October 6, 2022

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Cardboard packaging will become more expensive;  We will pay more for medicines and groceries

Cardboard packaging will become more expensive; We will pay more for medicines and groceries

– We anticipate delays in the delivery of raw materials for packaging production – Announcing representatives to the Board of Directors of Acomex, one of the packaging manufacturers, among others for the pharmaceutical, food, electronic, home accessories and personal care industries. It indicates that the production of some suppliers of raw materials, such as cardboard, may stop.

The industry is concerned with the interruption in access to electricity and gas for companies producing raw materials. Combined with extremely high energy prices, future prospects look bleak.

The company notes that paper mills in Poland and Europe are already preparing for various possible scenarios, offering, among other things, an “energy addition” in the amount of 170-500 euros per ton of raw materials for the production of carton packaging.

Conditions in our industry change from week to week. Paper producers from Poland, as well as foreign ones, are constantly introducing additional increases to their products, which we use in the production of cardboard packaging. Grzegorz Łajca, President of Akomex, explains that it is mainly the effect of the increase in energy and gas prices, which we observe across Europe.

Some of the company’s contractors are directly talking about a temporary suspension of production. This will certainly affect supply chain disruptions, delaying the supply of raw materials for packaging production.

The company reports that practically since the beginning of the year it has been intensively increasing stocks in warehouses, but it still cannot protect itself in this way, because the warehouses are already full. Paper mills shorten the storage time of our raw materials, and increase storage fees. For a long time, we have been paying for the carton on the day of delivery, and not the price used when calculating the offer to the customer – says the boss.

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But not only the company’s suppliers have problems. There are also challenges in the company itself. It is struggling with a significant increase in production costs. The prices for transportation, paints, pallets and most of the energy of course are going up.

– Next year, we will pay up to 250 percent more for the electricity supply to our production plants. Unfortunately, these large increases should also affect the final prices of our products. I estimate that if the situation does not stabilize in the coming months, the prices of cartons may rise again by tens or even tens of percent – assures Grzegorz Łajca.

Increases in package prices will necessarily translate into purchase prices for medicines or food products for which carton packages are used.

In the past year, the carton packaging sector has seen significant increases in the prices of the raw material – carton. It has increased by more than 50% and, in the case of some types of cardboard, even by 100%.

Prices for pallets used in transportation increased by 170%, packaging foil by 60%, varnishes and paints used in the production of carton packages by 20%, and cartons used for transportation by 40%.

The Acomex Group operates three factories. Its factories are located in Poland and Denmark. It employs more than 600 people. About half of the company’s production is exported, mainly to Western Europe. The company provides packaging, but also flyers, labels, trays and laminated panels. Annually, about 1.3 billion packages leave the company’s production plants. In 2021, the group generated revenue of about 280 million PLN.

Morp