City firm on road to recovery

   
SAM WILLIAMS
15 February 2008

Six months ago Norwich can producer Impress was warned it needed to "diversify or die" by city MP Ian Gibson after suffering successive job losses.

But in a follow up meeting yesterday, bosses at the 280-strong Heartsease factory insisted they were adapting - and say despite competition from plastic, there is a big future for the tin can.

The company, which celebrates 60 years at the former aircraft hangar off Salhouse Road next year, is the UK's biggest paint can producer, selling 80m a year - or two thirds of the market.

And much-loved goods from Heinz Baked Beans to Dulux paint are sold in containers manufactured by workers at the city plant.

But despite its major stake in the market, the company, which has 59 plants in 21 countries worldwide, has lost business to the rising popularity of plastic containers, which now account for half the paint containers sold nationally each year. This has resulted in staff numbers declining from a high of 470 to 280 today.

More than 20 workers were laid off last year, although all were voluntary redundancies.

But now Impress, a British-owned company with its headquarters in The Netherlands, which employs 8,600 across the globe, is staging a fight back - claiming its metal containers are the most environmentally-friendly option.

While the thousands of tonnes of steel which makes up each tin is 100pc recyclable, the polypropylene equivalents increasing in number on shop shelves nationwide are not, and must be dealt with by incineration or landfill.

Under European waste regulations councils nationally will soon face fines of millions of pounds if they fail to meet tight restrictions on the amount of rubbish sent to landfill.

And already the average can includes 54pc recycled metal, reducing the need to produce new steel, and that figure is set to rise.

While the number of cans produced at the Norwich plant has doubled in the past year, the amount of metal used has halved as lighter, thinner models are designed, again saving resources and CO2 released in transport.

And in a key development, designers at the Norwich site have come up with a ground-breaking lip-less paint tin, making it easier for the shoppers to tip out the paint and reducing the amount of metal needed by as much as a fifth.

Prototypes are currently being sent out to customers to gauge interest.

Account manager Matt Sykes told the Evening News, who joined Dr Gibson for an exclusive tour of the factory yesterday: "Customers have a choice, the choice to buy plastic or metal containers. They also have a choice over whether to recycle.

"If they want to recycle the choice is easier as the only product they can recycle in paint is the metal tin can.

"There is a big future for the can, it's the packaging of the 21st century.

"For something that has been around 200 years, it's got the best protection and environmental qualities. It's the best packaging format there is."

Life inside the company is also showing signs of improvement, with workplace accidents resulting in lost working hours down from 23 in 2005 to five last year.

Refurbishments have also been carried out to the site and bosses say moral is improving - although they admit there is more work to be done.

Last year the firm won several awards and was named most improved supplier by chemical giant ICI and winning gold for sustainability for its lever lid cans in the 2007 Best in Metal awards.

And the company is in good shape to meet potentially turbulent trading times ahead, according to UK general manager Paul Stokes.

He added: "We believe we have got a fantastic organisation and we are investing in the future, both on this site and as a whole business.

"We are trying to improve in every way, not just in the fabric of the building but in the way we engage with employees and the public.

"We have enjoyed a successful 60 years and are really looking forward to the next 60 years.

"We know we have got good products and the people we need, and if carry on doing the things we are doing and maintaining our responsiveness to customers that will increase our market share."

Dr Gibson, Norwich North MP, said he had seen a turnaround in attitudes at the company since his last visit, and will be meeting with union officials to discuss any further concerns they have.

He said: "I think the company is emerging from what I thought of as its Dark Ages. The company bosses are facing the threat from plastic containers much more positively.

"This is important for Norwich and the company seems to be much more up for the challenge.

"I am going away much more confident in the future here. The company is doing well and winning prizes.

"As long as you take up the challenges then Norwich is going to have a very strong manufacturing business in this field.

"Recycling has moved much higher up the agenda and you have addressed that."

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Call business reporter Sam Williams on 01603 772447 or e-mail sam.williams@archant.co.uk.