Integration on the right track
The takeover by Papyrus has been good for Papier Sihl + Eika as well as for the owner Schneidersöhne.
Paper Sihl + Eika as well as the owner Schneidersöhne have benefited from the takeover by Papyrus.High-ranking visitors ensured great interest among the trade, business and daily press at Sihl + Eika Papier AG's annual media conference this year. Mats Nordlander, the President of the Papyrus Group, to which Sihl + Eika has belonged since 2005, traveled to Thalwil. There, at the headquarters of the paper trading company Sihl + Eika, another top executive, Rainer Köster, was present. The visit of the two top managers underscores the importance Papyrus attaches to its, if you will, grandchild company (see box). For a long time now, the healthy and prospering trading house has been regarded within the Group not only as a stable sales figure - the term "star performer" has been coined in Thalwil - but also as an innovative company in terms of its extended range of services. Know-how transferSo the Papermanagement Print and Papermanagement Office concepts developed by Sihl + Eika are being extended to other countries where the Group parent company Papyrus is active. While Papermanagement Print enables participating print shops, among other things, to reduce sheet paper storage, Sihl + Eika understands Papermanagement Office as a system partnership for paper and also materials management in the office sector.
According to Daniel Meier, CEO of Sihl + Eika, these improvements have enabled the trading company to expand its market share. In 2006, Sihl + Eika increased its market share by 4.6 percent to 32 percent in the year under review. Finally, at the press conference, Meier attributed the positive income statement to the absorption of price erosion. Furthermore, the affiliation with Papyrus resulted in purchasing advantages, and the parent company StoraEnso also offered attractive external financing. While Sihl + Eika exports its paper management concept, Thalwil benefits from know-how - for example in the field of e-business, in order to, according to Meier, "further improve the value-added services.
Sales driver Central EuropePapyrus CEO Mats Nordlander does not try to be represented in every European country. Rather, a leading position is sought wherever Papyrus operates. This strategy has been successful. Nordlander is considered a turnaround manager; he has transformed the then struggling group into a profitable trading company through acquisitions such as the healthy Schneidersöhne, among others. "We have quadrupled sales since 2004," explains the Swedish manager. Regionally, the most important sales driver is the Central Europe region, which includes Switzerland and where about half of the group's sales are generated. In his address to the press, Rainer Köster, Senior Vice President responsible for Central Europe and thus for Germany, Italy, Austria and Switzerland, announced that StoraEnso had taken over the 20 percent previously held by Epicea in addition to the 80 percent previously held. Sihl + Eika is thus a fully integrated subsidiary with retroactive effect from January 1, 2007. Köster will become Chairman of the Board of Directors at Sihl + Eika.
Price increases plannedMore important than these changes was the information on pricing policy. Daniel Meier explained that price adjustments, i.e. increases, would have to be made. These were a reaction to price increases on the part of suppliers, who in turn had to contend with higher energy and raw material prices. Herbert Sutter, responsible for marketing, explained that prices would have to be adjusted upwards from September at the latest, both in the A4 range and for graphic papers.
Who belongs to whom
In 1998, the Swiss paper trading company Sihl + Eika sought a strong partner in the German paper trading house Schneidersöhne in order to better meet new challenges. For the same reason and in the course of a succession plan, the German family-owned company had adopted a similar strategy in 2005 and was finally integrated into the Papyrus Group, which was somewhat smaller. Papyrus itself is a subsidiary of the paper manufacturer StoraEnso. This company was created from a merger: from the Swedish paper and board manufacturer Enso and the Finnish paper producer Stora.
Jürgen Franck
According to Daniel Meier, CEO of Sihl + Eika, these improvements have enabled the trading company to expand its market share. In 2006, Sihl + Eika increased its market share by 4.6 percent to 32 percent in the year under review. Finally, at the press conference, Meier attributed the positive income statement to the absorption of price erosion. Furthermore, the affiliation with Papyrus resulted in purchasing advantages, and the parent company StoraEnso also offered attractive external financing. While Sihl + Eika exports its paper management concept, Thalwil benefits from know-how - for example in the field of e-business, in order to, according to Meier, "further improve the value-added services.
Sales driver Central EuropePapyrus CEO Mats Nordlander does not try to be represented in every European country. Rather, a leading position is sought wherever Papyrus operates. This strategy has been successful. Nordlander is considered a turnaround manager; he has transformed the then struggling group into a profitable trading company through acquisitions such as the healthy Schneidersöhne, among others. "We have quadrupled sales since 2004," explains the Swedish manager. Regionally, the most important sales driver is the Central Europe region, which includes Switzerland and where about half of the group's sales are generated. In his address to the press, Rainer Köster, Senior Vice President responsible for Central Europe and thus for Germany, Italy, Austria and Switzerland, announced that StoraEnso had taken over the 20 percent previously held by Epicea in addition to the 80 percent previously held. Sihl + Eika is thus a fully integrated subsidiary with retroactive effect from January 1, 2007. Köster will become Chairman of the Board of Directors at Sihl + Eika.
Price increases plannedMore important than these changes was the information on pricing policy. Daniel Meier explained that price adjustments, i.e. increases, would have to be made. These were a reaction to price increases on the part of suppliers, who in turn had to contend with higher energy and raw material prices. Herbert Sutter, responsible for marketing, explained that prices would have to be adjusted upwards from September at the latest, both in the A4 range and for graphic papers.
Who belongs to whom
In 1998, the Swiss paper trading company Sihl + Eika sought a strong partner in the German paper trading house Schneidersöhne in order to better meet new challenges. For the same reason and in the course of a succession plan, the German family-owned company had adopted a similar strategy in 2005 and was finally integrated into the Papyrus Group, which was somewhat smaller. Papyrus itself is a subsidiary of the paper manufacturer StoraEnso. This company was created from a merger: from the Swedish paper and board manufacturer Enso and the Finnish paper producer Stora.
Jürgen Franck
