Sonoco announced its Tube & Core North America division will implement a tube and core scrap return subscription service, effective July 1, 2020. The subscription service is voluntary and will only be in effect if a customer chooses to return scrap tubes and cores to a Sonoco supplying facility. For many years, Sonoco offered this service at no cost to customers, however fluctuations in the value of the returned materials, along with the rising costs of labor, freight and other processing costs, required leadership to review this valuable offering. When OCC is at or above $90 per ton, Sonoco will continue to offer a core scrap return program with no fees. However, when OCC values drop below $90/ton (RISI’s – Southeast Region – High), a fee of $95 will be added to each invoice for new tube and core shipments. At the point when OCC again increases over the threshold of $90 per ton, the service fee will be removed.
The Mayr-Melnhof Group (“MM”) and a subsidiary of Oaktree Capital Management, LP’s advisory funds (“Oaktree”) have reached a firm memorandum of understanding to transfer MM’s virgin fiber board plants in Eerbeek, the Netherlands, and Baiersbronn, Germany, to Oaktree an equity value of EUR 104.6 million plus net debt according to the final invoice.
Eerbeek and Baiersbronn together have an annual capacity of around 245kt virgin fiber board (FBB), which is produced on two board machines, and employ around 400 people. Sales in 2020 reached EUR 195 million.
The sale corresponds to and is part of MM’s strategy to focus on new acquisitions and growth investments.
“We are pleased that our plants in Eerbeek and Baiersbronn are getting a new owner who intends to invest in their future business development. We would especially like to thank the entire workforce for their great work over the past three decades at MM. The sale offers MM the Possibility of a significant cash proceeds for the further Peter Oswald, CEO of the MM Group.
MM will conduct a consultation process with employee representatives and expects the transaction, which is subject to certain closing conditions and regulatory approvals, also with regard to the latest acquisitions of MM , will be completed in the third quarter of 2021.
“We are delighted with the acquisition of the two virgin fiber board plants, in which we will invest additional capital to strengthen the locations. Over the years we have successfully invested in several packaging manufacturers in Europe and believe that the FBB market offers attractive future growth and innovation opportunities, “says Hermann T. Dambach, Managing Director, European Principal Group, Oaktree.