Elopak announced that it will further accelerate growth by expanding its capacity at the announced U.S. production plant. The new production plant situated in Little Rock, Arkansas, USA is under construction and will now include two production lines.
When announced in June 2023, the production plant included a significant investment of around USD 70 million covering land, building and equipment. State-of-the-art technology will produce Pure-Pak® cartons for liquid dairy, juices, plant-based products and liquid eggs. Over 100 permanent jobs will be created and the new production facility is expected to start production in H1, 2025.
Since this announcement, the company has sold out the full production capacity for the first production line and is experiencing continued demand. Today’s announcement of a second production line will contribute with up to USD 110 million in revenues for an incremental investment of around USD 25 million. The second production line is expected to be in production in 2026.
Thomas Körmendi, CEO says: “I am pleased to announce the expansion of the new US plant with a second production line to continue to build on and accelerate the profitable growth in the region. This is a clear response to the continued strong demand that we see for Elopak as a reliable business partner. This is a new step towards realising our newly announced long-term ambition to become a 2 EUR billion company”.
“We have sold out the full production capacity for the first production line in the new plant, further strengthening and derisking the investment case for our expansion into the US. With the construction progressing according to plan and with a continued strong demand for our products, it is time to add more capacity to better serve existing and new customers in Americas”, says Lionel Ettedgui, EVP North America.
With a joint investment of approximately EUR 29 million by Stora Enso and Tetra Pak, a new recycling line for post-consumer beverage cartons is starting operations in Poland. Stora Enso has invested approximately EUR 17 million into a new repulping line that will recover the carton fibers, and Tetra Pak along with Plastigram have invested a total of approximately EUR 12 million to build the new line. The line has the potential to triple the annual recycling capacity of beverage cartons in the country – from 25,000 to 75,000 tonnes – and provides scope to absorb the entire volume of beverage cartons sold in Poland, as well as additional volumes from neighbouring countries, including the Czech Republic, Hungary, Slovakia, Latvia, Estonia and Lithuania.
Featuring an annual capacity of 50,000 tonnes, the state-of-the-art line at Stora Enso’s production unit in Ostrołęka (Poland) handles solely beverage carton material separation, detaching fibres from polymers and aluminium. The fibres are then recycled into carton board materials, effectively contributing to material circularity by turning used paper-based packaging into new paper-based packaging materials. This new paper recycling facility is complemented by Czech company Plastigram Industries, that, together with Tetra Pak, is industrialising a solution to recycle polyAl1 into new products.
“For decades, we have been working to enhance beverage carton recycling capacity, co-investing with recyclers, technology providers and suppliers in new equipment and facilities” comments Lars Holmquist, EVP Sustainability & Communications at Tetra Pak. “In 2022, Tetra Pak contributed nearly €30 million to collection and recycling projects worldwide, with plans to go further and invest up to €40 million annually over the next years. As part of the Alliance for Beverage Cartons and the Environment (ACE), we support the industry ambition to increase the collection for recycling rate of beverage cartons to 90% and the recycling rate to 70%, in the EU, by 2030. I am very pleased to see that our collaboration with Stora Enso translates into one of the largest recycling hubs for beverage cartons in Europe, contributing to this ambition. This is also an excellent example of how systemic and collective actions can help keep quality renewable materials, like paper fibres, in the loop.”
“We are very pleased to see the results of our close cooperation with Tetra Pak, who, like Stora Enso, has the development of sustainable solutions at their core. This new modern solution marks a significant addition to European recycling capacity and a concrete step forward in the circularity of consumer packaging. In addition to complementing the current scope of our production site in Poland, the recycling facility will significantly contribute towards the recycling and waste reduction goals of the EU’s proposal for a Packaging and Packaging Waste Regulation,” says Hannu Kasurinen, EVP Packaging Materials at Stora Enso.
The new line is set to ramp up recycling of beverage cartons throughout Central and Eastern Europe, signaling the beverage carton industry’s willingness to support the circularity goals of the proposed EU Packaging and Packaging Waste Regulation (PPWR), and showcasing the pivotal role of recycling in helping the green transition of the food packaging sector. The packaging industry has already invested approximately EUR 200 million to increase the capacity for beverage carton recycling in the EU and plans to invest a further EUR 120 million by 2027.
