Weener Plastop is on the ball

Message from MarcoNew financial yearbrings a clean slateThe last two years have beenextremely tough, and whilewe’re not out of the woods thereare encouraging signs that theSouth African economy <strong>is</strong> starting toshow improvement. However, politicalinstability in the oil-producing regions ofnorth Africa are likely to have a seriousinfluence on the cost of polymers – ourlargest single production cost.While I’m unable to divulge much in theway of detail, the past financial yearhasn’t been one of our best. In additionto the overall economy we had <strong>is</strong>suesof our own, not least the protractedlabour d<strong>is</strong>pute at East Rand Plastics –our biggest operation and one thatshould be a significant contributor to ourbottom line.The first of March signalled thebeginning of our new financial year,a clean slate from which we canmove forward and build on the strongfoundation we’ve created over thelast two and a half years. Much haschanged in the Group during thattime, and I believe the operations,personnel and structure are betterpositioned to take us to new levels offinancial performance. And financialperformance <strong>is</strong> the bas<strong>is</strong> of how theshareholders – the owners of thebusiness, many of them staff members –will judge us at the end of the day.There are three key areas for everyoneto focus on in the coming financial year,the first being our goal of becomingthe industry’s lowest-cost producerof plastic packaging. And we can allplay a role: our move to Syspro hasenabled us to properly understand theproduction costs of each product wemanufacture; WCM <strong>is</strong> fundamental tomaking our plants efficient; we’ve donea lot to improve energy efficiency andthere’s more to come; and our moveto a continuous shift system <strong>is</strong> ensuringthat our machinery <strong>is</strong> used to its fullproduction capabilities. These are allactions that involve everyone in theGroup and we need to continue toembrace these responsibilities.Our second objective <strong>is</strong> sales growth.In the short term we’re not expectingto purchase any new businesses soth<strong>is</strong> growth must be achieved fromincreasing our market share in thosesectors where we’re active andsecuring new projects. The RigidsDiv<strong>is</strong>ion has been particularly effectivein building growth through new projectsand th<strong>is</strong> must be replicated by Flexiblesin the future.The third key focus must be oninnovation. It’s innovation that willseparate us from our competitors; wemust move away from being sellers ofcommodity products that only allowyou to sell on price: we MUST sell onthe VALUE we bring. The work beingdone by Peninsula Packaging <strong>is</strong> mostencouraging (see story on page 9) andan example of how their knowledge ofthe fruit market, together with technicalinput from s<strong>is</strong>ter company Knilam, hasopened doors in the broader freshproducesector.In tough times we’ve continuedto spend on equipment to ensurewe’re capable of competing on theinnovation and lowest-cost fronts. Inthe 18 months ending th<strong>is</strong> Decemberwe’ll have invested in the region ofR200 million in plant and equipment. Wenow need to use these assets to theirmaximum capability.Looking forward, I believe we’repo<strong>is</strong>ed for greater things. The localand international economies are inrecovery mode. We’ve made significantstructural changes to the Group andeffected changes at managementlevel, and are now in a better positionto maxim<strong>is</strong>e the opportunities that willar<strong>is</strong>e over the next year. It will still takethe committed effort of every personin our more than 4 200-strong team butit can be done. Let’s work together inthe year ahead to position Astrapakjust as our m<strong>is</strong>sion statement says: Tobe South Africa’s preferred supplier ofplastic packaging in whatever marketsor market segments we’ve chosen.Kind regardsMarcoASTRAPAK NEWS3

