Smurfit Kappa Founds Recycling Dual
Packaging and paper manufacturer Smurfit Kappa starts its own dual system in Germany. Recycling Dual is to take care of the nationwide take-back of household packaging and will offer the licensing of packaging requiring system participation.
It is the first industry-supported dual system in the German market. By founding Recycling Dual GmbH, from 2021 onwards Smurfit Kappa intends to be the only company on the market to map the complete life cycle of PPK sales packaging (paper, cardboard, cartons) – from paper and packaging development to licensing, collection and final recycling. Smurfit Kappa cites as one of the reasons for the initiative the fact that the dual systems for 2021 are expected to increase the cost of collection contracts for light packaging by up to 30 percent.
Prices are rising
The prices for paper-based packaging could even double, emphasizes Smurfit Kappa. Industry and trade would therefore have to expect significantly higher license prices for consumer goods packaging from next January. The companies active in the municipalities for the collection and sorting of recycling material have made it clear that the fees paid so far are not sufficient to handle the volume of paper-based packaging within the current price structure. Market observers speak of a future price range for PPK of 170 to 250 euros per ton.
Developing, licensing, collecting and recycling
In future, Smurfit Kappa wants to offer customers an “all-round carefree package” for PPK packaging. The special added value for customers lies in the possibility of optimizing packaging along the entire value chain and at the same time reducing the use of resources and the associated licensing costs already in the development process. In addition, the new company is able to offer reduced licensing costs within the framework of partnerships and the existing logistics networks of the in-house paper mills, thus providing attractive complete solutions.
“Very competitive terms and conditions”
Smurfit Kappa also plans to integrate this solution into its own online store, the new Smurfit Kappa eShop. In the future, customers will be able to license their sales packaging while shopping online, thus avoiding additional work. “With our range of services and Smurfit Kappa as a strong parent company behind us, we have a powerful set of instruments at our disposal to meet current market, legal and sustainability requirements from a single source, at very competitive conditions. With our approach we are a real game changer”, promises Heiner Oepen managing director of Recycling Dual GmbH.
