Cardboard packaging manufacturer Smurfit Kappa has reported “solid” demand for recycled and kraftliner grades.
In its latest trading statement for its third quarter of the financial year, the company reported revenue growth up by 10 per cent year-on-year in the third quarter to take pre-tax earnings up to €303 million (£255 million).
Smurfit Kappa Group (SKG) chief executive Gary McGann said: “Packaging volume growth has remained solid throughout the year, and European box volumes continue to grow ahead of the general market. Our volume performance reflects continuing gains in business areas where we work as a partner to our customers across their markets: rationalising their supply chains, removing costs and consistently developing innovative packaging that is both efficient for transport and an effective retail medium at the point of sale.
“The group’s European containerboard operations are experiencing solid demand for both recycled and kraftliner grades which is underpinning recent price increases. Reflecting good market conditions, the group announced a recycled containerboard price increase of €30 per tonne for implementation from 1 November. The benefit from recent paper increases is only achieved in SKG’s integrated system when the price increases are pushed through to the box prices with the usual time lag.”