Finding the right home for Saflite and KnilamThe consolidation of Saflite and Knilam, two of Astrapak’s special<strong>is</strong>tflexible manufacturers, <strong>is</strong> taking some time – but rest assured thatwhen it happens, it will meet all our needs.If you’re wondering why it’s taking awhile to get Saflite and Knilam underthe same roof, one of the reasons <strong>is</strong>that general manager Brennan Sharpand h<strong>is</strong> team are determined to findan industrial space that meets all theirspecial<strong>is</strong>ed requirements and <strong>is</strong> alsoclose to the southern suburbs of CapeTown, where most of their workforcehails from. With a combined staffcomplement set to reach close on60 on a four-shift system, it’s importantthey find a new home for theconsolidated company as close aspossible to the homes of the peoplewho make it all happen.The reasons for the consolidation are allgood: it’s about bringing economiesof scale to the two small businesses bycombining them into one operation, sosaving considerable admin<strong>is</strong>trative andoverhead costs.Another key advantage to the union<strong>is</strong> the integration of manufacturingoperations. Both companies use similarprocesses with different substrates toproduce special<strong>is</strong>t packaging.Saflite’s patented wine pouch hasbecome a global product; enquiriescontinue to flood in from around theworld. Production <strong>is</strong> set to reach newheights with the introduction of aspout insertion machine later th<strong>is</strong> year,adding a new product to the currentrange of pouches.Knilam already has a significant shareof the local MAP market and themanagement team <strong>is</strong> progressing wellwith their plans to target the lucrativeEuropean market importing freshproduce out of Kenya.And Knilam <strong>is</strong> one of an elite groupof companies in South Africa that hasbeen awarded Brit<strong>is</strong>h Retail Consortium(BRC) certification. The plan <strong>is</strong> toincorporate Knilam’s internationallyrecogn<strong>is</strong>ed hygiene and food safetystandard into Saflite. Says Brennan,‘As a supplier to the food andwine industries, and with theimplementation of the newConsumer Protection Act and itspotential impact on all South Africanbusinesses, we need to put standards inplace at Saflite.’In terms of securing a newprem<strong>is</strong>es, Brennan and h<strong>is</strong> teamhave been challenged by the recenteconomic slowdown as well as theirvery specific requirements. In terms oflocation, there are limited industrialproperties to be found in the southernsuburbs and, when looking at what <strong>is</strong>available, <strong>is</strong>sues such as cleanlinessand access control come into play.And then there’s the task of marryingtwo different cultures and skill levels intoone while maintaining continuity andachieving growth.But Brennan <strong>is</strong> excited by the new lookbusinessand <strong>is</strong> confident the new homewill be secured by the end of the year.Saflite staffKnilam staff4ASTRAPAK NEWS

Plastform packs more punchwith state-of-the-art extruderA new multi-layer extruder <strong>is</strong> being installed at Plastform – aninvestment that will give the company the most technologicallyadvanced sheet extrusion line of its type in AfricaAmachine that boasts thelatest European sheetextrusion technology was keyto Plastform’s strategic planto achieve world-class status in everyaspect of the business while enhancingand expanding the company’s penetrationwith their ex<strong>is</strong>ting customer base.That’s according to nationalsales manager Gavin Coppin, whosays that the acqu<strong>is</strong>ition willsubstantially enhance Plastform’scost-competitive positioning. Themultipack market share currentlystands at approximately 60% of allyoghurt sold, while form, fill and seal(FFS) multipacks have experienceddouble-digit growth over the past10 years.‘We knew that sheet supply for FFSequipment was the answer to deliveringhigher value to our ex<strong>is</strong>ting client base.Furthermore, the acqu<strong>is</strong>ition enabled usto accelerate progress of our formingdepartment’s Light Weighting initiativeto provide more packaging for less,’explains Gavin.FFS multipacks were introducedto southern Africa by Danone inearly 2000 and it wasn’t longbefore the other two major dairies,Parmalat and Dairybelle, followedsuit. In 2002 Plastform developed afour- and six-pack multipack whichwas used successfully by several ofthe smaller independent dairies.Th<strong>is</strong> line <strong>is</strong> currently being comm<strong>is</strong>sionedand <strong>is</strong> expected to deliver the first reelsof FFS sheeting in early May.6ASTRAPAK NEWS

