I’ve read that EnergoPET has the biggest capacity of any PET packaging manufacturer in the region. What does this mean in concrete numbers?
EnergoPET is currently running 10 production lines 24/7, all year round. Our current capacity enables us to produce 1.2 billion PET preforms per year. As is usual in our business, we are also subject to seasonal fluctuations in sales.
Which products and which dimensions do you offer?
We focus exclusively on the production of high-quality PET preforms. Our range includes five different neck finishes and covers all bottle sizes from 0.25 to 3 litres. We mainly produce preforms for the beverage industry. However, applications for milk, household chemicals and beer are also on offer. And we can also provide a wide range of colours for all preforms.
EnergoPET began operations in 1997. What have been the company’s most important milestones to date?
A new course was set for the business in 2012, with far-reaching effects. A new investor was needed to provide the funding necessary for the further expansion of the company. It was our great good fortune to find what we were looking for with Austria’s Varioform. Their many years of experience in PET preform production has helped EnergoPET move forward in a variety of ways.
The second milestone was the introduction of our new IT system. Tasks that used to require a lot of people are now largely automated. For example, when an octabin is full, a label is automatically printed out, production costs are instantly determined, stock levels are updated, and the costs are charged to the customer. Thus, we are up to date in all areas of our production in real time. This increases our quality, speeds up processes and frees up high-value human resources that can be better used elsewhere.
EnergoPET sells around 70 per cent of its production in Serbia. Where does the rest go?
Our main export markets are Croatia, North Macedonia, Romania, Bosnia, Montenegro and, from time to time, Hungary. Our experience has shown that we can offer our products competitively within a radius of about 600 kilometres. At longer distances, the transport costs are just too much, which is critical in our price-sensitive business.
What are your bestsellers?
PCO preforms may outweigh other products a little bit, but EnergoPET doesn’t really have one product that clearly outperforms all others in terms of sales. Applications and formats vary from customer to customer. One interesting development: there seems to be a move towards transparent preforms among our customers. The recent trend of bottles with fancy colours seems to be over. This is advantageous, both in terms of recyclability and production costs.
EnergoPET claims to cover all the needs of the domestic market, and it continues to grow. In which specific areas do you see potential for EnergoPET’s further growth?
With our range, we can meet all the needs of PET preform users. In terms of quantities, we now cover around 40 per cent of domestic demand. I don’t consider it realistic to increase this rate by crowding out the competition. We are focused on growing by 5 to 10 per cent, in step with the organic growth of PET generally. If we can top that mark, all the better. Basically, our growth strategy builds on the long-term loyalty of our customers.
EnergoPET’s customers are also strong in dairy products. How do you see the future of this segment?
In general, this is a very attractive area for us, one that we can serve well with our know-how and experience. In contrast to the water business, there is no seasonality with dairy products, and we think it can help compensate for fluctuating capacities. This would be a strong positive for our systems and our organisation.
hy doesn’t EnergoPET offer multilayer solutions for dairy products?
In previous years there have been some requests for multilayer. But today, this approach has lost much of its appeal since the manufacturing costs are higher compared to monolayer preforms and the barrier properties of colours have improved significantly. Monolayer packaging also has clear advantages from a recycling point of view, I should add.
EnergoPET specialises in PET. Which packaging segments could still be replaced by PET in your market?
In the dairy products segment in particular, I see real expansion potential. Plasticised cardboard packaging, which is still widely used in many places, has a poorer ecological balance than packaging made of PET. A rethinking can be seen in the market these days. For me, however, applications using glass come first. The weight of glass packaging requires significantly more energy to transport than lightweight PET. The market has noticed this, which is why PET is being used more and more frequently in the food, household chemicals and cosmetics sectors.
In many countries, plastic has a very serious image problem. What do people in the Balkans think about plastic packaging?
There is no broad public opposition to plastic as there is in Western countries. Or maybe I should add: “not yet”. I see the reason for this in the general pace of our social development and the level of prosperity. However, we can assume that it is only a matter of time before that benign view about plastic changes.
