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Can TechINTE RNAT I ONA L

SEPTEMBER/OCTOBER 2009

Asia CanTechPhilippines

InterviewAndré Balbi

Supplier Profile

2009

COVER SEP-OCT09.indd 1 18/9/09 16:29:34

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

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TATA.indd 18 21/9/09 09:30:28

September/October 2009 Contents


ContentsSeptember/October 2009

Volume 17, Number 1

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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

P.5 INTROCONTENTS��.indd 5 21/9/09 11:18:13

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

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


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

P.6,7,8,9 NEWS�.indd 8 18/9/09 17:41:20


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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Conference Preview


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


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

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

P.14 CANMAKERS�.indd 14 18/9/09 16:50:32


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

P.15-Rushserve, CT online.indd 99 12/10/09 10:48:28


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


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

P.16,17 VMV�.indd 19 18/9/09 17:00:20


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


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

P.18,19 RASSELSTEIN�.indd 25 18/9/09 17:02:02


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

P.20,21 TAIWAN�.indd 22 18/9/09 17:04:22


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.” ❑

P.20,21 TAIWAN�.indd 23 18/9/09 17:04:25


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

P.22,23 PHILIPPINES�.indd 24 18/9/09 17:07:05


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

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