Beyond The Headlines: American Packaging Corporation opens flexible packaging facility, Smurfit Kappa shares half-year results

04 Aug 2023 --- This week in industry news, the American Packaging Corporation opened its Center of Excellence manufacturing facility in Cedar City, US. Meanwhile, Smurfit Kappa released its first half-year results and custom thermoformer Plastic Ingenuity received the AmeriStar Award.

In brief: Openings and launches
American Packaging Corporation (APC) opened its new 275,000-square-foot Center of Excellence manufacturing facility in Cedar City, US. This week at a ribbon-cutting ceremony, several dignitaries and community leaders gathered alongside APC officials to partake in the celebration and officially welcome APC to the Cedar City community. The US$100 million facility marks APC’s sixth Center of Excellence across the US and its first on the west coast. APC calls the facility “one of the most modern and advanced flexible packaging facilities in the world.” The plant shows APC’s commitment to growth and investing in world-class print and packaging technologies to support customers’ flexible packaging needs. The fully operational plant is equipped with a state-of-the-art prepress, a proprietary flexographic printing ecosystem, adhesive laminating and pouching equipment to deliver “unique” packaging solutions that preserve product integrity and ensure the product stands out on the shelf.

Lucozade Energy drinks will receive a new pack design that reveals more of the liquid to shoppers. Lucozade Energy announced the launch of a new look and taste across its core range, including the Energy Orange and Energy Original flavors. Later this month, the drinks will receive a new packing design that reveals more of the liquid to shoppers, creating greater appeal by allowing for more taste, flavor and refreshment cues. The extensive consumer research revealed that the new-look sleeves help increase shoppers’ purchase intent, and makes them more likely to spot the new bottle design on shelves. The changes are effective across all Lucozade Energy Orange and Lucozade Energy Original 380 mL, 500 mL and 900 mL bottles for individual sale and inclusion in multipacks. The packaging changes will roll out across bottles for the remaining Lucozade Energy flavors in the coming months.

In brief: Financials and closures
Smurfit Kappa announced results for the half-year ending 30 June 2023. Revenue of €5.8 billion (US$6.3 billion) and an earnings before interest, taxes, depreciation and amortization (EBITDA)  of €1.1 billion (US$1.2 billion) and an EBITDA margin of 19.1%. Furthermore, the company’s return on capital employed was 19% and its free cash flow was registered at €119 million (US$130 million). Meanwhile, Smurfit Kappa’s interim dividend increased by 6% to 33.5 cents (US$0.36) per share.

WestRock Company announced it will permanently cease operating its paper mill in Tacoma, US, and will conclude production by September 30 this year. WestRock is committed to improving its return on invested capital and maximizing its assets’ performance. The company said that the combination of high operating costs and the need for significant capital investment were the determining factors in the decision to cease operations at the mill. The Tacoma mill produces kraft and white top liner and bleached pulp for a combined annual capacity of 510,000 tons. Most kraft and white top liners will be transitioned to other mills in the WestRock system to serve our customers in North America and international markets. Approximately 60,000 annual tons of pulp and 25,000 annual tons of specialty grade capacity will be reduced due to the shutdown. 

In brief: Pack Expo news
Plastic Ingenuity, the largest custom thermoformer in North America, was recognized by the Institute of Packaging Professionals (IOPP) with a 2023 AmeriStar Award. IOPP will present the award for excellence in electronics packaging design and manufacturing during this year’s Pack Expo trade show in Las Vegas, US, September 11-13. To enhance functionality and sustainability, Plastic Ingenuity redesigned a Glass Screen Protection Installation Tool for Otter Products. The new design can be used on virtually all smartphone devices more accurately than previous installation tools. Plastic Ingenuity transitioned an injection-molded tray made with 100% non-recyclable virgin material to a light-gauge thermoformed package using 100% post-consumer recycled PET. Additionally, the redesigned package reduced costs by almost 40%, resulting from the switch to thermoforming and a universal design that reduced SKUs and inventory requirements. The new, lightweight tray also helps improve package distribution and transportation efficiencies.

CVC Technologies USA, a designer and supplier of pharmaceutical packaging and processing equipment, acquired encapsulation specialist Changsung Softgel System. Among other notable achievements, Changsung Softgel System recently developed superior soft gel-based active ingredient delivery solutions for pharma and nutraceutical applications. The acquisition will be showcased for the first time at Pack Expo Las Vegas.CVC Technologies’ latest softgel capsule filling machines, the Changsung 990SR. 

In brief: Acquisitions
DuPont acquired Spectrum Plastics Group, a “leader” in specialty medical devices and components markets. With a global workforce of approximately 2,200 employees and annual revenue of about US$500 million, Spectrum will become part of the Industrial Solutions line of business within the Electronics & Industrial segment. Spectrum’s strategic focus on key, fast-growing therapeutics areas such as structural heart, electrophysiology, surgical robotics and cardiovascular complements DuPont’s existing offerings for biopharma and pharma processing, medical devices and packaging, including DuPont’s Liveo silicone solutions and Tyvek Medical Packaging. The combination with Spectrum increases DuPont’s existing revenue to high-growth healthcare markets to approximately 10% of its portfolio.

Conner Industries announced the acquisition of Guardian Packaging Industries, a foam cutting specialist and an integrated packaging provider that combines wood, foam and corrugated components, in Garland, US. The acquisition also includes the Southwest Air Products division, producing adhesive foam tapes for various applications. This latest purchase marks the company’s fourth investment in the expansion of their integrated packaging division, which includes facilities in Lewisburg, Tennessee, Tulsa, Oklahoma and Guthrie, Kentucky. The new facility is expected to serve large manufacturing customers with industrial packaging and military Spec non-metallic component products, utilizing a broad range of materials, including wood, foam, plastic and corrugated. It said it would continue to be a major provider of custom-cut foam for military drones. 

SpendEdge, a global “leader” in procurement market intelligence space, engaged with an unnamed pharmaceutical giant to support it with human error in the packaging and labeling of supplies. After understanding the extent of the client’s challenges, the SpendEdge team of procurement experts decided to carefully study the intricacies of each requirement carefully and create bespoke solutions to suit the scope of the client’s business model. SpendEdge’s experts provided insights based on the best practices that will help them with packaging and labeling. They could automate their packing with the aid of these technologies and provided vital medications on demand.

By Natalie Schwertheim