East Rand Plastics produceswinning water tableWhen the East Rand Plasticsteam learnt that a Springsbasedcompany had beendeclared the best watertable at the Striders 32km road racefor the past six years, they took up thechallenge to win the votes of the 2 000-odd runners and scoop the covetedOas<strong>is</strong> trophy.Willie Canon and Frikkie du Toit tookcharge, organ<strong>is</strong>ing bright orangeGarbie T-shirts and colourful mohawkwigs for the helpers, and Garbiebanners, gazebos and bins dotted theroad. Chr<strong>is</strong>ta Wilmers ensured a friendlyGarbie supporter stood watch over thepassing crowds. With music pumpingand free peaks and b<strong>is</strong>cuits flowing, therunners were sufficiently impressed tovote Garbie their favourite water tableat the end of the race and the EastRand Plastics team went home withthe trophy.Well done to everyone for the heartyeffort and a great morning of fun. Andhere’s to defending the title next year!Organ<strong>is</strong>er Willie Canon and Chr<strong>is</strong>ta Wilmers’ Garbieman delighted passing runners.Astrapakcontinues tosupporteducationMarcom Plastics in Pretoriarecently hosted a v<strong>is</strong>it of 60post-matric students fromthe National Tooling InitiativeProgramme. The programme, run throughthe Department of Trade and Industry, aimsto boost the number of people embarkingon tool-and-die-making apprenticeships.ASTRAPAK NEWS 7

Chr<strong>is</strong>tian works well with maintenance team mates Obey Marevesa (left) and Gimmie Barnard (right).Bringing a bit of Italy to AstrapakItalian-born Chr<strong>is</strong>tian Piacentini has brought both valuableexpert<strong>is</strong>e and colourful personality to JJ Prec<strong>is</strong>ion’s Durbanoperation since he took up the position of maintenance managereight months ago.Chr<strong>is</strong>tian hails fromAbbiategrasso, a small villagewith just 23 000 inhabitants nearMilan in northern Italy. The family wasclose-knit, so father Paolo and motherPiera were understandably anxiouswhen their beloved son announced h<strong>is</strong>intention to find h<strong>is</strong> fortune and make h<strong>is</strong>future in South Africa.Chr<strong>is</strong>tian, an electrical engineeringgraduate, v<strong>is</strong>ited South Africa onbusiness and was introduced to MarcoBaglione. Marco was so impressed withh<strong>is</strong> work ethic and technical knowledgethat he offered Chr<strong>is</strong>tian a two-yearcontract.Chr<strong>is</strong>tian brought with him valuableexperience in hydraulics, pneumaticsand mechanics, and h<strong>is</strong> initial monthsat Astrapak were mainly troubleshootingas he was called on to sortout hazardous machinery at variousoperations. Now he’s been assignedthe permanent role of maintenancemanager at JJ with 40 injectionmachines under h<strong>is</strong> care.‘My goal <strong>is</strong> to bring every one ofthe machines to a standard level ofmaintenance. My previous experiencewas with injection blow-mould machinesso I’m still getting to grips with lookingafter injection-moulding machines,but I love working with people and gettremendous sat<strong>is</strong>faction from organ<strong>is</strong>ingmy group,’ says Chr<strong>is</strong>tian.He views h<strong>is</strong> time away from home ash<strong>is</strong> chance to grow professionally andpersonally and he’s driven by the desireto be able to say ‘I did it’ one day whenhe returns to Italy. ‘Many people in myvillage thought I was absolutely crazyto accept but my dec<strong>is</strong>ion to moveto South Africa was motivated by adesire to learn new things and havenew experiences,’ says Chr<strong>is</strong>tian, who’sstarted playing rugby, reads WilburSmith and has become a real fan ofbunny chow and braa<strong>is</strong>.‘It’s sometimes tough being so faraway from family but we skype oftenwhich helps a lot. I’ve also made lotsof friends. I think South Africans arewonderful people and have beenoverwhelmed by the abundance offriendship, affection and acceptanceI’ve received from all quarters.’It used to be martial arts, but since hitting SouthAfrican shores Chr<strong>is</strong>tian’s favourite pastime hasbecome rugby.8ASTRAPAK NEWS

