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Manufacture Wooden Containers South Africa

The Manufacture of Wooden Containers in South Africa 2020

Carol Knoll | South Africa | 13 October 2020

The Manufacture of Wooden Containers in South Africa 2016

Alex Conradie | South Africa | 24 June 2016

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Report Coverage

This report focuses on the manufacture of wooden containers, including pallets, crates, bins, boxes, wine barrels, vats and cable drums. It includes information on the state and size of the sector and factors that influence it. There are profiles of 32 companies including FS Smit & Co, which started making wine barrels in 1880, York Timbers, the largest manufacturer of wooden containers in South Africa, and Kimmo, the first company in South Africa to develop and manufacture a corrugated fibreboard pallet.

Introduction

The subject of this report is the manufacture of wooden containers in South Africa. These include pallets, crates, bins, boxes, wine barrels, vats and cable drums. Prior to the outbreak of the coronavirus pandemic, difficulties faced by the wooden container manufacturing sector included rapidly-rising input costs, imports of cheap wine barrels and the use of alternative materials. During the coronavirus lockdown, the forestry sector was declared an essential service, and 60% to 70% of businesses relating to wood products, such as those used for packaging and transport of essential items, were able to continue operating. During lockdown, pallets were used to move goods such as food, medicine and sanitisers. Most businesses manufacturing wooden container products were, however, operating at reduced levels due to market disruption. The ban on local alcohol sales during lockdown had a significant impact on wine farms, cellars and related businesses, and these businesses and jobs have been severely threatened.

Strengths

• Pallet pooling forming a circular economy through returns, repairs and rentals has become a cost-effective method of operation.
• There are established companies in this sector.
• There is an increase in supply of Forestry Stewardship Council certified wood for export of products in the sector.

Weaknesses

• Decline in the number of cooperages manufacturing for the wine and spirit sectors.
• Heat treatment in pallet manufacture requires expensive equipment.
• High costs of importing oak from Europe and the US.
• There are small companies manufacturing pallets at unsustainable prices often leading to business failure.

Opportunities

• Increasing demand for containers due to higher production of goods in many industries, including the export trade.
• Waste solutions, along with green energy and water savings, and other sustainable environmental and social practices, are producing new sought-after products.

Threats

• Cooperages are replacing barrels with alternatives such as the use of oak blocks, chips or staves, which are sometimes believed to be as effective as the barrels.
• Energy and labour costs are increasing.
• Recycling is reducing demand for new products.
• Winemakers regard imported barrels as superior products, posing a threat to local manufacturers.

Outlook

Vinpro, representing 2 500 wine producers, cellar and other industry stakeholders, said that with the quantity of surplus wine in cellar tanks and barrels due to the effect of the lockdown on wine sales, there may be inadequate numbers of containers for the new crop, driving the need for new containers including wooden barrels. Businesses restoring barrels could also benefit. Vinpro’s managing director Rico Basson said the unbanning of alcohol sales “...might be too little too late. Many wine businesses have already closed down and a long road to recovery lies ahead for the industry as a whole.” According to the Liz Palmer wine newsletter, the alcohol industry “ is believed to have lost more than R7bn since the introduction of sales restrictions in March 2020. Following the initial nine-week ban on local sales, five-week ban on exports and second domestic sales ban.” Vinpro estimates that more than 80 wineries and 350 wine grape producers could go out of business over the next 18 months, with a potential loss of more than 21,000 jobs across the value-chain. Palmer’s newsletter said Vinpro is working with industry partners on a disaster recovery plan and to rescue the 2021 season, addressing bottlenecks and challenges at the Cape Town Port and formulating solutions to reduce a current wine surplus of around 300 million litres. The Freedonia Group forecasts that global demand for wood pallets would rise 3.7% per year to 5.8 billion units by 2024, valued at US$52.5bn. Coronavirus presented opportunities in many countries, including South Africa, as the pallet industry was considered to be essential for the storage and transport of food and health products, and could continue operating under certain restrictions internationally.

