Schoeller Wavin And Arca Systems Joining Forces To Become World Market Leader
As from the 10 of this month (February) the Dutch company Schoeller Wavin Systems and the Swedish company Arca Systems formed one Group of companies under the name of Schoeller Arca Systems, to be based in the Netherlands. The new Group will become the world's largest manufacturer of plastic returnable packaging for material handling.
For many years, Schoeller Wavin and Arca have both been recognised as market leaders. Schoeller Wavin is leading the European crate and tray market for the beverage industry and pooling companies, whilst Arca holds a similar position in plastic returnable packaging used in a variety of industries. The two companies have more than 30 production and sales operations in practically all European countries and on the American continent, with hardly any overlap. Hence the merging partners are very complementary. Their total turnover in 2004 will amount to approximately 520 million EUR. Together they have a staff of about 1,750.
Expansion
"We are now making a tremendous step forward", states Schoeller Wavin's CEO René Wolfkamp, who will also become CEO of Schoeller Arca Systems. "For years both parties had their strategies aimed at broadening their product and market base. By joining forces we succeed in doing so in just one step, simultaneously becoming the number one in the world." In addition Mr. Wolfkamp recognises excellent opportunities for further expansion. "The global market for returnable plastic containers grows by 4-6% per annum due to the huge advantages over traditional materials like wood, steel and cardboard. Through our creativity and innovation in the development of cost saving solutions, we will surely be able to capitalize on various market opportunities. Apart from Europe our ambitions are also aimed at the United States and Asia."
Global sourcing
Arca's CEO Wiking Henricsson will take on a position as Vice Chairman of the new company's Supervisory Board. He is equally pleased with the merger. "I am sure this will be a benefit for all involved: customers, employees and shareholders. In a world of increased consolidation and globalisation, our industry has remained rather fragmented. Global companies like beverage producers, pool organisations and the automotive industry have an increasing need of global sourcing. We can now meet these demands and create global leadership, built on the platform both companies have successfully developed over the years. Offering our customers joint expertise, expanded R&D capacity and a worldwide network."
Chairman Martin Schoeller adds: "There is a global trend towards supply chain integration. Returnable plastic packaging will make this easier and more efficient, simultaneously saving and recovering resources. So by taking advantage of these opportunities, we will also be contributing to sustainable development."
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