Progroup AG and K2 Verpackungen (Packaging) invest around 17 million euros in the region

+++ Investments in expansion, modernisation and climate protection +++ Successful packaging park model boosts competitiveness +++ Benefits for regional businesses and workers

Offenbach / Queich, 22. July 2019

Progroup AG, one of Europe’s leading manufacturers of containerboard and corrugated board from Landau in the German state of Rhineland-Palatinate, is investing together with the packaging manufacturer K2 in expanding its sites in Offenbach an der Queich. Investing around 17 million euros in total, the two companies are enlarging and modernising their production facilities and thus reinforcing their commitment to the region.

Investments in expansion, modernisation and climate protection

Progroup and K2 Verpackungen, whose plants are adjacent to each other in Offenbach, are already long-standing cooperation partners. With these investments they are pursuing the aim of a joint growth strategy, but applying different levers to achieve this. For example, Progroup is investing in a transport bridge and the expansion of its high-bay warehouse in which corrugated sheetboard is stored and retrieved in fully automated fashion and customers are able to access the goods which are to be delivered directly. “The construction of the transport bridge, or the bridge building as we refer to it within the company, symbolises the long-term collaboration – an integral part of our successful business strategy,” stresses Jürgen Heindl, founder and Chief Executive Officer of Progroup. “Furthermore, we will save the environment around 3,000 truck journeys every year, which will of course significantly reduce noise and CO2 emissions,” adds Jürgen Heindl.

 

The packaging manufacturer K2 is investing in further automation measures at the end of the conveyor bridge and in expanding its capacity in the form of another, highly automated production line. “For us at K2, bridge building means that we will be especially able to live up to our slogan ‘Peak of productivity’ with fully automated delivery of the materials followed by fully automated production,” says Carsten Zier, Managing Director of K2 Verpackungen GmbH & Co. KG.

The fully automated inner workings of the transport bridge
Successful packaging park model boosts competitiveness

Progroup AG relies on long-term cooperation with independent, medium-sized packaging manufacturers. The “packaging parks” model has been an integral part of the company’s business strategy, which has been successful for many years. In these parks, production and IT systems of commercially independent companies are highly interconnected, which considerably increases flexibility and efficiency. In the future, corrugated board which is conveyed via the bridge to our partner K2 Verpackungen will require neither means of transport nor any packaging. This will reduce transport costs as well as CO2 emissions. “The transport bridge and the modern high-bay warehouse are a huge leap forward for our plant logistics and demonstrate that we are consistently implementing our strategy of leading the way on technology in the industry,” emphasises Jürgen Heindl.

Benefits for regional businesses and workers

Predominantly local businesses have been commissioned to do the planning and construction work. Workers at Progroup will benefit from the safety of a highly efficient production operation that leads the way in terms of technology, and workers at K2 Verpackungen will benefit from additional positions created by a new production line. “We want to continue to offer our customers very good value for money in the future,” explains Carsten Zier. “We can only do this with a reliable partner such as Progroup alongside us. Customers, partners and the region will all benefit in equal measure.”

 

 

Details about the investment:

 

  • Progroup is investing around 9 million euros in a transport bridge as well as modernising and expanding a high-bay warehouse.
  • K2 Verpackungen is investing more than 8 million euros in new production lines and a fully automated material flow system.
  • Construction work began in March 2018 and was scheduled to be completed in August 2019.
About Progroup

Progroup AG, located in Landau in the German state of Rhineland-Palatinate, Germany, is one of the leading manufacturers of containerboard and corrugated board in Europe. Since it was founded in 1992 in Offenbach/Queich, the company has been pursuing a consistent growth strategy which, in addition to technological leadership, is also based on the use of innovative and environmentally friendly production technologies. Progroup operates production sites in six countries in Central Europe. Currently boasting two paper factories, ten corrugated sheetboard plants, a logistics company, its own power plant and more than 1,150 employees, in 2018 the company generated sales of around 966 million euros.

About K2 Verpackungen (Packaging)

K2 Verpackungen GmbH & Co. KG, which was founded in 2009 and is based in Offenbach an der Queich, is a manufacturer of corrugated board transport packaging. This packaging is manufactured using the very latest, highly automated technology. Together with its parent company, Udo Zier GmbH, which since 1933 has been based in the Black Forest and has focused on the production of special packaging made from corrugated board, solid board and foam, almost 100 workers are employed at both sites. In 2018 the company’s sales were 27.5 million euros.

Progroup press contact

Dagmar Ginzel, Senior Vice President Corporate Communications

E-mail: dagmar.ginzel@progroup.ag

Mobile: +49 172-2569953

K2 Verpackungen (Packaging) press contact

Claudia Zier, Commercial Manager

E-mail: cl.zier@k2-verpackungen.de

Phone: +49 6348 / 610449-12

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