tetra laval_2009_2010

2009/2010

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DELIVERINGEVERYDAY EXCELLENCE

The global recession forced many of our customers

to cut down on investments. Instead, optimising and

reengineering the installed base has turned into a fi ne art.

The real recession heroes are the people who are

able to rethink, redesign and improve processes

and solutions already in operation.

As well as developing the solutions of tomorrow, we have

spent the last few years further developing the solutions of

yesterday. At Tetra Pak, Sidel and DeLaval we call that

delivering everyday excellence.

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TETRA PAK IN THE WORLD

DELAVAL IN THE WORLD

SIDEL IN THE WORLD

Machine assembly plants 11

Production plants for packaging

material and closures 42

Number of countries covered >170

Market companies 41

Sales offi ces 78

R&D units 11

Technical Service centres 41

Technical Training centres 16

Employees 21,672

Net sales in mio Euro 8,955

Local sales organisations 37

Independent dealers 1,166

Markets covered > 100

Manufacturing units 16

R&D units 3

Sales and Service Personnel 1,464

Installers 1,433

Delivery trucks and mobile shops 670

Employees 4,077

Net sales in mio Euro 805

Number of plants 25

R&D units 8

Service units 31

Number of countries covered >190

Employees 5,151

Net sales in mio Euro 990

TETRA PAKPROTECTS WHAT’S GOOD

Tetra Pak is the world leader in liquid food

processing and packaging. The business of

the company includes much more than the

packaging of liquid food products. Ice cream,

cheese, dry foods, fruits, vegetables and pet

food are exam ples of what can be processed

or packaged in Tetra Pak pro cess ing and

packaging lines. By developing ambient

packaging, which preserves the nutritional

value and the taste of products, the distribu-

tion of these food products to consumers

has been greatly facilitated.

DELAVAL

WE DRIVE PROGRESS IN MILK PRODUCTION

DeLaval is a full-service supplier to dairy farmers.

The company develops, manufactures and mar-

kets equipment and complete systems for milk

production and animal husbandry. Service and

sales of a wide range of accessories are also

key aspects of DeLaval’s operations. The com-

pany supplies highly effi cient system solutions

for milking, herd management, animal traffi c

control, feeding, cooling, manure handling,

ventilation and energy recovery.

SIDEL

PERFORMANCE AND INNOVATION.

THE RESPONSIBLE WAY.

The Sidel Group is one of the world leaders in

solutions for liquid food packaging. From its

two fi elds of strength, blow moulding and fi lling,

Sidel offers the equipment that is key to custo-

mers’ decision-making in the purchase of

complete bottling lines. Sidel has expanded

its activities to cover three major categories

of packaging: glass bottles (disposable and

returnable), plastic bottles (PET, HDPE and PP)

and metal cans.


WELL PROVEN PROCESSING SYSTEMS

Total number of delivered processing units 2009: 1,699

Other 2%

Dairy 46%

Beverages 15%

Ice Cream 11%

Cheese & Powder 15%

Prepared Food 11%

SIDEL 2009 SPLIT OF ORDER INTAKE BY MARKET SEGMENT

Water & CSD 40%

Sensitive 32%Beer 14%

Others 14%

Plastic 81%

SIDEL 2009 SPLIT OF ORDER INTAKE BY PACKAGING MATERIAL

Glass 12%

Metal 7%

Milking 50%Farm supplies 15%

Cooling 5%

Service & Original Parts 15% Hygiene 15%

DELAVAL SALES SPLIT 2009

Unite

d Sta

tes

Austra

lia

Uru

guay

Banglad

esh

China

Egypt

Mex

ico

Chile

Brazil

India

Korea

Can

ada

New

Zea

land

Argen

tina

Pakist

anRSA

Sub S

ahar

aEU

Turk

ey

Alger

iaIra

n

Japa

n

Russia

Ukr

aine

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

Thousand metric tons

MILK PRODUCTION 2009

USA & Canada

Iberia

Germany & Switzerland

Russia & Belarus

Arabia

Mexico

Japan

Italy

Brazil

China

5,000 15,000 25,00010,000 20,000 30,000

Mio packs

TOP 10 MARKETS IN PACKAGES

Total number of Tetra Pak packages sold in 2009: 145,030 mio

NET SALES 2009 IN MIO EURO

Total Tetra Laval Group 10,755

Others 10

Tetra Pak 8,955

Sidel 990

DeLaval 805

NUMBER OF EMPLOYEES, DECEMBER 2009

Total Tetra Laval Group 31,202

TETRA LAVAL INTERNATIONAL

Tetra Laval International is the fi nancial support

and control function for the Board. This organisa-

tion is responsible for fi nancing the Tetra Laval

Group, Group tax planning and managing the legal,

fi nancial and equity structures. Tetra Laval Inter-

national proposes and ensures compliance with

Group reporting processes, undertakes all Mergers

& Acquisitions work and plays the lead role in

corporate governance, internal audit and risk

management.

TETRA LAVAL

The head of each industry group has operational

management responsibility for their own industry

group and therefore reports directly to the

Tetra Laval Group Board. The Group Board is

responsible for the overall strategy of the Group

and for controlling and supervising all of its

business operations.

Larry Pillard is Chairman of the Board. The Chair-

man ensures the implementation of strategy and

policy for the Group. The Chairman monitors the

implementation of Group Board decisions by the

industry groups and Tetra Laval International.

Others 302

Tetra Pak 21,672

Sidel 5,151

DeLaval 4,077


Overall, 2009 was a good year for the

Tetra Laval Group. We faced many

uncertainties due to the economic

downturn. However, we were able to

perform well under these diffi cult

circumstances and, by and large, we

can be very pleased with the perfor-

mance of the Group.

Overall revenue fell by 2.6 per cent

to € 10,755 in 2009. At comparable

rates the contraction was 2.8 per

cent. Our industry groups managed

costs sensibly and improved their

operational effi ciency. We also managed

our capital investments well, and when

there were growth opportunities in the

market, such as in Asia, South Africa

and the Middle East, we invested. At the

same time we postponed investments

in other markets, such as in Europe,

due to overcapacity or slower growth.

Despite the challenging economic

environment we continued our invest-

ment in R&D. Our industry groups

spend approximately 3 to 4 per cent

of sales on R&D. We are proud of our

strong commitment to R&D and it is im-

portant for our customers to know that

we are continuing to invest in our future.

STRONG ACHIEVEMENT BY

TETRA PAK

Tetra Pak had another very good year.

Even though sales were almost fl at,

mainly due to customers’ postpone-

ment of capital expenditure, Tetra Pak

once again delivered strong results.

Sales increased in markets such as

Asia and the Middle East. However,

North America, Europe and some

countries in Eastern and Central

Europe did not enjoy meaningful growth

in 2009. Cost management and

productivity improved substantially.

Tetra Pak also did an excellent job in

managing its balance sheet, particu-

larly optimising inventories and managing

capital expenditure and working capital.

This good operational result was

favour ably supported by the fact that

commodity prices, for example for

paper, aluminium and plastic, increased

more slowly than anticipated. Overall,

Tetra Pak’s strategy of focusing on

its core business has again proved

advantageous.

DELAVAL’S QUICK RESPONSE

TO A CHANGING MARKET

DeLaval had a respectable year and

achieved good results. While 2008

was an exceptional year in the market

place, 2009 was much more diffi cult.

Farmers suffered as milk prices fell

dramatically around the globe, espe-

cially in North America and Europe.

As a result, farmers reduced their in-

vestment in new capital equipment,

which in turn affected the company’s

sales signifi cantly. DeLaval anticipated

the diffi cult market conditions and

management and employees across

the company responded quickly by

revising their budgets and cutting

costs. The company managed to

quickly adjust its organisational struc-

ture to match the changing market

conditions. Helpfully, the reduction of

capital spending by DeLaval customers

opened up opportunities for repair,

spare parts and service – thus this

important part of the DeLaval business

performed well.

TWO MAIN CHALLENGES

A key factor for DeLaval in the years

to come is an increase in global milk

prices so that farmers can return to

profi ts. When this happens, farmers

will be in a position to make capital

investments, which in turn will benefi t

DeLaval, as the leader in top quality,

state of the art dairy equipment.

There are signs of an improving global

economy which should eventually in-

crease the demand for milk and push

up prices. The question is more about

the timing of this, which is diffi cult to

forecast.

The other opportunity for DeLaval is

to play an important role in the reduc-

tion of the carbon footprint of dairy

farming. DeLaval is in a great position

for this as a market leader in sustain-

able dairy farming, and has several

ongoing projects aimed at reducing

CO2 emissions and improving

manure/waste management.

POSTPONED ORDERS PUT

PRESSURE ON SIDEL

2009 was a diffi cult year for Sidel.

While both Tetra Pak and DeLaval are

dependent on their customers’ invest-

ment in capital equipment, this is even

more the case for Sidel. The market

for bottling and fi lling lines became a

market where customers put orders

on hold or cancelled them during the

past year. The life cycle management

part of Sidel’s business, including service

and spare parts, has benefi ted from

the market situation, although this is a

relatively small part of Sidel’s overall

operations. In this diffi cult business

environment the management of Sidel

continues to deliver according to the

restructuring plan and has additionally

increased its cost reduction targets.

SUBSTANTIAL EFFORTS ON R&D

As well as focusing on operational

effi ciency Sidel continues to make

substantial efforts within R&D. The

company has a new aseptic fi ller and a

new family of blowers and labelers in

the pipeline. With investments being

made in R&D, Sidel can effi ciently

GOOD PERFORMANCE IN A DIFFICULTBUSINESS ENVIRONMENT

Comments by the Chairman of the Board

6 TETRA LAVAL 2009/2010 / COMMENTS BY THE CHAIRMAN OF THE BOARD


meet the needs of its customers for

stand alone machines or complete

bottling and fi lling lines. Sidel also

continues to invest in markets with a

strong growth potential. The Beijing

factory, the largest investment in the

history of the company, is a very good

example of how Sidel is positioned to

work closely with their customers in

the Asian market.

ANOTHER GOOD YEAR FOR

TETRA LAVAL INTERNATIONAL

Tetra Laval International had another

successful year. Some of the main

achievements involved Tetra Laval

International’s support of the industry

groups in managing their balance

sheets, an investment in a new IT

system for the treasury function, and

the continued leadership of the Group’s

corporate governance framework.

The Board of course bears the ultimate

responsibility for corporate governance,

but Tetra Laval International has been

supporting the Tetra Laval Group

Board with this important initiative.

POSITIVE SIGNS FOR 2010

Looking ahead, I anticipate that 2010

should be a solid year for the Tetra Laval

Group. Through the actions taken by

governments there is improved under-

lying stability in the global econo my

and hopeful signs for an economic

recovery. Another positive factor is

that raw material prices are expected

to remain stable offering us better

cost control. We are also optimistic

about the potential for our sales

growth, despite the opportunities being

unevenly spread around the globe.

Asia, Russia and the Middle East are

just a few of the markets where we

would like to capitalize on opportunities.

For 2010 Tetra Pak will continue to

focus on quality, operational effi ciency

and top line growth. DeLaval will con-

tinue with effi ciency improvements and

introducing new products to the market.

Amongst others, more robotics and

automation will be added to their

range of products for dairy producers

and an increasing focus on sustain-

able dairy farming. Sidel will complete

its restructuring plan, continue devel-

opment of new products and capitalise

on the growth opportunities in places

such as China.

EXCEEDING CUSTOMER

EXPECTATIONS

Quality is the theme for this year’s

brochure. 40 years ago my fi rst job

was as a chemist in a quality control

laboratory. To me quality has many

aspects beyond the more obvious

ones, such as developing, delivering

and installing the product according

to customer specifi cation, protecting

the environment by continuously

reducing the environmental footprint,

and constantly improving everything

we do. Above all, quality is about

exceeding customer expectations.

Finally, I would like to express my

gratitude to all employees within the

Tetra Laval Group for their outstanding

work and sacrifi ces during the challeng-

ing year of 2009. With improved effi -

ciency and new products, we have

the opportunity to grow when the

economy turns upwards, and by

taking good care of our customers

we can strengthen our market position

in the years to come.

Larry Pillard

“We are optimistic about the potential for our sales

growth, despite the opportunities being unevenly

spread around the globe. Asia, Russia and the

Middle East are just a few of the markets where

we would like to capitalise on opportunities.”

7TETRA LAVAL 2009/2010 / COMMENTS BY THE CHAIRMAN OF THE BOARD


The three Tetra Laval industry groups

have operations and representatives in

more than 170 countries. It is a decentra-

lised organisation but with clear rules

and guidelines. The framework for

Corporate Governance establishes the

Board’s expectations for the industry

groups, and communicates govern-

ance guidelines throughout the organi-

sation. The Tetra Laval Group Board

has six other areas of responsibility.

• Corporate governance seeks to

promote compliance with regula-

tions, transparency and accounta-

bility, and can be defi ned as the

relationship of a company to its

stakeholders. The Corporate

Gover nance structure specifi es

the distribution of authorities and

responsibilities between the Board,

management and shareholders,

and spells out the guidelines and

procedures for making decisions

with regard to corporate affairs.

• Financial and operational control is

a second major responsibility for the

Tetra Laval Group Board. To support

the Board in these functions, an

Audit Committee and a Remunera-

tion Committee have been formed.

The Remuneration Committee deals

with the overall policies concerning

TETRA LAVAL GROUP BOARD– a supervisory board to the Tetra Laval operational units

8 TETRA LAVAL 2009/2010 / TETRA LAVAL GROUP BOARD

SIR KEITH WHITSON

A non-executive Board Member since

2005. Sir Keith Whitson is retired

Group Chief Executive of HSBC

Holdings plc. He also served as a

non-executive Director of the Finan-

cial Services Authority in London from

1998 to 2003. During his career with

HSBC he worked in Hong Kong,

USA, Germany, Malaysia, Indonesia

and the United Kingdom.

JÖRN RAUSING

A non-executive Board Member of

the Tetra Laval Group Board since

1991 (an alternate Board Member of

the Tetra Pak Group Board since 1985).

Jörn Rausing is also a Board Member

of Alfa Laval AB and DeLaval Holding

AB and of Ocado Ltd. He is the

Tetra Laval Group’s head of Mergers

and Acquisitions. He is also the

Chairman of the Remuneration

Committee of the Tetra Laval

Group Board.

LARRY G. PILLARD

Chairman of the Board since 1 January

2003. Larry Pillard joined the Board

as non-executive Board Member in

2001. He was previously Chief Execu-

tive of the Tate & Lyle Group since

November 1996. He joined the British

based sugar, cereal sweetener and

starch company in 1992 as President

and Chief Executive Offi cer of A E

Staley Manufacturing Company, the

subsidiary responsible for all starch

operations in North America. Prior to

Tate & Lyle he was with Cargill Inc

for 23 years. He is a non-executive

director of Bunge Ltd, USA.

PAUL SKINNER

A non-executive Board Member

since 2005. Paul Skinner is Chairman

of Infrastructure UK, a division of HM

Treasury. He was previously a Group

Managing Director of Royal Dutch/

Shell and Chairman of Rio Tinto plc.

He is also a non-executive director of

Standard Chartered plc and Air Liquide

S.A., and a non-executive member of

the Board of INSEAD, the European/

Asian business school.


remuneration within the Group and

with salaries and other benefi ts for

senior management. The Audit-

Committee deals with both internal

and external issues and is respon-

sible for the proper maintenance of

an audit organisation, and of course

review of the fi nancial results.

• Development and defi nition of overall

strategies and policies is a third area

of responsibility. Although the industry

groups have different business

models, strategies, and operate

independently from each other, there

are a number of areas where common

policies are benefi cial to the Group.

• The appointment of senior manage-

ment is a fourth major area of board

responsibility. In addition to approving

senior management appointments,

the Tetra Laval Group board also

ensures that the industry groups have

appropriate succession planning for

senior positions.

• The fi nal two other issues in which

the Board takes a direct role are in

defi ning fi nancial targets for the

Group’s different operations and for

total resource allocation within the

industry groups.

The Tetra Laval Group Board

schedules four regular meetings each

year and when circumstances require,

additional meetings take place.

