Sappi, a global provider of dissolved wood pulp, paper pulp and paper-based solutions, has announced expansions to its Speciality Papers Division, as well as its intention to become an innovative solutions provider in the packaging market.

Thomas Kratochwill, sales and marketing director, Speciality Papers Division, Sappi Europe, and Ingo Kaiser, marketing communications specialist, Speciality Papers Divison, Sappi Europe, conducted a webinar detailing the company’s outlook. Sappi has specialized in European business, but the company is setting its sights on expansion in North America, South America and Asia. The company also owns 495,000 hectares of sustainable land in South Africa.

Currently, Sappi employs 13,000 people across the globe and produces 5.7 million tons of paper each year, including 2.4 million tons of annual paper and 1.3 million tons of dissolved wood pulp.

“Sappi is a company with a global footprint,” said Kratochwill. “In North America, we are providing specialized cellulose, and we have very established knowledge and experience in paper and forest industries.”

Sappi is currently producing flexible packaging, label papers, liner applications, rigid packaging, technical papers and release liners. “We want to go away from being a pure substrate supplier,” added Kratochwill. “We want to be known as a company that offers complete packaging solutions.”

Kratochwill detailed several key areas in which Sappi hopes to improve, ultimately providing benefits to converters and end users. According to EasyFairs’ “Innovation in Packaging Survey 2012,” cost reduction is the leading driver for innovation in packaging. In addition, light weighting, down gauging and becoming more environmental friendly topped Sappi’s list.

One of the company’s goals is to find an alternative for plastic. While Kratochwill conceded that plastic has its place in the industry, Sappi is hoping to reduce the environmental footprint by switching applicable packaging designs to paper. “We cannot replace plastic and we’re not trying to do that,” he said. “Wherever it makes sense to go into a packaging area with paper, it’s another greener solution of packaging.”

According to Sappi, 300 million tons of plastic will be used for packaging, and more than 40% of the world’s packaging is plastic-based. In addition, 75% of the ocean’s waste is plastic. In many cases, the disposed plastic will take anywhere from 100 to 1,000 years to decompose, depending on the type of plastic.

Sappi believes that paper will be helpful for environmental impact, lowering cost and enhancing brand image. As sustainability moves into the public consciousness, paper could become an option for companies using other substrates. “Since the regulations are changing and there are environmental concerns, more people are moving towards paper,” explained Kratochwill.

In focusing on Speciality papers, Sappi renovated its PM2 facility, Alfeld Mill. The facility shifted to 100% Speciality papers, including a product range of 270,000 tons per year of sulphite pulp for use on coated and uncoated Speciality papers and SBB cartonboards.

The project began in October 2013, with the official inauguration taking place in March 2014. Sappi invested over 60 million Euro to complete the upgrade. “We are fully dedicated to this business, and we show that to our customers,” said Kratochwill. “We have already gotten some great traction and feedback from them.”

Drivers and trends for the future
According to Sappi, paper is a growing market, experiencing 3-6% annual growth. Kratochwill stated that emerging trends in the label and packaging industry, which include paper, will aid these figures. Sappi will provide solutions for new trends like smart packaging, food safety, and reopen and reseal packaging. As companies shift to smaller packages, there will also be a greater volume of products on the market, which will lead to more production.

“We want to launch at least one new packaging product with paper application per year,” said Kratochwill. “We want to be a solution provider together with our customers to help reduce the total cost of ownership.”

In order to make more sustainable products going forward, Sappi has outlined a series of steps to promote growth. The company wants to move away from fossil fuel-based packaging materials, instead opting to focus on sustainable, renewable and natural raw materials. The motto, “Refuse, reduce, recycle and reuse,” is a ground-up strategy that promotes refusing more hazardous materials and replacing them with greener alternatives.

Smart trends like traceability and anti-counterfeiting are also on Sappi’s agenda. “We want to add functionalities in the paper, which you are already seeing with security features like RFID,” said Kratochwill. “We want to make it easier for the converter to use the paper and reduce the steps in between to create the packaging.”

Other developments include atelier, a folding box board, and a business development team, which was designed for organization and strategic alliances. “We have established a business development team that is rather unique,” explained Kratochwill. “We never had dedicated resources, but what we have done now is establish this business development team, which is its own department. We really want to offer all of this expertise to brand owners and customers, and develop these innovative solutions. Its not always the price cost, but the services that you offer.”

As part of Sappi’s plans for the future, the company will be present at several upcoming events, including FachPack 2015 (September 29 to October 1), Labelexpo Europe 2015 (September 29 to October 2), and Pack Expo 2015 (September 28-30). “It will be our first time exhibiting at Labelexpo, so this is new for us, but we are really excited to be there,” exclaimed Kaiser.

While there, Sappi will exhibit two new products: Algro Nature and Algro Guard M. Algro Nature is a biodegradable and home-compostable product manufactured from renewable resources. It has been approved for food contact and various applications. Algro Guard M is a mineral oil barrier with heat-sealing properties. 

By venturing to Las Vegas, NV, USA for Pack Expo, Sappi will continue its efforts to extend business to the Americas.