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Can TechINTE RNAT I ONA L
SEPTEMBER/OCTOBER 2009
Asia CanTechPhilippines
InterviewAndré Balbi
Supplier Profile
2009
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Editorial Comment
CanTech International September/October 2009 3
he third annual Asia CanTech is on its way, and we
here at CanTech International are busying ourselves
for what is always a much-anticipated event. It is
being held this year in Bangkok at the beautiful Royal
Orchid Sheraton Hotel & Towers.
Suppliers and can makers are converging in Thailand
for the conference and exhibition, which has become a
‘must-visit’ date in the diaries of the region’s can makers.
Keynote speakers will include representatives from Ball Asia
Pacific, Tata Tinplate, Hindustan Tin Works. The future of the
two-piece can will be discussed, and other presentations
of interest will be Bruce Ballard’s speech on “The Three
Most Dangerous Trends in Can Making”. I for one am
looking forward to all the presentations and to seeing you
in November. Please see page 12 for a preview of what’s
in store at the show.
This year’s Supplier Profile is a major part of the issue
– a chance to see the offerings from the industry suppliers,
from Altek to Yuan Rox. This year, the profiles start on page
26. Take a look and see what’s new from your suppliers.
We also have several interviews of note enclosed in
these pages. The Latin American market continues to be
a growth area for cans. Our Candid profile in this issue is
André Balbi, president and CEO, Rexam Beverage Can
Americas, who discusses what the can giant has planned
for this region on page 15.
Meanwhile, Alec Peachey caught up with Vince Major
of the Can Makers on page 14, with the outlook for British
can makers. Henry Tanedo, president of the Tin Can
Makers’ Association of the Philippines, was interviewed by
David Hayes and gives his insight on how the Philippines
can market is faring on page 22, and Jörg Höppner,
general manager of VMV details German can market
concerns with Evert van der Weg on page 16. Taiwanese
can maker Great China Metal Industry is busy expanding
capacity in China – there’s a fascinating interview with
chairman Chiang Ching-Yee on page 20. Finally on page
22, a new highly formable tinplate is being developed by
Rasselstein that has brought a real sense of partnership
between the steel company and its customers.
Editorial DirectorSarah [email protected]
Managing Editor Suzanne [email protected]
Assistant EditorAlec [email protected]
Art EditorSue [email protected]
Advertisement Manager Victoria [email protected]
Accounts Clare [email protected]
PublisherNeil McRitchie [email protected]
Taiwan Sales Agent Worldwide Services Co LtdPO Box 44-100TaichungTaiwanTel: +886 4 2325 1784Fax: +886 4 2325 2967 [email protected]
Japan Sales AgentYukari Media Incorporated. YMI bldg. 3-3-4, Uchihirano-machi, Chuo-ku, Osaka 540-0037 Japan Tel: +81-6-4790-2222
Editorial & Sales OfficeThe Maltings,57 Bath Street,Gravesend Kent DA11 0DF, UKTel: +44 1474 532 202Fax: +44 1474 532 203
22 Philippines 15 Interview: André Balbi
COVER STORIES
Next stop,Asia CanTech
T
By Suzanne Christiansen, Managing Editor
26 Supplier Profile 2009
P.3 INTROCOMMENT��.indd 1 18/9/09 17:35:41
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TATA.indd 18 21/9/09 09:30:28
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September/October 2009 Contents
CanTech International September/October 2009 5
ContentsSeptember/October 2009
Volume 17, Number 1
Subscription Information DON’T MISS IT! An annual subscrip-tion to CanTech International includes direct personal delivery of six issues per year, weekly email newsletter and password access to Bell Publishing’s online archive of news and articles covering the metal packaging market, and the food and dairy processing industries.
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Cover photo courtesy of IMETA
Send address changes to: CanTech International, The Maltings, 57 Bath Street, Gravesend, Kent DA11 0DF, UK. Published by Bell Publishing Ltd. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior written permission of Bell Publishing Ltd. Printed in the UK by Williams Press, Maidenhead, Berkshire. ISSN: 1466-7851
REGULARS
3 Comment
6 World News
24 Equipment News The latest machinery and equipment for the can line
25 New Products New cans and ends in the market place
15 Candid André Balbi, president and CEO, Rexam Beverage Can Americas tells Suzanne Christiansen about his plans for this vast region
FEATURES
12 Asia CanTech 2009
Can TechINTERNATIONAL 26
14 A Major attitude The chairman of the Can Makers, Vince Major, talks to Alec Peachey about how the UK industry is faring
16 The importance of VMV The German metal packaging industry relies on its cam- paigning organisation, VMV. Evert van der Weg reports
18 Rasselstein goes
full-speed ahead High strength steel with extra formability gives tinplate producer Rasselstein an edge.
22
16
22 Offshore interests Great China Metal Industry of Taiwan is counting on further profits in mainland China. David Hayes reports
22 Price level keeps
cans on top David Hayes interviews Henry Tanedo, president of the Tin Can
Makers’ Association of the
Philippines
26 Supplier Profiles 2009
82 Buyers Guide
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September/October 2009 CanTech International
Mixed results for Crown HoldingsCrown Holdings (US) has announced mixed financial results for the second quarter. Net sales in the second quarter were $2.055 bil-lion compared to $2.2 billion in the second quarter of 2008. Beverage can unit volume growth was offset by foreign currency translation of $205 million and the pass through of lower aluminium costs.
Gross profit in the quarter of $333 million, compared to $351 million in the second quarter of 2008, expanded to 16.2% of net sales from 16% of net sales in the second quarter of 2008.
Growth in beverage can unit volumes as well as ongoing cost reduction and efficiency improve-ment programmes partially off-set unfavourable foreign curren-cy translation of $34 million and increased pension expense of $25 million.
“We are very pleased with the overall operating performance and results in the second quarter and first half of the year, especially in light of the challenging econom-ic environment around the world,” comments John W Conway, chair-man and chief executive officer.
Segment income in the second quarter was $243 million, compared to $246 million in the second quar-ter of 2008, and reflects an increase of $25 million in pension expense and $22 million in unfavourable cur-rency translation.
“Underscoring our continu-ing commitment and excite-
ment about the Vietnamese and broader Southeast Asian markets, we acquired a new beverage can plant northeast of Ho Chi Minh City in late June that we expect will begin commercialisation in this year’s fourth quarter,” Conway notes. “With the first half behind us, the company remains on plan to achieve its operating targets for 2009 and to generate strong free cash flow again this year.”
Interest expense in the second quarter was $62 million, compared to $79 million in the second quar-ter of 2008. The decrease reflects the impact of the lower average borrowing rates, $4 million of for-eign currency translation and lower average debt outstanding.
Net income attributable to Crown Holdings in the second quarter grew 6.1% to $105 million over the $99 million in the sec-ond quarter of 2008. Earnings per diluted share in the second quarter rose 6.6% to $0.65 over the $0.61 in the 2008 second quarter.
In the second quarter, the com-pany recorded a net charge of $1 million, or $0.01 per diluted share, relating to previously announced restructuring actions, net of asset sale gains. During the second quar-ter of 2008, the company recorded a pre-tax gain on sale of assets of $2 million and a pre-tax charge of $1 million for restructuring actions. There was no net after-tax impact on earnings per diluted share from these items in the second quarter
Fifty years after the Russians had their first taste of Pepsi, the drinks giant is planning to invest $1 bil-lion in the country over three years. This investment will bring the cumulative investment in Russia by PepsiCo and its partner the Pepsi Bottling Group (PBG) to more than $4 billion.
“I am delighted to announce that over three years we expect to invest $1 billion in our beverage and food businesses in Russia,” says PepsiCo chairman and chief executive Indra Nooyi. “This investment reflects clearly our great confidence in Russia and our long-term commitment to this
PepsiCo plans Russian investmentimportant market.”
The investment in Russia is funding various programs to expand manu-facturing and dis-tribution capac-ity. In addition to a new beverage facility opening in Domodedovo, a new snacks manu-facturing plant is expected to open later this year in the southern city of Azov.
PepsiCo and PBG are also plan-ning significant investments to build
state-of-the-art ware-housing and distribution infrastructure for the Lebedyansky juice busi-ness.
“Russia is a very attrac-tive growth market,” says PBG chairman and chief executive officer Eric Foss. “The investments we’re making in our Russia business are creat-ing new jobs, providing us with the flexibility to
produce a wider range of beverage offerings for con-
sumers, and enabling us to better serve our valued retail partners.”
