It will undoubtedly be one of the industrial events of 2027 : the entry into operation of the Cartonnerie de La Réunion factory, on the ZAC Roland-Hoareau in Pierrefonds, probably during the second trimester. The company is preparing to abandon its aging machines and leave the old building in industrial zone no. 1 of Saint-Pierre, which she has held since her birth in 1982. She moved to a brand new site, currently under construction. The transformation will be total, both in walls and in industrial equipment, 95% renewed. Its offer will then be able to cover the entire spectrum of cardboard packaging., that is to say not only secondary transport packaging but also printed packaging. Thanks to machines that its main Malagasy and Mauritian competitors do not have, the historic Reunion manufacturer will set out to reconquer the local cardboard packaging market, dominated today at 70% by imports mainly from Madagascar and Mauritius. We owe this transformation to LM Distribution, which bought Cartonnerie de La Réunion in 2021 and is preparing, since this date, its relaunch on entirely new bases. Its investment plan is up to the challenge. It is an understatement to say that this renewal is awaited by a large number of local industrialists. In 2003, during a first purchase of the cardboard factory then in difficulty, the local industry had shown him, as far as possible, its solidarity in order to maintain activity. “This loyalty will not be forgotten”, says its current general manager, Samuel Leveneur. From LM Distribution, the pilot of this industrial transformation details the company at the forefront of innovation that Cartonnerie de La Réunion will become.
Under construction on the ZAC Roland-Hoarau in Pierrefonds, the future factory is sized to accommodate, especially, a machine measuring 108 m long. Exploiting the natural ventilation of the Pierrefonds plain, it will considerably improve working conditions compared to the current factory.
Meeting Leader : The ongoing revival of Cartonnerie de La Réunion stems from its takeover in 2021 by LM Distribution. For what reasons and in what circumstances was LM Distribution interested in the Reunion Island manufacturer of cardboard packaging? ?
Samuel Leveneur : In 2021, LM Distribution was looking for a response to the ban on plastic in fruit and vegetable packaging provided for by the AGEC law, which was to come into force in 2022. We were looking to design cardboard trays. Trays as preferred, we would have had it manufactured by the Cartonnerie de La Réunion. I worked on this project for a year. We began to question the cardboard factory about the feasibility of this local manufacturing when its manager, Guy Hagelauer, informed us of his decision to retire. He was putting the business up for sale. There was an exchange and we got along very quickly : Guy Hagelauer wanted the cardboard factory to remain in the hands of a Reunion actor. It was important for us too. The sale was made on the basis of this common point of view. Our expectations were aligned.
La Cartonnerie de La Réunion experienced a first relaunch in 2003, with a development of its industrial tool. What happened next ?
Since its birth in 1982, Cartonnerie de La Réunion produced compact cardboard packaging and corrugated cardboard packaging. In 2003, there was a separation of the two activities. M. Hagelauer took over the corrugated cardboard part, the one we bought in 2021. The compact cardboard went to a Malagasy group, moreover since taken over by a Reunionese. After 2003, some investments were made to renovate part of the industrial park. But there were very few new machines, it was mainly used equipment. This park has an average age of over 40 years. ! We are investing massively in new equipment to renew the company and because we have no choice : spare parts no longer exist for these old machines, they are experiencing more and more breakdowns and are less and less repairable. Compared to our Malagasy and Mauritian competitors, our current fleet is no longer competitive at all. If we continue to work under these conditions, in less than five years, there will no longer be a cardboard industry in Reunion.
What roadmap and objectives were set for you when you took charge ?
The roadmap was very simple : to start, it was about continuing the evolution of the Cartonnerie de La Réunion, to modernize it to make it more competitive, and offer new products. We have already launched product ranges such as cardboard trays, I was talking about, for packaging fruit and vegetables from the LM group. We tried to work as best as possible with what we had in terms of production equipment in order to improve productivity, but the objective is above all to realize the factory project. This is what I'm currently working on. This brand new factory will take place in the Roland-Hoarau area of Pierrefonds. Work began last September. Delivery of the building is scheduled for the end of 2026. The new factory is expected to be operational in March or April 2027.
Cardboard paper is used to manufacture corrugated cardboard with which secondary packaging for the transport of goods is produced..
What does your packaging offering consist of and will it evolve? ?
Today, we only produce secondary packaging. On the evolution of this offer, I want to clarify one point : packaging in general is often criticized. The general idea, there is too much packaging and therefore too much packaging waste. We can hear it, but you have to think about what packaging is used for. It has two functions : transportation, and product protection. Without packaging, no product could be transported or protected. What I mean, is that as a packaging producer, we are perfectly aware of this issue. We strive to reduce the carbon impact of this activity. Our new investments and our new factory also have this objective. To give you an idea of the new cardboard factory : for the same type of cardboard used, our carbon impact will be reduced by 30% compared to the current factory. We are also working on reducing the weight of paper. We will be able to reduce this weight by almost 25 to 30%.. In other words, the new factory will use 25 to 30% less cardboard paper. We are also preparing a project to reuse our cardboard waste with a Mauritian partner., WeCycle, who recycles paper. It will recover our crushed cardboard waste to transform it back into recycled paper, that we will buy back from him. We will establish a virtuous circle. You should know that, in our production, we already use 60% recycled cardboard. We are therefore going to increase this percentage.
