. *Cash Flows: Cash provided by continuing operating activities was $457 million in 2020, compared with $408 million in 2019. 2020 free cash flow1 was $146 million which exceeded the company’s guidance of more than $100 million free cash flow in 2020.
Key Points *EBITDA of €1,510 million with an EBITDA margin of 17.7% *Strong Free Cash Flow of €675 million *ROCE of 14.6% *Increased sustainability targets including net zero CO2 emissions by 2050 *Successful capital raise of €660 million to pursue attractive growth opportunities *Final dividend increased by 8% to 87.4 cent per share
Sonoco ThermoSafe and AirBridgeCargo Airlines have successfully conducted a test shipment with ThermoSafe’s new Pegasus ULD®, the world’s first passive bulk temperature controlled container for pharmaceutical use that is an approved unit load device. The complexity and duration of the journey made this initial shipment an ideal case study. The entire shipping process involved multiple segments of ground and air transportation, starting in London and including stops in Amsterdam, Moscow and Frankfurt, extending beyond 130 hours. The Pegasus ULD contains a fully integrated, FAA-approved telemetry system, providing real-time, cloud-based data on both payload and ambient temperature and key environmental factors, precisely synchronized with GPS location, which confirmed that the internal temperature held between 2°C and 8°C throughout the entire journey.
Fourth quarter net sales of $1.3 billion increased 3% as reported. Fourth quarter 2020 net earnings were $138 million, or $0.88 per diluted share, which were unfavorably impacted by Special Items of $2 million, after tax. Full year 2020 net sales of $4.9 billion increased 2% as reported. Currency had a negative impact on total net sales of $82 million or 2%. Full year 2020 net earnings were $484 million, or $3.10 per diluted share, which were unfavorably impacted by Special Items of $14 million, after tax.
Mondi has successfully developed a new recyclable functional barrier paper range. Designed with protection in mind, this range of certified recyclable barrier paper solutions is fully integrated across Mondi’s value chain—from paper production to the barrier application—and can run on existing filling lines for form-fill-and-seal (FFS) applications. Mondi’s AegisPaper range reduces the amount of plastic used by replacing it with a renewable resource that has specific mechanical properties, such as puncture resistance, flexibility, printability and barrier protection. Within AegisPaper, there are three grades available for different applications and requirements: *AegisPaper select offers a wide range of custom barrier properties *AegisPaper 95/5 food is certified as fully recyclable and has the best mechanical properties for food applications *AegisPaper reduce provides the thinnest functional barrier paper to reduce amount of packaging material needed
First Quarter Highlights (all comparisons made to the December 2019 quarter) *Net sales of $3.1 billion; 7 percent organic volume growth *Operating income up 53 percent to $304 million *Operating EBITDA up 20 percent to $539 million *Increased fiscal 2021 organic volume growth assumption by 2 percent, now targeting 4 percent. Berry’s Chairman and CEO Tom Salmon said, “Berry’s fiscal 2021 is off to an exceptional start with record first quarter financial results exceeding our expectations. Consumer demand for our products remains consistent and certain markets which previously experienced COVID-19 headwinds are rebounding quicker than we expected.
Expanding its most popular, industry-leading pressure-sensitive adhesive offerings, Mactac® Roll Label Performance Adhesives Group announces new additions to its CHILL AT® and PUREapply® adhesive portfolios. “Brand managers and packaging engineers consistently turn to CHILL AT and PUREapply for high-tack secure label adhesion, long-lasting shelf appeal and brand protection,” says Kim Hensley, Senior Marketing Manager, Mactac Performance Adhesives. “For customers who want to boost their business in 2021 – these products are the game-changers.” The CHILL AT and PUREapply expansion includes a selection of thinner facestock and liner solutions, which not only add more options for the sought-after adhesive offerings, but also deliver customers more labels per roll, increased production, and ensure less label waste.
Berry Global Group, Inc. announced its investment of over $70 million in its United States wipe substrate capabilities. The investment includes a new line, producing additional capacity, and enabling the Company to better serve its global customers as well as support the continuing growth of its business. Berry provides many of the world’s leading brands with wipe materials for infection prevention. Prior to the demand surge of 2020, the impregnated wet wipes segment, specific for home cleaning and disinfecting, was growing at six percent in the 2014 to 2019 time frame. Amplified by COVID-19 prevention, the demand for disinfectant wipes is expected to have permanently shifted to its current, increased use. Berry will add to its broad scope and scale by installing the line in the United States. This investment is complementary to Berry’s existing portfolio and features the Company’s proprietary Spinlace® technology. The U.S. investment has a targeted commercialization date of the March quarter 2023.
Sonoco today announced it will raise the price for all paperboard tubes and cores by a minimum of 6 percent, effective with shipments in the United States and Canada, on or after March 1, 2021. “This price increase is necessary due to continued increases in costs for uncoated recycled paperboard (URB), our primary raw material. URB demand remains very strong, and the supply in the marketplace is extremely tight,” said Mike Thompson, Director of Sales and Marketing for Sonoco’s North America Tubes and Cores Division.
Smurfit Kappa’s planned expansion and modernisation of its paper sacks business in the Latin American market continues at pace. Smurfit Kappa is investing USD $40 million in response to growing market trends and the increasing need for environmentally sustainable paper sacks. In Colombia, a new Windmoller & Holscher paper sacks machine at its plant in Palmira is now fully operational. This, representing a USD $9.5 million investment, which was announced in February 2020, has increased the plant’s production capacity by an additional 100 million multi-ply paper sacks per year, as well as improving the print quality and performance of the sacks. This new line complements the investment made by the Company in 2018, when it expanded its paper sacks plant in the Dominican Republic with an investment of USD $10 million. Improved capability will continue in the second quarter of 2021 with an investment of USD $1 million for the modernisation of Smurfit Kappa´s paper sacks plant in San Jose, Costa Rica.
Highlights - Six Months Ended December 31, 2020: • GAAP Net Income of $417 million, up 65%; GAAP earnings per share (EPS) of 26.5 cents per share, up 71%; • $35 million Bemis cost synergies in H1; expect approximately $70 million (previously $50-$70 million) in FY21; • A further $200 million of share repurchases approved bringing the total announced in fiscal 2021 to $350 million; • Quarterly dividend higher than last year at 11.75 cents per share; and • Fiscal 2021 outlook for adjusted EPS growth raised to 10-14% in constant currency terms (previously 7-12%).
2020 Highlights: *Vision 2025 goals on track following execution of strategic investments, development of new, sustainable fiber-based packaging solutions and the successful pivot to net organic sales growth. *Net Sales were $6,560 million versus $6,160 million in the prior year. *Net Organic Sales increased 5% in the fourth quarter and 4% for the full year 2020 versus the prior year periods. *Net Income was $167 million versus $207 million in the prior year.
Mondi introduces its latest e-commerce innovation. The BCoolBox is a 100% recyclable and reliable packaging solution to keep perishable food cool while in transit. With this product innovation, food stays fresh from the store to the consumer or a pick-up station and offers online retailers the opportunity to expand their geographical reach for deliveries. Benefits of BCoolBox: *Corrugated packaging solution with thermo-insulation keeps food chilled below*7° celsius for up to 24 hours without using a cooling truck*Inner corrugated panels enclose the shipment from all sides, providing enhanced insulation*Ability to use different cooling agents*Made entirely from recycled material and 100% recyclable.
Sonoco announced it is implementing a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning March 1, 2021. Sonoco cited the continuation of extended order backlogs at its mills along with continuing inflation of input costs, especially freight, as the drivers for this pricing action.
Smurfit Kappa has launched a new range of eBottle packaging solutions for the rapidly growing online beverage and liquids market. The new portfolio includes a variety of sustainable solutions for single and multi-pack products, including the Rollor bottle pack, BiPack, and Pop-up insert. The surge in e-commerce due to the Covid-19 pandemic is evident across all sectors and the beverage market has also seen a significant impact. In particular, online sales for alcoholic beverages has increased by 34% in Europe driving a demand for sustainable, durable and consumer friendly packaging that protects the product during shipment. Key challenges for the beverage e-commerce channel are product damage, sustainability, consumer experience and the ability to accelerate growth using the right packing processes. Consumer research carried out by Smurfit Kappa also shows consumers are continuing to push for higher standards.
