SEPTEMBER 2020 ISSUE /20202METAL CONTAINER MANUFACTURERS’ ASSOCIATION

mcmamcmaN E W S

Jt. Secretary’s Message :

A s t h e l o c k d o w n e n d s a n d t h e countrywide industries start to slowly normalize their business activities, the economic situation around the country is still requiring a lot of support financially as well as procedurally so as to create ease in d o i n g b u s i n e s s d u r i n g t h i s p r e normalization phase.

Jt. Secretary’s Message :

Apart from the challenges caused by this pandemic, which each industry is facing, our metal packaging industry has also been facing certain other challenges which we are trying to overcome slowly for the our metal container industry to sustain and grow:

1. Anti-Dumping Duty – As we know, Anti-Dumping Duty was imposed on the imports of Tin Plate and Tin Free Steel, making the imports costlier and which in turn caused the local prices of these products to rise. MCMA represented to the Steel & Finance Ministry and also had virtual meetings with Addl. Secretary Steel and Hon'ble Finance Minister on this issue. We understand the matter is under consideration.

2. Steel And Steel Products Quality Control Order – As the Government has again made it mandatory for BIS certification to be taken by all suppliers of Tin plate and Tin Free Steel from various countries, it has become an unnecessary hassle to the suppliers who are of the opinion that their quality compliance is already much better than that required by BIS.

3. Both Tin Plate and Tin Free Steel have only 2 and 1 manufacturers respectively (JSW and TCIL for Tin Plate and only TCIL for TFS) and due to these restrictions on imports, the industry is facing instability in prices due to monopolized situation. Both these items jointly are of a very negligible quantity and constitute less than 0.5% of the total domestic steel consumption.

4. To ensure smooth functioning of all the manufacturing facilities, the financial support in terms of credit facilities is a must now for our industry.

5. Also, nowadays there are various problems with ports and shipping companies due to exorbitant prices of THC, CFS and others. This should be monitored by the government so as to have a smooth operation with the ports and shipping companies.

Metal packaging is the best packaging solution as compared with any other packaging products such as plastic, paper, etc. as it is more stable, hygienic, eco-friendly, most recyclable and has the ability to sustain outside climatic changes and keep the inside product safe with a longer shelf life.

Thus, like Anti-Dumping Duty, we request the government to do away with the Steel And Steel Products Quality Control Order so as to boost the growth of the industry, as there is already FSSAI in place to protect the quality and safety of the product and to keep it upto the standards required for the food industry.

Stay Safe.

Warm Regards,

P R Kabra

MCMA President

Mr Sanjay Bhatia was FICCI CSMSME President from 2013 – Sept 2020.

During his tenure, Mr Bhatia has worked very hard on behalf of MSME Companies to convince the Government of India to be more amenable to the needs of the MSME sector, particularly the metal packaging industry.

Even after stepping down as FICCI CSMSME President, we are sure Mr Bhatia will continue to take up the cause of the MSME sector at different fora of Govt of India.

Editor

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DECORATION AND SUSTAINABILITY TO BOOST OUTLOOK FOR METAL PACKAGINGFive technology innovations and trends are creating new value in metal packaging, making it a more attractive option for consumers and manufacturers.

According to The Future of Metal Packaging and Coatings, the global metal packaging and coatings market is valued at almost $105.5 billion in 2018. Total value is forecast to increase at 1.6% year-on-year to 2023, pushing overall value to $114.4 billion.

Much of this figure can be attributed to beverage cans that continue to dominate the market, holding a share of almost 45%. Although global demand for beverage cans has been affected by falling sales of many forms of carbonated drinks, it has also benefited from the surging popularity of energy drinks and craft beer. Future growth in demand is likely to come from other sectors of the beverages industry, such as packaged water, wine and RTD (ready-to-drink) tea and

Asia will remain the best-performing region within the global metal packaging market in the period leading up to 2023. During this time, value sales are anticipated to increase by more than 18%, as the region overtakes North America to become the world's largest.

Smithers research reveals five trends and technology developments that are influencing the metal packaging market landscape.

Decorative techniques – a world of creativity

To gain a competitive advantage, many brand owners are now focusing more upon improved visuals for metal packaging products. Many have embraced digital printing, which offers numerous opportunities for developing bolder and more striking visuals, and eye-catching colours.

Not only do metal cans offer a 360-degree canvas, but digital printing is ideally suited for many of the limited-edition products now being launched across the food and beverages industry, due to its effectiveness over shorter print runs.