Rexam, the UK beverage can mak-ing company, has reported a £15 million ($24.7m) net loss for the first six months of the year. This is com-pared to a profit of £97m ($160m) in the first half of last year. The company has unveiled a Rights Issue in an effort to raise around £350.7m ($578.7m). This will reduce the £2.1bn ($3.4bn) debt and pro-tect the company’s credit rating. Favourable foreign exchange translation saw company sales up by 15% to £2.5 billion ($4.1bn) in the period.
“Rexam continues to deliver a relatively resilient operational per-formance against a very challeng-ing backdrop,” says Leslie Van de Walle, Rexam’s CEO. “We have taken significant and appropriate action to mitigate the effect of the downturn.
“We see no clear upturn through the rest of the year in current trad-ing conditions,” adds Van de Walle. “However, during 2010 cost savings will have a material benefit giving us greater confidence in our per-formance.”
Rexam posts £15m net loss in first-half results
Ball appoints Hranicka in North AmericaMichael Hranicka has been named executive vice president and chief operating officer of Ball Corporation’s North American metal beverage packaging oper-ations. He joined Ball in 2005 and has been senior vice president, sales and marketing, for Ball’s Americas metal food and house-hold products packaging business since 2007.
Hranicka will initially report to John Fridery, who has announced his decision to leave the com-pany early in 2010. Hranicka will then report to John Hayes, who is executive vice president and chief operating officer of Ball Corporation.
“Michael has a strong commer-cial focus and excellent leadership skills,” Hayes says. “His emphasis on being truly close to our custom-
ers in all of the ways we interact with them, combined with his dis-ciplined, systematic approach to processes, will serve him and the corporation well in his new posi-tion. He and John Friedery will work closely on a smooth transi-tion over the coming months.”
World News
6
Ball Corporation is aiming to fund the purchase of four AB InBev drinks packaging plants in the US. The can making giant has announced the $700 million public offering of senior notes due for repayment in 2016 and 2019. The exact terms and timing of the offering will depend upon market conditions and other factors.
Ball announced the $577m deal for three beverage can facilities and one can end plant in July. If the purchase is not completed, Ball expects to use the net pro-ceeds from the offering for gen-eral corporate purposes, including other potential acquisitions.
Ball looks for $700million for ABInBev buy
P.6,7,8,9 NEWS�.indd 6 18/9/09 17:41:14
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CanTech International September/October 2009
Acclaimed British artist, Sir Peter Blake, is backing Norfolk County Council’s campaign in the UK to get people to recycle used metal paint cans, and hopes his art work will help raise aware-ness throughout the UK. During the 2009 Holt Summer Festival, in Norfolk, Sir Peter Blake met with representatives from Norfolk County Council and the packag-ing industry to show his support for the work achieved in increas-ing recycling opportunities for the Norfolk general public.
Metal packaging manufac-turer Impress approached the council earlier this year with a view to adding used metal paint cans to the growing list of items that could be recycled. “We are always happy to look at increasing recycling opportuni-ties wherever possible,” says Dan Jacobs, NCC household waste
officer. “We’re encouraging the public to place empty dry metal paint cans in the scrap metal skips for recy-cling, at any of our HWRC, and there is a helpful leaflet showing exactly how this can be done, displayed at all of our 19 sites.”
Impress were delighted to reproduce Sir Peter Blake’s latest work of art entitled, “I Love Recycling” onto a metal paint can, which the artist signed during his appear-ance at the Holt Festival in Norfolk. Sir Peter, who was on board his groovy Art Bus, is renowned for his connection with the music industry, having produced iconic album covers such as The Beatles, “Sergeant Pepper’s Lonely Hearts Club Band” and the single cover for Band Aid’s, “Do They Know It’s Christmas?”
Peter Blake adds his support to recycle effort
World News
Impress has been given exclusive
rights to market Daiwa Can’s range
of re-sealable bottle cans in Europe
after signing an agreement with
the Japanese based packaging
manufacturer. The two companies
have reached agreement on a
strategic alliance to develop and
commercialise novel types of metal
packaging. The second phase of
the agreement provides for pro-
duction of bottle cans in Europe in
a jointly owned company.
A student from Britain’s Ravens-
bourne College of Design and
Communication has found a way
to squeeze 17% more cans on to
a pallet. The reusable HDPE can
crate, designed by product de-
sign graduate Thomas Wooller, is
shaped around the cans, rather
than being a standard rectangle.
Each crate tessellates with the next
so that space is not wasted in be-
tween. The customised shape of
the can crate means that 36 more
cans will fit per layer on a standard
pallet, compared to using square
crates.
The UK’s second largest brewer,
Molson Coors (UK), has become the
first to fully commit to WRAP’s Cour-
tauld Commitment. The Courtauld
Commitment is a voluntary agree-
ment between WRAP and major
UK grocery organisations, which
supports less packaging and food
waste ending up in household bins.
Coca-Cola Enterprises (CCE) has
named can maker Ball Packag-
ing Europe as its top supplier after
reporting growth in its European
operations. Ball was awarded
Coca-Cola’s ‘Supplier of the Year’
award for its efforts in 2008, when it
supplied 2.3 billion cans to CCE in
Europe.
Netherlands-based Impress has es-
tablished a new subsidiary manu-
facturing aluminium cans in South
Korea: Impress Korea. The com-
pany has signed an agreement
with Dongwon Group to lease a
production area within its Haman
plant in South Korea. Impress Korea
has begun manufacturing alu-
minium luncheon meat cans, de-
veloped specifically for the local
Korean market.
NEWS IN BRIEFRed Bull has been hit with a record fine of £271,800 ($449,500) after breaching packaging waste regu-lations in the UK. The fine relates to the Austrian company’s failure to comply with requirements to recover and recycle packaging waste over an eight-year period from 1999 to 2006.
Southwark Magistrates Court fined the firm £261,278 and ordered it to pay the Environment Agency (EA) £3,755 and £6,854 in costs and compensation on 27 July. Red Bull told the EA in July 2007 that it had not registered with a packaging
compliance scheme. It was inter-viewed under caution last year after cooperating with the organi-sation.
“While it is encouraging that the company came to us when they realised their mistake, it is disap-pointing that there are still com-panies that are not compliant with the legislation more than a decade after it was passed,” says Environment Agency officer Helen Pavlou.
“Red Bull takes its responsibility to the environment very seriously hence our decision to bring this
issue to the attention of the author-ities and our full cooperation with all legal proceedings,” comments a company spokesman. “Moving forward, we are now well placed to fulfil our Producer Responsibilities Obligations.”
Under the Producer Responsibility Obligations (Packaging Waste) Regulations, all companies with an annual turnover in excess of £2 million and which handle more than 50 tonnes of packaging per annum must be registered with the EA or a recognised compliance scheme.
Red Bull hit with record recycling fine in UK
Matt Sykes, Impress UK sales manager notes, “The excel-lent work done by NCC, to pro-vide metal paint can recycling throughout the county, is the benchmark for the rest of the UK to follow. Our goal is to convert at least 65% of all UK local authorities to recycle paint cans by 2010 and in doing so, divert 8,000 tonnes of recyclable packaging away from
7
Amcor has offered more than $2 billion to buy the majority of Alcan’s packaging business from mining group Rio Tinto.
If the deal goes through it will make Amcor one of the world’s biggest packaging groups. The deal would create a group with almost $12 billion in sales, 35,000 staff and more than 200 factories around the world.
Both companies feel the deal would improve the two businesses, although international trade union UNI Graphical has expressed con-cerns over likely restructuring once the deal happens. The proposed
sale includes Alcan Packaging Global Pharmaceuticals, Alcan Packaging Food Europe, Alcan Packaging Food Asia and Alcan Packaging Global Tobacco.
“We believe that this acquisition will bring customers of both Amcor and Alcan Packaging even great-er value through broader offerings and enhanced customer service,” says Amcor managing director and chief executive officer, Ken MacKenzie. “Critically, beyond the hard assets, the combined com-pany will draw on the best people from both organisations to drive these improvements.”
Amcor in $2 billion bid for Alcan packaging
Amcor managing director and chief
executive officer, Ken MacKenzie
P.6,7,8,9 NEWS�.indd 7 18/9/09 17:41:15
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September/October 2009 CanTech International
Ball Packaging Europe moved a step closer to digital printing of bev-erage cans after signing a long-term deal with UK-based Tonejet. Tonejet will supply print engine technology and grant licences in respect of the printing of various packaging products belonging to Ball’s inter-national product portfolio.