Georgia-Pacific announced the expansion of its Hummingbird® digital print solutions with the purchase of an HP PageWide T1190 Press, the world’s highest-volume digital corrugated packaging solution. The HP T1190 will be GP’s third inkjet web press installed since 2015 when it launched digital print services with the HP T400S press and subsequently deployed a T1100 110-inch press. GP’s Hummingbird provides a range of digitally printed corrugated packaging solutions for consumer-packaged goods, electronics, and food and beverage brands across North America. Digital print allows for regional or product variations without minimum quantities, variable print, and faster turn on print since print plates are not needed. Digital allows a customer to print only what they need, when they need it – which reduces waste. The press also uses water-based inks, which HP notes does not contain hazardous air pollutants and is also odorless. Hummingbird’s digital offerings include corrugated shelf-ready packaging (SRP), food trays, large-format boxes, e-commerce solutions, and volume displays (POP).
Stora Enso has completed the conversion of its Oulu paper mill for production of packaging board. The pulp mill has been in production since mid-January and the newly converted machine is in a start-up phase. The project began in May 2019 following a decision to invest EUR 350 million, and it was completed within the budget frame. The packaging machine will now be ramped up during the first quarter and is expected to reach its designed production capacity by the end of this year. The new line producing kraftliner will serve global customers in demanding packaging end-uses that require strength, purity and strong visual appearance features. The product, AvantForteTM by Stora Enso, has three fiber layers, making it the strongest kraftliner in Stora Enso’s portfolio. Packaging applications include fresh, fatty or moist food, as well as high-end e-commerce packaging. “Completing the Oulu Mill conversion is an important step in our transformation and responds to increasing global market demand for circular and eco-friendly packaging materials,” says President and CEO Annica Bresky.
UPM Raflatac is pleased to announce that the Association of Plastic Recyclers (APR) has recognized its PE and PP pressure sensitive label materials with general purpose acrylic adhesive for high-density polyethylene (HDPE) containers as meeting or exceeding the most strict APR HDPE Critical Guidance criteria for recyclability. Achieving this Critical Guidance Recognition is an important step in UPM Raflatac’s ongoing quest to label a smarter future beyond fossils. These white and clear PP and PE label materials combined with multipurpose acrylic adhesives are part of UPM Raflatac’s SmartCircle™ portfolio of labeling materials that enable recyclability of packaging and promote the circular economy. The Critical Guidance Recognition means the label materials are proven to be compatible with standard HDPE container recycling practices. They are suitable for a variety of end-uses, including food and home and personal care.
Bernie Chascin, plant manager at International Paper in Bogalusa, announced last week that the company plans to invest up to $52.2 million to increase the plant’s efficiency. The modernization program would upgrade the recovery boiler system, along with filtration, condenser and acid system enhancements in the papermaking process. IP operates a paper mill and an associated corrugated box plant in Bogalusa. The latest project would bring the company’s investment in capital upgrades at the mill to $487 million since the company purchased the site from Temple-Inland Inc. in 2012. International Paper has also increased the number of direct employees in Bogalusa from 411 to 492 during that time, a nearly 20 percent gain.
Packaging Corporation of America reported fourth quarter 2020 net income of $124 million, or $1.30 per share, and net income of $127 million, or $1.33 per share, excluding special items. Fourth quarter net sales were $1.7 billion in both 2020 and 2019. Full year 2020 net income was $461 million, or $4.84 per share, and net income of $550 million, or $5.78 per share, excluding special items. Full year net sales were $6.7 billion in 2020 and $7.0 billion in 2019. In the Packaging segment, total corrugated products shipments with one less workday were up 9.9%, and shipments per day were up 11.7% over last year’s fourth quarter. Containerboard production was 1,174,000 tons, and containerboard inventory was down 13,000 tons from the fourth quarter of 2019 and up 40,000 tons compared to the third quarter of 2020. In the Paper segment, sales volume was down 80,000 tons compared to the fourth quarter of 2019, and down 17,000 tons from the third quarter of 2020.
Nestlé recently announced that its well-known brand, Smarties, will be using recyclable paper packaging for all of its products worldwide! This represents a transition of 90% of the Smarties range, as 10% was already packed in recyclable paper packaging. The rollout of the new material, which will be complete in the UK and Ireland by April, makes Smarties the first global confectionery brand to move to paper packaging, removing approximately 250 million plastic packs sold worldwide every year. The innovative new designs includes sharing bags, multipacks and giant hexatubes made from coated paper, paper labels or carton board, all produced from sustainably sourced and recyclable material. Alexander von Maillot, Global Head of Confectionery at Nestlé, said: “Moving Smarties packaging to recyclable paper is one of our key sustainable packaging initiatives in the confectionery category. It is a further step in realising Nestlé’s ambition to make all of our packaging recyclable or reusable by 2025 and to reduce our use of virgin plastics by one-third in the same period.”
Highlights *Strong volume trends continued throughout the year, with fourth quarter year-over-year volume increases of 15 percent in each of metal containers and closures and 8 percent in plastic containers *Reported record revenue of $4.9 billion, with all-time high volumes achieved in each business segment *Reported cash from operations of $602.5 million, an increase of 19% over 2019 *Completed the acquisition and integration of the dispensing operations of Albéa Group, greatly expanding fragrance, foam and airless pump capabilities *Supported customer and industry efforts to further communicate the benefits of metal packaging for food, including sustainability, low cost, health and convenience *Attained target leverage ratio seven months post-acquisition - leaving the Company well-positioned to take advantage of future cash deployment opportunities
Amcor is applying a three-pronged approach to creating a responsible, more sustainable packaging system. The company is innovating products to be recycled or reused, collaborating with others to make recycling widely available and informing consumers about how to participate in keeping waste out of the environment. Innovating: Amcor invests $100m every year in research and development (R&D) to ensure a world-beating pipeline of innovations that tackle the biggest technical and practical barriers to packaging. Collaborating: Just like the most innovative mobile devices do not reach their full potential without 4G or WiFi networks, effective waste management infrastructures are critical to prevent packaging from ending up in the environment. Informing: Amcor works with its customers to improve consumer understanding and participation in recycling and reuse. Company research has revealed consumer confusion regarding recycling labels – which impacts recycling rates.
Sonoco is pleased to announce it is partnering with Integrated Systems, Inc., a vertically integrated robotics and advanced automation provider, to aid Sonoco’s businesses in continuing to advance its use of automation to improve the efficiency of the Company’s global manufacturing operations. ISI brings 25 years of advanced automation experience working for several well-known global manufacturing companies, including producing numerous custom robotics systems for Sonoco. Under this new agreement, ISI will assist Sonoco in developing and executing its global automation strategy as well as designing, engineering, building, programming, and installing custom-made robotics and automation systems.
Flint Group Packaging Inks has announced the launch of a number of new water-based ink innovations for the Russian Paper & Board packaging market. Andrei Popov, Commercial Director Packaging Inks Russia & CIS at Flint Group Packaging Inks, said: “We are committed to the Russian packaging market and investing heavily in new market-leading technologies to ensure our customers are achieving best in class performance. “Being a highly competitive industry, our new AquaCode range of water-based inks and coatings are designed to give our customers the opportunity to save on the total cost of print. With high speed performance, delivering less downtime and waste, as well as high graphic impact, the range sees our customers at the forefront of next generation ink technology development.”
Flint Group Packaging Inks, a leading provider of print consumables and equipment for the global packaging industry, has confirmed that its new Russian production site is on track for completion despite the challenges of the Covid-19 pandemic. Developed to support Flint Group Packaging Inks’ customers, the new facility, located south west of Moscow in the Kaluga region, further strengthens the company’s leading supply position in the strategically essential Russian packaging market. Importantly, the investment brings the company closer to its customer base by facilitating greater localisation of manufacturing, technical and commercial services and is perfectly positioned to service both local and international package printers.
Mondi, a global leader in packaging and paper, has created three sustainable packaging products for a brand-new range of vegan products from food manufacturer Orkla. The branded consumer goods company worked closely with Mondi to create sustainable, high-performance packaging for the Swedish launch of its Frankful® plant-based Tex Mex range - soft tortilla wraps, tortilla crisps and taco spices. Each bespoke packaging solution has been designed to provide premium product freshness for consumers and ensure a standout appearance on the shelf for retailers. Using a truly collaborative approach, Mondi supported Orkla’s sustainability agenda, which includes launching healthier food products, reducing food waste and offering environmentally-friendly choices. The three Frankful® products benefit from tailor-made packaging that extends shelf life, balances portion control and is recyclable.
