Elopak and Nippon Paper Industries sign license agreement to grant right of production and sales of Elopak’s Pure-Pak cartons to Nippon Paper in the Oceanian market.
Elopak ASA (President & CEO: Thomas Körmendi, hereinafter "Elopak", ticker "ELO") and Nippon Paper Industries Co., Ltd (President and CEO: Toru Nozawa, hereinafter "Nippon Paper") have agreed that Nippon Paper will produce and sell Elopak's lineup of Pure-Pak packaging for liquid food and beverage products worldwide and introduce them to the Oceania region.
Nippon Paper, the largest liquid packaging producer in Japan, is concentrating efforts in the field of paper packaging with the goal of improving consumers' lives and helping the planet under the slogan of "Pioneering the future together with trees." Based on the slogan "What can be done with paper," Nippon Paper is exploring the potential of packaging based on wood, a renewable resource, and offering a variety of proposals. Nippon Paper group is also one of the leading packaging companies in Oceania through its subsidiary business, Opal.
Elopak, a leading global supplier of carton packaging and filling equipment, offers sustainable packaging solutions that provide a natural and convenient alternative to plastic bottles. This licensing agreement aligns with Elopak's ambitions to meet the rising demand for sustainable packaging solutions by pursuing a growth strategy centered on investment in innovation; the pursuit of new business opportunities in existing and new markets across both fresh and aseptic markets; and driving the plastic to carton conversion.
The two companies have worked closely together for many years. In March 2016 they signed a product licensing agreement that allows Nippon Paper to manufacture and sell certain Pure-Pak cartons in Japan. When Elopak listed on the Oslo Stock Exchange in June 2021, Nippon Paper entered into a cornerstone agreement to acquire shares equivalent to 5.0% of the share capital. In January 2022, the two companies also signed a Memorandum of Understanding (MoU) to strengthen partnership and advance collaborative efforts in the field of liquid-paper packaging.
The new license agreement will leverage the technological capabilities and innovation of both companies to pursue new business opportunities in the Oceania region, particularly in Australia and New Zealand where population growth and domestic demand are rising. It will also further promote the transition away from plastic towards more sustainable, low carbon packaging solutions for chilled liquid beverages.
Collaboration between Nippon Paper and Elopak is built on the companies' shared commitment to sustainability and innovation. Both companies are members of the United Nations Global Compact and incorporate the UN's Sustainable Development Goals (SDGs) into their development strategies. They also have a shared dedication to sustainable forest management and improved recycling of their paper products.
Commenting on the license agreement Elopak CEO Thomas Körmendi stated, "We are delighted to be announcing this latest collaboration with Nippon Paper, which is an important step in driving forward our growth strategy as a company. Given our established track record of working together, we are uniquely well positioned to deliver for customers in the region."
Commenting on the license agreement Nippon Paper Managing Executive Officer and General Manager of Paper-Pak Sales Division Yasuhito Obayashi noted, "We are pleased to be working with Elopak to meet the rising demand for sustainable packaging in the Oceania region and supporting customers to transition from plastic bottles to cartons. We look forward to jointly leveraging our extensive experience and strengths to promote and deliver renewable, low carbon solutions."