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.

Notable items in the third quarter include: *Record net sales of $4.8 billion increased 14% compared to the prior year quarter *Net income of $250 million increased 40% compared to $179 million in the prior year quarter *Record third quarter North American per day box shipments increased 9% compared to the prior year quarter *Successfully implementing published price increases across all major paper grades; pricing realization outpaced inflation in the quarter *Generated net cash provided by operating activities of $751 million and Adjusted Free Cash Flow of $554 million compared to $740 million and $508 million, respectively, in the prior year quarter *Reduced total debt by $270 million

Mondi Paper Bags, part of Mondi Group, a leading global packaging and paper manufacturer, has acquired the paper bag converting lines from National Bag and Egypt Sack, two subsidiaries of Lafarge Cement Egypt, a major cement producer in the country. The acquired production lines will increase Mondi’s capacity by around 150-180 million bags annually and strengthen Mondi's position in the Egyptian paper bag market. Mondi Paper Bags already operates two plants in Egypt and with this acquisition will become a key supplier of paper bags to Lafarge Cement Egypt. "Lafarge Cement Egypt is part of leading global building material company Holcim Group who has been a key global customer of Mondi Paper Bags for years. We are excited to have signed a long-term supply agreement with Lafarge Cement Egypt and to servicing them locally in Egypt. The collaboration will offer Lafarge access to our latest innovations, industry expertise, strong plant network and customer service. Thanks to Mondi’s vertical integration, Lafarge will further benefit from our high quality Kraft paper." Claudio Fedalto, Chief Operating Officer of Mondi Paper Bags