Packaging

Packaging Merger

  |   Packaging, Special Announcements

The 2nd largest Uncoated Recycled Paperboard producer, Caraustar, has acquired Newark Group, the 3rd largest producer. The new company would have a 33% share of the market (Sonoco leads with 35%). Private Equity Firm H.I.G. Capital will own the combined company.

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Packaging Gaining Momentum

  |   Packaging

As we begin the second half of 2014, growth in packaging is gaining traction and is expected to enter 2015 on solid footing. Boxboard mills are running full, and operating rates approximate 92%. The pricing climate for both resin and fiber is positive and paper is increasing share of market versus plastic. Export activity is improving, and the only concern is the threat of a West Coast dock strike.

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Packaging Business Combinations

  |   Packaging

Box shipments continue to be weak. The SBS $50 increase announcement is still not showing Market support – even though demand is generally solid. Supply chains are being repositioned as Georgia-Pacific purchases converter SPG Holdings and Hilex buys Durobag – combining leading plastic and paper bag producers (as more cities ban the use of plastic bags).

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Packaging Strength Mixed

  |   Packaging

Although Box shipments have been weak (still not recovering from the lack of activity during a long winter), Cupstock and SBS Folding have been strong with $50 and $40 increases being implemented to a large degree. The worse than usual winter has made it very difficult for mills to access their fiber sources.

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