Ceepackaging

Optimistic view of future for machinery manufacturers
The Verband Deutscher Maschinen- und Anlagenbauer (VDMA) currently reports full order books for packaging machinery. It is especially encouraging that German domestic demand is at last also firming noticeably after a long hard haul. ‘The investment backlog in Germany appears to be clearing slowly,’ analyses Richard Clemens, General Manager of the VDMA-Fachverband Nahrungsmittel- und Verpackungsmaschinen. As export business is also still in full swing the average export quota is 80 %, he sees the current year with confidence. After slight growth to 4.2 billion EUR in 2005, he thinks the 4.5 billion EUR mark could be reached this year. The some 300 German manufacturers of packaging machinery will then have stepped up their production output by almost a third since 2000.

Product piracy is a growing source of concern for German machinery manufacturers. According to a current VDMA study on this subject, two thirds of the companies interviewed suffer from this problem. In the meantime, not only spare parts are counterfeited, but whole machines, which are often only the same as the original in design terms and so seriously damage the original manufacturer’s image. About 30 % of the companies interviewed estimate the annual loss of turnover due to product pirates at 5 % or more.

Plastic on the up
Plastics have developed into the most important packaging material in the past decade. They represent some 43 % of today?????s German packaging supplies market with a total of about 26 billion EUR. Last year, the around 700 manufacturers in the industry increased their turnover by 5.8 % to 10.5 billion EUR (IK, Industrieverband Kunststoffverpackungen, Bad Homburg). A new record quantity of some 3.8 million tons was also achieved. Plastic packaging supplies are valued internationally, with an export quota of around 40 %. However, the mood in the packaging supplies sector is being spoilt by raw material prices, which rose by up to 60 % in 2004. The cost of packaging plastics increased by 5 to 10 % in 2005. It was possible to pass on some of these increases to the customers, as the demand for plastic packages is growing constantly, especially in the food sector and for large containers for transport and storage. Innovative packages, particularly for convenience foods, prepacked sausages and cheese, give the industry impetus, so that processing and printing capacities are fully utilized.
The association expects the extension of the compulsory deposit scheme to create another boost for PET bottles, which as disposable or returnable containers are one of the preferred alternatives in the opinion of IK.

Container glass industry suffers from compulsory deposit and energy prices
The 32 companies in the German container glass industry produce 67.5 % glass for drink bottles, followed by glass for preserved food (27.2 %) and glass for the pharmaceutical and cosmetic industry. The export share was a good 30 % in 2004. Container glass production dropped by 2.5 % to 4.1 million tons in 2004 and sales revenue by 3.5 % to 1.5 billion EUR. Dramatically increased energy prices put the branch under extra cost pressure in 2005. ‘The energy-intensive container glass industry has had more than it can take,’ says Dr. Johann Overath, General Manager of the Bundesverband Glasindustrie, Duesseldorf. Production capacities were therefore distinctly cut back last year by shutting down four large glass melting furnaces.

International demand for tinplate from Germany
Tinplate packages declined heavily in 2004 with a drop of 8 % (GVM, Gesellschaft f??r Verpackungsmarktforschung, Wiesbaden). Both preserved food cans and drink cans are under strong pressure of being replaced with cooled products in bags or folding cartons. Germany?????s only tinplate manufacturer, Rasselstein GmbH of Andernach, produced approx. 1.24 million tons of tinplate in 2004 and a turnover volume of 863 million EUR. About 70 % of this is exported to around 400 packaging manufacturers in more than 80 countries. This makes Rasselstein one of the Top 3 European tinplate manufacturers. The Andernach company is to expand this year to become the world?????s biggest tinplate production location. ?????We are increasing our production capacities by 20 % to meet the growing demand for high-quality tinplate on the international markets, explains Gerhard Lohscheidt, Management Spokesman of Rasselstein GmbH. The company will then have an annual capacity of 1.5 million tons. Some 17 % of tinplate production is used for drink cans in Germany. Food and luxury foodstuffs have a share of 40 %, followed by chemical-technical packages (16 %), closures (13%), aerosols (8 %) and 6 % ‘miscellaneous’ products such as cake tins.

Corrugated cardboard more varied
The rising energy costs are also straining the profitability of paper and cardboard packaging manufacturers, which will lead to higher selling prices. Paper and cardboard are among the most popular and most used packaging materials. The German corrugated cardboard industry with 30 companies and some 100 factories has registered continuous growth for years. The industry?????s sales rose by 3.2 % to 7.6 billion square metres in 2005. Turnover stagnated with a slight plus of 0.3 % at 3.309 billion EUR. Structural changes in the trade contributed partly to the growth in quantity: Discounters use transport packages strategically in their outlets and therefore demand high-quality printed corrugated cardboard. Internet and mail order trade needs more transport packages: Around one fifth of all private customer packages handed in to Deutsche Post World Net are attributed to Internet transactions.
The carton manufacturers also expect strains on profitability this year. The 170 manufacturers of folding cartons produce some 2 billion EUR worth of cartons a year, of which almost 60 % go to the food industry. The manufacturers use processing technologies such as metallization, embossing and relief printing creatively to achieve value creation potential. Especially brand suppliers can eagerly look forward to many new ideas that will be presented at the N??rnberg packaging exhibition trio. At the express wish of the exhibitors, FachPack+PrintPack+LogIntern 2006 now take place for the first time from Tuesday to Thursday (26-28 September).