9TETRA LAVAL 2009/2010 / TETRA LAVAL GROUP BOARD

KIRSTEN RAUSING

An alternate Board Member since 1985

and a non-executive Board Member

since 1991. Kirsten Rausing is a

member of the Jockey Club and a

director of Jockey Club Estates Ltd.,

and formerly of the Animal Health

Trust, the British National Stud and

the British Bloodstock Agency, plc.

In addition, Ms. Rausing is the past

Chairman of the European Federation

of Thoroughbred Breeders’ Associa-

tions (Paris) and of the E.F.T.B.A.

Veterinary Commission. She is the

current Chairman of the Thorough-

bred Breeders Association of Great

Britain.

BERND PISCHETSRIEDER


since 1999. Dr. Bernd Pischetsrieder

has been Chairman of the Board of

Management of Volkswagen AG from

2002 to 2006. He has been Chairman

of the Board of Directors of Scania AB,

Sweden from 2002 to 2007. He is

Member of the Supervisory Boards

at Metro AG and Münchener Rück-

versicherungs-Gesellschaft AG, all

based in Germany.

FINN RAUSING

A non-executive Board Member of

the Tetra Pak Group Board from 1985

to 1989 and of the Tetra Laval Group

Board from 1995. Finn Rausing, who

is the Chairman of the Audit Committee

of the Tetra Laval Group Board, is

also a Board Member of Alfa Laval AB,

DeLaval Holding AB, Swede Ship

Marine AB and Nordkap Holding AG,

as well as Chairman of R.R. Institute

of Applied Economics AB.

JÜRGEN WEBER


since 2003. Dr. Jürgen Weber

became Chairman of the Supervisory

Board of Deutsche Lufthansa AG in

June 2003 after having served the

company as Chairman of the Board

of Management for twelve years. He

is Chairman of the Supervisory Board

of Willy Bogner GmbH & Co. KGaA

and LP Holding GmbH and member

of the Supervisory boards of Allianz

Lebensversicherungs-AG, Bayer AG

and Voith AG, all based in Germany.


2009 was a strong year for Tetra Pak

despite having to deal with some diffi -

cult market conditions, such as the

melamine crisis in China and the global

fi nancial crisis. In summary, Tetra Pak’s

sales volumes increased by one per cent

in 2009 and a strong operational

result was achieved. We also improved

our inventories, capital expenditure

and working capital, which strength-

ened our balance sheet.

A QUICK RECOVERY IN CHINA

The good results were helped by a

much quicker recovery of the Chinese

milk market than fi rst thought. The

Chinese government acted effectively

and decisively through a variety of

measures, such as closing plants which

did not live up to normal quality stan-

dards, stricter regulations, and follow-up

inspections. These actions have

restored confi dence amongst Chinese

consumers. Additionally, the com-

modity prices took a tumble after

having peaked during the fall of 2008,

particularly for plastics, and this

helped us to reduce costs. Tetra Pak

also conducted a strict cost control

operation during the year and post-

poned investments which were not

essential in the short-term.

20 NEW PRODUCTS

During 2009 Tetra Pak launched 20

new products. The Tetra Pak A3/iLine

was further developed with the em-

phasis on cost-driven innovation. The

new fully automated line reduces the

customers’ operational costs by an

impressive 10 to 40 per cent. The new

version of the Tetra Brik Edge pack-

age with increased convenience

was well received by customers,

retailers and consumers and the new

Tetra Lactenso Aseptic product – UHT

processing equipment – reduces the

consumption of water, steam and

waste. In addition the next version of

GOOD RESULTS DESPITEA DIFFICULT MARKET

Comments by the CEO, Tetra Pak

Tetra PlantMaster gives full control and traceability. Favourable development in China.

10 TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, TETRA PAK


Tetra PlantMaster gives our customers

full control of their operations with high

traceability information, which allows

milk to be traced back all the way to

the individual farm and cow.

POSITIVE DEVELOPMENT

IN CHINA

From a geographical point of view

China developed favourably for us,

despite fi erce competition. Our volumes

grew by four to fi ve per cent in 2009,

which was well ahead of our competi-

tors, and we predict a similar level of

growth during 2010. There are many

non-system suppliers in the market,

some of them with global ambitions.

In addition, PET suppliers are trying

to gain market share.

Besides increased competition the

Chinese market is greatly infl uenced

by the importance of environmental

friendliness. This is a signifi cant

opportunity for Tetra Pak, since we

have focused on sustainability matters

for a long time with good experience

in many other places in the world.

BRAZIL MAINTAINED A STRONG

ECONOMY

Brazil is an amazing story. Despite the

global economic downturn the country

has managed to maintain a strong

economy. Our volumes grew by

around fi ve per cent in Brazil in 2009

and we expect them to continue to

grow during 2010. There is a huge

potential in the market, partly due

to conversion to ambient milk. For

instance, in Northern Brazil the con-

sumption is focused on powder milk

but gradually the preference changes

to packaged milk. In order to adapt to

customer needs we introduced the

new Tetra Brik Aseptic Edge package

with lower cost and better conveni-

ence than plastic pouches on the

market.

DIFFICULT MARKET IN RUSSIA

The Russian market had a diffi cult

development during 2009. The fi nancial

crisis hit the market earlier than in many

other places. We expect that 2010

will also be a year without growth.

The juice and nectar segment has

been particularly affected by the crisis

however the milk market has remained

stable. A positive trend is that the

packaged ambient milk market is

growing. Most of the milk in Russian rural

areas is not currently packed which

creates a big opportunity for us.

GROWTH IN SOUTH AND SOUTH

EAST ASIA AND MIDDLE EAST

South and South East Asia continued

to grow during 2009. More or less every

single market grew, which can be

“Tetra Pak’s sales volumes increased

by one per cent in 2009 and a strong

operational result was achieved.”

11TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, TETRA PAK


attributed to growth in the ambient

chilled market.

Similarly the Middle East and

surrounding area had a fantastic year

with a double digit growth. Both the

milk segment and the juice and nectar

segment experienced positive

develop ment.

INVESTMENTS FOR GROWTH

Due to the economic recession Tetra Pak

held tight when it came to investments.

However, in Pakistan we continued

our investments in the new factory.

We expect to inaugurate the plant

during 2011. This is an important

development based on growth oppor-

tunities. We also continued to upgrade

our equipment such as new closures,

printers and laminators. In addition,

we have continued to invest in R&D in

order to be able to supply our customers

with new innovative products.

FOCUS ON LEADERSHIP

In order to cope with the increasing

requirements of our customers we

invest a great deal in training and

skills development courses for our

people. We have adapted our leader-

ship curriculum for executives and link it

closely to our strategy. Leadership

assessment and continued development

of our executive program are important

measures to strengthen our culture.

We are very pleased with the high

degree of our employees’ engagement

throughout the world, which is a foun-

dation to continue to drive our strategy.

IMPROVEMENT ON QUALITY

Quality has been in the spotlight this

year. Customer feedback told us that

our quality performance has been

borderline and that there was an oppor-

tunity for substantial improvement.

In response we initiated the quality

programme with the aim to be the

undisputed industry leader in quality.

Our short-term focus is to meet the

goals of our quality dashboard and to

exceed customer expectations. We

are working to improve issue resolu-

tion, focusing on problem collection

and prioritisation, and then quick

solution development and implemen-

tation. We are gradually improving on

quality and will continue to focus on

this area for the next few years.

2010 – YET ANOTHER

CHALLENGING YEAR

Looking at 2010 we have a cautious

view on the market development. We

believe it will be another challenging

year. The high rate of unemployment

will affect the consumption of milk as

well as juice and nectar, particularly in

Europe and in some selected devel-

oping markets. This is likely to mean

our customers will postpone their in-

vestments. The lower level of orders for

our Processing business will not be fully

compensated by the development of our

Packaging business. So a fl at develop-

ment of volumes is a likely scenario.

Our long-term objective is to kick-

start healthy growth again. We are

developing a new growth strategy for

the next decade and during 2010 we

will focus on continued improvement

of customer satisfaction through our

quality programme. We will also be

keeping a tight cost schedule involving

low cost sourcing, in order to reach our

fi nancial objectives. In addition, we will

be focusing on product development,

for example introducing a new carton

bottle, Tetra Evero Aseptic, to the value

segment. By continuing to strive for

improvements to quality alongside

innovation we can strengthen our

market leading position.

Dennis Jönsson

“We are developing a new growth strategy

for the next decade and during 2010 we

will focus on continued improvement

of customer satisfaction through our

quality programme.”

12 TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, TETRA PAK

Double-digit growth in the Middle East.


THOMAS ANDERSSON

LEGAL AND TAX

NILS BJÖRKMAN

COMMERCIAL OPERATIONS

ALISTAIR DAVIDSON

FINANCE & BUSINESS TRANSFORMATION

MICHAEL GROSSE

DEVELOPMENT & ENGINEERING

ANDREAS KARL

HUMAN RESOURCES

SAM STRÖMERSTÉN

PROCESSING SOLUTIONS

ALEX ANAVI

SUPPLY CHAIN OPERATIONS

JÖRGEN HAGLIND

CORPORATE COMMUNICATIONS

DENNIS JÖNSSON

PRESIDENT AND CEO

Tetra Pak

Global Leadership Team

13TETRA LAVAL 2009/2010 / TETRA PAK GLOBAL LEADERSHIP TEAM


2009 was indeed a challenging year

for DeLaval and the whole dairy industry.

The global economic downturn has

severely affected farmers and resulted

in a signifi cant decrease in capital

goods investment. However, we have

been able to leverage on our after-

market and services offering where

we have experienced growth. The

strength of our complete offering has

made it possible for us to stay close

to our customers by providing them

with the right products and solutions

even when major investments are not

an option.

Within the Group we have worked

throughout the year to continuously

adapt our capacity and cost base to

refl ect the market reality. DeLaval

employees have stepped up to the

challenge in 2009 and I am confi dent

that the consolidated efforts of the whole

group have given us a fi rm foundation

on which to grow the business and meet

the market turnaround when it comes.

CHALLENGING MARKET

CONDITIONS

During 2009 dairy farmers experienced

the most diffi cult market conditions

seen for many years. Low milk prices

combined with high input costs

caused erosion in the dairy producers’

equity. Many farmers are still operating

with a negative cash fl ow, or have not

yet managed to catch up with losses

incurred during 2009.

Milk consumption in China and

investment in the dairy industry has

recovered to a large extent since the

melamine crisis. During 2009 an in-

crease in demand was met mostly by

imports. However, there is a decisive

policy in place to support and build

up the domestic dairy industry. Since

the crisis, both consumer and gover n-

mental awareness of food and dairy

product quality in China has increased.

Policies and guidelines on raw milk

production and sourcing have been

created and focus on the development

and implementation of milking and

dairy production standards improved.

In the US, production levels in 2008

STAYING CLOSE TO CUSTOMERSIN CHALLENGING TIMES

Comments by the CEO, DeLaval

14 TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL

The complete offering makes it possible to stay close to our customers.


had geared up to meet an export de-

mand. When the economic crisis came

it impacted the US dairy industry not

only with a decrease in domestic

demand, but also the disappearance of

export opportunities with low interna-

tional demand and a very strong USD.

In Australia and New Zealand the

market has been relatively positive

considering the circumstances. The

strong USD supported a sharp in-

crease in exports from Oceania, well

timed with the start of season. How-

ever, production volumes have been

lower than expected due to the negative

effect of a drought in New Zealand.

Despite a tough year we now see

signs of recovery in China, Japan,

Canada and Latin America and even

in Northern Europe we see some

positive market development.

2009 ACHIEVEMENTS

Against a background of economic

instability and continuous adjustments

to align to the market there have also

been a number of signifi cant achieve-

ments this year. In 2009 we success-

fully launched a number of new prod-

ucts to strengthen our offering. The

InService™ campaign is now launched

in many markets improving service

provision to customers. This year also

marks the ten year anniversary of the

VMS and we see growing interest and

demand for automation in the dairy

industry.

In November we opened a new

Good Manufacturing Practice (GMP)

facility in Drongen, Belgium. The

opening of this facility is a signifi cant

move towards positioning DeLaval in

the Biosecurity and Animal Health area.

The facility will support our ambition

to be a leading player in the produc-

tion of advanced veterinary medicinal

products and is a state-of-the-art

production environment.

LEADERSHIP AND EDUCATION

From a people perspective the fi nancial

crisis has had a clear impact on the

organisation. Already at the turn of

the year 2008-2009 the process to

adjust the global organisation to refl ect

market conditions was started. The

number of employees within the Group

was reduced by 20 per cent in 2009

and a major re-organisation was

implemented to better align the

company with the new market and

customer demands, leaving us well

prepared to gear up for a market

turnaround.

PREPARED FOR MARKET RECOVERY

We cannot be sure when a signifi cant

market upturn will come to the dairy

industry and to what extent. We see

the fi rst signs of recovery in many

markets with milk prices stabilising

and even increasing in some regions.

Our focus now, is on growing our

market shares and increasing volumes

both in capital goods and aftermarket

and services. There is no doubt that

we see a renewed interest in investment

from farmers but we have yet to see

a signifi cant upward trend. Across the

“In 2009 we successfully launched a number

of new products to strengthen our offering.

The InService™ campaign is now launched

in many markets improving service

provision to customers.”

15TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL


TETRA LAVAL 2008/2009 / COMMENTS BY THE CEO, TETRA PAK

Group we are focused on securing

our ability to ramp up production and

capacity in line with market recovery.

FOCUS ON BUSINESS EXPANSION

IN 2010

Going forward in 2010 we will continue

to grow our three main areas of busi-

ness expansion; Smart Farming,

Sustainable Dairy Farming and Bio-

security and Animal Health.

Our vision is to deliver fully integrated

and automated systems at farm level,

what we call Smart Farming. Our

strategy is to place dairy farmers in

the centre of fully integrated and auto-

mated farm operations. DeLaval aims

to infl uence and shape the future of

dairy farming today. We want to

accelerate the transition from milking

management to global farm profi tability

management by providing our cus-

tomers with decision tools and auto-

mation technologies that give better

quality milk and increased profi tability.

We recognise and address the need

to balance economic growth with the

needs of society, animal health and

the environment. We see the link be-

tween high technology, sustainability

and profi tability and are constantly

working to bring new ideas to life.

SUSTAINABLE SOLUTIONS AND

ANIMAL HEALTH IN FOCUS

Our goal remains in Sustainable Dairy

Farming to reduce the environmental

footprint of farms, while improving milk

production, farm profi tability and the

well-being of the people and animals

involved. We have continued to

establish the concept throughout the

year and started to fully integrate it

into our product development and

communications, the latter including

presentations at World Ag Expo in

Tulare and the IDF World Dairy Summit

in Berlin. To recognise and support

internal projects we have also pub-

lished an internal Environmental and

Social Report, a non-fi nancial report

on the environmental and social

aspects of our own supply chain.

We continue to develop and promote

solutions that improve resource effi -

ciency on dairy farms. Despite the de-

clining market, solutions focused on

reducing energy and water use, and

thereby operational costs, were well

received in 2009. We also promoted

an automated footbath, a swinging

cow brush upgrade and an organic

hygiene range to allow farmers better

safeguard the health and the produc-

tivity of their herds.

QUALITY

Finally, we take an all-round approach

to quality. For DeLaval this means

quality in design, manufacturing and

full solution delivery. We make quality

excellence a priority from the very fi rst

phase of the development process.

We have continued the work started

in 2008/2009 on the process to identify

and deal with quality issues at an early

stage. We have restructured our engi-

neering resources to deliver a better

and more managed response to

issues, and sharpened the controls

around reporting and follow up. This

helps us ensure the right priorities are

set and solution delivery with best time

and cost possible.

Our customers depend on us to

provide them with products and solu-

tions that live up to expectations. It is

our responsibility to make sure that is

what they get. In this way, we can

strengthen our market leading posi-

tion in the years to come.

Joakim Rosengren

“We take an all round approach to quality.

For DeLaval this means quality in design,

manufacturing and full solution delivery.

We make quality excellence a priority

from the very fi rst phase of the

development process.”

