European Containerboard Risk of Closure Study
Containerboard capacity in Western and Central Europe keeps growing – and so does the risk of oversupplying the market. Learn which machines and companies are most vulnerable with the latest report from Ville Henttonen, author of the 2014 European Machine Conversion Study.
This new analysis provides you with a detailed evaluation of the risks facing the containerboard sector in Western & Central Europe.
Fastmarkets RISI Engineer Ville Henttonen and his team researched all significant containerboard machines in the region: 216 machines, located at 164 mills, owned by 103 different companies. By analyzing the risk of closure in potentially difficult market conditions, they identified 61 machines with a higher than average risk of either planned proactive closure or forced closure (bankruptcy).
The Risk of Closure Study provides metrics for:
- Company Risk
- Machine Risk
- Company-Specific Risk Assessment
The report also gives you the data and methodology used to develop these metrics, so you can further sharpen your own strategies for this turbulent sector.
Risk of Overcapacity Drives the Risk of Closure
As demand for graphic paper has declined, many machines have been converted to produce packaging and specialty papers. Containerboard production has been the most popular conversion – but now the European containerboard market is at risk of oversupply.
This has led to consolidations, acquisitions, planned proactive closures, and forced closures due to bankruptcy. Industry leaders, customers, suppliers, and investors are concerned about the risk of further machine closures.
61 European Machines at Risk
In Western and Central Europe, 61 containerboard machines have higher than average risk of either planned proactive closure or forced closure (bankruptcy).
This study analyzes every machine and evaluates which ones are most likely to face either proactive closure or bankruptcy; or could be available for acquisition.