wifag//polytype Metal Packaging

Aluminum Bottles Dr. Bernd Ullmann

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Mall//Herlan in a nutshell

Manufacturing lines for the aerosol, Al-bottle and tube industry

Turn-key supply from A to Z

Container Development

Installation and ramp-up

Ca. 250 employees

Part of Wifag Polytype Group (1500 employees)

MH acquired the market leader in machines for shaping metal containers (Frattini) in 2009

MH introduced DWI technology in 2010

DWI lines sold and in operation for aerosols and for bottles

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Mall//Herlan CH Mall//Herlan DE

A multi-national company

Mall//Herlan IT Wifag-Polytype

German engineering meets Swiss precision and Italian Genius

Mall//Herlan MB

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Market : Bottles

The bottle market is dominated by glass

• Regarded as premium

• Unique shapes

• Strong on on-trade sales

• Specific filling equipment

• Strong in Crown closure (beer)

• Scew caps for CSD

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Market : Metal

Metal beverage packaging today means beverage cans

• Gas tight

• Optimum recycling

• Fast filling

• 250+ bn cans per year

• Safe

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Market : Take the best of two worlds

Combine the premium from the glass bottle with convenience of the bev can

Bottle Can Alu

bottle

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• 4 out of 8 refillable containers are made of glass

• 1 out of 18 containers are made of metal

• 14 out of 18 containers are reclosable

• 7 out of 18 containers have (more or less) straight walls

Reclosability required

Shaping required

Soft drinks tend to shaped bottles

A closer look to a CSD brand

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• 3 out of 18 containers are made of metal

• Plastic basically not present

• 0 out of 18 containers are reclosable

• 17 out of 18 containers have (more or less) straight walls

Reclosability maybe not required

Shaping obviously not yet used widely as a marketing instrument for beer

Beer tend to straight wall bottles

A closer look to a beer brand

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Mall Herlan helped to make several Alu bottles

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Two types of Alu bottles

Impact Extrusion

DWI

Impact Extrusion (IE) and Draw and Wall Ironing (DWI) are two ways to make bottles

Yes, but what is a large number

???

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Alu bottle market : Perspective 1

Extrapolate from existing markets to 2013 + 5 years

Conservative Optimistic (Japan extrapolation)

No of bottles related to bev cans (Assumption of the scenario)

2% 7%

No of bottle per year in 5 years 5 bn 18 bn

Current No of bottles 3 bn 3 bn

Increase 2 bn 15 bn

Increase per year 400 mio 3 bn

= No of new 200 cpm lines p.a. 6 45

= No of new 500 cpm lines p.a. 2 20

= No of new 2000 cpm lines p.a. n/a 3

There will be 200 cpm and 500 cpm lines, 2000 cpm lines is unlikely

Alu bottle market : Perspective 2

250+ bn beverage cans are made with lines making ca. 1bn cans per year

This is ca. 0.4% of the world market on one line

If we transfer this number to our two scenarios, we get:

5 bn * 0.4% = 20 mio bottles per line and year

18 bn * 0.4% = 71 mio bottles per line and year (This is about a 200 cpm line)

If we like to maintain risk minimizing, competition, flexibility, logistics cost, then a 500 cpm bottle line is already fast and seems to be more than appropriate for the market in the coming years

Two perspectives indicate that bottles will be made with 200 to 500 cpm lines

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Learn from beverage cans to understand the supply chain

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Necker

Standard line layout, most machines well known, smart innovations where needed

Coater, Decorator, O/V and ovens

Cupper

Bodymaker Accumulator Accumulator Accumulator

Pre- Washer

Inside spray

IBO

MH Hi-Flex™ 200 DWI

Washer

Accumulator

Trim/Brush

Post Washer

DWIFront-End Standard line

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Use one uncoiler/cupper and two identical lines to get 400 cpm total

MH Twinline 400

400 cpm is just the expansion of a 200 cpm line grow with demand, expand whenever you want

Fully utilize the uncoiler and cupper

Less labor

Efficient coil supply, less logistics

Two decos two lithos at the same time

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A dedicated 500 cpm bottle line

MH Hi-Flex™ 500 DWI line

500 bottles per minute

Fully integrated line, turn-key from A to Z

New deco area with continuous printing machines

New buffer system – MH Flexstore™

The Bottlemaker for finishing cylinders incl. necker and postwasher

It all starts with the container

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Together we will get Alu bottles easier in the market than we have thought so far

Work on container and machines in parallel to save time to market

Mall Herlan can help to design the bottle straight from the beginning

The bottle can be tested and approved even before the line is installed and start operation

Mall Herlan can manage the total project incl. container design

Mall Herlan can help to assess cost of container

Define bottle Define

manufacturing process

Make samples Test samples

Define machines

Make machines

Install machines

Ramp-up

Mall Herlan Container Development

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It’s not only design – it’s passion, team work and a lot of sweat

Definition of the bottle starts with cost

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Mall Herlan helps to find the technology that solves the task

Clear statement on capex incl. auxiliaries

Help on plant layout

Metal cost calculation

Labor, Energy, etc

Material choice and cost

Total cost of container

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20

40

60

80

100

120

IE DWI 200

DWI 500

Co

st in

% c

om

par

ed

to

IE

Summary

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Aluminum bottles are closer than you may think

You can get proven machines for making bottles

You can decide on today’s volume – risk free and perfectly utilized lines

You can expand in the future – grow with demand

You can use existing Mall Herlan experience in container design

You can ask us to develop bottles and get your special samples made by us

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Thank you.