Packaging manufacturer Smurfit Kappa has announced plans to tap investors for €650m to accelerate its growth plans amid a surge in demand for online retail.
The company this evening launched an equity raise, saying it had identified €1.2bn to €1.4bn of investment opportunities, including in sustainable packaging and e-commerce, to increase its competitive advantage.
The FTSE 100 firm will accelerate investment over the next three years “as e-commerce penetration deepens and the consumer demand for sustainable packaging increases.”
Online shopping has boomed during the coronavirus pandemic, therefore Smurfit Kappa is aiming to facilitate faster packing and easier returns.
Meanwhile, consumers are “demanding” sustainable options and “see brands as responsible for sustainability”.
Examples include the replacement of plastic shrink-wrap on cans and bottles, replacing polystyrene buffers and replacing plastic trays with 100 per cent paper-based alternatives, the company said.
Group chief executive Tony Smurfit said: “The continued development of e‑commerce and the increasing demand for sustainable, paper-based packaging are presenting opportunities for Smurfit Kappa.
“Accelerated investment, at this time, will allow us to increase our competitive advantage, align us with the sustainability goals of our customers and enhance our operational efficiency.
“The unrelenting dedication, commitment and loyalty of the broader Smurfit Kappa team has enabled us to strengthen our position, continuing to deliver for all stakeholders. We sincerely thank each and every one of our employees for their continuing contribution to an ever brighter future for Smurfit Kappa.”