Start of Paper Production in Eilenburg
Model Group achieved consolidated group sales of CHF 862 million in the past financial year..jpg)
Model Group, which is active in the field of solid and corrugated board packaging, achieved consolidated group sales of CHF 862 million in the past financial year, which corresponds to a decline of -6% compared to the previous year. However, the sales volume of corrugated board packaging increased by +7% compared to 2023. The decline in sales is due to a decline in prices and exchange rate effects.
On average, Model Group employed 4,349 people (previous year: 4,335), 770 of whom in Switzerland. Investments remained at a high level of CHF 158 million (previous year: CHF 246 million). The main focus of investments was the completion of the paper mill in Eilenburg (Saxony). With the start of the paper machine on September 4, 2024, an important milestone was reached in the realisation of the largest investment in the company's history. In addition, investments were made in the latest flexo and digital printing technology at the site in Weinfelden (Switzerland).
Trend reversal in sales volume with falling prices
At its 15 production sites in Switzerland, Germany, Poland, the Czech Republic and Croatia, Model Group produced almost 1.37 billion m² of corrugated board packaging and corrugated board sheets and 492,000 tonnes of packaging paper for corrugated board production, which corresponds to an increase of +4% compared to the previous year. At the folding cardboard box sites, the production volume also increased by +4%.
After the production volume of corrugated board packaging fell by -7% year-on-year in 2023 due to market conditions, Model Group was able to increase the volume by +7% again in 2024 in a challenging market environment. 2024 was also characterized by a dynamic in raw material and energy price developments, which led to falling sales and margins for packaging and paper.
Outlook
With the ramp-up of the paper mill in Eilenburg in the 3rd quarter of 2024, we will further expand the production of lightweight packaging papers this year. The resulting impetus for the corrugated board packaging range will have a positive impact on demand for our products, which is why we expect sales volumes to rise again this year despite the possibly continued depressed market sentiment.
Model Group
Model Group develops, produces and supplies high-quality packaging made of solid and corrugated cardboard, from simple transport packaging to highly refined praline and fragrance boxes. The group comprises 12 companies in seven countries. The main markets include Germany, Switzerland, the Czech Republic, Poland, Benelux, Austria, France, Slovakia, Croatia, Slovenia and Hungary. The company is headquartered in Weinfelden/TG, Switzerland.
