Based in Gera, Germany, GEFO is a manufacturer of CPP films, with the acquisition enabling Coveris to expand its capabilities in speciality CPP applications and respond to increasing customer demand for recyclable mono-material packaging solutions.
The deal comes as Coveris continues to invest heavily in film extrusion technology across its European network.
Prior to the acquisition, the company’s Kufstein site in Austria was its only CPP extrusion facility and had been operating at full capacity.
By integrating GEFO’s operations, Coveris said it will significantly increase its CPP production capacity while broadening its product offering across a number of higher-growth application areas.
These include retort packaging, lidding films, bakery bags, medical packaging and other non-food applications.
Commenting on the acquisition, Christian Kolarik, chief executive of Coveris, said: “GEFO is an excellent addition to our existing network and further strengthens our sustainability strategy.
“Demand for recyclable mono-material packaging continues to grow across Europe, making the expansion of our CPP capabilities for high-performance applications a logical next step.”
Flexible plastics under the regulatory spotlight
Coveris said the acquisition would also strengthen vertical integration across its manufacturing network, creating additional synergies between sites and supporting greater efficiency throughout its operations.
The expansion forms part of the company’s wider sustainability ambitions under its “No Waste” vision.
Coveris said the increased CPP capability would help customers prepare for upcoming European Packaging and Packaging Waste Regulation (PPWR) requirements, as well as Extended Producer Responsibility (EPR) obligations, by providing access to packaging formats designed with recyclability in mind.
The acquisition comes against a backdrop of steady growth in the European CPP market, which Coveris said is expected to expand by around 3% annually.
More specialised applications, including retort, medical and lidding films, are forecast to grow by more than 4% each year, driven by tightening sustainability requirements and the ongoing replacement of non-recyclable materials.
According to the company, CPP films are becoming increasingly important within the flexible plastics packaging market because of their recyclability characteristics and compatibility with mono-material packaging structures.
Kolarik added: “Through this acquisition, we are strengthening our production base and enhancing our ability to provide customers with innovative and sustainable packaging solutions that meet both evolving market needs and future regulatory requirements.”
The international company recently announced the sale of its labels and board business, saying that it continues to look at strengthening its recycling infrastructure alongside its flexible packaging operations.
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