European paper firms bank on investment | Analysis

Packaging News asked Graham Carberry, Director at Livingstone, to comment on a new report by Moody’s Investors service.

Moody’s says Euro paper market capital expenditure is to rise and many will want to strengthen their packaging sector presence.

Carberry says that the industry knows that opportunities in paper manufacturing are very limited so corporate activity is driven by reducing operating costs relative to production.
“The value is created through the conversion, whether it is film lined cartonboard to create barrier properties or metallic finishing for better visual appeal and the creation of the pack,” he says.

Carberry adds: “Packaging can vary format and medium and adapt to new trends and opportunities – whether customer choice or legislative driven, this simply isn’t the case for the paper manufacturers. The growth of Asian manufacturers threatens European paper in a way that the packaging sector, with its need to be close to food production and the high level of customer interaction and food safety legislation requirements, is not.”

He also says that despite being linked in many people’s minds, the dynamics and prospects of paper and of packaging are very different.

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