Ericsson ( ERIC Quick Quote ERIC - Free Report) recently unveiled new and sustainable packaging solution for shipping Ericsson Remote Radio products. The company will now be using wood fiber materials for packaging inserts instead of heavily-polluting plastic packaging.
ERIC has come up with two designs that leverage new materials while retaining the high structural integrity need for safe-keeping of products during shipping. The solution was designed in collaboration with two suppliers, Nefab and DS Smith. It will be used for heavy-duty electronic products (weighing between 24-36kg) packaging.
Ericsson adds that these new packaging inserts are fully recyclable. More importantly, it will bring down plastic content of the entire packaging to less than one percent compared with 20% earlier. By applying an anti-abrasion coating to the wood fiber material will aid in easy removal of plastic bag used to cover the product surface. Therefore, the only plastic content will be that tape used to seal the outer package, noted the company.
The new solution is part of the company’s sustainability strategy. It remains focused on circularity as well as using more sustainable materials in the supply chain operations. There has been a global effort is curbing plastic pollution and tackling overall climate change threat. Also, levying of taxes on plastic packaging (especially in India, EU and Canada) is fueling a transition to use of sustainable materials in packaging, added Ericsson.
Ericsson aims to achieve Net Zero across the company's entire value chain by 2040.
Headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. It is a leader in telecommunications and is now expanding its role into an Information and Communications Technology solutions provider.
ERIC is well positioned to cash in on the market momentum with its competitive 5G product portfolio. The company continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. It acquired Vonage to expand its presence in the wireless enterprise. The acquisition of Cradlepoint has strengthened its ability to grow in the 5G enterprise market.
However, declining trends in Networks vertical owing to lower capex spending from North American operators and inventory adjustments are hurting the top line. Ericsson’s cash flow could be significantly impacted by market and customer project adjustments.
Ericsson carries a Zacks Rank #3 (Hold). The stock has lost 27.7% in the past year compared with the
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