16 TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, DELAVAL


17TETRA LAVAL 2009/2010 / DELAVAL GROUP MANAGEMENT TEAM

DeLaval

Group Management Team

FABIANO AMARO

REGION LATIN AMERICA

MARKKU VAUHKONEN

REGION EAST ASIA

TIM NICOLAÏ

BUSINESS AREA AFTERMARKET

& SERVICES

BENOÎT PASSARD

MARKETING & COMMUNICATIONS

STEFAN LIDSTRÖM

GROUP FINANCE & IS

HENRIK SUNDELL

GROUP GENERAL COUNSEL

MAGNUS BERG

SUPPLY CHAIN MANAGEMENT

LESZEK JAROSZ

REGION NORTH AMERICA

OLOF GERTZ

HUMAN RESOURCES

ANDREW TURNER

BUSINESS AREA CAPITAL GOODS

JOAKIM ROSENGREN

PRESIDENT & CEO

JAN OVE NILSSON

REGION EUROPE, MIDDLE EAST, AFRICA,

AUSTRALIA AND NEW ZEALAND


In 2008 we entered the worst reces-

sion our industry has ever seen. By

mid 2009, the demand for equipment

had fallen by almost 50 per cent across

the whole industry. The drop in demand

was inevitably aggravated by a price

war and led to steep losses for us

and for all our main competitors. But

looking back at the last one and a half

years, I am proud to say that Sidel kept

the strategic course we set in early

2008 with full forward momentum,

despite the exceptionally dire condi-

tions. We were able to do this thanks

to the long-term industrial view held

by the Tetra Laval Board and thanks

to the personal sacrifi ces of many of

our managers and employees.

In fact, in the midst of the global

downturn, we were able to add addi-

tional initiatives to adapt to the market

conditions. One of those new initiatives

WE KEPT TO THE COURSE OF OUR STRATEGY DESPITE THE RECESSION

Comments by the CEO, Sidel

18 TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL


was focused on our installed base,

where we increased our offering to

customers in the form of upgrades,

line optimisation services and

re-engineering. Initially, we positioned

this as an alternative way to help

customers increase productivity during

hard times with limited budgets for

capital spending. But it is increasingly

clear that our customers have a huge

unfulfi lled demand for services regard-

less of the business cycle, and we are

now investing to further differentiate

ourselves as an outstanding service

provider.

UPSWING IN ORDER INTAKE

Today, early 2010, the market is no

longer quite as bleak. During the autumn

and winter of 2009, we saw an up-

swing in China and the rest of Asia,

where the underlying growth in units

of packages sold remained strong

throughout the downturn. More recently,

Latin America has begun to re-emerge.

Another region with strong growth

potential is Eastern Europe, but this

region has yet to show any signs of

recovery. Western Europe and North

America are two saturated markets in

terms of packages consumed, but will

offer good business opportunities in

services and in the trend towards ever

more package variants.

All in all, we believe we have entered

the recovery phase of this cyclical

downturn. The international beverage

packaging market is fundamentally

attractive because it is driven by

strong macro trends that will continue

for a long time, namely urbanisation

and the growth of the middle class in

many developing regions. As the world

develops, demand for the convenience

of packaged beverages will grow

strongly. With our investment in

manu facturing capability in China and

the build up of global competences in

our Market Operations, Sidel is well

positioned to serve this demand.

EARLY GAINS FROM OUR

TRANSFORMATION PROGRAMMES

With our ambitious transformation

programme along the strategic axes of

product innovation, customer proximity,

and operational excellence we put

substance behind every word of our

strategic vision of being the most

“During the autumn and winter of 2009, we

saw an upswing in China and the rest of

Asia, where the underlying growth in units of

packages sold remained strong throughout

the downturn.”

19TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL


innovative, responsive and reliable

partner, providing sustainable solu-

tions for the beverage industry. This

strategic transformation programme

is complemented by programmes

designed to maintain cost discipline

and to con tinuously reduce structure

costs. By driving these programs with

un diminished force through the reces-

sion we are now emerging with much

leaner and more reliable processes.

This is already evident in measures

such as reduced lead times, much

higher OTIF (On Time, In Full) scores,

lower warranty costs, and fewer claims.

As market conditions normalise, it will

also be evident in improved profi tability.

STRONG PRODUCT RANGE

During 2009 we forcefully and

successfully re-entered the market

for Sensitive Products with a strong

range of outstanding products, in-

cluding our unique Predis dry preform

decontamination system and our new

aseptic fi ller, the Sensofi ll Fma.

A particularly important development

has been the decision by many Chinese

customers to choose aseptic PET

technology over less technically de-

manding alternatives such as hot fi ll

or adding preservatives to the bever-

age product. Thanks to these trends

and our strong PET product portfolio,

we tripled our order intake in this

segment despite the recession – which

clearly shows the benefi ts of developing

differentiated products with high tech-

nology content.

In fact, to assure that we fulfi l our

strategic mission of regaining out-

“We forcefully and successfully

re-entered the market for Sensitive Products

with a strong range of outstanding products,

including our unique Predis dry preform

decontamination system and our new

aseptic fi ller, the Sensofi ll Fma.”

20 TETRA LAVAL 2009/2010 / COMMENTS BY THE CEO, SIDEL

standing leadership in PET products

and services we have almost doubled

our R&D spending since 2007.

CHALLENGES STILL AHEAD

In 2010 we will still suffer from the

weak order intake of 2009 and con-

tinued weakness in some regions,

and we will still face big challenges in

sustaining the pace of execution of all

our programmes. But we will also

have the satisfaction of seeing these

efforts beginning to manifest them-

selves in improved fi nancial results.

Mart Tiismann

We deliver differentiated products with a high technology content.


21TETRA LAVAL 2009/2010 / SIDEL GROUP LEADERSHIP TEAM

Sidel

Group Leadership Team

RICCARDO ROSSELLI

FINANCE

FRANCOISE RAOUL-DUVAL

STRATEGY & BUSINESS DEVELOPMENT

ROBERTO BETTINI

HUMAN RESOURCES

SID JOHARI

INDUSTRIAL OPERATIONS

MICHEL PICANDET

LIFE CYCLE MANAGEMENT

ROBERTO SCHIANCHI

MARKET OPERATIONS

MARIA VARSELLONA

LEGAL

MART TIISMANN

PRESIDENT AND CEO


Al Wais started as a small company

producing candy. In order to avoid

costly product losses, the company

invented new products. So Al Wais

started to produce sweeteners and

set up a glucose plant. From corn raw

material Al Wais produced starch and

other products which they sold on the

market. The remaining product of corn

was the peel, which became excellent

high protein feed for cows. Therefore,

Al Wais bought a herd of cows, which

led to another “waste product” – milk.

Al Wais has expanded vertically from

solely starch and glucose production

into cow farming and milk production.

GIVING THE CUSTOMER

FULL CONTROL

DeLaval’s starting point was fully

understanding the needs of Al Wais

and making an offer which gave the

customer full control over their project.

Their specifi c needs were, among

other things, to have cutting edge

technology and a strong customer focus

from DeLaval.

AL WAIS IN SYRIA– COMPLETE SOLUTIONS FROM DELAVAL AND TETRA PAKAl Wais Group in Syria is a joint customer of DeLaval and Tetra Pak. DeLaval has supported Al Wais

to set up the entire cow farming and milk production, and Tetra Pak supplied a complete production

system for the dairy project. Key success factors for both companies have been to fully understand

the needs of the Al Wais Group and to offer complete solutions and total dedication to make these

projects commercially successful for the customer.

22 TETRA LAVAL 2009/2010 / TETRA LAVAL CORPORATE STORY

TETRA LAVAL DONATION IN CHINA Thanks to a 20-million-yuan assistance programme supported by the

Tetra Laval Group, 10,000 children in the earthquake-damaged Sichuan

area of China can continue their high school education. The programme,

in cooperation with the China Children and Teenagers’ Foundation, will

not only help students complete their high school studies, but will also

support those on their way to college and university. This demonstrates

how part of the fund of US$ 30,000,000 launched by the Tetra Laval

Group in May 2008 is being used to help victims of the tragic natural

catastrophes in China and Myanmar.


23TETRA LAVAL 2009/2010 / TETRA LAVAL CORPORATE STORY

“We designed our proposal to meet

their needs. We then extended our

design support, supervised civil con-

structions work, and made sure there

was an accurate and fast installation

process for the milk production facility,”

says Qais Haddadin, Marketing

Manager for DeLaval East Med.

DeLaval supplied a fully automated

parallel parlor and a fully automated

Herringbone parlor. In addition to this,

it also supplied a wide range of farm

assortment like rubber mats, cow

brushes, dairy fans, footbaths, some

of which were introduced for the fi rst

time in the region.

PROBLEM-FREE OPERATION

“Our commitment to the customer

does not stop when the project is

completed. We make sure that our

customer enjoys stable and problem-

free operation. To ensure this, we offer

a preventive maintenance programme

that helps to avoid operational

problems. We also offer a 24 hours

emergency visit program in case of any

sudden failure,” says Qais Haddadin.

PERFORMANCE GUARANTEES

ON PRODUCT LOSSES

The next step for the Al Wais Group

was to set up dairy production. Al Wais

is a producer that knows the value of

keeping operating costs down and

does not accept any unnecessary

product losses. So Tetra Pak made an

offer based on performance guarantees.

“From the early project start, we

decided to use our performance

guarantees as a differentiator in the

sales process. We took a pro-active

approach and emphasised the com-

mercial value from a running cost

perspective. In addition, our knowledge

from setting up production to distribution

and marketing to consumers was a

decisive factor why Tetra Pak won the

contract,” says Bo Liedberg, Processing

Director of Tetra Pak in Jordan.

BIGGEST GREEN FIELD OPERATION

Al Wais in Aleppo is one of Tetra Pak’s

biggest green fi eld projects in the

Middle East. Tetra Pak is supplying a

complete production system from raw

material intake up to fi nished goods

storage. The project includes both

Tetra Pak processing and fi lling equip-

ment. This ten million Euro project is

expected to be in commercial produc-

tion by the summer of 2010. Products

such as milk, juice and yoghurt will be

produced and the capacity is esti-

mated to be about 100 tons per day.

“It is not only a project of great magni-

tude, it is also a deal that brings the

Tetra Lactenso Aseptic solution to the

Middle East for the fi rst time,” says

Bo Liedberg.

Al Wais is an entrepreneurial customer

which involved both DeLaval and

Tetra Pak. It is a unique project, since it

involves competencies of dairy farming,

processing and packaging from both

companies. DeLaval and Tetra Pak have

shared information and have had

mutual meetings and farm and plant

visits with the customer.

osal to meet


ment in 2009 was the strong positive

cash fl ow delivered by the Group and

the overall result of having effectively

assessed our most critical business

issues and having worked to identify

the best way to respond to those

challenges.

EVALUATING THE FUNDING AND

LIQUIDITY STRATEGY

In spite of efforts by many central banks,

a more cautious banking sector is

limiting the supply of credit and becom-

ing more demanding when renegotiating

terms of banking arrangements.

The Group’s fi nancial situation remains

stable and secure despite the volatility

in the fi nancial markets. Long-term

refi nancing of our borrowing facilities two

years ago means that we did not face

any refi nancing or increased borrowing

needs this year and that our fi nancing

costs remained very low. Moreover,

we were able to maintain all fi nancings

QUALITY IN CONTROL AND RISK MANAGEMENT ARE KEYS TO STRONG PERFORMANCE IN GROUP FINANCE AND CONTROL

Comments by the President, Tetra Laval International

Tetra Laval International (TLI) has continued to be a strong partner to the Board and to add value to the

Tetra Laval Group by enhanced fi nance and control support. Among other things TLI has led a programme

to improve global short-term cash and liquidity management processes, introduced a new state-of-the-art

management treasury system and taken measures to reinforce risk management within the Group.

TLI has also reviewed the principles for corporate governance and internal control.

24 TETRA LAVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL

The global business and fi nancial

landscapes are being reshaped today

by a number of transformational events

and trends. Economic pressures,

geopolitical development and regula-

tory demands are all increasing in

response to the fi nancial crisis. As part

of this transformation, the fi nancial

environment in the broad sense is also

being reshaped, resulting in a number

of signifi cant challenges for manage-

ment and boards. Our main achieve-


in place and no Group company suffered

any shortage of liquidity despite the

fi nancial crisis. Nevertheless, TLI has

led a programme to improve global

short-term cash and liquidity manage-

ment processes with a successful

implementation of a cash pooling

structure across Asia. This pooling

structure is to be extended next year

to all major markets. In addition, stan-

dardised reporting was implemented

for all bank accounts globally and

now provides the Group with daily

visibility of global cash.

MANAGING FINANCIAL RISKS

In 2009, TLI Treasury continued to follow

a prudent hedging strategy aimed at

mitigating the Group’s foreign exchange

and interest rate risks, amid ongoing

volatility in fi nancial markets. Addition-

ally, the Treasury team started a new

focus on mitigation of the impact of

commodity prices.

A key achievement in 2009 was the

replacement of a number of legacy

systems in the area of fi nancial man-

agement by a state-of-the-art treasury

management system which went live

in July 2009. The system offers a

number of added functionalities and

visibility over the previous system

and has led to a more structured and

effi cient control and assurance of the

fi nancial fl ows.

To reduce the risks of customer defaults

impacting Tetra Laval, a new Group-

wide Credit Risk policy will come into

effect as of 2010. This will standardise

the assessment and evaluation of

customer credit risk. To support the

policy, a web tool has been develop ed

that generates a credit rating for each

customer to allow comparison of

customer risk and harmonising of fi nan-

cing conditions.

Two major projects dominated the risk

fi nancing area. A risk transfer initiative

aimed at identifying key business and

traditionally non insurable risks and

developing solutions to fi nance or

transfer them. A global insurance

review helped to identify savings and

opportunities to be derived from new

regional or global insurance programmes

and deliver enhanced compliance of

local insurance arrangements.

“Our main achievement in 2009 was the strong

positive cash fl ow delivered by the Group and

the overall result of having effectively assessed

our most critical business issues and having

worked to identify the best way to respond

to those challenges.”

TE

TR

A L

AVA

L IN

TE

RN

AT

ION

AL

25TETRA LAVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL


EFFECTIVELY MANAGING

TODAY’S BUSINESS RISKS

Looking beyond internal controls

around fi nancial reporting to broader

enterprise risks facing the business, we

have increasingly focused on signifi cant

business drivers and strategic enter-

prise risks.

As part of the review of the corporate

governance and internal control systems,

the Group-wide risk management tool

has been reviewed and reissued to

assure full alignment with the Turnbull

guidance and to continue to implement

best practice in risk management

throughout the Group. The new tool

most notably includes a cogent defi ni-

tion of the materiality of risks and an

assessment of the quality of the con-

trols and risk management processes.

The new tool was piloted in 2009 and

will be rolled out to all industry groups

in 2010.

INCREASED TRANSPARENCY

To enable the Board to face the un-

certainty of the markets last year and

manage the risks effectively, TLI has

delivered not only enhanced risk re-

porting but also an increased amount

of forward-looking information for a

better visibility of possible future

scenarios. TLI has in particular aug-

mented its analysis of receivables and

supplier risk, and has extended the

budgeting planning requirements for

the Group to focus attention on phas-

ing and increased accuracy of profi t

and cash forecasting. Moreover, TLI

has successfully strengthened the

capital expenditure approval process

for the Group and deepened the analysis

of operational costs and operational

capital to allow a better grip on the

cash fl ow and liquidity situations.

ENHANCING CORPORATE

GOVERNANCE

Since 2004, Tetra Laval’s corporate

governance system has followed the

Combined Code of the United King-

dom and the Turnbull guidance on

internal control. A comprehensive

compliance system has been imple-

mented over the last four years. The

choice of the Combined Code as the

appropriate corporate governance

system for the Group has been upheld.

2009 saw a review of this system and

the internal control structure to ensure

complete alignment and compliance

with the Turnbull guidance. But also

with a view to introducing new stan-

dards for documenting internal control

systems throughout the Group, ensuring

that they address most local regulatory

requirements and that the corporate

governance framework including the

internal control systems supports the

external audit process.

