According to Ilim Group’s estimates, the demand for corrugated packaging products will witness a growth of around 4-5 percent in 2022.
February 14, 2022
At Ilim Group, the output of the corrugated box plants registered a record-high level of 282 million sq m (131 thousand tonnes) in the year 2021. Russia-headquartered pulp and paper company has seen a growth in the output of corrugated board by 9 percent in 2021 as compared to the corresponding output in the year 2020. In the past three years, the company’s corrugated box division has been showing high growth rates of about 10 percent per year.
In 2021, EBIDTA of Ilim Group corrugated box plants stood at USD 16.3 million, which is 2.2 times higher as compared to the previous year. This growth is majorly driven by prices for corrugated products as well as finished products output supported by reduction of losses.
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Vladimir Shoshin, Director, Packaging Sales, Ilim Group, says, “The past year saw the most successful performance of Ilim’s corrugated box plants of all time.”
The corrugated box plants in Dmitrov and Kommunar are a part of its full-cycle production process. In 2021, the corrugated box plants used 71 percent of their own feedstock. Having their own feedstock allows the Russian pulp and paper manufacturer to maintain full control over the production process along with also avoiding disruption in the supply chain.
Shoshin further added that the expansion of the company’s customer base at the end of 2020 followed by the rise in the number of orders allowed their box plants to simultaneously increase their production volumes at the beginning of 2021.
Pavel Alekseev, Operations Director, Packaging Business, Ilim Group, says, “Today, the key drivers of the corrugated materials market development include active development of e-commerce, global “going green” trends as well as conscious consumption.”
As per the estimates presented by Ilim Group, the demand for corrugated products will grow by about 4-5 percent in 2022.