What products will you offer ?
With our new factory, we want to become the Reunion specialist in all cardboard packaging : secondary packaging, and packaging. We have already started to develop niche markets. We must continue on this path, in Reunion and soon for export. Nearly 70% of packaging used in Reunion Island is imported : Only 30% is produced locally. Our objective is to increase local production by ensuring our industrial customers have a supply of quality cardboard at a competitive price with offers from Madagascar and Mauritius.. We will be able to ensure the necessary flexibility of this supply, a key asset for this market. Importing packaging requires storing it and we all know that storage costs money, particularly in Reunion. Local production allows, she, local supply on demand according to needs. We will thus be able to help customers who have themselves helped us by being patient., in the difficult period of the transition of our production tool. We look forward to providing them with solutions through our new factory.
La Cartonnerie de La Réunion is preparing to renew almost all of its industrial tools which have become obsolete. In the new factory, the production process will be semi-automated and manual tasks will be reduced to a minimum.
Are you targeting new customers beyond catering?, large commerce and industry ? Small businesses, For example, for whom the order thresholds of Cartonnerie de La Réunion were too high and who therefore had no other choice but to source their supplies elsewhere ?
M. Hagelauer had a slightly different vision of business than ours. For me as for the group to which I belong, there are no small customers : there are only customers. This is what I explain to my teams. It’s not always easy to get this message across because in an industry, it is simpler and it seems more logical to carry out large productions than small ones. In the new factory, our production capacity and productivity will be greater, our storage capacity also. We will respond to large orders while having slots that will allow us to produce small series. We will make sure to respond to all requests and satisfy all types of customers.
Completely renew your productive apparatus, in particular the inverter manufacturing corrugated cardboard ?
Yes, we change 95% of the machines. It's a big project. This is why it takes a little time. First of all, we had to find suitable land : our new corrugator, which is nevertheless the smallest possible, measures 108 meters long ! We needed land to install a 108 meter machine, which in Reunion is a feat ! We managed to find it in Pierrefonds, and we are very satisfied with it. Change almost all machines, it was essential : a project of this scale is done completely or not at all. The goal is to bring to Reunion Island the packaging industry that it has been waiting for for a long time..
The company could produce 30,000 cardboard boxes per day. Will this capacity increase ?
We will be able to triple this daily production. Being able to store more finished products will allow us to launch larger productions and, thanks to economies of scale, to reduce the cost for our customers.
The new factory will therefore be larger ?
Bigger and also more modern, more efficient, more comfortable. We are currently working on approximately 4,300 m², tomorrow we will be on 6,200 m². Handling tasks, which are still numerous in the current factory, will be considerably reduced thanks to semi-automated production. The handling staff will improve their skills and progress professionally. The employees who, today, receive and handle the cardboard behind the machines will become what we call “line pilots”. They are the ones who will operate the machines in the new factory.. Their training began. It’s a great satisfaction for me. The new factory will also improve working conditions.. The manufacture of corrugated cardboard releases a lot of steam. At this time of year, heat in the factory, with this steam, is impressive. The plant is designed to make maximum use of the natural ventilation of the Pierrefonds plain.. The aerodynamic study of the building shows that inside, we will gain 9 degrees less feeling compared to the outside. Just using the wind as natural ventilation !
A packaging manufacturer is also a printer. Is the company's revival about quality and printing possibilities? ?
Printed directly on cardboard, we will be able to offer four colors instead of three with much better printing quality. Each machine will have an independent printing group, while we only have one today for the three machines. We will therefore save time for printing. But this will considerably expand the possibilities of packaging decoration, it’s the lamination. Lamination is a printing sheet that is glued to the cardboard. This technique opens up the packaging market for us. Thanks to her, we will be able to respond to almost all specific requests, with very qualitative productions in terms of printing. The printing of the laminating sheets will be entrusted to a reputable printing partner on the island.. I emphasize that we are keen to work with local partners. We are not building a factory, which aims to counter packaging imports, to then import supplies ! Anything that can be done locally will be done. I also specify that this lamination offer, we will be the only ones to offer it in the region. This is something that does not exist in Mauritius or Madagascar..
What about custom packaging design ? Will you develop this offer? ?
We will effectively develop this offer by integrating a second person into our internal design office specializing in packaging design.. This design office produces samples. Once a model is chosen by the customer, we start production. We were talking about small series : tailor-made packaging is a response to this expectation. The new Cartonnerie de La Réunion aims to create diversified packaging solutions.
In the Reunion industry, industrial equipment is often oversized compared to the size of the local market. This will always be the case with new equipment ?
