Sihl + Eika successfully integrated

Paper trade After the takeover of Schneidersöhne (and thus also Sihl + Eika) by Papyrus, there are now two winners.

Paper trading Following the takeover of Schneidersöhne (and thus also of Sihl + Eika) by Papyrus, there are now two winners. "The façade is still the same - but since the takeover by Papyrus, we have gained further muscle and have been able to significantly strengthen our strategic and operational foundations," commented Daniel Meier, Delegate of the Board of Directors of Sihl + Eika Papier AG (Sihl + Eika) at a recent press conference on the advantages of the integration into the Swedish-Finnish paper trading company, which was completed last August. And this progress is backed up by figures: While paper consumption in Switzerland recorded only a slight increase of 0.4 percent last year, the paper trading group based in Thalwil (headquarters), Bern, St. Gallen, Lausanne and Dintikon (main warehouse) achieved a 6 percent increase in sales. "As a result," says Meier, "we have been able to expand our market share from 28% to over 30% and consolidate our position as number 2 in Switzerland."
Rainer Köster, previously a board member of the German paper trading group Schneidersöhne (which has owned 80 percent of Sihl + Eika since 1998) and a member of its management team since the merger of this family business with Papyrus, explained why Sihl + Eika's parent company joined Papyrus: "The concentration of dealers and manufacturers in Europe is continuing. In 1990, the five largest paper merchants in Europe distributed around 30 percent of paper; today this share is already 66 percent, so we had to decide whether to remain a smaller merchant overall or become part of a global player." Köster also believes that eBusiness will continue to change the market. He estimates that the proportion of paper ordered online will soon be between 10 and 20 percent across Europe. Such challenges would have been difficult for a private group like the Schneidersöhne to tackle alone. 
Other advantages of being part of huge entities such as Papyrus are obvious: the larger the company, the better the conditions for paper producers, which leads to more favorable purchase prices for retailers and ensures their profitability. At present, however, these improvements only compensate for increased energy costs.
Export hit PaperManagementIn addition to the almost 100,000 tons per year, a relatively modest quantity in the Papyrus network, Papyrus is interested in the services developed by Sihl + Eika in the past. The local company is therefore regarded within the group as a pioneer of comprehensive paper delivery services. Summarized under the terms PaperManagement Print and PaperManagement Office - two, it is emphasized, proprietary terms of Sihl + Eika - the company has developed and introduced logistics concepts upstream and downstream of pure paper delivery.
This makes the takeover a win-win situation for both sides: while Sihl + Eika benefits from better integration into Papyrus in the area of logistics and better purchasing conditions, the Group is very interested in the services developed by its latest subsidiary. PaperManagement from Sihl + Eika could therefore develop into an export hit.    
PapyrusWith a turnover of 2 billion euros, Papyrus is the second largest paper trading group in Europe following the takeover by Schneidersöhne. With 3300 employees, the group sells 1.9 million tons of paper annually. Despite the takeovers, the trading group, which operates in 20 countries, continues to operate in various countries under its existing brand names (e.g. Schneidersöhne, Papeteries de France, Sihl + Eika). Papyrus, which is headquartered in Gothenburg (Sweden), is a wholly owned subsidiary of Stora Enso, the world's largest paper producer.
Jürgen Franck

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