Smufitt Kappa brochure

Smurfit Kappa

Boxing clever

Smurfit Kappa

Boxing clever Global paper-based packaging company Smurfit Kappa is using innovation and its acquisitive nature to build a business that is way ahead of the pack Written by Sheree Hanna and produced by William Lloyd >>>

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n the world of packaging Smurfit Kappa has most certainly got it wrapped with its strong management team, customer focus and top quality products.

At the core of its success is the company’s ability to innovate, drawing on decades of expertise along with the skills to integrate the business as it has grown and developed.

To keep ahead of the competition, the company invests between €300 and €350

million annually on improving its businesses and is currently in the process of establishing a new, €2530 million, Bag-in-Box production facility in Spain and a new paper mill in Southern England.

A global giant, today Smurfit Kappa has 350 operations located in 32 countries, employs 41,000 people with sales revenues topping €7.3 billion and produces 5.2 million tonnes of corrugated packaging and 5.3 million tonnes of 3

Smurfit Kappa Boxing clever

containerboard every year.

Branching out The company has grown from a tiny acorn to a giant oak, branching out across the world, harvesting its own forests to provide raw material for its own paper mills and in turn supplying its highly-developed packaging factories.

However, according to Group President and Chief Operations Officer Tony Smurfit, the company’s most seminal point was its 2005 merger with Dutch packaging company Kappa and its subsequent stock market flotation in 2007.

The highly-successful Bag-in-Box

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“We were able to build on the expertise of two very good organisations, each with its own particular strengths, he explained.”

The company’s acquisitive nature has helped the company to fuel its growth from a small general box maker, founded in 1934 by Jefferson Smurfit, the late grandfather of Tony. He said: “Acquiring companies is part of our DNA, but what really defines us and separates us from the pack is that we are experts and passionate about what we do.”

“We have really developed how we improve performance in our business and since the merger with

Acquiring companies is part of our DNA, but what really defines us and separates us from the pack is that we are experts and passionate about what we do.”

— Tony Smurfit, Group President and COO

Kappa our operations, expertise and knowledge have catapulted us forward and I think we are far and away the strongest in our market.”

This customer-focused business strives to readily meet the demands of its more than 60,000 customers around the world, which include the likes of Unilever, Nestle’ and Procter & Gamble.

For example, the hugelysuccessful Bag-in-Box division was launched in 1994 and provides customers with an ideal solution for packaging a wide range of liquids.

The company currently has Bag-in-Box facilities located in Argentina, Canada, France, Russia, Spain plus a state-of-theart factory in Italy.

Roberto Villaquiran, Chief Executive Officer for Corrugated Europe, said: “We are at capacity and last year the Board gave

approval for a brand new Bag-inBox facility to be built in Spain”.

“It will give us the ability for growth in this very exciting product. It is scheduled to be operational in 2014 and will most likely be the most sophisticated facility of its kind in the world.”

Paper and print Another huge investment the company announced last year is for a new paper mill in Kent, England. A total of €115 million will be ploughed into this scheme over a three-year period and is planned to come on line by the first quarter of 2015.

Keeping on top of market trends and investing diligently to meet customers’ demand is of utmost importance. An example of this is the arrival of a seven-color high board rotary die cutter for the Polish market. The first of its kind in 5

Smurfit Kappa Boxing clever Supplier Profile

Fosber S.p.a Fosber is a leading global supplier for the design, construction and installation of complete lines as well as individual machine units for the production of corrugated board packaging.

Originally founded in Lucca in 1978, through its Italian headquarters and strategically located subsidiaries in the USA and China, the Fosber Group today supplies complete corrugators as well as major machine upgrades across the globe with a total dedication to quality and customer service.

Fully controlled and owned by Fosber Italy, the Chinese division is entirely geared and structured to provide after sales technical assistance and spare parts support for the local market.

reduced running costs, less complexity and enhanced reliability.

Our Mission Statement

To pursue excellence in all areas of our business.

To produce the highest quality machinery with maximum reliability, through innovative simplistic design technology.

To provide our customers with the most responsive and focused technical support.

To be Simply Better Management

President of Fosber Spa - Mr. Ettore Bartoloni Saint Omer General Manager of Fosber Spa and CEO of Fosber China - Mr. Massimiliano Bianchi

President of Fosber America - Mr. Jeff Our renowned focus on continuous Pallini evolution and innovation, coupled with our constant investment in R&D are the keys of the company’s success. In what Website: www.fosbergroup.com are continuously changing and evermore demanding markets, the Fosber Group delivers the most up-to-date technology to guarantee its customers high performance, total production flexibility, dramatically

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Technology is well utilised in the company’s operations

We have set up the world’s largest innobook database of packaging solutions, which draws on the collective intelligence of some 700 designers worldwide.”

— Arco Berkenbosch, Vice President of Marketing and R&D for Corrugated Europe

this dynamic market.

Villaquiran explained: “We use high quality print to compliment our product offering. It is important we have the ability to service a whole array of our customer’s needs.”

The Smurfit family has played a vital role in steering the company’s success since it was founded in Dublin, where it still has one of its three global headquarters.

