Paper & packaging - VPK Packaging announces new containerboard capacity for 2020

Davy Research
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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.