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Austrian propak industry with growth increase in 2021

The industrial manufacturers of paper and cardboard products in Austria, which are members of the Propak trade association, ended 2021 with an increase in growth. Enormous price jumps for raw materials and energy are now weighing on companies.

The industrial manufacturers of paper and cardboard products in Austria, which are members of the Propak trade association, ended 2021 with an increase in growth. Enormous price jumps for raw materials and energy are now weighing on companies.

In the second year of the pandemic, the Propak, despite enormous challenges, a good increase in growth above GDP, the association announced. Company production rose to 1.3 million tonnes in 2021 (+6.7 per cent compared to 2020) with sales of just under 2.6 billion euros (+8.3 per cent). However, the value added of the 85 companies was put under pressure by exorbitant cost inflation.

„Due to the current situation, it is very difficult to predict future developments, but PROPAK companies should remain on course for GDP plus.“

Georg-Dieter FischerPropak Chairman

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Paper processing as a systemically relevant sector

Cyclical Another difficult year lies ahead for the Propak industry. On the one hand, the pandemic is not yet over and on the other, supply chains are not yet functioning as they used to - partly as a result of the war in Ukraine. „Our companies are having to make enormous efforts to ensure that they can continue to deliver,“ reports Propak-Obmann Fischer.

„Above all, the shortage of raw materials and the explosion in energy prices are putting a huge strain on our industry.“

Andreas Blaschke, Managing Director of Mayr-Melnhof Packaging International

The Energy costs as a proportion of production costs in the Propak industry have tripled in the last two years. And: „The energy requirement in paper processing - with some exceptions, such as in corrugated cardboard production - is lower than in the paper manufacturing industry. Nevertheless, there is an indirect dependency, as we are logically dependent on the primary material.“ 

Furthermore, as an export-orientated industry (79 per cent export ratio), the Propak sector needs „predictable framework conditions that Successful operations at domestic locations actually make this possible,“ says Andreas Blaschke.

Source: Propak

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