Blog, Carton Packing, Packaging

Domestic Production Investment in Paper Packaging

The cellulose cardboard raw material problems with Finland and Sweden and the high prices in China led the sector players to domestic investments. The Turkish paper and cardboard packaging industry, which is one of the important manufacturers in Europe with its capacity, is going through difficult times due to the European Union’s desire to make Poland a new center. Despite the raw material crisis, the sector exported 832 million dollars in 2021. Turkey, which exports to more than 100 countries, mainly Europe and the USA, exports 20% of its production and aims to export 1 billion dollars in 2022.

The costs of Sweden and Finland, for which products have been supplied for 40 years, and Turkey, which has been experiencing raw material problems for 1.5 years, and Turkey, which meets the deficit with 50% higher price from China, have increased at this rate. Turkish manufacturers are having a hard time exporting to European countries due to the EU-supported growth of Poland. While the perspective of Turkish companies changed after the pandemic and the problems in commodities, it was seen that the solution was in domestic production after the raw material problem was met more costly from China. In this direction, a Turkish company was motivated to invest in the production of cellulose-based cardboard. The new factory is planned to be completed within 36 months. 400 thousand tons of production of the 600 thousand tons capacity facility will be exported to the domestic market. The investment to be made for domestic production will be 500 million Euros.

During the pandemic period, the need for paper and cardboard packaging continued to increase in many sectors, especially in food and health. This situation reminded the sector once again that it should continue production even during pandemic periods, and therefore investments should be continuous. In order to make the announcement, it should turn to value-added products and turn to the right promotion. Reusable products and recyclable products will gain importance with the production to be made in accordance with the neutral carbon target until 2050 within the framework of the EU’s Green Deal.

Today, paper and cardboard packaging is recycled 25 times and its share in the packaging industry is gradually increasing. The share of paper and cardboard packaging in 2024 is expected to increase to 35% with 370 billion dollars.

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