UPM Raflatac aims to take the labeling industry to new heights with the company’s newly developed UPM Raflatac Linerless OptiCut™ solution. The in-house developed adhesive technology used in OptiCut is available for each of the primary direct thermal linerless end-use environments – from retailing and logistics, to quick service and takeaway restaurants. OptiCut is the latest example in UPM Raflatac’s portfolio of benchmark-setting labeling innovations and product development. It prevents paper jamming and provides excellent adhesion with minimal adhesive build-up in a wide variety of applications: from rough surfaces to sub-zero temperatures. OptiCut minimizes service time and offers customers a linerless product with maximum uptime of printer applicators, fewer reel changes, and a crisp barcode on the package.
Sonoco announced that its Prepared and Specialty Foods Segment will raise prices for CPET (crystallized polyethylene terephthalate) and PP (polypropylene) thermoformed plastic trays and bowls by 8 percent. The increases will be applied individually, and depending on product category, effective for shipments beginning on February 22, 2021. “These price adjustments are critical to manage continued increases in cost across our business. Thus far, we have offset much of these increased input costs via manufacturing productivity initiatives and supply chain optimization activities, but with continued inflation, we must now pass this cost on to our customers,” said Rolfe Olsen, Segment Vice President – Prepared & Specialty Foods at Sonoco.
Solenis, a leading manufacturer of specialty chemicals, has signed a global partnership agreement with Diversey, a world leader in the hygiene, cleaning and infection prevention industry. With immediate effect, Diversey will become Solenis’ new distribution partner for its complete portfolio of water and process treatment chemicals to the food and beverage industry. “This partnership with Diversey represents another milestone in our history. The combination of Solenis’ extensive portfolio of water treatment chemistries, equipment and technical expertise with Diversey’s cleaning and sanitation solutions, in addition to the channel to market they offer, will be a great asset to the food and beverage industry,” said John Panichella, Chief Executive Officer, Solenis. “We look forward to strengthening our commitment and providing value through a holistic approach to our food and beverage customers globally.”
Metsä Board aims at strengthening its position as Europe’s leading producer of folding boxboard and plans to increase its production capacity. The company has started pre-engineering for increasing the annual production capacity of folding boxboard machine BM1 at the Husum mill in Sweden by approximately 200,000 tonnes. The pre-engineering phase includes also an evaluation of the mill port’s capacity for increased volumes of raw materials and finished goods. The planned investment would further strengthen Husum BM1’s position as the biggest folding boxboard machine in Europe. The final investment decision is subject to the results of the pre-engineering phase. The readiness to make the final investment decision is expected to be achieved in the summer of 2021 and the ramp-up of the additional capacity would start in 2023.
As a keynote sponsor of the 2021 International Dairy Forum, Amcor will demonstrate how it’s reshaping dairy packaging by offering more sustainable solutions and innovative design and delivery, extending shelf life for customers. In addition, Amcor will highlight the latest developments in sustainability and dairy packaging solutions during a webinar Feb. 16 at 1 p.m. EST. The webinar will be hosted by IDFA. “As consumer demands increase, brands know they need smarter and more sustainable packaging strategies in order to break from the pack and truly differentiate themselves,” said Carmen Becker, Vice President and General Manager, Amcor Rigid Packaging, Specialty Containers. “We offer the capabilities that are best suited to meet strong growth in key dairy segments through stellar design, one-of-a-kind preform technology, and industry-leading manufacturing.”
Huhtamaki is investing in a new manufacturing site in Malaysia. In order to better serve its customers and respond to future growth of the sector in Southeast Asia, the company is transferring its Malaysian manufacturing base from Penang to Port Klang, Selangor State, the capital region of Malaysia. The new site is expected to be fully operational by the end of the second quarter of 2021. “By investing in a world-class facility in Malaysia we are creating a platform for future growth in Southeast Asia. The new site is strategically located, it is close to our key customers and has easy access to neighboring countries. We will also use the relocation as an opportunity to modernize our equipment and increase automation to improve efficiency. Our initial focus will be on manufacturing paper cups, as in the existing facility, but the new site will also allow us to expand the product range and introduce new sustainable paper-based technologies as we grow, fully leveraging our global packaging expertise,” says Eric Le Lay, President, Fiber Foodservice EAO.
Packaging leader Smurfit Kappa has launched a new range of eBottle packaging solutions for the rapidly growing online beverage and liquids market. The new portfolio includes a variety of sustainable solutions for single and multi-pack products, including the Rollor bottle pack, BiPack, and Pop-up insert. The surge in e-commerce due to the Covid-19 pandemic is evident across all sectors and the beverage market has also seen a significant impact. In particular, online sales for alcoholic beverages has increased by 34% in Europe driving a demand for sustainable, durable and consumer friendly packaging that protects the product during shipment. Key challenges for the beverage e-commerce channel are product damage, sustainability, consumer experience and the ability to accelerate growth using the right packing processes. Consumer research carried out by Smurfit Kappa also shows consumers are continuing to push for higher standards.
Total Boxboard production in December increased five percent compared to December 2019. It was down three percent when compared to the same 12 months of 2019. The boxboard operating rate was 93.8 percent, up 5.3 points from December 2019 and essentially flat (-0.2 pts.) year-to-date. Solid Bleached Boxboard production in December increased three percent compared to December 2019. It was down four percent when compared to the same 12months of 2019. click read more for the rest of the statistics
At the beginning of January, the PM 7 of Grupo Gondi, one of Mexico's largest paper manufactures, was successfully commissioned at the new Papel y Empaques mill in Monterrey. The paper machine is set to produce 400,000 tons of high-performance light weight recycled containerboard annually with Voith's leading technology. Eduardo Posada, CEO of Grupo Gondi, says: “The plant is one of the most modern recycling board mills in Latin America. The start-up of PM 7 is an important step for us. Together with Voith, we will continue our efforts to increase our market position for high-performance lightweight recycled containerboard in Mexico and Latin America with innovative production solutions.”
H&M is the latest retailer to replace its plastic packaging with paper, joining an increasing number of brands that are adapting their packaging materials to reduce the amount of waste plastic that ends up being thrown away rather than recycled. The international fashion brand has introduced paper packaging to its e-commerce channels that serve millions of customers. Starting with the UK, the Netherlands, Sweden, China, Russia and Australia, H&M, the paper packaging will be rolled out to more countries in the coming year, helping the brand to reach its ‘circular strategy for packaging’. This strategy includes reducing packaging by 25% and designing reusable, recyclable or compostable packaging by 2025.
UPM Raflatac is strengthening its position in the fast-growing linerless labelstock market by scaling up its production capacity and building a new production line in Nowa Wieś, Poland. Direct Thermal (DT) linerless labeling is a cost-efficient and sustainable alternative to traditional label stock. Driven by sustainability trends and the need for increased efficiency, linerless has quickly gained ground alongside traditional labeling technologies. Boosted by growing demand in end-uses such as grocery labeling, logistics and quick service restaurants, the DT linerless market has seen approximately 15 percent year-on-year growth in recent years.
Total Containerboard production in December increased three percent compared to December 2019. It was up four percent when compared to the same 12 months of 2019. December 2020 production of containerboard for export decreased 22 percent compared to the same month last year; it was up nine percent year-to-date. The containerboard operating rate was 93.7 percent, essentially flat (-0.1 pts.) from December 2019 and up 2.3 points year-to-date. Mill inventories of containerboard at the end of December increased 3,000 short tons from the previous month and were up 3,000 short tons compared to December 2019.
Total Packaging Papers & Specialty Packaging shipments in December increased eight percent compared to December 2019. They were up five percent when compared to the same 12 months of 2019. The operating rate was 83.3 percent, up 0.6 points from December 2019 and essentially flat (-0.2 pts.) year-to-date. Mill inventories at the end of December increased 2,000 short tons from the previous month and were up 3,000 short tons compared to December 2019.
