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Where others have fallen, Nampak Bevcan has continued to flourish. This is thanks to an unrelenting commitment to product quality and customer satisfaction, in spite of economic constraints and a lack of infrastructure across Africa Writer Chris Davies Project Manager Ben Wigger

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ince its inception over fifty years ago, Nampak Bevcan has successfully been manufacturing and supplying beverage cans across South Africa. throughout this prosperous existence, the company’s footprint has gradually grown to include surrounding markets such as Namibia, Botswana, Zimbabwe and mozambique. the packaging company reported an 11 per cent increase in group revenue to R18.3 billion for the year ending September 2013. operating profit from continuing operations increased eight percent to R1.9 billion and the group reported headline earnings per share of 217.5c, up from 201.0c a year ago. Nampak said trading income from Africa rose 60 percent to R506 million largely thanks to strong performance in its Angolabased beverage can manufacturing facility, which operated at abovedesign capacity for the majority of the year, as well as its kenyan food can operation, which benefitted from a good pineapple crop. In November 2013, Nampak announced that it was set to buy Alucan Packaging, a Nigerian beverage can manufacturer, in a deal worth $301 million. In a statement Nampak said the Alucan factory is equipped with “a brand new, state-of-the-art aluminium beverage can line” capable of producing up to “one billion cans per annum”. It has also been designed and constructed to “accommodate a second line once demand exceeds the current capacity”. Nampak’s CEo, Andrew marshall said, ”This acquisition will significantly increase Nampak’s presence in Nigeria which is Africa’s second largest economy and where we already manufacture food and general cans in our factory in lagos and cigarette cartons, food cartons and labels at our factory in Ibadan, 120 kilometres

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north of lagos.” Alucan Packaging is situated in the Agbara industrial area which Nampak said was “an ideal location” close to lagos and to major beverage producing customers as well as having “a reliable source of gas which will be used for heating and power generation”. “Beverage can manufacturing is one of Nampak’s core businesses with factories in South Africa and Angola,” said marshall. “Nigeria with a population of over 150 million people has experienced good growth in demand for beverage cans and this is expected to continue. Plastic packaging is also a core business with factories throughout the African continent and the united kingdom. “this acquisition and the potential to acquire the plastics company will further contribute to our stated growth strategy in the rest of Africa, where we currently operate in 12 countries generating R2.5 billion in annual revenue and almost 30 percent of our trading profit.”

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The packing company reported an 11 per cent increase in group revenue to R18.3 billion for the year ending September 2013”


PPG

Industries, the largest Coatings Company worldwide, is a leader in its markets, a streamlined and efficient manufacturer and operates on the leading edge of new technologies and solutions. With more than 125 years of existence, PPG is today a global coatings and specialty products manufacturer with over 80% of our $15,1billion sales in 2013 generated by our coatings activity. Strengthening the commitment to this sector, PPG went through multiple acquisitions in recent years, the most significant in EMEA being the Ameron acquisition in 2006, Sigma Kalon in 2008, Dyrup in 2012 and Akzo’s North American Architectural business in 2013. They provided access to new market sectors in EMEA in Architectural, Marine and Protective coatings and increased our presence in Automotive, Refinish, Industrial, Aerospace and Packaging coatings businesses. It is our vision to continue being the world’s leading coatings and specialty products and services company, serving customers in construction, consumer products, industrial and transportation markets and aftermarkets. PPG has manufacturing facilities and equity affiliates in more than 60 countries around the globe.

Not only that, PPG is one of the world’s leading producers of packaging coatings. We supply innovative, highperformance products for virtually every end-use. The metal packaging industry is becoming increasingly innovative. New shapes, novelty printing and distinctive decoration help brand-owners’ products stand out on the shelves. To make this happen, PPG Packaging Coatings is constantly adapting and developing coatings to be versatile, easy to apply, reliable and to achieve outstanding appearance. PPG Packaging Coatings operates in Europe, Africa, Asia, Australasia and on the American continent. Our corporate R&D centre is located in Alison Park, Pennsylvania where chemists dedicated to the Packaging business focus on long-term projects. Our development laboratories are located around the world to respond to local market needs. PPG Packaging Coatings’ products and services offer a complete range of solutions for the Beer & Beverage cans and easy-open-ends, food cans, aerosols cans, tubes, general line cans and drums, caps and closures and peel-ends markets. Our product portfolio comprises technologies for both aluminium and steel substrates,