“This contract is a milestone in one of our most important innova-tive projects: the digital printing of beverage cans,” notes Gerrit Heske, president of Ball Packaging Europe. “We have created a sustainable basis to advance and further devel-op this seminal technology.”
The contract also includes a global service and maintenance agreement, which ensures that Ball has access to Tonejet’s product support in next-generation pack-aging print applications across the world. A prototype of the digital printing machine was installed at the Ball beverage can plant in HaBloch, Germany in the spring of this year.
The digital printing technique, developed by Ball in collaboration with Tonejet, will allow the com-pany to produce beverage cans with individual designs.
Ukrainers make a Beeline for SIM cards in cansMobile phone SIM cards have been made available to buy with drinks cans from vending machines in the Ukraine. The move is designed to appeal to a younger audience who are looking for a quick and conven-ient sales platform. Rexam, the world’s largest aluminium can producer, has teamed up with Ukrainian radio-systems company TM Beeline to distribute its BOOM mobile packages through vend-ing machines that also sell the usual snacks and beverages.
“You can now buy SIM cards packed in beverage cans on the street in the city centre, mean-ing you no longer need to visit a mobile shop or a mobile opera-tor’s office,” says Anton Volodkin, director of marketing at Beeline. “The Boom-Banka ‘Boom Can’ was specially made for a young-er audience and for those who
value convenience and availability. It contains a mobile service pack-age and price list and is currently sold through 20 vending machines in the Ukraine.”
The Beeline brand uses a rela-tively complicated colour range and although its main colours of black and yellow look simple at first glance, their specific shades needed to be reproduced exactly on the non-standard packaging of a beverage can. Yuri Shytov, sales director in Russia for Rexam Beverage Can, notes, “As an inno-vative company, Rexam is always excited about helping customers to develop fresh new ideas for the consumer.”
The standard 500ml beverage cans, which have a special plastic closure, are currently on sale in vending machines throughout Kiev. Plans are for the scheme to roll out in more cities throughout the coun-
try very soon.The idea for selling SIM cards in
cans from vending machines came about because Beeline was looking for a way to set its product apart from its competitors through a novel distribution method. Initially the SIM cards were going to be sold in the aluminium cans through its dealer network, but as the idea progressed it became apparent that vending
machines would have even more appeal to the company’s young and trendy audience.
So successful has the launch been in the Ukraine, that market-ing has been minimal. The con-cept has taken off through word-of-mouth, which has been picked up by Ukrainian and Russian blogs and websites, all making the con-cept a huge success.
Crown’s European business units have been recognised with two Worldstar packaging awards and a President’s award from the World Packaging Organisation. Crown Food Europe received the prestig-ious award for its Easylift easy-open ends in the food category. The busi-ness unit was also given silver in the ‘best of the best’ President’s award category, where the end was one of only six of the total packaging innovations entered from around the world to be nominated for this further award.
Recognition for Crown EasyliftEasylift easy-open ends offer
improved tab access, while retain-ing the opening performance of Crown’s Eole technology. The gap between the can lid and the tab allows consumers of all ages, including seniors, children and the less able, to easily and quickly open canned food products without using a can opener or other tools.
Crown Speciality Packaging won an award in the beverages cat-egory for the modern container created for Perrier-Jouet Grand Brut champagne. “We are proud to have been recognised with these awards,” comments Chris Homfray, president of Crown Europe. “Both Crown’s Easylift easy-open ends and unique metal packaging designs, such as the Perrier-Jouet tin, can help brands stand out from the shelf and significantly improve the experience consumers have.” with the product.”
AB InBev is bucking the trend of companies suffering during the recession after recording a 52% increase in gross profit for the second quarter of 2009. The increase was on sales of $9.5 billion, much of which is attributable to the acquisition of Anheuser Busch in November. The company also reported 8.2% organic profit growth for the three-month period.
“Our second quarter results built off a strong first quarter performance, despite a more challenging environment char-acterised by generally weaker demand trends,” comments chief executive Carlos Brito.
The development of the company’s Stella Artois brand has increased UK market share despite the overall fall in vol-umes. Latin America North is the one area where beer and soft drinks volumes grew. The firm attributes this growth to new packaging and enhanced mar-keting in the Brazilian market.
“The beer industry, while resil-ient in most of our key markets, is not immune to economic pres-sures,” adds Brito.
AB InBev’s profits riseDigital printing for Ball
World News
8
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CanTech International September/October 2009 9
World News
Rexam has been forced to close one of its Russian can plants. The company is set to cease pro-duction of beverage cans at its Dmitrov plant, near Moscow, as a result of poor market conditions.The decision comes after Rexam acquired Russian beverage can Rostar last year. “Despite poor vol-umes in Russia, the Rostar acquisi-tion is delivering good returns on our investment, and long term growth prospects remain attrac-tive,” says Leslie Van de Walle, Rexam’s chief executive.
The company paid £149 million ($297m) for Rostar at the start of last year. The deal comprised the
Dmitrov plant and a St Petersburg plant capable of rolling out 1.7 billion cans annually.
Rexam’s annual capacity in Russia will be reduced by 1.3 bil-lion cans as a result. It is expect-ed to save the company £20m in 2010. Rexam will relocate the ends line at its Naro Fominsk facil-ity in Russia and the can line will also be redeployed.
“We continuously evaluate our capacity position, particularly true in times of significant market slow-down such as Russia is expe-riencing,” adds Tomas Sjölin, sec-tor director of Rexam beverage can Europe and Asia.
Rexam to close Russian can plant
Research has shown that beer sales across Western Europe fell by more than 4% in the first half of 2009. This is the equivalent of 580 million litres, or more than a bil-lion less UK pints of beer, accord-ing to leading beverage research agency Canadean’s Quarterly Beverage Tracker. Alcoholic drinks, as a whole have not fared much better, while soft and dairy drinks have slipped by around 1%. Hot drinks have fared slightly bet-ter after registering a small rise. In total, overall commercial bever-age consumption has declined by a little over 1%.
One of the reasons for a decline in beer sales is because consum-ers across the region have tight-ened their purse strings by shun-ning bars, pubs and restaurants. Drinkers are increasingly staying at home to entertain family and friends rather than eating out or going to a bar. In contrast, soft drinks volumes have held up rela-tively well. The recession has had an impact on sales in the Horeca
Beer sales decreasing in Western Europe
BWAY Corporation has bought up outstanding shares of Central Can Company. Central Can is a US pro-ducer of rigid general line metal and plastic containers, located in Chicago, Illinois, US and operates one plant producing metal paint and speciality cans, steel pails, and hybrid and all plastic paint cans. The company’s annual sales are approximately $68 million.
“The acquisition of Central Can Company is an important step in meeting our dual path strategic growth objective which includes both add-on acquisitions in our core markets, and ongoing organic initiatives,” comments Ken Roessler, BWAY Corporation’s president and chief executive. The company paid more than $26 million for the com-pany.
BWAY buys Central Can in US
channel but much of this volume has shifted to the supermarkets. Beer in particular has been unable to capitalise on any switch from on to off premise. This is because peo-ple drink less beer when they do not go out as regularly. It is this factor that is believed to have helped the hot drink category to edge forward as people stay at home and drink tea and coffee instead.
Although soft drinks volume may be holding up, this is not the case in value terms as consumers shrink household budgets. The third quarter is the most influential on commercial beverage sales and the perform-ance in July, August and September will dictate the overall performance of the year. Canadean analysts anticipate a marginal improvement in the volume performance of the commercial beverage market as the comparable period; the sec-ond half of 2008 saw the eye of the financial storm. Beer sales are predicted to end the year 3% down, while soft drinks should finish the year only slightly down.
PepsiCo has agreed a deal worth $7.8 billion (£4.6 billion) to buy Pepsi Bottling Group and PepsiAmericas. The company has said it will pay $36.50 per share for Pepsi Bottling and $28.50 per share for PepsiAmericas. That is up from its previous bids of $29.50 per share for Pepsi Bottling and $23.27 per share for PepsiAmericas in April. PepsiCo already owns sizeable stakes in the bottlers, which bottle and distribute its soft drinks.
Buying the bottlers outright will result in consolidation of 80% of Pepsi’s North American beverage volume, which Pepsi said would speed up the decision-making process and eliminate friction points between the companies. Both bot-tlers’ boards of directors approved the buyout, which is expected to create annual savings of $300 mil-lion by 2012.
