The packaging and construction sectors continued to be key consumers of aluminium. The year 2020 started with the announcement of the company’s plan to replace plastic with aluminium packaging. Ball Corporation's new survey found that consumers in the UK prefer to buy water in aluminium cans for on-the-go purchases. The YouGov poll indicated there is a growing thirst for retailers, and food and beverage outlets to sell water in aluminium cans.
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In addition to this, the Construction sector drove the demand for low carbon Aluminium. Many companies started using these products in order to minimize carbon emissions.
Let’s look back at the top packaging and construction news from end user vertical.
Aluminium aerosol cans production remained unaffected by the COVID-19 pandemic
The International Organisation of Aluminium Aerosol Container Manufacturers (AEROBOL) reported that the COVID-19 pandemic had not much successful in affecting the global production of aerosol cans. The output declined only moderately in the first half of 2020.
Gregor Spengler, Secretary General of AEROBAL said that the consequences of corona-related lockdowns and restrictions were expected to have been worse for the aluminium aerosol containers market. But, instead, the value of a reliable and safe packaging material, such as the aluminium aerosol can, was impressive enough during the unprecedented crisis.
Aluminium cans shortage in Northern Michigan
Northern Michigan Breweries faced losses for the shortage of aluminium cans. Russell Springsteen, owner of Right Brain Brewery, a microbrewery that serves its own brands of brews in a creative, industrial site, reported that they started getting a heads up about the possible shortage of aluminium cans.
The problems with aluminium can supply in Northern Michigan began much before the onset of COVID-19, according to Short’s Brewing Company CEO Scott Newman-Bale. He said, “With tariffs coming in, that kind of amped it up to the next level, and then what really pushed it over the edge was COVID where people are just at home consuming.”
Newman-Bale added that his brewing company requires approximately 12 million cans a year. Right now, it has 1 and a half million cans in stock. Mr Bale is more worried about the next year, which he thinks will turn into a much more problematic scenario.
New products in aluminium cans and bottles
- Rio Tinto and Anheuser-Busch InBev (AB InBev) formed a global partnership to deliver a new standard of sustainable aluminium cans. The two companies signed an MOU to bring AB InBev products to market in cans made from low-carbon aluminium that meets industry-leading sustainability standards.
- Fabonest Food and Beverages Pvt Ltd launched India's first spring water beverage "Responsible Whatr" in sustainable and endlessly recyclable aluminium cans, canned at the brand’s state-of-the-art plant.
- Ball Corporation announced the launch of an infinitely recyclable aluminium bottle. The new impact extruded aluminium bottle line is available in various shapes and sizes and is customized for numerous beauty, personal care, food and beverage products.
- P&G Beauty launched its latest packaging innovation across its brands Head & Shoulders, Pantene, Herbal Essences and Aussie. The company introduced a refill system for their shampoo, thanks to a new reusable 100% aluminium bottle and recyclable refill pouch.
- Québécois cider brand Michel Jodoin expanded the market for its non-alcoholic apple musts. The apple must, which was available in a 750ml glass bottle format, are now available in Ardagh’s light and convenient 250ml slim can.
- RAIN Water Company has announced the launch of mountain spring water in recyclable aluminium bottles to minimize plastic bottle waste.
New manufacturing plants
- Envases Group announced plans to set up its first aluminium can production and distribution center in Waco, Texas Central Park. The company will invest US$100 million which will have capacity to manufacture up to 3 billion aluminium cans per year.
- Ball Corporation planned to construct new U.S. aluminium beverage packaging plant in Pittston, Pennsylvania with an initial investment of more than $300 million spread over multiple years.The plant is scheduled to begin production in mid-2021.
- The CANPACK Group announced that CANPACK will build aluminium beverage can body and ends manufacturing plant, its first in the United States.
- Unilever collaborated with Aerosol can manufacturer Tubex for its new Rexona Recycled Refreshed antiperspirant product. Tubex will manufacture aerosol can for Unilever’s new range.
- The new production plant for aluminium food containers and packaging products “Stobia” located on Chapais Street in Jonquière, Quebec starteds its production.
- Ardagh Group acquired a new facility in Huron, Ohio, for the manufacturing of infinitely recyclable beverage cans and ends.
- Ardagh Group will add two new high-speed beverage can manufacturing lines at its Olive Branch, Mississippi, facility. This will meet the rising demand for infinitely recyclable beverage cans.
- Ball Corporation will build two new speciality beverage aluminium can plants in the United States. The continuous rise in using aluminium for beverage and food packaging is inspiring Ball to build can plants.
- Crown Holdings, Inc. will build a new beverage can manufacturing facility in Bowling Green, Kentucky. The 327,000 square foot plant is scheduled to be operational by the second quarter of 2021.
