Plastics and metal packaging manufacturer NCI has taken a step forward in expanding its industrial and food services product range with the acquisition of the HP Steel business from receivership.
HP Steel produces 60 litre, 205 litre and 220 litre drums from steel and stainless steel.
NCI is the latest in a string of owners for the company. It was originally part of Van Leer, before becoming part of Greif Inc and then finally part of HP Industries.
“Given NCI’s long history producing large drums at its Papua New Guinea plant, the key ingredients NCI will provide is stability and strong metal packaging knowledge,” NCI managing director Michael Tyrrell says.
In recent times, HP Steel progressively lost the support of a number of its customers. As a direct result of this decreasing market share, NCI says it has decided to mothball HP Steel’s Queensland site. Queensland customers will now be serviced from either the Altona (Victoria) and Seven Hills (NSW) operations.
NCI says it is committed to maintaining market responsiveness and growing this segment of industrial packaging in Australia.
NCI’s regional sales and marketing manager, Lee McElhatton, says that one of the most reassuring aspects of the due diligence process was the “support and goodwill offered by customers, their commitment to ensuring a viable alternative supply channel for large drums and the assurances from the wider market to support NCI with a proportion of their business”.
“It’s critical for us and for our customers, that there is a viable and responsive supply option and we can only guarantee this if the whole market supports us with regular and ongoing volumes,” McElhatton says.
Management of the large drum business has been entrusted to Peter Spassopoulos, an NCI veteran of more than 30 years, who says: “This is a fundamentally good business that will benefit from some focus and direction.
“Our primary objective is to overlay some basic NCI controls and structures, while maintaining delivery performance and responsiveness.
“Longer term, NCI will be exploring synergies from its wide-ranging experience in metal packaging and looking to apply its knowledge into the large drum making process.
“This business will be focused on providing the best possible value proposition that covers service and quality.”
As a result of this acquistion, NCI now offers a full range of industrial/bulk metal packaging for volumes from 125ml through to 220 litres, as well as a comprehensive range of injection moulded plastic packaging and tinplate and aluminium aerosol cans.
NCI’s Tyrrell says the acquisition was important in giving Australian users a choice in metal drums suppliers.
At present, local packaging giant Visy Industrial Packaging accounts for the lion’s share of the local steel drums market.
“NCI has a long term belief in and commitment to Australian manufacturing,” Tyrrell says.
“In the end, our customers determine who they buy from and I just trust that people take a longer term strategic view to procurement and don’t just chase the short term savings.
“Having only one drum supplier is not in the interests of our customers or Australian industries. Customers should consider opening an account with NCI today, even if it’s only for use tomorrow.”