OUTLOOK

Looking forward to 2010, TLI’s dedi-

cated and professional staff will focus

on three main initiatives to continue to

deliver high quality in the area of fi nance

and control. Firstly, a deeper integra-

tion of corporate governance, internal

control and risk management to afford

the Board even better decision support

and increased monitoring of compli-

ance with policy. Secondly, on the tax

planning side, the huge changes in

the fi scal environment will demand

much innovation in managing the tax

affairs of the Tetra Laval Group over

the coming years. Finally, to support

the Board, the recently launched

return on capital enhancement pro-

gramme will aim to drive profi tability

and balance sheet effi ciency.

Martyn Zedgitt

26 TETRA LAVAL 2009/2010 / COMMENTS BY THE PRESIDENT, TETRA LAVAL INTERNATIONAL


27TETRA LAVAL 2009/2010 / TETRA LAVAL INTERNATIONAL MANAGEMENT

Tetra Laval International

Management

MARC HÄFLIGER

OPERATIONS & ADMINISTRATION

ROBERT NORRIS

GROUP FINANCIAL PLANNING

& REPORTING

IAIN MACLEAN

LEGAL & TAX

EMILIO RUIZ-BERDEJO

FINANCE

JÖRN RAUSING

MERGERS & ACQUISITIONS

ROBERT SWAN

AUDIT

MARTYN ZEDGITT

PRESIDENT

TE

TR

A L

AVA

L IN

TE

RN

AT

ION

AL


28 TETRA LAVAL 2009/2010 / TETRA LAVAL IN THE WORLD

MARKETS COVERED

MARKETS COVERED

MARKETS COVERED

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

SALES DEVELOPMENT 2004 –2009

2004

0

400

800

200

600

1,000

1,200

20062005 2007 2008 2009

DELAVAL

TETRA PAK

SIDEL

TETRA LAVAL IN THE WORLD

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

20,000

60,000

100,000

140,000

160,000

Mio packs

0

40,000

80,000

120,000

CARTON PACKAGES SOLD 1999 – 2009

145,030 mio packages sold 2009

PET BLOW-MOULDING MACHINES SALES

FROM 1999 – 2009

Total 5,000 units sold up till 2009

0

150

50

200

300

100

250

350

400


TETRA PAKCorporate presentation2009/2010


TETRA PAK IN TWO MINUTES

21,672

8,955 NET SALES 2009

MILLION EUROS

CORE VALUESCUSTOMER FOCUS & LONG-TERM VIEWWe ensure we add value and inspire ourcustomers because we recognise that they come to us by choice. We dare to lead witha focus beyond tomorrow and take oppor-tunities to learn and grow.

QUALITY & INNOVATIONWe do not compromise on quality. We relent-lessly drive for better, fi t-for-purpose solutions and breakthrough innovations.

FREEDOM & RESPONSIBILITYWe have the freedom to take initiative and act decisively in the best interests of Tetra Pak and our customers. We take responsibility for our actions and contribute to the communities in which we operate.

PARTNERSHIP & FUNWe respect and rely on one another and all our stakeholders for exceptional results.We enjoy working together and celebrating our achievements.

TETRA PAK IN TWO MINUTES

NUMBER OF EMPLOYEES 2010PRODUCTS SOLD IN TETRA PAK PACKAGES IN 2009

OF 70,674 MILLION LITRES OF PRODUCTS

VISION

We commit to making food safe and available, everywhere

Liquid dairy products 63.2%

Juice & nectars 18.5%

Still drinks 8.3%

Wine & spirits 2.8% Other 7.2%

PRODUCTSAt Tetra Pak we are specialists in complete solutions for the processing, packaging and distribution of food products. Our solutions are specifi cally designed to be as economical with resources as possible. Dairy products, juices and nectars, ice cream, cheese, dry foods, fruits, vegetables and pet food are examples of products that can be processed or packaged in Tetra Pak processing and packaging lines. We focus on keeping the consumption of all raw materials and energy to a minimum during both the manufacturing process and distribution. The processing solutions are also designed to treat the products gently.

Our products are divided intoseveral categories:• Packages• Processing equipment• Filling machines• Distribution equipment• Service products

R&DOur customers need faster, better and cheaper developments toreduce their operational costs and to increase performance in orderto remain competitive. We invest in technology and new products inresponse to customer, consumer and market dynamics.

OUR STRATEGIC PRIORITIESFaster, better, cheaper is our approach to delivering on the three strategic priorities:

• Focus on, and grow the core• Emphasise cost-driven innovation• Drive operational performance

30


FILLING MACHINES INSTALLED

– JANUARY 2010

GREATER CHINA 1,390SOUTH EUROPE 1,229CENTRAL & SOUTH AMERICA 1,162GREATER MIDDLE EAST 1,035CENTRAL EUROPE 825EAST EUROPE & CENTRAL ASIA 742NORTHEAST ASIA & OCEANIA 686SOUTH & SOUTHEAST ASIA 656NORTH AMERICA 540NORTH EUROPE 490SUB-SAHARAN AFRICA 291SUPPLY CHAIN OPERATION 1NOT ASSIGNED 1TOTAL 9,048

MARKETS & CUSTOMERSTetra Pak operates with 21,672 employees in over 170 countries around the globe. Our customers come from different parts of the food industry, such as the dairy, cheese, ice cream, beverage and pre-pared food sectors.

OUR BRANDIt is our goal to create a well-known and respec ted brand name – Tetra Pak – and to improve theimage / perception of our carton packages as being the most preferred and environmentally sound ones, thus, achieving sustain able profi table growth.

We take an active role in shaping a better future, building on our four Brand Pillars – Food Safety,

Customer, Environment and Well-Being.Our motto, PROTECTS WHAT’S GOOD,

refl ects the philosophy upon which we conduct our business. It provides aconsistent worldwide positioning of Tetra Pak across the value chain support-ing our Vision, Mission and Core Values.

part in our business strategy and our commitment to dairy customers around the world to make food safe and available every where. We expect to see a further expansion of these programmes in the coming years.

GLOBAL COMPACTWe are a member of UN Global com-pact, which brings together compa-nies, UN agencies, labour and civil society to support ten principles in the areas of human rights, labour, the environment and anti-corruption. We also cooperate with NGOs like WWF on forestry and climate change issues.

ENVIRONMENTAL SUSTAINABILITYWe are committed to running our business in an environmentally sound and sustainable way. We set goals for continuous improvement in our develop ment, sourcing, manufacturing, and transportation activities. As part of that commitment, we take a long-term and life cycle view, continually improving environmental per-formance, communi cating openly with our stake-holders and reporting regularly on our perfor-mance.

FOOD FOR DEVELOPMENTFor more than 45 years, we have helped customers, governments, inter-national and community-based orga-nisations to provide milk to children around the world.

On 30 September 2009, World School Milk Day, we announced our support for two additional school milk programmes – in Ecuador and Morocco – as well as the expan sion of existing programmes in Romania, Thailand, Mexico and Iran.

Through the Food for Develop-ment Offi ce (FfDO) we work in close partnership with governments,development agencies, non-govern-mental organisations (NGO), local dairies and farmers to deliver almost six billion packages of milk to 45million children in schools in over 50 countries around the world. School feeding programmes can have a considerable impact on the local community and economy. Not only do they improve the health and learning capabilities of children, they often act as a catalyst for agricultural and economic development.

In 2009, following the decentrali-sation of the school milk feeding programme in Iran, Tetra Pak strengthened its relationship with the School Feeding Committee and now partners with the UN’s World Food Programme on a number of school educational activities in Tehran and across the country.

School milk programmes play a vital

ENVIRONMENT AND CSROur Corporate Social Responsibility cornerstones are:

31TETRA PAK IN TWO MINUTES


32 TETRA PAK PEOPLE

PEOPLEDELIVERING EVERYDAY EXCELLENCE

EVERYDAY EXCELLENCE PEOPLE

Quality dashboard toimprove performance

In good times customers focus on building capacity in fast growing mar-kets. However, the crisis in 2008 and 2009 has re-emphasised the need to optimise productivity and quality. The cost of non-performance is one of the most important issues to handle for any customer, making it equally im-portant for Tetra Pak to put quality on the daily agenda.

To do this, Tetra Pak has developed a Quality Dashboard focusing on metrics from a customer perspective. “We are driving to improve issue resolution performance, focusing on problem collection and prioritisation, then rapid solution development and implemen-tation. We are also looking at mecha-nisms to improve how we build on lessons learned, so that as we solve problems we learn deeply from the experience, grow and be an increasingly dependable partner. Other important initiatives address spare parts quality and changing the way we set quality targets for new development projects”, says Phil Maguire, Vice President Quality Programme.

BECOMING UNDISPUTED LEADERHe is responsible for the cross-company initiative to raise quality and customer satisfaction in every cluster. The goal

is to become the undisputed quality leader of the industry. “Our current per-formance varies. We are making steady progress on the start-up quality of new equipment and driving downdefects, but need to accelerate. With a large set of customer needs, we are working to prioritise efforts. This requires a cohesive company-wide effort and an integrated strategy. Quality needs to be part of our DNA. It needs to per-meate everything we do. It needs all of us to play our part”.

CONSISTENCY IN FOCUSThis cohesive effort from the entireorganisation now means that opera-tional groups, process owners and platform teams are adopting the quality dashboard to ensure consistency and a uniform approach. The Quality Dashboard is all about the customer. Hence, much of the work is being done in close cooperation with cus-tomers in many different markets.

“What will really matter is how we shall collaborate across organisations within Tetra Pak in order to make a difference for our customers. We can measure different activities internally, we can measure suppliers’ quality, but the ultimate test is always from a customer perspective”, concludes Phil Maguire.

“QUALITY NEEDS TO BE PART OF OUR DNA. IT NEEDS TO PERMEATE EVERYTHING WE DO. IT NEEDS ALL

OF US TO PLAY OUR PART.”


33TETRA PAK PEOPLE

Every year, Tetra Pak acknowledges teams or individuals who have made a real difference to the business and to customers. The Excellence Awards recognise people who contribute with excellent performance refl ecting the company strategy, core values and brand.

In 2009, Carol Zimmerer and Bozena Malmgren were two of the co-workersreceiving the award. Carol Zimmerer, Supply Chain Integration Director in Rayong, Thailand, was recognised with the Leadership Excellence Award for living the core values and representing everything about performance, thereby allowing many others in her team to step up to the plate. Bozena Malmgren, Technologist in Tetra Pak Dairy & Beverage Systems in Lund, Sweden, was awarded the Customer Excellence Award for helping customers to introduce new successful products by generously sharing her unique competence and taking pride in understanding the customer’s real problem.

Excellence Awards foroutstanding performance

to benefi t customers Global initiative

In 2009 all Tetra Pak employees partici-pated in LiVE Tetra Pak, an internal engagement programme tailored to increase the understanding of Tetra Pak’s challenges and how the company’s core values, brand promise and strate-gic direction help Tetra Pak to achieve its vision. Held in more than 80 loca-tions in 53 countries and more than20 languages, LiVE Tetra Pak takes a multi-channel approach where videos, interviews, Q&A sessions and other interactive activities fi ll four hours of

Carol Zimmerer

Bozena Malmgren

intense training and interaction.LiVE Tetra Pak gave each and every

employee the opportunity to better understand how he or she can contri-bute towards customer satisfaction and the company’s future growth.

“Every day, employees’ actionsinfl uence stakeholders’ perception of what Tetra Pak stands for. This initiative helps us speak with one voice andappear with one face in the market”, says Dennis Jönsson, President and CEO of Tetra Pak.


34 TETRA PAK 2009/2010 IN BRIEF

Sady Pridonia, a leading company in fruit production and pack-aging in Russia chose the innovative Tetra Gemina Aseptic tore-launch its leading juice brand. Tetra Gemina Aseptic allowed them to differentiate their product on shelf. “Along with its original shape, it has good functionality – it pours really well until the last drop. The smaller cross-section of the package also allows us to utilise retail space much more optimally”, says Irina Samokhina, Marketing Director, Sady Pridonia.

PROGRESS ON OUR CLIMATE GOAL

TETRA PAK

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TETRA GEMINA ASEPTIC GIVES SADY PRIDONIA A SUCCESSFUL “FACE LIFT”

2009/2010 IN BRIEF

As a partner to the WWF Climate Savers programme we actively work on our commitment to achieving our fi ve-year carbon reduction goals. Our goal is to reduce carbon emissions 10 per centbetween 2005 and 2010 in absolute terms. We are in a good position to meet the challenging climate goal by 2010 if we continue to deliver improvement as

done to date. Our 2009 energy use was a similar level as in 2002, despite a 33 per cent increase in packaging production over the same period. Mitigating climate change is a global responsibility and our commitment to drive the business in an environmentally sound way is an integral part of our company culture.


35TETRA PAK 2009/2010 IN BRIEF

On 29 June 2009, we announced the global launch of Tetra Brik Edge, the packaging solution for chilled liquid dairy products designed forconsumers of all ages. The Tetra Brik Edge package is easy to use– whether you are young or old – so much so that it is endorsed by the Swedish Rheumatism Association, which also chose it as their ‘Package of the Year’. The 34 mm diameter SimplyTwist screw cap is designed to be easy to open, pour and reseal for everyone. As well as adding to the package’s visual appeal, the sloping top panel provides optimal pouring and its angulation makes it extremely easy for the hand to grasp the cap. Tetra Brik Edge is an excellent vehicle for branding. The sloping top also provides extra space foradditional messages.

GLOBAL LAUNCH OF TETRA BRIK EDGE

Our customers require solutions, not just components, so we build effi ciency, produc tivity and sustainability into all of our processing steps, enabling cheese manufacturers all over the world to get the most out of their plant. Our solution for semi-hard cheese – the Tetra Tebel Casomatic SC 7 module – is in line with this vision. Originally developed in the mid-1970s, Tetra Tebel Casomatic has been setting the standard in industrial

cheese-making ever since. One driving force in the development of the new version was to achieve even greater effi ciency through longer production runs. Another was to achieve better cheese and whey quality, with high accuracy in terms of moisture content, weight and form. The result isa solution that enables our customersto deliver quality with effi ciency– a truly sustainable businessproposition.

TETRA TEBEL CASOMATIC


On 30 September 2009, World School Milk Day, weannounced our support of two additional school milkprogrammes – in Ecuador and Morocco – as well as the expansion of existing programmes in Romania, Thailand, Mexico and Iran. Through the Food for DevelopmentOffi ce (FfDO) we work in close partnership with govern-ments, development agencies, NGOs, local dairies and farmers to deliver almost six billion packages of milk to45 million children in schools in over 50 countries around the world. School feeding programmes can have a con-siderable impact on the local community and economy. Not only do they improve the health and learning capabilities of children, they often act as a catalyst for agricultural and economic development.

INAUGURATION OF HOHHOT PLANT IN CHINAOn 8 July 2009, we inaugurated our packaging material plant in Hohhot, North-ern China, which operates completely on power from renewable resources – of-ten referred to as “green electricity”. The new plant in Hohhot is one of our most advanced manufacturing facilities for aseptic carton packages worldwide. It marks a signifi cant milestone in our increasing presence in China with a total capacity of approximately 50 billion packs a year in the four Chinese plants. The Hohhot facility is the fi rst manufacturing plant in Inner Mongolia, and among the fi rst in China, to exclusively use green electricity. The plant consumes an esti-mated 20 million kWh of green power annually, which corresponds to an esti-mated saving of 16,000 tonnes of CO2 a year. The green electricity supplied to Tetra Pak comes primarily from wind power.

2009/2010 IN BRIEF

NEWSCHOOL MILKPROGRAMMES

36 TETRA PAK 2009/2010 IN BRIEF


NEW GENERATION OFTETRA THERM ASEPTIC DRINKCOMBINES ECONOMY WITH ECOLOGYThe next generation of Tetra Therm Aseptic Drink pasteurizers enables beverage pro-ducers to cut water consumption by up to 80 per cent, energy by up to 30 per cent and product losses also by up to 30 per cent, compared to other solutions on the market. This gives higher operational effi ciency while lowering environmental impact.

