Who Owns Whom

Manufacture Metal Containers Industry South Africa

Manufacture of Metal Containers Industry in South Africa 2019

Yasmin Mahomedy | South Africa | 15 March 2019

Manufacture of Metal Containers Industry in South Africa 2016

Yasmin Mahomedy | South Africa | 21 March 2016

Enquire about this report

Introduction

This report focuses on the manufacture of metal containers which includes cans, drums and closures. Demand for packaging products was subdued during 2018 as South Africa’s economy contracted, and consumers’ disposable incomes were placed under pressure due to a poor economy, joblessness, an increase in VAT, fuel, electricity and other prices. The metal packaging sector is valued at approximately R5.9bn per annum and accounts for 9.2% of the South African packaging market. The sector continues to have the highest recycling rate of all packaging. Almost 76% of all metal packaging in South Africa is recovered and industry experts expect these statistics to improve further.

Strengths

• High quality products that conform to international standards.
• Well-established markets.

Weaknesses

• Lack of competitively priced steel.
• Shortage of high-level technical skills.

Opportunities

• Growing demand for beverage cans
• Growth in African markets.
• Increasing demand for aluminium cans.

Threats

• Increasing energy, labour and transportation costs.

Outlook

The South African metal packaging sector is expected to remain under pressure as a volatile rand, ongoing fuel and electricity price increases and other pricing pressures continue to curb consumer spending. Nampak CEO André de Ruyter said that the outlook was challenging and demand-driven, and “efficiency improvements, cost containment and targeting new market segments will be priorities in 2019 to drive improved profitability and better returns.” MetPac-SA CEO, Kishan Singh said the positive growth in post-consumer metal recovery is expected to continue and he highlighted that creating a circular economy is essential to sustain metal packaging for the future.

Manufacture of Metal Containers Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

Manufacture of Metal Containers Industry in South Africa 2016-03-21

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
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 4
4.1. Local 4
4.1.1. Regulations 5
4.1.2. Enterprise Development and Social Economic Development 7
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 10
5.1. Economic Environment 10
5.2. Government Intervention 11
5.3. Rising Input Costs 12
5.4. Technology, Research and Development (R&D) and Innovation 12
5.5. Labour 13
5.6. Changing Consumer Patterns 15
5.7. Environmental and Health Concerns 15
6. COMPETITION 17
6.1. Barriers to Entry 18
7. SWOT ANALYSIS 18
8. OUTLOOK 18
9. INDUSTRY ASSOCIATIONS 19
10. REFERENCES 19
10.1. Publications 19
10.2. Websites 19
APPENDIX 1 21
Summary of Notable Players 21
COMPANY PROFILES 22
DUVASH CHEMICAL PACKAGING (PTY) LTD 22
GAYATRI CANS (PTY) LTD 24
GREIF SOUTH AFRICA (PTY) LTD 26
METCAN MANUFACTURING CC 28
NAMPAK PRODUCTS LTD 30
PENINSULA DRUMS (PTY) LTD 33
RHEEM SOUTH AFRICA (PTY) LTD 35
TIN CAN MAN (PTY) LTD 37

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.

Introduction

This report focuses on the manufacture of metal containers which includes cans, drums and closures. The total value of South Africa’s packaging industry increased to R79bn in 2014 due to growing consumer demand for convenience especially in the packaged food sector. The value of the metal packaging sector is estimated at R5.57bn per annum. Increasing overall demand in the beverage can sector has been accompanied by a growing demand for aluminium cans. The impact of the shift to using only aluminium instead of a mixture of metals is expected to benefit street collectors who will be able to cash in on aluminium’s near-perfect recyclability.

Strengths

• High levels of innovation.
• High quality products that conform to international standards.
• Well-established markets.

Weaknesses

• Lack of competitively priced steel.
• Shortage of high-level technical skills.

Opportunities

• Growing demand for beverage cans
• Growth in African markets.
• Increasing demand for aluminium cans.

Threats

• Glass bottling increasingly seen as more environmentally acceptable.
• Increasing energy, labour and transportation costs.
• Industrial companies migrating from metal containers to plastic containers as new plastic technologies are developed.

Outlook

Growth in South Africa’s manufacturing sector is increasingly being hindered by high energy, fuel and labour costs as well as the volatile Rand. FocusEconomics expects South Africa to experience the slowest growth out of all the major economies in the sub-Saharan region in 2016, with real GDP growth forecast to be 1.6%, revised down from previous estimates of 1.7%, and optimistically increasing to 2.1% in 2017. Following massive turbulence in the market in the first few weeks of 2016, some economists and analyst have revised GDP growth expectations downwards as low as 0.5%. With economic activity expected to remain subdued, manufacturers such as Nampak will continue to invest and look for growth opportunities outside South Africa. According to Nampak’s chief executive André de Ruyter, “The group’s operations in the rest of Africa are expected to continue generating growth in revenue and profit.”

Read More..
Manufacture of Metal Containers Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

Manufacture of Metal Containers Industry in South Africa 2019-03-15

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
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