encompassing both internal & external coatings with products that combine superior performance at value-added costs. Also included are coatings designed for plastic tubes made for thermal and UV curing, combined with all the relevant application processes. Since PPG Coatings South Africa has a unique manufacturing facility in Alrode, Johannesburg, we are well positioned for local value-add to PPG’s global cutting edge technologies. Our local access to PPG’s global research network and quality approach coupled with our local infrastructure and support makes PPG an essential business partner. PPG Coatings South Africa has successfully supplied Bevcan with external decorations for the 2PC Beer and Beverage can for more than the past decade. We are well positioned to support the Beverage market with all their internal and external coating and Ink requirements. With PPG’s highly skilled technical teams PPG supports their customers with quality systems, inventory management and enhancing the overall integrity of their cans. Tel +27 11 389 4600 / +27 82 880 9029 Fax +27 11 389 4755 Email russellels@ppg.com www.ppg.com


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Nigeria with a population of over 150 million people has experienced good growth in demand for beverage cans and this is expected to continue”

Not content with this regional dominance, Nampak Bevcan continued to expand further up the continent. today, the business aspires to be “the preferred supplier of beverage packaging in sub-Saharan Africa,” says Erik Smuts, managing Director of Nampak Bevcan. Although this might sound like an ambitious statement, recent developments mean this target might become a reality. “We have built a plant in Angola, which has been operating for just over two years,” Smuts continues. “We are also busy installing a second production line here, which will happen during this year. We have also acquired a business in Nigeria, which is not concluded yet, but should go ahead in the first quarter of 2014. As there will be a lot of focus getting this business up and running, it is an exciting time ahead for my team.”

HUlAMin liMiTEd

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ulamin limited is a leading mid- stream aluminium semifabricator and fabricator located in Pietermaritzburg, kwaZulu-Natal and midrand, gauteng supported by Sales offices in South Africa, Europe and the united States. Hulamin with its state of the art modern facilities has established a reputation globally and a track record for supplying quality products backed by excellent service. Hulamin also partners with customers for unique product and technical solutions. Hulamin’s partnership with Nampak/ Bevcan allows for the establishment of an efficient end-to-end supply chain through continuous improvement projects and waste elimination. Hulamin’s supply of industry leading and unique specifications allows for maximum light-weighting of cans and efficient can manufacture. the Can maker’s process scrap and used Beverage Cans (uBCs) will be recycled back into cans, deriving the full environmental benefit from the aluminium can. Firmly rooted in Africa, Hulamin values the potential regional socioeconomic benefits of this change to aluminium cans. Hulamin looks forward to a long term role alongside Nampak/Bevcan in the regional supply of aluminium can stock in Africa. Physical Address: moses mabhida Road, (previously Edendale Road), Pietermaritzburg Postal Address: Po Box 74, Pietermaritzburg, 3200, South Africa Tel +27 (0)33 395 6911 Fax: +27 (0)33 394 6335

www.hulamin.co.za

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Nature’s answer to efficient engineering When it comes to packaging your product, as in nature, efficient engineering is not just a nice-to-have. It’s an essential. Nobody knows this better than Hulamin. Offering every kind of aluminium solution, we’ve devoted decades to harnessing aluminium’s incredible properties. Lightweight, 100% recyclable and remarkable at keeping contents fresh over extensive periods without the use of refrigeration, there’s no better packaging partner than Hulamin aluminium. With our wide range of aluminium packaging solutions (from flexible foils to beverage cans and bottle closures), let us fit around your needs and product (whatever they may be) to create the ideal packaging solution. hulamin.co.za

Think Future. Think Aluminium. Think Hulamin.

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QUAKEr CHEMiCAl CorPorATion Committed to Can: Quaker Chemical, a leading global provider of process fluids, chemical specialties, services, and technical expertise is a valuable partner in not only reducing costs but also improving your operations at a local level, for everything from cupping and bodymaking to cleaning and necking. Whether it is aluminum or tinplate, Quaker has innovative, integrated process solutions and superior service to optimize your operations, increase profitability and realize further success. Innovative Offerings for: Alkaline or Acid Cleaning of Aluminum and Steel Cans – unique QuAklEEN® and QuAklEEN tuRBo® cleaners, Washtreat conversion coatings and Washflow mobility enhancers Aluminum and Steel Cupping and Bodymaking – High performance QuAkERol® lubricants, biostable coolants and coil prelubes Bottle Can Necking – Quality Food grade lubricants like QuAkERol® BCl-4 and BCl-9 tab Forming – lubricants such as low VoC tAB luBE™ 2000 H1 compliance for food contact - low and high viscosity pin chain lubes such as QuAkERol® PCl-Fg Key Benefits Application Support Reduce Tear-Off and Spoilage Rates – Improve efficiency for less rework and rejects

