German corrugated board industry faces major challenges despite growth in Q1

Dr Oliver Wolfrum, VDW Managing Director, Copyright: VDW
Dr Oliver Wolfrum, VDW Managing Director, Copyright: VDW
03 Jun 2020 − 

Thanks to a very strong March, member companies of the German Corrugated Board Industry Association (VDW) recorded an increase in sales in the first quarter of 2020.

"The strong surge in the food retail trade caused by the Covid-19 crisis in March has made itself felt by our members," says VDW Managing Director Dr Oliver Wolfrum.

However, many of the corrugated board manufacturers' customer industries are facing major challenges, as the German economy is in recession. Mr Wolfrum commented: "The corrugated board manufacturers will also have to accept declines in sales this year.”

In addition to the direct consequences of the shutdown on demand, Mr Wolfrum is also concerned about the profitability of corrugated board manufacturers. He said: “The average revenue per m² of corrugated board sold in the first three months of the year fell by 6.5 per cent compared to the same quarter of the previous year. At the same time, our members had to accept a 4.1 per cent increase in paper prices in March. This puts an additional burden on the tense economic situation of corrugated board manufacturers.”            

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