Jefferson Smurfit acquired boxmaker Rathmines in 1938 trading afterwards as Jefferson Smurfit.

He had a keen eye for spotting companies ripe for takeover. The business was listed on the Irish 9

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Smurfit Kappa Boxing clever Supplier Profile

Flexoclean Industry: Flexoclean is the market leader in professional cleaning for the flexography industry. All over the world, we do what we are good at: cleaning, in the broadest sense of the word. Flexoclean devises complete process improvement plans to suit the customer. Our strength lies in offering total solutions. Flexoclean will keep your anilox rolls clean so you will generate a better return. That is a promise.

You do not become market leader just like that. Years of experience at the heart of the flexography industry have provided Flexoclean with the necessary expertise. This is one of the reasons why we not only develop butInnovation also make our own Engineering products. A full range of cleaners tailored to the graphic Waindustry Washout shout is the fruit of our labour.Solvent SBut olvethings nt do not stop there.

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Stock Exchange in 1964 and acquired a partial interest in Time Industries, a Chicago-based paper and packaging company in 1974.

Products &His Solutions professionals like you sonforMichael, who became Chief Executive in 1977, continued to build a strong business through to the 1990s and the 21st century when it emerged as a global player.

Tooled up Smurfit Kappa has developed a unique set of tools to not only help it create new products, but also make sure they perform optimally and deliver to customer specifications.

Arco Berkenbosch, Vice President of Marketing and R&D for Corrugated Europe, said: “We have developed a set of tools to translate our expertise, innovation and drive

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Rolling out deliveries 11

Real results from a real BHs customer. oK, oK except the bottom one. We added that.

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While other companies talk about reducing costs, we prove it every day as our customers achieve higher production speeds, better quality board, and more linear feet per hour. That means lower cost of operation, which in turn means big-time Roi. isn’t that the bottom line? These are actual numbers from niagara sheets, llC, a sheet feeder plant located in north Tonawanda, nY.

QualiTY line ClassiC line CusTom line Volume line WiDTH line

Smurfit Kappa Boxing clever Supplier Profile

BHS Corrugated Employees: About 1,500 people are employed by BHS worldwide and are working hand in hand.

Established: Since 1960 corrugating machinery has been produced in Weiherhammer, Germany.

Industry: With customer-oriented production BHS is able to supply the most suitablemachine for each individual order in all countries around the world.

Ongoing Projects: We focus our production on machine availability, reliability, sustainability and productivity. Our processes are flexible and tailored to the needs of the client.

Management: Chairman of the Board - Christian Engel Responsible for Technical Matters Norbert Städele Responsible for Sales - Lars Engel Website: www.bhs-world.com Visit us online:

for our customers.

“We have set up the world’s largest innobook database of packaging solutions, which draws on the collective intelligence of some 700 designers worldwide.

If you put all of these ideas on paintings there would be enough to fill the Louvre in Paris.”

Research plays a large part in the excellent customer service Smurfit Kappa is able to offer. Before even approaching a potential new customer, the company will have done extensive homework to find out just what their needs are.

We use offset print, which is very high quality and sophisticated, to compliment the whole of the shelfready, box business. It is important we have the ability to service a whole array of our customer’s needs” — Roberto Villaquiran, Chief Executive Officer for Corrugated Europe 13

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The stable, convenient and reliable shipping of your pallets, cases and boxes is crucial to keeping you ahead of the competition.

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Whatever you require, with Mosca you can be sure of: • unmatched reliability and performance • Mosca’s pioneering direct drive brushless motor system • economic strapping with the latest in strapping technology • a global sales and service network, offering localised support and spares Maschinenfabrik Gerd Mosca AG Gerd-Mosca-Straße 1, D-69429 Waldbrunn Tel: +49 6274 932-0, Fax: +49 6274 932-400 118 email: info@mosca.com, www.mosca.com

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Advanced chemical solutions for the pulp and paper industry

Since 1962, Nopco Paper Technology has produced and supplied advanced chemical solutions to the pulp and paper industry, in the segments pulping, paper coating, paper making and recycling.

Nopco is a highly experienced and innovative company. We place great focus on working closely with our customers to tailor solutions to their individual needs, adding value to their production process and final products based on the latest technology and environmental standards.

Nopco is an international company, with its headquarters in Norway. We are represented in major markets throughout Europe, Asia and South America, with our own laboratories, production facilities, subsidiaries and agencies. Our subsidiary in Spain, located in Terrassa, is the regional hub for southern Europe and Latin America and has production facilities as well as laboratories.

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Smurfit Kappa Boxing clever Supplier Profile

Mosca Employees: 800 Established: 1966 Industry: Strapping Technology / Packaging Services: Newspaper and Graphics Industry, Distribution and Logistics, Corrugated Cardboard and Paper Industry, Construction and Ceramics Industry, Food & Beverage Industry Management: CEO - Timo Mosca Website: www.mosca.com Visit us online:

Supplier Profile

Nopco Employees: 130 Established: 1962 Industry: Chemicals Services: Advanced chemical solutions for the pulp and paper industry.

