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One of the Hidden Secrets Behind the Valuation of Global Packaging Giants

13.03.2026
in All News, Articles, Company news, Main, News Europe
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 One of the questions often asked by people outside the industry is simple:
why are corporations like Smurfit Westrock or International Paper valued at multiples of EBITDA that many other industrial businesses can only dream about?

The answer is not only scale.
One of the real secrets is control over every single production node — every corrugator, every converting line, every flexo folder-gluer, every piece of equipment across hundreds of plants.

In large corporations, machines are constantly evaluated.
If a production line does not deliver the expected return, if the volumes are not sufficient, or if the product mix changes — the machine simply moves.
Literally.
Relocation has become a normal part of industrial life in the corrugated sector.

This insight was shared with me by Tadas Salkauskas, the owner of Machinery Assist, a company specializing in the relocation of large industrial equipment.

In corporations that operate hundreds of plants, several facilities close or restructure every year. When that happens, machines do not disappear — they move. Premium equipment, especially high-value lines such as those produced by BOBST, is frequently relocated to other plants where it can deliver stronger performance.

But relocation creates something even more interesting.
When a machine is dismantled, transported and installed again, it creates a perfect moment for modernization.
The equipment is already fully disassembled. Access to every module becomes possible. Upgrades that would normally be expensive or disruptive suddenly become efficient and logical.

This is exactly why BOBST has built an entire remanufacturing program (through their CM Service division) dedicated to machine refurbishment and modernization. Today the company aims to restore up to 20 machines per year, bringing them back to near-new (or better-than-new) technical condition.

There is, however, an important difference.
One scenario is when the manufacturer buys back a machine, remanufactures it, and later sells it somewhere in the market.
Another — far more interesting — scenario is when the machine is already dismantled for relocation, the manufacturer performs a modernization during the process, and the remanufactured machine is installed directly at its new plant.

For many operators, this approach offers a powerful combination: relocation, modernization, and renewed productivity — all happening in a single coordinated project.

In the photos you can see how Machinery Assist teams work side-by-side with BOBST specialists during the relocation process. While the final machine commissioning is performed by the manufacturer’s engineers, the heavy rigging operations are handled by specialized crews.

One small detail illustrates the scale of the work.
The compact lifting unit visible in the photos can raise up to 25 tons — a unique piece of equipment used by Machinery Assist for handling heavy machine sections in tight industrial spaces.

Behind the scenes, this quiet ecosystem of relocation, remanufacturing and modernization is constantly reshaping the global corrugated industry.
And perhaps it is one of the reasons why the biggest corporations continue to become even more efficient.

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Tags: BOBSTInternational PaperMachinery AssistSmurfit WestRock

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