John Penhallow01.24.23
The Prinzhorn Group makes packaging. Lots of it. It has plants in Austria, Hungary, the Czech Republic, Slovakia, Romania, Moldavia and ex-Yugoslavia (oh, and a sprinkling in Germany, Greece and Turkey). Notice anything special about these countries, except the last three? Come on, let’s not always see the same hands go up! Yes that’s right, these lands were once all part of the Austro-Hungarian empire.
Founded in the 12th century, it died in 1918. But long before that, in 1853 to be precise, Wilhelm Hamburger founded a paper mill in Austria. After a series of acquisitions, Thomas Prinzhorn took over management of the group in 1972. Today the group, still owned in part by the founder’s family and based, of course, in Vienna, has some 10,000 employees, sales of 2.3 billion euros, and is Europe’s third biggest packaging producer. The latest rumors from Prinzhorn say the group is considering a strategic investment by acquiring the struggling Italian box plant Scatolificio La Veggia. This will not go ahead until after a creditors’ meeting in March.
The century-old Austrian group Mayr Melnhof (MM), one of the world leaders in the production of cardboard and folding boxes, and also based in Vienna, has managed to sell its two packaging sites in Russia, Saint Petersburg and Pskov, to the Russian investor Granelle for 134 million euros. In 2021, these factories had sales of approximately 124 million euros. The transaction is reckoned to have a neutral impact on MM’s net profit. Last year, the group posted a turnover of 3 billion euros. For the record, Mayr Melnhof Karton AG had already stopped trading cardboard and paper from Europe to Russia in early summer 2022 and was no doubt very happy to wave goodbye to its Russian plants.
Alliance Etiquettes, which was founded in 2015 by its current president, Olivier Laulan, is carrying out its 10th external growth operation since its creation. This operation brings its turnover to more than 120 million euros. The company plans more acquisitions, particularly in Southern Europe, so watch this space.
Now renamed Autajon Packaging Pacific, the South Korean company, which France’s Autajon has just acquired, specializes in the manufacture of folding boxes for cosmetic products. It strengthens the presence of the Autajon Group in Asia, where two of its companies specializing in labels, Autajon Labels Shanghai and Autajon Labels Guanghzou, are already present. Just last month, Autajon also acquired the California-based company ZappPackaging. This is now the third Autajon plant in the US.
A more modest success story involves a firm not quite so venerable as the two Austrians mentioned above, but at 50, too old to be a startup. Sleever International, as its name does not suggest, is 100% French. Its founder and CEO is Eric Fresnel. Sleever makes both films and application equipment for sleeve labels, and today has 14 industrial sites on five continents. At the recent ATF Flexo congress in Dijon, Sleever took top prize in the shrink sleeve label category for its Crémant d’Alsace wine label.
In 2021 in Italy, the label sector grew by 10.4% with a turnover of 832 million euros – much better than the average for Italian manufacturing, but in line with annual purchases of labelstock (+10.1%). Exports rose by 19% and EBITDA margins were up by over 8%.
The European context outlined by FINAT is also interesting. In 2021, the average European volume growth in the labeling sector was 9.2%, with big differences between the various regions (that of Southern Europe was +8.9%) and between individual countries. Italy had a good year in 2021, but other countries show a negative trend, including Germany (-0.9 %) and the Netherlands (-2.1%).
“And sometimes a simple part or component worth peanuts can prevent a machine from being delivered,” says Demol sadly.
There were predictable shouts of outrage from Paris: “Our national companies will be unable to compete against their European counterparts.”
The terms of the French “energy shield” would seem to forecast an increase of 400% in the price of energy for businesses. Label converters are generally able to pass on this and other cost increases; not so for France’s bakeries. Any attempt to raise the price of a baguette is met with almost revolutionary protests. Aux armes, citoyens!
A paper machine and several finishing lines (embossing, coating…) make up the production capacity. Marco Nespolo, CEO of Fedrigoni, was suitably enthusiastic: “We have been working as a supplier with Zuber Rieder for years, and we know each other well. We value their products and are sure that this integration into our group will offer them new opportunities. France is the land of wine and luxury goods. With this acquisition, we are expanding our offering to become the benchmark for high-end labels.”
The company has just finished installing a 330 mm Lemorau MEBR+ press at Spanish converter Etiquetas Rospial’s site. Lemorau has already installed several presses in the USA, and also in India, Morocco, Jordan, Algeria and Bulgaria.
