Annual Report - SIG Combibloc

18 Group report
Dr. Roman Boutellier
SIG 2003: Redefining the future in the jubilee year
In 2003, SIG celebrated its 150-year jubilee together with its employees and customers.
Under the motto “Together into the Future,” the anniversary was launched with a packaging
challenge held among our strategic business units. The actual birthday celebration took
place on January 17, with over 7,000 employees at 43 locations participating. The loudest
applause for winning the packaging challenge was received by: SIG Corpoplast in Hamburg
for packaging its office building in pet bottles and SIG Combibloc Asia for an entire pineapple
plantation packaged by children from a Thai orphanage. At mid-year, we announced our
new strategic orientation: focus on the core business sector of packaging liquids. This was
no easy step in the jubilee year as it implies a future outside of the SIG Group for a number
of long-serving employees. Concentrating on the packaging of liquids, however, offers so
many benefits that there was no point in delaying the decision any longer. The management
of the units to be divested is backing this strategic decision and sees it as an opportunity to
develop more strongly in a new environment. The financial market welcomed the focus
and responded positively.
The new strategy will change none of the proven values of our Group: ruggedness and
reliability of our products and rigorous customer orientation continue to be our foremost
business priorities.
Focus on successful core business
Worldwide, the beverages market continues to grow. With both its core business activities,
SIG Combibloc and SIG Beverages, the Group has achieved a leading position as a provider
of packaging materials and systems. In 2003 already, these two divisions generated more
than 80% of Group net sales as well as the entire operating profit. An even stronger focus and
the increasingly integrated management of the Group will provide more targeted exploitation
of synergies at both customer and technological levels, as well as in the administrative sector.
The fragmented market for packaging machines for dry goods, i.e., the primary business
activity of SIG Pack, is in a state of transition. Consolidation among customers and competitors
continues unabated. Even though SIG Pack again achieved a positive operating result
in 2003, we are convinced that this division stands a better chance to dominate future
challenges with a new owner. The divestment process was not yet completed at the end
of the business year 2003.