BHS Corrugated has entered into a strategic partnership with digital cutting and creasing systems provider Highcon to expedite the digitisation of the corrugated packaging market.
As part of this partnership, BHS’s vision will be integrated with Highcon’s digital finishing solutions to automate the production of digital corrugated boards.
By incorporating Highcon’s digital die-cutting equipment into BHS’ Box Plant 2025 strategy, BHS hopes to better serve the industry by moving towards greater automation.
BHS managing director Christian Engel said: “Highcon’s unique solutions can be a very valuable building block in the digitalisation and enhanced operational efficiency of the corrugated industry.
“We have been very impressed by Highcon, its leadership and workforce, its technology and solutions and we look forward to working closely to drive a win-win for both our companies and our customers.”
Highcon is installing two units of its Beam 2 digital die-cutting system, which is claimed to have a speed of up to 5,000 sheets per hour.
The systems have also been ordered by both Westrock and Eurographic to assist in folding carton production.
In a separate development, three existing investors of Highcon, namely Landa Ventures, Jerusalem Venture Partners, and LR Group, have agreed to jointly invest no less than $2.5m (NIS10.1m) to help the company financially.
A new business plan has also been approved by Highcon’s Board of Directors to bring positive cash flow and operating profitability in 2024.
As part of this plan, the company aims to reduce its burn rate and suspend investment in long-term projects for the next 12 months.
It expects its cash burn rate to decrease by $6m-$7m annually through this restructuring process.
