All for Joomla All for Webmasters

Ianadmin

Ianadmin

2017 07 13 085900L&W Fiber Online for advanced analysis of fiber quality and fiber dimensions – measures fiber properties such as ‎ width, length, shape factor, two classes of fines (P and S) and macro fibrillation.ABB has launched L&W Fiber Online – a reliable, repeatable and cost-effective online system for measuring, monitoring and controlling significant fiber quality variables in paper stock preparation and pulp production. This helps pulp and paper customers to save production costs by optimizing fiber usage, as well as reducing energy consumption through elimination of over-refining, and to improve quality by generating uniform pulp furnish for the paper, board or tissue machine.

  • L&W Fiber Online expands ABB’s offering for pulp measurements to help improve quality and reduce costs for paper producers
  • Compared with other traditional indirect measurements, L&W Fiber Online provides paper makers with complete information on fiber properties, refining effect and fiber mix, to help them monitor and control pulp quality

Compared with traditional indirect measurements such as Canadian Standard Freeness (CSF) and Schopper-Riegler (SR), the measurements based on fiber images provided by L&W Fiber Online provide a more detailed and accurate information on the status of pulp quality. Fiber properties are categorized and presented as mean values and statistical distributions of width, length, shape factor, two classes of fines (P and S) and macro fibrillation.

L&W Fiber Online mitigates the problem of detecting late in the production process quality issues caused by fiber variations. By discovering variations earlier in the process, and as early as in stock preparation, it becomes feasible to take corrective actions in time to produce paper, board or tissue that meets the specifications. This system is based on ABB’s well-known L&W Fiber Tester Plus, a laboratory instrument which is used by hundreds of papermakers to track their pulp quality, and is a preferred tool by research centers and universities around the world. The system also allows for multiple sampling points with a single instrument, reducing initial investment and ongoing maintenance costs. For mixed furnishes,  the optional Blend software analyzes the ratio of reference fiber species in a fiber mix, making  it possible to save raw materials when switching grades or during start-up.

“We can now offer a robust unit that tells the complete story of the fibers in real time, which gives our customers an easy way to pinpoint and follow trends on furnish quality, and at the same time help them to reduce variations in stock preparation or pulp production, as well as saving energy” says Anna Schärman, Global Product Manager, ABB Pulp & Paper products.

About ABB

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 132,000 employees. www.abb.com

International technology Group ANDRITZ has received an order from Vajda Papír to supply a complete tissue production line for its mill in Dunaföldvár, Hungary. Start-up is scheduled for March 2018.

The order comprises a PrimeLineCOMPACT VI tissue machine with steel Yankee and shoe press as well as a complete stock preparation system, including pumps, automation, electrification, all auxiliaries, and services.  

2017 07 13 085024PrimePress XT Evo, the latest ANDRITZ shoe press technology. “Photo: ANDRITZ”.

The stock preparation system includes an FSV pulper, which is equipped with the latest design of energy-saving rotor, three proven ANDRITZ double-disc TwinFlo refiners, a ModuScreen CP protection screen with rotating cylinder, and a low-energy ModuScreen HBE headbox screen.

The ANDRITZ tissue machine has a design speed of 2,200 m/min and a width of 2.74 m. It is equipped with a PrimePress XT Evo, the latest ANDRITZ shoe press technology. PrimePress XT Evo ensures both improved dewatering and better product quality, thus reducing the need for thermal drying. As a result, the energy demand of the tissue machine with shoe press is substantially lower. Perfect edge control is provided by a new, patented control system. The 16 ft. Yankee is made entirely of steel, thus enabling safe operation and efficient drying.

This order once again confirms ANDRITZ’s excellent position as one of the global innovation drivers in the tissue market. ANDRITZ has numerous successful reference plants across the globe, thus demonstrating its strong market position as one of the world market leaders for supply of complete tissue production lines, key components, and services.

Vajda Papír is one of Europe’s most dynamically expanding tissue producers. The 100% Hungarian-owned private company operates tissue production mills in Hungary and Norway and covers the complete tissue product range. Vajda Papír, with its top-quality “Ooops!” brand and many other retail brands that are also supplied to international customers, has gained a leading position as supplier in Hungary as well as playing an acknowledged and dominant role in the Scandinavian markets. During its history covering almost two decades, the company has also won several regional and national awards for its business and product quality and strongly focuses on environmentally friendly tissue production, while meeting the highest standards for all internationally known certificates, such as Nordic Ecolabel and BRC.

