Greif concentrates on industrial markets

OPEN AND SHUT CASE

STRATEGY • GREIF HAS RECENTLY TRIMMED ITS PORTFOLIO THROUGH INVESTMENT AND DISPOSALS, AIMING TO FOCUS ON WHAT IT DOES BEST

GREIF HAS TAKEN a minority shareholding in Centurion Container, one of the pioneers in the intermediate bulk container (IBC) reconditioning business, to expand its network in North America. “Greif is pleased to be taking a minority stake in Centurion and agreed to a clear path to full ownership,” says Ole Rosgaard, Greif Group president, Rigid Industrial Packaging & Services and Global Sustainability. “This deal and its partnership will enable us to provide our customers with an enhanced sustainable packaging solution along with the economies inherent in reusable packaging.”

Elliot Pearlman, chairman of Centurion, adds: “We are excited to partner with a company like Greif that will provide us with global recognition and the added resources needed to better serve our customers throughout our expanding industrial footprint.”

Meanwhile, in response to growing demand for sustainable packaging, Greif has invested in two new Kautex CoEx blowmoulders for its North American drum manufacturing plants. “The multi-layer technology allows us to encapsulate up to 60 per cent post-consumer resin (PCR, which often comes from recycled drums) while still meeting the rigorous performance requirements,” says Kevin Kling, plastic and IBC development director for Greif.

“Plastic drums are already a fantastic packaging solution due to their ability to be reconditioned and reused many times and this technology allows us to evolve with the growing demands of the planet.” Drums produced on the new lines will expand Greif’s EcoBalance portfolio, which includes products made with recycled content and/or innovative designs to reduce material requirements.

GREIF HAS ADDED NEW PLASTICS DRUMS PRODUCTION DECLUTTERING THE PORTFOLIO On the other side of the ledger, Greif has completed the sale of its Consumer Group Packaging (CPG) business to Graphic Packaging for $85m in cash. Proceeds from the sale will be used to pay down debt.

“Given our industrial focus, we were not the rightful owner of the CPG business,” says Pete Watson, Greif’s president/CEO. “The sale helps us de-lever our balance sheet, optimise our capital allocation plans and refocuses our business on our core industrial franchise and strategic growth priorities in IBC production and reconditioning and containerboard integration.”

Elsewhere, Greif has announced the closure of its plastics and fibre drum plant in La Palma, California. Regional plastics drum business will be serviced through the Merced plant and fibre drums through Morgan Hill, both also in California. “The widespread and diverse economy throughout California requires a more strategic and dedicated approach to the unique business dynamic,” Greif says.

“Investments have been made to modernise and expand capabilities at both of these two locations. Morgan Hill will have the capability to make all products previously made in La Palma, as well as have increased capacity to service peak demands during the harvesting season. Earlier this year, a plastic blowmoulding machine was installed in Merced, and additional capacities will be brought online to double our production capacities from this location.”

In other news, Greif has elected Robert M Patterson, chairman, president and CEO of PolyOne Corp, to its board of directors. Patterson has extensive financial and global operational experience in manufacturing and distribution businesses with expertise aligned to Greif’s end markets. “Bob’s deep financial and global operational experience will be a valuable asset to Greif,” says Mike Gasser, chairman of Greif’s Board of Directors. “The values Bob has helped to instil at PolyOne – collaboration, innovation and excellence – and his customer-centric mentality make him an ideal Board member and we are honoured to have him join us.” www.greif.com