[ID] => 11261
[post_author] => 6150
[post_date] => 2019-07-15 09:14:14
[post_date_gmt] => 2019-07-15 08:14:14
[post_content] => There is little doubt that packaging is one of the most essential parts of the dangerous goods industry, but it can come at a cost to the environment. Combatting plastic waste and reducing carbon footprints have become two of the key targets for industry across the globe. To assist in achieving and surpassing these goals, Greif has recently updated its popular Greif Green Tool as user numbers continue to grow.
Originally developed in 2010, the Greif Green Tool is a flexible calculator that uses independent lifecycle data for Greif’s industrial packaging products. It is designed to help customers and companies proactively explore new ways to reduce their environmental footprint, make informed decisions about which industrial packaging is best suited to their needs, and achieve their sustainability goals.
The Greif Green Tool reviews and compares the environmental impact of different products, such as plastic drums, steel drums, fibre drums and intermediate bulk containers (IBCs), that might be relevant for a customer’s specific sector. Using a range of cross-functional data including geographic scope, product specifications and transport, the Greif Green Tool allows multiple stakeholders within a business to discover shared improvement opportunities. The examination results can be further used to develop an environmental baseline, helping customers make comparisons between different packaging types and tracking individual environmental progress over time.
The latest substantial updates to the Greif Green Tool include enhanced analysis that allows detailed modelling, plant-specific analysis and improved classification of Greif’s sustainable products and processes.
WAYS TO IMPROVE
“As more companies develop sustainability goals, specifically carbon emissions goals, they start looking for ways to reduce their carbon impact, which includes the performance of their suppliers and the products they use,” says Aysu Katun, director of sustainability at Greif. “The Greif Green Tool provides robust information for strategic decision-making in a very easy-to-use format. With strategic sustainability decisions involving bigger groups of senior leaders, Greif’s Green Tool can help multiple parties understand and agree on the need to change.
“Both Greif and our customers are concerned about the global waste crisis,” Katun continues. “By helping our customers compare the environmental impacts of different packaging options such as new versus recycled versus reconditioned packaging, we assist them in making decisions that will proactively help them mitigate against future damage to the environment.”
Further exemplifying Greif’s environmental impact reduction is the recent Together for Sustainability (TfS) audit score of 98 per cent for its plant in Cologne, Germany. The on-site TfS examination assessed sustainability performance against a defined set of criteria across various aspects of the business, including management, health and safety, environment, quality, energy management and social responsibility.
“Cologne’s success is testament to the skill and dedication of its workforce. The audit supports our commitment at Greif to ethical and sustainable business practices. It offers customers reassurance that we have a robust safety, health, environment and quality management structure in place,” says Michael Kolz, Greif’s SHEQ manager for EMEA-Central.
Greif’s second quarter results show strong increases in sales and profits, with net sales up $245m over the year at $1.21bn and gross profit ahead by $53.4m at $248.7m. Adjusted EBITDA rose by 31.4 per cent to $162.0m. "Greif produced solid financial results in fiscal second quarter 2019 despite the continuation of trade-related market softness in parts of our global Rigid Packaging segment and a more challenging demand environment in our Paper Packaging segment in the US,” says Pete Watson, Greif’s president and CEO.
Part of the increase can be attributed to the acquisition of Caraustar Industries in February. “We completed the Caraustar acquisition during the quarter and are currently integrating these operations in a disciplined manner,” says Watson. “I am pleased with the energy and pace of the integration, but I am most impressed with how well our teams have come together. Through their collective efforts, the combined team has uncovered a variety of operational enhancements and new synergies not previously identified during the due diligence process.”
Greif further says it has identified $15m of new estimated run-rate synergies related to the Caraustar acquisition. The company now predicts that it will be able to achieve at least $60m of run-rate synergies over three years.
WHAT TO LOOK FOR
While overall figures were impressive, Greif’s Rigid Industrial Packaging & Services division fared less well. Second quarter net sales fell by $31.1m to $631.6m, although excluding foreign exchange impacts there was a $2.3m increase in sales, largely as a result of a 3.9 per cent increase in selling prices for Greif’s primary products. This was partly offset by continued softness in demand in western and central Europe, Asia-Pacific and the US Gulf.
As a result of the drop in currency-adjusted net sales, operating profit fell by $0.2m to $47.0m and adjusted EBITDA was down $2.7m at $68.9m
Looking to the remainder of 2019, Greif is feeling confident and taking the momentum of the last two quarters forward to utilise the new addition of Caraustar and the continued growth of specialist services such as the Greif Green Tool.
“We have revised our fiscal 2019 guidance slightly higher, despite expected continuation of market demand challenges for the remainder of the fiscal year,” concludes Watson. “Looking beyond 2019, the long-term fundamentals for our business remain favourable as we integrate Caraustar into our business and advance ongoing value optimisation activities in our global portfolio. Our team remains focused on delivering exceptional value for our shareholders and customers.”
Since the end of the quarter, Greif has made what it describes as a “large-scale investment” in its production facility in Casablanca, Morocco. A new blowmoulding machine has been installed, which is said to use up to 30 per cent less energy than older machines and will also offer “significantly higher productivity levels”. It will be used to manufacture plastics jerrycans and is expected to increase production capacity for one- to five-litre bottles for the lubricants market by up to 25 per cent.
“This investment guarantees supply to our customers as we experience continuing high demand for our blowmolded bottles. It demonstrates our ongoing commitment to improving customer service and driving down cost,” says Abdennour El Mosor, Greif’s regional manager, MENA. “It also reflects Greif’s commitment to minimizing its carbon footprint.”
The Casablanca plant manufactures jerrycans of up to 25 litres and also steel drums, with customers in the lubricants, chemicals and agro-food sectors.
[post_title] => Greif: All about the green
[post_status] => publish
[comment_status] => open
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[post_name] => greif-all-about-the-green
[post_modified] => 2019-07-12 14:18:02
[post_modified_gmt] => 2019-07-12 13:18:02
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=11261
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