EDITOUR PETplanet Insider Vol. 25 No. 12/24 www.petpla.net 12 How the growing demand for beverage, food and non-food products is being met in Jeddah German joint venture closures in Saudi Arabia by Kay Barton In the well-known holiday area of Jeddah, on the west coast of Saudi Arabia, the Saudi Can Company produces cans and plastic containers for food and non-food segments, such as lubricating oils, home and personal care applications. Founded in 1979 as a manufacturer of three-piece printed lubricating oil cans, the company has undergone a steady transformation in recent years to become a supplier of packaging of all kinds. Interview with Saudi Can Closure Ltd (SCCL) April 29, 2024 A long-standing business relationship with closure manufacturer Bericap eventually led to a joint venture to meet market demand through local closure production. We spoke with Mr Muntasir Alireza, Chairman of Saudi Can Closures Co. Ltd, and Mr Peter Loffler, Operations Manager and the General Manager of Saudi Can Closures Ltd, at the Middle East Road Show about the milestones and strategy that led to the current success. According to Muntasir Alireza, the idea for the joint venture arose from the growing demand in Saudi Arabia for beverage and lubricating oil closures. The Saudi Can Company had already been purchasing closures and caps from Bericap in Germany for many years and so the company finally decided to intensify the collaboration and promote Bericap closures on the market through local production and to be able to offer customised closure designs. The result was SCCL, which is now managed by an international team. He explained: “We are now targeting a market that requires closures for water, soft drinks, lubricants, personal care, household and industrial uses, as well as food segment. Saudi Can Co. initially provided an area within its facility, which allowed for a shorter ramp-up time for production. The initial production started with three injection moulding machines as well as a cutting and printing machine.” Production initially began with the manufacture of soft drink closures, which was switched to the production of water closures due to lower demand, and significant growth potential in the water segment. A short time later, additional machines to produce new water, lubricating oil and customised closures found their way into the plant. “The market for water closures has undergone several changes over the years,” said Mr Löffler. “Initial production met the demand for 28mm closures, followed by 30/25 closures. The last change to weight-reduced 29/11 closures dates back to 2014. And recently a high-grip version of 29/11 closure has been introduced” At the end of 2017, SCCL began building a separate and future-proof site of 10,000m2, as the space available at the Saudi Can Company had been exhausted by the constant expansion. In 2022, all relevant closure production lines were finally relocated to the new site and the portfolio was expanded considerably. The company now has 85 employees. “SCCL can offer available cap designs via Bericap and, if necessary, develop new cap designs,” Peter Löffler explained further. Depending on customer requirements and application, the necessary moulds are procured from Bericap in Europe or other regions. The majority of the closures remain in Saudi Arabia, while the rest are distributed in the GCC region, via Bericap Middle East established in UAE. The annual output is over one billion closures and, as we learned, the total material input in 2023 was just under 3,500 t of HDPE and PP. The customer base in all business sectors includes a good mix of global players as well as local leading brands. Commenting on trends and markets with particular potential, Mr Löffler said: “We are seeing very good growth in the food segment, edible oil, personal care and household chemicals segments. The local market is the largest in the region with high growth opportunities and is therefore our target area.” F.l.t.r.: Mr Peter Loeffler, GM of Saudi Can Closures Ltd. and Mr Muntasir Alireza, Chairman of Saudi Can Closures Ltd. EDITOUR
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