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THIN WALL PACKAGING INDUSTRY CONSOLIDATES FOR BETTER RESULTS

AMI, Bristol, 29/03/12 — A new report from industry consultants, AMI Consulting, published in March 2012, highlights the dynamic structural changes that have been occurring in the rigid plastics packaging market in recent years.

Large participants of this 2.8 million tonnes/year market have been in the vanguard of change as they fight to secure profitability in the face of the price and innovation requirements of their customers. Particularly within thermoforming applications, profit erosion has been a symptom of overcapacity and the standardisation of packaging. In response, the industry is evolving to satisfy market needs more profitably, characterised by:

•           Greater throughput across a reduced number of converting sites

•           Focused investment in core sites

•           Investment in integrated extrusion thermoforming

•           Exit from unprofitable business

•           Emphasis on differential advantage.

In 2011, the top 10 converters accounted for over 40% of the market. Outside of the leader base, thin walled packaging supply in Europe remains relatively fragmented and more consolidation is expected. The ranking has changed dramatically in the past few years as the industry actively consolidated.

 Figure 1: Thin Wall Packaging - competitive landscape 2011

 

Paccor International is the new market leader. The company was created in 2011 by the acquisition and full-scale integration of three of Huhtamaki's sites, Veriplast's rigid plastics sites across Europe and Pannunion's sites in Central and East Europe. RPC Containers has also increased its market share thanks to the acquisition of a leading injection moulder, Superfos A/S in 2011. Following a number of previous acquisitions, Groupe Guillin bought Sharp Interpack in 2010, which strengthened its position in the European fruit and vegetable sector and developed relationships for meat and fish products. The Italian extruder I.L.P.A. invested in AMP Films & Packaging, which assured the company space in the rPET supply chain, as well as expanded its extrusion and thermoforming capacity. The Danish Faerch Plast has expanded outside continental Europe through acquisition of an ex-Veriplast site in the UK in 2011.

This report is aimed at assisting industry participants and investors in anticipating change, formulating response strategies, directing R&D investment, and proactively managing the threats. It focuses on EU27+3 markets, across different applications.

"Thin wall packaging markets in Europe" is a detailed multi-client research report published in March 2012. For further information please contact: Martyna Zimakiewicz on +44 (0)117 924 9442 mz@amiplastics.com