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Smurfit shares hit after fire damaged a packaging factory

Smurfit shares were hit after a fire ripped through a packaging factory, destroying 8,000 tons of paper and cardboard

Around 8,000 tonnes of paper and cardboard were destroyed in a fire at a packaging plant in Birmingham.

More than 100 firefighters battled the blaze at the Smurfit Kappa SSK paper mill in the Nechells district on Sunday.

The fire broke out at 7:40 p.m. on the property next door and spread to the mill’s yard in high winds.

Loss of paper: The major fire at the Smurfit Kappa SSK paper mill in Birmingham destroyed around 8,000 tonnes of paper and cardboard

Pictures and drone footage posted by the West Midlands Fire Service showed bales of cardboard on fire across a large area of ​​the site, but fortunately there were no casualties.

The mill is one of two Smurfit Kappa paper mills in the UK and produces 500 to 700 tonnes per day of packaging paper, which is later converted into cartons.

The Irish company has the capacity to produce 8.3 million tonnes of paper and cardboard annually worldwide and to process more than 7 million tonnes of waste paper for recycling.

Packaging companies have faced an increase in demand for their products over the past two years, first due to the boom in e-commerce at the height of the Covid-19 pandemic and then due to the broader recovery as economies reopened.

Smurfit said earlier this year that its product range has effectively sold out in almost all of the 36 countries in which it operates.

Smurfit shares – which are included in the FTSE 100 index – fell 2.2 per cent, or 65p, to 2892p.

A spokesman for the company said: “Smurfit Kappa would like to thank the West Midlands Fire Service staff and the SSK team for their quick and professional response in controlling the fire within hours and ensuring everyone’s safety.

‘The paper mill itself is not affected and we do not expect any significant impact on production.’

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Smurfit shares hit after fire damaged a packaging factory

Source link Smurfit shares hit after fire damaged a packaging factory

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