1The non-fibre component of carton packages is known as polyAl, which designates the layers of polyolefins and aluminium being used as barrier against oxygen and humidity to protect the food content in aseptic carton packages.
Following successful commercial consumer testing in 2022, Tetra Pak and Lactogal have now launched an aseptic beverage carton featuring a paper-based barrier. This is part of a large-scale technology validation, involving around 25 million packages and currently ongoing in Portugal. Made of approximately 80 % paperboard, the package increases the renewable content to 90 %, reduces its carbon footprint by one third (33 %1) and has been certified as Carbon Neutral by the Carbon Trust™.2
Greenhouse gas emissions, food waste and plastic littering are cited as the top three environmental sustainability concerns facing food and beverage (F&B) businesses today, and this is expected to remain the case over the next five years.3 Packaging solutions like these, that expand the amount of paper and lower the carbon footprint, while ensuring food safety, can help the industry overcome these challenges.
In 2015, Tetra Pak was the first in the industry to introduce a package made fully from plant-based renewable materials – paperboard and sugarcane-based plastic. The Tetra Rex® Plant-based package, suitable for cold chain distribution, is fully renewable, and the company has delivered approximately 6.5 billion of these packages to customers around the world to date.
Now, the launch of the Tetra Brik® Aseptic 200 Slim Leaf carton with paper-based barrier, together with Lactogal, provides a package that can be distributed under ambient conditions, while hitting the 90% renewable content mark. This brings Tetra Pak one step closer to its ambition of a beverage carton made solely from responsibly sourced renewable or recycled materials, fully recyclable and carbon neutral. The company is aiming for industrial scale production of the solution by 2025.
1Certified by the Carbon Trust™ – benchmark: Tetra Brik® Aseptic 200 Slim Leaf carton package with aluminium foil layer.
2“Carbon neutral” means that, after reducing the CO2 emissions by converting the package’s fossil-based polymers into plant-based polymers to the highest possible extent, the residual CO2 emissions associated with the packaging manufacture are offset by funding Gold Standard-certified climate projects around the world.
3Tetra Pak B2B research on Planetary Challenges and their impact on F&B manufacturers’ operations (2023).
With a joint investment of around EUR 29 million by Tetra Pak and Stora Enso, a new recycling line for post-consumer beverage cartons is starting operations in Poland. The line has the potential to triple the annual recycling capacity of beverage cartons in the country – from 25,000 to 75,000 tonnes – and provides scope to absorb the entire volume of beverage cartons sold in Poland, as well as additional volumes from neighbouring countries, including the Czech Republic, Hungary, Slovakia, Latvia, Estonia and Lithuania.
Featuring an annual capacity of 50,000 tonnes, the state-of-the-art line at Stora Enso’s production unit in Ostrołęka (Poland) handles solely beverage carton material separation, detaching fibres from polymers and aluminium. The fibres are then recycled into cardboard materials, effectively contributing to material circularity by turning used paper-based packaging into new paper-based packaging materials. This new paper recycling facility is complemented by Czech company Plastigram Industries, that, together with Tetra Pak, is industrialising a solution to recycle polyAl1 into new products.
The new line is set to ramp up recycling of beverage cartons throughout Central and Eastern Europe, signaling the beverage carton industry’s willingness to support the circularity goals of the proposed EU Packaging and Packaging Waste Regulation (PPWR), and showcasing the pivotal role of recycling in helping the green transition of the food packaging sector. The industry has already invested approximately EUR 200 million to increase the capacity for beverage carton recycling in the EU and plans to invest a further EUR 120 million by 2027.2
1The non-fibre component of carton packages is known as polyAl, which designates the layers of polyolefins and aluminium being used as barrier against oxygen and humidity to protect the food content in aseptic carton packages.
2https://www.beveragecarton.eu/wp-content/uploads/2022/03/ACE-Impact-assessment-study-of-an-EU-wide-collection-for-recycling-target-of-beverage-cartons-Roland-Berger.pdf
SIG announced a BRL 10 million investment in innovative recycling technology that will enable polymers and aluminium from used aseptic carton packs to be recovered and sold separately for the first time on an industrial scale in Brazil. By expanding the range of applications for recycled materials from used aseptic cartons, SIG expects to increase their value by more than 50 %.