The ANDRITZ GROUP
ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and for solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass pelleting. Other important business segments include automation and service business. In addition, the international Group is also active in the power generating sector (steam boiler plants, biomass boilers, recovery boilers, and gasification plants) and in environmental technology (flue gas cleaning plants) and offers equipment for the production of nonwovens, dissolving pulp, and panelboard as well as recycling plants. The publicly listed technology Group is headquartered in Graz, Austria, and has a staff of approximately 25,200 employees. ANDRITZ operates more than 250 sites in over 40 countries.

ANDRITZ PULP & PAPER
ANDRITZ PULP & PAPER is a leading global supplier of complete plants, systems, equipment, and comprehensive services for the production and processing of all types of pulp, paper, tissue, and cardboard. The technologies cover the processing of logs, annual fibers, and waste paper; the production of chemical pulp, mechanical pulp, and recycled fibers; the recovery and reuse of chemicals; the preparation of paper machine furnish; the production of paper, tissue, and cardboard; the calendering and coating of paper; as well as the treatment of reject materials and sludge. The service offering includes system and machine modernization, rebuilds, spare and wear parts, on-site and workshop services, optimization of process performance, maintenance and automation solutions, as well as machine relocation and second-hand equipment. Biomass, steam, and recovery boilers, as well as gasification plants for power generation, flue gas cleaning plants, plants for the production of nonwovens, dissolving pulp, and panelboard (MDF), as well as recycling plants are also part of this business area.

2017 07 13 084705Metsä Fibre’s CFB gasification plant in Joutseno, Finland “Photo: ANDRITZ”.ANDRITZ and Metsä Fibre have successfully collaborated on a program to maximize reduction of the use of fossil fuels, as well as improve the overall performance of the lime kiln at the Joutseno mill in Finland. The goal of the program, entitled “Gasification Plant 100% Utilization Rate”, was to maximize the availability of all equipment, including the wood processing plant, dryer, gasification plant, and lime kiln, as well as the lime kiln burner and its heat transfer system.

As a result of the program, the Joutseno mill has now replaced 95% of natural gas being used in the lime kiln with biomass (bark) derived gas. Moreover, the quality of lime product has markedly improved. The cooperation between the two companies will continue with Overall Production Efficiency (OPE) agreements to further fine tune the systems.

The Joutseno 48 MW gasification plant is based on the Circulating Fluidized Bed (CFB) technology developed by ANDRITZ. Other CFB references include a 65 MW CFB gasification plant supplied to Zhanjiang Chenming Pulp & Paper mill in China; which replaces the heavy fuel oil it used earlier in the lime kiln; and a repeat order from Chenming Group in 2015 with a 80 MW CFB gasification plant for its new greenfield pulp mill, Shouguang Meilun in China.

The ANDRITZ GROUP
ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and for solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass pelleting. Other important business segments include automation and service business. In addition, the international group is also active in the energy generating sector (steam boiler plants, biomass boilers, recovery boilers, and gasification plants) and in environmental technology (flue gas cleaning plants), and offers equipment for the production of nonwovens, dissolving pulp, and panelboard (MDF). The publicly listed technology Group is headquartered in Graz, Austria, and has a staff of approximately 25,200 employees. ANDRITZ operates more than 250 sites in over 40 countries.

ANDRITZ PULP & PAPER
ANDRITZ PULP & PAPER is a leading global supplier of complete plants, systems, equipment, and comprehensive services for the production and processing of all types of pulp, paper, tissue, and cardboard. The technologies cover the processing of logs, annual fibers, and waste paper; the production of chemical pulp, mechanical pulp, and recycled fibers; the recovery and reuse of chemicals; the preparation of paper machine furnish; the production of paper, tissue, and cardboard; the calendering and coating of paper; as well as the treatment of reject materials and sludge. The service offering includes system and machine modernization, rebuilds, spare and wear parts, on-site and workshop services, optimization of process performance, maintenance and automation solutions, as well as machine relocation and second-hand equipment. Biomass, steam, and recovery boilers, as well as gasification plants for power generation, flue gas cleaning plants, plants for the production of nonwovens, dissolving pulp, and panelboard (MDF), as well as recycling plants are also part of this business area.

Bekaert Solaronics will supply Metsä Board Kyröskoski mill with a GemDryer® system for coat drying on their BM1, linked with one Energy Recovery System (ERS).

lgo bekaertThe GemDryer® infrared system replaces existing gas infrared equipment. The new drying system from Bekaert Solaronics offers higher input power, higher efficiency and helps to decrease the total running costs.

