Who Owns Whom

Manufacture of Metal Containers 2016

Yasmin Mahomedy | South Africa | 21 March 2016

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R 1 900.00(ZAR) estimated $ 120.93 (USD)*

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Report Coverage

The Manufacture of Metal Containers describes current conditions in the local sector and factors influencing the success of the industry. The report profiles 12 companies active in the manufacturing sector, including market leader Nampak and its two metal container divisions: Bevcan, the largest manufacturer of beverage cans; and Foodcan, the largest manufacturer of general line cans. Also profiled are SME, In Can Man (Pty) Ltd which manufactures 25 million cans per annum and Gauteng-based Coleus Packaging (Pty) Ltd which manufactures 7 billion crowns a year in South Africa and 1 billion a year with its joint venture partner in Uganda.

The Manufacture of Metal Containers

This report focuses on the manufacture of all types of metal containers, a sector that is valued at an estimated R5.57bn per annum. Companies in the South African metal packaging industry supply cans, pails and drums in a variety of shapes and sizes to a variety of markets and end-users. As with most domestic manufacturing sectors, this industry has to compete with cheap Chinese imports of containers as well as the steel and aluminium required for manufacture.

Challenges and Opportunities

With the weak economy and a struggling local manufacturing industry, companies such as Rheem South Africa and multinational Greif are looking at the rest of the continent for growth opportunities. However, opportunities do exist locally. In September 2015 Nigerian aluminium beverage can maker GZ Industries and South Africa’s Golden Era Packaging entered into a R1bn joint venture to set up a 1.2 billion can a year manufacturing plant. The new company, Gayatri GZI Beverage Cans is expected to commence operations during 2016. Increasing overall demand in the beverage can sector has been accompanied by a growing demand for aluminium cans. In response, role players Nampak, aluminium producer, Hulamin and the two largest users of cans, South African Breweries (SAB) and Coca-Cola Southern Africa, have spent more than R1bn converting their production lines to aluminium.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 8
4.1.2. Regulations 8
4.1.3. Enterprise Development and Social Economic Development 9
4.2. Continental 10
4.3. International 11
5. INFLUENCING FACTORS 12
5.1. Government Intervention 12
5.2. Labour 12
5.3. Economic Environment 14
5.4. Rising Input Costs 15
5.5. Changing Consumer Patterns 15
5.6. Environmental Concerns 15
5.7. Technology, Research and Development (R&D) and Innovation 16
6. COMPETITION 17
6.1. Barriers to Entry 18
7. SWOT ANALYSIS 18
8. OUTLOOK 19
9. INDUSTRY ASSOCIATIONS 19
10. REFERENCES 20
10.1. Publications 20
10.2. Websites 20
COMPANY PROFILES 21
CarnaudMetalbox Food South Africa (Pty) Ltd 21
Clyde Steel (Pty) Ltd 22
Coleus Packaging (Pty) Ltd 24
Duvash Chemical Packaging (Pty) Ltd 26
Fontana Manufacturers (Pty) Ltd 28
Gayatri Cans (Pty) Ltd 30
Greif South Africa (Pty) Ltd 32
Metcan Manufacturing CC 34
Nampak Products Ltd 36
Peninsula Drums CC 39
Rheem South Africa (Pty) Ltd 41
Tin Can Man (Pty) Ltd 43