The new pasteurizers – which are suita-ble for juices and nectars, still drinks, tea

drinks and enhanced water, including new “wellness” drinks with high value-added sensitive ingredients – include a range of other advanced automationfeatures. For example, they automatically identify deviations in process parame-ters, enabling immediate operator action to maintain optimised operation. And they provide automatic notifi cation of every maintenance requirement – help-ing all but eliminate costly, unplanned

production stops. The new pasteurizer is also compatible with the Tetra PlantMaster control system, which enables additional intelligence applications such as full traceability, unit history, batch control and review of all previous actions. These are important aspects that cut the risk of human error, contribute to food safety and enable exceptional performance.

The world’s fi rst hermetic direct driven dairy separator –Tetra Centri AirTight Eco – cuts energy consumption up to 35 per cent compared to conven-tional paring disc separators. This new generation separator is a further development in our proven range of separators us-ing a number of breakthrough innovations to deliver higher operational effi ciency and lower environmental impact than ever before.

CLIMATE AWARDTetra Pak received the 2010 Klimatpris (Climate Award) from the Swedish Forest Industry Federation. The award was delivered byH.R.H. Prince Carl Philip, to Finn Rausing ata ceremony in Stockholm on April 20, 2010.

A summary of the reason behind the award reads as follows:“It is well-known that packages from Tetra Pak have revolutionised the distribution of food around the globe. It is not as well-known that Tetra Pak’s innovations create packages with lower environmental and climate impact compared to packages made from othermaterials. Tetra Pak also takes a responsibility for the forests the raw material originates from. Few organisations in the world have the same drive and reach to be able to havean impact to support the work for a better environment and reduced climate impact.”

LAUNCH OFTETRA CENTRI AIRTIGHT ECO

37TETRA PAK 2009/2010 IN BRIEF


PRODUCTSDELIVERING EVERYDAY EXCELLENCE

The main consumer benefi ts of the new Tetra Top with One Step Opening can be summarised in three words; convenience, convenience and convenience. It is quick to open and easy to reseal, making it the perfect packaging choice for on-the-go products and for home con-sumption of chilled dairy and juice products. The One Step Opening provides superior functionality as it is easy to pour and drink from and has a tamper ring that shows if the package has been opened. The seal is tight also when the package is stored fl at, an important attri-bute for products such as cream where only a part of the contents is used at a time.

From a customer perspective, the sturdy package reduces distribution costs. The inter-nal capping unit in the fi lling equipment re-quires less fl oor space and cuts the cost of conversion. But the main benefi t is of course a

package that stands out on the shelf, having all the marketing and production benefi ts of the Tetra Top range. In Mexico, leading dairy producer Alpura has converted its production from traditional gable top packages into Tetra Top with thenew One Step Opening.

“Personally, I am in love with the package. The new brand image really stands out at the points of sale. I am totally sure we have made the right decision to fully replace our gable top system with the new Tetra Top One Step Opening system, because we are offering the best quality milk in the best modern convenience package at the same price”, says Felipe Rios Castelazo, Market-ing Director at Alpura, point-ing out a 23 per cent sales increase in the fi rst six months after the launch.

One step to success

New unit forhigh-viscosity foods

The well-known Tetra Therm Aseptic Visco range for continuous UHT food processing has a new member. The addition of a high - pressure unit enables continuous, effi cient, high-capacity UHT treatment even for high-viscosity soups and sauces, tomato pastes, custard desserts, fruit preparations, vegetable purees and baby food products. A good example of our Tetra Victenso production solutions for prepared food, the new Tetra Therm Aseptic Visco unitreduces product losses by up to 50 per cent compared to conventional equipment.

38 TETRA PAK PRODUCTS


39TETRA PAK PRODUCTS

In 2008, D.P.O., Tetra Pak’s fi rst and largest UHT milk customer in Thailand, decided to upgrade the equipment in its three main dairies in order to fulfi l its expansion strategy. This provided an excellent opportunity for Tetra Pak to offer the customer the Tetra Pak A3/CompactFlex iLine, being the most advanced technological solution avail-able on the market for portion packs.

D.P.O. (Dairy Farming Promotion Organisation) is a state owned enter-prise which became the fi rst Tetra Pak Thailand customer in 1972. It currently has four UHT factories located in dif-ferent regions of Thailand which pro-duce UHT milk under its iconic brand, “Thai-Danish”. White and fl avoured UHT milk have been D.P.O.’s growth engine since it started business 37 years ago.

CONVERSION PROJECT TOENSURE EXPANSIONIn late 2007, much of the equipment in use was old and the utilisation capac-ity was reaching its limits. D.P.O.’s growth strategy demanded an upgrade and expansion of the installed capacity at three of its UHT milk plants: at Muaklek, Pranburi and Khonkaen.

The project led, among other things, to the deployment at D.P.O. of aTetra Pak A3/CompactFlex iLine for Tetra Brik Aseptic 200 B and Tetra Brik Aseptic 250 B packages in August 2009.

“The Tetra Pak A3/CompactFlex iLine turned out to be the perfect product

for this D.P.O. dairy. The customer needed equipment with high capacity and fl exibility, yet a compact solution. Working closely with one of our value business partners such as D.P.O., giving them the opportunity to interact with the solutions of the future, is of great importance for us”, says ThitipolArtsanchorn, Commercial Managerat Tetra Pak Thailand.

INCREASED LINE AUTOMATIONThe main reason behind the choice was the better value proposition for D.P.O. of the Tetra Pak A3/CompactFlex iLine in terms of cost, more advanced tech-nology and higher capacity, as well as low energy and utility consumption of the equipment.

“The increased line automation and the better user friendliness of the equipment have also contributed to our decision to go for the Tetra Pak A3/CompactFlex iLine solution, as well as the fact that Tetra Pak, as an integrated supplier, is able to manage the whole project from layout to installa-tion and start-up”, says Mr. Suwarat Hongyantarachai, Assistant Director of Factory Operations at D.P.O.

In parallel with the deployment of the Tetra Pak A3/CompactFlex iLine, D.P.O. also replaced outdated equip-ment with three Tetra Pak A3/Flex fi lling machines at the Khonkaen plant. Thereby increasing capacity by 27 per cent and saving 28 per cent with reduced opera-tional costs.

Quality upgrades as partof growth strategy

By updating and expanding the installed capacity, leading dairy D.P.O. in Thailand can follow its ambitious growth strategy.Tetra Pak has assisted with equipment and automation solutions.

Tetra Alfastachievesspot-onprecisionTetra Alfast performs automatic direct in-line standardisation of milk and cream with accurate control of fat, protein, solids non-fat and total solids. It is designed for effi cient, fl exible processing of formu-lated dairy products and cheese milk. Combined with the new SpotOn software for instant in-line ingredient compensa-tion, Tetra Alfast offers unparalleledrepeatability and precision to give uniform product quality and improved produc-tion economy over the long term.

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PRODUCTS

40

DELIVERING EVERYDAY EXCELLENCE

TETRA PAK PRODUCTS

“Food safety means being in control at all times, so it is an integrated part of our production concepts and the way we think about food processing and packaging. Ultimately, it is about making it possible for our customers to be in total control of their produc-tion”, says Stefan Åkesson, Manager, Food Safety & Equipment Safety at Tetra Pak Processing Systems.

Food safety begins on the drawing board, and the foundation is hygiene.This means assuring that everything that will ever come in contact with food – from components right down to connections, welds etc. – is of

Consumers all over the world are increasingly concerned about health and food safety. Food alarms have made people pay more attention to what they eat and drink, where it comes from and how it is produced. Every threat to consumer health is a threat to the food processing business. How does Tetra Pak meet this challenge?

approved material. It also meansassuring that service media (e.g. water, steam and air) supplies are designed with proper hygienic zoning barriers, and that the automation level enables track-ing throughout the production process.

Tetra Pak employs hygienic riskassessment of machines and process lines during the development andengineering phases. This method analyses and evaluates hazards in order to be able to reduce or eliminatehygienic risks, such as microbiological causes, chemical causes and foreign materials from machinery or other sources.

Hygiene is the foundation of food safety

LEVERAGING THE BENEFITSManaging food safety issues comes down to knowledge about food tech-nology and about food processing.To secure Tetra Pak’s food safety focus, a core team with three clear areas of responsibility has been set up:

• to monitor new regulatory require-ments related to food safety

• to identify issues of signifi cance to Tetra Pak’s customers

• to inform about and coordinate food safety activities

To make it easier for our engineers to comply with increasingly stringent standards, Tetra Pak participates ininternational standardisation work. We have developed the Tetra Pak Corpo-rate Standard, a tool to coordinate and implement international hygiene standards.

“Continuous development projects give us both deeper and broader know-ledge about food safety issues, ranging all the way from food processing, through fi lling and packaging. This is unrivalled in the food industry. We offer our customers unequalled knowledge, our experience and our solutions, which enables them to protect their business”, concludes Stefan Åkesson.


PARTNERSHIP

41


TETRA PAK PARTNERSHIP

Better claims handlingincreases customersatisfactionTetra Pak Germany has made substantial cuts inthe time needed for handling customer claims.The method will now be rolled out globally, toincrease customer satisfaction.

Tetra Pak Germany has made substantial cuts in the time needed for handling customer claims. The method will now be rolled out globally, to increasecustomer satisfaction.

Every customer expects a swift hand ling of a claim, whether it is a broken car engine or a bad apple. The food packaging industry is noexception. Although technicallyadvanced and con-tinously maintenanced, almost any packaging line will sooner or later have a technical issue leading to the customer posting a claim.

At Tetra Pak in Germany, a new way of handling these claims have cut lead times for settle-ments substantially. By moving theinternal decision making to the front end, Tetra Pak has become more agile and customer oriented.

“Before, we spent unneccessary time evaluating what part of Tetra Pak was responsible for the claim. But the customers are not interested in ourinternal structure. They want a swift and decisive handling of their claims

and that is where we are today”, saysRodolfo Simon, Issue ResolutionDirector at Tetra Pak.

Although a rather small initiative, this claims project shows Tetra Paks comittment to turn every stone to fi nd more customer friendly processes and solutions. The initiative will now be rolled out globally, and each market will have the necessary competence

to judge the problems and come back to the customer with compensa-tion within days. By routinely accepting claims below € 5,000, more than 95 per cent of the claims can be settledinstantly. This has taken a massive workload off the organisation, but more importantly increased customer satisfaction.

“If you have a BMW and the wiper breaks you expect the local dealer to

replace it without calling Germany. This initiative follows the same example. The decisions must be made quickly and close to the customer. We can then discuss internally who is respon-sible”, says Rodolfo Simon.

But handling the claim is one thing – fi nding the source of the problem is the real issue. Cross functional teams at cluster level will make weekly reviews

of the claims, to fi nd patterns and identify possible issues.

“We also have a large number of trained system spe-cialists who reportissues back to the

central functions. In that way we make sure problems are

identifi ed. In the short run, we have to settle the claim. But more importantly, we have to identify the issue and solve it right away”, says Rodolfo Simon.

”The customers are not interested inour internal structure. They want a swiftand decisive handling of their claims and

that is where we are today.”


When Aslanoba Foods decided to jump into the tough Turkish JNSD market, the Start-up Solution from Tetra Pak proved a valuable tool for a smooth start to operations.

Smooth start-up in TurkeyPARTNERSHIP


Well-known for its Erikli brand of mineral water, Aslanoba Foods has been a key player on the Turkish bottled water market since the mid-sixties. With fruit juice consumption levels increasing rapidly in the country, the company’s owner, Hasan Aslanoba, decided to enter the JNSD market with their own brand of juices and nectars.

He chose to work with Tetra Pak in order to secure the success of the new venture. Besides choosing the Tetra Gemina Aseptic 1000 Square package as his main differentiator, he also wanted to create an exemplary green fi eld project which would deliver a production base with competitive operational cost levels and top quality.

QUALITY AS A TOP PRIORITYThe Key Account team in Tetra Pak Turkey decided to offer a tailored Start-up Solution to the customer as the best way to address customer needs. The fi rst thing to ensure was that the factory staff had the compe-tence required to operate and main-tain the equipment. Given their im-

the process from raw material to the fi nished package.

Starting an operation from scratch, Aslanoba Foods wanted to make sure they had a smart way of handling their parts inventory as well. Therefore Parts Control Basic was implemented, which included installation of a web-based parts inventory management system and recommendations on spare parts min / max levels for the customer’s equipment.

With Performance Analysis as the last component, Aslanoba Foods was able to establish Key PerformanceIndicators for their plant performance that would be monitored and analysed continuously. Measuring performance on a regular basis would enable the customer to get a good understanding of the operation and the optimisation action required.

POSITIVE CONSUMER RESPONSEAll the endeavours in the quality area paid off – Aslanoba Foods delivered on its promise of premium quality products which was validated by the very positive consumer response.

“We invested in a big factory, needed to set up processes, train staff, it was a huge task, this being a new area of business for our group. However, with the Start-up Solution we had an exceptional market entry – good quality levels, smoothly running operations and competent and moti-vated staff to make all that possible”, says Hasan Aslanoba.

With premium quality products packed in a modern and functional package, and backed up by a reliable operation, Aslanoba Foods has every right to be optimistic about the future.

portant role, operators were trained and certifi ed by Tetra Pak instructors to make sure they knew how to operate the machines in the safest and most effi cient way.

With a brand promise of premium, healthy and natural options for con-sumers, product quality was a toppriority for Aslanoba Foods. Tetra Pak Quality Assurance Management spe-cialists therefore reviewed the entire customer operation and recommended the appropriate quality routines and procedures based on Tetra Pak best practices.

“Ensuring excellent product quality right from the start is paramount. With Start-up Quality as part of Tetra Pak’s Start-up Solution, we got guidance from the specialists right from the start”, says Aydin Kontik, Technical Director of Aslanoba Foods.

GOOD UNDERSTANDING OFOPERATIONSAslanoba Foods also made use ofanother Tetra Pak service product – Quality Performance Analysis. Using this, a customer gets a clear picture of where they stand in terms of product quality and the improvements needed. Last but not least, Quality Assurance Training was conducted which covered the quality of the packed product through all phases of

42 TETRA PAK PARTNERSHIP


Tetra Pak essentially created the asep-tic packaging market in the world’s most populous country with the sale of its fi rst fi lling line to China in 1979. Thirty years on, Tetra Pak China has managed to keep its leading position in the face of ever-growing competition.

The Chinese market is becoming one of the most technically advanced in the world. Customers expect high-end solutions with a focus on quality after the melamine scandal in 2008.

A trend as the Chinese market matures is that customers – most of whom are local – are becoming more sophisti-cated and more demanding.

“We have to raise our standards and our performance because the compe-tition is doing so. When you are in the position we have been in for a long time, we look at things in a different way. What the customer is telling us is that we have to look at it from their angle as well”, says Hudson Lees, Managing Director of Tetra Pak China.

Quality is the main concern in the country after the scandal in 2008, where milk tainted with melamine caused a major health scare as a result of a num-ber of infant fatalities and hospitalised many more. The scandal dealt a massive blow to Chinese consumers’ trust in milk and other dairy products.

“The positive side, if there is one, is that the events educated the consumer and the government on the importance of food safety. It sped up the regula-tion of the supply chain, from farm to production and packaging. And today,

the industry recognises the importance of working with a reputable supplier that is conscious of quality and safety – like Tetra Pak”, says Hudson Lee.

The company employs nearly 1,600 people at nine locations around the country and has an installed base of over 1,250 fi lling machines. Every cus-tomer relationship includes questions on quality and sustainability.

DID YOU KNOW…?The name Tetra Pak is translated into two Chinese characters as “li le”. Literally, “li” can mean benefi t, interest, wellness or profi t, while “le” means “happiness”. At the same time, the combination of the two words has another meaning which comes from Buddhism, and it means: being good to the surrounding people, helping them and bringing good to society.

Qualitya burning issue in China

43TETRA PAK PARTNERSHIP


44

INNOVATIONDELIVERING EVERYDAY EXCELLENCE

By developing common automation software for processing and packaging, Tetra Pak will alter the way a plant is run. It is like havinga single remote control at home.