Mondi, a global leader in packaging and paper, is launching two new paper-based bags for German pet food producer Interquell, delivering both consumer convenience and sustainability benefits. The pet food manufacturer asked Mondi to create two sizes of paper-based packaging bags with a functional plastic barrier for its sustainable premium Goood dog food. The innovative FlexiBags meet Interquell's goal to reduce the amount of plastic used while ensuring premium product protection and convenient handling for consumers.
Amcor – a global packaging leader – has for the first time reported against SASB’s standards, setting a new benchmark for the packaging industry by becoming the first global diversified packaging company to do so. SASB standards are recognized as best-in-class, enabling businesses around the world to offer greater transparency and improve risk management. This view is shared by the investor community, which has embraced the SASB standard as a means to allow informed decision making on sustainable investing. By reporting against SASB’s Containers & Packaging standard, Amcor is leading the industry with regard to benchmarking and transparency to drive more sustainable performance.
Sappi Europe will introduce new barrier coating technology for functional paper packaging at its speciality mill in Alfeld, Germany, strengthening its position as the leading global provider of sustainable paper packaging solutions. Explaining the decision, Berry Wiersum, CEO Sappi Europe stated: “Expanding the use of our proprietary barrier coating technology underpins Sappi Europe’s drive to maintain our leading position in barrier coated paper as well the commitment we have with our customers in developing innovative future focused packaging solutions which contribute towards a sustainable future” *Investment in sustainable barrier coating technology *Comprehensive expertise in future focused functional paper packaging *Where performance meets environmental accountability. The demand for paper and paperboard packaging continues to rise dramatically as consumers become increasingly mindful of the impact their buying choices have on the environment.
Effective with shipments on or after February 8,2021, WestRock Commercial Print will increase the price of PrintKote® C1S and all PrintKote® specialty SBS products by 3 to 5%.
Amcor announced the ‘Reducing CO2 Packaging’ Label from the Carbon Trust can now be printed on Amcor packaging to demonstrate significant carbon footprint reductions. It’s part of the company’s lifecycle assessment service, which enables brands to measure their packaging’s carbon footprint from raw materials through end-of-use. The announcement comes at a time when sustainability is an increasingly important factor in consumers’ purchasing decisions. Carbon labelling is a way for brands to demonstrate their contributions to a lower carbon economy. Amcor has been leading in the packaging industry in lifecycle assessment expertise since pioneering its ASSET™ lifecycle assessment service over 10 years ago. Detailed packaging lifecycle reports provide fact-based criteria to identify lower environmental footprint options, enabling brand owners to make informed packaging decisions. The company conducts over 1,000 packaging assessments for its customers each year.
The Mondi WorldStar Award winners are: ‘Transit’ category: EnvelopeMailer – by Mondi Corrugated Solutions (Mondi Bupak, Czech Republic); FloralBox – by Mondi Corrugated Solutions (Mondi Tire Kutsan, Turkey); SupremeBox – by Mondi Corrugated Solutions (Mondi Warszawa, Poland); BrakeBooster for aPak AB – by Mondi Corrugated Solutions (Mondi Ansbach, Germany); BrightBox for aPak AB – by Mondi Corrugated Solutions (Mondi Ansbach, Germany) ‘Packaging materials & components’ category: Mono-material film for thermoforming for Hütthaler - by Mondi Consumer Flexibles; PerFORMing for REWE Austria – by Mondi Functional Paper and Films ‘Point of sale’ category: OnePiece –by Mondi Corrugated Solutions (Mondi Tire Kutsan, Turkey) Further details on the award-winning packaging innovations at: https://www.mondigroup.com/en/newsroom/press-release/2021/mondi-celebrates-eight-wins-at-the-2021-worldstar-packaging-awards/
Our resin suppliers are implementing their fifth increase for the year of 2020. The reasons for this increase are continued strong demand and the rising cost of feedstock. Subsequently, Houston Poly must increase prices by 6% effective on all orders placed on or after January 18, 2021. Houston Poly reserves the right to limit order quantities for immediate shipment.
New Packaging Facts Booklet Shares the Great Sustainability Story of Paper-based Packaging - The paper-based packaging industry has long been committed to continuous environmental performance improvement and to transparently conveying the environmental impacts of its operations and products. With growing consumer, business and political interest in packaging and its role in the transition to a more sustainable, circular economy, the opportunities to communicate the inherently sustainable benefits of paper-based packaging with straightforward, credible and relatable information are greater than ever before. Paper Packaging – The Natural Choice provides 7 powerful reasons why paper-based packaging is the natural choice for brands, retailers and consumers, and offers a wide range of supporting facts from credible third-party sources. By fostering a better understanding of the industry’s environmental credentials, Two Sides seeks to ensure that paper products, through their myriad uses, remain an essential part of everyday life.
Stora Enso’s design for eco-friendly pellet packaging was awarded with a prestigious Worldstar award. The renewable and recyclable packaging is designed for heavy use in transporting and warehousing of wood pellets for heating. The awarded packaging is a sustainable alternative to the standard plastic bag used in the pellet industry. In the packaging design work, special attention was paid to usability, recyclability and visual appearance. The 12 kg pellet box, which replaces a plastic bag, is easy to bring home from the store thanks to the carrying handle. The packaging is a collaboration between Finnish packaging designer Karoliina Pennanen and the Stora Enso Packaging Automation team.
Huhtamäki Oyj has signed a EUR 400 million syndicated multicurrency revolving credit facility loan agreement (“RCF”) with a maturity of three (3) years. The RCF refinances an existing EUR 400 million credit facility signed in January 2015 and will be used for general corporate purposes of the Group. The RCF has two one-year extension options and the interest margin is tied to three sustainability indicators: 1. Share of renewable or recycled material in products 2. Share of non-hazardous waste recycled 3. EcoVadis rating. “This new financing agreement speaks to how Huhtamaki is serious about its ESG ambitions. By directly linking sustainability to our financing, we are taking yet another step in embedding sustainability in everything we do,” says Thomas Geust, CFO of Huhtamaki.
Polyethylene resin producers are implementing a 5th price increase to the market on all grades of polyethylene effective December 1st, 2020. The polyethylene supply chain has had additional production disruptions with unplanned shutdowns in Texas and Mexico. These outages have tightened an already stressed supply chain for raw material as demand for PE products continues to remain strong. Consistent with this market change, effective with orders placed on or after February 6th, 2021 for immediate shipment (normal lead times), Heritage Bag will increase stock pricing on all can liner and food bag products by 6%. Non-guaranteed contracts will also be raised 6% on that date. We are unable to extend additional price protection or accept loading orders in advance of the price increase.
It has been nearly 3 years since our last increase and over that period of time we have experienced rising prices on paper and boxes 9% as well as other raw materials, components & labor rates. We are persistent in our efforts to improve our processes, however the price escalations have exceeded productivity gains. We must raise our prices 3-1/2% effective on all orders placed on or after 02/01/2021.
Industrial Packaging Corporation (IPC) has announced the addition of a new Kraft Paper Honeycomb panel line in Arcadia, WI, located 40 miles northwest of La Crosse, WI. This new equipment adds to IPC’s Honeycomb capacity, currently supplied from Wilton, IA. With two Honeycomb operations in the Upper Midwest, IPC will better service the states of Wisconsin, Minnesota, North Dakota, and South Dakota. Additionally, this will free up capacity restraints in the Wilton, IA facility to better serve Iowa, Nebraska, Kansas, Missouri, and Illinois. IPC is a family owned and has been in business since 1989. In addition to Kraft Paper Honeycomb, IPC manufactures Build Up A-flute products of Angle Pads, U Channels, and Flat Pads, in Tomahawk, WI, Arcadia, WI and Fort Payne, AL.
Due to rapidly increasing feedstock and logistic costs coupled with continued strong demand for plastic products, Berry Global’s raw material suppliers have informed us the previously announced 5th polyethylene price increase will be implemented effective December 1, 2020. In addition, those same suppliers have announced an additional increase for January 1, 2021 which, should it go into effect, will be the subject of a future announcement. Because of the December 1st resin increase, Berry Global will implement a price increase of 6% - 8% (product line specific) on all Can Liners, Food Bags, Table Covers, Aprons, Bibs, Poly Boots and Poly Gloves. This increase will take effect with all orders placed on or after February 8, 2021. Berry Global reserves the right to limit the size of orders to historical quantities to better serve the anticipated demand of our customers. All orders must call for immediate delivery.