Innovative recycling technology
The renewable paper board that makes up around 75 % of aseptic carton packs on average can be separated for recycling in paper mills through Brazil’s existing recycling infrastructure. The polyethylene and aluminium mix (polyaluminium or PolyAl) left over from this process can be recycled into a robust material for purposes such as roofing, pallets and furniture.
SIG’s recycling plant will use innovative technology that makes it possible to separate the polyethylene from the aluminium in PolyAl to create a wider market and demand for these recycled materials. Developed over five years with project partner ECS Consulting, the new technology has already undergone a pilot project that proved the effectiveness of the chemical recycling process.
The new recycling plant is currently in construction in the state of Paraná. It is expected to begin operating in 2024 with an initial production capacity of 200 tonnes per month. Together with industry partners, SIG has also invested in a plant in Germany to separate polymers and aluminium from PolyAl that went into production in 2021.
Ethical collection programmes
Investing in new technology to create a wider market for recycled materials is an important step in increasing recycling rates for used aseptic cartons. SIG has already led the way with innovative programmes to support two other important steps: collection of used packaging from consumers and separation of that packaging to go into the right recycling streams.
SIG’s so+ma vantagens programme, run in partnership with NGO so+ma since 2018, enables people in underprivileged communities to collect loyalty points for bringing in waste for recycling. The points can then be exchanged for rewards, such as essential food products and skills training. SIG is now expanding this model to promote recycling and bring additional societal benefits to further municipalities in Brazil and beyond.
SIG also promotes public policies for selective waste collection in Brazil, and supports effective infrastructure and decent working conditions for waste collectors’ cooperatives as a seed investor in the Recicleiros Cidades programme. Set up with NGO Recicleiros in 2018, the programme is now operational in 13 municipalities and aims to reach 60 by 2027.
In Egypt, SIG is launching ‘Recycle for Good’, an innovative recycling initiative to enable direct household and food service industry collection of used aseptic carton packs through tech-based solutions. This initiative involving SIG and Tagaddod is the first of its kind in the Egyptian market.
Consumers can use a mobile app to arrange for their used cartons to be collected from their homes or workplace in exchange for rewards. The project aims to incentivise recycling of used beverage cartons, ensuring high-value resources remain in circulation while benefitting local communities.
SIG is working with Tagaddod on this project. They are leading the collection of the cartons. Tagaddod is the first company in Egypt to enable direct household and food service industry waste collection through tech-based solutions. Its app allows consumers and businesses in the food service industry to arrange collection of their used beverage cartons in exchange for rewards. The initiative uses Tagaddod’s existing logistics network, and household brand Green Pan to collect the cartons.
Recycling SIG carton packs keeps high-quality renewable materials in circulation for longer. All the materials used to make aseptic carton packs – paperboard, aluminium and polyethylene – can be recycled as valuable resources that can be used to create new products.
Only around 60% of the waste Egypt generates annually is collected currently, and less than 20% of this is properly disposed of or recycled. With no segregation of waste at household level, there is a huge need for collection initiatives such as this one.
SIG is committed to partnering with others to increase the collection and recycling of used beverage cartons, supporting the shift towards a circular economy. Recycling of packaging is an industrywide issue, and SIG partners on this with many different stakeholders, including industry peers, customers, consumers, and national and local governments. As recycling rates, regulations and infrastructure vary widely in different countries and municipalities, SIG take a tailored approach through local roadmaps in priority countries.
ACE, the Alliance for Beverage Cartons and the Environment, is pleased to announce that the recycling rate for beverage cartons in the EU281 rose to 51 % in 2019. This represents a continued year-on-year increase in the EU beverage carton recycling rate.
“We are pleased that the steady annual increase of the recycling rate for beverage cartons in 2019 surpassed 50 %,” said Annick Carpentier, Director General of ACE. “This is proof of our industry’s efforts and enhances the message that beverage cartons are recyclable and are being recycled at scale in Europe.”
Beverage cartons, made largely from renewable materials, contribute positively to a low carbon circular economy. The industry is driving beverage carton recycling across Europe, committed to efforts that support the increase of the recycling rate in all EU Member States. The industry calls on policymakers at the European and national levels to assure that beverage cartons are collected for recycling separately, and to support a collection target to ensure beverage cartons are collected for recycling.