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The Manufacture of Wooden Containers in South Africa
The Manufacture of Wooden Containers in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Manufacture of Wooden Containers in South Africa 2016-06-24

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 8
4.1.2. Regulations 8
4.1.3. Enterprise Development and Social Economic Development 9
4.2. Continental 11
4.3. International 11
5. INFLUENCING FACTORS 13
5.1. Economic Environment 13
5.2. Coronavirus 13
5.3. Recycling 14
5.4. Technology, Research and Development (R&D) and Innovation 15
5.5. Environmental Concerns 16
5.6. Labour 17
6. COMPETITION 20
6.1. Barriers to Entry 22
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 24
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 25
APPENDIX 1 26
Summary of Notable Players 26
COMPANY PROFILES 31
ADVANCED CRATING SOLUTIONS (PTY) LTD 31
AGENTIMBER (PTY) LTD 33
ALORA PALLETS (PTY) LTD 35
BASFOUR 2783 (PTY) LTD 37
BOLAND BINS (PTY) LTD 39
CARGO HANDLING SPECIALISTS (PTY) LTD 41
CHEP SOUTH AFRICA (PTY) LTD 43
DAVIN WOODWORKS CC 47
DURBAN PALLETS (PTY) LTD 49
EKURHULENI CRATING SOLUTIONS (PTY) LTD 51
ELITE PALLET SERVICES (SA) (PTY) LTD 52
ENDO PACK (PTY) LTD 53
EPLANK TRADERS CC 54
F S SMIT AND CO-MANUFACTURING DIVISION (PTY) LTD 56
FORESTA DRUM MANUFACTURING (PTY) LTD 57
INVENTIVE WAYS 113 CC 59
J SMALLCOMBE 61
JOHANNESBURG TIMBER AND BOX CC 62
KIMMO (PTY) LTD 64
LOUNICS INTERNATIONAL (PTY) LTD 66
NATAL BOX FACTORY CC 68
PACKSOLVE (PTY) LTD 70
PALBIN (PTY) LTD 72
PALLET AND CRATE KING CC 73
PALLET LINK (PTY) LTD 75
PALLET SUPPLY COMPANY CAPE (PTY) LTD 77
ROSSLYN PALLETS AND CRATES CC 78
SA WINE BARRELS (PTY) LTD 79
SPRINGBOK BOX (PTY) LTD 81
THALES SERVICES (PTY) LTD 83
TWEEDIE PALLETS CC 85
YORK TIMBER HOLDINGS LTD 87

Report coverage

The Manufacture of Wooden Containers describes current conditions in the local sector and factors influencing the success of the industry. The report profiles 23 companies including market leader in the wood products sector, York Timber Holdings Ltd, which employs 2,724 people in its processing plants where softwood logs are converted into a wide range of timber products for the construction, furniture, cable drum and pallet industry. Also profiled are small, stable companies that have been in business for several decades such as Natal Box Factory CC that manufactures 360,000 pallets per annum and Tonnellerie Radoux (SA) (Pty) Ltd t/a Radoux, whose 11 employees are involved in the manufacture of 1,500 oak wine barrels every year.

Report coverage

The Manufacture of Wooden Containers describes current conditions in the local sector and factors influencing the success of the industry. The report profiles 23 companies including market leader in the wood products sector, York Timber Holdings Ltd, which employs 2,724 people in its processing plants where softwood logs are converted into a wide range of timber products for the construction, furniture, cable drum and pallet industry. Also profiled are small, stable companies that have been in business for several decades such as Natal Box Factory CC that manufactures 360,000 pallets per annum and Tonnellerie Radoux (SA) (Pty) Ltd t/a Radoux, whose 11 employees are involved in the manufacture of 1,500 oak wine barrels every year.

