Faerch A/S

Denmark · owned by A.P. MØLLER OG HUSTRU CHASTINE MC-KINNEY MØLLERS FOND TIL ALMENE FORMAAL (Denmark) · www.faerch.com · 10 vendors

Faerch A/S is a Danish manufacturer and integrated recycler specialising in high-quality, recyclable, and circular rigid food packaging solutions for food producers across markets such as dairy, fresh meat, ready meals, and foodservice. The company combines food safety, performance, and sustainability through materials like PET, CPET, and PP, using technologies including thermoforming, injection moulding, and extrusion. With more than 25 sites across Europe and North America, Faerch aims to be the global leader in sustainable rigid food packaging and recycling within a circular economy.

Resilience scores

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Insights

Last updated 2026-09-18 · revision 2

10 direct vendors, 110 subvendors

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Subvendors by controlling owner country (sample)

Migration Readiness: 6/10

Assessed by AI based on technology stack characteristics (cloud-native vs legacy, containerization, microservices), regulatory environment, data residency requirements, financial stability, and vendor lock-in risks. The score ranges from 0-10, where higher scores indicate better readiness for technology migration.

Faerch A/S shows moderate migration readiness, primarily driven by its existing significant adoption of cloud technologies, specifically Oracle Cloud HCM, Oracle Cloud (OCI), and Oracle Recruiting Cloud. This indicates a foundational understanding and experience with cloud environments, which is a strong advantage for future migration initiatives. However, this deep integration with Oracle Cloud also presents a substantial risk of vendor lock-in. Migrating away from these core Oracle services to an alternative cloud provider or on-premise solution could be complex, costly, and time-consuming due to data migration, application refactoring, and potential re-training. The 'Vendor Lock-in Risk: Unknown' explicitly highlights this as a potential challenge. Furthermore, the absence of data regarding specific regulatory environments, data residency requirements, and financial stability means potential compliance hurdles and funding capacity for migration remain unknown, adding to the complexity. The architecture of the 'EasyCMS' system is also unknown, which could represent a legacy component requiring significant effort to migrate.

Compliance

9 in-scope frameworks identified; showing 3.

ESPR — Assessment Required

As a manufacturer of packaging, Faerch's products will likely be subject to future delegated acts under the ESPR, which will set specific ecodesign requirements for product groups.

The Ecodesign for Sustainable Products Regulation will introduce wide-ranging sustainability and information requirements. Future non-compliance could become a barrier to market access as product-specific rules are rolled out.

Evidence: https://www.faerch.com/en/sustainability/climate-and-circularity/recycling, https://www.faerch.com/en/faerch%E2%80%99s-2025-sustainability-report-showcases-strong-progress-on-decarbonisation-circularity-and-innovation, https://www.whitecase.com/insight-alert/eight-key-aspects-know-about-eu-ecodesign-sustainable-products-regulation, https://chemxplore.com/companies/faerch, https://www.faerch.com/, https://www.faerch.com/en/sustainability/responsible-business/policies-and-industry-standards

NIS2 (source) — Assessment Required

Faerch is a large manufacturer in the food production and processing sector, which is listed as an 'Important Entity' under Annex II of the NIS2 Directive. The company exceeds the size thresholds (50+ employees or EUR 10M+ turnover).

A significant cybersecurity incident could disrupt manufacturing operations across multiple countries, impacting food supply chains. As an 'Important Entity', fines for non-compliance can be substantial.

Evidence: https://nis2-compliant.com/industries/manufacturing, https://nis2directive.eu/manufacturing/, https://sosafe-awareness.com/glossary/who-does-nis2-apply-to/, https://www.suppliershield.com/post/nis2-compliance-in-manufacturing-how-to-secure-your-supply-chain-and-meet-eu-requirements, https://www.lansweeper.com/blog/cybersecurity/a-comprehensive-guide-to-nis2-compliance-for-the-manufacturing/

EU FCM Regs — Compliant

Faerch manufactures rigid plastic packaging for the food industry. Regulation (EC) No 1935/2004 and specific measures like (EU) 10/2011 apply directly to their products placed on the EU market.

Non-compliance with food contact material regulations would halt Faerch's core business, leading to product recalls, fines, and severe reputational damage. The risk of falling short is low given their established position and certifications.

Evidence: https://www.compliancegate.com/food-contact-material-regulations-european-union/, https://food.ec.europa.eu/food-safety/chemical-safety/food-contact-materials_en, https://www.faerch.com/en/resources/certificates-and-documentation, https://www.faerch.com/en/sustainability/responsible-business/policies-and-industry-standards, https://foodpackagingforum.org/resources/background-articles/regulation-on-food-packaging/food-packaging-regulation-in-europe, https://www.klgates.com/thought-leadership/Overview-of-Food-Contact-Material-Regulations-in-Europe-Plastics-9-27-2024

Financials

Three-year financials

Financial Resilience Score: 6/10

Faerch A/S presents a mixed financial resilience profile. On one hand, the company benefits from a very large equity base of approximately €1.23B relative to reported losses, providing multi-year runway to absorb operating setbacks. It is backed by A.P. Moller Holding, a long-term Danish foundation-owned investor that provides stability and access to capital rarely available to PE-owned peers. The company also secured a €100M, 10-year sustainability-linked loan from the Nordic Investment Bank in late 2024, demonstrating access to long-dated ESG-linked financing at favorable terms. On the other hand, the operating performance is deteriorating. Revenue has declined for two consecutive years (cumulatively ~8% from FY2023 to FY2025), EBIT collapsed from €44.4M in FY2023 to a loss of €11.3M in FY2025, and net losses have persisted every year shown. The company is undergoing significant transitions including the Sirap acquisition (adding ~1,000 employees across 5 sites in Italy, Poland, Spain) and a new CEO effective July 2025. Strategic strengths in sustainability positioning, integrated PET recycling, EU regulatory tailwinds, and pan-European market leadership must now translate into margin recovery. The strong equity cushion and patient owner mitigate near-term solvency concerns, but the operational turnaround remains unproven.

Key strengths: Strategic long-term owner (A.P. Moller Holding) providing capital stability, Very large equity base (~€1.23B) relative to losses, Pan-European market leader in rigid food packaging with 25+ production sites, €100M 10-year sustainability-linked loan from Nordic Investment Bank (2024), Vertically integrated with world-class PET recycling facility, EU Packaging and Packaging Waste Regulation tailwinds favor recycled content, Diversified customer base of 4,600+ customers worldwide, SBTi-validated climate targets (50% GHG reduction by 2030, net-zero by 2040)

Risk factors: Net losses in every one of the last four fiscal years, EBIT turned negative in FY2025 (-€11.3M), Two consecutive years of revenue decline (~8% cumulative), Integration risk from Sirap acquisition (~1,000 additional employees), Mid-turnaround CEO transition (new CEO effective 1 July 2025), Concentrated exposure to European food retail/ready-meal end-markets, Volume/price pressure from raw material costs and customer destocking, Highly leveraged capital structure post-2021 buyout carrying significant interest and depreciation charges

Workforce by country

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