“With an upcoming EU legislative agenda towards more sustainable packaging, the beverage carton is well positioned with a 51 % recycling rate. This is an opportunity to inform policy- makers at all levels that beverage cartons are a safe, circular and sustainable packaging solution with a low carbon footprint, and how the beverage carton you use at your table can be easily collected and recycled,” continued Ms. Carpentier.
1Data includes information from the United Kingdom, which at that time was still an EU Member State.
ACE announces that the recycling rate for beverage cartons in the EU28 rose to 49 % in 2018. This is a small (1 %), but steady increase in the EU beverage carton recycling rate from the previous year.
“We are pleased to see that the beverage carton recycling rate continues to increase throughout the EU. The year-on-year increase underscores the efforts made towards recycling beverage cartons,” said Annick Carpentier, Director General of ACE.
Some Member States reach rates above 70 %, while there is still room for increased recycling participation in other Member States.
“This is not enough if the EU wants to reach a low carbon circular economy. We call for the ambitious implementation of EU waste legislation at national level to ensure all beverage cartons are collected and recycled. We believe that the recycling rate will continue to increase thanks to our industry’s commitment to support beverage cartons being recycled, including the non-fibre components,” said Ms. Carpentier
In addition, ACE has launched a four-month campaign, “We’re not just square, we’re circular,” to raise awareness and build understanding that beverage cartons are recyclable and being recycled at scale in Europe. The campaign also aims to highlight the low carbon footprint of beverage cartons due to the renewability of materials used.
“Beverage cartons provide a double circularity, at sourcing thanks to the renewability of their main components and at end-of-life through recycling. This double circularity helps ensure that beverage cartons play a role in helping achieve a low carbon circular economy,” continued Ms. Carpentier.
The campaign website can be accessed here, from ACE’s main homepage (www.ace.be) and from the secretariat’s social media channels.
Together with the Paper Straw Co, BillerudKorsnäs has developed the first functional 180° U-Bend straw, made out of paper. The straw is made to be used for individual drink cartons such as juice, milk and water. The long term market potential as well as positive sustainability impact is extensive.
BillerudKorsnäs has just filed a patent of the U-Bend paper straw in cooperation with The Paper Straw Company, who will produce the straw in Manchester, England and in the US. The end-users will be consumers buying individual drink cartons filled with juice, milk or water. Made out of FibreForm, a uniquely shapable paper patented by BillerudKorsnäs, the U-Bend paper straw is durable and recyclable. The straw based on materials from sustainably sourced forests is also biodegradable, resulting in a positive impact on pollution and littering compared to plastic straws.
”The U-Bend straw is the first paper straw that is 180° bendable. It can be used together with existing drink packaging. Today many billion bendable straws are produced in a year which means that the potential for our business and our contribution to a more sustainable packaging world is, to say the least, considerable.” says Emma Hellqvist, Formable Solutions at BillerudKorsnäs.
At this moment, we are ready to go into industrial trials with the goal to be able to commercialise by the end of this year. The key to success lies in the efforts of innovation, collaboration and strong partnerships – in this case with The Paper Straw Co owned by Hoffmaster Group. Aardvark® Straws is part of Hoffmaster Group and will enable the production of the U-Bend paper straw for the US-market.
“We are excited to expand our line of paper straw offerings with the patent pending U-Bend paper straw.” Says Geert Pijper, Co-Founder The Paper Straw Co.
SIG is the first in the industry to enable customers to demonstrate their commitment to responsible aluminium sourcing using the Aluminium Stewardship Initiative (ASI) certification.
Added value through responsible sourcing
SIG offers the world’s first aseptic carton packs that use foil certified to the ASI standard. This add value for customers, brands and retailers by promoting responsible sourcing throughout the value chain – from suppliers all the way through to consumers.
SIG customers also have the option to include the ASI label on packs to show consumers that SIG sources responsibly the aluminium it uses in the cartons – in the same way they can already include the FSCTM label on any SIG pack to show that the liquid paper board comes from responsible sources.
First certification for responsible aluminium
SIG was the first in the industry – and one of the first companies in the world – to achieve certification to the ASI Performance Standard Material Stewardship Principle at the corporate level, together with the ASI Chain of Custody certification for its production site in Austria. The company has now extended ASI Chain of Custody certification to all its carton sleeve production sites in Europe.
