Carton prices soar. The industry is alarming and the owner of Lidl buys the factory

– We expect delays in the delivery of raw materials necessary for the production of packaging – forecasts the management board of the Akomex Group – production may even stop at some suppliers of raw materials, i.e. cardboard. The planned further price increases in the sector will probably also have an impact on higher purchase prices of drugs or food products packed with cardboard packaging.

Paper mills are preparing for various scenarios. They count on an energy addition

The turn of the year promises to be very disturbing. Reports about possible interruptions in the access to electricity and gas for companies producing raw materials and the constantly rising costs of energy itself are the main factors that prevent the packaging industry from being optimistic about the upcoming winter. Paper mills in Poland and Europe are already preparing for various possible scenarios by introducing, among others, “Energy additive” in the amount from 170 to even 500 EURO per ton of raw material needed for the production of cardboard packaging.

– The conditions in our industry change from week to week. Paper producers from Poland, as well as foreign ones, are constantly introducing further increases on their products, which we use for the production of cardboard packaging. This is mainly the effect of the increase in energy and gas prices, which we are seeing throughout Europe. Some of our contractors speak directly about the temporary suspension of production. These factors will certainly affect the supply chain disruptions and, as a result, may lead to delays in the supply of raw materials for the production of packaging. Since the beginning of the year, we have intensively increased our warehouse stocks, but we cannot continue this activity – we have reached their maximum level. Paper mills shorten the time of raw material storage, and increase storage fees. For a long time, we have been paying the price for the carton on the day of delivery, not the price used when calculating the offer for the customer. On the other hand, we are also struggling with significant increases in production costs. Prices for transport, paints and pallets are rising, but the most for energy. Next year, we will pay up to 250% more for electricity supplies to our production plants !! Unfortunately, such drastic increases must also affect the final prices of our products. I estimate that if the situation does not stabilize in the coming months, the prices of cardboard packaging may increase again by a dozen or even several dozen percent, comments Grzegorz Łajca, President of the Akomex Group.

Cardboard is up to 100% more expensive.

In the cardboard packaging sector, the costs of the raw material – cardboard (by over 50%, and some types even by 100%) and all consumables increased rapidly in the past year. The prices of pallets used in transport increased by 170%, foil for packaging by 60%, varnishes and paints used in the production of cardboard packaging by 20%, and cardboard boxes used in transport by 40%.

The Akomex Group manages three factories: in Poland and in Denmark. It employs over 600 people. It consists of 3 companies: Akomex, DrukPak and Danish Plano Pack. The manufacturer provides packaging, as well as leaflets, labels, trays and laminated sheets for industries such as pharmaceutical, food, personal care, electronics and home accessories.

The owner of Lidl and Kaufland will produce paper

The Finnish Stora Enso group wants to sell its German paper mill Maxau to the Schwarz Group, owner of the Lidl and Kaufland networks. The plan of the German retailer is to continue the production of paper at the plant, and 440 employees from Maxau will be working for the Schwarz Group.

Stora Enso is a leading global provider of renewable solutions for packaging, biomaterials, wooden structures and paper.

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