Japan Unites To Acquire Expansion in Europe, SKG Builds Its First Carton Factory in Morocco!

Japan unites to acquire expansion in Europe, SKG builds its first carton factory in Morocco!

Recently, United Japan announced the establishment of a wholly-owned subsidiary in Germany, United Europe, as a base to further focus on the group's business development in Europe. In addition, with the steady progress of the integration process with TRICOR Packaging & Logistics, which United acquired in 2019 and became its subsidiary, Japan United has decided to acquire a holding company headquartered in Nord in central Germany through United Europe and TRICOR Packaging & Logistics. Hausen's heavy-duty packaging material manufacturer THIMM Packaging Systems has a 100% stake and has signed a share purchase agreement with its investor (German independent general packaging manufacturer THIMM Group), and the final equity transfer execution is subject to the German Federal Cartel Office approve.

With its own companies and subsidiaries in Germany and the Czech Republic, THIMM Packaging Systems produces and sells heavy duty packaging made from a variety of materials, including corrugated cardboard, wood packaging and pallets, pulp and plastic packaging. The division has been part of the THIMM family of businesses since 1993. Last year's sales were 187 million euros. THIMM Packaging Systems employs 1075 people in 7 factories in Germany and 1 in the Czech Republic. TRICOR Packaging & Logistics produces and sells heavy-duty packaging materials such as corrugated cardboard and wooden pallets, and provides logistics services centered on the main factory (corrugating plant) in Bavaria, southern Germany. With the addition of THIMM Packaging Systems, United Group aims to expand its product portfolio, enhance its supply system, and respond quickly to a wide range of packaging needs, while aiming to become the only packaging service provider in Germany and the surrounding region.

For the THIMM Group, following the sale of its packaging systems division to TRICOR, the group will focus on the consumer goods industry in the coming years. Over the next five years, the THIMM Group plans to invest 400 million euros in automation, digitalization, modernization and expansion of all locations to achieve this. "Our customers deserve the best possible solution," explained Mathias Schlip, Chairman of the Management Board of THIMM Group, "The planned investments and our expertise in the consumer goods sector will continue to make us a commodity packaging company. and distribution leading solutions provider.”

TRICOR has been working closely with THIMM for many years, while market demands for the next growth phase of the industrial goods industry are changing rapidly, especially the automotive industry. A global production and distribution setup is required to develop further here. “Therefore, in terms of global expansion, we see the best prospects for THIMM Packaging Systems, the company and its employees working with industrial product specialist TRICOR. It’s a perfect fit, and this sale provides us with additional capital, which will provide the We are ambitiously expanding our consumer goods business with a new, independent financing strategy. We plan to double our turnover by 2030," says Mathias Schlip.

In addition to innovation and sustainability, as an independent family-owned business, the THIMM Group continues to focus on market developments, and it is increasingly important to further develop sustainable packaging solutions for the circular economy. Commercial demand for production and warehousing capacity is also increasing due to above-average growth in e-commerce and FMCG. To this end, the THIMM Group will significantly expand its factories, modernize its machinery and prepare it for the future through consistent digitization and automation, which applies to all THIMM Group factories. Its digital printing capabilities will also be significantly expanded, with THIMM Group's sustainable core competencies in corrugated board and its innovations in developing new solutions at its core. Matthias Schlip concludes: "This context contributes to the growing demand for sustainable packaging solutions and supports our strategic path towards the responsible use of resources in a circular economy."

In addition, SCG Packaging (SCGP), a paper and packaging giant in Southeast Asia that is also closely associated with Japan, plans to spend 2.45 billion baht (equivalent to about 481 million yuan) to increase its carton packaging capacity by 75,000 tons per year to meet the needs of the economy. Demand growth in recovery. Wichan Jitpukdee, chief executive of SCGP, said the new capacity is scheduled to start production in mid-2023, and its latest investment is aimed at increasing SCGP's ability to provide packaging solutions to customers. The investment will also help the company maximize its assets and further develop production technologies with the help of robotics and automation technology, as well as printing technology.

Mr Wichan said the investment, which will be made through Thai Container Group Co Ltd, a 70:30 joint venture between SCGP and Japan United, will further upgrade the machinery and be used as working capital. SCGP expects the demand for corrugated boxes in Thailand to grow, mainly driven by the increasing packaging of food and beverages, frozen and processed foods for export and hygiene products. Under the government's investment promotion policies, foreign direct investment also continued to climb and drive exports. These factors come at a time when the economy is recovering, which is helping the packaging industry grow.

SCGP has more than 50 packaging production facilities in Thailand, Vietnam, Indonesia, Philippines, Malaysia, UK and Spain. The company earlier announced plans to use eco-friendly hemp fiber in the production of its packaging materials to increase the value of its products. Mr Wichan said hemp fibre is strong and durable and has the potential to become a new cash crop in Thailand. SCGP will also continue to pursue more opportunities through investment and expansion in India and the US as they have a large market and are in the packaging business has growth potential.

The leader of the corrugated box industry in Europe, Smurfi Kapa, will invest more than 35 million euros in a new packaging plant in Rabat, the capital of Morocco. The 25,000-square-meter facility will be Smurphy Kapa's first corrugated box facility in the country and is designed to help the company "deliver innovative and sustainable packaging solutions to its local customer base quickly and efficiently." Expected to start production in early 2023, the plant will produce packaging for industries such as industrial, agriculture, FMCG, automotive, pharmaceuticals and ceramics. It will serve local clients and multinational corporations headquartered in Morocco.

Saverio Meyer, CEO of Smurfi Kapa Europe, commented: “We are very proud to announce the construction of this state-of-the-art new facility, the first of its kind for our company in Morocco. It will be located in An area with enormous growth potential and the creation of 300 direct and indirect jobs in the region. Our customers will also benefit from our fully integrated and circular business model, which will ensure a reliable supply of high-quality, value-added and sustainable product."

Ignacio Sevillano, CEO of Smurfi Capa Spain, Portugal and Morocco, added: “We are delighted that the foundation stone of the project has been completed, which is an important milestone for the project. This investment reflects the Our 'Think Globally, Act Locally' approach, which combines our global scale and expertise with the best-in-class knowledge of our local teams to understand and meet the needs of our customers in Morocco. The new facility will also contain an experience center, This is our 30th experience center globally, and it will foster enhanced collaboration with our clients and provide creative ideas and insights."

In conclusion, Edwin Goffard, Chief Operating Officer, Corrugating and Converting, Smurphy Capa Europe, concluded: "The time and location of this new facility is optimal given the current high demand for corrugated packaging. There is a constant presence, and customers want to know that their products are being shipped and displayed in the most efficient and sustainable way possible. We leverage the wealth of data we have gained from working with over 65,000 customers around the world to determine the best solution for the task at hand."

In January, Smurphy Kapa announced an investment of more than $33 million to expand its Fortaleza plant in Brazil. The expansion of the Fortaleza plant will meet growing customer demand for the company's sustainable packaging solutions. As part of the expansion, the company will install a new tile line to increase the facility's shelf-ready packaging capacity to serve FMCG customers in diverse industries such as fresh fruit, household appliances and pharmaceuticals.

Manuel Alcalá, CEO of Smurficapa Brazil, said: “We will ensure that Smurfica can support our customers to gain more share in their market. The combination of innovation centers and state-of-the-art technology will Provide more opportunities to work with clients to deliver innovative, inspiring and sustainable solutions."

Smurphy Kappa will install multiple high-end presses at the facility to increase the precision and quality required for e-commerce packaging. The expansion also includes the collaborative development of a new innovation center for customers and improved development of impactful and sustainable packaging solutions.