DS Smith, a leading packaging producer based in Britain, was last year acquired by US group International Paper. There were some fears of possible downsizing, and now the news has broken for the group’s German plants. No less than five are to close. A DS Smith spokesman says it wants to respond to the difficult market conditions and accelerate profitable growth. There has been a strategic review of these packaging sites to optimize resources. 

“We believe that this review in Germany will help us to reduce costs where they are not adding value,” the statement reads. This cavalier decision has surprised the Works Councils of the five plants: they would normally be consulted before any major decision, particularly when 500 or more jobs are at stake.”

To add to German industry’s woes, Sappi Europe has announced the start of a “formal consultation process with employees” (no prizes for guessing what that forebodes) at its Alfeld Mill. The decision came in response to a structural decline in demand for certain paper products in the European market. The proposed changes could result in the closure of several key assets at the site, including two paper machines, coaters, and the sheet finishing operations. If implemented, up to 200 jobs at the mill could go. (Editor’s note: This consultation is already complete. It started in July 2025 and concluded in October 2025, with a final decision taken at that time. These closures led to a reduction of approximately 180 positions, realized through a combination of unfilled vacancies, voluntary agreements and, where necessary, redundancies.)

A bad year as well for Germany’s packaging machinery exports

The United States has long been by far the most important international market for German manufacturers of food processing and packaging machinery. In 2024, machinery of this category worth over $2 billion was delivered to the United States – an increase of 7% compared to the previous year. However, the first quarter of 2025 recorded a decline of 4.4%, and the decline continued through the year, for reasons only too obvious. 

Germany, alas, is not the only country to suffer from this downturn. US manufacturer HP is set to cut between 50 and 90 jobs in Israel, according to reports in the business press. Its local subsidiary, which employs around 2,500 people, is mainly structured around HP Indigo label printing technology, created in 1977 by Israeli Benny Landa and sold to HP in 2001. These new cuts are part of an “ongoing global reorganization” by HP, whose third-quarter profits were 19% up year-on-year, so it must be doing something right.

And UPM doesn’t fancy Nancy any more

The French town of Nancy has been home to UPM Raflatac’s plant ever since most people can remember. But now the passing bell has tolled, and this historic factory has made its last roll of PS labelstock. From now on, Nancy will be a slitting and logistics center only; 80 of the 190 employees will lose their jobs. 

The Finnish group UPM-Kymmene justified this reorganization by citing “overcapacity resulting from exceptional market developments in recent years.”  The group, which employs nearly 17,000 people worldwide and had a turnover of around $12 billion, is seeking to concentrate production in factories considered to be more cost-effective.

MPS Systems is dead, Long live MPS Printing

In late October 2025, MPS Systems and three related Dutch companies entered a Chapter 11 provisional suspension of payments. An independent administrator was appointed to evaluate restructuring options. 

At the time, the company stated that it hoped to continue operations “where possible,” stating that maintaining continuity for customers and employees was a priority. MPS has over 800 presses installed worldwide, with international branches in Europe, Asia, and the US. Despite these efforts, the company was declared bankrupt in early November.

Production, deliveries, and services were temporarily halted, while the administrator looked for potential buyers for a going-concern sale of the business and its assets. Liquidation appeared the most likely outcome. However, in late November, a pair of white knights hove into view. UK managing director Nick Tyrer and company co-founder Bert van den Brink completed an MBO, acquiring the company’s operations and relaunching it under the new name: MPS Printing. 

Future strategy, said the new owners, will emphasize service and recurring revenue, alongside selective new equipment sales.

Sleever invests downstream

Sleever, a company specializing in sleeve labeling solutions, has acquired the tangible and intangible assets of the Tampertec, Startec, and Combitec machines developed by Karlville Development. A subsidiary of Karlville Converting, specializing in sleeve application and bag filling machines, Karlville Development was liquidated on April 1, 2025. 

Sleever, as its name does not suggest, is a French company. It employs 1,000 and has 15 sites across four continents. The purpose of this acquisition is to ensure the continued viability of Karlville Development’s tamper-proof sleeve installation technologies. 

Some label converters aren’t afraid to invest

For a company that began as a small label specialist in 1994, FlexON’s transformation into one of the Czech Republic’s leading self-adhesive label manufacturers represents a compelling success story. 

