Veselok, Sappi, Smurphy Kappa, Pratt, the four paper and packaging giants
Velcro Corporation announced that it has entered into a definitive agreement to sell its entire ownership interest in RTS Packaging, Ltd. to joint venture partner Sonoco Products for $330 million, subject to customary price adjustments. In addition, Velcro Corporation has entered into a definitive agreement to sell its non-coated recycled cardboard (URB) plants in Eaton, Indiana, and Aurora, Illinois, to Ox Industries for $50 million.
Viselock's Chattanooga, Tennessee facility, which primarily supplies URBs to RTS, is part of the RTS Packaging Ltd. transaction. The facility will be strategically integrated into Sonoco Products' product portfolio. The transaction is expected to close in the first half of 2023, subject to customary closing conditions, including regulatory approvals.
The Eaton and Aurora plants produce URBs, which are not a priority product for Viselock and are an optimized asset for Ox Industries, a supplier and manufacturer of recycled cardboard products. The transaction is expected to close in late 2022 or early 2023. Ox Industries noted that the two URB plants with 85,000 tons of capacity and processing capacity will add to the company's optimized assets. Following the transaction, Viselock Corporate team members will transition to Sonoco Products, Inc., or Ox Industries.
Kevin Hayward, chief executive of Ox Industries, said: "We are delighted to be partnering with the teams at Eaton and Aurora and welcome them to Ox. These facilities will add to our plant system and add to our niche business of vertically integrating processed paper products in the Midwest."
Chief Executive Officer, David Sewell, Vishlow Corporation, explained: "These divestitures are consistent with Vishlow's commitment to optimize its product portfolio and focus our strategy on key end point markets. I would like to thank my teammates at RTS Packaging, Inc. and our Chattanooga, Eaton and Aurora facilities for their numerous contributions to our success over the years. Going forward, we remain committed to leveraging the power of our broad, diverse portfolio of sustainable paper and packaging solutions to serve our customers and deliver value to our shareholders."
Sappi North America, Inc. today announced the approval of a $418 million capital project to retrofit Paper Machine No. 2, a coated paper machine, at its Somerset plant in Skohegan, Maine, to increase its capacity and produce solid bleached sulfate sheet (SBS) products. The project will be funded by free cash flow.
"This move complements our long-term Thrive25 strategy, which is focused on expanding our product portfolio in packaging and specialty papers, pulp and biomaterials," said Mike House, president and CEO of Sappi North America. "By investing in our business to pursue growing demand areas, we can remain profitable and competitive in the global marketplace"
Demand for packaging and specialty papers is particularly strong in North America, especially because SBS is a more environmentally sustainable alternative to plastic packaging, and customers are actively seeking to increase sales at Sappi North America. SBS is used in premium packaging for cosmetics and fragrances, health and beauty care, consumer electronics, confectionery, luxury beverages, and more. Foodservice items such as plates and cups also use SBS as a sustainable alternative to plastic.
"Somerset's existing world-class infrastructure and successful production of high-quality SBS products, coupled with its talented workforce, make the plant an excellent choice for this investment," Machaus said. "Improving our Flexibility and expanding the capacity and capacity of the paper mill will ensure we continue to produce quality products in Somerset for years to come."
The Somerset plant has three paper machines (PM1, PM 2 and PM 3) capable of producing 970,000 tonnes of coated paper and 525,000 tonnes of bleached chemical pulp per year for own and commercial pulp. The planned project at the Somerset, Maine plant is scheduled to come online in early 2025.
Smurficapa Group has signed an agreement to acquire Pusa Pack S.L., a bag-in-a-box packaging plant in Onda, Spain. usa Pack specializes in the production of high-capacity soft bags with capacities ranging from 200-1,500 liters for the storage and transport of bulk food, cosmetics, pharmaceuticals and other liquid and semi-liquid products. Smurficapa Group will integrate Pusa Pack into its bag-in-a-box business in Spain.
Thierry Mino, CEO of the Smurfekapa Group Bag-in-Box business unit, said: "Heavy-duty packaging is moving towards more environmentally friendly solutions. We are increasingly seeing companies move away from plastic or stainless steel medium bulk containers (IBCs) for more sustainable corrugated solutions with a significantly lower carbon footprint. This makes a lot of sense - if we compare the Smurf Kappa IBC, made from fully recyclable, biodegradable and renewable corrugated paper, to rigid plastic containers, we find that the weight of the plastic is reduced by 87%, significantly optimizing the supply chain, eliminating Cleaning requirements and shelf life extensions of products when aseptic filling technology is applied. "
The Smurphy Kappa Group's bag-in-a-box business supplies high-capacity bags and corrugated cardboard containers through its sales office in Liquivir, Germany. Pascual Martinez, general manager of Ibi, the Smurphy Kappa Group's bag-in-a-box business, added: "The acquisition will strengthen the Smurphy Kappa Group's bag-in-a-box product portfolio and create a strong supply chain and market synergy effect between the two companies." The acquisition will also be of great benefit to customers, especially those who require bag-in-a-box solutions in different formats, such as retail and industrial use. "
Anthony Pratt, executive chairperson of Pratt Industries, has pledged to invest $5 billion in the nation's recycling and clean energy infrastructure to create 5,000 U.S. manufacturing jobs over the next 10 years. Part of the new commitment has already taken shape in Henderson, Kentucky, where the company is building its sixth 100% recycled paper mill. The plant, at an investment of $500 million, is one of Western Kentucky's biggest economic development achievements in the past 25 years.
Pratt also built a 700,000-square-foot corrugated carton plant near the plant. Earlier this year, Pratt announced plans to open a regional manufacturing and innovation center in Cedar Hill, outside Dallas, Texas, which would take 1 million square feet and invest more than $200 million in equipment and building improvements. The company also plans to hire 150 full-time workers at the new plant. In October, Pratt officially opened a $200 million corrugated carton plant in Park City, Kansas, outside Wichita.