While mergers and acquisitions can have the reputation of asset stripping for short-term gain for a small number of shareholders, Plastec and RETAL have realised that the most beneficial way for generating profit is to maintain the same business model while acquiring expertise and valuing people as well as property and products.
Acquired in 2016 by the well-known packaging manufacturer RETAL, Plastec is an Italian company based in Ascoli Piceno that produces PET preforms and bottles for the food, cosmetics, detergent and pharmaceutical industries. Established in 2006 by Giampaolo Gatti and Vincenzo Pizi, the company has developed over the years while maintaining a friendly, family-like environment.
"There are so many of us here that have grown up together. Many children of friends and colleagues of my dad and Vincenzo have worked here and still work here,” explains Noemi Gatti, Giampaolo’s daughter and the finance controller at Plastec. “There’s a true sense of family because we all rely on each other and have seen the business grow from nothing.”
“We can fix equipment but we can’t fix people,” adds Gatti, stressing the importance of investing in human resources. “People being happy, motivated and rewarded at work is the most important thing. Loyalty goes two ways.”
RETAL appreciated this philosophy and, when finalising the acquisition, the board of directors agreed that Plastec must continue to run as it always had, but with the additional reach and support of a global group. This also brings numerous benefits in terms of business. RETAL already owned a facility in Italy and was keen to expand its local capability to better serve its multinational brand owner customers in the food and beverage industries.
Under the leadership of Renzo Imperia, then general manager at RETAL Italia, Plastec continued to flourish with the day-to-day management of Giampaolo and Vincenzo until 2021, when Renzo’s move towards retirement saw Giampaolo being named as general manager of RETAL Plastec.
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RETAL Baltic and RETAL Lithuania have both been awarded two wings from the Equal Opportunity Wings initiative, which operates in partnership with the Human Rights Monitoring Institute.
Equal Opportunity Wings – up to a maximum of three – are awarded as an acknowledgment of an organisation’s achievements in ‘mainstreaming equal opportunities in the workplace and creating a diverse and inclusive culture’.
Ruta Ziliene, HR Director for RETAL Europe & US, explains, “RETAL Baltic was approved for two wings out of three. We are pleased to have gained two wings at our first assessment and look forward to gaining our third wing as we continue to improve: our next step is to make a deeper analysis of the situation of equal opportunities in the company, and after to prepare and implement an Equality Plan. And we have no doubt that we are on the right path.”
Simona Zuriene, HR manager at RETAL Lithuania, says, “These two wings show that we are really starting to fly when it comes to the working conditions of our employees. We have more to do and we are working hard to make it happen, for the good of our people and our business.”
Sustainability Director Emmanuel Duffaut is highly supportive of this initiative. He adds, “I am very glad to see the combined efforts of RETAL Baltic HR and RETAL Group CSR being recognised in this official capacity. I am confident that the RBA equality plan, together with the upcoming anonymous whistleblowing channel, our Anti-discrimination policy, and awareness activities will get us the missing wing next year.”
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RETAL Baltic and RETAL Lithuania have both been awarded two wings from the Equal Opportunity Wings initiative, which operates in partnership with the Human Rights Monitoring Institute.
Equal Opportunity Wings - up to a maximum of three – are awarded as acknowledgment of an organisation’s achievements in ‘mainstreaming equal opportunities in the workplace and creating a diverse and inclusive culture’.
Ruta Ziliene, HR Director for Europe/US, explains, “RETAL Baltic was approved for two wings out of three. We are pleased to have gained two wings at our first assessment and look forward to gaining our third wing as we continue to improve: our next step is to make a deeper analysis of the situation of equal opportunities in the company, and after to prepare and implement an Equality Plan. And we have no doubt that we are on the right path.”
Simona Zuriene, HR manager at RETAL Lithuania, says, “These two wings show that we are really starting to fly when it comes to the working conditions of our employees. We have more to do and we are working hard to make it happen, for the good of our people and our business.”
Sustainability Director Emmanuel Duffaut is highly supportive of this initiative. He adds, “I am very glad to see the combined efforts of RETAL Baltic HR and RETAL group CSR being recognised in this official capacity. I am confident that the RBA equality plan, together with the upcoming anonymous whistle blowing channel, our Anti-discrimination policy, and awareness activities will get us the missing wing next year.”
The value of PET is clear thanks to Austrian social enterprise HELIOZ, which is committed to bringing safe drinking water to rural communities.
HELIOZ works with global plastic packaging producers to ensure PET water bottles are available in the communities in which the project is active, including parts of India and Uganda, so uncontaminated drinking water can be accessed by the people that need it.
Alina Eglhofer, HELIOZ marketing & communications, explains, “HELIOZ works with plastic packaging partners like RETAL; the PET bottles are a vital part of our toolkit, alongside WADI, our solar powered UV device that measures the solar disinfection of the contaminated water. PET bottles are used repeatedly over a six-month period to provide clean drinking water to communities that do not have easy access to what we take for granted, and then the bottles are recycled by our local partners; nothing is thrown away, everything has value.”
