http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.99Change: -0.15
R/$ = 12.63Change: -0.01
Au 1095.35 $/ozChange: -1.71
Pt 982.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 05, 2012

Packaging industry holds many opportunities

Back
Africa|Design|Environment|Export|Mpact|Nampak|Packaging|Projects|Resources|Safety|SECURITY|Uniprint Labels & Packaging|Waste|Africa|Brazil|South Africa|United Kingdom|Beverage Packaging|Electricity|Food|Manufacturing|Manufacturing Sector|Packaging|Paper And Plastic Packaging Manufacturer|Product|Products|Services|Bruce Strong|Infrastructure|Waste|Packaging Materials|Poor Infrastructure
Africa|Design|Environment|Export|Packaging|Projects|Resources|Safety|SECURITY|Waste|Africa||Manufacturing|Packaging|Products|Services|Infrastructure|Waste|
africa-company|design|environment|export|mpact|nampak|packaging-company|projects|resources|safety|security|uniprint-labels-packaging|waste-company|africa|brazil|south-africa|united-kingdom|beverage-packaging|electricity|food|manufacturing|manufacturing-sector|packaging|paper-and-plastic-packaging-manufacturer|product|products|services|bruce-strong|infrastructure|waste|packaging-materials|poor-infrastructure-product
© Reuse this



While the South African packaging industry is facing challenges like many other sectors, it is capable of successfully competing in global markets and packaging companies should aim to turn challenges into opportunities, advises paper and plastic packaging manufacturer Mpact CEO Bruce Strong.

“South Africa is not second-rate in any way with regard to the design and application of packaging,” he asserts.

He points out that several South African packaging companies, including Mpact, compete in the WorldStar Packaging Awards every year, adding that they often win in many categories.

Mpact and fellow South African packaging companies, Nampak and Uniprint Labels & Packaging, won awards for food and beverage packaging in 2011.

Strong acknowledges that there are many challenges facing the industry. These include the high cost of administered services such as electricity and municipal services, as well as skills shortages.

Another challenge is the export market. While foreign companies, which export packaging products to South Africa pay no duties, countries such as Brazil, among others, impose duties on South African packaging exports.

“We are engaging with govern- ment about this on an ongoing basis. “We are not asking for protection, but fair play. I think government is realising the significance of this challenge,” says Strong.

In terms of skills shortages, he believes that the packaging industry should look to skills development as a way to bridge the skills gap.

Further, Strong states that, for South Africa to reduce its unemployment rate and create more jobs, it needs to develop its manufacturing sector.

“Gross domestic product (GDP) has, to a large extent, been driven by services in the recent past, rather than by manufacturing,” he notes.

The total value of South Africa’s packaging industry is around R43-billion, contributing about 1.5% to South Africa’s GDP. Plastic packaging contributes about R20-billion a year and paper packaging R12-billion a year, with the balance made up by glass and metal packaging.

Not only is the packaging industry a significant employer, it also assists in the beneficiation of the country’s natural resources, says Strong.

“Packaging materials are produced and manufactured locally from local materials, which is a tremendous benefit to South Africa in terms of economic growth and job creation.”

Strong notes that, in the absence of adequate packaging, countries will face product waste that negatively impacts on economies.

“In developed countries such as the UK, about 3% of the produce that is grown or produced in the field is lost between the point of production and the point of consumption.

“This is in comparison with developing countries, where product waste can be as high as 40% as a result of inadequate packaging materials and poor infrastructure.

“Packaging has a critical role to play across the entire value chain and in establishing food security, which is a global issue,” says Strong.

He

stresses that one type of packaging cannot be considered as uniformly better than another, as each type has different applications and fills a different need in the market. “There is a continuous migration from one type of packaging to another over time, such as from glass to poly- ethylene terephthalate (PET).

“This migration is driven by several factors, including cost, the effects that a certain type of packaging has on the environment with regard to its recyclability and its carbon footprint, the application of the packaging material and the safety it offers consumers.”

Strong says PET packaging has come a long way over the last 20 years, as the technology to mould PET into a suitable packaging form was not available at that time.

“As a packaging material, PET has the advantage of being lightweight. For example, a 500 ml glass bottle weighs 400 g, whereas a 500 ml plastic bottle weighs only 40 g.”

Mpact is actively pursuing PET recycling projects and adds that the economic value of this material is significant.

“The recycling sector in general contributes to job creation in the informal sector – people who collect PET packaging materials for recycling can get up to R2.20/kg. While this may not seem like much, it is a lot to people who would otherwise struggle to survive. These people can earn R100 or more a day,” says Strong.

He adds that South Africa’s recycling sector employs in excess of 100 000 people, many of them in the informal sector.

Meanwhile, Strong says

retail- ready packaging has become a popular trend in the industry, as it offers retailers reduced handling, resulting in increased efficiencies.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Manufacturing News
The sharp decline in commodity prices is, on balance, negative for the outlook for the South African rand, new bank research shows, with lower oil prices being more than offset by lower mineral and metals prices. Standard Bank head of South African research Walter de...
AECI has made Edwin Ludick’s appointment as MD of its AEL Mining Services subsidiary permanent. Ludick had been acting in this position since May 15, following AECI executive committee member and AEL Mining Services MD Schalk Venter’s resignation to take up a...
More
 
 
Latest News
Updated 21 minutes ago This eight-page brief is a synopsis of key developments in the construction industry over the past 12 months. It provides an overview of South Africa’s construction sector and includes details thereof in the public and private sectors, as well as labour and skills...
Supermarket chain Pick n Pay has vowed to create 20 jobs every day through a new 20, 20, 20 by 2020 programme that would also see the firm simultaneously cut energy use and reduce waste. The newly launched “war on waste” campaign would target food waste, energy...
Global steel companies will have to balance efforts focused on globalisation while maintaining an eye on customisation if they are to survive and prosper in a market characterised by excess supply, market concentration and digitalisation, professional services firm...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
The R27-billion Gautrain project has contributed around R20-billion to the provincial gross domestic product (GDP) over the six years it took to build the rapid-rail link, notes a KPMG Gautrain economic impact report. Construction also sustained 121 800 jobs, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96