Packaging
Strategy for continued growth
Wednesday 07. May 2008 - New production capacity at the Wuppertal plant / Big investment in China / Cooperation with Schlüter for pharmaceutical customers / Sales office in the Ukraine now open
The Edelmann Group, one of Europes leading manufacturers of folding boxes, is steadily pursuing its strategy for growth. “Ever increasing globalisation, continued investment in modern equipment and expansion of the services we can offer remain the fundamental components of our long-term strategy. We are still aiming for continuous growth both in Germany and abroad,” explains Dierk Schröder, spokesman for the Edelmann management team. With its recently announced measures package, Edelmann has taken an important step towards achieving its sales target of 185 million euros in 2008.
New production capacity in Wuppertal
Edelmann is to invest a total of 3 million euros in new production capacity and modernisation of the machinery at the Wuppertal site of its subsidiary Artur Theis GmbH & Co. KG. The production and administration departments should be ready to move by September 2008.
The Theis main factory already has ultra-modern machinery for making pharmaceutical packaging, allowing it to be very flexible in what it can deliver. Four offset printing machines with paint units will mean that it is able to print all of the packaging formats most commonly used in the pharmaceutical industry, in multiple colours. A number of stamping and gluing machines will supplement the production facilities at this company, which has been in business for over 70 years.
Specialist in fraud prevention
Now that product piracy is such an international phenomenon even in the pharmaceutical industry, Theis has worked hard on fraud prevention measures for its packaging. In its development department with two employees, expertise and experience are constantly being further developed in order to make fraud unprofitable as well as make it easier to detect counterfeit products. Since even the safety features can be counterfeited, specialists, such as those at Theis, must continue to develop new and more complex printing specifications, always staying at least one step ahead of the imitators. There are now over 30 safety features that can be printed or embossed on packaging in Wuppertal, either invisibly or so that the end user can clearly recognise them. The pharmaceutical industry uses these possibilities both domestically and abroad to protect retailers and consumers from ineffective or dangerous counterfeit medicines.
Big investment in China
As a result of the takeover of Theis, last year Edelmann became a 51% stakeholder in Beijing Theis Pharmaceutical Packaging & Printing Ltd. During the first quarter of 2008, this holding was increased to 75%. The international customers of this joint venture include several well-known international pharmaceutical companies. Since the Chinese market continues to be one of the fastest growing in the world, Edelmann sees good prospects there and therefore plans to continue to modernise its production facilities. “For example, in the second quarter of 2008, we will start running a new printing machine and a CTP system,” explains Schröder.
Cooperation for the pharmaceutical industry
To extend the range of services it can offer its pharmaceutical customers, in February Edelmann signed a cooperation agreement with Schlüter Pharma Logistics. Founded in 1918, this specialist in printing for pharmaceutical packaging has a production site measuring over 13,000 square metres at its Schönebeck / Magdeburg site. “Schlüter can offer everything under one roof, from materials procurement and processing, commissioning and warehousing through to just-in-time delivery,” managing partner Andreas Schlüter emphasises.
The company, which generated sales of 20 million euros last year, has machinery including two- to ten-colour offset printing machines and cutting and folding production lines with code readers. The 110 employees all have extensive experience in the production of package inserts, brochures, outserts, cover sheets and base sheets. The production facilities have complied with GMP requirements since 2002, the HACCP system has been utilised for 5 years, and the quality control system is certified in accordance with DIN EN 9001:2000. The automated product information system means that batches can be accurately identified and traced from the supplier stage through to the end product by scanning a barcode.
Through the cooperation agreement, Edelmann and Schlüter are set to become system suppliers for pharmaceutical customers. In the future, these customers will be able to obtain folded boxes, wallets, blister packs and package inserts, as well as various logistics services, all from a single source. “In this way we can satisfy the wish of the pharmaceutical industry by being able to be able to meet all of its packaging needs, including various associated services, in a single deal,” explains Schröder.
New sales office in the Ukraine
At the start of the year, Edelmann opened up a new sales office in Lvov/Ukraine. Bohdan Kulczak, previously director of a well-known company in the printing industry, is responsible for operations there. The main focus of the sales office will be on the cosmetics and confectionery industries. The national market leader for chocolate and a well-known cosmetics company in Lvov were among the first customers.
Further growth in sales abroad
In the last fiscal year of 2007, the Edelmann Group, with a total of 1350 employees, generated sales of around 180 million euros. This represents an increase of 13.9% over the previous year (158 million euros). About 60% of sales were made in Germany (62% in 2006). 40% of sales were made abroad, mainly in France, the Benelux countries, Great Britain, Poland and the USA.
The Edelmann Group has nine plants in Germany, France, Poland and China and also has sales branches in Great Britain, the USA and now the Ukraine.