O.R.G's $200 million acquisition of China's packaging assets under the global canning giant Ball!



O.R.G's $200 million acquisition of China's packaging assets under the global canning giant Ball!

 

 O.R.G issued an announcement on the acquisition of shares in Ball Asia Pacific Ltd, a company related to China's packaging business.

 

 

The announcement shows that on December 13, O.R.G and Ball Asia Pacific Ltd. The equity acquisition agreement and related subsidiary agreements were signed and the company will acquire Ball Asia Pacific Ltd from its own fund of US$205 million. The equity of the company related to the packaging business in China.

 

 

After the acquisition, the company will hold 100% stake in Bolver Hill, 100% stake in Bol Beijing, 100% stake in Bol Qingdao, and 95.69% stake in Bol Hubei.

 

 

O.R.G said that due to the structural reasons of the metal packaging market segment, the company currently accounts for about 60% of the core customer Red Bull Beverage business, and there are certain customer dependence risks. Through this acquisition, the company will undertake the capacity and customers of the target company, thus achieving a substantial increase in the production capacity and revenue of the two-piece can. Therefore, the company's business share of Red Bull is expected to drop significantly, and the company's customer structure and revenue structure can be significantly optimized.

 

 

Metal cans are divided into three-piece cans and two-piece cans. The three-piece can appeared earlier and has a history of more than 200 years. It is mainly made of tin-plated steel sheet (tinplate). It is formed by crimping and bonding resistance welding. It consists of three parts: tank body, tank bottom and tank lid. . The history of the two-piece cans is relatively short. It was introduced in the middle of the 20th century. It is mainly made of aluminum alloy sheet materials. The whole tank is composed only of the can body and the can lid, so it is called a two-piece can. Compared with the three-piece can, the two-piece can reduces the bonding step of the can body and the can bottom, has the advantages of good sealing performance, higher production efficiency, and saving raw materials, and is widely used in the food and beverage industry.

 

 

According to the data, Ball Corporation (BLL), the US-based company, is the world's largest metal packaging company. Founded in 1880, it specializes in food and beverage metal packaging, and also provides aerospace and other high-tech services. Its business covers the Americas, Asia and Europe.

 

 

As the target of O.R.G's trading, ball Asia Pacific is the Asia-Pacific headquarters of the metal packaging business of ball. As a holding company, it is mainly part of the management or technical support of its company. O.R.G intends to acquire four Chinese factories directly and indirectly held by ball Asia Pacific, located in Foshan, Guangdong, Huairou, Beijing, Hubei Ezhou and Shandong Qingdao.

 

 

Zhou Yunjie, chairman of O.R.G, said in an interview that the development of ball has a reference for Chinese metal packaging companies. “Bol has the world's leading can making technology, and its customers cover a wide range of world famous consumer brands, including European Red Bull, Coca Cola, Pepsi, Heineken, etc.” Zhou Yunjie revealed, “In the future, we will not rule out more cooperation between us. In order to play a greater synergy."

 

 

O.R.G's performance report shows that the company's operating income in the first three quarters was 6.25 billion yuan, an increase of 12.96% over the same period of the previous year; the net profit attributable to owners of the parent company was 702 million yuan, an increase of 7.68% over the same period of the previous year.



A can is actually sold to 7.599 billion! Red Bull and Jiaduobao are in use
 
Guide: Some products are exposed every day, just because they are too common, but they will forget their existence. They are often tied to industry giants and become the invisible giant behind the giants.

How much do you think a can is worth?

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Cans are very common. Then you know, how much is a can? The answer is: 7.599 billion!

In 2016, "Red Bull" beverages in the Chinese market, the only designated cans supplier - Origen's revenue of 7.599 billion yuan, net profit reached 1.154 billion. ”

You may have never heard of Origen, but its customers are all famous: Red Bull, Want Want, Jiaduobao, Tsingtao Beer, Yanjing Beer, Yinlu, Dali Park, etc.

For this company that produces metal cans for the above brands, it is not an exaggeration to say that Origen is standing behind these well-known companies.

In China, there are more than 1,700 companies involved in metal packaging, but no more than ten companies can compete with multinational companies. Origen is one of them.

When China's manufacturing profit was only 5%, Orijin achieved annual revenue of 7.599 billion yuan and net profit of 1.154 billion yuan in 2016 for the production of metal packaging cans. This figure is very amazing from the perspective of the integration industry.

So, how does Origen become a giant behind the giant?

Mother and child are united, their profit is broken

Lei Jun once proposed the concept of an "ant market", which coincides with the famous long tail theory:

In the Internet age, due to cost and efficiency factors, when the venues and channels for the storage and distribution of goods are broad enough, almost any product that seems to have very low demand before will be bought as long as it is sold. The common market share of these demand and low-volume products can be comparable to or even greater than the market share of mainstream products.

