The prolonged disruption of the Strait of Hormuz amid the war involving Iran has constrained shipments of crude oil and naphtha to Taiwan, creating uncertainty for the island’s plastics packaging supply chain.  In response to feedstock delivery delays caused by shipping disruptions in the Middle East, Taiwan’s Formosa Petrochemical Corporation has declared force majeure on select petrochemical supplies. These include ethylene and propylene, with the company announcing production cuts and suspending new orders.  Meanwhile, due to the disruptions, Taiwanese consumers have stockpiled plastic packaging products, driven by concerns over potential price hikes and shortages. In an effort to manage demand, Costco Wholesale Taiwan has implemented purchase limits, which started on March 27. Ten types of packaging sold at Costco Taiwan, including food storage bags, garbage bags, plastic wrap, and zipper bags, will be restricted to one set per membership card.

Mondi has been recognised in this year’s Austrian Green Star Packaging Awards for two recent sustainable packaging innovations developed using its customer-centric approach, EcoSolutions: PerFORMing - paper-based packaging with special barrier coating to protect cheese slices - Austria’s biggest retailer REWE worked together with Mondi to launch a more sustainable cheese tray for their organic brand Ja! Natürlich. Mondi developed a special kraft paper, Advantage Formable Brown, to replace rigid plastic trays. Its unique stretch characteristics mean it can be formed into a shallow tray enhanced with a special barrier coating. Fully recyclable thermoforming plastic film for meat - Mondi was able to reinvent packaging for Austrian meat producer Hütthaler. The packaging was designed for recycling while maintaining optimum barrier properties and replacing a previous, less sustainable, packaging.

Net sales for the second quarter of 2017 were $1,021.8 million, an increase of $147.2 million, or 16.8 percent, as compared to $874.6 million in 2016. This increase was the result of the acquisition of Dispensing Systems in April 2017 and higher net sales across all of the businesses. Income from operations for the second quarter of 2017 was $75.2 million, an increase of $7.5 million, or 11.1 percent, as compared to $67.7 million for the second quarter of 2016, while operating margin decreased to 7.4 percent from 7.7 percent for the same periods. The increase in income from operations was the result of the net benefit from the acquisition of Dispensing Systems and higher income from operations in each of the businesses. The decrease in operating margin was due primarily to the negative impact from the purchase accounting write-up of inventory of Dispensing Systems and acquisition related costs in the quarter. Rationalization charges were $3.0 million and $5.0 million in the second quarters of 2017 and 2016, respectively. Click Read More below for additional details.