The metal packaging industry is also making greater use of tactile features that appeal to a range of senses. Techniques such as embossing and debossing have become more widespread, and have been adopted for leading beer brands, such as Heineken and Stella Artois. Tactile effects are usually created using an overvarnish, which changes the appearance and feel of the can itself – for applications such as beer, brewers are often keen to add a 'wet' or 'frosted' look to their packaging.

Another notable example has been the 'Matte Impact’ this creates a surface structure for the can which reflects light differently and therefore provides a matte appearance.

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coffee drinks.

Aerosol innovation

The aerosols market, which will increase across 2018-2023, continues to witness the emergence of product innovations aimed at improving convenience for the consumer and addressing environmental concerns.

1 The replacement of hydrocarbons with compressed gases as the propellant

1 Innovation in bi-compartmental aerosol technology, which incorporates a plastic inner bag to separate the product from the propellant.

During the next five years, penetration of dual-dispensing aerosol systems is expected to increase within applications such as pharmaceuticals, cosmetics and technical products, like glues.

Light weighting

Light weighting has been a leading trend within the metal packaging industry over the past decade, in sectors ranging from food and beverage cans to aerosols. This enables packaging manufacturers and brand owners to reduce their environmental footprint and therefore improve their sustainability credentials, while also reducing costs. By developing more lightweight containers, less material is used, while the energy used for distribution and logistics purposes is also cut.

Reductions in weight have been achieved via measures such as switching from steel to lighter-weight aluminium, a trend which is being led by leading metal packaging manufacturers. First launched in 2014, ReAl cans feature 25% recycled material and weigh 11% less than standard products.

Recycling

Metal packaging products enjoy a tremendously positive image as far as environmental sustainability and especially from a recycling perspective, since metal is a permanent material that can be recycled many times without impinging on its performance.

Aluminium beverage cans represent the world's most recycled drinks container, and global recycling rates have now reached 75%. Over 3 million tonnes of aluminium and steel are now recycled in Europe every year, while the industry continues to work toward a recycling target of 80% of all rigid metal packaging by 2020.

Switch away from BPA

Food cans are typically coated with an organic layer to protect the can's integrity from the effects of the food and to ensure that a chemical reaction does not take place between the two. The metal packaging industry is still under pressure to substitute away from bisphenol-A (BPA) over reported, yet unproven, threats the chemical poses. In several regions this has led to scrutiny from regulators, lobbying by health advocacy groups – and consumer pressure to develop alternatives.

Initial efforts have focused on deploying bisphenol-S (BPS), with brands using it now being able to use the phrase 'free from BPA' in marketing. The two chemicals are similar however and as it has become a viable alternative tests on BPS are also being commissioned.

The industry is increasingly looking at acrylic or polyester materials for can linings as the long-term solution. Campbell Soup Company is one notable example here, phasing out BPA by July 2017.

Source: Smithers

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EDITORIAL

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our focus is on making a positive contribution to meet all current and future regulatory requirements and assist our customers achieve their sustainability objectives. Some ways in which we make an impact on Sustainability in the metal packaging process: , including:

Resource Efficiency:Henkel offers innovative technologies as well as process expertise which help our customers improve efficiency and performance; reduce usage of chemicals, water, and energy; and minimize spoilage throughout the aluminium and steel can production process.

Reduce Water Usage:Henkel's latest can cleaners are not only fully biodegradable, but are compatible with ultra-filtration, enabling water reduction and reuse. Optimum Circularity–Enabling lightweighting and Increased Recycled Content in Metal Cans:

Metal downguaging and changes in metal substrates, along with a variety of can sizes and shapes, puts a greater demand on the metal forming requirements in the drawing and ironing process used for beverage cans. Henkel's high performing can-forming lubricants are integral to meet the challenges posed by metal down-gauging, deep drawing, and metal substrate changes. Worker Safety and Chemicals of Concern:Keeping pace with changing regulations and with an eye on the future, Henkel innovates to ensure regulatory compliance and to address future substances of concern. For example, enormous effort has gone in to developments to address regulatory issues such as BPA in coatings, and the upcoming EU ban on chromium VI, by developing and extensive testing of non-BPA coatings for metal packaging, non-chrome passivations for tinplate steel, and commercializing non-chrome pretreatments for aluminum can end stock.

Together, we can make a positive contribution towards our client’s strategic goals. In areas such as metal packaging and sustainability, we are interlinked and working towards a shared outcome, after all.

Surface Technologies, Metals BU, Henkel AG

We are committed to sustainability and I would be delighted to engage with you further to explore how Henkel can make a positive contribution towards your organization's sustainability goals in metal packaging.

