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A recent survey undertaken on behalf of Gulf Pack reveals CSD producers key target for can producers

The region's largest packaging trade exhibition, Gulf Pack, has been confirmed for 2-5 April 2007, according to the trade fair's organisers F&E. Staged at Dubai's premier industrial exhibition venue, Dubai Airport Expo, the event is already on track to double in size.

Gulf Pack has grown by a substantial amount over the past few years, which is a reflection of the growth in the packaging industry and the diligent planning by the organisers F& E, who carefully planned the event in accordance with the packaging industry's international calendar.

Due to the prestige of this phenomenal show, F & E recently appointed Bilal Merhi, former UAE Printers' Association and DCCI Printing & Publishing Group and UAE Packaging Association Coordinator, as the regional sales manager of Gulf Pack exhibition.

Bilal commented, "I m pleased to have found a company that can match my vision for the developing markets and expect to utilize my knowledge and contacts within the printing and packaging industry to strengthen Gulf Print and Gulf Pack," said Merhi adding "Gulf Pack will run in parallel to its sister show Gulf Print, and both events will reflect the latest innovations in the industry and provide exhibitors and visitors with a truly focused platform."

To date Bilal confirmed that 25% of the space for the 2007 show has already been booked by some of the most established packaging companies within the region and across the globe, all of which have notably increased the size of their booths. Some of these exhibitors are Clear Pack MEA, Techno Middle East, Europack, Wolf Verpack and Termopak.

Witnessing the fast paced growth within the industry, Gulf pack commissioned management consultants IMES to undertake a survey which revealed the significant developments in this and five other consumer packaging sectors. (Comprehensive details are readily available from sales@imesconsulting.com)

The UAE's market for metal containers continues to grow as a consequence of a number of market factors, not least of the entire gradual shift from PET by leading carbonated soft drink (CSD) producers. Demand for single serve beverage cans is expected to exceed 420 million units this year, representing 71% of the single serve pack market - up by nearly 70% in just five years.

The two-piece aluminium can now dominates with virtually all of the six main bottlers choosing the consumer friendly format. With Pepsi and Coca Cola bottlers occupying up to 95% of the CSD market, competition to supply is fierce.

Major Bottlers in UAE

Abu Dhabi Refreshment (Pepsi)

Aujan (Rani)

Dubai Refreshment (Pepsi)

Al Ahlia Line (Coca Cola)

National Refreshments

Union Beverages (Mecca Cola +)

International Beverage & Filling (Star).

Whilst the market is growing, increasing capacity from the major can supplier Crown Emirates , (part of Crown Bevcan Europe Middle East and a subsidiary of the global Crown Cork & Seal company), appear to be the major beneficiary. Manufacturing in 5 can sizes, their local capacity stood at 700 million units in 2005 with predicted increases to 1.5 billion in the near future.

Whilst their position of leadership is unquestionable, it is not without challenge. The Arab Can Co, a subsidiary of the successful Polish Canpack group, are already planning a two-piece production line in the UAE to add to their existing three-piece capability.

However, the fact remains that the overall capacity for cans far exceeds local demand with much of the UAE's production being exported as empty cans to neighbouring countries. The supply of cans to bottlers and other end user sectors can therefore be regarded as a truly regional business with some of the largest manufacturers being based in Saudi Arabia. IMES have identified the following main suppliers in their survey:

Major Can Suppliers in Middle East

Crown Bevcan Europe & ME

Rexam (acquisition of Egypt's Ecanco early '06)

Al Jomaih Can Making, Saudi Arabia

Sothern Canmaking Co, Saudi Arabia

United Arab Can Manufacturing Co, Saudi Arabia

Union Beverages (Mecca Cola +)

International Beverage & Filling (Star).

With the UAE market set to grow and an increasing focus on filled cans for export, the market opportunity looks very favourable. Add to that the fact that Aujan, one of the largest regional bottlers, has recently established locally and a new pan-regional facility is set to come on stream for Mecca Cola, and the position looks very healthy for can suppliers.

Tin Plate Market Driven by Exports

Whilst the huge soft drinks market is the overwhelming motivation for can makers, the tin plate market also provides a fertile business opportunity. In line with the majority of the UAE's trade, well over half of the volume is destined for export.

Local producers supply about 35,000 tonnes to the UAE manufacturers, of this around 40% is used for foodstuffs with the balance used for paints, chemicals and aerosols. However, a further 100,000 tonnes of tin plate, including lacquered and printed sheets, is exported every year which is increasing at a steady pace.

A comprehensive review by IMES indicated that the main suppliers of tin plate locally included around 8 companies. These were divided between commercial suppliers and those manufacturers such as Hassani who form cans largely for their own manufacturing needs.

Major Tin Plate Producers in UAE

EMIC, Sharjah

Arabian Can Industry , Dubai

Arab Can Co, Sharjah

Crown Can Industries, Hassani, Dubai

United Can, Dubai

Capex (Al Rajhi) Dubai

SAPIN, Dubai

Balmer Lawrie

The market for metal containers in the UAE is clearly very attractive, especially so because of the export opportunities it offers to markets such as Iran and within the GCC. No wonder therefore that suppliers are already eyeing the opportunity to present their packaging solutions at the next edition of Gulf Pack, the region's premier packaging event set for 2-5 April 2007, Dubai Airport Expo.

-Ends-

More information is available at: www.gulfpack.info

Issued on behalf of Gulf Print by Momentum

For information contact:
Anne Howard
Tel: +971 4 390 1630
Mobile: +971 50 7347728
Email: anne@momentum.cc

© Press Release 2006