Corrugated market will enter in 2013 with a new look

There are few sectors that live moments of consolidation in Brazil. Markets split between small or medium-sized companies are increasingly rare and this phenomenon begins to reflect on a thread always touted as the best thermometer of the national economy:-corrugated cardboard-raw material for the production of most durable goods and boxes sold Brazilian retail nondurable.
"With the consolidation experienced by customers, natural moving there ends up being similar among the suppliers. Is the best way to meet the demands of these large companies that form, "says Ricardo Trombini, President of the Brazilian Association of corrugated board (ABPO).
In the last months of 2012, were announced two deals that will make the industry earn different features of 2013: a joint-venture between the International Paper (IP) and Jari, the Orsa Group, and the purchase of Are Roberto by Grupo Habitasul, owner of the Celulose Irani. "There were two major consolidation movements," says Trombini.
One of those moves was anticipated long ago by the market: the American input IP, owner Mark Chamex, corrugated box industry. After announcing on several occasions who sought options to get to the Brazilian market, IP announced in late October, the creation of a joint-venture with Jari, the Orsa Group, one of the biggest competitors of the national market.
At the time of the announcement, global President John Faraci, IP said that the deal was a strengthening of the strategy to expand the business in "strategic regions of the world". American's total investment, with 75% of the shares of the new company, will be $ 470 million.
With the joint venture with Jari, the IP, which is a leader in the global market of corrugated board, must arrive at the same position in the national market in no time. In the United States, she is responsible for 37% of sales.
São Roberto cardboard, a midsize company, was purchased in early November by the Group Habitasul, controller of Irani, one of the largest corrugated sector companies in Brazil.
Although companies reinforce that the acquisition was not performed by Irani but by its parent company, the statement sent to market at the time of purchase stated that the group "will evaluate and discuss with the Irani synergies and the model for a joint performance between businesses Are Roberto and Irani".
Sought, the companies involved in the negotiations has not commented on the prospects of the market, stating that await the finalization of the integration processes of the operations. When talking about the consolidation of the industry as a whole, the President of the Celulose Irani, Pericles Pereira Druck said believe that recent movements are individual questions.
"Consolidation seems a natural movement and healthy for the industry, but I do not see such large changes in the coming years."
Bigger and better
Anyway, only the arrival of a large group, such as IP, or the acquisition of a midsize business, as Are Roberto, by another much larger, are signs that the features of the corrugated sector should be quite changed in the medium term.
Today, the market is divided among many competitors, most of them small or medium-sized businesses. "The leader, who is only 15 holds Klabin,% of the market," says Trombini, ABPO.
According to him, by more efficient medium-sized companies, the Union of these companies or by foreign competitors is beneficial to the market. "Only in this way it is possible to remain competitive."