Emily Mullins, Global Market Strategy Manager, .....................

In a challenging year, the d r i v e t o w a r d s sustainability in metal packaging remains as strong as ever, but if we are g o i n g t o a c h i e v e a m b i t i o u s g o a l s , n o organization can work in isolation. A collective c o m m i t m e n t t o sustainability is the way forward.

At Henkel, we are committed to purposeful growth with sustainability as a central focus. Within that context, we constantly seek new and innovative ways to enable our customers to achieve their sustainability goals in a proactive way.

Our webinar explores in more detail our recent innovations that contribute to sustainability in metal packaging manufacturing, as well as the latest trends and developments for food safety in the food can coatings industry.

Our aim is to ensure our use of new technologies and solutions in adhesives, sealants and functional coatings can contribute to solving current and future global environmental and social challenges in six key areas, namely: social progress, performance, health and safety, energy and climate, materials and waste, water and waste water.

None of this is possible without broader collaboration with our clients and supply chain.

Global commitment to sustainability in metal packagingAs I highlighted earlier, global food and beverage brands are leading the way in the implementation of more sustainable solutions. Pepsico is committed to designing 100% of their packaging to be recyclable, compostable or biodegradable by 2025. Coca Cola launched its ''World Without Waste'' vision in 2019, and Nestle are also committed to 100% recyclable packaging by 2025.

Global suppl iers of beverage packaging are following that lead. In July, Crown Holdings launched their Twentyby30 strategic sustainability p r o g r a m o u t l i n i n g t w e n t y measurable environmental, social and governance (ESG) goals to be completed by 2030, across five pillars of action. Likewise, 'Ball’s 5 for 10 ‘ and the Ardagh Group's three pillars of

sustainability, both strive to balance environmental, social and economic issues.

Collaboration is the keyAs a key strategic supplier to the Metal Packaging industry,

SUSTAINABILITY IN METAL PACKAGING; WHY COLLABORATION IS KEY

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Under normal conditions of use, shallow and wide open steel and aluminium containers are safe to be used in microwave ovens. This is the outcome of an independent study by the renowned Fraunhofer Institute. Researchers also found that food in metal containers is more uniformly heated than in plastic containers. The findings open up a wealth of opportunities for consumers and brand owners alike.

Aimed at looking into the safety and performance of microwave heating food in rigid steel and aluminium containers, the survey was conducted by the renowned Fraunhofer Institute for Process Engineering and Packaging on behalf of the Metal In Microwave Industry Group (MIMIG) composed of Alcan Rhenalu, the Association of European Producers of Steel for Packaging (APEAL), Crown Food Europe, Fördergesellschaft Metallverpackungen (FGM), Impress and Novelis.

The heating experiments were performed with food packed in five metal containers of different dimensions and shape and with four different popular household microwave oven models.

The following metal containers were tested:

a round steel bowl (99 mm diameter x 35 mm height), used with 200 g filling.

a round steel bowl (127 mm diameter x 30 mm height), used with 250 g filling.

Under normal conditions of use, shallow and wide open steel and aluminium containers are safe for use in microwave ovens.

a square steel container (125 mm x 125 mm x 25 mm), used with 300 g filling.

a rectangular aluminium container (160 mm x 99 mm x 35 mm), used with 400 g filling.

a round steel container (153 mm diameter, 36 mm height), used with 425 g filling.

These containers were chosen because of their large open surface and shallow profile. This is considered as preferable for use in microwave ovens. Comparison experiments were performed with plastic containers of similar shape and size, filled with the same quantity of test food. The plastic containers were made of C- PET and were specified for microwave heating. Test fillings in heating experiments were tap water, egg batter, chili con carne and an infant meal (pasta with vegetables and small meat balls in sauce). All the test materials were liquid or semi-liquid and filled the containers completely from side to side.

The microwave nominal power ratings for the four ovens were 700 W, 800 W, 900 W and 1000 W. The oven constructions were of the standard household type with glass turntable and with the opening of the microwave wave- guide in the right side wall of the oven cavity.

Safe for use

During about 1000 microwave heating experiments with

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normal handling of metal containers, not a single incidence of a spark or a potentially risky situation was observed. In addition, no functional oven damage or unusual degradation

power was found after this large number of heating experiments with metal containers.

