Weekly Roundup: Smurfit Kappa and Ball exit Russia, BillerudKorsnäs completes Verso acquisition
01 Apr 2022 --- In packaging news this week, corrugated packaging giant Smurfit Kappa exited the Russian market, and metal packaging supplier Ball revealed it is pursuing the sale of its Russian business as the Ukraine war continues to rage. Meanwhile, BillerudKorsnäs completed its acquisition of Verso.
In brief: Geopolitics
Smurfit Kappa exited the Russian market, having already suspended support for its Russian operations, including imports and exports and short- or long-term funding. Its Russian business represents less than 1% of forecasted sales. The company will continue to provide humanitarian support for the Ukrainian people and assist the families of Smurfit Kappa employees and contractors from Ukraine.
Ball reduced operations at its three manufacturing facilities in Russia and revealed it is pursuing the sale of its Russian business, saying it is “deeply troubled by the war in Ukraine.” In 2021, its Russian business represented approximately 4% of the company’s total net sales and 8% of its total comparable operating earnings. In addition, its plants in Russia produced approximately 5% of the company’s 112.5 billion global beverage can unit shipments during 2021.
In brief: Completed acquisition
BillerudKorsnäs completed its acquisition of Verso for a purchase price of approximately US$825 million in cash. Verso is a leading producer of coated paper in North America, with 2021 net sales of US$1,278 million and adjusted EBITDA of US$223 million. The Verso acquisition reinforces BillerudKorsnäs’ strategy to drive profitable and environmentally sustainable growth and its ambition to accelerate its growth in North America.
Berry Global’s new lightweight food closure.
In brief: New solutions
Berry Global launched a lightweight food closure that provides weight savings to minimize material usage without compromising overall performance and consumer convenience. The company’s existing 55 mm closure is now over 20% lighter than the previous version, which Berry says represents a significant weight saving compared to other available closures. The closure is suitable for a variety of ketchups and sauces. For maximum flexibility, it can be adapted to suit different neck finishes and specified with a choice of orifice configurations to meet the particular dispensing requirements of different products.
TurboFil Packaging Machines, an equipment specialist dedicated solely to developing liquid filling and assembly machines, introduced an assembly and vial filling machine for unidose liquid nasal devices, which are increasingly seen as an attractive alternative to injections for the self-administration or emergency administration of accurate drug dosages. Available in automatic or semi-automatic setups, its UDS Rotary Vial Filling & Assembly Workstation increases throughput and flexibility through its broad array of station separation and inspection options.
In brief: Fiber-based developments
Sappi added a translucent paper to its environmentally sustainable range. The Crystalcon produced is combined with Sappi’s heat-sealable Seal Silk, delivering a recyclable, easy-to-implement packaging solution for various food and non-food applications, from noodles and rice to magazines, viewing windows in envelopes or sales packaging for greeting cards. “It [Crystalcon] excels wherever high barriers are not required, but where product visibility is important,” says Kerstin Dietze, key account manager for packaging solutions at Sappi.
TurboFil Packaging Machines’ assembly and vial filling machine for unidose liquid nasal devices.
PulPac, the Swedish R&D and IP company behind Dry Molded Fiber, British household paper converter Better All Round and PA Consulting, formed a strategic alliance to bring fiber-based, plastic-alternative packaging to the UK. The partnership leverages the innovative formed fiber packaging technology developed by PulPac, Better All Round’s converting know-how and access to the UK’s leading retailers and PA’s expertise as the exclusive global development partner for this technology.
In brief: Renewable energy
Coveris Pirtó, the company’s CEE hub in Hungary, switched to 100% renewable biomass and solar energy in line with its No Waste vision. For the last 35 years, the Pirtó site has remained an active player in the European flexible packaging market for food and industrial goods, with 2,500 tons of film produced annually. “Switching to green energy leads to decreased CO2 emissions into the atmosphere. As a result of this sustainability action, the emissions are reduced by approximately 700,000 kg CO2, which allowed Coveris Pirtó to eliminate its Scope 2 emissions to zero,” explained Gabriella Papp, Coveris Pirtó’s managing director.
By Joshua Poole