What about recycling in Serbia?
We still have a very low collection rate for plastics. The authorities want to change this by introducing a deposit system for bottles. This idea has been under discussion for a number of years. In my opinion, it’s the only way that recycling can reach significant levels. The public does not yet know when this recycling system might begin.
What is the situation at EnergoPET with regard to alternative raw materials?
We have two customers for whom we regularly used post consumer resin PCR. Meanwhile, they have moved back to virgin PET. In terms of production, we are able to process PCR when asked to do so. Thanks to our parent company, we have in-depth know-how with this material. As you probably know, Varioform was the first supplier in Europe to use PCR commercially.
EnergoPET promises to always meet the needs of producers and consumers. How do you ensure that?
The keyword here is support. At EnergoPET, we not only deliver a flawless product, we also frequently exchange ideas with our customers and other specialists in order to achieve the best results. We also offer to accompany the entire design process and look at all aspects of the bottle and its form. And we can also provide samples on request. Our aim is always to achieve the optimum results for the customer through a partnership-based cooperation.
You work with high-tech, high-mech precision equipment. This requires qualified employees. How do you find them?
We maintain good relations with some of the best technical schools in our area, and we invite them on factory tours, since our type of production is not commonplace. In addition, Serbia has also recently launched a dual-track education programme, offering classes and practical work experience for the students. We fully support this approach, as we prefer to develop our professionals ourselves. We also make use of the training programmes offered by our machine, mould and device partners. Finally, it is also important to us to form our talented employees into a well-oiled team, because the best engineer or best manager in the world cannot do anything on his or her own. Everyone needs to contribute.
In addition to the scarcity of skilled workers, high energy prices are a major concern for many companies. What’s the situation like in Serbia?
The energy market is not as developed as it is in Austria or Germany. Our main supplier is a state-owned company and they base their pricing policy on prices in the West. This means that the energy costs are also a problem for us. For this reason, we plan to produce our own energy, covering the roof of our warehouse with solar panels, which will not only bring cost benefits but also increase our independence.
EnergoPET products are known for their high quality. What does a mould have to provide in order to be used at our company?
In everything we do, we pay attention to availability. That’s how we judge granulate, the machine capacity and our stock of preforms. Accordingly, we also expect a high availability of our injection moulds. During high season, we utilise the moulds of Otto Hofstetter AG to 90 per cent and to 75 per cent on average over the year. Their performance absolutely meets our expectations. Furthermore, a mould must function for many years just as it did on day one. Here, too, our partner from Switzerland scores well. The first mould, which we bought in 1997, is still in use.
You originally studied computer science and then worked in this field. How are you dealing with introducing the Internet of Things (IoT) or augmented reality (AR) technologies into your production?
For me, these developments are very interesting. I follow them very closely and I also see potential for our type of production in some of the innovations. In day-to-day business, however, we are still a long way from being able to efficiently use the already existing solutions. Before introducing new technologies, our basic infrastructure would need to be upgraded. With all my fascination for IoT and AR, we mustn’t forget that in the end it’s the people who really make the difference.
Does this mean IoT and AR are just fantasies of the future? What will EnergoPET look like in five to seven years?
Looking at the numbers, EnergoPET is now a sizeable and well-established company. In order to maintain its current levels, we are striving for restrained, long-term, sustainable growth. We will achieve this goal by continuing to pay close attention to our employees and by making well-considered investments. For example, we are actively looking at technologies that can reduce our energy consumption and our carbon footprint. This will help keep us competitive. When it comes to differentiation in the market, I think price will soon no longer be the decisive criterion.
What do you mean by that?
Based on my observations, I think that being the cheapest will soon no longer be the most important consideration for customers. Other criteria, such as the carbon footprint, recyclability, flexibility and reliability, will gain in importance. Thanks to the strengths of our parent company, we are already well positioned in these areas and we are ready to meet the future together.
Thank you for this insightful interview, Mr Popović. We wish you and your team continued success.