Bekaert Solaronics and Metsä Board share a long history of partnership and Metsä Board counted once more in the considerable experience of Bekaert Solaronics in the upgrade and optimization of non-contact drying systems. In this new project, the GemDryer® together with Gem9E emitters will increase the drying performance by 20%. They will also meet the customer needs in terms of high power density, high efficiency, flexibility and ease of maintenance.

In addition, the combination of the infrared drying system and ERS ensures significant energy savings by recirculating the final exhaust from the IR hood into the existing air dryer.

About Metsä Board
Metsä Board, previously known as M-Real Corporation, is a leading European producer of premium fresh fibre paperboards including folding boxboards, food service boards and white kraftliners. Metsä Board, part of Metsä Group, has approximately  2 500 employees and totals €1.7 billion of combined sales.
Metsä Board Kyro mill produces high-quality fully coated folding boxboard for packaging and graphic applications.

About Bekaert and Bekaert Solaronics
Bekaert is a world market and technology leader in steel wire transformation and coating technologies. We pursue to be the preferred supplier for our steel wire products and solutions by continuously delivering superior value to our customers worldwide. Bekaert (Euronext Brussels: BEKB) is a global company with almost 30 000 employees worldwide, headquarters in Belgium and €4.4 billion in annual revenue. Founded in 1967, Bekaert Solaronics supplies customized drying and heating systems based on gas and electrical infrared technology to a wide range of industries. Today, more than 1 000 systems have been installed worldwide. The company also provides maintenance services and is available to assist on upgrades or improved energy efficiency of existing systems.

ANDRITZ AUTOMATION, part of international technology Group ANDRITZ, has opened two new US locations in Pensacola, Florida, and Eugene, Oregon, thus demonstrating its commitment to provide its customers with individual and local support.

The local teams are committed to delivering progressive solutions and high-quality support for their customers’ electrical, control, and instrumentation systems in those regions.

2017 07 12 075510ANDRITZ AUTOMATION offices in North America

“The decision to increase our presence in the US was a strategic step in our business growth strategy,” said Milind Karkare, Senior Vice President for the ANDRITZ AUTOMATION Solutions division, which is responsible for serving the automation, electrification, instrumentation, and training needs for a wide range of industries, including local pulp and paper, mining, and lime customers. “These two locations bring us closer to our customers and also increase our ability to serve current and future markets as well as new industries”.

Address and contact details of the two new offices:

ANDRITZ AUTOMATION, Pensacola, Florida:
Contact: Mr. Stephen Stepp, Branch Manager

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Mobile: +1 (850) 460 4436

ANDRITZ AUTOMATION, Eugene, Oregon
Contact: Mr. Carl Robichaud, Branch Manager

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Mobile: +1 (541) 213 1791

The ANDRITZ GROUP

ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and for solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass pelleting. Other important business segments include automation and service business. In addition, the international Group is also active in the power generating sector (steam boiler plants, biomass boilers, recovery boilers, and gasification plants) and in environmental technology (flue gas cleaning plants) and offers equipment for the production of nonwovens, dissolving pulp, and panelboard as well as recycling plants. The publicly listed technology Group is headquartered in Graz, Austria, and has a staff of approximately 25,200 employees. ANDRITZ operates more than 250 sites in over 40 countries.

ANDRITZ AUTOMATION

More than 2,000 ANDRITZ employees worldwide develop automation solutions and products for digitization and
networking of systems and components. ANDRITZ AUTOMATION helps industrial facilities around the world to realize their full potential by maximizing output, minimizing costs, and optimizing operations. The experienced ANDRITZ
AUTOMATION team focuses on the design of electrical, control, and instrumentation systems, drawing on some of the world’s leading simulation, advanced process control, and operator training tools.

Monday, 10 July 2017 08:08

Refreshed looks for Lumi

Stora Enso’s woodfree coated paper brand, Lumi, has updated its appearance. For 20 years, Lumi’s brand identity and recognition have relied heavily on its visual elements, black and white colour and round shaped logo with the brand name in it. Now the old Lumi logo has been updated and also includes an endorsement by Stora Enso. The new identity looks more modern while Lumi’s familiar black and white pattern still remains.

“Lumi has got a refreshed look, still keeping the same great benefits. Lumi has set customer needs first and has modified the product range in order to meet market requirements in the best possible way. Lumi papers offer best-in-class functionality in combination with excellent image reproduction. For applications with exceptionally high demands for strong impact, long-lasting impressions and impeccable quality, there is no better paper than Lumi,” says Heli Ristola, VP, WFC Papers, Stora Enso, Division Paper.