This latest solution will combine the Logomatic 410 linerless labeling technology with UPM Raflatac’s Opticut linerless direct thermal labeling material, launched in 2021. In addition to eliminating liner waste, linerless labeling increases label roll capacity by 50% and reduces the CO2 footprint, as Logopak points out. Initially, this collaboration will be aimed at the automated labeling of secondary packaging.
The “or” has been greeted by a sigh of relief from the industry, and by protests from ecology activists who see it as a “watering down” of their view that non-reusable packaging should be penalized. But so far it’s only a draft, so don’t hold your breath.
According to Bob Veitch, owner and managing director, “Our business is growing, and we needed more volume and more colors. The new press gives us a number of new opportunities, and especially making it possible to create multi-page peel-and-read labels has been a valuable contribution.”
Moral: however bleak the outlook, people don’t stop getting ill.
Founded in the 12th century, it died in 1918. But long before that, in 1853 to be precise, Wilhelm Hamburger founded a paper mill in Austria. After a series of acquisitions, Thomas Prinzhorn took over management of the group in 1972. Today the group, still owned in part by the founder’s family and based, of course, in Vienna, has some 10,000 employees, sales of 2.3 billion euros, and is Europe’s third biggest packaging producer. The latest rumors from Prinzhorn say the group is considering a strategic investment by acquiring the struggling Italian box plant Scatolificio La Veggia. This will not go ahead until after a creditors’ meeting in March.
The century-old Austrian group Mayr Melnhof (MM), one of the world leaders in the production of cardboard and folding boxes, and also based in Vienna, has managed to sell its two packaging sites in Russia, Saint Petersburg and Pskov, to the Russian investor Granelle for 134 million euros. In 2021, these factories had sales of approximately 124 million euros. The transaction is reckoned to have a neutral impact on MM’s net profit. Last year, the group posted a turnover of 3 billion euros. For the record, Mayr Melnhof Karton AG had already stopped trading cardboard and paper from Europe to Russia in early summer 2022 and was no doubt very happy to wave goodbye to its Russian plants.
M&A in France
France’s Alliance Etiquettes has continued its M&A strategy with the acquisition of Tonutti Tecniche Grafiche S.P.A. This Italian family-owned company specializes in labels for the wine and food sectors. With just over 100 employees, it has a turnover of 21 million euros.Alliance Etiquettes, which was founded in 2015 by its current president, Olivier Laulan, is carrying out its 10th external growth operation since its creation. This operation brings its turnover to more than 120 million euros. The company plans more acquisitions, particularly in Southern Europe, so watch this space.
Now renamed Autajon Packaging Pacific, the South Korean company, which France’s Autajon has just acquired, specializes in the manufacture of folding boxes for cosmetic products. It strengthens the presence of the Autajon Group in Asia, where two of its companies specializing in labels, Autajon Labels Shanghai and Autajon Labels Guanghzou, are already present. Just last month, Autajon also acquired the California-based company ZappPackaging. This is now the third Autajon plant in the US.
A more modest success story involves a firm not quite so venerable as the two Austrians mentioned above, but at 50, too old to be a startup. Sleever International, as its name does not suggest, is 100% French. Its founder and CEO is Eric Fresnel. Sleever makes both films and application equipment for sleeve labels, and today has 14 industrial sites on five continents. At the recent ATF Flexo congress in Dijon, Sleever took top prize in the shrink sleeve label category for its Crémant d’Alsace wine label.
Keeping ahead of inflation
On November 30, the Italian label association Gipea rather belatedly presented its annual report for 2021, based on aggregate results for 84 Italian label converters. The conclusion was a “coherent and positive picture,” according to Gipea president Elisabetta Brambilla.In 2021 in Italy, the label sector grew by 10.4% with a turnover of 832 million euros – much better than the average for Italian manufacturing, but in line with annual purchases of labelstock (+10.1%). Exports rose by 19% and EBITDA margins were up by over 8%.
The European context outlined by FINAT is also interesting. In 2021, the average European volume growth in the labeling sector was 9.2%, with big differences between the various regions (that of Southern Europe was +8.9%) and between individual countries. Italy had a good year in 2021, but other countries show a negative trend, including Germany (-0.9 %) and the Netherlands (-2.1%).
