Integrated Production State-Of-The-Art Machinery And Comprehensive R&D
Interview with Lech Skibínski, Chairman of the Supervisory Board at KGL S.A., Poland:
SML: KGL is one of the leading manufacturers of thermoformed packaging in Poland and a major player in the European packaging industry. Which fields of the packaging sector do you mainly serve?
Lech Skibínski, KGL: We have a strong focus on the FMCG sector and our customers come, among others, from the confectionary, the meat and HoReCa (Hotels/Restaurants/Catering) segments. A business with sharp rising sales is cups for beverage and dairy products. Packaging refinement (i.e. with pads or printing) is another production branch that significantly extend our possibility to serve the markets. Certifications, such as the BRC (British Retail Consortium), are the basic prerequisite for us to be successful in these areas.
SML: When did KGL’s success story begin?
Lech Skibínski, KGL: KGL is not only about the production of film and packaging. Not everyone knows that we started our business as a distributor of polymers (granules) over 30 years ago in 1992. To this day, this is a very important part of our business. We are a leading supplier of plastics mainly in Poland, but we also successfully deliver them to countries in Central Europe such as Czech republic, Slovakia and Hungry, as well as to the Baltic countries. We serve over a thousand customers of various sizes operating in all major areas of the economy, such as construction, automotive, household appliances, food, cosmetics, toys and many more. It is one of our priorities to maintain our position of a reliable partner, also for medium and small companies. Especially these companies often need the distributor’s support in solving process problems, adopting new technologies and accessing raw materials from international manufacturers.
SML: There are not many companies that are active in both areas: PET and PP thermoforming. How did this come about and what are the advantages?
Lech Skibínski, KGL: The fact that we are present in both areas, PET and PP, is the result of a strategic decision that we took many years ago. The strategy of offering complementary products is rewarded by our customers a hundred percent. Generally, it would be difficult to maintain the position of one of the biggest players on the market without selling packaging made of various types of raw materials. In a large part of our business, KGL acts as a service company for its customers. Accordingly, we accept our customer’s decisions regarding their choice of raw material from which a commissioned product will be made, in the same way as when they choose a raw material for their own use.
SML: KGL plays a pioneering role in the development of new packaging solutions. How important is product development for the growth of your company?
Lech Skibínski, KGL: The development of the product portfolio is a key factor in running a business in a future oriented way. The role of R&D in KGL has always been a crucial, but recently, due to the dynamically changing legal conditions and a highly competitive market, this aspect has become even more important. All processes at KGL, be it the production of film, packaging, production tools or regranulates, are created with the support and supervision of an extensive technological and laboratory department. A key part of our Research and Development Center is our modern and well-equipped laboratory, where we can carry out a wide variety of tests and measurements. We are constantly improving our technology and production processes in order to further raise quality and to limit the impact of our products on the environment.
SML: KGL manufactures the sheet for its thermoformed products on its own extrusion equipment, and you design and manufacture the tools for the thermoforming process yourself. What are the advantages of an integrated production, from the granulate to the finished packaging solution?
Lech Skibínski, KGL: Thanks to our “from granules to packaging” strategy, we can offer our customers a number of benefits. Since our production process does not depend on the need to cooperate with external companies, we have comprehensive control over our production and our delivery times. Such a business model provides security and also gives us the ability to keep all kinds of research and development work secret. Which in turn facilitates the development of new types of film and packaging products. Generally speaking, in a highly competitive market, this approach allows us to maintain and increase our competitive edge.
SML: You were one of the first companies to launch thermoformed products with a foamed PP material structure as an alternative to EPS packaging. What advantages do these products offer and how challenging was it to establish these products on the market?
Lech Skibínski, KGL: EU regulations like the single-use plastics directive and the ban on the use of EPS (expanded polystyrene) packaging have accelerated the development of innovative packaging products. KGL took advantage of the new regulations and introduced fully recyclable packaging made of XPP polypropylene foamed film for take-away meals to the Polish market. KGL, in cooperation with SML, has developed a technology for the production of polypropylene foamed structures with a significantly reduced density compared to solid structures. Foaming is carried out on an extrusion line equipped with a device in which the inert gas is effectively mixed with the molten plastic. Reducing the density of the film through foaming means reducing the unit weight of the packaging. The new products are perfectly in line with KGL’s pro-environmental commitments, which include, among others, abandonment of multi-material structures and reduction of packaging weight.
SML: KGL and SML has been partnering for more than 10 years. Recently you finalised the contract for the 6th and 7th SML extrusion sheet line. What is important to you in a long-term partnership like this and particularly in joint product development?
Lech Skibínski, KGL: SML is a key partner of KGL. The relationships developed by our companies pay off in everyday cooperation and we are very satisfied with it. As part of the cooperation between the R&D teams of our partners from Austria and KGL, we have managed to develop unique material structures (including foamed PET and PP), which KGL successfully places on the market both in the form of film and packaging products. An important element of the success of our partnership is constant and open communication based on trust. We know if a new technology is created at SML, that potentially fit into our business, we are one of the first to have a chance to get acquainted with it and test it. Such situations have occurred many times in the past. For us, SML is also the first choice when it comes to extrusion technologies. Personally, I think that in the future we will be able to expand our cooperation to other technologies.
SML: The packaging market is constantly changing. In which direction will the market for thermoformed products develop in the near future?
Lech Skibínski, KGL: As a conscious market participant, KGL fits in with the view that the circular economy in the plastics industry will soon become a reality. The market will be dominated by entities that will be able to adapt to the requirements of market regulators, related to limiting the use of polymers derived from fossil raw materials and maximizing the use of secondary raw materials. KGL already meets the needs of those customers, for whom the fight against climate change is important. Our business development strategy is based on maximizing the use of recyclates for our films and packaging products. This approach requires the use of equipment and machines, that will be able to process recyclates into quality products. The strategic decision that KGL made many years ago – to choose SML as the supplier of extrusion lines – today perfectly fits to our endeavour to offer innovative products to the market.
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