PETpla.net Insider 01+02 / 2011

PET TOP TALK 12 PET planet insider Vol. 12 No. 01+02/11 www.petpla.net needs; where a packaged beverage is appropriate. I am not pessimistic looking at the future potential of bot- tled water. PETplanet: Any particular Husky input on the issue of recycling? John Galt: We address the con- troversial issue with a variety of differ- ent technologies, one example being our HyPET Recycled Flake system, to reliably provide food grade packag- ing out of non-food grade feed stock, i.e. unclean, but washed flakes. We use the filtration at the output of a twin screw extruder and before the shot pot to achieve a continuous rather than a discontinuous flow of material through the filters. PETplanet: In PET conversion the big innovative developments seem to us things of the past. No further increase of cavitations, no spectacu- lar shortening of cycle time can be expected. Today’s innovations are marginal – mainly to adjust existing technology and improve productivity. John Galt: It depends how we define innovation and also what you call spectacular. I think one can expect the advancement of technology within the context of PET to take two directions. Both directions are innovative. First we look at what it should take to convert a PET pallet into a preform and ultimately into a bottle – from a theoretical view- point, excluding the particular machine execution. We hold this up as being our ideal, the goal we ought to have. And then we map out the existing produc- tion processes - in great detail from the context of resin, from energy, from cycle and from other sources of waste. And we investigate whether there is a gap between the current execution and that idea. The gap in our mind is waste - which will ultimately result in an evolu- tion of the current platform combined with a revolution to eliminate some of the major barriers to waste. It will take a couple of years from now, but we will work on the elimination of waste. PETplanet: And the second inno- vative direction? John Galt: We simply look at the production of a PET preform. We are focused on lowering the cost of pro- duction and improving the quality and improving the flexibility for customers and design. Energy in the conversion process - electrical versus hydraulic - is only one very small percentage of the energy that should concern engi- neering and physics. A large amount of energy is lost in the entire process from preform production to the capped filled and labelled bottle stem to heat, to noise, to other things – and should be saved. The way the PET preform in a plant is conveyed from the preform machine up to the point where it’s ultimately blown and filled and capped and labelled. That entire process is today relatively immature compared to what it could be. So, that’s what I mean by barriers to be eliminated. PETplanet: If you claim line responsibility, does it mean that the owner of the blowing and filling line will also take over the injection mould- ing in-line? John Galt: Existing markets for converters will remain. Other markets – mainly brand owners - will develop, with an opportunity to integrate a sig- nificant proportion of the value chain, including injection moulding. I think the two markets can properly coexist. PETplanet: In 2001, we did an interview with Robert Schad, the founder of Husky and President at that time. Now since 2005, you, John Galt, are in charge of Husky. Big question: What has changed in the last five years? If I run through a list of the various topics, could you add your comments? Galt: Absolutely. PETplanet: Question 1: Owner- ship changed in 2007. Onex, a private equity financial investor, took 98 % of shares and took charge of the direc- tion of the company. Any comment? John Galt: Onex didn’t take charge of the direction of the com- pany at all. What was important to us in management, what was important to Robert at the time of the transition is that there are three fundamentals. Ownership, leadership and strategy are completely aligned on where we were taking the business. This we have achieved. PETplanet: Any particular advan- tage to being owned by a financial investor? John Galt: I don’t really see it very differently. When we were a public company, Robert still maintained a majority ownership position and therefore it helped to influence the direction. Under Onex, we’re a private company, there’s some cost savings due to not having to report publicly. we handle The management of the business the same as always. PETplanet: Almost all opera- tive Husky management remained in office? John Galt: Yes. PETplanet: After the acquisition, no casualties, no losses? John Galt: Not those that I didn’t initiate. There’ve been changes, but the changes were all my decisions and those of my team, not anybody else’s and they’ve all been aimed at building a better group of people, a better team. PETplanet: The acquisition took place in 2007. Under normal circum- stances financial investors buy and get out, sell to other investors within John Galt (centre), President and CEO Husky Injection Molding System, is top-talk- ing with Wolfgang von Schroeter (right) and Alexander Büchler (left)