The company said it expects the deal to add about 15 cents per share to its earnings when the savings are realised in 2012. The acquisition will create one of the largest food and beverage com-panies in the world. “PepsiCo has
had a constructive partnership with PBG and PAS over the past 10 years. While the existing model has served the system well, it is clear that the changing dynamics of the North American liquid refreshment beverage business demand that we create a more flexible, efficient and competitive system that can drive growth across the full range of PepsiCo beverage brands,” com-ments Indra Nooyi, PepsiCo chair-man and chief executive officer.
“The fully integrated beverage business will enable us to bring inno-vative products and packages to market faster, streamline our manu-facturing and distribution systems and react more quickly to changes in the marketplace, much like we do with our food business,” she adds.
“It will also make it easier to lever-age ‘Power of One’ opportunities that involve both our beverage and food offerings, and for PepsiCo to present one face to retail custom-ers. Ultimately it will put us in a much better position to compete and to grow both now and in the years ahead.”
PepsiCo agrees buyout of bottlers
P.6,7,8,9 NEWS�.indd 9 18/9/09 17:41:22
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Bangkok, Th ailand
2008 RATE
S HELD
15-17 NovemberRoyal Orchid Hotel
Bangkok, Th ailandBangkok, Th ailandBangkok, Th ailand
P.20,21 ASIACAN dps.indd 2 20/4/09 12:39:15
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Th e Technical Conference for Suppliers,Can Makers and Fillers in the Asia Pacifi c Region
Can TechINTERNATIONAL
Organised by
Can TechCanTechCanCanTechAsia2009
CanCanCanCanCanCanCanCanCanAsia
CanAsia
CanCanAsia
CanAsia
CanAsia
CanCanAsia
Can2008
RATES HEL
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15-17 NovemberRoyal Orchid Hotel
P.20,21 ASIACAN dps.indd 3 20/4/09 12:39:39
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Conference Preview
September/October 2009 CanTech International
Asia CanTech is the conference and meeting point for can makers and fillers in the Asia Pacific region, providing a high quality setting that maximises the exchange of ideas between global suppliers and key decision makers in the
Asian metal packaging industry. It has quickly become a “must
go to event” on the can making scene.
The two-day conference will give can makers and fillers
access to the newest technologies that reduce costs
while improving efficiency and production flexibility.
It will assemble technical experts from global suppliers and can makers, maximising the channels of
communication between key decision makers in the Asian metal packaging industry and providing
access to the latest in efficient and flexible production technologies. There will be overviews of the
latest trends and developments from major companies and extensive time for informal networking
and discussion.
DestinationThe venue for this year’s AsiaCanTech conference is the Royal Orchid Sheraton Hotel & Towers in
Bangkok at the heart of Asia’s metal packaging industries. The city was chosen as it is a central point
in Asia, a place for all to come together from the various countries in the region.
While Asia is a hugely diverse region in many aspects, strong business development increasingly
depends upon concentrations of expert knowledge in key markets and bringing people together in a
central location is an excellent way to do this. The launch of the ASEAN Free Trade Area has acceler-
ated the positioning of Thailand as the natural centre of the huge Asian market.
Asia CanTech2009 Preview
12
Welcome from the organiserWelcome to our third annual Asia CanTech. With this conference and exhibition, we aim to take the best constituents of other conferences and shows, and produce an optimum package. The technical conference provides for knowledge transfer with presentations aimed at different market segments, and the tabletop exhibition provides an excellent showcase for suppliers in an intimate atmosphere far removed from the resounding vastness of exhibition halls. The keynote speakers will present an overall picture of market trends, developments and future analysis in Asia and globally. The networking opportunities take place in a relaxed but professional environment, in five-star surroundings that only the Far East seems to provide so well.
Keynote speakers include Colin Gillis of Ball Asia-Pacific, who will give a global can market overview and outline Ball’s views on the Asian market. Simon Jennings from Rexam will update the attendees on Rexam’s activities, while Tarun Daga of Tata Tinplate (Corus) will focus on raw materials. Hindustan Tin Works will provide another angle on the market with its position as can maker in one of the largest economies in the world, India. We are privileged to have attracted such distinguished keynote speakers, and we believe that this type of conference continues to provide value and interest to our industry. It brings the industry together for everyone’s advantage. We are looking forward to it enormously.
Neil McRitchie, Publisher, CanTech International
Welcome to our third annual Asia CanTech. With this conference and exhibition, we aim to take the best constituents of other conferences and shows, and produce an optimum package. The technical conference provides for knowledge transfer with presentations aimed at different market segments, and the tabletop exhibition provides an excellent showcase for suppliers in an intimate atmosphere far removed from the resounding vastness of exhibition halls. The keynote speakers will
give a global can market overview and outline Ball’s views on the Asian market. Simon Jennings from Rexam will update the attendees on Rexam’s activities, while Tarun Daga of Tata
Simon Jennings Managing Director of Rexam Asia
Saket Bhatia, Senior VP (Marketing), Hindustan Tin Works
Tarun Daga, Managing Director of Tata Tinplate
Colin Gillis, President of Ball Asia Pacific Limited
Keynote speakers
p12,13 ASIACAN PREV*****.indd 14 21/9/09 11:42:12
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CanTech International September/October 2009
The Thai can marketThailand’s economy is heavily export-dependent with
exports accounting for 60 per cent of its gross domestic
product, which currently stands at $3,000 per capita. The
packaging market – especially packaging machinery and
supplies – is an area of continued growth. There are no
restrictions imposed by the Thai government on equipment
and metal packaging accounts for 15-20 per cent of the
Thai packaging market, split between steel and aluminium.
There are about 100 factories, big and small, that produce
can packaging, boxes, tins, tanks, collapsible tubes for food,
drinks, drugs and house paint packaging. The majority pro-
duce three-piece cans and the country’s canned exports
include fish and fruit, with Thailand being the world’s largest
exporter of canned pineapple at about 700 million cans
exported each year.
Canned fish, particularly canned tuna, is one of the
largest consumers of cans in Thailand, and the volume of
canned seafood products exported has tripled over the last
30 years. Canned tuna still constitutes a large portion of the
canned seafood export industry, but an increasing volume
of seafood is also being exported, in the form of canned
shrimp and canned prawns. The volume of these products
are lower than tuna but the total value of the products are
higher. Canned beverages and canned drinks like Pepsi
and Coca-Cola are popular in Thailand but still compete
with the traditional delivery methods of glass bottles and
more recently plastic packaging. Energy drinks in cans such
as Lipo (Lipovatin), Red Bull and Krathing Daeng are popu-
lar, particularly in the export markets.
VenueLocated in the heart
of Bangkok, the Royal
Orchid Sheraton Hotel
is close to all modes of
transport and lies in a
convenient location. It is
situated on the eastern
bank of the Chao Phraya
(the River of Kings), which
runs through Bangkok.
Specially designed
meeting and confer-
ence facilities will give
delegates plenty of room and high-tech digital equipment
includes four visual screens, LCD video projectors, broad-
band internet and intelligent lighting.
Sunday is registration day and includes a full sit-down
dinner for all delegates. Keynote speeches and
technical presentations run on Monday and Tuesday, with full
simultaneous translations for non-English speakers. The
Exhibition Hall is open on Sunday, Monday and Tuesday
afternoons, offering suppliers the opportunity to display
products and distribute technical information.
PresentationsThe suppliers attending the show are expertly qualified to
address the technical aspects of production, and include
13
Conference Preview
CEOs, vice presidents and technical directors. An expert
view of the raw material market will be given by Tarun Daga,
managing director of Tata Tinplate. Colin Gillis, president of
Ball Asia-Pacific, will provide an overview of the beverage
can market. Other highlights include Pressco’s presentation
on “The Three Most Dangerous Trends in Can Making.”
Tabletop ExhibitionSuppliers from around the globe will be on hand in Bangkok
to showcase products for the can making industry. These
include companies such as Oberg Industries, Applied Vision,
Carnaud MetalBox Engineering, TD Wright, Grace China,
Akzo Nobel, Crabtree of Gateshead, Sellacan GmbH,
Unimaq, AMJ Industries and KBA Metalprint.
VenueLocated in the heart
of Bangkok, the Royal
Orchid Sheraton Hotel
is close to all modes of
transport and lies in a
convenient location. It is
situated on the eastern
bank of the Chao Phraya
(the River of Kings), which
runs through Bangkok.
meeting and confer-
ence facilities will give
AwardsA gala awards dinner will honour the winners of the Asia CanTech Awards 2009.
