Against the backdrop of the dramatically rapid progress in concentration in the packaging industry, the Schumacher family is setting the course for a secure future for the traditional company. Management is in advanced talks with potential partners. A first agreement for the Polish subsidiary was signed recently.
“For several years now, there has been a rapid increase in concentration and consolidation in the industry,” explains Björn Schumacher, CEO of the Schumacher Packaging Group. “This has resulted in the emergence of several global corporations with sales of over €20 bn. With their geographical reach, their production and sales power, and their financial strength, these giants pose a serious threat to medium-sized, owner-managed companies such as Schumacher Packaging. Although we are among the fastest-growing companies and the recognised innovation and technology leaders in the industry in Europe, we cannot ignore these changed market conditions. In a few years, the pressure on companies like us, with a current turnover of around €1 bn, will be noticeably greater than it is today.”
In addition, the general conditions have become even more difficult since the start of the Russian war of aggression against Ukraine in February 2022. Since then, the consumer climate has deteriorated in almost all major European markets as a result of political and economic instability and consumer uncertainty. This has resulted in falling demand for the packaging industry as well. Although all packaging companies in Europe are affected by this, smaller and medium-sized companies such as Schumacher Packaging are hit much harder.
Left to right: Hendrik and Björn Schumacher.
Securing the future through partnerships with larger companies
“Against this background, our analyses and future planning have led us to the conclusion that continuing as an independent, family-run company would entail significantly more risks than continuing business in an association with one or more larger competitors,” said Schumacher.
The international size of the company, i.e. the number of locations and countries and thus customer proximity – as well as a sustained high financial strength for investments – will be the decisive success factors in order to be perceived as a strong, relevant partner by customers in the medium and long term.
Schumacher adds, “Out of responsibility for the sustainable competitiveness of our family business, we are therefore in advanced discussions with potential strong partners. With companies that share the same entrepreneurial vision for our industry and have the size and strength to actively shape the future of packaging together with us in a sustainable way.”
Sale of the Polish subsidiary to Saica Group
Such a future-proof solution has already been agreed for Poland. An agreement to take over the Polish subsidiary of Schumacher Packaging was recently concluded with Saica Group. The agreement covers all activities in Poland; the entire management, all employees, two state-of-the-art corrugated cardboard plants in Bydgoszcz and Wroclaw, two paper mills in Grudziądz and Myszków, one of which will be completely modernized in 2023, and three service centers. Schumacher Packaging employs 1,540 people in Poland and generated sales of €327m last year. The completion of the transaction is subject to approval by the Polish antitrust authorities and the fulfilment of certain preconditions.
“With sales of around €3.62 bn in 2023 and a strong presence in 10 European countries, Saica has the necessary size to survive sustainably in the competitive environment,” says Schumacher. “We are pleased about this agreement with Saica – both for our customers and for our Polish employees. For us, this is an important first step in our future strategy. With Saica, there is also a great cultural proximity between the two family-run companies, which enables rapid integration.”
Both companies work with great passion for the vision of climate-neutral packaging made from renewable raw materials. The products and services of both companies complement each other in Poland. In addition, Saica is closing a gap in its already large geographical coverage in Europe’s sixth largest economy.
The spin-off of the subsidiary has no impact on the operational business of the group of companies, which will then have 2,400 employees and 17 locations in five European countries (Germany, Czech Republic, Great Britain, Italy, Netherlands). This is because the Polish organisation operates with its own management almost independently of the other country organisations. Business continues as before. “Even after the spin-off of the activities in Poland, Schumacher Packaging is excellently positioned and is a strong partner for its customers with regard to security of supply and innovations,” says Schumacher.
Future security of the entire group of companies as a goal
The aim of the ongoing discussions with potential partners is to integrate the extremely healthy company, which has been created over three generations, into larger, more international companies in the medium term, thus creating planning security for customers and employees. The connection with larger partners should help us to work together even stronger, better and more innovatively, and to create even greater customer proximity than Schumacher Packaging could achieve alone.
Schumacher conlcudes, “As an independent company, we would no longer be able to keep up with the growth dynamics that larger companies in our industry are also achieving through acquisitions and mergers in the medium term. However, with this far-sighted decision by the entrepreneurial family, we are now setting the course for a long-term successful future.”