Integration improvesperformance and traceability

The development programme for in-tegrating packaging solutions into the well-known automation platform, Tetra PlantMaster, is Tetra Pak’s solu-tion for meeting the increasing need from customers for integrated pro-cessing and packaging solutions. Tetra PlantMaster is an automation platform based on international stan-dards for production.

“The demands for food safety traceability, production planning and performance for entire plants drive the development. In addition, fi erce competition in the food-processing

industry is speeding up the need to reduce costs”, says Anders Andrén, Product Manager.

The development programme was launched in the second half of 2008 and the fi rst prototype will be available by the end of 2010.

“We have often sold and delivered modules and lines from Processing and Packaging separately. The goal of this programme is to extend our current offerings and develop a fully integrated solution with a common software plat-form. Customers will be able to enjoy simplifi ed operations and decision-

making. They will only need a single control room where all processing and packaging activities can be managed and monitored. It is like having a single remote control for your TV, DVDrecorder and stereo at home”, says Programme Manager Jarmo Vastapuu, who is managing the developmentof the integrated platform.

TO COVER THE ENTIRE PLANIntegration means a number of things, such as making old and new equip-ment work together, including third-party machinery, in the customer’s

TETRA PAK INNOVATION


45

total operations. Integration alsoinvolves the information fl ow.

“Integration between processing and packaging lies not in any particu-lar hardware, but in the way we can enable our customer to run a plant. The different features we are looking at in the development programme have exactly that scope: How can we make sure that all our business offer-ings to our customer’s best serve the total operations of their plants?” asks Jarmo Vastapuu.

All this becomes a reality, extending functionalities such as Quality Assurance,

traceability and performance analysis to cover the entire plant. Integrated customer solutions require coopera-tion, and the development programme is a cross Tetra Pak joint venture be-tween Development & Engineering, Processing Systems and Technical Service.

CONSOLIDATES AUTOMATION PRODUCTSThe result in the years to come will become part of Tetra PlantMaster branded automation platform. The development programme will consoli-

date and align the current auto mation products, Tetra PlantMaster, PLMS (Packaging Line Monitoring System) Centre and WebMon from Technical Service.

“We need to align our various com-petencies while we build capabilities locally and centrally. There is really some hard work to do to allocate our resources in the right places. There might also be boundaries to overcome when activities that have lived their separate lives for a long time have to integrate. Yet the end result in this case will surely benefi t many customers all over the world”, says Anders Andrén.

TETRA PAK INNOVATION


Tetra Gemina wins Excellence AwardEvery year, Tetra Pak internally awards a number of individuals and teams that have made an outstanding contribution. In 2009, the Innovation Excellence Awards was given to the team behind the new Tetra Gemina Aseptic package. The citation reads: ”Thisinnovation is built on our strategic intent of cost driven innovation. It has primarilyenhanced an existing technology into a clever application. The market acceptance is already proven and it has good commercial value. We are now building a packagefamily that fi ts our strategy of differentiation at an affordable cost. The Tetra Gemina Aseptic package is the world’s fi rst roll-fed gable top package with full aseptic performance for juice and milk. It combines the convenience, safety and nutritional benefi ts of aseptic packaging with exceptional functionality and a great image of freshness.”

INNOVATIONDELIVERING EVERYDAY EXCELLENCE

By cutting lead times and increasing quality performance, Tetra Pak aims to speed up the creation of new products. The foundation is a totally revamped innovation process, focusing on cross-functionality.

New process will halvetime and double quality

Mike Nelson and his team have an ambitious target. By introducing a new process for the way Tetra Pak develops its products, the Product Creation Re-design (PCR) team has set out to double the quality performance of new prod-ucts and solutions, while at the same time halving the time to market.

“We are taking action to close the gap between customer expectations on quality and the quality we are de-livering. Our customers also compare our lead times with those of other indu stries and do not understand why it should take so long to develop a new packaging solution”, says Mike Nelson, Director for Product Creation.

CORE TEAM TAKES CONTROLThe task is to fully redesign the inno-vation process, by increasing cross-functionality and setting common goals at project start. It sounds obvious, but it is in fact more or less a revolution. In the new process, a core team of specialists from every function is assembled.

“Previously there was not full align-ment on goals, leading to basic delays that were unnecessary. By having supply chain, sales, marketing and technical service involved from day one we are able to put all their requirements on the table and come up with the best pos-sible solution for our customers which has more value than what our competi-tors have to offer”, says Mike Nelson.

Product Platform Manager Christina Chester, who is involved in two PCR pilot projects, confi rms there are apparent benefi ts.

“The core team has taken over what was one single project manager’s role

in the past. This means we all have a good grasp of the project and there is an effi cient exchange of ideas in one forum where all the competencies are represented”, says Christina Chester.

SIGNIFICANT CUT IN TIMEJust to show the complexity and in-depth analysis of the new process, it has taken two years to design the new content and process elements. In 2010, the project reaches its tipping point where 50 per cent of the innovation projects will run according to PCR.Pilot studies show that the time to market can be cut signifi cantly.

”We now have the process to de-liver innovation to our customers in much less time than before. Now is the time to focus and gain experience in managing project delivery in world class times without compromising quality – and for this we all have a part to play”, says Mike Nelson.

46 TETRA PAK INNOVATION


recycling. And on the customer support side, Tetra Pak provides services to customers in order to reduce waste, energy and water consumption, food loss etc. All in all, the environment is present in every corner of the company and contributes to the overall compe-tiveness.

“We take a broad and long-term approach to the environment, where we focus on doing things right. By taking a lifecycle view and make decisions that are sustainable; for business and for the environment. It’s about driving environmental performance in the right direction, persistently. Also, we in-creasingly have to work with a 10 year perspective to be sure that the decisions we make today are aligned with how the world will work in a decade”, says Claes Du Rietz.

2010 marks the end of Tetra Pak’s ambitious global climate target, where CO2 emissions will be cut by 10 per cent from 2005 to 2010 in absolute terms as the business continues to grow. Tetra Pak is confi dent that the target will be reached in 2010, mainly thanks to energy effi ciency measures in the converting plants and by investments in green energy.

WATER IN FOCUSSo, if climate change was the big question of the 00’s, what will be the main issue in the new decade? Claes Du Rietz replies instantly: “Water, more specifi cally the access to water. This will be of main concern especially in many important growing markets and Tetra Pak’s con-tribution will be to be able to supply processing and packaging solutions that take a sustainable approach to water consumption.”

SUSTAINABILITYDELIVERING EVERYDAY EXCELLENCE

For the last years, Tetra Pak has utilised insights and experiences from all over the world to more effectively assist customers in reducing their environ-mental footprint. These projects are often about reducing the consumption of water, electricity and chemicals, but can also involve waste management or processing elements. This is a service area that will grow rapidly in size andimportance over the coming years.

“Our founder Ruben Rausing stated that a package should save more than it costs. We see this not only in monetary terms, but also from the environmental perspective. If we can work closely with our customers to help improve produc-tion performance, this will be benefi cial in terms of cost, quality and environ-ment”, says Claes Du Rietz.

Long-term approach to the environmentThe recession in 2008 and 2009 surprised many experts by not following the usual develop-ment of a fi nancial downturn. Also on the environmental side, the crisis showed new features.

”We have to work with a 10–15 yearperspective to be sure that the decisions we make today are aligned with how the

world will work in a decade.”

Usually, a recession means instant cuts in sustainability investments, in favour of hard economic decisions. This time, however, environmental spending and interest continued. One reason is that many governments used investments in sustainable projects as a means to meet the increasing unemployment. But the environment is also becoming an evi-dent part of the everyday business life.

“The environment is an integrated part of Tetra Pak’s business proposition and that is something we have in common with many other global com-panies in other industries. The last two years, we have seen a rapid increase in customer demands for life cycle analyses and various retailer balanced scorecard metrics putting requirements on our package and processing offer-ings. Today, we work closely with our customers to meet these increasing demands and expectations”, says Claes Du Rietz, Vice President Environment.

A THREE LEG APPROACHHe describes Tetra Pak’s environmental commitment as a three leg approach. On the operations side, Tetra Pak works hard to cut emissions, use renewable energy resources and launch initiatives to reduce the environmental footprint of the own offi ces and factories. On the product side, the focus lies on continue improving the environmental perfor-mance, renewable raw materials and

47TETRA PAK SUSTAINABILITY


48 TETRA PAK SUSTAINABILITY

SUSTAINABILITYDELIVERING EVERYDAY EXCELLENCE

Large increasein FSC-certifi ed packages

Tetra Pak supportsgreen plasticIn November 2009, Tetra Pak reached an agreement with the largest Brazilian petrochemical company, Braskem SA, to purchase limited volumes of high-density polyethylene (HDPE) derived entirely froma renewable feedstock. The agreement represents the fi rst movetowards using green polyethylene in the carton packaging industry.

Braskem expects the world’s fi rst commercial-scale green polyethylene plant, located in the south of Brazil, to come on stream late 2010 and is targeting fi rst deliveries to Tetra Pak early in 2011. The new facility will use ethanol derived from sugar cane to produce ethylene, which will then be converted into polyethylene, the world’s most commonly used plastic. It is estimated that the process will result in an overallreduction in greenhouse gas emissions when compared with thetraditional process for manufacturing polyethylene.

Tetra Pak’s ultimate goal for its paperboard supply is that all the wood fi bre used in Tetra Pak packaging should come from responsibly managed forests certifi ed to the highest standard, FSC™. Following a humble start in selected markets, more than 2 billion FSC-certifi ed and labelled Tetra Pak packages reached the market in 2009 and a signifi cant growth is estimated in 2010.

The Forest Stewardship Council (FSC) is an international organisation that brings stakeholders together to fi ndsolutions which promote responsible stewardship of the world’s forests. The FSC system independently guarantees a chain of custody from forest to store, by securing the traceability all the way from raw material source to a fi lled package. The FSC certifi cation enables Tetra Pak to use the FSC label on its packages and is a guarantee that all wood fi bre used to produce the paperboard comes from FSC-certifi ed well-managed forests and other controlled sources.

“FSC is the gold standard of forest certifi cation, the best there is. By following FSC guidelines we can make sure that the paperboard in our packages meets the high sustaina-bility standards that we and our customers expect. We know a sustainable approach to business is of critical value to retailers, brand owners and consumers, and FSC certifi cation is an accreditation of the consistent work we’ve undertaken to secure responsible sourcing and demonstrates our com mit-ment to manufacturing to the highest level of environmental performance”, says Claes Du Rietz, Vice President Environment.


Corporate presentation

2009/2010


50 _ Sidel in two minutes

Sidel in two minutes

990 5,151 25318>190

Net sales in mio Euro Employees Number of plantsService unitsR&D unitsCountries covered

Vision

We are committed to being the most

innovative, responsive and reliable

partner, providing sustainable solutions

for the beverage industry.

Our brandThe Sidel brand stands for proximity and innovation. Sidel delegates

decision-making and business responsibilities close to customers,

localises experts and competencies, and develops tailor-made solutions.

Market presenceSidel has installed more than 30,000 machines in 190 countries: from China

to Brazil, taking in the United States, Germany, Japan and Russia on the

way. Sidel is making its mark today as a multicultural group, employing

around sixty different nationalities, totalling some 5,000 employees.

Industrial subsidiaries

Sales & Services offi ces


51Sidel in two minutes _

CUSTOMER FOCUS

We create and develop lasting part-

nerships with customers, actively lis-

tening to them, understanding and

anticipating their needs. We deliver

the best innovative solutions and

services, with unrivalled quality and

lead times, worldwide.

LEADERSHIP

As a company, we lead our industry.

As employees, we lead by example.

TEAMWORK

When we pool our individual, com-

plementary abilities we accomplish

extraordinary things.

DISCIPLINE

Once decisions are made, we exe-

cute them with dedication and

respect for our community.

EMPOWERMENT

Each employee is personally account-

able, has the authority and resources

to fulfi l his/her mission.

INTEGRITY

Integrity forms the foundation for all

of our other values. Commitment to

the highest ethical standards is es-

sential for personal and collective

progress.

ProductsWith more than 30,000 machines

installed in 190 countries, the Sidel

Group is one of the world leaders in

solutions for packaging liquid foods

including water, carbonated soft

drinks, milk, sensitive beverages,

edible oil, beer and other alcoholic

beverages, in three main types of

container: glass bottles, plastic bottles

and drink cans. Sidel can support

complete line engineering needs,

ANYTIME – AFTER-SALES SERVICE

Sidel delivers after sales service 24/7.

A fantastic support to leverage pro-

ductivity based on the daily man-

agement of a globally installed base

and a history of all past actions.

CustomersOur customers come from all

parts of the beverage industry;

from beer and alcoholic beverages

to soft drinks, juice and mineral

water. In addition, we offer solu-

tions for other liquid food catego-

ries, such as edible oil and dairy

products.

Environment and CSRThe world leader in stretch blow moulding for PET bottles, Sidel’s

concern for the environment is not a recent development. We have

an established track record of source reduction initiatives and have

been particularly instrumental in PET bottle lightweighting. Our in-

dustry-leading knowledge of PET, package design and equipment

expertise enables customers to achieve optimal package and line

performance vis à vis package weight, with many able to achieve as

much as 20–30 per cent gram weight reduction. Sidel has proposed a

number of equipment innovations aimed at reducing the consumption

of energy and other resources. In addition, we have led research in

the fi eld of packaging material possibilities, from the use of recy-

cled materials to testing materials made from renewable resources.

R&DSidel is a pioneer in beverage pack-

aging solutions, especially for PET

bottles. Some innovations are: the

Combi system, facilitating bottle

making, fi lling and capping for PET

bottles; Predis, a revolutionary sus-

tainable solution to enhance bottle

hygiene. Sustainability is Sidel’s new

frontier for innovation.

from preliminary design to develop-

ing an investment budget, drafting

plans for line layout or building the

bottling line on-site. The equipment

offer encompasses blow moulding

machines, barrier treatment, Combi

equipment, fi llers, conveyors, label-

lers, pasteurisers, palletiser / depal-

letiser, robotic equipment and end-

of-line operations.

Core values


52 _ Sidel people


PEOPLE

In 2008, Andrea Forzenigo joined

Sidel as the new Vice President Prod-

uct Supply. His task: to lead the im-

plementation of World Class Lean

Enterprise (WCLE) in all the Sidel fac-

tories around the world. WCLE is

used by many leading multinationals

as a tool to deliver best quality prod-

ucts with short lead times, using the

company’s assets in the best possi-

ble way. It takes into consideration all

steps in the process from suppliers of

raw material to the start-up at the end

customer. At Sidel, WCLE has quickly

become an important tool to guaran-

tee continuous improvements.

“What we do is that we look at

every process and assess how much

time that is wasted. It could be time

for waiting, or handling a mistake or

something else. WCLE allows us to

clearly monitor seven different types of

waste, which we then use as a tool to

identify the root cause of the waste and

eliminate it”, says Andrea Forzenigo.

WCLE implementation leads

to substantial improvementsIn short, WCLE is about assessing

the real value of the time spent on a

certain stage or process. The ques-

tion to ask is: what is the part of the

time that the customer would not

want to pay for, or rather: what is the

part of the time spent that does not

add any value.

RADICAL IMPROVEMENTS

The improvements made are stun-

ning, with lead times being cut by up

to 50 per cent and operational inven-

tory at the factories reduced by 40

per cent compared to November

2008. For the fi ller production, WCLE

was implemented on the whole proc-

ess, from the customer order to the

Factory Acceptance Test. The project

identifi ed possible improvements

both in terms of solutions design and

the production process itself. By radi-

cally changing the way the fi ller is as-

sembled, a signifi cant improvement

was seen in the lead time, the accu-

racy of the delivery, the assembly

cost and the inventory.

“In fact, we were able to cut the

lead time from 24 weeks to 12. We

have also gained a 94 per cent ability

to ship the machine on time, with all

parts. The WCLE implementation

met a lot of scepticism at the begin-

ning, but today it is evident for every-

one that it is a tremendous success”,

says Andrea Forzenigo.