Judged by a panel of independent industry experts and open to can makers or fillers
of cans and ends sold in Asia, the awards will be presented at the gala dinner on 16
November. Winners will be announced in the following categories:
• Beverage, two-piece • Beverage, three-piece
• Decorative/Speciality • Aerosols
• Food, two-piece • Food, three-piece
• Ends/Caps/Closures • General Line
Entries have come from across the Asian region and include innovations in all
aspects of can making, such as formats, ends and speciality decoration.
p12,13 ASIACAN PREV*****.indd 15 21/9/09 11:42:16
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September/October 2009 CanTech International14
The Can Makers is an organisation where members work together to promote the benefits of the drinks can. Here the chairman of the group, Vince Major, talks to Alec Peachey about how the industry is faring
Mega brands have been driving the sales volume for drinks cans, as consumersrecognise the attributes of the pack ‘‘ ’’
The chairman of the body representing UK manufac-turers of beverage cans and raw materials suppliers, is predicting a bright future for the industry. With empty can shipments to fillers for carbonated soft drinks up by 8.4
per cent for the first half of the year, Vince Major, chairman
of the Can Makers is keen to see this rise continue.
The Can Makers was formed in 1981 and consists
of UK three can manufacturers Crown Bevcan UK, Ball
Packaging Europe and Rexam Beverage Can, together
with suppliers Alcan Rhenalu, Corus Packaging, Hydro
Aluminium, Darex UK, AzkoNobel and Valspar. “We work
together to promote the benefits of drinks cans to the
brewers, soft drinks manufacturers, retailers, the packaging
industry and consumers,” says Major.
The latest figures from the Can Makers show strong
results for empty can shipments to fillers in the January to
July period of 4,233 million cans. This performance is level
with the figures for 2008. While consumers continue to cut
back on their spending during the recession, sales of drinks
cans have remained steady. “Mega brands have been
driving the sales volume for drinks cans, as they recognise
the attributes of this pack type,” Major adds. “Cans are
a convenient size and offer consumers good value and
a refreshing choice, as well as being 100 per cent and
infinitely recyclable. The economics of the can means that
they continue to be popular with brands and consumers
alike, a factor which contributes to a sustained healthy
performance in the market. Forward projections look
robust in this area, which is very encouraging.”
There are also indications that consumers are favouring
carbonated soft drinks as an alternative to more expensive
juice drinks, smoothies and bottled water. Major believes
this is a direct result of the economic downturn. “In times
of recession consumers will inevitably buy products that
represent good value,” he explains. “Juices, smoothies
and water are more expensive options, so there are indi-
cations that the market for these products will have been
impacted by current economic conditions.”
Major has worked in the industry since 1979. He started
out at Metal Box working on the engineering side of the
business before moving into commercial and logistics roles.
He is currently commercial director for Crown in the UK,
Ireland, Benelux and Scandinavia. After joining the Can
Makers in 2004 he became chairman of the organisation in
January this year. “Recent sales data shows that there has
been less impact on volume of sales of cans compared
with other consumer goods sectors, and retail audit figures
show that the markets for carbonated soft drinks, beer and
cider are holding up well,” he states. “We expect that cans
will be in a good position for the upturn, continuing the
historic growth we have seen in this market.”
Sales of beer and soft drinks cans have been helped
by an increase in the number of people drinking at home.
According to statistics provided by analysts Nielsen there
has been growth in sales of cider in cans of 16 per cent
while sales of ale in cans are up by two per cent.
“Reports in the media have indicated that the ‘on-
trade’ is suffering as a result of the recession with a high
number of pub closures as more and more consumers opt
to drink at home in an effort to save money,” Major points
out. “The take-home market is performing well given the
lack of sporting events and the poor weather the UK has
been experiencing this summer. The UK industry is perform-
ing well – our challenge is to keep meeting customers’
demands.”
Going forward, it appears the industry is in good shape.
And with Major at the helm, the Can Makers will be doing
everything it can to make sure things stay that way. “It
is important that we continue to work closely with our
customer base to maximise all the opportunities that are
available to us as an industry in the current market,” he
says. “There is no indication that volume will fall off for
the remainder of the year. The World Cup next year also
presents an opportunity for a strong performance, particu-
larly in lager and cider.”
With that in mind, can makers will be hoping the home
nations don’t go home too early. They’ll also be hoping
that Major’s confident outlook is an accurate one. ❑
A Major attitude
Interview: Vince Major
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CanTech International September/October 2009 15
The website for the metal packaging industry
Featuring ...
■ The Weekly newsletter
■ The Buyer’s Guide online
■ The CanTech noticeboard
■ Details of forthcoming issues
plus ...
■ Advance preview of features
■ Industry hyperlinks
■ Editorial archive
■ Advertising information
■ On-line subscription forms www.cantechonline.com
Can TechON LINE
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September/October 2009 CanTech International
Germany
16
The German metal packaging industry relies on its campaign-ing organisation, VMV. Evert van der Weg reports
Since 1957, the VMV (= Verband Metall Verpackungen) organisation has fought the cause of German metal packaging producers in Düsseldorf. Today VMV rep-resents the interests of approximately 50 metal packaging
companies, with a total yearly turnover of approximately
€1.8 billion and around 10,000 employees. Jörg Höppner
has been general manager of VMV since 2003.
Höppner, educated as a mechanical engineer, is accus-
tomed to promoting the interests of industry. Before com-
ing to the VMV, he worked in representative bodies of
other German industries in Bonn and Berlin, dealing in
particular with environment, emission rights, transport and
quality management.
“I started as the technical liaison officer in the VMV but
when my predecessor Dr. Dieter Meinert left in 2003, I was
asked to become the general manager,” Höppner says.
“I was happy that Nico Tessin, who was previously the
technical liaison officer for the association of German beer
brewers, succeeded me within VMV in my role as technical
coordinator.
“We can really claim we represent the metal packaging
business; around 95 per cent of the German metal pack-
aging producers are members of VMV. Even though there
is a strong tendency of consolidation in many industries,
this is not the rule in our business. There are several quite
successful niche players in the German metal packaging
industry that are not affected by consolidatation. However,
the move towards consolidation of companies in the end
markets of our customers is fairly pronounced.”
The importance of VMVBeverage can producers Rexam and Ball decided
a while ago to terminate their membership of VMV.
“We regret the decision, although beverage cans have
become a rather marginal business in Germany since the
deposit legislation came here into force in 2003,” Höppner
notes. However, things may be changing. “Consumers,
retailers and brand owners recognise the important role
the beverage can used to play in the packaging mar-
ket. The beverage can simply has important advantages
to offer like perfect product protection, good stability
throughout the supply chain as well as cost advantages
during stockage and transport. I think it is justified to
assume that the beverage can will once again have the
usual appearance on the supermarket shelf.”
Network support
The product portfolio of VMV ranges from food cans,
general line cans, aerosol cans to crown corks, twist off
closures and aluminium closures. “There are some unusual
products in our portfolio, such as plastic closures and steel
drums – packages that normally fit into other sectors,” he
notes. “Plastic closure producers like to remain in the VMV
because they may have produced tinplate crown corks in
the past and prefer to retain membership of this well-estab-
lished network. Producers of steel drums are also members
of our organisation because there is a big overlap in
interests and know-how with, for example, producers of
pails and cans for the transportation of hazardous goods.
Subjects like REACH, the European regulation about the
use of chemicals, apply to the producers of both smaller
and bigger steel packages.”
Steel drums also have much in common when it comes
to the registration of emissions of coating and printing
lines, but also when looking at food contact. “Steel drums
are used for the packaging of food products such as feta
cheese and fruit pulps. Within our organisation there are
members who have know-how about these subjects and
others can learn from that,” he points out.
VMV structure
Since its foundation 52 years ago VMV has developed a
structure to organise the active participation of its mem-
bers, by aiming to tackle the many challenges that the
packaging market always presents. “Our organisation in
Düsseldorf consists of three employees including myself,”
Höppner relates. “We have commercial working groups
and technical working groups for the various market seg-
ments, and a board that is composed from representatives
of each of the commercial working groups plus the repre-
sentative of our SME group. Among the technical working
groups there are some that cover the so-called ‘horizontal
themes’ such as food contact or tinplate issues. Moreover
we also have certain ad hoc working groups that are
P.16,17 VMV�.indd 18 18/9/09 17:00:19
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CanTech International September/October 2009
studying RFID and its consequences, hygiene manage-
ment and so forth. The participants from our members are
often a specialist within their own organisation are very
important.”