Management: CEO Nopco Paper Technology Group Peter Mollatt General Manager Nopco Paper Technology, S.L. - Jordi Poll Website: www.nopco.net Visit us online:

Smurft Kappa has global operations Villaquiran commented: “We have a very clear and structured approach, which sometimes can start three years before we even knock on their door. Our team will look at all the different facets of a potential customer so that we can present them with a value proposition.”

Power to the people Empowering the workforce has been another major factor in the company’s own continuing success story. Smurfit Kappa champions a decentralised approach whereby management within each region, division and facility has the ability to make their own decisions.

Tony explained: “If you have great people you can do great things and what we do is empower our people to make their own decisions for 15

INNOVATION. EXPERIENCE. QUALITY. With many years of experience and a high commitment, we are the competent partner in the range of expert advice, project planning, systems integration, coordination, installation and service.

Installations and start up of new flatbed diecutters | Training of customer’s machine operators and support in pursuing efficient production techniques | Machine inspections | Exchange of wear parts or defective parts | Maintenance checks at production free times | Optimization of quality and output by special machine adjustments which suit the customers’ orders | Comprehensive spare parts stock

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Brenntag Colours Ltd, a division of Brenntag UK & Ireland, is pleased to be preferred colorant supplier to Smurfit Kappa.

of colorants for the Global Paper Industry providing technical and cost effective colorant solutions.

For more information Brenntag Colours Ltd is a please call: UK based manufacturer +44 (0)1422 330 867 www.brenntag-colours.com

Smurfit Kappa Boxing clever Supplier Profile

Asahi Machinery Based in Osaka, Asahi Machinery Limited have produced high quality paper converting equipment since 1917. The current product range includes Automatic Flatbed DieCutting machines for Carton and Corrugated Paper,Automatic hot foil stamping machines, Push Type Synchro Cutter for Paper Processing, Paper Dust and Scrap Removing machines and Flatbed diecutting machines with inspection systems. The company employs over 130 employees worldwide and has a network of sales agents across the globe.

Website:

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the best interests of the business they are in. We also make sure our people are well remunerated and incentivised.”

As well as looking after its people, Smurfit Kappa has an exemplary record for looking after the environment too. It is the only packaging business in Europe which is able to say all of its boxes come from sustainable sources, with all its main corrugated plants FSC-certified and PEFC-certified in 2012.

“We are very proud of what we continue to do in sustainability,” he said. “We have an A-plus rating on our sustainability agenda and

Testing facilities ensure customer’s products suit their requirements 17

Tony Smurfit Group COO

we often find that our customers come to us for advice on how to do their own sustainability programs, which we are very happy to help them with.”

Smurfit Kappa is consistently building on its strengths and looking for opportunities to develop the business and its acquisition of the Orange County Container Group completed at the end of 2012 will help to bolster its Latin American operations.

Bridging cultures The $340 million acquisition has given the company a much stronger presence in Northern Mexico providing it with five additional operations and excellent paper making facilities. The 18

Roberto Villaquiran - CEO Corrugated Europe

company produces some seven million tons of paper per annum in both Europe and Latin America.

Villaquiran said: “One of our strengths is the ability to integrate companies and cultures and that is very important. We are able to take the best of each company within the organisation to make it even better.”

While the economic crisis in 2008 has taken its toll on the company, its strong and focused cost reduction program has allowed it to continue doing well despite the difficult trading conditions.

Tony said: “We have been able to give our customers continued improvements whether from sustainability or box performance and help them reduce their costs because of the breadth and quality

STATISTICS

Industry: Packaging Founded: 1934 Arco Berkenbosch – Vice President for Marketing, R&D for Corrugated Europe

of the company; we have been able to weather the storm pretty well.”

The 2005 merger with Kappa, which brought together two strong businesses, was also cited as a reason for the company’s ability to continue performing well through the recession.

But rest assured the future for Smurfit Kappa looks nothing but rosy. The multi-national is well placed to take advantage of an upward trend in the economy when it finally arrives.

Tony concluded: “I think our focus on developing our asset base by internal improvement, along with our five-year plan of capital injection into our business allied to acquisitions will give us the ability to allow our Company to continue to grow and develop.”

Headquarters: Dublin, Paris, Miami Key People/Titles: Tony Smurfit - Group President and Chief Operating Officer Roberto Villaquiran - Chief Executive Officer for Corrugated Europe Arco Berkenbosch - Vice President of Marketing and R&D for Corrugated Europe Products: Corrugated cases - N°1 in the European market; Conventional and value added printing (HQPP, pre-print); Litho-laminated cases; Point of Sale Displays; Heavy duty, XXL and industrial packaging; Fanfold and single face; Tubes and composites; folding cartons; solid board; Shelf ready packaging & design; Food packaging; Bag-in-Box; Machine systems Revenue: €7.3 Billion Employees: 41,000 Website:

www.smurfitkappa.com

Visit us online:

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Smurfit Kappa Beech Hill, Clonskeagh, Dublin 4, Ireland Tel: +353 12027000 | Fax: +353 12694411 corporateinfo@smurfitkappa.com | www.smurfitkappa.com

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