Innovation in the bagPrint manager Patrick Meyer (left) and operator Peter Thys show off the old printer that was specially modified to apply the anti-m<strong>is</strong>t layer to the new lettuce bag,saving on both time and new equipment costs.Penpak’s pioneering lettuce bag has put the company firmly on theinnovation highway.Peninsula Packaging (Penpak)has long been a leader in fruitand bread flexible packagingin the Western Cape, and their brieffrom Freshmark, a div<strong>is</strong>ion of retail giantShoprite Checkers, challenged them tor<strong>is</strong>e to new heights of ingenuity.‘Consumers are under pressure –electricity and municipal rates increaseshave cut into the family budget, sogrocery retailers are looking at everyway to ease the burden. And that wasour brief from Shoprite Checkers: tocome up with a more cost-effectiveform of packaging for lettuce thatdoesn’t sacrifice on quality or shelflife,’ says Penpak sales and marketingmanager Paul Dewrance who togetherwith fresh produce special<strong>is</strong>t Lötter V<strong>is</strong>serdrove the project.‘The result has been certified a winneron all fronts. Not only does the newpatented lettuce bag cost less toproduce than the conventionalStyrofoam base and cling wrap butit also extends the shelf life of theproduct, ensuring better colour, betterappearance and better eating qualityfor up to eight days. The new lettucebag <strong>is</strong> going to make life a lot easier forconsumers and save them money.’The new packet may look innocuous,but thanks to input from s<strong>is</strong>tercompanies East Rand Plastics whichprovided the special<strong>is</strong>ed film, andKnilam, there’s some serious technologyinvolved. Knilam <strong>is</strong> a South Africanleader in modified atmospherepackaging (MAP), technology thatallows for the extended preservationof fresh produce without the additionof artificial gases or preservatives. Theinside of the package incorporatesanti-m<strong>is</strong>ting properties that improvethe appearance of the lettuce, andthere’s a built-in re-sealable strip. Allthese innovations combine to create awinning package for the consumer.‘One of the key benefits of a multioperationsgroup like Astrapak <strong>is</strong>our ability to learn from each otherand to ass<strong>is</strong>t when confronted witha packaging challenge,’ says Paul.‘The cross-pollination of ideas andtechnology from three differentcompanies was the sole reason th<strong>is</strong>project was successful in an incrediblyshort development period.’The initial production order was formore than five million bags. Penpak <strong>is</strong>in the process of acquiring additionalequipment to consolidate all aspectsof the production process inhouse.Interestingly, the bag has been atthe centre of an aggressive telev<strong>is</strong>ionadvert<strong>is</strong>ing campaign promotingFreshmark’s high-quality produce.ASTRAPAK NEWS 9

Electricity <strong>is</strong> expensiveSaving <strong>is</strong> simpleTurn down your geyser temperature, take a shower rather than a bath, fit an energysavingshowerhead and get a geyser blanket to save up to 15% on your electricity bill. Formore saving tips, v<strong>is</strong>it www.SavingElectricity.org.zaAre you e-waste w<strong>is</strong>e?Up to 50 million tons of computers, washing machines andTVs are thrown away across the planet each year, makingelectronic waste, or e-waste, the third-fastest-growing streamof waste in the world. South Africa produces 100 000 tons ofe-waste annually. Are you d<strong>is</strong>posing of your e-waste correctly?You’re being a responsible citizenof the world by separating yourhousehold waste and makingsure that recyclables aren’t sent to ourlandfills. Well done!But you could still be po<strong>is</strong>oning theplanet by unwittingly throwing awaycertain objects that contain hazardousmaterials – old computers, printers,cellphones, pagers, digital photo andmusic devices, fridges, hairdryers,toys and TVs. Modern electronics cancontain up to 60 different elements –many valuable (including gold andsilver), some hazardous, and some both.When a computer ends up in a landfill,it leaches cadmium, mercury, lead andother metals into the ground, and theseoften end up in our water sources. Andwhen d<strong>is</strong>carded electronic devices aresmelted to extract metals, th<strong>is</strong> <strong>is</strong> oftendone in the open air, which <strong>is</strong>n’t goodfor the environment or for people, astoxic gases are released.Before you toss away your oldelectronic equipment, do someresearch about how it can berecycled. Is there a school or charitynearby that could make use of it?And if it can’t be re-used, makesure it’s properly d<strong>is</strong>posed of – manyMakro stores have e-waste recyclingcontainers, which are regularly clearedby Desco Recycling, and the contentsrecycled or d<strong>is</strong>posed of in line withglobal environmental best practices.For more information about what to dowith your electronic waste, and for therecycling/d<strong>is</strong>posal depot nearest you,go to e-WASA (the Electronic WasteAssociation of South Africa) athttp://www.ewasa.org/.Light bulbsand batteriesEnergy-saving compactfluorescent lights (CFLs)and fluorescent tubescontain mercury, a toxinthat can leach into the soil andgroundwater. Take your old CFLsto the drop-off points at Pick’n’Payand Woolworths stores where theywill be d<strong>is</strong>posed of safely. If youdon’t have th<strong>is</strong> option, place yourold CFLs in a sealed plastic bagbefore you throw them in the bin.Batteries also contain toxicchemicals that can leach intothe soil and groundwater. So whynot switch to rechargeables?One rechargeable battery <strong>is</strong>the equivalent of up to 1 000d<strong>is</strong>posable batteries, and they canbe recycled.Let your fingers dothe walkinghttp://www.treevolution.co.za/guide-to-recycling-in-sa/http://www.computerscraprecycling.co.za/10ASTRAPAK NEWS

