German containerboard and corrugated sheet producer Progroup has signed a long-term partnership with Zeus Packaging to operate the converting facility at its Ellesmere Port packaging park in the United Kingdom.

The agreement follows the insolvency of the site’s previous converting partner, Krystals, and restores integrated corrugated packaging production at one of Progroup’s strategically important UK facilities. Commercial production is scheduled to begin in October 2026.

Zeus Packaging to Establish UK Production Hub

Under the new partnership, Zeus Packaging will consolidate a significant portion of its UK manufacturing operations at the Ellesmere Port site.

The company will utilize the existing production hall and converting equipment, with upgrades carried out where necessary to support future production requirements.

According to Progroup, the facility is expected to produce at least 100 million square metres of corrugated board annually, making it Zeus Packaging’s central manufacturing location in the UK.

A conveyor bridge directly connects the converting operation to Progroup’s adjacent sheetfeeder plant, enabling a continuous material flow between corrugated sheet production and box converting.

Packaging Park Model Supports Integrated Manufacturing

The Ellesmere Port facility reflects Progroup’s long-term packaging park strategy, which brings corrugated board manufacturing and converting together at a single location.

Rather than transporting corrugated sheets over long distances, packaging manufacturers operate directly alongside Progroup’s sheet plants.

According to the company, this integrated production model helps:

• Reduce transport requirements
• Improve production efficiency
• Increase supply flexibility
• Lower logistics costs
• Reduce environmental impact

The model had previously operated with packaging manufacturer Krystals, which entered insolvency proceedings and ceased operations in 2025.

The agreement with Zeus Packaging restores the original concept by re-establishing an on-site converting partner.

Supporting Growth in the UK Market

Brian O’Sullivan, Founder and Owner of Zeus Packaging, described the United Kingdom as a strategically important market for the company.

He said direct access to Progroup’s corrugated sheet production provides both supply security and operational flexibility needed to support the company’s continued growth in the UK packaging market.

Progroup also confirmed that the new partnership will not affect supply commitments to its existing UK customers.

Chief Sales Officer Vinzenz Heindl said the company will continue providing reliable corrugated board supply across its broader UK customer base alongside the new cooperation with Zeus Packaging.

Two Expanding Packaging Companies

Founded in Ireland, Zeus Packaging supplies a wide range of packaging products, including:

• Corrugated packaging
• Cosmetic packaging
• Labels
• Retail bags

The company operates 61 locations across 34 countries and employs approximately 1,500 people.

Zeus has continued expanding through acquisitions, most recently purchasing Spanish premium packaging manufacturer Koex Packaging Solutions in February 2026.

Progroup, meanwhile, operates three paper mills and 14 sheetfeeder plants across Europe, producing containerboard and corrugated board for the packaging industry. The company employs approximately 1,800 people.

Industry Outlook

The partnership highlights the continued importance of vertically integrated production models within the corrugated packaging industry.

As manufacturers seek greater supply chain resilience, locating corrugated sheet production and converting operations at the same site can reduce transport costs, improve production planning and shorten delivery times.

For the European paper and packaging industry, the agreement also demonstrates how established manufacturing assets can be successfully redeployed following business disruptions, allowing production capacity to be restored while supporting future market growth.

With production scheduled to begin in October 2026, the Ellesmere Port packaging park is expected to once again serve as an integrated manufacturing hub for the UK’s corrugated packaging market.

Last Updated on 07/08/2026 by Jota Machinery