Displaying items by tag: Smurfit Kappa

The purchase of PaperBox expands both the company’s presence in Brazil and its product portfolio

Smurfit Kappa, one of the world’s leading suppliers of paper-based packaging, announced it has signed an agreement to acquire PaperBox, a packaging plant located in Saquarema, 70 kms east of Rio de Janeiro. The transaction, which is subject to the approval of regulatory bodies, is expected to close at the end of October.

Brazil is the largest corrugated cardboard market in Latin America, with 7.4 bn sq m produced annually, and the Southeast region, where PaperBox is located, equates to 46% of this volume. This acquisition represents a further expansion of Smurfit Kappa’s operational footprint in Brazil as it currently operates in three other states: Minas Gerais, Rio Grande do Sul and Ceará.

“We are very proud to expand our footprint in Brazil to meet the growing demand for innovative and sustainable packaging. This acquisition will broaden and strengthen our presence in the country, improve our production capabilities and enable us to continue to create new opportunities and form new partnerships with customers,” said Laurent Sellier, CEO of Smurfit Kappa in the Americas.

Manuel Alcalá, CEO of Smurfit Kappa in Brazil, added: “Smurfit Kappa believes in Brazil and in the opportunities to deliver growth by continuing to add value to our customers business. PaperBox has a distinguished history in the region and a special commitment to all stakeholders. This is a legacy that Smurfit Kappa will build upon.”

Packaging leader Smurfit Kappa has launched a unique range of circular packaging solutions for the rapidly growing online health and beauty market. The customisable eHealth & Beauty portfolio includes sustainable, paper-based packaging solutions ideal for shipping vulnerable products, such as fragrances, cosmetics, and skin and hair care products, as well as tamper proof packaging designed for vitamins, supplements and sports nutrition.

The health and beauty eCommerce market in Europe is one of the largest and fastest growing categories, valued at €17.6 billion^[1] in 2020. As online purchasing continues, with double digit growth both in Eastern Europe (37%) and Western Europe (22%)^[2], this growth presents a significant opportunity for retailers to capitalise on, with the overall eCommerce retail market estimated to be worth €380 billion^[3].

As demand in the health and beauty eCommerce market expands, so do consumer expectations for higher quality and sustainable packaging, in addition to delivery protection. Recent research carried out by Smurfit Kappa shows consumers are continuing to push for higher standards in delivery. The research found:

• 80% expect their parcel to arrive in perfect condition
• 59% prefer parcels that are easy to open
• 74% say that easy return is important for their convenience
• 69% prefer paper-based packaging for sustainability reasons

The new portfolio addresses the key challenges for the eCommerce supply chain, including product damage, void fill, and sustainability, to ensure an improved consumer and brand experience. Importantly, the entire portfolio has been designed to meet the International Safe Transit Association (ISTA) standards, thereby facilitating Amazon’s packaging certification process for specific products.

Commenting on the announcement, Arco Berkenbosch, Vice President of Innovation and Development at Smurfit Kappa said: “In the health and beauty segment the speed to market needs to be combined with a unique consumer experience. Our new eHealth & Beauty product range offers exciting, fit-for-purpose and bespoke packaging solutions, that are suited to different size businesses from entrepreneurs to globally recognised brands. This packaging range is the best way to boost your eCommerce sales approach.”

One of the portfolio innovations is the Tamper Evident Pack, which has a double self-locking mechanism that does not require tape, and is easy to return. An additional solution is the Beauty Sleeve which has been specifically designed to protect small products, such as skin care and cosmetics, while the curved edges create a unique look enhancing the brand experience. The distinctive design of the Hammock Fit delivers a premium unboxing experience while adding extra protection to the products through the supply chain.

Alongside the eHealth & Beauty range, Smurfit Kappa also offers a host of automated solutions to optimise the packaging process and accelerate growth for businesses. The launch of this new portfolio is the latest addition to Smurfit Kappa’s range of Better Planet Packaging solutions which seeks to make a positive impact on billions of supply chains and consumers by reducing the environmental footprint of packaging and its traces on the planet.

[1] Euromonitor Passport 2021

[2] Euromonitor International, Retail in Transition, July 2021

[3] Euromonitor Passport 2021

Smurfit Kappa Group plc (SKG:ID SKG:LN) (together with its subsidiaries, “Smurfit Kappa” or the “Group”), one of the world’s largest integrated manufacturers of paper-based packaging products, with operations in Europe and the Americas, have just announced a dual-tranche offering by one of its wholly-owned subsidiaries, Smurfit Kappa Treasury Unlimited Company, comprising €500 million in aggregate principal amount of senior notes due 2029 and €500 million in aggregate principal amount of senior notes due 2033 (together, the “New Notes”) (the “Offering”).

The Group intends to use an amount equivalent to the net proceeds of the Offering to finance or refinance a portfolio of eligible assets and expenditures (“Eligible Green Projects”) in accordance with its previously announced green finance framework (the “Green Finance Framework”), which the Group may, in the future, update in line with developments in the market. The Green Finance Framework and the ISS ESG Second Party Opinion thereon are available at smurfitkappa.com/investors.

