8 INDUSTRY NEWS
DS Smith Packaging continues its drive to improve safety
F
or the third consecutive year, DS Smith has recorded the lowest accident frequency rate
in the industry, demonstrating a continuing downward trend over the past nine years, and providing evidence of its strong commitment to a safe work environment. The records were amongst industry statistics released by the European Federation of Corrugated Board Manufacturers (FEFCO). Marco Maguina, head of
safety at DS Smith Packaging, commented: “The safety of our
people is our top priority. This result shows that our Vision Zero strategy is embedded across the organisation, which has been achieved through strong engagement among our leaders and our incredible teams across the company. We thank every single employee for always prioritising safety, and we are determined to continue our journey towards our Vision Zero.”
DS Smith says it aims to foster a culture where both health and safety are an integral part of its business activities and launched its ‘Vision Zero’, a strategy
Good year so far for corrugated in the US
The corrugated business in North America had a better first six months of the year than expected, says analyst Mark Wilde at BMO Capital Markets. Volumes were up 1.6 per cent
to the end of July, despite the coronavirus pandemic and a recession in the business. Drivers for the improvement
were ‘unprecedented’ levels of fiscal stimulus, widespread pantry stocking and a boom in ecommerce shipments, said Wilde. “At the same time, domestic pricing has also been remarkably stable thanks to good demand and widespread production cuts by many producers,” he said. During the second quarter,
producers were faced with a sharp, but short-lived, spike in old corrugated container (OCC) costs. As collection rates slipped
September/October 2020
during the pandemic in the three months to the end of June, the price of OCC averaged $83/ton. Margins were also strong with
many of the leading converters posting more than 19 per cent. “Never has the industry performed this well in the face of such a challenging backdrop,” commented Wilde. The pandemic appears to have accelerated ecommerce trends,” he said. “An increasing pool of consumers appears to be relying on the ecommerce channel for a growing array of goods. In BMO’s recent industry survey, several respondents noted that booming ecommerce demand has led large producers like International Paper and WestRock to farm- out shorter run business to independent converters and smaller integrateds.”
towards zero harm, more than two years ago. The ‘Vision Zero’ strategy consists of four key areas: leadership; engagement; systems and processes; and culture. Each of these has a goal with annual activities and performance indicators. In its last fiscal year, DS Smith achieved an eight per cent like- for-like reduction in its Accident Frequency Rate and eight per cent reduction in its Lost Time Accidents. The focus on health and
safety has also been at the forefront of DS Smith response during the Covid-19 pandemic.
The company has managed to maintain all its production sites operational, following national government and health guidelines. At all times the priority has been the health and wellbeing of all people, while continuing to serve customers and to support the communities where it operates. FEFCO, a non-profit organisation based in Brussels, monitors the accident frequency rate across the corrugated packaging industry. The latest statistics are based on 2019 data and supplied by FEFCO’s 568 member companies.
Mondi buys cement bag lines in Egypt to strengthen Middle East market
Pulp Paper & Logistics
Two paper bag lines have been bought by Mondi from cement producers in Egypt. The production lines, at Helwan Cement Company and InterCement Sacs, will increase Mondi’s capacity by about 60-80 million bags a year and strengthens its position in the Middle East bag market, particularly in supporting suppliers to the construction industry. The deal includes the exclusive supply of paper bags to the two cement producers. Claudio Fedalto, operations chief at Mondi Paper Bags, said:
Mondi’s facilities in Egypt, where more cement bag capacity has been acquired
“These collaborations will offer Helwan and InterCement access to our latest innovations, industry expertise and our strong plant network and customer service in the Middle East. Thanks to Mondi’s vertical integration, our partners will further benefit from our high quality kraft paper.” Mondi Paper Bags, a segment of Austria-based Mondi Group, is a leading producer of industrial paper bags selling more than five billion a year.
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