We have built a plant in Angola, which has been operating for just over two years”

Reduce usage, maintenance and Applied Costs minimize Environmental Impact with 100% biostable coolants and formulated biodegradable cleaners Quaker Chemical Corporation 901 E Hector St. Conshohocken, Pennsylvania, 19428 Key Personnel: global Can Industry manager John Booker Email: bookerj@quakerchem.com Tel: +44.7785.350751 www.quakerchem.com

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INNOVATIVE CAN MANUFACTURING FLUID SOLUTIONS FROM QUAKER Can manufacturing means more than a simple production line. There are lubricants, cleaners, coolants, and that is just the beginning. You’ve got to constantly monitor and maintain your machinery, processes and workforce. So you need a partner with the products and expertise to get things running and keep them running at their best – front to back, with you at each step. That’s why you need Quaker. No challenge is too big for relentless innovation, hard work and a sincere desire to help you maximize your productivity and improve your bottom line. It’s our obsession and inside everything we do. Because at the heart of the can manufacturing industry, you’ll find us. It’s what’s inside that counts.® quakerchem.com

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Gaining an Upper Hand

Although continued growth across Africa will undoubtedly give Nampak Bevcan a distinct competitive advantage over manufacturing alternatives, the company has several other strengths to call upon. “We have proved in South Africa, where we do not always have ideal conditions to operate, that we manage to work with what is available,” explains Smuts. “Despite our successes, we have huge respect for the other global can makers, and we know that we will have to be at our best in order to defend our position.” This resolute and determined trait has put Nampak Bevcan in good stead for its Angolan operation as Smuts explains: “We operate in a place where there is very little infrastructure. We generate our own electricity and tanker in all of the water we require. But we are used to operating in areas where it is tough and you can’t always rely on external service providers other facilities or suppliers. “That is key to our competitive nature and we intend to drive this further to make sure we become even more successful in these areas.”

Proline Engineering Ltd

P

roline Engineering Ltd Offer complete product handling systems. We design, build and install conveying systems to optimize productivity and exceed our customers’ expectations.

We have proved in South Africa, where we do not always have ideal conditions to operate, that we manage to work with what is available”

Our team of 50+ employees operate worldwide to ensure quality of service and backup and our design team employ proven technical knowledge and experience that we have developed over 20 years. We are experienced in the logistics of working in over 60 countries around the globe. We have manufacturing partners and suppliers around the world that enable us to react quickly to customers’ needs. In 2011 Proline supplied and installed conveying equipment for Nampak Bevcan’s Luanda, Angola steel beverage can line capable of producing 750 million cans a year. Since 2012 Proline has again been working with Nampak Bevcan to manufacturer and install three aluminium beverage can lines at their Springs Nuffield plant in South Africa capable of producing nine different can sizes at speeds of up to 3000 cans per minute. February 2014 Proline will relocate to new premises in Manchester England. The 8500m2 site will enable us to bring our departments under one roof, expand our team, improve efficiency and better serve our customers.

Proline Engineering Ltd 29 Shield Drive Wardley Business Park Worsley Manchester M28 2QB United Kingdom Tel +44 (0) 161 7942738 Email mail@proline-eng.co.uk www.proline-eng.co.uk

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noVEliS MEA lTd

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ovelis is the world’s premier producer of rolled aluminum and the global leader in aluminum recycling. our unique combination of advanced technology, superior expertise and global footprint allows us to reliably meet the needs of our customers wherever they operate. Novelis is the largest single producer of aluminum rolled products with an estimated 14% of the world’s supply. We focus our expertise on the most demanding segments of the rolled aluminum market – can, automotive, consumer electronics and architecture – which uniquely positions Novelis as the partner of choice for new product innovation. In response to the growing demand for rolled aluminum in our premium markets, Novelis has invested more than $1.7 billion in global expansions in the past three years.