SCA will increase the price of White and Brown Kraftliner by €50 per tonne. The new price is valid for deliveries from February 1, 2021. “The market is characterized by a very strong demand for Kraftliner” says Mikael Frölander, Vice President Sales & Marketing Containerboard.
E-commerce may be booming, but the packaging that items come in has become a concern for consumers. What can designers do to make packaging affordable, reliable and eco-friendly? Delivery services and e-commerce have seen a jump in demand as more people than ever are working, learning and socialising from home. This increase in online shopping has a downside, however – a corresponding rise in waste. These interrelated trends have shone a spotlight on the role of packaging. How a product looks – and ships – plays an essential role in the decision to buy an item, the process by which it arrives at a home and the way it eventually leaves. With the at-home economy likely to continue at least in the near future, increasing the sustainability of packaging will be key to reducing the carbon footprint of e-commerce.
Please be advised that KODIAKOOLER® will generally increase prices on all products effective January 31st, 2021. This decision did not come lightly as many factors contributed to the necessary change including: Increase costs of our raw materials; Increases in freight from our shippers and logistics; Increase cost and demand brought on by COVID-19; Increase costs of labor. Please be assured that KODIAKOOLER has made every effort to keep this increase to a minimum and will continue to monitor current situations that could affect future price structures.
ePac Flexible Packaging is excited to announce the opening of ePac Seoul, Ltd., its first location in South Korea. ePac Seoul is now open to take orders and will be located about 90 minutes outside of Seoul at 3F, Building C, 195-20, Jayumuyeok-gil, Baeksan-myeon, Gimje-si, Jeollabuk-do, Republic of Korea 54325. The new location will be managed by ePac Holdings Asia in partnership with ePac Holdings and CC Labs, a South Korean company. ePac Seoul’s managing director is Mr. Kim Min-Choel. According to Mr. Kim: “With small and medium-sized businesses accounting for 99% of all South Korean enterprises, 89% of employment, and strong government support, we’re excited to enter this market.
Mondi has agreed to acquire 90.38% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.Ş from International Paper for a total consideration of €66 million. The implied enterprise value on a 100% basis would amount to around €88 million. Olmuksan is a leading and well-established corrugated packaging player in Turkey, listed on the Istanbul stock exchange. Its network of five plants provides a diverse customer base with high-quality sustainable packaging for food, beverage, agriculture and industrial applications. For the twelve months ended 30 September 2020, the Company produced 256 thousand tonnes of corrugated packaging and generated revenues of TRY1,093 million (€150 million). Mondi has operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities. Our current Turkish footprint includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites. Leveraging our expertise and experience in this market, together with our global virgin and recycled containerboard portfolio, we expect to generate significant operational improvements and paper integration upside.
International Paper has entered into an agreement to sell its 90.38% ownership interest in Olmuksan International Paper to Mondi Group for approximately €66 million. The Olmuksan business includes corrugated packaging facilities in Turkey with an approximate annual revenue of TRY1,093 million (€150 million). The transaction is expected to close in the first half of 2021, subject to certain closing conditions and regulatory approvals. This action is in line with International Paper's strategy to serve markets from an advantaged position. Corrugated packaging remains a strategic business for International Paper in EMEA.
For families stuck indoors and desperate for entertainment, a cardboard box can transform into a makeshift playground for the kids or a refuge for the cats. Day to day, though, they have been a crucial if often overlooked link in the nation’s supply chain. But now boxes are piling up in homes across the country because of the explosive growth in e-commerce this year. That’s left the corrugated packaging industry dependent on consumers to recycle the products to support its financial and environmental needs. Corrugated box shipments grew 9 percent in March from the year-ago period, industry data shows, despite a brief dip in revenue when the pandemic’s initial shock froze up the supply chain. But shipments were again soon boosted by retailers’ overstocking of food, cleaning supplies and toilet paper amid the panic buying so prevalent in the early days of the coronavirus pandemic. Shipments continued to climb through the fall, peaking in October, and box makers are on pace to end the year with record production to meet this year’s skyrocketing demand. Click read more below for the rest of the article.
Diversified Labeling Solutions is expanding its Auto ID product offering to include RAIN RFID labels. RFID (Radio Frequency Identification) labels utilize an embedded UHF inlay to transmit data via radio waves to an RFID encoder. They are used in a wide variety of industries including supply chain and distribution, retail, consumer goods and healthcare to increase speed and accuracy of data collection. RAIN RFID is a global alliance promoting the universal adoption of UHF RFID technology. DLS has long been a leading supplier of Auto ID labels, including traditional 1D and 2D barcodes. Adding RAIN RFID labels to their portfolio allows distributors to provide comprehensive Auto ID and smart label solutions to their customers. With access to a huge array of inlays and face sheet materials, DLS can support almost any RFID label construction for stock or custom-printed RFID labels. DLS will also serve as the genuine OEM supplier for TSC Printronix Auto ID labels.
E-commerce has forever changed the way people shop, and now recycled containerboard will change the way products are delivered. While online shopping is always popular during the holiday season, it has increased even more this year, amidst the COVID-19 pandemic. With millions opting to avoid in-person shopping, research firm Forrester expects that online retail sales will grow 24 percent in the United States this holiday season, compared to a year ago. At the same time, shoppers are seeking responsibly packaged products. A report on 2020 U.S. packaging preferences from Two Sides North America Inc. showed consumers prefer paper-based packaging for its environmental attributes, such as recyclability and composability, as well as practical factors like ease of storage. The report also found that consumers are willing to pay more for a sustainably packaged product and will deliberately avoid those that aren’t. click read more below for the rest of the story
How do you build strong brand relationships with consumers in an increasingly complex e-commerce landscape? That is the topic for the first of a series of digital events where we invite you to join us as we explore the latest culture and technology trends together with leading brand owners and industry experts. Starting on January 20, 2021, Iggesund Paperboard launches Unbox, a new series of digital events designed to explore the challenges and opportunities brands face today and in the future. The first Unbox focuses on changes in consumer behaviour and how brands can create engaging experiences through digital channels. And how this puts new demands for purposeful packaging solutions. register at: https://www.iggesund.com/inspiration/unbox-digital-event-series/unbox/?utm_medium=email&_hsmi=103951613&_hsenc=p2ANqtz-8rq0cI_Jz8faKcCJholUOjn4M7F784cPJSFROiiMandNA5_Tdf9FENfHQ__Smkat4G4Em2erzcJkXvqfylPXj84WIVBZfYXWELcjA1JtmzAiXaVmA&utm_content=103951613&utm_source=hs_email
Novolex®, an industry leader in packaging choice, innovation and sustainability, announced it has acquired the business of B&H Bag Company, a leading manufacturer of paper bags and other products. The B&H business will be a part of the Novolex Duro Bag® business, strengthening Duro‘s customer service through increased production capacity. The family-owned company has one manufacturing plant, located outside of Houston, Texas. “We are pleased to welcome the B&H team into the Novolex family,” said Stan Bikulege, Chairman and CEO of Novolex. “B&H brings a strong line of products and a tradition of customer service excellence that we are proud to add to our organization. The talented and dedicated B&H team will be a great addition to our Duro Bag business.”
The use of face masks during the recent pandemic has justifiably grown to hundreds of millions worldwide. However, masks can easily end up littering public places or natural sites. Metsä Board, the leading European producer of premium fresh fibre paperboards and part of Metsä Group, partnered up with a packaging design agency Futupack and corrugated board converter Capertum to manufacture a corrugated mask bin for the specific disposal of face masks. The design of the bins paid special attention to the materials used to produce the bin and the usability and disposability of the bin. Futupack is a Finnish company that designs and implements sustainable packaging solutions. “We wanted the mask bin to be as aesthetic as possible so that it could be placed easily into any indoor environment. The mask bin is delivered flat, and can be quickly assembled. In addition, full instructions on assembly for the consumers are printed on to the bin itself. When the mask bin is full, it is easy to close the lid, and the entire bin can be safely and hygienically disposed of with the incinerated waste,” says Jani Mäkipää, Lead Packaging Engineer at Futupack.
