Family-run packaging group still on road to international success

Ebersdorf bei Coburg, 18 April 2019 +++

In 2018, the Schumacher Packaging Group, which is one of the largest independent family-run manufacturers of packaging solutions made from corrugated and solid board, increased their sales again. Compared with the previous year, there was a sales growth of mover than 6 percent – to the current figure of EUR 627 million. The number of employees also climbed to more than 3300.

“Price before volume” growth principle

However, Björn Schumacher, CEO of the Schumacher Packaging Group, explains that the increase in sales had certainly not been the key objective of the past year: "In 2018, once again, the packaging sector had to cope with a very difficult environment – increasing raw material costs for paper caused a drop in revenue and made a large hole in the budget. Our motto was "price before volume". Of course, we are not unhappy that in spite of all this, we were able to achieve a considerable profit," continues Björn Schumacher. "However, sales in the industry are still a long way from where they ought to be. The increased costs in all areas still require strict price discipline."

The new Greven plant: a success story

One of the driving forces behind the positive sales trend in the past year was the very pleasing development in the corrugated cardboard plant in Greven. Schumacher Packaging had built the brand-new production facilities in the Airportpark at Münster-Osnabrück Airport in 2014. Since the plant opened, the packaging specialist has made further investments costing tens of millions of euros and doubled the production capacity there. "In 2018, Greven was the only place where our sales increased by more than 20 percent," reports Schumacher. "But we also made a profit in all other markets – whether in Germany, in our Polish plants or in the Netherlands."

EUR 200 million – for more independence in terms of paper raw materials

Schumacher Packaging has set the course for further growth. “Our investment strategy for the next four years totals 200 million euros,” explains Björn Schumacher, “more than 50 million of which has been earmarked for this year." A significant portion of the sum will go into technological innovations at all sites. The family business is also pursuing strategic objectives with its investment programme. "Greater self-sufficiency in the supply of raw materials is particularly important to us," explains Schumacher. In Myszków, Poland, the group took over a paper plant at the end of 2016 to convert it to recycled corrugated base papers. "Production began there in March, and in a few months, our plant will have taken the first step towards reaching a production capacity of around 150,000 tons, and later, in a second step, 300,000 tons per year," explains Schumacher. "Together with the plant in Grudziądz, the total figure will be over 400,000 tons." However, growth plans are not yet complete: "Beyond this investment of EUR 200 million in existing sites, we also want to press ahead with our expansion by acquiring additional companies."

Mass volume digital printing ready for mass production

Schumacher Packaging is recognised as a leader in productivity and technology in the packaging sector. For example, the company was the first in Germany to use modern mass volume digital printing on an industrial scale. The benefits of modern printing technology for high-volume print runs: it combines speed with high-quality, multicoloured print images at almost offset quality. This makes digital printing faster and more environmentally friendly than flexo printing because no printing blocks are needed. It is also possible to randomly vary the print images, up to the custom printing of each individual item of packaging. “The machine prototype, which we have tested and perfected in an industrial setting in Ebersdorf in collaboration with our technology partner Durst, will be ready to go into mass production this year. Then we will install digital printers in yet more sites.” Björn Schumacher reveals: "We now have the next evolutionary phase of this technology in sight."

CargoPropal pallets – as light as paper, as sturdy as wood

The material innovation CargoProfil is now being put into mass production at Schumacher Packaging too. CargoProfil is a wood profile made from twisted containerboard, which combines the stability of wood with the light weight of paper and is 100% recyclable. Since the cover frames from the material were initially available under the name CargoProtop, the new CargoPropal pallets are now also ready to go into mass production. “We have now concentrated the mass production of both products made from CargoProfil in our Czech plant in Nýrsko,” explains Björn Schumacher. Due to their light weight, the new CargoPropal pallets pose a very interesting alternative to traditional wooden pallets. “A CargoPropal can be handled and loaded like any traditional Euro pallet,” explains Schumacher. "It is just as stable, but has a distinct advantage: "instead of the 28 kg like a traditional wooden pallet, the CargoPortal only weighs 7 kg." Unlike wood, the paper profile doesn’t require any pretreatment, it is hygienic and therefore ideal for transporting food products too.

The forecast: no easy environment for 2019

Asked about his economic forecast for the current year, Björn Schumacher certainly envisages risks for the packaging sector. "Economic cooling is one factor. We could also be occupied with Brexit and its consequences, as well as the trade dispute with the USA," says Schumacher. A growing protectionism could impact on customers’ business, thereby suppressing the demand for packaging. However, the trend for Schumacher Packaging so far was definitely pleasing. "Our first few months of 2019 were better than the same period last year. In all our plants, current capacity utilisation is very good to excellent – we aren’t observing any slump in demand," concludes Björn Schumacher. "Even though growth has decelerated somewhat."