SIG Combibloc remains in good shape

March 2005. SIG Combibloc can look back on another successful business year. As a world-leading systems manufacturer of aseptic beverage cartons and the respective filling machines, SIG Combibloc once again was the main pillar of SIG.

In Germany, the biggest market of SIG Combibloc, the company was able to defend its market position and maintain its market share despite the discussion about a mandatory deposit, which continued until mid-October, and the rather cool summer.
The new packaging plant in Wittenberg (Germany), which was taken into operation in 2004, mainly serves to satisfy growing global demand for beverage cartons. This investment will expand the local company into a high-performance plant for mid-size and big-size beverage cartons. In the first construction phase, a finishing line which creases and seals the coated and printed packaging material, was installed and started operation. Currently, in the second construction phase, the building is expanded and another printing machine installed. Start of operations is expected for end of 2005.

Production capacities were also expanded in Linnich, the second location in Germany. An additional finishing line and a new printing machine were installed in existing buildings. Another extrusion line will start operation in 2006. The construction of a new production building required for this purpose is underway. The site was chosen in view of the expected future quantity requirements and its central location. Coated material can be processed in-house or be supplied to other SIG Combibloc plants.

Several regions in Western Europe increased their sales in 2004. Especially in Spain, growth was higher than expected. New standards were set here by the successful introduction of the innovative combishape system. The system allows aseptic beverage cartons to be shaped, allowing for effective differentiation on retail shelves.
Corporación Alimentaria Peñasanta (CAPSA), a Spanish dairy company, was the first to launch a product in combishape. They chose an oval form for their functional NATURLínea milk which is part of a product range that helps reduce body fat by means of a natural ingredient. The unusually shaped packaging allows CAPSA to give this unique product additional appeal.

combishape a formula for success
Another prototype machine started operation in France. In September 2004, Eckes-Granini France, the leading French fruit juice producer, launched the “Joker” premium juices in the oval aseptic combishape cs R020 carton. Following the successful introduction of the four Joker flavours orange, apple, multi-fruit and grape in the new combishape format, pineapple and grapefruit were added to the range.
combishape was awarded several prizes in 2004, including the renowned French “Oscar de l’emballage” for the “impressive innovation” of the combishape machine concept. Trade magazine “Rayon Boisson” named the Joker juices in the combishape carton the “Beverage of the Year”.

Distinctive packaging concepts such as combishape respond to the growing demand to differentiate products from the competition through new products in innovative packaging. The market thus responds to changes in consumer behaviour and follows the trend towards innovative and user-friendly packaging concepts.
Another impressive example is the combifit packaging system, which has successfully established itself in the international market. The range of combifit products with the typical slanted top has now been expanded by the handy combifitSmall format, which was first launched in Switzerland and Taiwan.
combifitSmall - the convenient packaging solution for out-of-home consumption - was designed for the target group of dynamic adults and children. The package also includes an U-straw with a diameter of up to 6 mm. As such, it has a far larger opening than a conventional straw.

One advantage for the beverage industry is that combifitSmall can be filled on the tried and tested combibloc machines. The only additional filling equipment needed is a forming station which gives the cartons their typical appearance. As the forming takes place after the filling process, the filling machine can be used for both combifitSmall and combiblocSmall.

Close partnerships
In America, SIG Combibloc gained market share especially in Canada. In March 2004, Campbell Soup Company and SIG Combibloc jointly opened the Aseptic Center of Campbell’s (A.C.C.) in Toronto the highlight to date in the 20-year partner-ship between the two companies. In addition to various broths, cream soups are also filled here. The success achieved to date as well as market forecasts suggest that aseptically packaged soups, sauces and desserts will increasingly gain in importance in America.
A new market strategy allowed the company to set the course for a positive development also in South America. Brazil, for instance, will shortly see the launch of sweetened condensed milk.

