Sappi Europe recently announced that from September 1, 2021, it will increase the prices of all its paperboard and carton board, as well as transjet, basejet and inkjet paper by 8% – 12%. The company said that the cost of raw materials (especially pulp, chemicals and energy) continued to rise unprecedentedly, coupled with extremely high freight, making price adjustment inevitable. Sappi’s sales team will contact customers to discuss details and support implementation.
In terms of ink, Tony rod, President of Commerce, publishing and sheet fed ink (CPS) Department of Flint Group, announced that ink manufacturers seem to have no end in the continuous crisis of raw material supply. He warned that rising costs and reduced supply of raw materials remained the company’s concern.
Flint CPS said in a statement: “in the first half of 2021, the company cooperates with its customer base to deal with challenging market conditions, and hopes that the market will restore some stability by the end of 2021. Unfortunately, the company has not seen any improvement in the supply of raw materials. Coupled with the pressure of global transportation and logistics, all aspects of costs continue to be pushed up. “
Tony rod commented: “flint CPS’s operation and procurement team continues to make unremitting efforts to reduce the multiple growth caused to our business and ensure that our cost base is in the best state. However, it is certain that with the cost in this way, our business will not be able to fully absorb them.”
At the same time, a European paper mill with an annual output of 600000 tons of carton paper was sold by the group, which shocked the European market. The box board factory with an annual capacity of 600000 tons in verzuolo is subordinate to Burgo group, and the acquirer is smeficapa group, a European box board and corrugated box manufacturing giant. The avezzano plant of Burgo group announced that it would not be affected by the move.
This shocked the market. Only in early 2020 did the company complete the conversion of the No. 9 paper machine of the plant from LWC paper to recycled box paper. Now, the group has agreed to sell the factory to smeficapa group. The purchase price is 360 million euros. The transaction is expected to be completed in the fourth quarter of this year.
At present, SKG operates an Ania paper mill in Luca Province in Italy. The plant produces recycled box paperboard on two machines with a total capacity of 200000 tons. The acquisition of verzuolo plant will enable the group to better serve customers. Savilio Meyer, CEO of smeficapa group, pointed out: “verzuolo and SKG’s existing businesses are highly complementary and strategically positioned to provide services for southern Europe and other markets.”
The Burgo group reported that it would continue to operate the carton board business through its avezzano plant. In 2018, the transformation of avezzano plant marked the entry of Burgo group into the carton board market. The factory used to produce offset paper. After reconstruction, it can produce recycled box board with an annual capacity of 230000 tons.
The company hopes to continue to implement its strategic plan to expand its product range“ Further investment will focus on developing high value-added products for packaging and plastic alternatives, “the company reported. It indicated that a more streamlined financial structure would help to achieve this goal. With quattror taking a stake with Marchi holding group, the transaction will enable it to accelerate the process of industrial restructuring launched in 2020. The two companies formed a joint venture and acquired a 91% majority stake in the Burgo group.
In addition, as part of MetS ä group, MetS ä board decided to invest 210 million euros to increase the cardboard capacity of its Husum plant in Sweden. The company is responding to the growing demand for sustainable production packaging materials to support the circular economy. This investment will further consolidate MetS ä board’s position as a leading producer of cardboard in Europe.
It is reported that the annual capacity of cardboard in mhusum comprehensive factory has increased by 200000 tons. At present, the annual paper jam capacity of Bm1 paper machine is 400000 tons, which will increase to 600000 tons after investment. This new capacity will be put into the market from 2024 to 2025. The construction preparation will begin in October 2021 to cooperate with the planned annual maintenance shutdown of Husum comprehensive plant. The increase of new capacity is expected to start in the autumn of 2023 and reach full capacity by the end of 2025.
This investment will increase the annual sales of MetS ä board by about 200 million euros. In addition, the investment is expected to have a positive impact on the company’s annual comparable EBITDA of approximately € 50 million. Sales growth and EBITDA improvement are expected to be fully realized in 2026. In addition, the new capacity will be mainly aimed at the North American and European markets, and the demand for MetS ä board high-quality lightweight cardboard in these markets is expected to continue to grow. For example, MetS ä board’s cardboard is mainly used for food, drug and cosmetic packaging and food service packaging.
Post time: Jul-30-2021