2020-01-09
Interestingly enough, the paper converting industry is
becoming increasingly important to the paper sector. The significance of its
activity lies in the flexibility and speed with which required formats of reels
or sheets of paper and cardboard are cut and distributed to end customers.
Taking that into account, having reliable machines and trustworthy suppliers
are the key to success.
EVOLUTION AND TREND
In order to understand the state of the global paper and
cardboard converting industry, we ought to focus on and analyse the paper
sector. In recent years, it has been seen that due to the overcapacity in
certain types of paper and a decrease of demand in others, the strategy adopted
by increasingly more paper manufacturers has not been to focus on competing in
production, but on higher added value products such as specialty or coated
paper and boards. In addition, we have also seen that a growing number of pulp
and paper manufacturing groups have concentrated their production, resulting in
the closure of smaller sites.
Regarding the specific activity of converting, it
should be noted that in the paper industry, managing and manipulating paper is
considerably important. This activity, like others, works on what is called the
‘communicating vessels principle’, where the large paper mills top the list,
followed by the converting companies and then by the printers and packagers.
It is also worth mentioning that despite many paper and
cardboard manufacturers still produce and cut or convert the paper they
produce. The tendency of the sector has been to delink to a greater or lesser
extent the cutting activity to focus on its core business of paper production,
leaving the cutting activity to other specialised companies. (1)
This reality favours the fact that converters are becoming
increasingly important especially in regions like Europe and North America but
countries such as China, India and Australia are expected to attract part of
the paper converting market share over the next decade. (2)
A clear example of this trend is the case of the Stora Enso
group in Europe
According to their 2018 press release, the Finnish converting
company Pyroll acquired the Stora Enso sheet cutting services centre in
Baienfurt, Germany. This transaction has allowed Pyroll to expand its cutting
operations in Europe while keeping Stora Enso as one of its key clients. (3)
THE IMPORTANCE OF
CONVERTERS
The activity of converting is important; its importance
resides in providing value throughout the entire supply chain for
different-sized sheets and reels to a highly fragmented sector as it is the
packaging and printing one.
Additionally, although the size of converters is not always
directly related to the paper and cardboard production capacity in the region -
it is usually more associated with consumption - what is certain is that some
of the biggest converters are found in Europe and North America. In these
regions we can find converting units and distribution centres strategically
located throughout the different states in order to provide rapid service to
customers in the area.
CUTTING REQUIREMENTS
In order to convert paper or cardboard from reels to sheets
and from parent reels to smaller reels, converters need flexible and
reliable machines that are capable of producing according to customer
requirements.
Likewise, the quality of the finished product must be
impeccable in order to provide a high-quality product to the downstream value
chain. This is where companies that manufacture paper converting and cutting
machines such as Pasaban can provide its expertise.
The difference lies in the experience. In that regard, Pasaban
has a proven record of supplying sheeting and winding machines to some of the main paper mills and
converters in the world.
“We apply our knowledge and adapt our converting machinery
and services to each of our customers’ needs.”
“Availability and reliability are intrinsic qualities of
Pasaban machines. Our clients know this and it is why our brand adds value to
their business.” Carlos Muriel, Pasaban Business Manager.
Sources:
(1) Converting
Paper Market - Global Industry Analysis and Forecast 2019 - 2027- link (2) Converting
Paper Market - Evolving Industry Trends and Key Insights by 2024 - link (3) Pyroll
news - Pyroll expands its business operation to Germany- link