Unfortunately yes. Let us set up a cardboard factory in Reunion, In Corrèze, in Paris or Germany and whatever the market, it will always be the same machines that will run. This is why we will have to increase the pace very significantly.. We will thus give ourselves the means to bring back as many customers as possible from Reunion Island but also from abroad by being more competitive., by expanding our offer, by offering more quality products and things that our Malagasy and Mauritian competitors do not do. We will be able to produce series of all sizes which will meet all secondary packaging and packaging needs.. What makes the difference today with our competitors, is that they use more efficient machines than ours. Tomorrow, it will be the opposite : we will have the most efficient production unit in the Indian Ocean. Cartonnerie de La Réunion will become the most cutting-edge cardboard packaging manufacturer in the region.
Do the uncertainties surrounding the evolution of dock dues worry you? ?
It's a subject, obviously. But our objective is to be competitive thanks to our equipment and our skills, not because of the dock dues.
Currently, Cartonnerie de La Réunion mainly produces secondary packaging. Tomorrow, it will be capable of producing the most sophisticated printed packaging
Are you going to create a website to highlight the renewal of the company? ?
We think about it. But on a BtoB market, a site is not necessarily necessary. At least not for the moment. We have other priorities.
Do we know what the cardboard packaging market represents in Reunion Island? ?
Our estimates are based on what we produce and what we know about the market. Give you exact figures in terms of number of packages, I couldn't. An indicator comes from local overall consumption of paper and cardboard : approximately 12,000 tonnes per year.
We are talking about millions of packages ?
Of millions, of course. To give you an idea, six million boxes of pizza are imported each year to Reunion Island. This product is now totally imported. Tomorrow, we will be able to make it.
Are Mauritian manufacturers your main competitors ?
Indeed. The Mauritians and the Malagasy are proving to be very aggressive competitors currently on the Reunion market..
Will the new factory need more staff ?
We are currently 32. The objective is of course to grow our teams. We have already started to strengthen certain positions.
The Reunion Cartonnerie, his first name, was created in 1982 to meet the need for cardboard packaging in local industry and distribution, which were developing. In 2003, it is also a certain solidarity of its traditional customers which made it possible to relaunch the activity. Can we talk about a privileged relationship? ?
I will not speak of a “privileged relationship”. Everyone has their priorities and tries to do the best. Our luck, is that a good number of industrialists have a sense of Reunionese patriotism. Even in difficult times, they kept a flow of business at the local cardboard factory to enable it to continue. Like many of these industrialists, we are members of the Association for the Industrial Development of La Réunion. Tomorrow, we will be grateful to these companies. We will be proud to offer them better prices and better quality products.. Being able to satisfy such customers, which are of high quality and which have helped us in difficult times, it’s very motivating. I thank them for their patience. Another page of the partnership that has linked us for so long will open.
Do the new investments integrate the revolution that the packaging profession is experiencing to adapt to environmental requirements? ?
I was referring to it earlier : less paper and more recycled cardboard. Recyclability enhances the short cycle. When possible and relevant, we will put forward both solutions : classic cardboard, or recycled cardboard. For transport packaging for example, recycled cardboard is ideal. The customer, of course, will have the last word.
When do you expect orders to start at your new factory? ?
I think we will be operational in the second quarter of 2027. During the transition period, we will run both factories at the same time so that our customers are not impacted by the change. There will be no interruption in production.
Has the problem of cardboard packaging of fruits and vegetables been solved? ?
LM wanted to comply with the Agec law, but the all-cardboard thing confused the public : when we put these perforated packaging on the market, our sales dropped by 80% ! The products were no longer as visible and especially our competitors, them, were left with the polystyrene tray and the plastic film. In the meantime, the decree specifying the terms of application of the ban on plastic packaging of fruits and vegetables was annulled by a court decision. Not wanting to go back, LM has chosen a mixed solution of cardboard packaging covered by plastic film, Or 80% cardboard and 20% plastic. For consumers to adopt cardboard packaging, we should first force all market players to do so. Already, Cartonnerie de La Réunion is ready to respond to this request.
Samuel Leveneur, the new generation in charge
“Graduated with a Master’s degree in international business and a Master’s degree in corporate finance, I built my career around strategic development, operational management and commercial performance. » Samuel Leveneur is a young leader who, by leading the renewal of the Cartonnerie de La Réunion, takes up the challenge of industrial diversification of the LM group, specialist in fruit and vegetable distribution. It is with his already rich experience within the LM group that he is now leading this high-stakes project., including the construction of a new factory. Before being appointed to the general management of Cartonnerie de La Réunion in 2021, Samuel Leveneur held key positions within the LM group. As Project Manager, he coordinated structuring and transversal initiatives. Promoted to sales manager, he was in charge of sales development, team management and LM's commercial strategy. Skills that he now puts at the service of the Reunion cardboard factory, while preparing its transformation into a modern company.