“We therefore conclude that the use of shallow and wide open metal containers for heating of food in microwave ovens is perfectly viable from a safety point of view, as long as some basic rules of microwave oven operation are respected” says Thomas Pfeiffer, a Fraunhofer researcher. A few basic guidelines, such as fully removing the lid of the container, placing only one filled container at a time in the centre of the glass turntable and leaving a gap between metal container and oven wall, are specified in the Fraunhofer report.

BASIC GUIDELINES FOR SAFE USE OF STEEL CONTAINERS IN MICROWAVE OVENS

1 The metal lid of the container must be removed completely prior to microwave heating.

1 As with containers of other materials, only full containers must be put into the microwave oven.

1 Only one metal container must be heated at a time.

1 Place the metal container in the centre of the glass turntable. An insulating air gap of at least 2.5 centimetres between metal container and oven walls or oven floor should be maintained. For ovens without glass turntable, the container must be placed on a ceramic dish.

More uniform heat

Although microwave heating times for food in steel and aluminium containers were longer than in similar plastic containers, there was generally less temperature variation and therefore better heating uniformity in the tested metal containers. The study recommends the use of shallow metal containers with a wide open surface area to reduce the heating time.

Conclusions of the study

Microwave heating of food in steel and aluminium containers with a large open surface and shallow profile is safe, provided that some basic rules of microwave operation are respected.

No functional oven damage or unusual degradation of microwave power has been observed.

Microwave heating times for food in metal containers are longer than for food in similar plastic containers. The difference decreases for larger containers. Therefore, it is recommended to use shallow metal containers with a large opening surface.

Temperature distribution was generally more uniform in the tested metal containers than in the plastic containers.

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RESEARCHERS GIVE GREEN LIGHT FOR THE USE OF METAL CONTAINERS IN MICROWAVES

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THREE-PIECE STEEL CAN MAKES ITS MARK IN THE EMERGING MARKETS

The three-piece welded steel can is making a strong impact on food and beverage packaging in the emerging world markets. With state of the art technology, it is cost effective, offers maximum security with an extended shelf life, and is one of the most ecological packaging solutions available today. Distributors in Africa, South America and Asia have chosen the welded steel can due to its competitive cost, resis-tance to harsh transport conditions, and guarantee of optimal preservation of the food in the difficult climate conditions which are frequently experienced in these countries.

3 piece welded steel can – making a strong impact on packaging in the emerging markets. Jakob Guyer, CEO of Soudronic, said recently, “What strikes us is the strong demand for high-speed ultra modern production lines in developing countries.

It is clear that local can makers and fillers want to catch up with the rest of the world and have a highly competitive product which will meet the most stringent of world-wide specifications in markets such as China, Russia, Thailand, Brazil, Mexico and various countries in Africa. Our contribution to the industry, without doubt, has been to make competitive, high quality steel cans for food and technical products available to all markets, having been responsible for the world-wide roll-out of more than 5000 seam welding lines.”

Swiss Quality in Steel Can

The Soudronic Company has developed the most technically advanced process for three - piece steel can production at speeds in excess of 800 cans per minute.

The objective was to improve the quality standards of the three-piece can with the introduction of their first welded steel can body maker. Gradually this process became the dominant technology for steel food and general line cans. As world leaders in seam welding machines, Soudronic expanded their activities to include related technologies, such as, slitting and transfer machines and more recently can forming and end making. Soudronic are technology leaders in their field with 5000 steel can production lines.

To serve a diversity of market requirements, it has been necessary to offer a packaging solution which is flexible enough to offer high production rates with a maximum of can formats and the ability to process harder and thinner steel.

Competing with world class players

Although the consumption per capita of steel cans in these emerging countries is quite often still modest, the economics of Soudronic welded steel production permit these countries to offer quality cans with maximum security at world class

New market potential

The microwave ability of shallow metal containers opens up a wealth of new opportunities for brand owners and consumers alike. For the consumer, it offers the added convenience of dual oven ability with both microwave and traditional ovens. For brand owners it provides new opportunities to segment their product range further by developing suitable food products such as ready meals and soups for microwaveable metal packaging.

Microwave ready meals fit the convenience mega- trend

1 Indeed, latest Datamonitor consumer trend studies show that consumers of all ages increasingly opt for convenience in their day-to- day food preparation choices. According to this same study, the convenience mega-trend reflects time pressures, stresses and work-life balance issues which consumers are increasingly experiencing. Consumers constantly seek out more efficient and effective products that can help facilitate crammed lifestyles and respond to the need to maximise leisure time. Traditional mealtimes are evolving, being replaced with lighter and quicker meals.

