Packaging Market Weekly Wrap -WRAP Budget Slashed by 25 Percent

UK environmental watchdog the Waste and Resources Action Programme (WRAP) is to refocus its priorities as it faces a 25 percent budget cut next year.

The cut is likely to lead to a "net reduction" in jobs, WRAP says.

Packaging Federation chief executive Dick Searle says WRAP should concentrate on "scientifically proven major issues".

"With a trimmed budget, its even more important to focus on reducing food waste and work with local authorities to improve recycling," he says.

SONOCO TO INCREASE SALES BY 50 PERCENT

Global paper and plastic packaging manufacturer Sonoco has outlined plans to increase sales by 50 percent by 2012 with a stronger emphasis on its commercial packaging business.

Sonoco's sales are currently split 50-50 between commercial and industrial packaging, but it wants to shift the balance to 60-40.

The company plans to increase sales through a combination of new product development, improved sustainability, crossselling products across the business and strategic acquisitions.

Sonoco also hopes to increase annual sales from new products from £65m to £75m.

Base earnings per diluted share for the fourth quarter are expected to reach US$0.52 to US$0.55, the company says, while full year earnings should reach US$2.28 to US$2.31.

Base earnings in 2006 were US$2.13 per diluted share.

STORA TO DELIST

Paper, packaging and forest products company Stora Enso has announced plans to delist its American Depository Receipts, each representing one Stora Enso Series R ordinary share from the New York Stock Exchange.

The delisting is expected to happen by the end of 2007.

Stora Enso's ordinary shares will continue to trade on the OMX Nordic Exchanges in Helinski and Stockholm, the company says.

PREGIS ACQUIRES BESIN

Packaging firm Pregis has acquired all outstanding shares of European producer and distributer of paper honeycomb protective packaging products Besin International, for approximately US$18m.

Besin will operate with Pregis' Hexacomb division, a component of Pregis' protective packaging reporting segment.
Source: packaging-technology