Thinking Ahead - Today for Tomorrow
Over five years ago, the Koehler Group entered the flexible packaging paper market with a huge investment – a strategic decision. So how has the market developed since then? Are conditions helping with the switch to paper as a renewable and recyclable raw material? And what kind of role does a smart, long-term strategy play? An interview with Executive Board members Kai Furler, Dr. Stefan Karrer, Frank Lendowski, and Philipp Prechtl.
Family businesses think in the long term, and the Koehler Group acted on developments in the paper industry with enormous foresight. Have the expectations from six years ago panned out?
Kai Furler — In 2018, we made the decision to go ahead with the biggest single investment in the history of the Koehler Group – the construction of production line 8, which took 300 million euros. That’s how we tapped into the growing flexible packaging paper market. We want to become market leaders in this area, and are on the right path already. In fact, our Koehler Innovation & Technology research unit has put everything it has into working on new products in the last few years.
Today, our innovative paper solutions can be recycled multiple times – proof of how we embody circular economy practices. Countless brands worldwide are already using our flexible packaging paper, and a new representative study by market research company Appinio recently confirmed that more than 90% of consumers support replacing plastic packaging with paper and board. Right now, around 65% are already choosing paper or board packaging over other options at brick-and-mortar stores.
So have we already reached the “paperization” point that we’d originally envisioned when we entered the market five years ago? Clearly not, as our aims remain very high. However, this year will be crucial to the evolution of this market in a number of ways.
Do you have the technological capabilities required to meet the flexible packaging paper market’s needs?
Dr. Stefan Karrer — Yes. We really planned ahead and invested early on in a market that’s just now starting to develop. As a result, production line 8 in Kehl, Germany, is the most advanced production line for flexible packaging paper in the world right now. And paper machine 8 is the fastest at 1,400 meters per minute. It features the world’s biggest MG cylinder, which has a diameter of more than seven meters and is responsible for our packaging paper’s extraordinary smoothness and the resulting high quality. There’s also coating machine 8, which is part of our production line and features a curtain coater that can apply three coatings in a single pass – that’s exceptionally efficient and cost-effective, as well as completely unique on the market in this configuration. Overall, the production line is designed for a capacity of 120,000 metric tons of flexible packaging paper a year, i.e., we’re in a perfect spot technologically.
With production line 8 in Kehl, Koehler has the most advanced production line for flexible packaging paper in the world.
of flexible packaging paper can be produced on production line 8 in Kehl every year.
So the market’s direction isn’t simply a matter of having this technology?
Dr. Stefan Karrer — No, it isn’t. We did our homework and have competitive paper solutions on the market that can replace plastic film. Now it’s time for the political sphere to do its part. From our perspective, the incentives that exist right now are simply not enough to nudge large branded companies to actually switch to recyclable paper. Just to give you one example, distributors should actually get financial advantages related to packaging disposal or carbon taxes. There are in fact multiple large global corporations that have worked with us on development activities and large-scale market tests with the intention of being ready in case the market – whether through regulations or consumer behavior – pushes them to switch to paper.
Right now, attempts to switch to more environmentally friendly and highly recyclable paper-based packaging can fall apart due to obsolete regulations that are still in place, as is the case with food producers in Germany. Moreover, the conditions for us – as the only company that makes these products in Germany – are anything but easy. Due to high energy costs in Germany, we’re at a disadvantage in an industry where competition is global. In order to be able to ensure job security and value creation in this country, we need to have public grid energy prices that are internationally competitive and can be reliably budgeted for.
We want to become market leaders in this area, and are on the right path already.
We want to become market leaders in this area, and are on the right path already.
CEO
Kai Furler, born in Oberkirch, Germany in 1974, is the Koehler Group’s CEO and represents the eighth generation of the family behind the company. After spending time in London and Paris, he graduated with a business administration degree from the Munich Business School in 1999. He then acquired experience in various international jobs as preparation for joining the Koehler Group. The father of three started working at the company in 2003, becoming Commercial Director in 2007 and CEO in 2011.
How difficult is it to keep a strategic perspective of long-term decisions in day-to-day operations?
Kai Furler — That’s a good question. We always want to keep a focus on short-term actions and the success of our flexible packaging paper range, but without ever losing sight of our long-term strategy. That’s why our Supervisory Board decided to expand the Koehler Group Executive Board: Since January 1st, 2026, Philipp Prechtl has been in charge of the Group’s strategy. This should enable us to systematically refine and implement that strategy, secure growth, and increase our profitability.
Our acquisition of logistics company Klumpp + Müller also shows just how important a long-term strategic vision is for us. With it, we’ve secured an essential logistics chain for the pulp that serves as the key raw material for our paper production. Klumpp + Müller opens the door to trimodal logistics at the port of Kehl, ensuring a reliable long-term supply of raw material for our mills, so we’ve gained a greater degree of independence and planning certainty.