Such as a towel, or a patch panel.
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So, how did Zhou Yunjie discover the market for cans?

In 1994, 55-year-old retired old lady Guan Yuxiang accidentally went to Hainan to travel and found that the local beverage industry was in full swing. The first is the coconut juice, and mango juice and coffee are also very popular.

However, there are many drinks, but they are not packaged, and there is no can.

Build a can factory! The old lady who dared to dare to live with her life savings of 300,000 yuan, went to Hainan, and established Hainan Oruijin Packaging Industry Co., Ltd. in Wenchang, which is unfamiliar.

This is the predecessor of Origen. In addition to 16 employees, a simple production line, and the old lady side by side with his son Zhou Yunjie.

At first they could only work with some small factories. Fortunately, in the second year, the “big money” Red Bull entered China and built Shenzhen.

Zhou Yunjie later recalled emotionally: "The mother sought the opportunity to cooperate with Red Bull in a humble attitude. In the past two months, my mother and I traveled 41 times between Hainan-Shenzhen-Guangzhou."

But to win the Red Bull, it is not just hard work and feelings.

At that time, all domestic cans were welded with liquid refilling technology, but Red Bull proposed a special requirement - powder recoating. This was very challenging at the time. Many of the more famous competitors have come to give up.

Zhou Yunjie was unyielding, scrambling around, and finally found a company in Singapore that is willing to cooperate. Through technology purchases and the introduction of technicians and equipment, Zhou Yunjie successfully introduced powder recoating technology into China.

It was not until five years later that other domestic companies began to master and apply this technology.

Why does Red Bull look at Origen?

Not only is Origen's process technology and product quality in line with Red Bull's requirements, it is not only Origen's personal service, but more importantly, its strong integration capabilities in the production line and the entire supply chain system.
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For example, in 2007, Zhou Yunjie resolutely gave up his investment in the printing field, and all the product printing was entrusted to Baosteel Group.

Baosteel has also expanded from a printing line to currently has five printing bases in China, becoming the product printing group of tinplate, the main material for canning in China.

Win-win and win-win are the real wins. Origen has therefore entered a high-speed development path.

An international journey of cans

Many people may ask, why does Origen integrate the supply chain? What is the core competitiveness?

Just like the introduction of powder coating technology to China at the beginning, Zhou Yunjie pays special attention to product technology innovation. Now Origen has 16 patents in hand.

what? Is there a technical content for a can?

So the interlacing is like a mountain. In fact, food safety depends largely on the packaging product.

“The product of cans was in the 1930s. However, it itself has also progressed with the development of society. For example, thickness, 20 years ago, the thickness of cans usually used is 0.21mm-0.23mm, currently on the market. The thickness of the accessible can is 0.19mm-0.20mm."

“And Origen has been able to produce 0.135mm-0.15mm metal can products, and has successfully developed cans below 0.12mm.”

Thinner and lighter, it not only saves costs but also saves resources.

For example, Origen boldly innovates, using the combination of iron cans and aluminum foil to package luncheon meat, which is convenient for consumption, and the sealing effect can ensure that the landing is not damaged. Another example is that a new technology can make Origen save 30% of the usage on the tinplate.

Also, “like ketchup pots, China’s production is the largest in the world, and exports are very large. Our small packaging cans account for about 60% of domestic production.” In order to seize this market, Origen has the highest demand for tomato sauce in the world. Region - Africa has established a factory in Nigeria.

It can be said that Origen has been technically at the forefront of the international metal packaging industry.

In the era of the Internet era and consumption upgrades, the post-80s and post-90s consumer groups have strong demand for fast, convenient and healthy fast-moving foods including functional beverages. "The metal packaging industry, there is still a huge future. Growth space."

Standardization, scale, and internationalization are the magic weapons of Origen.

Origen-style "big customer relationship"

For more than 20 years, Origen has formed a strong cooperative symbiotic relationship with its big customer Red Bull. This relationship has also enabled Red Bull and Origen to achieve a "win-win" situation, and at the same time, Origen has been questioned.

At the end of 2015, Zhou Yunjie elaborated on his own "big customer relationship" ideas.


The downstream customers of the packaging industry have very high requirements on the production process of the packaging enterprises, and the quality of the product packaging directly affects the sales of their products.

Origen's core customers are well-known companies in the food and beverage industry in China, and they all need long-term and rigorous investigations on the choice of packaging suppliers. However, once they select a supplier, they are generally not easily replaced.