1 As a consequence, the ready meals market is growing in every global region, but particularly in Europe, reflecting the consumer's desire for convenience and quick easy meals.

This growing importance of pre-prepared meals is also reflected by the high frequency of microwaving. According to Datamonitor figures, the average consumer now microwaves around 19.3 meals a month in the US and in Europe, nearly 4,5 times a week.

The microwaving popularity demonstrates the ascendancy of ready meals and a focus on time and labour-saving.

Key advantages of steel containers in the microwave

1. Dual oven ability: the same steel containers can be used either in the microwave or in conventional ovens

2. Rigidity, especially after heating, allowing easier handling

3. Less risk of over-heating; no risk of melting unlike plastics

4. Better heating uniformity than with plastics

5. Best recycling performance amongst food containers.

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Name of Company

1 Sunder Sekhar International Agents

1 Products Manufactured / Agents

Tinplate Agents

NEW MEMBERS OF MCMA in Qtr 2 FY 20-21

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Editor : Venu Ayyar - www.mcmaindia.com 6

production speeds. This enables medium size can-making companies to also compete with multinational alternative packaging companies.

Currently Soudronic are supplying two new, ultra modern high-speed can lines to the Chinese company Chalkis Tomato Products, one of the largest producers and exporters of tomato paste in China. The line is capable of speeds in excess of 1300 cans per minute, using steel which is only 0.13 mm thick together with end production at rates of 3300 ends per minute at a thickness of only 0.14mm. In Thailand a similar line is being installed for a shaped can for health drinks, in Mexico to export filled food cans to the USA and in Korea are installing a high-speed aerosol can-making line.

The good news for brand owners and consumers is that steel cans are offering even greater cost effectiveness with lower thicknesses reaching 0.12 mm, with the added advantage of using less material and thus reducing environmental impact.

UNISEAL peel-off equipment increases convenience

The convenience awareness of the consumer has been established over the years with numerous easy opening devices, the most reputed being the Easy-Open-End. More recently, peelable ends are making the headlines and UNISEAL peel-off equipment is a major contender from Soudronic. This addition to their technology portfolio together with their shaping capability offers an even more

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complete single source supply and a total service to the can-making industry. Soudronic earned the Metpack 2005

®Innovation Award for their peelable end Compeel which consists of a curled ring and aluminium or composite membrane heat - sealed to the ring. This technology is currently being used for dry products such as infant formula baby foods, dried milk and coffee in Brazil, South Africa, Russia and Malaysia and other countries. However, the most significant growth is in the canned fish industry, which is continuing to snow ball. In France, Spain, Morocco and the USA there is a tremendous potential where the canning industry is ready to convert to peelable ends. Considerable development is being undertaken to develop the use of continuous processing for peelable ends as this will lower the entrance barrier for this consumer-friendly end.

Shaping up to the future

The popularity of the three-piece can and the convenience of a peelable end will no doubt have a positive impact and foster sustainable growth for the future. However, image is a powerful tool, especially with young consumers. Shaped three-piece steel cans are, as a consequence, becoming more and more frequent when launching new designs. This trend will no doubt continue to offer added value to the three piece steel can with some very unique designs for aerosols and even for paint cans.

HENKEL WEBINAR ON COATINGS & SEALANTSHenkel had conducted a webinar on September 16, 2020 on the latest developments on coatings for metal packaging. Both the speakers - Dr Heiko Hachmann-Thiessen, Head of Global Product & Application Development, Metal Packaging Coatings; & Ms Emily Mullins, Global Market Strategy Manager, Surface Technologies, Metals BU, Henkel AG – explained in great detail about the new metal coatings that are being used in the developed countries.

The webinar was for the Asia Pacific, Middle East, Africa & India regions. The global metal packaging market in 2019 was worth 96 bn Euro. Of this, Beverage cans has the biggest share of 45%, followed by Food at 30%, Aerosol at 10%, while other items comprise the balance 15%. Food cans business is expected to grow at approx. 1.5% CAGR during the period 2021-24.

With the food packaging market growing, the scope for Indian can business to grow is tremendous.

Metal packaging is experiencing a very strong growth rate across the globe and this is because metal packaging is infinitely recyclable and hence sustainable.

Henkel has developed new coatings called BPA-NI to replace epoxies for all kinds of Tinplate, which are being used in developed countries. FSSAI has banned the use of BPA in food packaging containers in India under the latest draft amendment.

The session was well attended and very informative.

Editor

MCMA has supported the webinar in India by promoting in MCMA News and also by regular follow up with Members to participate.

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