Sonoco announced that the new uncoated recycled paperboard (URB) #10 machine is operational as part of its previously announced Project Horizon—the $125 million investment to transform its former corrugated medium machine in Hartsville, S.C to a state-of-the-art URB operation. Project Horizon was initiated, in part, to ensure the long-term viability and sustainability of Sonoco’s 100-year-old Hartsville Mill Complex, at which the Company produces almost one-third of its U.S. and Canadian URB. The introduction of the new operation is projected to drive $30 million in annual cost savings by 2024 and will ensure the mill remains globally competitive. This launch also marks Sonoco’s move to 100% recycled fibers in the Hartsville Mill Complex, which eliminated the manufacturing complex’s virgin pulp processing and chemical recovery operation.

Higher fuel and material costs, shipping disruptions and consumer spending are playing into industry impacts. Certain packaging substrates, such as plastics, bear a greater burden than others. Major publicly traded packaging companies’ most recent earnings calls largely occurred just before the war began, so executives did not address the topic at that time. But analysts have been sporadically divulging information about effects and adjusting their projections as information becomes available. “It’s not been pretty” for the publicly traded packaging companies within BofA Securities’ coverage, said analyst George Staphos in a March 13 note to investors. The average packaging company’s stock had dropped approximately 10% since Feb. 27, the day before the war started, he said Generally speaking, every $10 per barrel increase in oil prices translates to a few cents per pound increased costs for plastic packaging producers, according to Staphos.

Smurfit Kappa, one of the leading providers of paper-based packaging solutions in the world, has announced an investment of over USD33 million in Brazil to expand the capacity of its plant in Fortaleza to meet the growing demand for innovative and sustainable packaging. The expansion, which includes the installa tion of a new corrugator, will significantly extend the plant’s Shelf Ready Packaging capability for FMCG customers in a range of sectors including fresh fruit, home appliances and pharmaceuticals. Several high-end printers will also be installed to provide the high level of precision and quality that is required for eCommerce packaging. In addition, a new innovation centre will foster even more customer collaboration and enhance the development of impactful, sustainable and market-leading packaging solutions.