THIN WALLED PACKAGING
Consolidation changes face of European market / Producers react to falling profitability / AMI study
Manufacturers in the thin walled packaging market in Europe are reacting to a fall in profitability through a number of dynamic structural changes according to a recently published report from plastics industry consultant Applied Market Information (AMI, Bristol / UK; www.amiplastics.com).
Large participants in the 2.8m t market are responding to price and innovation requirements of their customers, particularly in thermoforming applications that have seen profit erosion due to overcapacity and the standardisation of packaging. The report says that the industry is consolidating and evolving to satisfy market needs more profitably by increasing throughput across a reduced number of converting sites, focusing investment in core facilities, investing in integrated extrusion thermoforming, exiting from unprofitable business and placing an emphasis on differential advantage.
In 2011, the top 10 converters accounted for over 40% of the market. Outside this leader base, thin wall packaging supply in Europe remains relatively fragmented and more consolidation is expected, AMI said, and rankings have changed dramatically in the past few years as the industry has actively consolidated.
Reviewing the larger players, the report says that rigid plastic food packaging manufacturer Paccor (Zell / Germany: www.paccor.com) is the new market leader. The company was created in 2011 by the acquisition and full-scale integration by US investment firm Sun Capital Partners (Boca Raton, Florida; www.suncappart.com) of three of Huhtamaki’s sites, Veriplast’s rigid plastics sites across Europe and Pannunion’s sites in central and eastern Europe – see Plasteurope.com of 03.11.2011 and 09.11.2011.
RPC (Higham Ferrers, Rushden / UK; www.rpc-group.com) has also increased its market share thanks to the acquisition of injection moulder Superfos in 2011 – see Plasteurope.com of 13.01.2011. Following a number of previous acquisitions, French packaging giant Groupe Guillin (Ornans; www.groupeguillin.fr) acquired Sharp Interpack in 2010, strengthening its position in the European fruit and vegetable sector and developing in meat and fish products – see Plasteurope.com of 16.04.2010.
Italian extruder ILPA (Bazzano, Bologna) invested in AMP Films & Packaging (Ferrara / Italy), assuring the company a place in the rPET supply chain, as well as expanding its extrusion and thermoforming capacity. Finally, Faerch Plast (Holstebro / Denmark; www.faerchplast.com) has expanded outside continental Europe through acquisition of the former Veriplast site in the UK in 2011.
Large participants in the 2.8m t market are responding to price and innovation requirements of their customers, particularly in thermoforming applications that have seen profit erosion due to overcapacity and the standardisation of packaging. The report says that the industry is consolidating and evolving to satisfy market needs more profitably by increasing throughput across a reduced number of converting sites, focusing investment in core facilities, investing in integrated extrusion thermoforming, exiting from unprofitable business and placing an emphasis on differential advantage.
In 2011, the top 10 converters accounted for over 40% of the market. Outside this leader base, thin wall packaging supply in Europe remains relatively fragmented and more consolidation is expected, AMI said, and rankings have changed dramatically in the past few years as the industry has actively consolidated.
Reviewing the larger players, the report says that rigid plastic food packaging manufacturer Paccor (Zell / Germany: www.paccor.com) is the new market leader. The company was created in 2011 by the acquisition and full-scale integration by US investment firm Sun Capital Partners (Boca Raton, Florida; www.suncappart.com) of three of Huhtamaki’s sites, Veriplast’s rigid plastics sites across Europe and Pannunion’s sites in central and eastern Europe – see Plasteurope.com of 03.11.2011 and 09.11.2011.
RPC (Higham Ferrers, Rushden / UK; www.rpc-group.com) has also increased its market share thanks to the acquisition of injection moulder Superfos in 2011 – see Plasteurope.com of 13.01.2011. Following a number of previous acquisitions, French packaging giant Groupe Guillin (Ornans; www.groupeguillin.fr) acquired Sharp Interpack in 2010, strengthening its position in the European fruit and vegetable sector and developing in meat and fish products – see Plasteurope.com of 16.04.2010.
Italian extruder ILPA (Bazzano, Bologna) invested in AMP Films & Packaging (Ferrara / Italy), assuring the company a place in the rPET supply chain, as well as expanding its extrusion and thermoforming capacity. Finally, Faerch Plast (Holstebro / Denmark; www.faerchplast.com) has expanded outside continental Europe through acquisition of the former Veriplast site in the UK in 2011.
27.04.2012 Plasteurope.com [222160-0]
Published on 27.04.2012