Sonoco-Alcore S.a.r.l. announced it will raise prices for paper-based tubes and cores by 7%. The increases will be applied individually and depending on product category, effective from shipments beginning on 18th, January 2021. “These adjustments are critical to manage continued increases in cost across the business. To date, we have absorbed these costs by further manufacturing footprint optimisation and supply chain activities, but with continued inflation, we must now pass this on to our customers. To secure materials, we must act quickly so we can maintain the strong supply chain our customers need and value from Sonoco,” said Karsten Kemmerling, Director of Sales and Marketing – Tubes and Cores, Europe.
Mondi has launched a new paper EcoWicketBag for Drylock Technologies’ baby diaper ranges, bringing sustainable paper-based packaging to the hygiene market globally. The global hygiene products manufacturer approached Mondi to create a more sustainable alternative to its existing plastic diaper packaging that would travel well, have strong shelf-appeal, and protect the product - while also using renewable resources and significantly reducing its CO2 footprint. “We approached Mondi because of their expertise in paper packaging and their extensive knowledge of the global hygiene market. Consumers are looking for more sustainable packaging that is kinder to the planet without compromising on the integrity of the product. With the EcoWicketBag, consumers can be confident of product quality and packaging sustainability,” said Werner Van Ingelgem, R&D director at Drylock Technologies.
Berry Global Group, Inc. announced its agreement with its longtime supplier, Repsol, to supply circular resins. Spanish multi-energy global company Repsol will supply Berry with ISCC Plus certified circular polyolefins from its Repsol Reciclex® range. These polyolefins are obtained by advanced recycling, enabled by the adoption of new chemical recycling technologies, of post-consumer plastic waste not suitable for traditional recycling. As a result of the agreement, Berry will procure food-grade polypropylene for food and healthcare packaging. Berry will initially use the materials in manufacturing at its European packaging facilities. Repsol has certified all its petrochemical complexes to produce circular polyolefins under the ISCC PLUS certification. This certification guarantees the traceability of the plastic waste used at the source. At the same time, Repsol, applies the latest and innovative technology to ensure that the circular polyolefins have the same quality and functionality as virgin polyolefins
Sealed Air Corporation announced its participation in the United Nations World Food Programme (WFP)’s Innovation Accelerator, an initiative that convenes the brightest minds in science and technology to develop and scale high-potential solutions for ending hunger worldwide. Sealed Air has partnered with World Food Program USA since 2017 in support of its mandate to reach zero hunger and respond to critical needs caused by the COVID-19 pandemic. Through relentless innovation, Sealed Air is developing the next generation of sustainable packaging solutions to address some of society’s most pressing challenges including food safety, eliminating waste, and reducing greenhouse gas emissions. “We’re on a mission to leave the world better than we found it,” said Steve Garland, Sealed Air’s Chief Innovation Officer. “Now more than ever, collaboration is needed to help communities around the world fight hunger. We value the opportunity to contribute Sealed Air’s expertise in science, engineering, research, and development and technological innovation to the World Food Programme.”
Packaging leader Smurfit Kappa has launched a new company called Recycling Dual GmbH to help German manufacturers and retail businesses reduce costs and improve their sustainability efforts, in line with updated legislation. Recycling Dual offers an innovative and integrated holistic solution to track the entire life cycle of paper, cardboard and carton packaging. The unique solution highlights duplication which can be removed from the supply chain and reduce costs. For the first time Recycling Dual guarantees to close the full loop for paper-based packaging for its customers. The service provides them with a holistic solution to ensure packaging from their products is recycled through a nationwide collection system. From 2021, Recycling Dual will be the only company in the market with the ability to track the life cycle of paper, cardboard and carton packaging from production through to being recycled. The company was set up in response to a federal law which was enacted last year requiring stricter recycling requirements for all manufacturers and retailers who use consumer packaging as part of their supply chain, especially for e-commerce companies with e-commerce packaging. The law requires businesses to buy licences for the packaging they use, and with costs expected to increase by up to 30% in 2021, this has led to a greater responsibility being placed on businesses to increase their recycling rates. Additionally, failure to comply can result in significant fines.
Packaging graphics create a first and lasting impression in the minds of consumers when making purchasing decisions. To help our customers maximize this important opportunity, we have amassed deep graphic design and printing expertise, commercialized a robust portfolio of innovative inks and finishes and opened multiple beverage can reprographics studios around the world to help our customers take designs from an initial concept to production-ready artwork. We get great enjoyment from collaborating with our customers to achieve extraordinary results and appreciate that our work continues to be recognized by the industry at large. Here are just a few of the honors we received this year:
E-commerce is booming and this year several sources predict records for the Christmas online shopping. A recent research commissioned by DS Smith reveals that extra 224 million of us will be purchasing our Christmas presents online this year, resulting in 350 thousand tonnes of unnecessary packaging. This could incur in real environmental, reputational and business risks for brands, which is why it is important for brands and retailers to optimize the packaging. At DS Smith, sustainability sits at the heart of our business model and is core to our Purpose of Redefining Packaging for a Changing World. And for that we aim to provide the best service to our customers thinking about the impact on the environment and future generations. L’Oréal shares those views too, and few months ago, we were approached by their team with the challenge of redesigning the E-commerce packaging for their luxury products range.
Packaging leader Smurfit Kappa has joined forces with KHS, one of the world’s leading manufacturers of filling and packaging systems for the beverage and liquid food industries, to roll out its sustainable TopClip multipack product for bundling canned beverages. The partnership brings to the market an end to end solution for beverage companies, including a combined unique and innovative packaging solution and high speed, efficient packaging machines. Launched last year at Smurfit Kappa’s global Better Planet Packaging Day, TopClip is a recyclable solution that replaces the need for shrink wrap, therefore providing an option for substituting plastic with sustainably sourced paper-based packaging. TopClip is free from additional glue, meaning it is 100% plastic free, also allowing for a greater ease to remove or pull apart the cans. The patented product addresses the needs of consumers who are looking to retailers and brands to provide more environmentally friendly packaging. TopClip fully covers the top of can multi-packs, protecting them from contamination and providing excellent consumer handling and branding opportunities. Moreover, the product’s sustainability credentials are further boosted with a 30% lower carbon footprint compared to a shrink wrap consumer pack.
Total Boxboard production in November decreased two percent compared to November 2019. It was down three percent when compared to the same 11 months of 2019. The boxboard operating rate was 91.3 percent, down 1.4 points from November 2019 and down 0.7 points year-to-date. Solid Bleached Boxboard production in November increased four percent compared to November 2019. It was down five percent when compared to the same 11 months of 2019. Recycled Boxboard production in November decreased four percent compared to November 2019. It was down two percent when compared to the same 11 months of 2019. Unbleached Kraft & Gypsum production in November decreased seven percent compared to November 2019. It was down two percent when compared to the same 11 months of 2019.
The American Forest & Paper Association (AF&PA) released its November 2020 Containerboard Monthly report. Total Containerboard production in November increased two percent compared to November 2019. It was up four percent when compared to the same 11 months of 2019. November 2020 production of containerboard for export decreased six percent compared to the same month last year; it was up 13 percent year-to-date. The containerboard operating rate was 93.3 percent, essentially flat (-0.4 pts.) from November 2019 and up 2.5 points year-to-date. Mill inventories of containerboard at the end of November increased 39,000 short tons from the previous month and were down 2,000 short tons compared to November 2019.
Total Packaging Papers & Specialty Packaging shipments in November increased nine percent compared to November 2019. They were up four percent when compared to the same 11 months of 2019. The operating rate was 85.5 percent, up 1.0 points from November 2019 and essentially flat (-0.3 pts.) year-to-date. Mill inventories at the end of November remained essentially flat (-514 short tons) from the previous month and were up 13,000 short tons compared to November 2019.
Cascades Inc. announced that its 86.3% owned subsidiary, Greenpac Mill, LLC ("Greenpac") has entered into an agreement to amend and restate its existing term loan and revolving credit facility that were scheduled to mature in May 2021. The amended credit facilities will mature in December 2023. Greenpac operates a state-of-the-art lightweight containerboard mill, located in Niagara Falls, New York, which manufactures lightweight linerboard made with 100% recycled fibres. The mill has an annual production capacity of 540,000 short tons and employs 168 people.
