Smurfit Kappa has completed a large-scale sustainability project at its Zülpich paper mill in Germany, which significantly reduces the plant’s CO2 emissions. The €11.5 million investment included a major redesign of the plant’s multi-fuel boiler to provide a more sustainable fuel source for the generation of steam and electricity. The mill, which produces approximately 500,000 tonnes of paper annually, is now powered by a combination of its own biogas, which is a by-product of its circular water treatment plant, natural gas, and the residual materials or so-called ‘rejects’ which occur in the paper recycling process that would otherwise be considered waste. The project reduces CO2 emissions at the Zülpich paper mill by more than 25% and saves 55,000 tonnes of CO2 annually, which represents a 2% reduction in Smurfit Kappa’s global CO2 emissions. Smurfit Kappa has the goal of achieving a 55% intensity reduction in fossil CO2 emissions by 2030 and at least net zero CO2 emissions by 2050. The packaging leader has also had its 2030 emissions reductions targets validated by the Science Based Targets initiative as being in-line with the Paris agreement.

Corrugated volume growth in the first quarter was up approximately 7% in both Europe and the Americas. This demonstrates SKG’s exposure to high-growth markets, sectors and channels including innovative and sustainable packaging solutions and e-commerce. Containerboard prices have increased in the first quarter and again at the start of the second quarter as a result of strong demand and higher recovered fibre and other costs. SKG’s recovered fibre cost has increased by approximately €90 million versus the first quarter of last year. We are progressively recovering these input costs through our corrugated box system. In addition to cost pressures, the industry is experiencing supply disruptions and shortages of packaging papers globally. Against this market backdrop, our integrated business model is again, proving a key differentiator with continuity of supply to our customer base.

Packaging Corporation of America recently celebrated the start of construction of its new full-line corrugated box plant in Marshfield, Wisconsin. Attendees at the official groundbreaking included PCA management; the mayor of Marshfield and other city officials; the builders of the new facility; and employees from the nearby Colby plant, who were transported on coach buses to Marshfield for the event. PCA's new, state-of-the-art plant will replace the existing plant in Colby. Many of that plant's long-time employees will continue to work at Marshfield, which is about 20 miles from Colby. Click Read More below for additional information.