What began as a modest printing operation founded by two partners has grown into a 60-employee enterprise with a 3,000-square-meter production facility on the outskirts of Prague. The company now serves a wide-ranging client base, with approximately 85% of production serving the domestic Czech market and the remaining 15% exported throughout the European Union. From a “flexo or nothing” strategy five years ago, this converter has invested heavily in Gallus’ digital and hybrid equipment.

Greater Manchester-based label printing specialist Labels UK has strengthened its digital production capabilities with the installation of a 7-color HP Indigo 6K digital press, designed to print on a media range covering pressure sensitives, shrink sleeves, and light cartons. Andy Pike, marketing manager, HP Industrial Print EMEA, says, “The HP Indigo 6K is helping Labels UK deliver even more value to their customers. By combining exceptional print quality with advanced automation and workflow tools, the press enables greater efficiency, personalization, and sustainability.”

Other label converters are also still investing. One of them is the Société bretonne d’étiquettes (SBE). Their choice was for a Bobst M5 flexo press. SBE, which produces 10 million square meters of labels per year using flexo and digital printing, operates mainly in the food, industrial, and cosmetics sectors. It is part of the Nantes-based Canopéo group, which itself belongs to the Spanish Printeos group, which operates 21 production sites and has a turnover of $280 million. Bobst was able to secure this order partly because of its international presence, servicing Bobst presses for many other European converters in the Printeos group.

Label associations: FINAT advises caution, VskE examines generation changes

European label association FINAT reckons that the future of the industry is “cautiously positive” after a year defined by “volatility, resilience, and transition.” Business uncertainty according to FINAT is not a passing phase but a permanent condition. The German label association VskE brought together over 200 delegates at its November meeting, which tended as usual to be heavily technical. The non-technical subjects included how to hand over your company to your children, and how to deal with those pesky Eurocrats in Brussels who want to impose yet more environmental restrictions.

Good news from Armenia, thanks to a South African press manufacturer

Few countries have had a more troubled life this century than Armenia. This former Soviet Republic has been fighting an on-off war with Azerbaijan and “enjoying” more on-off relations with Russia. But label and packaging converter Ginap, aka Flexopack, is not just surviving but expanding. Having invested in an 8-color RFP340 press mainly for printing sausage casings, it has recently installed a second order for a Rotocon Chrome RFP 450 press, equipped with 10 printing units and intended for producing in-mold labels. This press was premiered at Labelexpo 2025. Rotocon was established in 2008 and is a family-owned business. Headquartered in Cape Town, South Africa, it is led by Michael Aengenvoort and sons Pascal, Patrick, and Marco, who all completed their engineering studies in Europe and have cut their teeth in the label and narrow web industry.

DR Labelling chooses Konica Minolta

The Scots have a reputation of being a dour and sober nation, except for the end-of-year celebration of Hogmanay when they let off all the steam built up over the year. Maybe this was part of the exuberance when Scottish label printer DR Labelling installed a new Konica Minolta AccurioLabel 230 digital toner press, supplied by Konica’s UK partner Focus Label Machinery. Focus will provide service and maintenance for the new press.

A Swift rise in US wine imports

What would it take for Americans to drink more French wine? Take a guess and you’ll be wrong. Just before Christmas, Taylor Swift, a popular entertainer, was seen on TV and online alongside a bottle of Sancerre wine. The product immediately saw strong demand among retailers on both sides of the Atlantic. Total Wine, a chain of liquor stores, has since ranked it among its best sellers. Google Trends show a significant rise in searches for the word “Sancerre” immediately after December 23, the day the episode featuring the bottle was released in the US and more generally internationally.

Sustainability and corporate responsibility

Responsible management and respect for the environment sometimes seem to have taken a back seat in today’s business world, but not in the Schreiner Group. Under its third-generation CEO Roland Schreiner, the group has joined the United Nations Global Compact, the world’s largest initiative for corporate responsibility and sustainable development. It has also become a member of the UN Global Compact Netzwerk Deutschland e.V., an alliance of organizations dedicated to promoting sustainable company management, notably in the areas of human rights, fair working conditions, the environment, and compliance with ethical business standards along the supply chain.

“For us, sustainability is not a trend but a key component of our corporate culture,” says Roland Schreiner. “Joining the UN Global Compact underlines our ambition to assume responsibility – for people, for the environment, and for society.”