Rising energy prices have been much in the UK news in recent weeks, with customers of British Gas, for instance, facing swingeing 22% rises.
Consumers, however, are not alone in suffering; the packaging sector is seeing its profitability, and indeed its ability to invest for the future, badly affected, as Peter Davis, British Plastics Federation ceo, made clear in a letter to UK Energy Minister Malcolm Wicks last month. Davis points out that the UK plastics sector (which includes many packaging companies) is a £20bn turnover sector – hardly insignificant – and warns that, unless companies secure relief from high energy prices not reflected elsewhere in Europe, and the “highly unpopular” Climate Change Levy, at least 7,000 jobs could go in plastics alone. Other packaging material sectors are suffering too; the St Regis paper company, for instance, has cited doubling energy costs as a key factor behind its plans to close its Monmouthshire corrugated plant by May.
On a different note, the last two months have seen a rash of acquisitions and deals, including Rexam’s bid for Dutch dispensing system specialist Airspray, magnetic and smartcard manufacturer Magnadata’s purchase of UK label converter Norprint and news that overprinting equipment manufacturer Allen Coding is to become part of US conglomerate ITW. It seems the trend for consolidation, as brand owners seek larger suppliers, offering an ever broader range of services, shows no sign of diminishing.
Alongside the usual business, pack, material and machinery news, this issue examines the latest developments in confectionery and cosmetics/toiletry packaging and cartoning, with an interview on the latter topic with one of Europe’s leading single source packaging machinery suppliers, Bradman Lake. There is also in-depth coverage of DEFRA’s latest announcements on changes to the UK Packaging Waste Regulations.
Finally, don’t forget that RFID Solutions 2006, expected to be Europe’s biggest RFID event this year, (being staged by our sister publication RFID Solutions) takes place in central London on May 10 and includes a dedicated stream examining key RFID issues for packaging players.
Jonathan Baillie