RETAL is delighted to support HELIOZ in its mission, with the ongoing lessons learned such as appreciating that so-called 'single use plastics' are anything but, and that local collection of used plastics bring opportunities for businesses as well as the environment. Emmanuel Duffaut, RETAL Sustainability Director, adds, “We are all inspired by the HELIOZ team and their dedication to empowering the local communities in which they work, as well as the acceptance that the local people instinctively see value instead of waste. RETAL is delighted to be partner to HELIOZ as we are keen to be involved with community projects that appreciate natural resources and cleverly utilize the value of PET, as well as raising awareness of PET recycling and collection.”
RETAL Baltic Films has recently invested in further Form-Fill-Seal testing equipment at its Lithuanian plant in order to deliver a complete analysis of the bottom and top packaging elements for its food and beverage customers.
Viktorija Griziene, general manager at RETAL Baltic Films, says, “We have integrated complete FFS capability to complement our long-standing expertise in films. We can advise our customers in selecting the right materials to get the optimum result.”
Food and beverage brands often face the challenge of a reliable seal where the bottom tray and the top lidding film meet, particularly if they change materials, so RETAL Baltic Films is keen to highlight how it can efficiently test how the two materials interact at its own dedicated testing facility. Griziene adds, “We’re constantly checking how it all works during the initial phase so the process is smooth on the customers’ production line, without the need for downtime.”
Valuable time is saved as well as valuable resources, with the on-site FFS testing capability from RETAL Baltic Films able to integrate sustainability-focused downgauging without compromising on the properties’ performance.
RETAL design engineer Andzejus Buinovskis presented at the AMI Plastic Closures Innovations Virtual Summit on 2nd - 3rd June, with his informative presentation provoking interesting questions in the Q&A session.
Andzejus created a video presentation highlighting his insight on the RETAL tethered closures journey and the circular economy. “I shared how RETAL has developed a series of tethered closures in accordance with the list of requirements from the leading brand owners. I was determined to add more personal insight too as everyone presenting was working to the same set of criteria.”
This smart approach lead Andzejus to highlight how collecting and recycling play a key role in the circular economy, as well as showing how reusing molds is a big contributor to sustainable development. He adds, “I was also pleased to include details of how Lithuania has integrated deposit schemes and that 80% of bottles come with the closures attached – even though they’re not tethered!”
The 'immersive virtual event' was attended by leading brand representatives, equipment manufacturers and packaging producers, with the presentations and following discussions showing how the focus on tethered closures, lightweighting and the circular economy are still at the forefront of packaging and beverage industry drivers.
With the UK plastic packaging market annually contributing around £11bn [1] to the national economy and employing over 85,000 people, it is clearly an important
industry, representing around 3% of GDP. Global plastic packaging producer RETAL has recently made the strategic decision to expand its salesforce in the UK and Eire, bringing in experienced negotiator Steve Harvey to help navigate its journey. Emma-Jane Batey reports.
An interesting collision of macro-trends sees increased globalisation and a focus on sustainability at the same time as a renewed appreciation for personal recommendations and honest communication. While it is possible to work with manufacturers on price or volume, or with smaller producers that deliver the personal touch, global brands and smaller brands that think big want it all. For brands that value all these at the same time, it can be hard to find a plastic packaging partner that ticks all the boxes.
RETAL serves customers in over 60 countries thanks to 19 production facilities worldwide and it has recently made the decision to expand its sales network to include the UK and Eire. Logistically-close production means that standard and custom preforms and closures can be delivered in volume in a matter of days, with just in time service and a dedicated single point of contact. RETAL Lithuania Sales Director Rimvydas Bazinys shares how the company plans to utilise its close contacts and ability to deliver agile solutions to food and beverage brands in the UK. “For many years we focused on each specific geographical area or a special performance such as multilayer properties, but as we have been increasingly working with global players and successfully delivering their orders to locations where we do not have production facilities, we realised that it is our portfolio, our people, and our production capabilities that matter the most.”
Rimvydas notes that ‘we can quickly deliver from RETAL plants to the UK; from Lithuania we can deliver to the UK in just four or five days’, so clearly the physical location of the production site is not the most crucial element of a mutually-beneficial situation. He continues, “Closures in particular are especially small, light and easy to transport, and we work with a large number of global food and beverage brands to create closures for products including juice, carbonated drinks, mineral water and milk. Our proven experience of working closely with global brands across local, national and international markets means we know how to respond to demand for increased standardisation within a specific market.”
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Keeping a global partnership local Producing more than 30 million beverage items annually across more than 60 manufacturing sites worldwide, Refresco lays claim to being the world’s largest independent bottler.
