Specialisation key to future success, says new owner of Novelis’ UK confectionery printing ops

02 Mar 2011

Specialisation will be the key to success, said Discovery Foils CEO, following the company’s purchase of Novelis’ UK confectionery foil packaging unit.

The company is going to be more focused on the confectionery industry, Steven Westwood, managing director of Discovery Foils, and former Novelis plant manager said.

“This is what will make the business work for us,” he said as he announced the completion of the deal.

Novelis, which supplies aluminium sheet and foil products throughout North America, Europe, Asia and South America, covers the broader aluminum industry and is therefore not as focused on confectionery packaging, said the CEO.

Bridgenorth-based Discovery Foils produces packaging primarily for the confectionery sector but also caters for biscuit, dairy and hair products.

Discover Foils has a worldwide customer base, supplying Hershey in the US as well as Cadbury and Wrigley in Australia. The company also serves smaller operations in Asia, Middle East and Africa.

The newly purchased Novelis’ business, which is also located in Bridgenorth, produces multi-coloured printed foil used as packaging for confectionery products for a number of international blue chip organizations around the world.

Period of stabilization

The CEO said the company had no immediate development plans for the new business and was initially looking for a period of stabilisation.

“The plant has been under threat of closure for six months,” he said, “We therefore want to stabilise the relationship with the customers and continue to build on what has been a good, successful reputation before we move too fast.”

There are approximately 320 people working on site. Of those, 215 work in the parts of the business which are to be closed, a spokesperson for Novelis said.

“The remaining 105 are transferring with the confectionery foil packaging business to the new owners, Discovery Foils,” she said.

December announcement

Novelis announced last December that it was looking to sell its printed confectionery business following the company’s plans to cease operations of its UK-based foil rolling and packaging lines by the end of April 2011.

It said the closures formed part of the company’s aim to improve the competitiveness of its overall foil and packaging production system. This was in response to over-capacity in the European foil market and increasing competition from manufacturers in low-cost countries.

John Gardner, a spokesperson for the company, said Novelis’ foil rolling line and laminate producing lines will be transferred from the Bridgnorth plant to other European-based Novelis facilities.

Source: Discovery Foils