April in review: Empack 2024, International Paper to acquire DS Smith, INC-4 held in Canada

29 Apr 2024 --- April began with Century Aluminum planning the first new aluminum smelter in the US in 45 years. Empack was held in the Netherlands, where we reported live from the show floor. 

Meanwhile, International Paper secured a deal for a full acquisition of DS Smith for £5.8 billion (US$7.2 billion) in what will be one of the industry’s biggest corporate tie-ups. 

With the INC-4 underway in Ottawa, Canada, we looked at new research into plastic production caps. Also, Unilever announced it will draw back on a number of its sustainability pledges. 

Among this month’s news, we look at some of the hottest topics, market dynamics and trends while speaking to some of the most prominent players in the industry.

April 

US decarbonization: Century Aluminum doubles primary aluminum industry with government financing
The US Department of Energy (DOE) Office of Clean Energy Demonstrations chose Century Aluminum Company to begin award negotiations for up to US$500 million in Bipartisan Infrastructure Law and Inflation Reduction Act funding to build a new aluminum smelter as part of the Industrial Demonstrations Program.

With the DOE funding, Century Aluminum plans to build the first new US primary aluminum smelter in 45 years. Upon completion, the smelter would double the size of the country’s current primary aluminum industry. 

Empack 2024 live: Planet Reuse expert highlights rise in European refillable packaging
International Paper will aquire DS Smith.At Empack 2024 in Gorinchem, the Netherlands, April 9–11, Planet Reuse presented its European non-profit platform, aiming to bring the reuse industry together. We spoke to Marcel Keuenhof, sustainable packaging expert at Planet Reuse, about the rise of reusable formats throughout the EU. 

Planet Reuse focuses on knowledge exchange, showcasing reuse solutions and presenting a platform where solutions providers and those interested in reuse solutions can interact. 

International Paper secures full acquisition of DS Smith for £5.8B
International Paper (IP) announced an agreement for an all-share takeover of DS Smith following weeks of speculation. The US-based packaging giant will acquire the entire company for £5.8 billion (US$7.2 billion) and deliver at least US$514 million in pre-tax cash synergies. The terms of the combination value each DS Smith share at 415 pence per share and will result in IP issuing 0.1285 shares for each DS Smith share, resulting in pro forma ownership of 66.3% for IP shareholders and 33.7% for DS Smith shareholders.

Composting Consortium reveals findings from largest ever North American field test
The Composting Consortium released a study analyzing the disintegration of over 23,000 units of compostable packaging in what it says is the largest known field test of certified, food-contact compostable packaging conducted in North America. The study shows higher disintegration rates for compostable plastics than for compostable fibers and suggests differing methods for improvement, such as brands using surface area measurements when testing their compostable products and packaging at compost facilities.

Oxford Economics: Understanding the socioeconomic impacts of a potential global plastic production cap
Oxford Economics found that policy interventions like plastic production caps can have adverse industry effects and impact broader economies. The global plastics and chemicals industry, represented by the International Council of Chemical Associations, commissioned independent economic advisory firm Oxford Economics to analyze the socioeconomic and environmental implications of a cap on virgin plastics production ahead of the Intergovernmental Negotiating Committee’s fourth meeting (INC-4) in Ottawa, Canada.

Taranis announces multi-million investment in chemical recycler for carbon circularity
Taranis Investment invested €10 million (US$10.7 million) into Pryme, a cleantech company specializing in converting waste into plastic products through a fully electrical pyrolysis technology on an industrial scale. Pryme has developed a new cost-effective approach to pyrolysis that allows used plastic to be recycled with a high conversion rate on an industrial scale and with a lower carbon footprint than other recycling methods.

Unilever axes plastic sustainability pledges as calls for tougher legislation grow
European Parliament endorsed the provisional PPWR agreement.Unilever announced it will ax a range of its environmental sustainability pledges, in what the corporation says is a needed and realistic update given current geopolitical issues and the financial pressures put on consumers. In a release, Hein Schumacher, Unilever’s CEO, announced a “new era,” in which shorter-term sustainability goals will be prioritized and increased advocacy made to address issues outside the company’s control. Schumacher revealed that the previous commitment to halve Unilever’s use of virgin plastics by 2025 will be cut to one-third by 2026 — a difference of 100,000 tons of fresh plastic annually.

EU moves forward with new plastic pellet regulation to curb microplastic pollution
The European Parliament voted in favor of a regulation on preventing plastic pellet losses to reduce microplastic pollution. The new rules will require all businesses handling plastic pellets to ensure that losses are avoided. Where spills and losses occur, they will be held responsible. The regulation stipulates that economic operators must establish a risk assessment plan for each installation handling over 1,000 metric tons of plastic pellets annually.

European Parliament endorses PPWR: F&B industry expresses fears over a “web of red tape”
The European Parliament officially endorsed the provisional agreement on the Packaging and Packaging Waste Regulation (PPWR), drawing a mix of concerns and support from the industry. The legislation includes reduction targets, a ban on PFAS, restrictions on excessive packaging, and further single-use product bans. Reduction targets are set at 5% by 2030, 10% by 2035 and 15% by 2040. Restrictions on unnecessary packaging will be imposed, with a maximum empty space ratio of 50% grouped, transport and e-commerce packaging. Manufacturers and importers will also have to ensure that the weight and volume of packaging are minimized.

UK DRS officially delayed to October 2027, glass remains an “outstanding issue”
The UK announced October 2027 as the new launch date for its Deposit Return Scheme (DRS), putting an end to months of speculation. The scheme will encompass PET bottles and steel and aluminum cans but exclude glass bottles. The policy paper published yesterday delineates the scope of the DRS from 150 mL to 3 L, with containers outside this range falling under extended producer responsibility (EPR). This aligns with the Republic of Ireland’s DRS, enhancing compatibility across the UK and Ireland. Glass drink containers will also be in the scope of the EPR, and producers will be charged fees for its management once it becomes waste from April 2025.

By Louis Gore-Langton