The largest single investment in the history of the group cost 300 million euros.
Why is a strategic vision so important in times like these?
Philipp Prechtl — The Koehler Group is an incredible company that has accomplished a lot in the past few years, and its mixture of rootedness and entrepreneurial courage is what has brought us to where we are today. The truth is that I was always drawn to family businesses when I was working as a consultant, since they allowed for quick decisions and significant latitude while also having the drive to act. And that’s what I see every single day at Koehler. At the same time, the world is more complex now: The environment is challenging, the competition is tough, and circumstances keep changing. That’s why I’ll be focusing on making sure we’re working on the right things and constantly reviewing priorities to remain successful. In difficult times, we need to make use of our strong finances as a springboard for taking advantage of opportunities.
We really planned ahead and invested early on in a market that’s just now starting to develop.
We really planned ahead and invested early on in a market that’s just now starting to develop.
COO
Dr. Stefan Karrer, born in Augsburg, Germany in 1965, joined the Koehler Group as its COO in 2016. Before that, he held various senior management positions in the paper industry, such as Managing Director of the Sappi Group paper mill in Alfeld, Germany. Dr. Stefan Karrer is on the board of various professional bodies, including German paper industry association Die Papierindustrie e.V. The father of two got his doctorate from the Technical University of Graz in Austria, has a Qualified Supervisory Board Member certificate from the Deutsche Börse Group, and is part of a Supervisory Board.
Does a clear focus on strategic aspects also have direct advantages for day-to-day operations?
Philipp Prechtl — Yes, of course. That’s why I’ll also be involved in day-to-day operational issues. However, I’m not here to micromanage things, but rather to establish clarity, set priorities, and get things done. For instance, I’m helping establish the right conditions for our flexible packaging paper range so that we can keep growing. And it’s not just about government policy, but also about our internal organizational development. The throughline is strategy as the way to our goals, meaning that implementing it consistently is essential.
We need to make use of our strong finances as a springboard for taking advantage of opportunities.
We need to make use of our strong finances as a springboard for taking advantage of opportunities.
CSO
Philipp Precht, born in 1978 in Munich, Germany, has been part of the Koehler Group since 2022 as Managing Director of Koehler Innovative Solutions and Koehler Invest. He became the group’s Chief Strategy Officer in 2026 and is responsible for the areas of innovation, digital transformation, marketing, and communications. The father of two is in various Advisory Boards and a Supervisory Board, has a business administration degree from the Ludwig Maximilian University of Munich, and has a Qualified Supervisory Board Member certificate from the Deutsche Börse Group. He has extensive experience acquired in various consulting firms and operational management roles.
The Koehler Group was viewed as a “Hidden Champion” for a long time. Have its visibility and the way it’s perceived changed since?
Frank Lendowski — We’ve kept growing constantly, not to mention that making flexible packaging paper means that we’re also tapping into markets that are enjoying a lot of attention and in which we weren’t well known as a company before. That has increased our visibility. The Minister of Economic Affairs, Labor, and Tourism of Baden-Württemberg, Dr. Nicole Hoffmeister-Kraut, just recently awarded us with the state’s business medal for extraordinary business achievements and exceptional contributions to the economy of Baden-Württemberg. She honored us as “belonging, without a shadow of a doubt, to the best of Baden-Württemberg.” It’s a great honor for us as a company, and enormous praise for all our employees who do incredible work day in, day out.
We’re a fixture in our sites’ regions, as well as global players in the world’s markets.
We’re a fixture in our sites’ regions, as well as global players in the world’s markets.
CFO
Frank Lendowski, born in 1960 in Dortmund, Germany, initially joined the Koehler Group as Finance Director in September 2010 and then became CFO at the beginning of 2011. Before that, he worked as a Commercial Managing Director for an international luxury kitchen furniture manufacturer for many years, leading divisions such as Finance and Accounting, Controlling, HR, and IT. The father of two has always worked for family companies throughout his career.
How does the Koehler Group remain rock solid even when macroeconomic conditions are challenging?
Frank Lendowski — We’re a fixture in our sites’ regions, as well as global players in the world’s markets. We’re currently being headed by the family’s eighth generation, and so stand for consistency, lived family traditions, and, above all, long-term decisions. Nevertheless, sales volumes have dropped significantly in the paper industry in the last few years. However, our specialty paper positioning in niche markets and the way we think in terms of generations have enabled us to handle the situation relatively well. Our equity ratio is higher than average and we have a healthy capital structure. That means we can make our decisions independently.
Dr. Stefan Karrer, Philipp Prechtl, Kai Furler, and Frank Lendowski (left to right).
