AF&PA Releases June 2024 Packaging Papers Monthly Report

WestRock Company announced that its wholly-owned subsidiary WRKCo Inc. commenced a consent solicitation through which it is soliciting consents from registered holders of the Notes to amend certain terms of the indentures governing the respective Notes. The terms and conditions of the Consent Solicitation are set forth in a consent solicitation statement dated as of September 20, 2023. Adoption of the proposed amendments with respect to the applicable Indenture for each series of Notes requires the Consent of the Holders of at least a majority in aggregate principal amount of the then outstanding Notes of such series. The purpose of the Consent Solicitation is to obtain Consents from the Holders to (i) amend the definition of “Change of Control” applicable for the relevant series of the Notes under the Indentures to add an exception for the previously disclosed proposed business combination of WestRock and the Smurfit Kappa group announced by WestRock on September 12, 2023, pursuant to the transaction agreement entered into on September 12, 2023, by and among, inter alios, Smurfit Kappa Group plc, a public limited company incorporated in Ireland, and WestRock; and (ii) make any other changes of a technical or conforming nature to the Indentures necessary or desirable for the implementation of the proposed amendment above.

Sealed Air Corporation announced price increases ranging from five to eight percent for the majority of its Food Care division’s North American products. The increases will be effective October 2, 2017. “Sealed Air has not had a price increase for Food Care products in North America since 2014, and we are working to minimize the cost adjustments and their impact on our customers,” said Karl R. Deily, President, Sealed Air Food Care; “However, notable increases in our input costs, including a 31% rise in the price of polyethylene since 2016, make changes to our prices necessary in order to continue to deliver the same level of value and innovation to our customers.” The price changes include a five percent increase on all shrink bags, rollstock products, food films and vertical pouch packaging, as well as a six percent increase on unpadded solid plastic trays and an eight percent increase on pre-padded solid plastic trays.

The global furniture retailer XXXLutz Group is taking pioneering steps towards the goal of climate neutrality and sustainability. Teaming up with Stora Enso they are exploring game-changing alternatives to conventional packaging materials: Papira® and Fibrease® by Stora Enso. The collaboration is a milestone in the quest for eco-conscious packaging solutions and is a part of Stora Enso´s strategy to partner up with market leaders. By substituting traditional polymeric foams with lightweight wood-based alternatives, significant reductions in CO₂ emissions are possible. Similar to other used materials, like paper and cardboard, the foam materials are recyclable and can be disposed with paper and thus returned to the cycle. “Fibrease and Papira are the result of years of relentless research by a dedicated team. We believe that our renewable resource, the forest, is the solution to many of the environmental challenges facing us today. Producing a sustainable and recyclable packaging foam is a giant leap towards a greener future. Many industries today look towards lowering the CO2 footprint and Stora Enso´s dedication to innovation provides tangible solutions to this issue for companies and consumers alike”, says Ivan Christensen, Business Development Manager Biofoams.