At the same time, the packaging industry enterprises also have the characteristics of “big customers rely on”. Therefore, the most ideal cooperation mode between the two parties is to form a long-term stable cooperative relationship.

"Red Bull and Origen are like relatives. Before the listing, Origen was still small, Red Bull helped Origen to grow up; now Origen grows up, Origen will help Red Bull in turn. Origen wants to treat Red Bull as himself The products are to be done, we have the responsibility to help Red Bull grow together."

While growing up with Red Bull, Origen also develops more core customers through mergers and acquisitions.

“The packaging industry has the characteristics of relying on large customers. For example, the top five customers of ball’s revenue contribution accounted for 43.76%, and the top five customers of Leisheng’s revenue contribution accounted for 50.03%. Establishing a continuous and good relationship with major customers for the sustainable development of the company. It is important.

In the future, the company needs to develop more core customers, and maintaining the relationship with these new customers will be an important task for Origen. ”


At present, Origen's customers include well-known beverage companies such as Jiaduobao, Want Want, Lulu, Susa, Huiyuan, Kangzhiwei, Tsingtao Brewery, Yanjing Beer, Snow Beer, etc., as well as well-known customers with food can products: Such as Yinlu, Dali Park, Yili, Sanyuan, Feihe, Junlebao, Beinmei, Mengniu, Jianhua sesame oil and so on.

A bag of 10 billion euros a year!

Tetra Pak is a low-key product that is ubiquitous and often overlooked.

Just walk into a supermarket, pick up a bottle of juice, milk, you can see the small label on the side of the box.

Don't look at it. The annual net income of Tetra Pak is more than 10 billion euros. It is a famous giant company.

How was this package invented? The story begins with the founder of Tetra Pak, Ruben Rausing.


Ruben Rosin
From flour bags to beverage bags

Ruben was born in Sweden in 1895. After graduating from the Stockholm School of Economics, Ruben traveled across the ocean to a master's degree in science at Columbia University in New York.

In 1929, Ruben returned to the motherland and set up a packaging factory in Sweden with Erik Akerlund - Åkerlund & Rausing, which is now the parent company of Tetra Pak.

The company, Akerlund & Rausing, was only able to survive in the first few years, and the factory mainly produced flour bags to improve the amount of flour that was wasted during the bulk shipment.

In 1933, Erik Akerlund left the company and transferred all of his shares to Ruben.

The milk and juice at that time were sold in recycled glass bottles, and the customers needed to return the bulky bottles after drinking.

Rosin believes that this traditional distribution model has seriously affected the sales of beverages. If one can make a one-time packaging of beverages, the sales will be very good.

In the United States, Rosin saw a waterproof paper with a wax coating, which became his source of inspiration. On March 27, 1944, Rosin finally got the patented results he had dreamed of for more than ten years, and named it "regular tetrahedron", which is also the prototype of the current Tetra Pak.

Why is it a regular tetrahedron?

Why use the strange shape of a regular tetrahedron? Behind this is very particular.

The expanded view of the regular tetrahedron is an equilateral triangle, and the wrapping paper is easy to cut and does not produce waste paper.

After the customer buys the packaged beverage home, he can pour the drink out by cutting a corner.

In addition, it has an undisclosed advantage: the beverages in regular tetrahedrons look much more than they actually are, and beverage manufacturers like them.


Advertising of regular tetrahedral Tetra Pak

Although Rosin got the patent in 1944, Tetra Pak has not been put into use so quickly. It took Rosin six years to solve the problem of "how to add a drink to the box", "how to let the machine know how much to add", and "how to seal the drink."

In 1951, after nearly two decades of polishing, Tetra Pak finally got on the market stage. Rosin revealed the news of the new packaging to the newspaper in May.

The promotion of Tetra Pak was smooth sailing. In 1955, in the dairy exhibition held in the London Olympic Hall, Tetra Pak also attracted the attention of the Queen of England.


In 1955, the Queen of England listened to the introduction of Tetra Pak
In 1961, Rosin added a layer of high-temperature resistant aluminum foil to the packaging to create a sterile package that can be sterilized at high temperatures. This invention, once introduced, revolutionized the beverage industry, allowing beverages to be sold at ambient temperatures without sacrificing nutritional value.

In 1962, the company produced the more common, rectangular shape of Tetra Pak.

After more than 30 years of adventurous struggle, Rosin got the reward he deserved.

He has earned a variety of commercial, engineering and even medical honors.

In addition, he certainly gained a huge amount of wealth, and even once reached the throne of Sweden's richest man, the Rosin family has become one of Sweden's leading names.