One of the other internal advo-

cates of the WCLE implementation is

Frédéric Sailly, Director Product Supply

France, who is responsible for the

Octeville plant, where the implemen-

tation started early on in 2008.

“The WCLE approach has “forced”

us to dive deeply into all non value

added activities, chasing waste at all

stages. In that way, we found that

WCLE not only gave the expected

lead time reductions, but also generated

a lot of extra saving, such as produc-

tivity, inventory reductions, and quality

improvements. One fi nding was that

a lot of waste was generated by com-

municating wrong or incomplete in-

formation between different entities.

Forcing the different departments to

focus on the same targets clearly

forced the employee to think about

the customer, rather than ‘intra de-

partment tasks’”, says Frédéric Sailly.

SUBSTANTIAL COST SAVINGS

Although there has been increased

costs for implementing the WCLE

mindset, the cost savings have already

been substantial in the fi rst year. But

more importantly, and the sole focus

for the project, customers now expe-

rience better quality and shorter lead

times.

“Customers should know that at

Sidel today, as soon as we identify an

issue there are people looking into

every aspect of it to remove the root

cause. The real impact that WCLE

has shown has been driving the inter-

est and ambition among our staff. In

2010 we will also extend the method-

ology to the installation phases up to

customer acceptance. Today we

have also started to see the interest

of customers for joint projects involv-

ing WCLE for instance concerning

quicker changeovers or the overall

management of the lines”, says And-

rea Forzenigo.


53Sidel people _

Like many other industrial compa-

nies, Sidel has always taken great

pride in swiftly solving any customer

problems that occur. Whether it is

giving advice over the phone or jump-

ing on a plane, the staff at Sidel have

taken any measure to assist the cus-

tomer. But what if the problem did not

occur in the fi rst place? Enter the new

Sidel investigation tool, the RCA, root

cause analysis.

Instead of fi xing and patching a

problem, the root cause analysis

takes a deeper approach where the

root cause of the problem is identifi ed

and solved. In 2009, Sidel launched

an initiative to further investigate

problems within the blowing portfolio,

using the root cause analysis.

“I realise this sounds basic and

simple, but it is still not easy. What we

have to do is defi ne a solution for the

By looking at the source of the problem instead of the problem itself,

Sidel will increase customer satisfaction and cut unnecessary costs.

cause of a problem, instead of solving

the problem itself. Otherwise we will

never be able to eradicate the prob-

lem”, says Stephane Aymonier, Global

Process Owner – Product Evolution.

Together with other Sidel special-

ists, he has been responsible for im-

plementing the root cause analysis

method within the company. The

starting point was the message from

Sidel top management that customer

problems took too long time to solve

and that it was unacceptable that

many of the problems occurred again

and again.

“A recurrent problem is of course

devastating for any customer relation.

We pride ourselves by delivering top

quality and our customers should ex-

pect nothing less. And internally these

problems mean a real cost issue until we

solve them”, says Stephane Aymonier.

FOCUS ON FACTS AND FIGURES

He says the new approach has lead to

a clear understanding of how certain

problems occur, both giving leverage

to the redesign of the present solu-

tions and providing important insights

for developing new platforms. The

root cause analysis has also brought

different Sidel entities together, creat-

ing a swifter and more fruitful process.

“The root cause analysis forces us to

really work with clear facts and fi gures.

People from the market companies

get together with the R&D staff and

this provides good insights in both

directions. We have also had the oppor-

tunity to work with colleagues from Tetra

Pak who have provided an excellent

benchmark”, says Stephane Aymonier.

A project that might look internal

from the outside, the focus for the root

cause analysis is strictly to increase

customer satisfaction. Stephane

Aymonier points out customer satis-

faction as the driver in any company,

and with the root cause analysis he

says Sidel has got a new tool to reduce

the time spent on problem solving,

simply by solving the customer prob-

lem before it occurs.

“We pride ourselves by

delivering top quality”

RCA solves a problem before it occurs


54 _ Sidel 2009 in brief

2009 IN BRIEF

Reduce energy consumption with ECO Services Sidel has launched its fi rst ECO Services to respond to bottlers’ and bottle

manufacturers’ economic and environmental concerns. The two new serv-

ices, ECO EIT™ and ECO Booster™, help reduce the impact of packaging

materials (lightweighting, use of recycled materials, etc.), decrease water

and energy consumption as well as waste and emissions. This is done by

closely monitoring and recording data about bottling lines, blow moulders

etc., enabling the ECO EIT™ and ECO Booster™ experts to develop plans

and propose corrective actions in order to improve productions. The ECO

Services family will expand over time, as further proof of Sidel’s commit-

ment to combine business competitiveness with environmental protection.

Sidel joins NAPCORIn 2009, Sidel joined NAPCOR (National Association for PET Container

Resources), the trade association of the PET plastic industry in the United

States and Canada. The main reason for this is Sidel’s awareness of the

environmental challenges faced by the beverage packaging industry. By

joining NAPCOR, Sidel is now even more actively involved in environ-

mental initiatives concerning the industry. The membership will also help

the Group enhance its dialogue with other companies in the industry.

The totally revamped sidel.com

On the occasion of the opening of Drinktec in Munich the new

sidel.com was launched. The site has been revamped to be

more customer-focused, user-friendly and with even more

direct access to the website’s contents. The completely newly

designed website now gives visitors an overview of products

and services offered by the Sidel Group to meet all require-

ments not only in the beverage world but also in the food and

homecare sectors. Scroll-down menus take visitors straight to

the images, descriptions and fi lm clips. A new section on com-

plete lines provides a clear, concise description of Sidel’s long-

standing expertise in the fi eld. There is also a section dedicated

to services: from Life Cycle Management to Engineering &

Conveying, PET bottle design and the production of moulds.


Sidel at Drinktec:

Responsive solutions for a changing worldIn a booth of more than 4,000 m2 the Sidel Group presented

state-of-the-art technologies and services at Drinktec 2009 in

Munich, Germany. At Drinktec, Sidel demonstrated both its

responsiveness and its foresight, being a true partner in responding

to new expectations in a new economy. With the motto “respon-

sive solutions for a changing world” Sidel showed that the com-

pany is able to meet the urgent needs of its customers. This

could be by optimizing the life cycle of the installed base, to re-

engineer a line or to re-invent a package, and by offering new

fl exible, sustainable, effi cient and cost effective solutions and

equipment. At the exhibition visitors experienced a path through

Sidel’s latest innovations for both equipment and services: 20

pieces of equipment, a tower dedicated to services, a complete

beer line: the most challenging installation ever shown by Sidel at

an exhibition.

55Sidel 2009 in brief _


56 _ Sidel 2009 in brief

In a close collaboration between the French négociant Paul

Sapin, the plastic cap specialist Novembal (Tetra Pak Group)

and Sidel, two wines were specially bottled in 187 and 750

ml PET bottles for the exhibition Drinktec 2009. This was

done with the purpose to fi ght the preconceived notion that

wine in PET bottles is poor in quality. At the moment, the

main buyers of PET-bottled wine are airlines and railways,

major retail outlets and the hospitality sector, but by improv-

ing the PET bottles this will open up a whole new market.

Single-layer PET allows a shelf life of up to six months in a

187 ml bottle while multi-layer PET can enable much longer

shelf life – up to 24 months for a 750 ml bottle.

Kohlox™ takes the grease out of moulds

For blow moulders to work well, regular greasing operations are needed as moving parts

generate friction. However, this kind of operation takes time. To reduce maintenance

time for blow moulders Sidel has created Kohlox™, a new material that is used in

moving parts such as studs and wear rings. This is a self-lubricating material

which does not require any greasing operations for the moulds. By using

Kohlox™, maintenance time is reduced by two minutes per operator

and mould a week, which is a considerate amount of time in pro-

duction. Not having to grease the moulds also helps improve

mould cleanliness by eliminating the possibility of grease

splashes or deposits, which are sources of persistent dirt.

Wine in PET:

A Sidel vintage


57Sidel 2009 in brief _

New Engineering & Conveying Business UnitSince the start of the global economic crisis, Sidel’s customers have been

focused on the optimisation of existing bottling lines, rather than investments in

new production capacity. Therefore the company has created a new Engineering &

Conveying business unit which gathers all the skills within line audits, fl ow

studies, layout design, auxiliary processes, piping, worksite coordination,

all types of conveying and accumulation systems. By doing so,

Sidel guarantees that the skills are put in even better use

for refurbishments, transfers or other line adaptations.

The unit works under the leadership of former

Gebo President Marc Aury and is already

operating worldwide, with more than 800

highly qualifi ed staff based in North and

South America, Europe and Asia.

Predis™, Sidel’s patented dry preform decontamination system ini-

tially used for beverages distributed in the cold chain, can now also

be used for products sold at ambient temperature. Combi PredisTM

FMa is Sidel’s innovative, simple system for blowing bottles and fi ll-

ing sensitive products in aseptic conditions. The key feature setting

the system apart from other equipment of the same type is its “dry

preform technology”: bottle rinsing is replaced with dry preform

sterilization at the oven entrance. Predis™ ensures superior hygiene

for sensitive beverages while offering unrivaled cost-effectiveness

along with product and environmental benefi ts since no water is

used and fewer chemical agents are needed. PredisTM has already

been selected by a number of beverage producers in Europe, Asia

and North America.

Predis™ – the dry alternative


58 _ Sidel Products


PRODUCTS

More eco-friendly

PET packaging for milkA world’s fi rst: the French dairy company LSDH is launching a lightweight PET

bottle, without a sealing lid, for UHT milk, thanks to the Predis™ technology.


59Sidel Products _

“A global revolution.” Emmanuel Vas-

seneix does not mince words. The

young CEO of Laiterie de Saint-

Denis-de-l’Hôtel (LSDH ) based in the

Loiret countryside, approximately

100 miles south of Paris, is talking

about the 1-litre UHT milk bottle

made from PET, with its slogans em-

blazoned on the label: “Ecological.

Practical. No sealing lid.”

Emmanuel Vasseneix lists the ar-

guments in its favour: “at only 28

grams, this bottle is lighter than the

traditional polyethylene bottle and

thus more ecological. For the con-

sumer, it’s both practical and safe,

with its completely leak-proof cap,

which replaces the aluminum sealing

lid. Finally, PET allows us to diversify

and personalize bottle shapes.”

Since the summer of 2009, this

bottle has been produced on a Combi

Predis™ FMa, at a rate of 24,000

PET bottles per hour.

INNOVATE TO DIFFERENTIATE

“Innovation is the only way to differ-

entiate your company,” insists Em-

manuel Vasseneix. “If you are doing

what everyone else is doing, price will

be the only differentiator!”. This mind-

set has certainly paid off. During the

years, LSDH has been at the forefront

of product and packaging innovation,

LAITERIE DE SAINT-DENIS-DE-L’HÔTEL (LSDH ) / JUS DE FRUITS D’ALSACE (JFA)

Headquarters: Saint-Denis-de-l’Hôtel (Loiret, France)

Production sites: 3

Employees: 650

Sales in 2008: € 320 M (juice: 60% ; milk: 25% ; other: 15%)

Production in 2008 : 620 million packages (75% in Tetra Brik, 20% in PET,

5% in glass)

Sidel complete line: preform infeed, Combi Predis™ FMa, shrink wrapper,

conveyors, EIT™ system (Effi ciency Improvement Tool).

resulting in LSDH packages receiving

both a Packaging Oscar and a Gré

d’Or in the Innovation category.

With the milk market remaining

stable at 3.5 billion litres consumed

per year in France, differentiation is all

important. To increase its production

capacity and thus meet its custom-

ers’ expectations, LSDH decided to

take another technological leap for-

ward: the acquisition of a Sidel line

equipped with a Combi Predis™ FMa.

This was a fi rst for sensitive beverages

with neutral pH.

LIGHTWEIGHT AND ENVIRON-MENT IN FOCUS

This new technology was chosen for

several reasons, explains Emmanuel

Vasseneix. “First of all, there was the

environmental aspect: the dry decon-

tamination system consumes very lit-

tle disinfectant, and it reduces water

consumption to next to nothing.” As

Vasseneix says, “you have to look

ahead to the company’s future re-

sponsibilities, both to society and to

the environment.” Another important

feature for LSDH was “the possibility

of lighter bottles: we have gone from

28 to 24 grams thanks to the Pre-

dis™ system, which sterilizes pre-

forms instead of bottles. We have

decreased bottle weight by nearly 20

per cent, and we no longer have the

thermal constraints associated with

bottle decontamination.” He adds: “fast

output rates, innovative technologies

and Sidel’s recognized expertise in

bottles all had a role in our choice.”

WEIGHT REDUCTION NEXT STEP

The system’s fl exibility is also appre-

ciated when products have to be

changed three or four times a week

on the same line which runs 24 hours

a day, six days a week, in order to

bottle short runs and promotional

products. The new line is up and run-

ning for part-skim, skim and whole

milk in 1- and 1.5-litre bottles. 5-litre

bottles are to be added to the line in

2010. Product shelf life is three to

four months at room temperature.

As a next step, LSDH is looking to

lighten its PET milk bottle even more,

in collaboration with Sidel, with the

goal being to get it down to 22

grams. LSDH is also targeting high-

end markets (infant formulas, vitamin-

enriched milk, products for seniors,

etc.) and clearly announces its ambi-

tion: “to become the national brand

for major retail customers.”


60 _ Sidel Products

The SL 90 labeller meets the growing market demand

for both paper labels applied with cold gluing and self-

adhesive transparent labels.

Also suitable for high speeds, this labeller is entirely

driven by servo motors, making it particularly effi cient

and fl exible. With no gears at all, maintenance and for-

mat changeovers have been greatly simplifi ed. Labels

are centred electronically: a vision system, combined

with bottle platform servo motor drive systems, orien-

tates the bottles to ensure that even the most complex

formats are perfectly positioned.

The SL 90 can also handle very lightweight self-ad-

hesive labels: an air system controls the tension of the

fi lm, reducing mechanical stress. Since the machine

can be cleaned very quickly, savings in energy con-

sumption are optimised. Moreover, overall line noise

levels are low because of the use of servo motors.

Rollsleeve turns the art of labellingThe Rollsleeve machines are innovative rotary labellers that create

and apply plastic shrink sleeves from a machine direction (MDO)

label onto glass, plastic and metal containers. Traditional sleeves

are applied transversally (TDO), a technique that requires substan-

tially more material.

The special feature of these machines is a shrink sleeve creation

and application by a lengthways reel, with a unique welding system

ensuring that the labels are closed with no need for glues or sol-

vents. The Sidel Rollsleeve is not restricted to only one type of mate-

rial but instead can work many types of materials and thicknesses

due to the bottle moving down into the created sleeve, instead of

the sleeve being pulled down over the bottle.

Compared to traditional TDO labelling, the Rollsleeve leads to a

cost saving of 15-20 per cent. In addition, there are apparent environ-

mental benefi ts because of the absence of chemicals in the process.

Labelling with maximum fl exibility


61Sidel Partnership _


PARTNERSHIP

One of the key factors of success for

Sidel is a well-managed installation of

complete lines and standalone equip-

ment. Obviously, a smooth installation

process that runs according to plan is

a solid sign of Sidel’s ability to deliver

high quality. With this in mind, Sidel

launched an initiative in 2009 to monitor

and optimise the installation process.

The SIX programme (Sidel Installa-

tion eXcellence) aims at enhancing

the speed and quality of the installa-

tion of standalone equipment as well

as complete lines.

“This project is about delivering a

world class customer experience. We

look at the elements of the installation

process to see where we have pos-

sible improvements and try to fi nd the

root cause of any issues. We have also

launched a comprehensive compe-

tence development programme among

our staff to increase knowledge sharing

about the installation process”, says

Stefano Calestani, Global Technical Pool

Director at Sidel Group.

He has been responsible for the

design and implementation of the SIX

programme, which has covered all Sidel

markets and so far more than 300

installation projects. The objective has

SIX programme cuts installation timesAn initiative to improve the installation process has led to substantial cuts in lead times and costs and a lot of praise from customers.

been to cut installation costs and in-

crease the quality of on-site execution.

