Schumacher Packaging sets course for a successful long-term future
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Ebersdorf near Coburg, Germany, 22 July 2024 +++ Against the backdrop of the dramatic and rapidly advancing concentration in the packaging industry, the Schumacher entrepreneurial family is taking a far-sighted approach to setting the course for a secure future for the long-established company. To this end, the management is in advanced talks with potential partners. An initial agreement for the Polish subsidiary has just been signed.
For some years now, there has been a rapid increase in concentration and consolidation in the industry. This has given rise to several globally active groups with sales of over EUR20 bn. With their geographical reach, their production and sales power and their capital strength, these giants pose a serious threat to medium-sized, owner-managed companies such as Schumacher Packaging. “Although we are one of the fastest growing companies and recognised innovation and technology leaders in the industry in Europe, we cannot ignore these changing market conditions. In a few years‘ time, the pressure on companies like us with a current turnover of around one billion euros will be noticeably greater than it is today,” explains Björn Schumacher, CEO of the Schumacher Packaging Group.
In addition, conditions have become even tougher since the start of the Russian war of aggression against Ukraine in February 2022. Since then, the consumer climate has deteriorated in almost all major European markets as a result of political and economic instability and consumer uncertainty. This has also led to a drop in demand for the packaging industry. Although all competitors have been affected by this, smaller and medium-sized companies such as Schumacher Packaging have been hit harder.
Securing the future through partnerships with larger companies
“Against this backdrop, our analyses and future planning led us to the conclusion that continuing as an independent, family-run company would entail significantly more risks than continuing the business in a group with one or more larger competitors,” says Schumacher.
This is because the international size of the company, i.e. the number of locations and countries and therefore proximity to customers, as well as sustained financial strength for investments will be the decisive success factors for being recognised as a strong, relevant partner by customers in the medium and long-term.
Björn Schumacher: “Out of responsibility for the sustainable competitiveness of our family business, we are therefore in advanced talks with potential strong partners. With companies that share the same entrepreneurial vision for our industry and have the size and strength to actively shape the future of packaging together with us in the long-term.”
Sale of the Polish subsidiary to the Spanish Saica Group
Such a future-proof solution has already been agreed for Poland. An agreement has just been concluded with the Spanish Saica Group to take over the Polish subsidiary of Schumacher Packaging. The agreement covers all activities in Poland: the entire management, all employees, two state-of-the-art corrugated board plants in Bydgoszcz and Wrocław, two paper mills in Grudziądz and Myszków, one of which was completely modernised in 2023, and three service centres. Schumacher Packaging employs 1,540 people in Poland and generated sales of EUR327 million last year. The Completion of this transaction is pending clearance by the Polish anti-trust authorities, as well as the fulfilment of certain conditions precedent.
With sales of around EUR3.62 bn in 2023 and a strong presence in 10 European countries, Saica has the necessary size to sustainably compete in this tough environment. Björn Schumacher emphasises: “We are very pleased about this agreement with Saica - both for our customers and for our Polish employees. This is an important first step for us in our strategy for the future. With Saica, there is also great cultural proximity between the two family-run companies, which will enable rapid integration.” Both companies work with great passion towards the vision of climate-neutral packaging made from renewable raw materials. The products and services of both companies complement each other in Poland. Saica is also closing a gap in Europe's sixth-largest economy, strengthening its already extensive geographical coverage.
The spin-off of the subsidiary will have no impact on the operational business of the group, which will then have 2,400 employees and 17 locations in 5 European countries (Germany, Czech Republic, United Kingdom, Italy, Netherlands). This is because the Polish organisation works almost independently of other country organisations with its own management. Business will continue as before. “Even after the spin-off of the activities in Poland, Schumacher Packaging is in an excellent position and is a strong partner for its customers in terms of security of supply and innovation,” says Schumacher.
Goal: Securing the future of entire Schumacher Packaging Group
The aim of the ongoing talks with potential partners is to integrate the healthy company, which has been built up over three generations, into larger, more international companies in the medium term and thus create planning security for customers and employees. The connection with larger partners is intended to contribute to acting even stronger, even better and more innovatively together and to creating even greater customer proximity than Schumacher Packaging could achieve on its own. Björn Schumacher: “If we were to remain an independent company, we would in the medium term no longer be able to keep up with the growth momentum that larger companies in our industry realise through acquisitions and mergers. But with this far-sighted decision by the entrepreneurial family, we are now setting the course for a successful long-term future.”