Fedrigoni Group explores the frontiers of recyclable paper

The process of replacing plastic with paper in applications that need robust, water-repellent and hygienic characteristics is known as 'plastic-to-paper' and is one of the pillars on which Fedrigoni's Innovation Centre in Verona rests, which together with the research and development centre in Voiron, France, constitutes the group's technological innovation hub. "Today we are able to produce quality paper with high added value that resists moisture, grease, tears and pressure and that finds application in all product sectors, in food & beverage as well as in cosmetics, catering and logistics," comments Micaela Di Trana, vice-president Innovation and Sustainability of the Fedrigoni group.

Paper for single-dose packs of liquids, thermoformed cellulose trays (patented proprietary technology), biodegradable, for perfumery and cosmetics packaging, luxury packaging: customisable packaging free of glue and plastic inserts, able to withstand transport without additional outer wrapping. These are some of the products of Fedrigoni, which at the beginning of the year also acquired Arjowiggins China, a company specialising in translucent papers, to produce packaging with transparent windows totally based on paper, and therefore mono-material, a requirement that simplifies recyclability.

The new packaging regulation (Ppwr) approved by the European Parliament on 24 April foresees, among other things, the exemption of paper and cardboard packaging from reuse obligations, the banning of single-use plastic packaging (including that for unprocessed fresh fruit and vegetables for food and beverages consumed in bars and restaurants, and for single-servings) from 2030, and finally the introduction of composite packaging, which if made of 95 per cent or more paper, for example, albeit with a small proportion of plastic, will be considered paper and therefore excluded from the regulation's bans. "The acceleration of investment in research and development across the entire paper chain will continue," Di Trana confirms: "Thanks also to Pnrr funds we have obtained a 2.7 million euro grant for three years (2023-26) to develop plastic-t0-paper solutions. The company is pursuing the study of nanocellulose, and is also exploring, in a venture capital logic, start-ups working precisely on plastic substitution and recyclability.

It has been estimated by the Paper and Graphics Federation that there is a potential to replace plastic with paper by 25%, "but there are some sectors where the possibility of conversion is higher. Often plastic is used not because of its characteristics but because of its cost, because it is cheap. In some areas like food & beverage, where the intrinsic value is not high, the substitution weighs. We are looking for solutions that do not weigh too heavily on the cost profile of the product. Over 40 million tonnes of plastic per year will be replaced by paper with current technologies'.

Fedrigoni ended 2023 with €1.8 billion in pro-forma revenues, down 11% from €2 billion in 2022 calculated on the same perimeter but with €338 million in pro-forma Ebitda (up 8% from €314 million a year earlier), and an Ebitda margin that increased from 15.4% to 18.7%. In Q1 2024, estimated revenue is EUR 470 million, up 10.9% compared to Q4 2023 and 2.4% compared to the same period last year. On the other hand, estimated EBITDA is EUR 81 million, up 5.7% compared to Q4 2023 and 16.9% compared to the same period last year. With 21% of revenues coming from the Italian market, 49% from the rest of Europe and 30% from the rest of the world, "Fedrigoni confirms its position as the world's leading player in wine labels and specialty papers for luxury packaging, as the third most significant player in the self-adhesive labels market and the second in drawing papers," reads a group note.