An Interview With...


is produced.” In his view, it’s very achievable for the aluminium industry to get to net zero, “maybe somewhat easier than for some other big heavy industries because of the use of electricity and the potential for its decarbonisation. For example, we already have Brazil, which largely relies on hydropower for electricity generation”. “If we get recycling rates to where


we’re targeting, 100% in Europe and 70% in the US by 2030, if we keep that progress going then it won’t take that much to decarbonise the prime material and make a truly low / zero carbon aluminium,” he says, adding: “We obviously need to work on our own production facilities but I think there’s a good chance, with renewable electricity and some of the initiatives we’ve in place.”


Collaboration is the key


Transitioning to net zero may be achievable but not without building collaborations and considerations of all industry participants. A broad consensus is necessary. To this end, Graham notes that the main can makers have put in place a global beverage can sustainability coalition, involving everybody up and down the supply chain. Its first meeting was held in Rome last September, bringing together upstream players such as Rio Tinto, a producer of primary aluminium, the key rolling mills like Novelis, and key industry customers such as Heineken, ABI, Coca-Cola, and Pepsi. “We talked about different issues that everybody has in different parts of the value chain and how they can be addressed. It was a very good meeting, and we’ll have another one in 2024,” he says. Graham served as president of


Metal Packaging Europe (MPE), a post he held for two years starting in June 2021. Commenting on the MPE’s activity, he singles out the European Commission’s legislative agenda on packaging, with the single-use plastic directive and the packaging and packaging waste directive being some of the most prominent issues for the industry. “It’s critical for us that our product


is understood by lawmakers and that they understand the advantages


of beverage cans. It’s very important to stay connected to key policy makers and parliamentarians in Europe. We’re doing that very well. And it’s helping to make sure that the legislation is based on fact and science and not on myth. This is a key goal of MPE, which is critical for both the beverage and food can side of the industry.”


The fallout from external shocks in 2022


Amid an ongoing downturn in the industry, Graham notes that most of what has happened in the last two years has been a reduction of the growth rate, experienced by all industry players, and for which “there were reasons nobody could foresee”. Last year, all canmakers saw this correction due to external shocks, with the war in Ukraine and soaring inflation after Covid-19. “We see the consumer under pressure in the short term with recessions and near- recessions. Our customers put prices up significantly because of rising input costs, in particular as a result of the dislocation of the energy market in Europe,” he says, emphasising these setbacks are temporary. The current state of play has


meant that Ardagh Group has put on hold the construction of two manufacturing facilities – one for cans and the other for glass – in Brazil’s Juiz de Fora, Minas Gerais. The Brazilian greenfield project will be reviewed over the next year or two, Graham says, adding: “We need to keep an eye on the current growth of the Brazilian market. “Brazil suffered the most from


the economic downturn because of currency devaluation and the dollar’s strength. And metal is priced in dollars.” He goes on to explain: “After beverage cans grew at a very fast rate in Brazil, we saw a significant slowdown. Canned drinks prices were increasing at retail, the consumer


18 metalpackager.com


sustainability combined with the


efficiency and effectiveness


strengths of the can, its


traditional


tailwinds of innovation and


still have the strong


We


was under pressure and there was a move back to returnable bottles. We think this is temporary, but it meant that the growth trajectory slowed down, as it did to a lesser extent in Europe and North America due to similar inflationary issues.”


Looking ahead


Above: Ardagh for Education’


What does this mean for can makers this year and moving forward, I ask him. “This year, everyone is sorting themselves out.” For AMP specifically, Graham says that “We’re going back to the core of the business in terms of operational excellence: efficiency, materials usage, spoilage, etc. We’ve a couple of programmes to improve our operations, for example, the Plant of the Future programme is all about digital and other technologies that we will put into our plants.” In terms of any new investments,


he says: “We’re always looking at things, but it’s true that we’re in a phase where we’re reducing capital expenditure having completed a significant investment programme over the last couple of years. I think we’ll see growth in 2024 and 2025 and work on filling up our new capacity before we take on new investments.” In terms of what can be expected


on the innovation front, he says: “We’re already seeing recloseable solutions, but they’ve not been most consumer friendly, so we need better and less capital-intensive solutions on this front. Some categories need it, for example a portion of consumers like to drink water on the go, and sports drinks is another category where the consumer is used to recloseability. I think we’ll continue to see continued lightweighting of the can, and digital printing which is a big innovation, and innovation with coatings to address regulatory concerns.” As a final thought, I ask Graham


if he is excited for the future of the industry. “Absolutely”, he says, “we still have the strong tailwinds of innovation and sustainability combined with the traditional strengths of the can, its efficiency and effectiveness. When the short- term shocks subside we expect to be back in growth in a strong sector”.


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