Think the Argus <strong>is</strong> tough? Trythe Trans Baviaans!When Cobus Stofberg tackled the Argus cycle race recently with verylittle training, he knew he’d be able to do it. That’s because he’s alreadyconquered the Trans Baviaans – the longest single-stage team mountainbikingrace in the world.The Trans Baviaans takes placein August each year, starting inWillowmore in the SouthernCape and winding its way throughthe beautiful Baviaanskloof mountainrange to end 230 kilometres later inJeffreys Bay.Internal Audit’s Cobus Stofberg and h<strong>is</strong>younger brother Hannes entered therace last year as the two-man teamMalJan en BrakkenJan, and while theyfound it an enormous challenge, theywouldn’t hesitate to do it again.‘The race was really special,’ saysCobus. ‘Our strategy was to stopevery hour to eat, drink and enjoy thebeautiful landscape, and th<strong>is</strong> approachproved very valuable for us. We fin<strong>is</strong>hedvery strongly, overtaking a lot of teamsin the last stage towards the end of therace.’ The brothers clocked in at animpressive 14 hours, 57 minutes.Key to their success was the factthat they were well prepared forriding in the dark – the Trans Baviaansstarts at 10 on Saturday morning andcontinues through the night into Sundaymorning. ‘Clocking in excess of 60km/hon gravel roads on unfamiliar terrainin the darkness sure gets the adrenalinpumping,’ says Cobus. The brotherstrained in the Paarl mountains at nightduring the winter months to get used toriding at high speed with limited v<strong>is</strong>ibility.‘Riding that d<strong>is</strong>tance under thoseconditions makes you rely on teamspirit,’ says Cobus. ‘I can trust Hannes’shandling skills on the bicycle – I cansit 15 centimetres away from h<strong>is</strong> backwheel and be slipstreaming, knowingthere won’t be a sudden change indirection or him hitting the brakes hard.He’s also a phenomenal climber whichreally helps when you need someone todrag you up a hill.’The brothers, who hail from anathletic family, have set their sightson the Namibian Desert Dash for theirnext challenge, a 340-kilometreoffroad mountain-bike race fromWindhoek to Swakopmund throughthe Namib Desert.‘When you’ve spent 15 hours“suffering” on your bicycle,you real<strong>is</strong>e how strong the humanwill <strong>is</strong> and how much your bodycan actually take,’ says Cobus. So,for him, th<strong>is</strong> year’s 109-kilometrepedal around the Cape Peninsula,on a relatively wind-free sunny daywith thousands of supporters andplenty of time to take it easy andenjoy the scenery, was considerablyless pressured than the last time hesaddled up for a competition.A significant achievement: Cobus Stofberg(right) tackled the gruelling Trans Baviaansmountain bike event with teammate andbrother Hannes.ASTRAPAK NEWS 11

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