The ASI certification enables companies to audit the aluminium supply chain against strict standards on a broad range of ethical, environmental and social topics. Previously, there was no such certification available to certify the ultra-thin layer of aluminium foil used in SIG packs. SIG’s ASI Chain of Custody certification has made it possible for the ASI Standard to be put into practice for the first time in aseptic carton packs.
Europe-wide ASI certification is an important step towards SIG’s target to source 100 % of its key materials from certified sources as part of its ambition to go Way Beyond Good for the environment and society.
SIG is the first in the industry to offer a market-ready alternative to plastic straws, announcing that a paper straw solution will be delivered to first customers in the first quarter of 2019.
With growing concern about the environmental impact of plastic straws, the food and beverage industry urgently needs an alternative solution. SIG’s new paper straw offers such a solution.
Nestlé is the first customer to introduce SIG’s paper straw solution and has already tested the market launch in the Dominican Republic.
Seeking a solution
SIG does not make straws, but some of its portion-size packs are designed to be used with a straw for convenience on the go and the company has been working with suppliers to develop alternatives.
Paper is renewable and recyclable. This forest-based material already makes up 70 – 80 % of SIG’s cartons on average, and the look and feel of paper also visibly reinforces its environmental credentials to consumers.
SIG worked closely with a manufacturing partner to develop an innovative and exclusive solution that makes the paper straw robust enough to pierce the closed straw hole of SIG’s aseptic cartons. The wrapper for the straw has also been redesigned to help prevent litter by remaining attached to the pack to be recycled along with the rest of the carton.
The new paper straws will be made of paperboard from FSCTM (Forest Stewardship CouncilTM)-certified forests or other controlled sources. Customers can already include the FSC label on any SIG carton and they will be able to add the label to the paper straws once the manufacturing partner has completed FSC Chain-of-Custody certification, which is expected during the second half of 2019.
The new paper straw solution supports SIG’s efforts to use more renewable materials. The initial volume of paper straws will be limited during the launch phase, as SIG ramps up capacity with its manufacturing partner. SIG is also continuing to invest in new ways to apply this alternative straw solution to a wider variety of packaging formats.
The collaboration between Elopak and Stora Enso has resulted in the launch of the first gable top carton made from natural brown unbleached paperboard, creating the Naturally Pure-Pak® carton with a highly distinctive, natural look and feel.
The new paperboard, Natura Life by Stora Enso, retains the natural brown colour of the wood fibres and has a visible fibre structure. This creates a naturally different, sustainable and authentic package that meets demands from growing trends in ethical, ecological and organic products. The natural look and feel of the new Pure-Pak® carton supports the values of organic products and brings outstanding presence on shelf.
This week Arla Foods in Sweden announced the launch of several products in its organic EKO brand range using Pure-Pak® cartons made of natural brown paperboard.
“We believe that the new Pure-Pak® carton will grab attention as it communicates organic values and is totally different to anything else in the increasingly complex chilled dairy segment,” says Anna-Karin Modin Edman, Sustainability Manager at Arla.
The Pure-Pak® carton with the new natural brown paperboard is available in 1 litre and 500 ml sizes. It runs on existing filling lines for both fresh and ESL products without modifications or changes in machine settings. The new Pure-Pak® cartons are 100 % recyclable and can be recycled through existing channels.
Ivar Jevne, Elopak’s Executive Vice President Board and Blanks Supply says: “All liquid packaging board sourced from well-managed forests is environmentally friendly, however this paperboard reaches new levels in climate responsible packaging. The innovation is the result of bringing together the best of expertise, competence and experience from our collaboration with Stora Enso. This is not just another paperboard for our Pure-Pak® cartons, but a totally new concept.”
The new paperboard is produced by Stora Enso, with the majority of fibres sourced from Swedish and Norwegian forests.
“We are happy about the cooperation with Elopak and excited to introduce the new unbleached liquid packaging board Natura Life by Stora Enso. What makes this paperboard unique is that it is brown on the inside as well as on the outside. This will enhance the organic appearance of carton packaging and make it stand out on the shelves,” says Annica Bresky EVP Stora Enso Consumer Board division.