2017 07 10 100822

All its well-known and recognized characteristics are there. The optimal combination between printability and runnability. Natural whiteness. The even surface you can fell with your fingers. The best folding properties in the market. An excellent choice for high end magazines, luxury catalogues and art books. It’s known as Lumi.

Lumi’s new brand elements will be seen in its communication and marketing materials, such as sample folders and other sales support tools, adverts and giveaways as well as wrapper papers on reams and pallets in transportation and warehouses.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 25 000 employees in more than 35 countries, and our sales in 2016 were EUR 9.8 billion. Stora Enso shares are listed on the Helsinki and Stockholm stock exchanges. storaenso.com

Paper division provides best-in-class paper solutions for print media and office use. The wide selection covers papers made from recycled and fresh wood fibre. Our main customer groups include publishers, retailers, printing houses, merchants, converters and office suppliers. Our mills are located predominantly in Europe, and in China. Three of the mills produce paper based on 100%-recycled fibre.

At 1:55 pm on 13 June 2017, the new XcelLine TM10 tissue machine in Jiangxi was successfully started up in a new record time. Thanks to the great cooperation between Lee & Man and the Voith onsite team, it took only 30 minutes from “stock on wire” to “paper on reel”. From the very first parent roll produced the tissue was of saleable quality. All the components and parts of the TM10 are perfectly matched and integrated with each other. This state-of-the-art integration ensured a remarkable start-up performance and will continue to deliver excellent results for our customer over the entire lifecycle of the XcelLine tissue machine.

2017 07 10 100401Harry Ng, General Manager Lee & Man (4th from left); Alfred Lai, Operation Manager Lee & Man (3rd from left) and Daniel Tam, Senior Production Manager Lee & Man (2nd from left) with Thomas Holzer, President Voith Paper Asia (4th from right) and Kurt Yu (3rd from right), Vice President Sales Voith Paper Asia.

With a wire width of 5,600 mm, the TM10 is designed for a maximum operational speed of 2,000 m/min. It will produce 60,000 tons of household tissue annually from virgin fiber. The scope of supply includes the BlueLine stock preparation, approach flow system, broke handling, a white water system and the tissue machine. It features the perfect combination of a NipcoFlex T shoe press to offer remarkable energy savings, a 5.5-meter steel Yankee dryer cylinder to enhance drying efficiency through optimized heat transfer, and a high-performance steam-heated hood to provide the required tissue quality with lower energy consumption. Moreover, the Voith automation package with DCS, MCS and QCS also formed an integral part of the order.

Just one week earlier, in the same factory, the Lee & Man TM9 supplied by Voith Paper successfully reached its operating speed of up to 1,905 m/min within only 14 days. Voith achieved start-up of the TM9 and TM10 in two days form the satisfied customer. Jiangxi is an important tissue production base for the Lee & Man Group, which covers the East Coast market in China. As a strong partner to Lee & Man, Voith helps to set the right course and offers ideal solutions for raising quality and efficiency to the next level.

2017 07 10 100418At 1:55 pm on 13 June 2017, the new XcelLine TM 10 tissue machine in Jiangxi was successfully started up in a new record time.

Established in 1994, Lee & Man Paper Manufacturing Limited is one of the world’s leading paper manufacturers, mainly producing packaging paper and tissue paper with different grades and specifications. The company’s annual production volume in 2016 was up to 5.63 million tons. The company currently has five production locations in China, with a total of 6,500 employees.

About Voith Paper
Voith Paper is a corporate division of Voith and is one of the leading partners and pioneers in the paper industry. Through constant innovations, Voith Paper is optimizing the paper manufacturing process, focusing on developing resource-conserving products to reduce the use of energy, water and fibers. Furthermore, Voith Paper offers a broad service portfolio for all sections of the paper manufacturing process.

About the company
For 150 years, Voith’s technologies have been inspiring customers, business partners and employees around the world. Founded in 1867, Voith today has around 19,000 employees, sales of €4.3 billion and locations in more than 60 countries worldwide and is thus one of the largest family-owned companies in Europe. Being a technology leader, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive.