Under the Green Finance Framework, Eligible Green Projects include circular economy adapted products, production technologies and processes and/or certified eco-efficient products, such as: (i) reclamation of used fibres; (ii) recycling of used fibres; (iii) paper milling; and (iv) packaging conversion. In addition, Eligible Green Projects include the environmentally sustainable management of living natural resources and land use, such as the procurement of responsibly-sourced raw materials or ingredients (like wood, pulp, paper and recovered paper) and the utilisation of forests and raw materials certified in accordance with (i) Forest Stewardship Council (FSC) standards; (ii) Sustainable Forestry Initiative (SFI); and (iii) Programme for the Endorsement of Forest Certification (PEFC).

The Group intends to issue a notice today for the conditional redemption of €500 million in aggregate principal amount of the 2.375% Senior Notes due 2024 (the “2024 Notes”), issued by Smurfit Kappa Acquisitions Unlimited Company pursuant to an indenture dated 24 January 2017. The Group intends to use cash on hand and/or existing available facilities to fund the redemption of the 2024 Notes and pay accrued but unpaid interest thereon. The redemption is currently anticipated to take place on 25 September 2021 and is conditional upon the completion of the Offering and the receipt by the Group of the net proceeds from the sale of the New Notes on or before the redemption date. There can be no assurance that the Offering or the redemption of the 2024 Notes will be completed.

The New Notes are being offered in a private placement and there will be no public offering of the New Notes. The New Notes will be offered and sold only to non-U.S. persons outside the United States in accordance with Regulation S under the U.S. Securities Act of 1933, as amended.

Smurfit Kappa, a FTSE 100 company and leading provider of paper-based packaging solutions, has extended its range of sustainable and biodegradable products for the agricultural sector with the launch of BanaBag®.

BanaBag® is an innovative and sustainable product created by Smurfit Kappa to address the quality assurance needed for excellent bagging during the complete growth cycle of the banana plant. It is a unique solution for organic producers because it protects the fruit from disease and insects, whilst also reducing the overheating that can result from using other materials like plastic.

The BanaBag® is made from cellulose which acts as a natural insulator to the growing bananas maintaining the quality of the product even in higher temperatures.

In addition to advantages in the farming process, BanaBag® is the right choice for banana producers that are supplying international markets where consumers are demanding sustainable products with traceable production processes and supply chains. The BanaBag® is 100% paper-based, making it renewable, recyclable and biodegradable and importantly, it can be used as compost for the soil.

Laurent Sellier, Chief Operating Officer of Smurfit Kappa Europe Paper and Board, commented:  “At Smurfit Kappa, we are committed to innovation and the development of paper-based sustainable products that support our customers in the improvement of their processes and products.  With a continuing drive to make a positive impact on the agricultural sector with innovative solutions like BanaBag®, we aim to positively contribute to better outcomes for farmers who are moving towards more sustainable methods.”

Juan Guillermo Castaneda, CEO of Smurfit Kappa The Americas added: “Some of the largest banana exporters in the world are in South and Central America where we operate. Ecuador, Colombia, Costa Rica and the Dominican Republic are on the list of the 10 countries that export more than 80% of the world´s bananas, mainly to European markets. This challenges producers to continuously adapt to the fast paced trends of consumers who want to be reassured that the products they buy and consume are sustainable.”

These trends have led the organic banana sector to implement environmentally friendly processes in their plantations, without sacrificing quality and efficiency throughout  all stages of the fruit´s growth.

“Our job is to carefully handle the fruit in the production process so that it arrives in the best possible condition at its final destination – whether international or local,” says Louis Hesselholt, Manager of Dominique Banana in Santa Marta, Colombia. “BanaBag® perfectly matches the needs of our plantation by reinforcing the organic characteristics of our export product and contributing to our goal of eliminating 100% of all contaminant plastic waste from our farms.”

The use of non-sustainable materials in Dominique Banana´s production process was a huge challenge for the company, because of their difficult recycling process and the problems of land pollution. Additionally, because the plastic bunch bag commonly overheated the fruit, this contributed to lost produce. By implementing the Smurfit Kappa BanaBag® in the Campo Alegre and Granja plantations, the fruit´s quality increased, post-harvest recycling processes were optimised and the soil was fertilised since BanaBag® is compostable.

Smurfit Kappa has a number of sustainable products for the agricultural sector including AgroPaper^TM for eco-friendly mulching in crop growing, the SoFru corrugated pack for berries,  and Safe and Green biodegradable trays for fresh fruit.

About Smurfit Kappa

Smurfit Kappa, a FTSE 100 company, is one of the leading providers of paper-based packaging solutions in the world, with approximately 46,000 employees in over 350 production sites across 35 countries and with revenue of €9.0 billion in 2019. We are located in 23 countries in Europe, and 12 in the Americas. We are the only large-scale pan-regional player in Latin America.

With our pro-active team, we relentlessly use our extensive experience and expertise, supported by our scale, to open up opportunities for our customers. We collaborate with forward-thinking customers by sharing superior product knowledge, market understanding and insights in packaging trends to ensure business success in their markets. We have an unrivalled portfolio of paper-packaging solutions, which is constantly updated with our market-leading innovations. This is enhanced through the benefits of our integration, with optimal paper design, logistics, timeliness of service, and our packaging plants sourcing most of their raw materials from our own paper mills.

Our products, which are 100% renewable and produced sustainably, improve the environmental footprint of our customers. Follow us on LinkedIn,Twitter, Facebook, YouTube or visit www.smurfitkappa.com.