VMV is connected to other European associations, as
members of the European Metal Packaging Association
EMPAC (the former SEFEL) and the European Steel
Manufacturer Association SEFA. “We try to obtain a kind of
mirror organisation on European and national level as this
facilitates contacts,” he says. “SEFEL had already done a
tremendous lot of good work in many areas. But there was
the feeling that our industry might need to be more active
in the fields of public affairs/lobbying, external affairs and
communication. Therefore the foundation of EMPAC was
the logical consequence in order to renew SEFEL. In the
meantime we have been able to integrate all the good
work SEFEL had done into the EMPAC structure – the techni-
cal standardisation work for example, to obtain European
standards for all cans has been exemplary in the whole
world.”
General line cans
At the recent EMPAC General Assembly in Vienna, the
decision to establish a European General Line working
group was announced. There is a strong German pres-
ence in the group: Thomas Fachinger of the Limburger
Blechwarenfabrik will be the chairman and VMV, with Jörg
Höppner, will supply the secretary for the group.
“This is the first group under the EMPAC structure rep-
resenting only one market and many of the companies
producing metal packaging for general line use have
composed this group – from major enterprises to the
smaller and medium-size firms,” Höppner says. “We are still
setting up our agenda but one thing is certain: it will try to
promote and protect our packaging. I am convinced we
have enough to promote the advantages of our packag-
ing compared to other packaging materials.”
The new task force found that SEFEL has already carried
out good work and produced some documents that are
Germany
17
helpful for the working group. “One important message
from our working group for the outside world will certainly
be: ‘we are the safest package for chemical products’.
What is packed in metal cans will remain a high
quality product. Metal has a 100 per cent barrier
against all gases – there is no diffusion. Metal
is unbreakable, and not only protects the
contents but also the environment.”
The cooperation between EMPAC
as an umbrella organisation and the
national associations will be a huge ben-
efit to the industry when tackling important
issues like the sustainability debate or the risk
of substitution. Particularly in countries with a high
percentage of small and medium sized enterprises
like Germany the national associations offer a useful
platform in order to put some of EMPAC’s visions into action
on a local level.
“We saw at the EMPAC General Assembly that EMPAC is
doing a lot of work on sustainability and the carbon foot-
print. EMPAC has taken on board the TNO research organi-
sation to assess the real figures for metal cans,” Höppner
says. “More and more you hear the popular and much too
simplified question: ‘What is your number?’, but we know this type of analysis is tough work. We took up EMPAC’s
results and key messages and started to publish so-called
‘progress reports’ within VMV, demonstrating what progress
we are making in the metal packaging industry when it
comes to saving resources. We have also launched an
image campaign under the title ‘Thank you for less CO2’,
in which bears and deer thank mankind for the reduction
of emissions that metal cans are enabling. I am sure the
debate about the environment and sustainability, together
with a number of other important issues, will keep us busy in
the coming years!” ❑
Jörg Höppner general manager of VMV
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September/October 2009 CanTech International
TInplate
18
High strength steel with extra formability gives tinplate producer Rasselstein an edge. Evert van der Weg reports
German industry has special connections with tin-plate. In the 14th century, tinplate was originally produced by dipping hammered iron sheets into a bath of molten tin. This method found its way to
Saxony and Bohemia and a flourishing trade developed,
with tinplate exported to many countries. In 1720, England
took over the leading role in tinplate development. Here,
the raw material was hot rolled sheet iron. Together with
other improvements the British manufacturers were able to
produce high quality tinplate and they remained the clear
leaders for over 150 years. When the use of tinplate con-
serve cans began in North America from 1870 on, further
development of tinplate took place there.
But in 1934, a small company in Andernach (near
Koblenz in Germany) made an enormous step forward in
tinplate production, starting the first electrolytic strip tin-
ning line in the world. From then on, Rasselstein added a
number of firsts to its credit:
• in 1955, it started up the first continuous annealing line
in Europe
• In 1966, it started up the first chromium coating line for
production of ECCS/TFS in Europe
• In 1975, the first high-speed vertical-pass annealing
furnace was installed in Europe at Rasselstein.
In 2005, Rasselstein became the world’s largest tinplate
production site by its investments in a huge capacity
increase. The company is now part of the large German
industrial conglomerate ThyssenKrupp.
To demonstrate how forward-looking Rasselstein wants to
be the company organised a ‘Future Symposium’ recently.
(See also CanTech International
May/June 2009 for further report-
ing on this).
Dr. Reiner Sauer, head of
research and development,
has managed the Rasselstein
research efforts to make tinplate
an ever better packaging materi-
al for many years. Sauer says, ‘We
wanted to show how advanced
we are withsome of our top R&D
projects that will result in new tin-
plate products in the near future.
We did not want to present theo-
retical possibilities or projects that
still have a long lead time.”
High Formable
Sauer describes the ‘High
Formable’ project as one of the
main projects at Rasselstein. ”For
several years we have known that
can shapes other than the tradi-
Rasselstein goes full-speed ahead
tional cylindrical shape can help to sell the product and
that such a change of shape really can generate growth,”
he says. “This led us to the decision to change our tinplate
for that purpose to a tinplate type that is completely
adapted in order to fulfill the shaping wishes. Together with
our parent company ThyssenKrupp, our steel supplier, we
developed high formable (HF) tinplate. We have already
supplied some HF tinplate to big customers for testing, and
without exception customers are quite enthusiastic. Many
more customers have approached us since and said they
would also like to test with this material.”
One of the well-known shapes is the tinplate bowl. Frank
Hoffmann of machine producer Biagosch & Brandau,
one of Rasselstein’s partners in the development project,
has called the HF material an enormous step forward. He
found by extensive testing that this material reduces the
deepdrawing of the bowl shaped can, to only one deep-Dr. Reiner Sauer
P.18,19 RASSELSTEIN�.indd 24 18/9/09 17:01:55
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CanTech International September/October 2009
draw instead of four deep-draws required with traditional
tinplate. “The advantage is not only in 40 per cent less
investment in machinery, but also that it can reduce metal
thickness for such a bowl from 0.24mm to 0.15mm using the
new material. There are also big gains in the maintenance
of the tooling, as it is cheaper to maintain one tool than
four tools,” Hoffmann points out.
Flexiline
It is not only a question of replacing old technology with
the change from four to one deep-draws – the cans
can become higher and in general freedom of design is
greater. “I am curious to see how can makers and can
fillers, the brand owners, will exploit these new possibilities,”
Hoffmann says. “There is a lot of enthusiasm for such a high
formability. Some people have said to me that the new
material looks like plastic, its behavior is so flexible. You can
imagine that we aim also to replace aluminium cans with
our new material types.”
Another aspect of formability is also the expansion
rate of the new material, which is more than 40 per cent.
Eighteen months ago Rasselstein presented the Flexiline
concept. “The intention of the programme is to bridge the
gap between high volume production lines for standard
cans and the need to react in a more flexible way to
today’s market demands, e.g. much smaller quantities in
new shapes. On a Flexiline you can produce special can
shapes – not in huge numbers, but if necessary you can
change the line in 20 minutes to another can design.
“We have the ambition to demonstrate unmistakably
that with tinplate cans you are not bound to standard
cans in huge numbers but that you can make individual
can designs in an efficient way. We do have a lot of
design flexibility – our tinplate is simply not a rigid material,”
he points out.
What’s behind HF tinplate
Designing new types of tinplate with different properties is
no small matter. The production of steel, the main compo-
nent of tinplate, is a very capital-intensive process. Huge
machinery processes the steel in consecutive steps to give
it its properties.
Sauer notes that the secret behind HF tinplate is the
steel composition. “When we had defined ourselves what
properties we would ideally need, we had to sit together
with the steel experts from ThyssenKrupp to discuss and
test what steel composition could possibly do the job.
When we obtained the right types of steel we had to think
through our own production process and to optimise it
where necessary to improve the properties,” he notes.
“Today we are able to supply this new HF tinplate type at
industrial levels and our parent company is able to supply
the adequate steel quality. This does not mean that the
development work stopped; we are constantly looking for
further improvements.
“The nice thing about steel is that it is a highly sensitive
material. If you add a small dose of a certain substance
you can change the properties substantially. In our case
there are no negative effects at all on characteristics such
as corrosivity, or suitability for coating and printing.
Rasselstein found out via its customers that there is a
constant wish to downgauge the can tinplate thickness for
all kinds of reasons. For years Rasselstein has had a focused
approach to reach that goal, working closely together
with the Soudronic/Cantec can making machinery group,
the KBA Metalprint coating and printing specialist group,
customers and can makers.