One of the world’s most widely used forms of packaging – the blister pack – can now be made totally in paperboard. Two major benefits are reduced environmental impact and less consumer rage and self-injury. Blister packs are made to hang on a holder in the retail store and often consist of a paperboard backing plus a moulded transparent plastic front section to display the product to the consumer. The Norwegian converter Moltzaus’s ingeniously designed Cefapac improves both the pack’s environmental performance and its openability, and has already won awards.​

“Our development work had two starting points – environmental impact and ease of opening,” explains Eirik Faukland, the packaging veteran in charge of R&D at Moltzau. “To get around the well-known problem of the extreme difficulty of opening plastic blister packs, the basic concept was to replace the plastic with paperboard. What’s unique with the Cefapac solution is that we chose to replace all the traditional creases with perforations, which gives the desired openability.”

2017 07 10 081238Ski wax from the global leader Swix in an easily opened, plastic-free pack. The pack could just as well hold a deodorant or skin cream from a manufacturer who wants to move from a fossil-based packaging material to a renewable, non-fossil-based one. © Iggesund

However, when perforations replace creases, the risk is that they cannot protect the pack’s contents well enough. The choice of which paperboard to use is therefore crucial. 

“Invercote’s superior tear strength is a prerequisite for a good-quality pack,” Faukland says. “Both the strength and how it performs in the various stages of converting and filling are crucial.” He says another benefit is that in the packs Moltzau has produced so far, the perforations have allowed the customer to increase the speed of the filling lines compared with those using creased packaging blanks.

The world-leading manufacturer of ski wax, Swix, is currently packing some of its waxes in Cefapacs and plans to expand the trial. Other products in Cefapacs already on the market are dressings for wounds and non-prescription medicines. In the autumn of 2015 Cefapac was honoured with a Scandinavian packaging award, Scanstar, and in 2017 will receive the WorldStar award from the World Packaging Organisation.

As the pack’s designer, Eirik Faukland has also been warmly praised by representatives of the Swedish and Norwegian Rheumatism Associations, which represent rheumatism sufferers. The associations actively encourage the packaging industry to develop more easily opened forms of packaging.

Iggesund

Iggesund Paperboard is part of the Swedish forest industry group Holmen, one of the world’s 100 most sustainable companies listed on the United Nations Global Compact Index. Iggesund’s turnover is just over €500 million and its flagship product Invercote is sold in more than 100 countries. The company has two brand families, Invercote and Incada, both positioned at the high end of their respective segments. Since 2010 Iggesund has invested more than €380 million to increase its energy efficiency and reduce the fossil emissions from its production. 

Iggesund and the Holmen Group report all their fossil carbon emissions to the Carbon Disclosure Project. The environmental data form an integral part of an annual report that complies with the Global Reporting Initiative’s highest level of sustainability reporting. Iggesund was founded as an iron mill in 1685, but has been making paperboard for more than 50 years. The two mills, in northern Sweden and northern England employ 1500 people.

Iggesund Paperboard

SE-825 80 Sweden

Tel: +4665028256

www.iggesund.com

A new page-turning promotional lookbook of unique surface design treatments — including arresting images, unconventional diecuts, spectacular printing, and specialty techniques — has just been released by Neenah. The book is crafted on papers from The Design Collection, Neenah’s range of pearlized surfaces, unique textures and dramatic colors, inspired by Italy’s top fashion houses and America’s leading designers.

“These are highly unique papers that naturally draw attention,” says Auburne Gahlman, Associate Brand Manager, Neenah. “With this lookbook, we set out to consider surface design in relation to these extraordinary papers. The result shows how conceptual aesthetics, through means such as line, texture, color, light, and patterning, can be alluring to both hand and eye.”

2017 07 10 074439

The five sections of this sumptuous 30+-page, 8.5 x 10.75 in. book represent the concepts that embody the spirit of The Design Collection: Luxury, Form, Beauty, Function, and Taste. Big dramatic images, either peek from behind short sheets and overlays or instantly wow with the turn of a page. Each spread pairs interesting surface treatments in layered effects, making this book not just eye candy, but a sense of wonder to the touch.

“The Design Collection Surface Issue provides a reference to visual and tactile combinations that designers may draw upon time and again to create unexpected effects for packaging and high-touch collateral,” said Gahlman. Detailed production credits in the back of the book provide insight and reference to the craftsmanship throughout.

2017 07 10 074504

The Design Collection, comprised of 15 specialty paper lines, is a portfolio of premium papers for luxury packaging and high-end print collateral. Offset, digital, and specialty processes are featured in The Design Collection Surface Issue, on STARDREAM®, MONNALISA®, PLIKE®, OXFORD®, EAMES™, STARWHITE®, NATURAL EVOLUTION, CANALETTO, SO…SILK®, WILD® and ESSE® Papers. This is the first time Neenah has featured print demonstrations on ASTROKING® Papers.

