USA – Atlantic Packaging, the packaging solution subsidiary of Atlantic Corporation, has acquired South Carolina-based corrugated packaging supplier, Coastal Corrugated for an undisclosed sum.
Coastal Packaging will join the North Carolina headquartered Atlantic Corporation diverse packaging manufacturing and equipment distribution operations.
Atlantic Corporation operates 18 regional facilities east to west as Atlantic Packaging and maintains a strong clientele base throughout North America, the Caribbean, and Central America.
Commenting on the deal, Wes Carter, President of Atlantic Corporation said: “We are excited about the opportunities this move brings to our already diverse company.
“Coastal’s products are consistent with our marketplace focus, especially as it broadens our value proposition to the evolving automotive market.
“We have looked at corrugated sheet plants before as they are very allied to our converted products offering. This one seemed the right one at the right time.”
“Coastal’s ability to design and fabricate protective packaging solutions right here in the low country brings great value and sensible logistics.
“The North Charleston location connects with our newly opened Packaging Solution Center in Charlotte and the logistics of our existing ten facilities across the Carolinas and Georgia,” he added.
While there are around 1,300 manufacturing plants for corrugated production in the US and Canada, North America is the dominating region for global corrugated packaging market followed by Europe.
However, growing demand of corrugated packaging in manufacturing and food & beverage industry in countries such as Germany, Russia, Italy and France is likely to expand the corrugated packaging business in the Europe beyond the 30% market share of the global corrugated packaging in 2016.
Rising consumer consciousness and rising concerns by regulatory bodies regarding sustainable packaging and the cost benefits associated are encouraging the use of environment-friendly packaging products, and is also driving the growth of the corrugated packaging market.
The corrugated packaging market was valued at US$262.61 billion in 2019, and it is expected to reach US$339.95 billion by 2025, recording a CAGR of 4.41%, during the forecast period of 2020-2025, according to Research And Markets..
Atlantic Packaging is among other major manufactures which include; Wisconsin Packaging, Arabian Packaging, Cascades, Klabin, GWP, Mondi, TGI Packaging, Georgia-Pacific, Smurfit Kappa, Westrock, Rengo, Saica, Pratt Industries, Oji Holdings that are expected to benefit from the growth.