Weekly Roundup: BillerudKorsnäs acquires US$670 million of Swedish forest

31 May 2019 --- This week in packaging, BillerudKorsnäs completed the acquisition of 350,000 hectares of forest land in Sweden for approximately US$670 million on a debt-free basis and after reduction of deferred tax. The move is part of the fiber-based packaging supplier’s strategy to ensure a long-term competitive and stable wood supply. Also, UK cake producer Mr Kipling switched from using black to recyclable, clear plastic trays across its cake and pie ranges. Neopac launched tubes that contain 75 percent recycled plastic in the tube body and shoulder, while the cap is entirely made from recycled fishing ropes.

In brief: Business news
BillerudKorsnäs entered into an agreement with all shareholders of Bergvik Skog AB concerning a split of Bergvik Skog AB’s forest assets. The agreement implies that BillerudKorsnäs acquires Bergvik Skog Öst AB, which comprises approximately 350,000 hectares of forest land in Sweden, and in connection to that divests 5 percent of the shares in Bergvik Skog Väst AB to Stora Enso. All conditions for the transactions have now been fulfilled and the transactions have been completed today the 31 May. The purchase price for Bergvik Skog Öst AB amounts to approximately US$670 million on a debt-free basis and after reduction of deferred tax. “The repurchase of Bergvik Skog Öst is part of our strategy to ensure a long-term competitive and stable wood supply. Going forward our intent is to find suitable investors to this forest land and thereby ensure long-term wood agreements, rather than tying our capital into forest assets. The process to find suitable investors is ongoing,” noted Petra Einarsson, CEO and President of BillerudKorsnäs.

An example of Miratorg's new ready meal line. Sealed Air unveiled a temperature assurance lab in Singapore designed to support growth in the life sciences and food industries. It is the company’s first such facility in the Asia Pacific region. Supported by Singapore’s Economic Development Board, Sealed Air’s new lab will focus on the application design and testing of custom packaging solutions that protect temperature-sensitive and perishable products for the Asia Pacific region’s life science and food customers and logistics partners. Customized solutions will be developed based on internal payload type, thermal needs, external temperature profiles, shipping lanes and delivery duration. “Leveraging Sealed Air’s suite of solutions that provide thermal insulation for up to 120 hours, the Singapore lab will provide companies with a one-stop solution for temperature assurance packaging requirements,” said Susan Bell, Sealed Air’s Vice President and General Manager of Bio and Thermal Assurance. “Singapore’s position as a regional bio-pharmaceutical hub, and the city’s excellent connectivity and infrastructure make this location a conducive environment from which Sealed Air can serve customers.” 

Micvac formed a partnership with Miratorg, a leading Russian producer of meat-based ready meals. Using the Micvac system, Miratorg launched a series of fresh chilled ready meals in the Moscow region. The meals are on offer in shops and supermarkets that cater to office workers looking for a healthy, tasty alternative to their usual business lunch, or an easy, delicious evening meal after work. In order to introduce consumers to the new line of Miratorg products, the company is currently holding a series of tasting and sampling events in shops and supermarkets. Consumers can taste the freshness and quality of the meals for themselves. The reaction has been so positive that, within the tasting periods, the sales in these supermarkets have tripled, the company says.

Neopac's new tubes: the body and shoulder are made from 75 percent recycled plastic and the cap is made from 100 percent recycled fishing nets.In brief: Plastics news
Mr Kipling – a founding member of the UK Plastics Pact – switched from using black to recyclable, clear plastic trays across its cakes and pies, including national favorites Viennese Whirls and Cherry Bakewells. Today, almost 70 percent of the plastics the company uses within its product packaging is recyclable. Black plastic cannot currently be classified as widely recycled in accordance with On-Pack-Recycling-Label (OPRL) guidelines. Even though the black material used is recycled content and the black trays are recyclable, UK recycling centers do not currently have the optical sorting equipment needed to identify it, resulting in black trays often getting sent to landfill or incineration. Mr Kipling pledged to achieve 100 percent recyclability across all of its plastics packaging by 2025.

Neopac launched tubs containing 75 percent recycled plastic in the tube body and shoulder. The tubes also boast a cap which is made entirely from recycled fishing ropes. This plastic is suitable for food and composed of PCR and PIR materials and the tubes are available from 19-50mm for filling volumes of 10-300ml. The empty tube is disposed of in the same recycling stream as a conventional PE tube. The tubes are decorated using solvent-free colors and low-solvent varnishes.Veolia's Dagenham Plastic Recycling facility in the UK.

Veolia – an international waste management specialist – announced a further US$1.26 million investment in its Dagenham Plastic Recycling facility in the UK as the demand for recycled plastic continues to increase. The new investment has provided a new granulator, a new processing kit and upgraded the washing process, allowing a 20 percent increase in food grade production responding to the increasing need and interest of manufacturers that are part of the pact. “This is an opportunity for an industry that is getting bad press to become sustainable and this investment shows our commitment to make this a reality. It will help to increase the amount the UK recycles and encourage recyclable materials and designs for products, and discourage the use of harder to recycle options such as black plastic and polystyrene yogurt pots,” said Richard Kirkman, Chief Technology & Innovation Officer for Veolia. “We still have a long way to go to 2025 but it’s extremely positive. Recycling is a chain of events from the manufacturer, consumer to recycler and we need each part of the chain to make changes to have successful scalable results.”

By Joshua Poole