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The Final Word by Helen Roush
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Saica Group, a privately owned company that is headquartered in Spain, announced on July 30th that it will be establishing its first corrugated manufacturing facility in the United States near Cincinnati, Ohio.

Saica Group will likely buy paper on the market. Saica Group's move is strategic as it most likely wants to establish customers first, before building a mill. While it will pay a premium for paper, it is a safer move.

It's a much lower investment to get started versus building a mill and then a box plant.

It's a good time for manufacturers to make moves such as this. Currently, money is cheap for construction and the containerboard mills are not quite full.

Saica Group picked the location for the new corrugated manufacturing facility strategically as there is paper close to them with several mills located in Ohio, Kentucky, Indiana and Illinois.

You can read the story by clicking here.

Helen Roush is Executive Vice President of Paperitalo Publications.

 

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