INCREASE IN CONSUMPTION IN 2019 SHOULD BOOST PACKAGING PRODUCTION

Published by pakmatic

Packaging Production

The paper market expects the resumption of consumption to boost packaging production.
In recent years, with the fall in domestic demand, companies in the sector have increased exports.
“There is the prospect of improvement in 2019. The packaging segment has a very strong connection with the GDP. We believe in the growth of demand”, says the commercial director of Ahlstrom-Munksjö in Latin America, Luciano Neves.

packaging paper

Pöyry's manager of economic studies, Manoel Neves, points out that packaging paper is directly benefited by the improvement in the economic environment.
“A positive cycle is expected and every type of product uses packaging: food, medicine, consumer goods, among others.”
Faced with this scenario, Ahlstrom-Munksjö invested approximately R$ 100 million in its plant in Jacareí (SP) to expand the production capacity of coated special papers (used in the manufacture of packaging).

Market demand

“We produce 105 thousand tons of paper per year. With this expansion, 100% of this capacity can be converted into special papers”, explains Luciano Neves.
The executive says that in 2018 the domestic market demand was lower than expected.
“It has been difficult, it has grown very little. We see the demand very lukewarm, similar to 2017.”
Due to this scenario, the company had to adjust the original planning to maintain production at 100% of the installed capacity, exporting more.
“We oriented our business towards developing the market and exporting more.

Our focus is Latin America and we are also looking for the United States”, says Luciano Neves, who estimates that exports totaled around 30% of production in the last two years. “Previously, it was around 10%.”

Special paper factory

The company expects that, with the improvement of the Brazilian economy, this percentage of exports will be reduced. “When the product is exported, the logistical cost is higher”, he points out.
In addition to the investment in the Jacareí unit, Ahlstrom-Munksjö bought a specialty paper factory from MD Papéis, in Caieiras (SP).
The investment was close to R$ 400 million.
“We have confidence in the Brazilian market and in Latin America. We decided to invest before the presidential elections and we believe in the growth of the segment”, says the executive.
Hygiene and consumption

economic environment

Manoel Neves points out that, in addition to the packaging market, the tissue paper segment (for hygienic use) should benefit from the improvement in the economic environment.
“It is a sector directly linked to income, health and hygiene, which are already growing”, he points out.
Solenis, a manufacturer of chemical specialties for several markets, such as pulp and paper, oil and gas and mining, assesses that it had a positive year in 2018, but below expectations.

Feedstock

“There was some frustration with the regional economic performance and we were affected by the inflation of raw materials and the appreciation of the dollar”, says Solenis' vice-president Latin America, José Armando Piñón Aguirre.
The executive says that the company grew over 10% this year, mainly due to the pulp and paper market.

packaging segment

“It is an area that has a very high competitiveness. We have seen important growth in the tissue segment and we look forward to growing together with our customers in the packaging segment.”
Aguirre says that the inflation of inputs used by the company was caused by hurricanes that hit factories in the chemical sector in the US and by the closure of plants in China, due to environmental restrictions.
“It affected the global supply of raw materials. With the currency devaluation, this became even higher.”
The company has three manufacturing units in Brazil, located in the interior of São Paulo, and expects to grow at least twice the GDP in 2019.
“In recent years, the country's economy has shrunk, but we have always grown. We seek to prepare ourselves, regardless of the macroeconomic scenario.

But growth would benefit us,” says Aguirre.

Source: CELULOSE ONLINE

Available at: https://www.celluloseonline.com.br/producao-de-embalagens

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