Mondi profits up despite cost pressures

Mondi Packaging has reported growth across all sectors in 2007, despite pressure from increases in raw material prices.

The division’s sales increased by 13.4% to €3.6bn (£2.7bn) for the year to 31 December 2007, driven by growth across the corrugated, bags and flexibles sectors.

EBITDA grew 22% to €503m due to an improved trading environment and €81m of cost savings, which helped offset increased input costs; external wood and recycled paper costs rose by an average of 20% and 50% respectively.

Mondi Packaging South Africa reported sales growth of 16.4% to €419m, while EBITDA grew by 15.2% to €53m for the period, thanks largely to an increase in local consumption and a good agricultural season.

Overall, the Mondi Group increased pre-tax profit by 71% to €382m, on sales up 9% at €6.3bn.

Chief executive David Hathorn said the results reflected "improved performances across all business areas", as well as increased pricing, focus on operational efficiency and benefits from restructuring.

Mondi, which demerged from mining group Anglo American in July 2007, has operations across 35 countries and employs around 35,000 people.
Source: packagingnews

FSC casts doubt on any partnership with PEFC

The FSC has said working practice differences would prove a significant barrier in any joint venture with the PEFC to ease the lack of certified stock available in the UK.

The comments follow industry calls for an increase in the amount of FSC- and PEFC-accredited forests, which currently stands at around 7% worldwide.

PEFC Council secretary general Ben Gunneberg said that no approaches had been made by the FSC. "However, we would welcome a more in-depth dialogue and our door has been, and always remains, open," he added.

FSC international head of operations Andre de Freitas highlighted the "substantial differences" between FSC and PEFC. "All FSC standards are publicly available, free of charge. Additionally, FSC does not allow the certification of conversion of natural forests or genetically modified organisms."

The FSC does, however, recognise the need for more stock. Rosie Teasdale, FSC UK marketing officer, said there had been a considerable increase in demand from the paper sector in the UK.

"We need to continue increasing the amount of FSC certified forest to ensure we meet this."
Paper certification was on the minds of the audience at the Publishing Expo 2008 on 13-14 February at Olympia, London.

Peter Sommerfield, Denmaur Papers’ marketing director, said publishers should not narrow their objectives too hastily, citing the championing of one forest certification standard over another as an example.

Haymarket Group production director Chris King said: "Only 7% of the world’s forests are certified, so the issue now is to improve on this."

As both FSC and PEFC stocks offer evidence of responsible environmental sourcing of paper, "the debate should be about the supply of one certified stock", he added.
Source: printweek

Packaging Market Weekly Wrap - EC Approves Rank Purchase of Alcoa P & C

The European Commission has approved New Zealand's Rank Group's purchase of US aluminium giant Alcoa's packaging and consumer business.

The commission says the deal raises no competition issues.

Rank, owned by kiwi billionaire Graeme Hart, agreed to purchase Alcoa P & C for US$2.7bn in December.

GERRESHEIMER SALES UP

Glass and plastic product producer Gerresheimer AG has reported a record sales growth of 48.1 percent to €957.7m for 2007.

Operating results (Adjusted EBITDA) rose by 48.1 percent from €122.6m in the prior year to €181.6m.

On the basis of continuously increasing demand for special packaging for the pharma and life science industry, Gerresheimer expects sales to increase between 13 and 15 percent in the 2008 financial year.

Gerresheimer Chief Executive Dr Axel Herberg says the firm has had a successful start to the year.

"In the highly specialised markets for packaging and system solutions, Gerresheimer is widely recognised as a leading global partner for the pharma & life science industry.

"I have no doubt that in the current year we will be able not only to consolidate our position but expand it intensively."

BASF REPORTS TEN PERCENT SALES INCREASE

BASF has reported full-year sales results of almost €58bn and income from operations (EBIT) before special items of more than €7.6bn in 2007.

In 2007, sales rose by more than ten percent and EBIT before special items grew by approximately five percent.

In the fourth quarter of 2007, BASF slightly increased sales by almost two percent.

EBIT declined by just over three percent, primarily due to low capacity utilisation rates as a result of turnarounds of key plants that lasted longer than scheduled.

Volume demand and the level of orders remained strong in the fourth quarter of 2007.
Source: packaging-technology

Key Technology launches new sealer for fresh-cut processors

Key Technology is introducing a redesigned AV sealer designed for fresh-cut produce packagers.

Key Technology maintains that this semi-automatic packaging machine heat seals a variety of bag sizes with or without a vacuum. Bags up to 470mm wide can be sealed at the rate of four to six bags per minute, it claims.

The system, which has an optional gas flush cycle, offers adjustable user programmes that set the vacuum pressure, the gas flush, the heat sealing temperature and the seal time.

"The heater control logic assures consistent sealing under variable conditions," said Key Technology.

The system can be switched over to handle different products and different bag sizes "in seconds with no tools, changeparts, or mechanical adjustments".

In addition, the company noted that bags and controls are ergonomically placed for easy operator access, without the need to lift a cover, lid or sealing bar.

Special order rack-mounted floor stands are also available from the company for one, two or four machine heads or a single bench configuration.

The company promises "years of trouble-free operation" of its new system, due to fewer moving parts than competitive sealers and a low maintenance vacuum system.

The sealer is said to be relatively simple to clean. It is small, weighing only 33kg and includes an open design that is "easier to clean than traditional closed-chamber heat sealers".


The company says that this open design also improves the quality and safety of the packaged produce by eliminating liquid collecting inside the chamber and affecting the outside of the bags.

The AV Sealer is made from stainless steel and anodized aluminium which improves sanitation. The company also says that the vacuum parts are easy to take apart and clean.

According to Key Technology, the redesigned AV Sealer packages a wide range of products from wet and dry lettuce to cut vegetables, fruit and fresh herbs.

Teri Johnson, Fresh-Cut Industry Marketing Manager at Key Technology said: "The fresh-cut produce industry is a very important strategic market to Key. We are reenergizing our existing products to be sure they deliver the greatest value to our customers moving forward. The redesigned AV Sealer is one in a series of developments designed for fresh-cut processors."

Key Technology has headquarters in Washington State, USA and Beusichem in the Netherlands.
Source: foodproductiondaily

Green Alliance proposes tax on environmental impact

Composite packaging materials would be subject to a tax on products' environmental impact proposed by the Green Alliance.

In a new report, Good product, bad product?, it has called for the replacement of VAT with a goods tax, graduated according to environmental impact.

"Best in class" products and packaging selected by an independent organisation for their low waste and energy use during production would be exempt from the tax.

But non-recyclable materials, such as composites, would be "prime candidates" for the tax.

David Perchard, a partner at Perchards, legislative affairs consultant to the Industry Council for Packaging and the Environment (Incpen), did not think it would be possible to easily distinguish between so-called good and bad packaging.

Aluminium, for example, has a heavy initial carbon footprint, but is very light and can be recycled.

"You might have a heavy investment in a carbon footprint, but you get it back in use," said Perchard.

Such a scheme would not be legal under current EU tax laws, but the Green Alliance would "look to the Prime Minister to seek support in Europe from like-minded premiers to agree the necessary changes".
Source: packagingnews