Industry moves to fiber-based solutions as recyclability and consumer demands rise

International technology group ANDRITZ has received an order from DS Smith to supply a complete stock preparation line and an innovative reject treatment system for the mill in Porcari that produces new packaging papers from 100% recycled paper. The equipment provided by ANDRITZ will be used on the new paper machine, due to start up mid-2025, that will provide a range of paper grades for the FMCG and e-commerce sectors serviced by DS Smith. Stefano Andreotti, Project Manager at DS Smith, says: “The new equipment from ANDRITZ, as well as helping us to recover more water, will help us capture, clean and use fibres that would normally get rejected in the paper making process, so they can be once again used in our recycling loops.”

Graphic Packaging Holding Company and CVC Capital Partners Fund VI announced a definitive agreement under which Graphic Packaging will acquire AR Packaging Group AB, Europe's second largest producer of fiber-based consumer packaging, for approximately $1.45 billion in cash, subject to customary adjustments. The combination enhances Graphic Packaging's global scale, innovation capabilities, and value proposition for customers throughout Europe and bordering regions. With a broad set of industry-leading packaging solutions, design expertise, and expanded geographic reach, the combined company will be uniquely positioned to capture continued organic growth opportunities across existing and new global customers and markets. The proposed acquisition of AR Packaging is expected to add $1.1 billion in annual sales and $160 million in annual Adjusted EBITDA.

New data shows that 44% of Brits admit to hoarding cardboard boxes – with a massive 135m believed to be sitting in our sheds, garages, and wardrobes. Over half of Brits (52%) say the amount of cardboard packaging in their homes has increased since the pandemic, with two thirds (66%) of those blaming more online shopping, and more than a quarter (28%) holding on to boxes without any clear motive - simply because “they might be useful in the future.” But the hoarding habit, while seemingly harmless, is actually keeping raw materials out of the hands of recycling companies and causing paper prices to rise. "Since the pandemic begun there’s been a major shift in consumer shopping habits and we’ve seen a huge rise in people ordering more items online, accumulating more boxes as a result. But while some put these boxes to good use – re-using them for storage, arts and crafts, or to ship other items - many boxes are sitting unused and not finding their way back into recycling streams. It means that materials are at best getting delayed in reaching recyclers, and at worse not getting to them at all." — Rogier Gerritsen, Head of Recycling at DS Smith