Some other highlights
- Hindalco announced the reopening of aluminium foil plant in Mouda, near Nagpur, in response to requests from pharmaceutical packaging companies. The pharmaceutical companies were facing an acute shortage of specialised packaging material for Covid treatment drugs.
- India commenced anti-dumping duty probe against certain kinds of aluminium foil imported from China, Indonesia, Malaysia and Thailand. Aluminium Foil 80 microns and below such as cigarette foil and home foil, among others are the product under review.
- Ball Corporation completed the acquisition of Tubex Industria E Comercio de Embalagens Ltda., an aluminium aerosol packaging business with a plant near Sao Paolo, Brazil.
- Showa Aluminum Can Corporation (SAC) celebrated the completion of its third base in Vietnam to produce aluminium cans.
- Ball Aerosol Packaging Devizes (UK) collaborated with renowned manufacturers Reabrook Ltd and the Lindal Group to design, produce and fill 25,000 cans of Rainbow hand sanitizer in an effort to help combat the global pandemic.
- CANPACK expanded its capacity by more than 1 billion cans annually in Colombia and Russia, as the aluminium cans market in those two countries shows a positive sign of growth.
- Nespresso Canada announced two new sustainability initiatives that are part of the company's sustainable development approach: the launch of new capsules made using 80% recycled aluminium and new fully recyclable boxes made from 95% recycled material for its machines.
- Cotton On Foundation, in partnership with Wallaby Water, announced the launch of Australia’s first 100 percent resealable aluminium bottled water. Aluminium packaging will compete against plastic, cartons and glass packaging as the nation’s most recycled and recyclable packaging alternative for bottled water.
- Continente introduced its aluminium coffee capsules. Aluminium coffee capsules will also help in reducing carbon footprint.
- Ball Corporation announced that the Science Based Targets initiative (SBTi) has approved its targets to reduce absolute carbon emissions. The company targets to reduce emission within its operations by 55 percent and within its value chain by 16 percent by 2030 against a 2017 baseline. Ball becomes the first in the can making industry to receive approval for science based target.
- Henkel announced that its Hair Coloration portfolio will now be available in recycled aluminium tubes. Aluminium tubes will protect the product and allow for easy-to-handle-application by professional hair stylists and consumers.
- Mandarin Oriental Hotel Group (MOHG), a Hong Kong-based hotel investment and management group, has decided to eliminate the usage of single-use plastic with aluminium across all its 33 luxury hotels located worldwide by March-end.
- Meiyume announced the launch of new Infinite aluminium packaging range to minimize the use of plastic packaging. The company has introduced cosmetic bottles and jars to provide consumers and brands with alternative sustainable packaging options.
Construction sector: Low carbon Aluminium demand was on higher side
Crossing through the “Corona crisis”, governments are seeking businesses to engage in a "green recovery" whereby sustainability is prioritised and put at the centre of the rebuilding of global economies. Construction carbon specialists, Bionova, published that: “Low-carbon Aluminium: Solution for sustainable construction and renovation, which welcomes low-carbon aluminium as an essential solution for more sustainable construction and renovation.
The environmental benefits of low-carbon aluminium have been officially recognised by international green building certifications such as LEED and BREEAM. Buildings that use low-carbon aluminium are awarded credits for reducing embodied carbon.
Top Newsmakers from Construction Sector
- Hydro supplied Hydro CIRCAL low-carbon aluminium for more than 100 large building projects. The company secured large building projects in 10 countries across two continents with Hydro CIRCAL. Hydro CIRCAL will reduce 25,000 tonnes of CO2. The projects range from 10 to 400 tonnes of aluminium that would meet low-carbon product demand.
- Hydro announced that Norway-based outdoor furniture manufacturer Vestre will use Hydro CIRCAL in their sought-after furniture series, Folk. CIRCAL is a certified alloy with a minimum content of 75 percent post-consumer recycled aluminium.
- Reynaers Aluminum restricted its CO2 footprint. The architectural window, door and facade systems company will henceforth purchase more aluminium produced from green energy sources. By purchasing low-carbon primary aluminium, the company will reduce CO2 emissions by more than a quarter.
- Hydro, along with a team of renowned structural engineers, business experts, and researchers, was evaluating the feasibility and cost-efficiency of replacing conventional steel with aluminium for the construction of long-suspension bridge girders. According to Hydro Extruded Solutions Market Manager Thomas B. Svendsen, the use of aluminium can be a game-changer for bridge-building.
- Even amidst the lockdown and economic disruptions due to COVID-19, Garnalex continued to invest in new innovative aluminium window and door systems. As per the report, Garnalex was on track to launch its revolutionary beadless aluminium window system.
