The Model Group recorded an increase in turnover of 8.6 per cent in 2025, driven by record production of packaging paper. Demand remains stable despite price pressure.
The paper and packaging industry is facing the challenge of coping with rising raw material and energy prices, while at the same time demand for sustainable packaging solutions is growing. In the past financial year, the Model Group achieved consolidated Group sales of CHF 936 million. This corresponds to an increase of 8.6 per cent compared to the previous year.
Production records and strategic investments
A key driver of this success was the record production of 771,000 tonnes of packaging paper. This increase of 57 per cent compared to the previous year is largely due to the ramp-up of the new PM4 paper machine in Eilenburg, Saxony. The Model Group's investments in recent years have focussed on expanding its production capacities, with CHF 748 million invested in the sites and paper mills in the last five years alone.
Despite the challenges posed by volatile raw material and energy prices, which led to falling sales and margins in 2025, the Model Group was able to increase the production of corrugated board packaging by 3.6 per cent. In total, almost 1.42 billion square metres of corrugated packaging were produced at the Group's 15 production sites in Switzerland, Germany, Poland, the Czech Republic and Croatia.
Market conditions and future prospects
The year 2025 was characterised by a dynamic development in raw material and energy prices, which put pressure on profitability in the packaging and paper industry. Nevertheless, the Model Group is optimistic about the future. With the completion of the paper mill in Eilenburg, the company plans to further expand the production of lightweight packaging papers. This should have a positive effect on the corrugated board packaging range and increase demand for Model Group products.
The company, which is represented by 12 companies in seven countries, continues to see growth potential in its main markets of Germany, Switzerland, the Czech Republic, Poland, Benelux, Austria, France, Slovakia, Croatia, Slovenia and Hungary. The Model Group is headquartered in Weinfelden, Switzerland.
Challenges in the paper and packaging industry
The developments at the Model Group reflect the current trends and challenges in the paper and packaging industry. The demand for environmentally friendly packaging solutions is increasing, while at the same time the cost of raw materials and energy is a growing burden. Companies in this industry need to find innovative ways to make their production processes more efficient and at the same time meet the increasing demands for sustainability, they say.
Source: Model Group