This resulted in the presentation of the 0.10mm can,
with wall thickness of three-piece food cans reduced from
0.12mm to 0.10mm. However, Rasselstein wanted to go
further than just providing extra downgauging. “In the case
of easy open ends, high strength potential and reasonable
elongation of the material is needed,” Sauer says. “To pull
the rivet on which the tear tab is fastened, you need an
elongation rate of approximately 30 per cent, whereas
at the same time high strength tinplate is required. This
strength is decisive for the breaking strength of the score
line and thus for the opening convenience of the end.
High strength and formability
“We are now able to produce high strength and form-
ability tinplate (HSF tinplate) on a small scale, with a tensile
strength of 700 MegaPascal”, Sauer notes. “Tests prove
that easy open ends made with this material open much
easier. The new material also results in a 20 per cent reduc-
tion in opening force. We beat aluminium easy open ends,
which are our point of reference.”
However, it will take another two years before Rasselstein
is able to supply HSF material on an industrial scale. In
order not to lose time the company is already supplying
HSF tinplate to customers. “We are now
testing in parallel with customers and
regularly exchange findings,” he notes.
“Easy open end producers have to
change something in the end design
– they do not get this big improvement
for nothing. In particular they have to
change the end panel, not the scoring
operation.”
Sauer is quite happy about the coop-
eration nowadays between Rasselstein
and its customers, the converters, and
the producers of can making machin-
ery. “It is a relationship of mutual trust
today. When I look back 20 years ago,
the attitude of some can makers was:
Rasselstein, you make good tinplate
and then we will make good cans
with that material. There was a virtual
wall between us,” he says. “Today we
do really learn from each other by our
exchange of experiences so that we
are no longer seen as the exotic steel
guys but as real partners. I can say that
all of our customers have their doors
open for us as they know that we can
make the best progress by working
together.” ❑
Tinplate
19
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September/October 2009 CanTech International
Taiwan
20
Great China Metal Industry of Taiwan is counting on further profits in mainland China. David Hayes reports
With consumption of canned products in Taiwan already at a high level and unlikely to grow much more, competition for the country’s
two-piece and general can markets has
become fiercer over the past decade,
encouraging most local can manufac-
turers to look overseas for new business
growth opportunities.
Several Taiwanese can makers have
set up production facilities in China and
are planning further expansion as can
use continues to grow on the mainland.
Taiwanese can makers also have made or
are considering investments in Southeast
Asia, anticipating further expansion in can
use across the region.
“Taiwan’s can market is small and there
are a lot of can makers here,” comments
Chiang Ching-Yee, chairman of Great
China Metal Industry. “Taiwan’s population
is 23 million and can consumption is less than
two billion cans a year.”
Great China Metal Industry is one of
Taiwan’s leading producers of two- and three-
piece cans. It owns three plants in Taiwan and,
according to Chiang, supplies about one third
of the local two-piece can market.
In addition to its Taiwan operations, Great China also
makes cans in China, and ends In Vietnam. “I am not sure
of the future of Taiwan’s can industry,” Chiang comments.
“The market is over capacity but no one wants to drop out.
It’s difficult to increase business here because our market is
small.” Instead, Great China plans to expand can making
operations in China where it is involved in three factories.
Offshore interestsThe company’s facilities in Taiwan
are located in the northern and cen-
tral regions. The Miaoli plant has three
two-piece can lines, a DRD steel can
line and machinery to make PET
bottle closures. The Taipei factory
has three three-piece lines, while
the Taoyuan plant produces can
ends and PET bottles. Printing facili-
ties include two two-colour printing
machines.
“We produce 600 million two-
piece cans a year in Taiwan, which
amounts to a 34 per cent market
share. About 20 per cent of this is
stubby cans,” Chiang says. Great
China’s high speed 1,600 cpm line
produces 350ml two-piece cans
while the Miaoli plant’s 1,200 cpm
line is used for 250ml stubby cans.
The company’s other two-piece line
is slower and runs at 500 cpm making
500ml cans, although the line is also
designed to make one-litre cans.
“We have a one-litre mould on
the 500ml can line, so it’s a swing
line,” Chiang explains. “We used to
supply one-litre cans for juices, but juice
fillers are interested in 32oz cans now, which are a
little less than a litre.” Competition is also keen from the PET
bottles, he notes.
Major customers for the popular 350ml two-piece can
size include local drinks fillers Vitalon and Hey Song, the
latter supplying a beverage range that includes the popu-
lar Hey Song Sasparilla. Other customers include Coca-
Cola (Zero) and Nestlé (Milo).
Beer cans are another important two-piece market.
Great China supplies Taiwan Beer Company with 350ml
and 500ml two-piece cans as well as its newly arrived com-
petitor, Tsingtao of China, which has opened a brewery in
southern Taiwan. Empty one-litre cans are exported to San
Miguel for filling at its breweries in the Philippines and Hong
Kong. Plans are afoot to begin supplying Taiwan Beer with
one-litre size cans as well. The filler plans to install a one-litre
filling and closing line by the end of 2009.
Food and general line cans
Taiwan’s food canning industry has changed greatly since
the early 1990s. Mushrooms, asparagus and pineapples
were grown for the formerly large food canning industry.
However, production has moved to China and countries
in Southeast Asia, where low cost farm labour is more
easily available and costs lower. “We supply 50 million
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CanTech International September/October 2009
sanitary cans a year to the Taiwan market. Food canning
is becoming smaller as there is a lot of frozen food avail-
able,” Chiang comments. “Most food canning in Taiwan is
for local consumption but there is some export of special
local Taiwanese food products to the Chinese consumer
market in the US and to Europe.”
As for the company’s general can manufacturing oper-
ation, Chiang says the firm has three lines installed to make
401, 502 and 603 cans. “We supply Nestlé and Quaker Oats
with 502 and 603 general cans, and confectionery cans
are shipped to Morinaga for filling with milk sweets,” he
notes. The Miaoli plant has a single press installed to make
two-piece DRD food cans, which are used for processed
fish and meat sauce products.
Ends are produced in the Taoyuan plant. “We have a
lot of can end capacity in Taiwan so we export some to
Southeast Asia including the Philippines (Central Canand
San Miguel) as well as Central America,” Chiang says.
New plants in China
The company’s newest venture is Chongqing United Can
Co, a joint venture plant set up with Toyo Seikan of Japan,
located in the city of Chongqing in western China.
Established early in 2008, the plant is equipped with a
reconditioned line capable of producing 1,200 cpm that
Toyo Seiken supplied from one of its factories in Japan.
The Chongqing plant produces 350ml two-piece cans
for carbonated drinks and beer. “The carbonated drinks
market in western China still has a way to go,” Chiang
observes. “Transport is expensive in China. That’s why we
are established in Chongqing. Delivery is up to 1,000km for
our cans but Chongqing is nearer to this market than sup-
plying cans from our Shanghai or Hwadong plants. There
are many new drinks companies in the Chongqing area
including Pepsi Cola and Coca-Cola; also, many small
Chinese breweries.”
The Hwadong United Can plant was the first can plant
that Great China helped establish in China. Located near
Nanjing in Jiangsu Province, the Hwadong plant is pri-
vately owned by the founding family of Great China Metal
Industry. Opened in 1991, it has two two-piece can lines
with the combined capacity to produce one billion cans
per year. In October 2008, the plant relocated to a new
factory in Hwadong City.
Great China’s other can plant in China is the wholly-
owned Shanghai United Can facility. Opened in the
mid-1990s, it has a single two-piece can making line
designed to make 700 million cans per year. According
to Chiang, with the former Hwadong plant in production
for just nine months last year, the three plants in China
produced 1.5 billion two-piece cans, while production
in Taiwan was 600 million cans – a combined total of 2.1
billion cans.
Meanwhile, Great China and the company’s founding
family are planning to open two new two-piece plants,
one in the south and one in the north of China. “Toyo
Seikan wants to open a can making plant in Guangdong
Province in southern China. We have already discussed
joining them with some shareholding,” Chiang says. “They
Taiwan
21
are a big company and have studied China as they also
have a plastic container business for cosmetics.”
The new plant will be built in Foshan, a growing industrial
city. Construction work is due to start in the third quarter
this year with completion targeted for March 2010, in time
for production to begin around mid-year. “The first line
in Foshan will be a TULC line to offer different products,”
Chiang remarks. “Kirin and Asahi breweries of Japan and
other planned customers already are in Guangdong
Province. They want the same aluminium cans they receive
in Japan. We are interested in TULC and laminates to help
the environment.”