“This piece embodies the spirit of the collection — beautifully luxurious papers for when craftsmanship, storytelling, simplicity, transparency, and experience are paramount,” said Gahlman.

Get a free copy of The Design Collection: Surface Issue, valued at $14.99, through your Neenah rep or your local merchant. Find a Neenah distributor here: http://www.neenahpaper.com/resources/findadistributor

About Neenah
For more than 100 years, Neenah Paper (NYSE: NP) has been an innovative leader in the creation and manufacturing of papers for premium writing, text, cover, digital, packaging and specialty needs. The Neenah signature portfolio, including market leading brands such as ASTROBRIGHTS®, CLASSIC®, ENVIRONMENT®, and ROYAL SUNDANCE® Papers. The company also offers envelopes in thousands of unique colors, finishes and styles. Neenah Packaging provides unique and sustainable packaging papers, boards and labels as well as custom solutions for premium and luxury packaging. Neenah is committed to developing relevant mobile and online technologies including Neenah Cabinet™ for iPad, iPhone and Android. With multiple manufacturing facilities in Wisconsin, prime importance is also placed on recycled and alternative fiber products through the Neenah Green initiative. For more information on Neenah call (800) 558-5061. Follow Neenah on Twitter: @neenahpaper; subscribe to the Neenah Facebook page; or visit Against the Grain, Neenah’s blog for designers, printers and paper-lovers.

Europe’s fragmented corrugated packaging industry is expected to enter a period of consolidation prompted by slim margins and firms’ need for a wider geographical presence, according to Rabobank.

Analysts at the specialist food and agribusiness bank have predicted that the number of mergers in the sector is expected to remain at record high levels. Some ten deals have been completed or announced between January and June 2017 – more than three times the number in all of 2011. Next to high activity levels within Europe, the bank expects large European producers will continue looking for opportunities overseas, as demonstrated by DS Smith’s recent agreement to acquire Interstate Resources in the US.

  • European market following example set by US 20 years ago, but at slower pace
  • 109 notable M&A deals in the sector since 2010
  • Top five players only account for 33% of installed containerboard capacity

2017 07 07 082111Such consolidation is similar to trends in the US market witnessed during the last two decades. However, a number of factors mean consolidation is not expected to take place as fast in Europe, according to Rabobank.

In its paper, The European corrugated packaging industry – moving towards the US market structure?, the bank highlights the key drivers behind the consolidation of the fragmented European market.

The first of these is increased margin pressure, which is forcing European players to operate more efficiently and seek to increase their market power.

Second, a consolidated customer base means buyers are increasingly looking for pan-European coverage from their suppliers, including packaging companies.

Finally, the location of production plants, which must be near customers, is driving change. Corrugated board sheets are typically economically viable for a distance of up to 400km, but preferably within 200km. This has led to larger players acquiring smaller competitors in more convenient locations.

Natasha Valeeva, report author and supply chains analyst at Rabobank, said: “The European market has witnessed some notable M&A deals in recent years, but we expect more in the future as firms respond to headwinds in what is still a very fragmented sector.

“We don’t, however, expect this consolidation to happen quite as quickly as in the US. The rate of M&A is being slowed by factors such as high valuations and family-owned companies not ready to sell yet.”

The scope is there for further consolidation. The five largest producers, Smurfit Kappa, DS Smith, Saica, Mondi and Prinzhorn Holding have about a third of the market share in Europe. It is far more fragmented among its competitors: roughly 46% of the market is supplied by containerboard producers who have less than 2% of the market.

Tjard Westbroek, global sector head of supply chains at Rabobank, said: “As market trends, such as environmental footprint, sustainability, access to recycled material and food safety make it more difficult for smaller players to cope with growing investment necessities, it is inevitable that further market consolidation will happen.

“We’re now seeing companies seeking to balance containerboard production and its conversion, while driving vertical integration at the same time.

“Over the coming years we expect smaller producers to be acquired by the bigger players, especially if they’re based across key customer locations on the continent. We think the key aim for larger companies is to be strategic in their locations, making sure they’re able to benefit from economies of scale and avoid unnecessary transportation costs.”

Rabobank serves the global packaging industry providing a full suite of financial services to over 60 leading companies in the sector, and banks more than half of the listed names among them.

Page 10 of 467

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage. Site Terms and conditions

X

Copyright!!

You can only share my content with prior approval..