Introduction

This report focuses on the manufacture of wooden containers in South Africa. According to the Sector Skills Update: 2015-2020 of the Fibre Processing and Manufacturing Sector Education and Training Authority (SETA), there are 50 large, 53 medium, and 516 small companies in the wood products sector. Total employment in the sector stood at 19,485 in 2014, while sales figures for products of wood were R1.712bn in April 2016, according to the Manufacturing: Production and Sales, April 2016 report of Statistics South Africa (Stats SA). Challenges faced by the wooden container manufacturing sector include rapidly rising input costs, and increasing imports of wooden wine barrels.

Strengths

• A number of established companies have been part of this sector for several decades.
• Different sized companies that serve different markets.
• There is an adequate supply of wood for producing pallets, crates, boxes, bins and cable drums.

Weaknesses

• Barrel manufacturers supply only one sector, the winemaking sector.
• Fly-by-night companies in the pallet manufacturing industry that supply pallets at unsustainable prices.
• Most local wooden pallet manufacturers do not have heat treatment facilities.
• Oak for wine barrel production has to be imported.

Opportunities

• Increasing demand for the sector’s products due to higher production and exports of goods in various industries.

Threats

• Imports of wine barrels pose a threat to local manufacturers.
• Increasing costs of electricity and labour in particular, pose a threat to the sector’s profitability and sustainability.
• Lack of water as a result of continued and/or worsening drought.
• Move to using AOPs instead of barrels.
• Plastic pallets are expected to have the highest growth rate in future.
• Recycling of wooden containers leads to lower demand for new ones.

Outlook

Growing investment in manufacturing facilities, especially in emerging countries such as India and China, is expected to increase the global demand for pallets, with researchers predicting 5% annual sales growth through 2017. Locally the National Agricultural Marketing Council expects South Africa’s production and exports of fruit for the 2015/16 season to decrease as the drought and heat take their toll on fruit crops. However, according to NAACAM News March 2016, exports of both vehicles and vehicle components should continue to increase, while the National Association of Automobile Manufacturers of South Africa (NAAMSA) is predicting record production of cars during 2016. Therefore, despite an expected reduction in fruit production and exports, domestic demand for wooden containers is expected to increase, at least over the short-term, as a result of the growth in vehicle component production and exports.

Read More..
The Manufacture of Wooden Containers in South Africa
The Manufacture of Wooden Containers in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Manufacture of Wooden Containers in South Africa 2020-10-13

R 1 900.00(ZAR) estimated $104.58 (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 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 10
4.2. Continental 11
4.3. International 11
5. INFLUENCING FACTORS 12
5.1. Economic Environment 12
5.2. Export and Production Volumes 12
5.3. Recycling 13
5.4. Technology, R&D and Innovation 13
5.5. Labour 15
5.6. Environmental Concerns 16
6. COMPETITION 16
6.1. Barriers to Entry 17
7. SWOT ANALYSIS 18
8. OUTLOOK 19
9. INDUSTRY ASSOCIATIONS 19
10. REFERENCES 19
10.1. Publications 19
10.2. Websites 20
COMPANY PROFILES 21
AAGK Pallets CC 21
Afripallet CC 23
Agentimber (Pty) Ltd 25
Basfour 2783 (Pty) Ltd 27
Boland Bins (Pty) Ltd 29
Cargo Handling Specialists (Pty) Ltd 30
CHEP South Africa (Pty) Ltd 32
Davin Woodworks CC 34
Durban Pallets (Pty) Ltd 36
Foresta Drum Manufacturing (Pty) Ltd 37
Industrial Timber Supplies (Pty) Ltd 39
Inventive Ways 113 CC 41
Johannesburg Timber and Box CC 43
Lounic's Timber World (Pty) Ltd 45
Natal Box Factory CC 47
Palbin Cape (Pty) Ltd 49
Pallet and Crate King CC 51
Pallet Link (Pty) Ltd 53
Pallet Supply Company Cape (Pty) Ltd 55
SA Wine Barrels (Pty) Ltd 57
Springbok Box (Pty) Ltd 58
Tonnellerie Radoux (SA) (Pty) Ltd 60
York Timber Holdings Ltd 62