Market Share of Sack Kraft Paper Industry
The sack kraft paper market is relatively fragmented, with a large volume of players, including Mondi, Nordic Paper, and Segezha, among others, which can cut out co-packers in the market. Further, the players' distribution channels and raw materials impact the regional market competition. Vertical integration, which means raw material suppliers acquired by converters/packaging companies, has been a trend for the past couple of years.
August 2022: French paper and sacks manufacturer Gascogne signed a syndicated loan contract worth EUR 126.8 million (USD 126.4 million) with a banking pool and an agreement worth EUR 50 million (USD 49.8 million) with the European Investment Bank (EIB) to finance its Capital Expenditure program for the 2022-2026 period.
The investment program mainly includes the installation of a new paper machine at the company's Mimizan mill in Southern France. Gascogne said that it entered into exclusive negotiations with a paper machine manufacturer to finalize the purchase agreement before the end of the year. The company intends to invest a total of EUR 300 million (USD 299.1 million) in 2022-2026. To finance the investment program, it has set up a financing plan which includes the investment loans mentioned above and a future increase in capital of at least EUR 10 million (USD 9.9 million), amongst others.
According to Gascogne, the installation of the paper machine, including the building and the technical environment, will cost EUR 220 million (USD 219.4 million). In addition, the reinforcement of the existing industrial assets will be pursued for EUR 80 million (USD 79.7 million).
Sack Kraft Paper Market Leaders
Mondi PLC
International Paper Company
KapStone Paper and Packaging Corporation
Canfor Corporation
Gascogne Group
*Disclaimer: Major Players sorted in no particular order