Cascades is pleased to continue supporting efforts to fight effects of the pandemic. In addition to providing essential products on a daily basis that help meet the needs of Cascades' customers and consumers, the Company has donated more than 150,000 boxes over the course of 2020 to non-profit organizations that are working to respond to the needs of people who are most vulnerable during the COVID-19 emergency. "Cascades has always been committed to helping and being involved in the communities where we do business. The difficult times we are all experiencing have only made this commitment more important," said Mario Plourde, President and Chief Executive Officer of Cascades. "Every year, Cascades provides over 50,000 cardboard boxes to food banks, community organizations and other aid initiatives. Given the current situation, we have tripled these donations to help with the even greater need for transport, storage and delivery of essential food supplies to individuals who are most affected by the crisis. Since the beginning of the pandemic, Cascades has donated more than 150,000 boxes to approximately one hundred community organizations primarily involved in emergency food assistance."
Sonoco is pleased to announce its partnership with the Digital Watermarks Initiative Holy Grail 2.0, an initiative facilitated by AIM, the European Brands Initiative, to prove the viability of digital watermarking for sorting packaging waste and the business case at scale. The Holy Grail 2.0 initiative has the goal of assessing whether digital technology can enable better sorting and higher-quality recycling rates for packaging in the EU. Today, more than 85 partners across the value chain are working together to refine and commercialize this concept.
Stora Enso has decided to invest in centralising and modernising the wood handling capacity at its Imatra mills in Finland. The investment of EUR 80 million will enhance Stora Enso’s production capabilities for premium packaging board. The investment supports the Group’s strategy of sustainable profitable growth through packaging in strong customer segments. The investment is planned to start in Q1 2021 and to be completed in Q3 2022. The Imatra mills produce premium packaging boards for food, beverage and luxury packaging. The purpose of the investment is to modernise the wood handling process in Imatra and centralise it in one of the existing wood yards. The project includes the installation of a new, third debarking line, improvements to chip handling systems, and modifications to the existing wood yard infrastructure. The centralised and modernised wood handling capacity will improve the stability and efficiency of the process. In addition, the new, more efficient debarking line will reduce water consumption of the process and lower the environmental impact.
Huhtamaki is investing for further growth in Russia. In order to respond to the fast development of the retail business and egg packaging industry in Eastern and Central parts of Russia, the company is setting up a new fiber packaging manufacturing plant at its existing site in Alabuga, Tatarstan. Preparatory work on the site is under way and production of fiber packaging is expected to begin during the first quarter of 2022. “Russia is one of our key growth markets,” says Eric Le Lay, President for the newly integrated Fiber and Foodservice Europe-Asia-Oceania business segment. “This additional capacity for molded fiber egg packaging enables further profitable growth for us in Russia. The location in Alabuga, Tatarstan, allows us to better serve our customers operating in the fast-developing Central and Eastern parts of Russia,” he continues.
Mars Food announced it will begin to use recyclable mono-polypropylene plastic (PP) for its microwavable rice pouches in 2021. The project will bring to market the industry’s first food-safe, mono-material microwavable rice pouch. Launching with an initial pilot in the first half of 2021, the business has ambitions to further scale the technology across its portfolio beginning at the back half of the year. The use of high performing mono-PP material will allow Mars Food to retain the shape, shelf life, functionality and high safety standards needed for its brands’ packaging, while ensuring pouches can be mechanically and chemically recycled where infrastructure exists, and designed for future recycling where it doesn’t yet. The breakthrough is a result of a three-year partnership between Mars Food and Amcor.
Sonoco announced it is increasing prices for all rigid paper containers and closures sold in North America by 5 percent, effective with shipments on, and after, January 15, 2021. According to Ernest Haynes, Division Vice President and General Manager, Rigid Paper and Closures, North America, this price increase is necessary to recover rapidly rising costs for raw materials used to produce rigid paper containers. “Due to the rising cost of both steel and recovered paper, we are experiencing input cost pressures that simply cannot be absorbed,” Haynes said. “Our operational cost increases have been compounded by the on-going COVID-19 pandemic as it impacts labor, the build-up of inventory and associated carrying costs, which is all connected to ensuring the continuity of supply for our customers. As an essential supplier during these challenging times, our primary focus entails doing everything we can to protect our customers from business related disruptions. We take the challenge seriously in that regard and have embraced extraordinary measures to maintain continuity of supply to meet our customers’ most critical needs.”
Financial Highlights • Half-year profitability shaped by Covid-19 • Volumes building progressively throughout H1 ◦ -4.7% May, +3% October, overall H1 -1.0% ◦ November >+5% • Significant customer wins in Europe and North America driving market share gain • Q1 profitability affected by negative volumes, deflation and Covid related costs • Q2 good rebound in profitability – improving volumes and average Q2 RoS 9.5% • US showing good momentum driven by Indiana plant progress • Strong organic free cash flow +16%
Fourth Quarter Highlights Include (all results compared to the fourth quarter 2019 unless otherwise noted): Net income of $44.4 million or $0.74 per diluted Class A share decreased compared to net income of $65.0 million or $1.09 per diluted Class A share. Net cash provided by operating activities increased by $5.0 million to $200.4 million. Adjusted free cash flow(3) increased by $23.7 million to $173.9 million. Awarded a Gold Rating in sustainability performance for the third consecutive year by EcoVadis. Fiscal Year Highlights Include (all results compared to the fiscal year 2019 unless otherwise noted): Net income of $108.8 million or $1.83 per diluted Class A share decreased compared to net income of $171.0 million or $2.89 per diluted Class A share. Net cash provided by operating activities increased by $65.2 million to $454.7 million. Adjusted free cash flow increased by $78.4 million to $346.2 million.
The Mayr-Melnhof Group has reached an agreement to acquire Kotkamills Group Oyj from the previous owners for an enterprise value of around EUR 425 million; this corresponds to approximately 7.8 times the EBITDA of the last twelve months. With the takeover of Kotkamills, MM Karton will expand its position in the attractive market for virgin fiber board (FBB) and Food Service Board (FSB) and complement its established market position in recycled cardboard. The planned transaction will have an immediate impact on earnings. Kotkamills operates two cardboard/paper machines at the integrated location in Kotka (southern Finland): one FBB / FSB cardboard machine, which was commissioned in 2016 after an investment of more than 180 million EUR, with a current sales volume of around 260,000 t and one planned capacity of 400,000 t; a machine for Saturated Kraft Paper / impregnation paper with a capacity of 170,000 t, which makes the company one of the world's leading suppliers. Kotkamills employs around 500 people and in the last twelve months achieved an EBITDA of around EUR 55 million on sales of around EUR 380 million.
Metsä Group’s innovation company Metsä Spring and Valmet begin construction of the 3D fibre product pilot plant in Äänekoski, Finland. The pilot plant enables testing and further development of the novel process for producing of a new type of packaging solution.The greenfield building will host the pilot line, which converts wood fibre into ready-to-use 3D fibre products, which, in turn, can replace similar packaging solutions made from plastic and aluminium. The goal of the pilot plant project is to develop a new competitive product and the supporting production process and equipment. “Our project is a good example of our role as a pioneering company. We have an ambitious goal to build a significant business based on the top-class know-how of Metsä Group, Valmet and several other companies. We use familiar, sustainably-produced wood fibre as our main raw material and strive to process it into first-class packages while minimising the environmental impact. The pilot plant is developing and testing many new innovations that support, for example, our goal to replace plastic in various packaging solutions,” says Jarkko Tuominen, Project Lead at Metsä Spring.
Amcor, in partnership with thirty-five leading companies in the consumer goods industry, has today announced measures to significantly reduce plastic waste. Amcor and its partners in this coalition – which have a collective turnover of 1 trillion euros - will be enforcing two new design rules to deliver packaging that is easier and more cost-effective to recycle. The first design rule is expected to improve the economic viability of PET bottle recycling by removing colouring pigments and labelling that impact recycling rates. The second design rule will remove materials that are problematic for recyclers from all forms of plastic packaging. By implementing these rules, recycling will become easier, cheaper, more efficient and can scale faster - which will result in less waste leaking into the environment.
