OK, students, it is time to learn the name "Primestone Capital." As reported in Nip Impressions (www.nipimpressions.com) on 28 December 2023, Primestone Capital, a holder of 0.8% of Smurfit Kappa, is urging Smurfit Kappa to reconsider the friendly merger offered by International Paper in 2018 and reject the idea of mating up with WestRock. This promises to throw Smurfit Kappa, WestRock (again, the current target of Smurfit Kappa's merger intent), and International Paper into a bit of a tizzy here in the first quarter.

In the United States, this puts two of the top five containerboard producers in a state of unfocused energy as we emerge from a lackluster year. Interpretation: the balance of the top five have an opportunity to jump ahead while egos thrash about and sort it out. Your homework--who are the other members of the US top five?

Being unfocused is never good. At this critical juncture in the containerboard business, it promises potential chaos...and opportunity for the uninvolved.

This author has been watching Smurfit's attempts at becoming a major player in the United States since 1986 (anyone remember JSC/CCA?). While Smurfit and then Smurfit Kappa has done a credible job in Latin America (with Latin America headquarters based in Miami, Florida) and in Europe, their thrusts into the United States can be considered tepid a best, at least until they acquired smallish Orange County Container about a decade ago.

Now they are in a new kerfuffle, based on the actions and remarks of Primestone Capital.

As we say here at Paperitalo Publications, the pulp and paper industry is always very interesting. 2024 is starting off enforcing this view.

Jim Thompson is CEO of Paperitalo Publications.

#pulpandpaper