Ma Yun said in a speech, "People who can make a fortune in the past are because they have seized the opportunity, and those who can make a fortune in the future know how to solve problems."

If you can't produce good-looking and good-looking products, then provide peripheral solutions for good products, and you can also occupy a huge market share and achieve your own wealth.

The aluminum easy-open lid two-piece cans are popular in liquid food packaging, especially in beer packaging, and the momentum of packaging beer in traditional glass bottles is quite worthy of serious conclusion. Especially when it comes to the promotion of polyester bottled beer, it is possible to change the angle of view, that is, not to compare the polyester bottle with the traditional glass bottle, but to make the polyester bottle and the aluminum easy-open lid two-piece cans. A comprehensive comparison. There may be more comparability between them, which leads to further reasoning - the conclusion that the polyester bottle packaging beer is inevitable due to the feasibility of packaging beer from the current year to the present. This has to be convincing, and there is no lack of theoretical and practical implications for the promotion of polyester bottled beer today.


The most original beverage packaging cans were made of steel and later improved to aluminum. Aluminum has a material density of 2.7, which is only 1/3 of the steel density. The extension performance is better. After successful trial-and-draw and draw process (DRAWAND & IRONING, referred to as DI can), it is possible to achieve a tank height greater than the tank (H is greater than D), thus having a promotional value in the packaging of the liquid food industry. . However, since aluminum is at the end of the sequence of the periodic table, once it comes into contact with other metals, the interface is corroded due to the difference in potential of the bimetal. At the same time, there is a certain instability for acidic beverages including beer. Therefore, the inner coating of the can becomes a shield structure which is inevitably considered. At present, the two-piece packaging material is set, the epoxy resin 130mg/can is used for packaging beer (CO2 content is 5g/L), and the epoxy amino group 180mg/can is coated for strong environmental protection beverage (CO2 content is 8g/ L). With the improvement and improvement of environmental protection standards, the structure of the easy-open cover has also been changed from a disposable pull ring (STAY-ONTAB) to a joint type push button type (PUSHBUTTONDOWN). The large-scale promotion of easy-opening two-piece cans is related to the complete and effective recovery of its recycling system, which is the result of nearly half a century of hard work by Alcoa.
The result is that only packaging materials that effectively enter the recycling system of resource recovery and meet the requirements of sustainable development are truly vital and acceptable to the public. This is a guide to behavior that should be pursued in the promotion of polyester bottled beer today. In a German beer brochure, many advantages of cans are listed: • Not easy to break; • The quality is much lighter than glass bottles (355ml can weigh only 14g); • One-time packaging, effective recycling of raw materials; • Good code垛; · opaque, no light taste; · packaged beer can be pasteurized after sealing. In all fairness, all the advantages of the above canned beer are also the combination of polyester bottles, and the polyester bottle packaging beer has many advantages that the latter does not have, such as: · Packaging equipment, used for gathering For the ester bottle, the existing glass bottle packaging line can be used for the necessary design changes (in fact, there is a glass-plastic bottle dual-use bottle line), and the can packaging must cost a lot of money to re-purchase the special packaging equipment.
· For the same fixed liquid filling, the polyester bottle and the glass bottle can have the same filling accuracy, while the cans have much lower filling accuracy because the diameter of the can body is much larger than the diameter of the bottle neck.
· During the filling process, the polyester bottle has the same open area as the glass bottle, and the can opener can change the opening area of ​​the bottle package even if the 209 is changed to the 206 cover type (with the can diameter) Square is proportional to). To this end, cans packaging beer filling oxygen is much higher than bottled beer. · Polyester bottles and cans can not withstand vacuum, both use CO2 replacement to obtain low oxygen, but polyester bottles can be filled smoothly under long tube level. The beer industry insiders have traditionally considered this to be an effective low-oxygen filling method.


·The change of polyester bottle type meets the market fashion, the demand is more and more convenient.
It can also be cited where many polyester bottles are superior to cans. The conclusion is that the price/performance ratio of polyester bottled beer is much better than that of canned beer.
The manufacture of domestic aluminum two-piece cans began in 1985 with a total investment of 300 million US dollars to introduce 13 cans production lines, with an annual production capacity of 11 billion aluminum cans. In 2003, there were 2 billion cans of canned beer, about 600,000 tons (thousands of liters), accounting for 2.3% of the total beer production in the country, an increase of more than 8% year-on-year, which is higher than the average annual growth rate of beer by 5 to 6%. It reflects the domestic safe, lightweight and beautiful disposable packaging market, which is expanding. Cans packaging beer is feasible, polyester bottle packaging beer is bound to be feasible!


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Amazing aluminum can anti-corrosion: small coating, large technology