The company, which has grown rapidly thanks to a series of acquisitions over the past two decades, has a global partnership with PET preform specialist Retal that is tailored to suit regional markets.
“Maintaining quality is expected across all aspects of working with global partners, but that doesn’t mean that everything is the same everywhere,” says Gennadiy Khmelevskiy, global key account manager at Retal. “The details specific to local markets are important, as is knowing the preferences of each team in different locations.”
Retal produces PET and rPET preforms and HDPE closures for Refresco. The partnership, which began when Retal successfully tendered for a project with Refresco Benelux, hinges on being able to produce and provide the right product at the right volume.
Offering the correct technical solution with the best priceperformance ratio is, of course, imperative, Khmelevskiy says, but it’s what goes beyond this that makes the partnership. “As a dedicated sales and service person, it’s particularly important for me to diagnose any painpoints in the business and find an agile service solution that heals that pain. I also rely on our excellent service team, who can get to any Refresco business unit within 24 hours.”
Khmelevskiy is Retal’s single point of contact for Refresco and regularly communicates with Martijn Tempelaar, Refresco’s senior central purchasing manager, to ensure projects are progressing as agreed. “Keeping open communication with my Refresco contacts means that I stay aligned with Refresco’s headquarters in Rotterdam [in the Netherlands], as well as understanding the evolving needs of each business unit.”
Tempelaar agrees that being able to create solutions that can be quickly adapted for other locations helps to make a profitable partnership for both parties. “It is far easier to work with a smaller number of partners and repeat whatever elements of the project can be repeated, so we’re focused on the aspects that need to be changed. Building up trust is a longterm priority for us, and I trust the Retal team.”
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The macro-trend of operational excellence has unlimited interpretations when it comes to its micro-integration. To be able to purposefully and accurately define and manage a project that has clear goals is the function of project management, with operational excellence usually at its heart.
So how does that manifest itself in a global manufacturing company that is dedicated to high volumes and high quality – in a sector where regulations are changing? Emma-Jane Batey reports.
Operational excellence is defined as creating value for customers and shareholders thanks to the execution of its operations in the most efficient, effective manner. The idea being that two comparable businesses can have a clear winner depending on who works in the most excellent manner. At a time when globalisation means we can buy almost anything from almost anywhere, that excellence is what makes the difference – and wins the customer.
But what does operational excellence mean on a day-to-day basis? Is it just something that people say because they’ve heard someone else say it in a meeting, or do they actually know how to turn that zoomed-out concept into the hundreds of tiny actions it requires from an engaged team that know what they’re doing?
It’s said that the best time to start a pension is when you started working, and the second-best time is today. The circular economy is rather similar, in that ideal time to start would have been ages ago, and the next best time is now. Thankfully, we can look at how Sweden has done it. Rather than thinking ‘oh, it’s too late for the rest of us now’, we can just jump in and do the right thing from now on.
Let’s imagine that Sweden is our circular economy mentor. Let’s learn from how Sweden manages to recycle over 2 billion bottles and cans every year. Let’s copy how Sweden has integrated its deposit scheme in events arenas, shopping centres and grocery stores. Over 85% of all consumer packaging of cans and PET-bottles for beverages in Sweden is recycled, let’s do that too. There’s even a verb in Swedish - panta - that specifically means recycling packaging in collection points. We may or may not need a new verb.
A 36-year head start
A key element in the successful infrastructure that supports recycling in Sweden is Returpack, which was founded in 1984. Responsible for the Swedish deposit systems for metal cans and recyclable PET bottles for ready to drink beverages, Returpack is a privately owned company, owned by 50 percent by the Swedish Brewery Association (Sveriges Bryggerier), and by 25 percent each by the Swedish Food Retailers’ Federation (Livsmedelshandlarna) and the Grocery Store Association (Svensk Dagligvaruhandel).
An active supporter of Returpack is Spendrups Bryggeri AB, the biggest and most prominent Swedish family-owned and independent brewery, itself established in 1897 and today managed by the fourth generation of the founding family. Producing around 4 million hectoliters of beverages each year, Spendrups has contributed to building up globally recognised beer brands such as Heineken on the Swedish market, and its own sparkling water brand, Loka.
As a company that values both its heritage and its legacy, Spendrups is perfectly positioned to give an insight into how plastic packaging can be sustainable, with the advantages of being part of Sweden’s progressive infrastructure sits comfortably alongside its own dedication to long term responsibility.
Anna Lidström, Head of Sustainability at Spendrups, explains how the company’s philosophy and actions are in tune with how the Swedish beverage industry has had a circular approach to packaging for over 100 years. Lidstrom says, “The family spirit is strong at Spendrups; the long-term vision is that the company is supposed to be handed to the next generation, and so to do that properly, we must work in a way that is sustainable as well as profitable. We work in a circular manner through increasing use of recycled material in our packaging, striving to make our packaging 100% recyclable and utilising reusable packaging wherever possible.”
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