But what makes us different is our strong relationships with customers, good service and a competitive offering”

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Despite the operational difficulties in Africa, Smuts believes that Nampak Bevcan has managed to position itself in line with some of the industry’s biggest beverage can manufacturers. “In South Africa we are more competitive in our pricing than Europe and many other developed countries in the world,” he reveals. “But what makes us different is our strong relationships with customers, good service and a competitive offering. our adventurous nature and an aggressive cost reduction attitude are also strong characteristics.”

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As the leading low-carbon aluminum maker, we offer our customers the ability to make products with a smaller environmental footprint. our objective to reach 80% recycled metal input across our products by the year 2020 is a key component of our strategy. Based in Dubai, Novelis mEA ltd delivers premium material solutions and technical services to our customers in the middle East, Africa and India. Tel +971 (4) 3760 700 Fax +971 (4) 3760 701 Email helio.lima@novelis.com

www.novelis.com


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Not just aluminum, Novelis Aluminum.

TM

Novelis is the global leader in aluminum rolled products and the world's largest recycler of aluminum. We operate in nine countries, have approximately 11,000 employees. Drawing on our expertise, commitment to innovation and world-leading technology, we deliver sustainable solutions for the most demanding applications, including automobiles, architecture, beverage cans and consumer electronics.

novelis.com

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Staying Ahead of the game

Regardless of its current market position, there is no time to stand still at Nampak Bevcan, as the company continually looks to improve and enhance day-to-day activities. “In South Africa, we used to exclusively produce tinplate beverage cans, but have started a conversion to aluminium in the last year,” cites Smuts. “The first part was to install a new high speed aluminium line at our Springs facility. We have also converted a steel line to aluminium, with another line to follow.”

we used to exclusively produce tinplate beverage cans, but have started a conversion to aluminium in the last year”

TrAnSnATionAl FrEiGHTlinK SErViCE EXCEllEnCE - Customer expectations are met by a trained team of operation experts based at various Bevcan sites throughout the country as well as Head Office. innoVATion - Vehicle design is specific to Bevcan’s application. CoMMiTMEnT - the Directors and staff drive the business with passion; so as to ensure customer needs are met at all levels. STrATEGiC AdVAnTAGES - most productive and efficient operations on offer. FooT PrinT – Nationally and within the SADC region. STAFF dEVEloPMEnT – on going training is key to our success and sustainability. Tel +(011)646 1965

www.freightlink.co.za

UTi WorldWidE

u

ti Worldwide Inc. is an international, non-assetbased supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management and consulting services. uti’s purpose is to deliver competitive advantage to each of its clients’ supply chains and aims to be the market leader in client centricity. this is achieved through the long-term relationships their expert logistics teams build with clients, and the passion and dedication with which they configure end-to-end supply chain solutions for industries such as Automotive, Banking, Hi-tech, mining, Retail and Pharmaceutical. Tel 0861 462884

www.go2uti.com

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FIND OUT MORE ON OUR WEBSITE

www.freightlink.co.za “We are proud of our history and association with Nampak Bevcan, since 1991” TRANSNATIONAL FREIGHTLINK (PTY) LTD. P.O.BOX 84415, GREENSIDE,2034 TEL:+27(0)11646-1965 FAX: +27(0)11646-0831. 98 GREENWAY ROAD, GREENSIDE, 2146 DIRECTORS: R M INGRAM. M ROERING. COMPANY REG NO: 1991/05721/07 VAT REGISTRATION NO: 4690121605

Platinum Logistics Achiever Award Winner 2009, 2010, 2013 Gold Logistics Achiever Award Winner 2013 Silver Logistics Achiever Award Winner 2012, 2012, 2013

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The overall carbon footprint of the business is coming down rapidly and we have very aggressive targets going forward to reduce this even further”

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In addition to keeping up with global trends, there were three main reasons behind this move – technological advances, customer demand and the environmental benefits. “The cans in the international market are mostly made from aluminium and our customers also required us to move over to aluminium can-making and, therefore, our whole move is really customer driven,” notes Corrie Botha, general manager at Nampak Bevcan. For Smuts, this latest move will go a long way to improving the recycling rate of beverage cans across South Africa. In fact, Smuts believes that South Africa can achieve levels similar to that of Brazil, which currently has a collection rate of over 98 per cent. “We have a sister company called CollectA-Can, which is a partnership between Arcelormittal and Nampak, who we are using to facilitate the collection of cans,” he says. “the recycling rate we have achieved in South Africa for

