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    Record-high investments with low sales

    The Model Group, which is active in the field of solid and corrugated board packaging, achieved consolidated group sales of CHF 921 million in the past financial year.

    The Model Group, which is active in the field of solid and corrugated cardboard packaging, achieved consolidated Group sales of CHF 921 million in the past financial year, which corresponds to a decline of 24% compared to the previous year. This was due to a 7% drop in sales volumes of corrugated cardboard packaging, a fall in prices and changes to the product portfolio.

    On average, the Model Group employed 4335 people (previous year 4541), 764 of whom worked in Switzerland. Investments reached a record level of CHF 246 million (previous year CHF 152 million). Investments focused on two new corrugated board machines, including new buildings for Nymburk (CZ) and Bilgoraj (PL), new flexo offset and digital printing machines and the major construction site for the conversion and de facto new construction of the paper mill in Eilenburg (Saxony).

    Declining sales volumes and falling prices

    At its 15 production sites in Switzerland, Germany, Poland, the Czech Republic and Croatia, the Model Group produced almost 1.3 billion m² of corrugated cardboard packaging or corrugated cardboard sheets and 474,000 tons of packaging paper for corrugated cardboard production, which corresponds to an increase of 2% or approx. 8,000 tons compared to the previous year. The production volume at the folding carton sites fell by 13%.

    While the financial markets are talking about a soft landing, the goods markets, particularly in the consumer and construction sectors, are already in recession for the second year. Among the country markets served by the Model Group, Germany is showing the most striking declines. Paper production, which is operating at full capacity, has responded to falling demand with above-average price reductions, although the unpredictability of energy supplies and prices would not allow this.

    Outlook

    In April 2024, the paper mill in Eilenburg, Saxony, will start producing lightweight packaging paper. The resulting impetus for the corrugated board packaging range will have a positive impact on demand for our products, which is why we no longer expect sales volumes to fall despite the possibility that market sentiment will remain subdued. Once again, it is becoming apparent that periods of weak demand can be periods of strong innovation.

    Model Group

    The Model Group develops, produces and supplies high-quality packaging made of solid and corrugated cardboard, from simple transport packaging to highly refined chocolate and perfume boxes. The group is represented by 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.

    Media Contact

    Model Holding AG

    Kim Stahlberg

    Industriestraße 33

    8570 Weinfelden · Switzerland

    kim.stahlberg@modelgroup.com

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