Positive growth also continues in Eastern Europe, the Middle East and Asia.
In Eastern Europe, five customers have already chosen the new combifitMidi format (500, 750 and 1,000 ml), which closes the gap between slim premium formats and standard formats. Both milk and juice products have meanwhile been launched successfully in the combifitMidi format. In Poland, the market leader in fruit juices, Maspex, additionally chose the combifitPremium format for its juices.
With Fresh&Co, the market leader in fruit juices, SIG Combibloc won an important new customer in Serbia. Business relations were also expanded with existing customers, such as AkGida in Turkey and Tatramleko Hlinsko in Czechia. Full utilisation of filling machine capacities will further stimulate the growing markets.

China was the only market to fall short of the company’s growth targets. On the one hand, this is attributable to ongoing consolidation in the milk market, on the other hand, the percentage of PET packaging for both fruit drinks and ice tea is rather high.

SIG Combibloc is convinced that the up-and-coming Chinese market is poised for growth and opened a new packaging plant in Suzhou near Shanghai. Thus the division strengthened its presence in the dynamic local market, which is an important prerequisite for close cooperation with new and existing customers.
Currently, SIG Combibloc has about 200 employees in China. The company’s range of products and services includes a wide selection of aseptic cartons and systems solutions as well as technical services. Supported by two sales and marketing offices in Shanghai and Beijing, the new plant will enable the company to grow with its existing and new customers. A leading dairy has been won as a new customer, which will improve the capacity utilisation of the plant already in 2005.

The SIG Group has initiated specific relief project to help the victims of the tsunami in South-East Asia in 2004. In addition to immediate financial aid provided to UNICEF by SIG Combibloc Western Europe, the Group has set up a special-purpose fund in Thailand, to which a preliminary amount of EUR 100,000 has been contributed.

Several regional companies and business units of the SIG Group will also contribute to this fund; they will cancel internal events scheduled for this year and invest the money budgeted for this purpose in the fund, which will be used to finance longer-term care and education of affected children in Thailand and Indonesia.

Well positioned for continued growth
In order to be well positioned for continued growth, SIG Combibloc started to introduce a functional organisation at the end of 2004, which will increase efficiency throughout the company in the course of 2005. Various tasks fulfilled by the three former European regional companies CBWE (SIG Combibloc Western Europe), CBEE (SIG Combibloc Eastern Europe) and CBUK (SIG Combibloc UK) will be pooled.

Four global units with central responsibility will manage the key operating functions Market Operations (sales, service and marketing), Sleeves Operations (supply chain, purchase, production of cartons and fitments), Equipment Unit (plant and equipment handling) and Research & Development.

An active management of the investments in filling machines and new packaging plants ensures that these investments will be made in line with actual market growth. SIG Combibloc will, for instance, expand its presence in the Middle East and in Africa. A new packaging plant and a training centre are currently being built near the Saudi Arabian capital, Riyadh. Production is scheduled to start in the third quarter of 2005.

The new production plant in Saudi Arabia will supply the markets in the Gulf region, the Levant and Africa with aseptic beverage cartons. For the management, the construction of a local production plant in Riyadh is an important step towards a strengthening of the business activities in Saudi Arabia and the neighbouring countries.

Download Media Release 050308



Your contact:

Heike Thevis – Press Officer
SIG Combibloc GmbH
Rurstrasse 58, D-52441 Linnich, Germany
Tel: +49 2462 79 2608
Fax: +49 2462 79 17 2608
E-mail: heike.thevis@sig.biz

SIG Combibloc is one of the world's leading system suppliers of aseptic beverage cartons and filling machines. Employing approx. 4,060 people, the company recorded sales of EUR 1,075 million in 2004. SIG Combibloc is a division of SIG Holding AG, Neuhausen am Rheinfall.




Distinctive packaging concepts such as combishape respond to customers’ growing demand to differentiate their products from the competition through new products in innovative packaging. In September 2004, Eckes-Granini France, the leading French fruit juice producer, launched the “Joker” premium juices in the oval aseptic combishape cs R020 carton.




The range of combifit products with the typical slanted top has now been expanded by the handy combifitSmall format, which was first launched in Switzerland and Taiwan. combifitSmall - the convenient packaging solution for out-of-home consumption - is designed for the target group of dynamic adults and children.


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