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MB loGiSTiCS mB logistics, Imperial group, seeks to establish collaborative partnerships in pursuit of innovative supply chain strategies that can keep abreast of changes to the client’s specific operating landscape It starts with in depth needs analyses and once requirements understood, business priorities are clarified with the commonly identified solutions accepted, and documented in SlA’s the operating Procedures developed are backed up with ISO process flows Continuous process improvements are created through the strict management of kPI’s and SoP’s this business process is supported by EDI, dedicated Professionals and Advanced Admin Systems Economy of scale is delivered through a worldwide representation network Tel +(27) 31 274 9200 Email graham.Howard@mblogistics.co.za


M a n u f a c t u r i n g

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used beverage cans is over 72 per cent, which is the highest collection level for any beverage packaging format in Southern Africa, so we are very proud of this achievement. But with the introduction of aluminium beverage cans, which have a higher intrinsic value, we expect that collection rate to increase.”

CArnAUd METAl BoX

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ith CmB Engineering, you can be confident that our combination of long-standing expertise spanning almost a century, highly innovative technologies, and insight into the modern challenges of canmaking will result in a machine or line that meets your exact specifications. From our bestselling die sets to our bodymaker, trimmers, decorators, inside spray machines, neckers, and seamers, CmB Engineering harnesses the latest technology to meet our customers’ needs. Whether you need a single machine or an entire line, we can help. our belief in partnership and collaboration runs through everything that we do, and our in-depth understanding of canmakers’ needs, today and in the future, means that we can provide tailored canmaking solutions. Because CmB Engineering’s machines are designed for seamless integration, they can interface with other machinery at any point of the canmaking process and enhance the overall efficiency of your line. “At CmB Engineering, we don’t just sell machines, we partner with our customers, supporting them through quality, engineering excellence, innovation and advanced services. our aim is to ensure that we continue meeting and anticipating our customers’ demands, supporting them with excellent spares and services, throughout the lifecycle of the machines.” Andrew truelove, general manager.

www.cmbecanmaking.com

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GrEEnBAnK TECHnoloGY innovation in Thermal Process Engineering greenbank technology is the market leader in the design, development and manufacture of “two Piece Can making ovens” to the industry worldwide, with over 300 ovens in 31 countries manufactured and supplied in the last 12 years alone. the comprehensive range of IBo’s – Pin ovens, Washer Dryer ovens have revolutionised industry standards and has stepped “outside the ordinary” in manufacturing quality standard. greenbank has been a major supplier of ovens to Nampak South Africa over many years and has formed an excellent working relationship with the group. Tel +44(0) 1254 690 555 Fax +44(0) 1254 690 666

www.greenbanktechnology.co.uk Furthermore, Nampak Bevcan remains committed to sustainability in other areas of the business and has gone through quite a large capital reinvestment programme to become more environmentally friendly. “the introduction of new equipment has enabled us to significantly cut down on energy consumption,” Smuts asserts. “the overall carbon footprint of the business is coming down rapidly and we have very aggressive targets going forward to reduce this even further.”

ongoing Challenges and Future Aspirations

“there are always many challenges,” concedes Smuts. But while the volatility of exchange rates with the uS Dollar and Euro remain out of the company’s control, Nampak Bevcan has strong policies and procedures in place to manage this. “You have

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similar problems in the rest of Africa with local currencies, but one of the strengths of our company is operating successfully in challenging environments like these,” he says. looking forward, Nampak Bevcan is looking to expand its footprint in Africa even further and will consider wider opportunities too, as long as they make good business sense for both their customers and shareholders. “At this stage, we do not look beyond the continent, but any opportunities that do come up will be evaluated and considered,” notes Smuts. Whatever the future has in store for Nampak Bevcan, you can be sure that product quality and customer satisfaction will remain key concerns. “We have strong relationships with our customer base and pride ourselves on the quality of our products and services,” Smuts signs off.

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E nq u iries Tel (UK): +44 (0) 1603 559 151

NAMPAK BEVCAN

Tel (SA): +27 (0) 21 527 0053

Building 11A

ben.weaver@outlookpublishing.com

First Floor Woodlands Office Park

SUBSCRIPTIONS

Woodmead

Tel (UK): +44 (0) 1603 559 152

Gauteng

matt.bone@outlookpublishing.com

Tel: +27 11 519 7700

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Western Service Road

www.nampak.com


NAMPAK BEVCAN