Gummed up supply chains
European label press manufacturers are in a bind: “We just can’t judge which way world label markets will move in 2023,” says Codimag’s Benoît Demol. But in addition to this economic context, Europe’s equipment manufacturers are facing unprecedented supply difficulties, in particular for electrical, electronic and above all mechatronics. Whatever the suppliers, deliveries that used to be around 3-6 weeks have increased to 10-12 months or even more for certain components.“And sometimes a simple part or component worth peanuts can prevent a machine from being delivered,” says Demol sadly.
Our daily bread
In the summer of 2022, the very volatile European electricity market ran wild. Spot prices topped €1,100/MWh at the beginning of September before stabilizing at around €550/MWh. European authorities tried to implement several measures aimed at limiting the impact of this situation. However, Spain and Portugal rapidly went their own way and now have an average price of €130/MWh. Germany also broke ranks with subsidies that should allow German industrialists to benefit from an average electricity price of €165/MWh.There were predictable shouts of outrage from Paris: “Our national companies will be unable to compete against their European counterparts.”
The terms of the French “energy shield” would seem to forecast an increase of 400% in the price of energy for businesses. Label converters are generally able to pass on this and other cost increases; not so for France’s bakeries. Any attempt to raise the price of a baguette is met with almost revolutionary protests. Aux armes, citoyens!
Fedrigoni swallows Zuber Rieder
After Tageos, an RFID producer based in Montpellier, was acquired in 2022, the Fedrigoni Group has just announced its second acquisition in France with the purchase (for an undisclosed price) of Zuber Rieder. This mill produces label papers for the wine and spirits sectors. With 130 people, Zuber Rieder sells 20,000 tons of paper, of which 5,000 tons are outsourced, and has annual sales of around 45 million euros.A paper machine and several finishing lines (embossing, coating…) make up the production capacity. Marco Nespolo, CEO of Fedrigoni, was suitably enthusiastic: “We have been working as a supplier with Zuber Rieder for years, and we know each other well. We value their products and are sure that this integration into our group will offer them new opportunities. France is the land of wine and luxury goods. With this acquisition, we are expanding our offering to become the benchmark for high-end labels.”
Small but beautiful
Portugal rarely hits Europe’s headlines, but since its entry into the European Union in 1986 this small country has quietly been getting more prosperous. Founded in 1987, Lemorau is a growing and innovative Portuguese company that produces finishing machines for the worldwide label industry. Well established in its home market, it is now present in over 70 countries.The company has just finished installing a 330 mm Lemorau MEBR+ press at Spanish converter Etiquetas Rospial’s site. Lemorau has already installed several presses in the USA, and also in India, Morocco, Jordan, Algeria and Bulgaria.
Linerless
UPM Raflatac and Germany’s industrial labeling and identification specialist Logopak are to cooperate in developing an application solution for linerless labels. “By joining forces with Logopak,” says Ville Pollari of UPM Raflatac, “We can deliver first-class solutions, especially in the area of automated labeling.”This latest solution will combine the Logomatic 410 linerless labeling technology with UPM Raflatac’s Opticut linerless direct thermal labeling material, launched in 2021. In addition to eliminating liner waste, linerless labeling increases label roll capacity by 50% and reduces the CO2 footprint, as Logopak points out. Initially, this collaboration will be aimed at the automated labeling of secondary packaging.
To reuse or to recycle…
....that is the question the European Commission has been deliberating during the fall of 2022. Now it has published a draft proposal that goes some way toward meeting the demands of Europe’s label and packaging sectors. The nub of the latest proposal is that packaging produced or imported into the EU shall be “designed, manufactured and marketed in such a way as to permit re-use or high-quality recycling.”The “or” has been greeted by a sigh of relief from the industry, and by protests from ecology activists who see it as a “watering down” of their view that non-reusable packaging should be penalized. But so far it’s only a draft, so don’t hold your breath.
Britain on a limb
Readers of L&NW will be aware that Britain has been having a few problems of late. With four prime ministers in the past 12 months, strikes, high inflation, high public debt and low public confidence in the government’s ability to put things right, Britannia is looking shaken. All this has led many label converters to adopt a wait-and-see attitude to their investment plans. An exception is CV Labels in Scotland. This small but highly specialized converter has just installed a third Nilpeter FB 350 press. With just 20 employees, CV Labels is one of the UK’s leading pharmaceutical specialists.According to Bob Veitch, owner and managing director, “Our business is growing, and we needed more volume and more colors. The new press gives us a number of new opportunities, and especially making it possible to create multi-page peel-and-read labels has been a valuable contribution.”
Moral: however bleak the outlook, people don’t stop getting ill.