Amcor has launched Eco-Tite® R in Europe, the first designed to be recycled, PVDC-free shrink bag for fresh and processed meat, poultry and some cheeses. Amcor Eco-Tite® R is designed to maximise shelf-life, maintain food safety, reduce food waste and can be recycled in existing polyethylene (PE) plastic recycling streams.* This means that more consumers will be able to recycle their meat, poultry and cheese packaging, while enjoying the benefits of longer lasting food. “Through our packaging expertise and commitment to sustainability, the team has overcome a challenge for the industry; developing a high performance shrink bag that’s PVDC-free and recyclable, while maintaining food safety. This is a great step-forward for consumers and an example of how the removal of problematic materials from packaging – something the industry is increasingly focussed on delivering – can provide us with safe, secure and recyclable packaging,” said Rosalia Rosalinova, Marketing Manager for Meat and Fresh Produce at Amcor. Amcor Eco-Tite® R is a multi-layer, mono-PE packaging which maintains a high barrier to oxygen and water vapour even when exposed to high-moisture environments, such as cooler cases and refrigerators.
Corrugated board is traditionally used for packaging to protect berries and fruit throughout the production chain. However, the added value it can give to sales recognition and branding goes even further. Metsä Board, part of Metsä Group, and DS Smith have implemented a modern and top-quality berry box together with their partner network. The packaging is printed using process colour and Full HD technology, which has reduced ink consumption while enabling exceptionally high image quality and bright colours.“The design of the packaging did not use vector graphics commonly used in berry boxes, instead a photo-based multicolour print was printed on the corrugated board. This process was extremely demanding, and required a high-quality coated white kraftliner,” says Ville Laiho from DS Smith, the packaging producer. The EB-flute corrugated board packaging was made using MetsäBoard Pro WKL 175 g/m² as topliner. The berry box is safe for direct contact with food thanks to material made of fresh fibres. In addition, a package made of fresh fibres withstands humid conditions better than a package made of recycled fibres. On the way from the field to the consumer, the moisture conditions can vary considerably, the packaging must therefore protect the product throughout the chain. After use, the corrugated box is also easy to recycle.
Amcor has developed a new hot-fill polyethylene terephthalate (PET) bottle for Colombia’s Nutrea/Frudelca’s breakthrough Frupro protein juice. The new beverage is the latest in a growing category that blends the benefits of natural juice with protein to appeal to health-conscious consumers. “We relied on Amcor as an important partner to deliver an innovative packaging solution that meets the performance test of this new functional beverage,” said Alejandor Gaviria, General Manager of Frudelca. Nutrea/Frudelca is a joint venture between Frudelca, a leading juice supplier, and Nutrea, a food and beverage company. Amcor is a pioneer in the development of PET heat-set technology, which allows beverages to be filled at temperatures up to 185°F (85°C) to ensure product quality and extended shelf life.
While there is no evidence of virus transfer from cardboard, the easily identifiable touch-safe zones can be applied at scale across a range of industries and applications meaning the anti-viral and anti-bacterial packaging provides an additional layer of protection as consumers and workers throughout the supply chain remain wary. Not surprisingly, the importance of products ‘packaged in hygienic packaging’ among consumers with more than half (57%) saying they wash their hands thoroughly after touching e-commerce packaged products and 30% throw packaging away more quickly. DS Smith’s research, conducted with Ipsos MORI, suggests packaging hygiene will continue to be a priority in years to come. The new patented technology is effective across a range of bacteria and viruses including envelope viruses, of which COVID-19 is a member.
"This is the largest investment that the MM Group has ever made in Austria", describes MM CEO MMag. Peter Oswald describes the comprehensive renovation and expansion program for the Austrian MM Karton mill in Frohnleiten in the years 2021-2022 Million euros are invested in sustainability, digitization and capacity expansion to secure the future using the latest technologies. Innovative, fully digitized processes will significantly increase the efficiency of waste paper processing and at the same time reduce the specific consumption of energy and water. The latest production technologies in cardboard manufacture increase product quality and capacities as a prerequisite for further uses of recycled cardboard, for example as a substitute for plastic. Highly automated logistics will significantly accelerate the movement of goods.
ePac is excited to announce the creation of their newest location in Ghana. ePac Ghana is now taking orders and will have all orders fulfilled by ePac UK Silverstone while the Ghana location is being built. “We are fortunate to have a partner in Ghana with all the qualifications we look for when opening a new ePac location. Victor brings a multitude of talents to ePac, cares deeply about the community, and is committed to helping local brands grow. This is precisely ePac’s mission across the globe”, commented Jack Knott, ePac’s CEO.
BASF and the Swedish packaging material manufacturer BillerudKorsnäs have developed a unique home-compostable paper laminate for flexible packaging. It can be used to produce wraps with individually adjusted barrier properties e.g. for cookies, ice cream, cereal bars and dairy items as well as wrappers for fish, meat and cheese freshly sold in supermarkets. And it is a solution that meets today’s requirement for sustainability by being organically recyclable. The multi-layer laminate consists of three basic components: BillerudKorsnäs‘ paper ConFlex® Silk, a sealing layer made of BASF’s certified home compostable and partly bio-based biopolymer ecovio® and BASF’s water-based adhesive Epotal® Eco 3675 X. All components are certified home-compostable according to official European certification schemes for home-composting. The laminate contains a high share of renewables and extends the end-of-life options for multi-layer flexible packaging by being organically recyclable. The new home-compostable solution has the same performance features as conventional multi-layer packaging: it is puncture resistant, shows a good printability, excellent heat-seal properties and can be processed on standard packaging machines.
At Lecta, we are reaffirming our commitment to sustainability by moving towards developing innovative solutions that contribute to reducing our environmental impact and encouraging the circular economy. For this reason, we have substituted the polyethylene film layer with a functional protective barrier, resulting in a 100% plastic-free soft-wrap paper guaranteed to protect the product in optimum condition thereby ensuring the correct storage of Adestor self-adhesive products. With this action, we contribute to an annual reduction of 27 tons of consumed plastic and its equivalent 94,5 tons in CO2 emissions, according to official carbon footprint calculations defined by www.ciel.org (Center for International Environmental Law). Lecta's new soft-wrap paper is 100% recyclable and meets the current EN:13430 standard for recoverable containers and packaging. Moreover, the new soft-wrap paper for Adestor ream-wrapped sheets is FSC® C011032 certified, guaranteeing that our paper is manufactured with cellulose from responsibly managed forests.
Metsä Board has on 1 December 2020 signed an agreement to sell a 30 percent stake in its Husum pulp mill in Sweden. The buyer is the Swedish forest owners’ cooperative (ekonomisk förening) Norra Skog, with whom Metsä Forest Sverige, responsible for Metsä Board’s wood procurement in Sweden, has simultaneously entered into a long-term wood supply agreement. The amendment to the environmental permit for the Husum mill has been approved, and Metsä Board has made the final investment decision on the first phase of the pulp mill renewal. The first phase of the investment includes a new recovery boiler and turbine and its total value is approximately EUR 320 million. Expected start-up for the new recovery boiler and turbine will be in H1 2022. The valuation of the Husum pulp mill (enterprise value) to be applied in the transaction at the time of closing is approximately EUR 875 million, including the completion of the ongoing recovery boiler and turbine investment. The valuation corresponds to a value of approximately EUR 1.2 billion after the completion of the second phase of the pulp mill renewal, i.e. the new fibre line. The transaction will decrease Metsä Board’s net debt by approximately EUR 260 million at the time of closing, and additionally reduce Metsä Board’s financial contribution in the second phase of the pulp mill renewal by approximately EUR 100 million. The closing of the transaction is expected to be in January 2021.
Sonoco announced it has completed the divestiture of its Europe contract packaging business to a subsidiary of Prairie Industries Holdings, a Wisconsin-based contract packaging and contract manufacturing firm backed by The Halifax Group, a Washington, D.C.-based global investment firm, for $120 million in cash. Sonoco’s Europe contract packaging business produced net sales of approximately $300 million in 2019 and provides full-service custom packaging and supply chain management solutions to global consumer product goods companies through six contract packaging facilities in three locations and a warehouse all in Poland. The business has been part of Sonoco’s Display and Packaging segment and has approximately 2,600 employees. The divestiture is part of Sonoco efforts to simplify its operating structure to focus on growing its core Consumer and Industrial packaging businesses.