December 03, 2008
Rasselstein growth bucks tin plate market trend
Dr Ulrich Roeske CEO of Rasselstein GmbH, Germany’s only tinplate producer, said that “Despite significant price increases, tinplate from Germany will remain in demand worldwide.”
Speaking to journalists in Düsseldorf, Dr Roeske outlined that how the Andernach based company, a subsidiary of ThyssenKrupp Steel AG, Duisburg, is gearing up to deal with stiffening global competition. Over EUR 160 million of capital investment in state of the art facilities in recent years have turned Rasselstein into the world’s biggest tinplate producer with a capacity of 1.5 million tonnes. The company employs around 2,400 people and is the biggest single customer of ThyssenKrupp Steel AG, taking around 10% of its hot band production.
Dr Roeske said that “Our existing customers have been a key factor, accounting for 95% of this growth. The company was pursuing an uncompromising premium strategy in which technology and quality are key priorities.” He added that the almost 250 year old company is a vital part of the local economy at its site at Rhineland in Palatinate. The latest investment by the ThyssenKrupp Group is seen as a commitment to the tinplate business and to Germany as a manufacturing location.
Dr Roeske said that the international tinplate market is a niche market, accounting for roughly 1% of total world steel consumption. Steel is resisting competition from other packaging materials thanks above all to its ecological advantages, a key factor alongside safety, cost and production related benefits. Whereas Rasselstein can rely on its innovativeness as an important competitive advantage over other materials and other tinplate manufacturers, cost is becoming a serious concern.
Dr Roeske said that “Never before have we experienced such a simultaneous explosion in the costs of almost all our input materials. With ore prices set to go up by 65% in 2008 and prices for alloying elements, coal, energy, scrap and transportation also rising, we face drastic increases in our starting material costs.” He added that one particular cost factor is the price of tin, currently at an all time high of over USD 20,000 per ton.
Dr Roeske said that “The increases in our own tinplate manufacturing costs come on top of the raw material costs pointing to already announced further price increases for hot band. These costs will have to be charged on to the market. Our customers have good arguments for passing on the price increases we are having to impose on them. Quality has its price.” Despite the concerns, Dr Roeske remains optimistic that “With the quality of its products and its unique range of services and technical support, Rasselstein is confident of continuing high demand.”
Rasselstein’s main sales region for tinplate, the raw material for food, beverage, aerosol and other cans, is the enlarged area of Europe. Bucking the trend on this generally stagnating market, it has increased both its market share and its absolute level of shipments.
