Interestinghttps://www.wsj.com/articles/can-paper-paperboard-cardboard-replace-plastic-packaging-11641134377?
KALAMAZOO, Mich.—When a new building-size machine cranks up this month, it will begin turning mountains of recycled cardboard into paperboard suitable for greener forms of packaging.
The $600-million project, the first new paperboard production line built in the U.S. in decades, represents an enormous bet by owner Graphic Packaging Holding Co. GPK 0.18% on a future without foam cups, plastic clamshell containers or six-pack rings.
Graphic and other producers of paperboard, a single-sheet cardboard used mainly in packaging, are working to introduce newfangled products such as fiber yokes for six-packs and microwavable meal trays molded from cardboard. Graphic has announced plans for a line of cups with a water-based coating to replace the polyethylene lining, one step closer to the holy grail of a compostable cup.
Graphic holds about 2,400 patents and has more than 500 applications pending, which protect its package designs and machines installed on customers’ manufacturing lines to fill and fold cartons.
Its executives say research and development is focused these days on expanding the use of paperboard from grocery shelves to deli, produce and beer coolers. “We are attacking anything that is plastic,” said Matt Kearns, a packaging designer for Graphic.
Plastic, though, is less expensive than paperboard. Advancements in paper packaging, such as compostable cups, will likely add to costs. Paperboard producers have increased prices several times over the past year to cover their own rising expenses. Some buyers are exploring less expensive alternatives to paperboard, said Adam Josephson, a paper and packaging analyst at KeyBanc Capital Markets.
“Can companies such as Graphic sell more products when the cost is considerably higher than the products they’re already selling?” Mr. Josephson asked. “That is very much in question.”