Elsewhere, in northern Shandong Province, Great China
is planning to open a plant and two two-piece lines capa-
ble of producing 3,000 cans per minute were recently
purchased from Rexam in the US, according to Chiang.
“Shandong is China’s most populous province with about
100 million inhabitants. The province’s GDP is the largest in
China. We hope to open the new plant in mid-2010.”
Headquarters in Taipei
Although the Chinese plants produce almost three times
the volume of two-piece cans that Great China manu-
factures in Taiwan, the company will continue to maintain
its headquarters in Taipei. “We are listed on Taipei Stock
Exchange,” Chiang explains. “We have the R&D depart-
ment here and a machine shop for tooling and repairs.
We give a lot of support to our factories in China from
Taiwan.”
The company is interested in business opportunities in
Vietnam, but considers the current overcapacity to be too
great to build a new plant at present. Expanding in China
will remain the main focus over the next year or two. “Our
business in China will stay mostly in two-piece cans. At
present we have US$300 million annual total sales in Taiwan
and China,” Chiang says. “The future is bright in China. If
every family puts one case of canned drinks a year in each
of China’s 200 million fridges then only one case already is
a market of five billion cans a year.” ❑
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September/October 2009 CanTech International
Philippines
22
Things are looking up for Filipino can makers. David Hayes interviews Henry Tanedo, president of the Tin Can Makers’ Association of the Philippines
Bucking the trend of most local industries in the global economic crisis, the Philippines tin can manufactur-ing industry has instead experienced a long awaited rise in orders during the past 18 months. Lower tinplate
prices have generated additional business for most of the
country’s three-piece can makers, encouraging some to
expand production capacity.
After suffering the effects of high tinplate prices in
recent years and tough competition from other packag-
ing materials, can makers have seen orders pick up again
from the food industry and general can customers. Can
manufacturers are continuing efforts to upgrade can qual-
ity while holding prices at a level that is competitive with
plastic and other alternative packaging materials.
“Tin can production was up in 2008, with 65-70 per
cent of output being food cans and 30-35 per cent being
general line cans,” says Henry Tanedo, president of the
Tin Can Makers Association of the Philippines. “Tuna can
exports went up by 40 per cent last year because there
was more tuna canning by some companies, but that was
not the case for the whole of the Philippines tuna canning
industry.”
The growth in Philippine tin can production last year is
based on import figures for tinplate, most of which is used
for can production. Imports rose around six per cent in
2008 to an estimated 295,000 metric tons (mt) compared
with 279,000 mt the previous year. The increase resulted
from a rise in tinplate tonnage arriving through the Port of
Manila, which receives about 75 per cent of the country’s
tinplate imports.
“Our members say the outlook for them is better in 2009,”
Tanedo says. “However, we expect the increase in produc-
tion will taper off as most of the increased tinplate imports
were used up by April. So the total tonnage used for can
making in 2008 and 2009 will be equal,” Tanedo says. “The
outlook for the industry is positive. Even with the current
Price levels keep cans on top
economic crisis, the tin can overall is still the most effective
packaging for food.”
Expansion has come through streamlining existing lines
rather than adding new ones, he points out. “There was an
expansion in can making in 2008, mostly an upgrading in
general and sanitary cans production. Most have been to
automate can lines and to reduce worker numbers.”
In addition to lower tinplate prices, the government
has provided support, following requests for assistance
in lowering costs such as energy prices, which are high
compared with other countries in Southeast Asia.
“For the can industry’s advantage we were granted zero
import tax on TFS, which can be imported tax free from
Japan as of November 2008 under the Japan-Philippines
Economic Partnership Agreement,” Tanedo says. “Also, the
peso exchange rate is 47 to the US dollar, which is help-
ing by dropping the tinplate import price by $300 per ton
which makes the cost of doing business lower.”
In addition to lower tinplate prices, can makers have
passed on cost savings to customers by down gauging,
while still supplying high quality cans. “Down gauging has
been implemented to reduce costs for manufacturers.
Thinner materials are being used but this in no way reduces
the tin can integrity. In fact, the performance has been
improved in some cases,” Tanedo notes. “Thinner cans
mean that more cans are produced per metric ton of
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CanTech International September/October 2009
tinplate. With this reduction in costs prices become com-
petitive with other types of packaging.”
One can that has been down gauged is the com-
mon 202mm diameter can used for sardines and cooked
meat. The 202 previously was made mostly with 0.20mm
and 0.21mm gauge tinplate. Many can makers have now
changed to 0.16 and 0.17mm gauge tinplate for sardine
cans, of which about 650 million cans are made each year.
Production of sardine and meat cans has increased by 20
per cent in the past year.
Fishy business
About 70 per cent of 202 size cans produced in the
Philippines are used for fish canning while the rest are used
for cooked meat and other products. Lower can prices
have resulted in more companies deciding to sell canned
sardines, a popular food choice throughout the country.
Sardine canning is concentrated in the fish port city of
General Santos in Mindanao in the southern Philippines,
which also is the country’s tuna canning centre. Prices are
politically sensitive owing to the sardine’s status as a staple
food item in the diet of many low income Filipinos.
When tinplate prices were high recently, the govern-
ment encouraged sardine packers to look for cheaper
packing materials as the prices of canned sardines were
rising above an affordable level for low income groups due
to increases in can costs.
“The government asked fish packers to use aluminium
pouches when tinplate prices were going up as tinplate
is 70 per cent of the fish can production cost,” Tanedo
says. “However, for the common 110g pack size, a can
has a shelf life of two years while an aluminium pouch
pack has a shelf life of six months. If aluminium pouches
were profitable then investors
would have been interested,
but the idea never got off the
ground. Also, the contents of
aluminium pouches break up
with handling.”
While most sardines are
canned for domestic consump-
tion, the tuna canning industry
is largely focused on exports.
Most tuna is filled in two-piece
and three-piece 307mm diam-
eter cans which account for
about 60 per cent of the total
tuna can market.
Members
The Tin Can Makers Association
estimates there are about 28
tin can manufacturers through-
out the country. The association has 33 full and associate
members, of which 20 are can manufacturers – of these 12
operate general can lines and eight make sanitary cans.
San Miguel Corporation, which owns what is believed
to be the Philippines’ only two-piece aluminium can line,
also produces steel cans for its own food and beverage
divisions.
Dole and Del Monte of the US also produce cans but are
not association members. The two companies both have
large export-orientated fruit, vegetable and juice produc-
tion operations in Mindanao in the south. Each have about
four or five can making lines and consume about 2,000 mt
of tinplate a month.❑
Philippines
23
Philcan Industrial – customers see the benefits of steel
As well as being president of the Tin Can Makers
Association, Henry Tanedo is president and CEO of
Philcan Industrial Corporation, the first ISO 2000-9001
accredited can making, can filling and can body print-
ing company in the Philippines. Philcan runs 16 can man-
ufacturing lines in its Manila factory and three lines in its
Cebu plant in the central Visayas region. In addition the
company has one coating and three printing lines in the
Manila plant, each designed for single colour printing.
Philcan employs 240 staff in Manila and 25 in Cebu,
which produces 17kg cooking oil cans, four-litre round
and rectangular paint cans along with smaller sizes. The
company set up production in Cebu as it is more eco-
nomical to ship flat plate there than to ship empty cans
for local distribution in central Philippines.
“Printed can designs are becoming more complicated
in fewer colours. People are trying to reduce costs by
reducing the numbers of colours used,” Tanedo says. “Our
company will upgrade our printing operations as last year
we purchased two paint can lines from China to make
one-litre and four-litre paint can sizes.”
Although plastic packaging provides continuous
competition, some Philcan customers have increased
three-piece can use recently due to specific advantages
that tinplate offers. The market for tinplate biscuit and
cookie containers is one that has picked up recently.
Tanedo explains: “Regular 7in by 7in biscuit cans
decorated with five or six colour printing started to switch
to plastic containers but the biscuit contents are not
as crispy. Some biscuit companies have started shifting
back to tinplate containers, especially to the five gallon
biscuit cans. We see a movement back.”
Ice cream is another food product where tinplate has
shown to be a more practical packaging material than
plastic. “Philcan client Arce Ice Cream tried using plastic
containers in a cost cutting exercise after using tinplate
cans,” Tanedo says. “However, the company discovered
that supermarket freezer cabinets have to be kept colder
when ice cream is packed in plastic containers than
when tinplate containers are used.”
Problems arose as many supermarkets cut power costs
at night by using higher freezer temperature settings,
causing quality problems when the ice cream refreezes
at the colder daytime temperature sett