Elopak expands and invests in eco-friendly packaging in response to growing demand
August 20, 2024
The international packaging company's second-quarter revenue increased by 3.8% year-on-year to €288.4 million. Adjusted EBITDA jumped by 15.2% year-on-year to €43.8 million.
Ole-Petter Trovaag, Elopak’s director of packaging design and development, told FoodNavigator that the company received new orders for its products from Norwegian customers during the second quarter. These new orders contributed significantly to Elopak’s business results.
The business is growing in the Americas and the Middle East. It has also expanded into North Africa and India.
The largest dairy producers in Europe
In 2024, the first US-based production facility will open in Little Rock, Arkansas, while India and the MENA region are expected to open in 2022.
Trovaag said food and beverage manufacturers are more interested than ever in sustainable packaging options that meet high food safety standards. Elopak cartons are made from wood fibers and have a barrier that prevents liquids from penetrating the organic materials. However, work to replace polymers with fibers continues.
Elopak Investments
Elopak has benefited from the growing demand for sustainable packaging in food and beverage manufacturing. The company has invested in packaging and machinery, and opened new production sites in North Africa, the Middle East and the Americas.
Trovaag said: “In the first quarter of 2024, we launched our new filling lines for refrigerated distribution. Our packaging allows us to extend the shelf life of milk packages by up to 60 days once they are on the shelf.”
She worked closely with Shikoku Kakoki, a Japanese machinery manufacturer, to create the filling line. Some of Europe's largest dairy processors have adopted it.
Sustainable packaging strategy
Hochwald Foods in Germany, which produces more than 2 billion kilos of milk per year, has moved all fresh milk and milk drinks for Barenmarke to new production lines.
Thomas Kormendi, CEO of Elopak, said that Lithuanian dairy Zemaitijos Pienas has also replaced plastic with PurePak cartons for its organic fresh milk packaging. This reduces plastic use by about 80 %.
Trovaag said the company will launch its revised sustainability strategy in September, including updates to current products and upcoming product developments.
He explained: “We are working on improving the functionality of the opening device for Pure-Pak cans that were originally without a closure device.” We are also working on ways to minimise the polymers we need for oxygen barriers. We are also looking at how the polymers could be recycled in a circular economic system.