Greif invests $10 million in Concord, North Carolina plant expansion

Committed to bringing innovative and sustainable solutions to the market, Klabin, Brazil’s largest producer and exporter of packaging paper and paper packaging, has developed a new version of its paperboard Klamulti, designed for beverage packaging (multipack), which now has microfibrillated pulp (MFC) in its composition. This innovation, led by the Product Development and Technology Center teams at Klabin, was produced at the MFC plant located in Telêmaco Borba, Paraná. Experiments proved that the addition of MFC in the paperboard composition significantly improves the product’s properties and performance while also reducing grammage. As such, the new solution is capable of creating lighter and more resistant packaging, enhancing the efficiency of the material. The MFC production process develops the microfibrillation of the walls of pulp fibers, enabling a wider connection area between them, thereby increasing the paper’s mechanical strength.

The polyethylene terephthalate (PET) is facing new challenges following damages at feedstock monoethylene glycol (MEG) plants. The damages resulted in a force majeure declaration by three MEG producers, which in turn led to a force majeure declaration by a PET producer. Asia is being considered as a possible supplier of MEG until domestic plants resume operations. Local sources are hopeful that water and power at the affected plants in Louisiana may be restored in early October, but believe that the impact on PET availability will be significant. This has tightened supply as demand has remained robust. Although resin imports from Latin American may offset part of the shortage, many believe that pellets prices are likely to increase. Inquiries to Asian PET suppliers have shown an increase as prices in the region are low at $650-680/tonne FOB, but delivery would take weeks.

For the First Quarter of Fiscal 2022 *Net sales increased 21.0% to $2.3 billion compared to $1.9 billion in the first quarter of fiscal 2021 due to the favorable impact of fewer COVID-19 restrictions compared to the first quarter of fiscal 2021. *Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 18.0%, driven by a 10.0% increase in transactions and an 7.3% increase in average ticket. *Gross profit increased to $941.0 million compared to $753.8 million in the first quarter of fiscal 2021. As a percentage of net sales, gross profit increased to 40.1% compared to 38.9% in the first quarter of fiscal 2021, primarily due to leverage in fixed costs, strong growth in other revenue, and favorable channel mix shifts, partially offset by lower merchandise margin. *Operating income increased to $437.7 million, or 18.7% of net sales, compared to $305.3 million, or 15.8% of net sales, in the first quarter of fiscal 2021. *Net income increased to $331.4 million compared to $230.3 million in the first quarter of fiscal 2021.