Paper & Packaging

VPK Packaging announces new containerboard capacity for 2020

  • Sectors : Paper & Packaging
  • Companies : DS Smith | Mondi | Smurfit Kappa Group

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
DS Smith NEUTRAL 12/02/16 Underperform 19/06/12 50220p
Mondi OUTPERFORM 19/06/12 N/A N/A 2137p
Smurfit Kappa Group OUTPERFORM 30/06/09 N/A N/A 2808c

DAVY VIEW

VPK Packaging’s announcement of plans to add new containerboard capacity is not surprising given its short paper position. Scarcity of paper in Europe is becoming an issue for corrugated producers. Given the tightness in paper supplies, the latest price increases are likely to be successfully implemented. This will drive higher corrugated prices and positive earnings momentum in the sector. Smurfit Kappa Group remains the best way, in our opinion, to play this very positive theme in 2018.

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Jan 12 2018, 08:30 GMT

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