So far, SIX has turned out a success.

“We have cut the average installa-

tion time by 4 weeks, compared to

similar installations in 2008. We now

are working to secure additional im-

provements during 2010 by speeding

up the project with a Lean approach

and investing in sustainability.”

The SIX programme has integrated

new ways of working into Sidel’s day-

to-day activities worldwide. One of

the key elements has been the man-

agement, control and reporting sys-

tem which has introduced increased

predictability and systems for antici-

pating risk prior to the installation

phase. The control intervals are tighter

and the competence development

programme has led to a culture of

continuous improvements.

“At the end of the day it all boils

down to customer experiences. We

have received a lot of praise from our

customers after launching the SIX

programme. They see shorter lead

times, improved overall quality and

better project management”, concludes

Stefano Calestani.

SIDEL INSTALLATION VISION

“We commit to establishing a culture of performance across the value chain and developing competencies to deliver world class installations with predictable results that satisfy our customers and increase our competitiveness.”

t , concludes


62 _ Sidel Partnership

An important part of Sidel’s strategy

during the last few years has been to

closely monitor and evaluate all sup-

pliers. Cutting lead times, securing

the right specifi cations and initiating

new price negotiations allow Sidel to

offer a more competitive product port-

folio from many aspects. In addition,

a close cooperation with suppliers

results in better product development

and increased quality performance.

In China, it was decided to develop

a strong partnership with a strategic

supplier, to support the set-up of the

Sidel plant in Beijing in 2008. The

choice was Ferrotec, a Japanese

company with 4,000-plus employees

and two manufacturing sites in China;

Shanghai and Hangzhou. Certifi ed for

both ISO 9001 and 14001, this sup-

plier was chosen for its rigorous com-

Strong partnership cuts global lead timesJapanese Ferrotec has become a model-like partner in the strategy of sourcing interna-

tionalisation and in the localisation of modules in China to supply Sidel’s plant in Beijing as

well as the European plants.

mand of the manufacturing and con-

trol processes. The contract runs over

fi ve years, covering GUPM’s (large

mould support units) and front and

rear modules. These are some of the

most technically complicated sub-

assemblies in Sidel’s entire production.

FOCUS ON QUALITY

Ferrotec has invested in new equip-

ment and in facilities dedicated to

Sidel, such as a manufacturing shop,

assembly room and measurement

room. Production started in early 2008,

with the assistance of Sidel experts

from China and France. Ferrotec and

Sidel have also worked closely to source

and qualify each stage of manufac-

turing of the sub-assemblies, includ-

ing raw materials, milling, control,

tests, treatments and packaging.

In order to reduce lead times and

to be price competitive, Ferrotec has

also implemented Lean Manufactur-

ing with strong support from Sidel

Beijing and external consultants. To

continue the progress and to main-

tain an unyielding level of quality,

Ferrotec is also using the 6 Sigma tools.

ZERO DAYS LEAD TIME

An overall challenge for Sidel is to se-

cure the proper sourcing of parts and

products despite the different entities

of the group being spread across the

globe. In the case of Ferrotec, this has

been solved by a consignment stock

in Octeville, France. By implementing

a consignment stock, there is no dif-

ference in the lead time between a

local supplier in France and Ferrotec

in China. In fact, the lead time today

is down to zero days, and the stock is

under the management of Ferrotec.

Although there are a number of

challenges; in the form of distance,

cultural differences and highly techni-

cal products; Sidel and Ferrotec have

shown that it is possible to establish a

two-way partnership where high

quality products are shipped from

China to France without hampering

lead times, quality or costs.

For Sidel, it is of the utmost impor-

tance to ensure best quality and lead

times and to control the cost of the

technical sub-assemblies. Only then

can Sidel be the most competitive

partner on the market. The partner-

ship with Ferrotec clearly demon-

strates this ability.


63Sidel Partnership _

The beverage market has long been

a focus of Otsuka Pharmaceutical’s

development programmes. After having

tried out various local or regional sup-

pliers, the company searched for new

partnerships with top-standard world-

wide groups able to supply them with

break-through innovation. In this, the

key for success for Sidel was the

ground-breaking Predis solution. In-

stead of cleaning the full-blown bottle,

preforms are decontaminated.

“Our innovation and its high tech-

nology content allowed two great

companies to become partners in a

true win-win relationship. Otsuka is a

company focusing on health and

eco-friendliness and here is where

Predis is a perfect fi t”, says Sebastien

Geffrault, Director Account Manage-

ment and Marketing for Sidel Group

in South East Asia Pacifi c.

By decontaminating the preforms in-

stead of the bottles, customers can

radically cut the use of water and chem-

icals. In addition, it gives the possibil-

ity to reduce the weight of the bottle,

which not only saves costs but also

reduces the environmental footprint.

Predis develops partnership

between two companies

For leading Japanese pharmaceutical company Otsuka, Predis from Sidel was

a perfect fi t. The ground-breaking solution helped Otsuka underscore the

healthy and environmentally friendly profi le for the isotonic drink Pocari Sweat.

At Otsuka, Predis is used for produc-

tion of the isotonic beverage Pocari

Sweat, which is a very popular drink

among health conscious people all over

Japan and in many Asian countries.

Today, some of Otsuka’s fi lling lines

are equipped with Predis technology,

producing bottles in two different

countries.

“Otsuka was the fi rst customer in

Asia to acquire Predis. That a renowned

big player chose our technology has

meant great leverage. Otsuka, like

many other Japanese companies, is

extremely quality and performance

oriented. Counting them among our

customers is the best reference we

can get”, says Sebastien Geffrault.


64 _ Sidel Innovation


INNOVATION

With more than 5,000 blow moulders

in service around the world, including

800 SBO Universal™ machines, Sidel

has amply demonstrated its blow

moulding know-how. Today, nearly 200

machines are operating at more than

40,000 bottles per hour, attesting to

Sidel’s experience with high speeds.

Thanks to its large installed base,

Sidel knows how to take its customers’

needs into account to continue im-

proving the performance of the blow

moulders. These improvements apply

to blow moulders that are already in

service as well as to the latest gener-

ations of SBO Universal™ machines.

UNMATCHED PERFORMANCE

Sidel’s technological expertise and its

extensive experience will benefi t

companies acquiring the new range

of SBO Universal2™ blow moulders,

whose output of 2,000 bottles per

mould per hour put them among the

world’s fastest blowers.

Also available in Combi confi gura-

tion, this new range can reach record

productivity levels without any com-

promise in terms of robustness or

production reliability. It decreases un-

planned downtime to less than 3 per

cent through the use of more robust

Sidel blow moulder shifts into higher gear

2,000 bottles per mould per hour: that is the output rate for the new

SBO Universal2™ blow moulders, now more robust and more reliable.

components and fewer spare parts. It

ensures fl awless productivity with

guaranteed effi ciency of 97 per cent

and optimised production costs.

BOTTLE QUALITY AND ENERGY SAVINGS

The new SBO Universal2™ machines

have the same heating reserve already

available for the SBO Universal™ range,

with identical oven confi guration and

installed power. New lamps decrease

energy use by up to 10 per cent. To

optimise heating power and quality,

the distances between the lamp rack

and the preforms and between the

refl ectors and the preforms can be

adjusted as a function of the process.

The result is a wide processability

window and impeccable bottle quality.

At the blow mould station, the bell

nozzle ensures neck stabilisation to

keep the preform centred and guaran-

tee bottle quality.

RELIABILITY AND ROBUST-NESS TO WITHSTAND ANY TEST

The reinforcement of the spindle chain

structure increases its service life and

enables speeds of up to 2,000 bottles

eQuick Change:Format changeover timesreduced by 50 per cent

As an optional feature, the SBO Universal™2 can come equipped

with the new eQuick Change system patented by Sidel. It provides

ultra-fast connection of the cooling circuit to the mould neck with

just one click. In less than fi ve seconds per mould, all of the piping

that feeds the neck circuits with water and the electrical cables for

the temperature probes are connected and disconnected. This

leads to 50 per cent time savings with respect to the Quick Change

version. Implementation is extremely simple: a single part to handle

and just four operations to perform without any tools. The eQuick

Change system is perfectly adapted to HR moulds (Heat Resist-

ance) and can be adapted to all of Sidel’s latest-generation blow

moulders (SBO Universal™, SBO Series2 and SBO Series2+).

per hour per mould. To guarantee per-

fectly repetitive, precise and reliable

movements, the laws of movement

have been completely reworked: the

new cam profi les and the new, opti-

mised transfer arms help to increase

the speed.

The mechanical transmission has

been modifi ed to ensure greater reli-

ability, with a new, more powerful motor

and a new gear module. The mould

base cams and the mould open/close

dampers have also been adapted.

Centralised, automatic lubrication on

the blow wheel ensures good cam

lifetime and transfer reliability. To im-

prove information fl ow and reduce

response times of the solenoid valves,

a new electrical rotary union has been

installed, and the automation archi-

tecture has been revised.

The high speeds with the SBO

Universal2™ range are adapted to all

bottle shapes and to lighter packages.


65Sidel Innovation _

At the Drinktec fair in Munich last

year, one of the Sidel stars was the

new SF 300 LP level-probe electronic

beer fi ller. Equipped with electro-

pneumatic components integrated

on the fi lling valve, self-draining sur-

faces and effi cient servo motors,

the SF 300 LP is not only a techni-

cally advanced solution, but also a

solid answer to the many environ-

mental requirements from customers

all over the world. One example of

this combined sustainability and

technology thinking is an external

product tank, allowing for a sub-

stantial cut in the consumption of

water and chemicals and a minimum

product loss during changeover.

Taking beer fi lling to a new level

The SF 300 LP takes beer fi lling to a

new level in several areas; sustain-

ability of course, but also hygiene,

effi ciency and fl exibility. The design

of the machine structure has reduced

the surfaces to a minimum and many

mechanical components have been

eliminated, compared to a traditional

solution. The few surfaces left are

self-draining and the machine access

has been improved to simplify main-

tenance and cleaning operations.

An automatic, telescopic crown

chute gives great fl exibility by guaran-

teeing an intervention-free adapta-

tion to all bottle height formats and

greater reliability of fi ne adjustments.

Sidel also offers the option of

installing the SF 300 LP in a block

with an ultra-clean crowner. The

crown feeding on the exposed fi ller

takes place through an Aidlin 24CR,

specially designed for very high speed

(1,350 crown/minute), highly reliable

and featuring increased hygiene and

performance due to the gravity orien-

tation principle used in the patented

Aidlin™ waterfall system.

“The technical features of the SF

300 LP enable Sidel to compete with

the most qualifi ed solutions in the

market and to meet the requests

from even the most demanding cus-

tomer”, says Stefano Baini, Filling

Equipment Product Manager at Sidel.


66 _ Sidel Sustainability

““TTTThhhheeee EEEECCCCOOOOO BBBBBBoooooooosssstttteeeerrrr sssssuuuuurrrreeeellllyyyy ccccoooommmmbbbbiiiinnnneeeessss fifififi nnnnaaaannnncccciiiaaaallll wwwwiiiitttthhhh

ggggrrrreeeeeeeenn bbbbbeeeennnneeeefifififi ttttssss””””


67Sidel Sustainability _


SUSTAINABILITY

Say ECO Booster and most people

probably think of the environment.

But this new solution from Sidel actu-

ally has more to it. By thoroughly au-

diting blow moulding equipment and

proposing improvements, Sidel now

can give the customer both an envi-

ronmental and economic boost.

The ECO Booster represents a

progress based approach that is

founded on Sidel’s knowledge of the

installed base, a process database

that is constantly being enhanced and

on site evaluation by specially trained

experts. All in all, this gives energy

savings that guarantee a quick return

on investment, as well as a reduction

in the environmental footprint.

“Energy savings are not only about

the environment. A lower energy con-

sumption makes it easier to get en-

ergy commissions or reduced tax in

some markets. So the ECO Booster

surely combines fi nancial with green

benefi ts. In fact, one bar of pressure

gained on the high pressure line

represents savings of more than

€ 20,000 per year”, says Luc Desoutter,

Sustainability Offi cer at Sidel Group.

During the global fi nancial down-

turn, many companies have gained

interest in production optimisation.

Still, there is insuffi cient knowledge

on what options there are and how

easily the performance can be in-

ECO Booster reduces

energy consumptionThe new ECO Booster program from Sidel is aimed at reducing the energy

consumption of blow moulders. But it has more to it than just green issues.

creased. Here is where ECO Booster

comes onto the stage.

AUDIT AND CORRECTIVE ACTIONS

The ECO Booster programme is a four

step process. It starts with an in-

depth analysis of the installed equip-

ment, looking at power consumption,

air pressure, process and package,

air and water quality, mechanical

control and machine environment. In

a complete line, the blow moulder ac-

counts for some 70 per cent of the

total energy consumption, making it

the obvious starting point for process

optimisation.

The second step of the ECO

Booster is a comprehensive report

compiled from a comparison of

measurements with standard ma-

chine production data that has been

acquired from Sidel equipment all

over the world. The report evaluates

the main observations, their impact

on consumption and the cause of

any problems. Finally, it proposes a

tailor made solution as a function on

the desired return on investment,

with evaluation of potential gains.

The next step is the actual correc-

tive action on the blow moulder, refur-

bishing and improving the oven and

blow station. This could also include

process and preform design optimi-

sation, as well as new tools for moni-

toring and controlling energy con-

sumption. With all this in place, the

fi nal step of the ECO Booster is to

validate the actions taken and to

show this by putting the Eco stamp

on the equipment.

SUCCESS IN BELGIUM

Belgian Spadel Group was one of the

fi rst customers to perform the ECO

Booster. The program was carried

out on fi ve Series2 blow moulders and

two Combis installed at Spa Monopole.

“Owing to our location in a natural

heritage site and to the high environ-

mental awareness of our manage-

ment team and all our staff, we are

constantly on the lookout for initia-

tives that can help us decrease our

environmental footprint. Sidel is one

of the fi rst of our suppliers to make

this investment with us and to pro-

vide us with its expertise in meeting

shared environmental and economic

goals. This approach is extremely

positive, and we are expecting great

things from it”, says Joffrey Joassin,

Technical Development Manager of

the Spadel Group.


68 _ Sidel Sustainability

Putting green words into actionAt Sidel, the efforts within sustainability

are about more than fi ne words. Today,

every new product or solution shows

evident environmental benefi ts. On this

page you will fi nd three examples.

SM 900 mixerIn a stand alone mixer, about 50 per cent of the CO

2 intro-

duced is lost during production. In the SM 900 this fi gure is

down to 12 per cent. The electronically controlled centrifugal

pumps ensure the optimisation of the various production

stages, resulting in signifi cant energy savings. A liquid ring

vacuum pump means there is no need for the use of water.

The SM 900 mixer can handle a wide range of products, from

CSD and carbonated water to diet beverages and beer. The

quick format changes guarantee maximum production conti-

nuity, and the de-aeration system removes air down to 0.5

ppm, providing greater product stability.

SR-E rinserThis new electronic rinser offers a variable rinsing treatment

time in order to minimise water consumption. A special mo-

bile nozzle combines water and sterile air to maximise the

cleaning performance while at the same time halving water

consumption. Equipped with electro-pneumatic technology,

the SR-E rinser enables the operator to check the pressure of

individual valves at all times. If any pressure differences are

detected by the special sensors, immediate action can be

taken during production. Also, the treatment times can be

optimised according to the format, leading to less water and

chemical waste.

SF 300 FM fi ller A simple machine design giving a high level of hygiene is the

most apparent feature of this new fi ller for carbonated soft

drinks and beer. But the machine also comes with a set of

real environmental benefi ts. The use of torque motors instead

of motors with a traditional asynchronous mode has cut the

energy consumption substantially. The internal cleaning

circuits have been optimised in order to reduce chemical

wastage; and by fi nding a new design for the product feeding

system CO2 consumption has been reduced. The end result

is a technically advanced fi ller for demanding customers;

customers who also have high expectations on environmen-

tal performance.


Your solution – every day

Corporate

presentation

2009/2010


Corporate presentation 2009/2010

nutritious foods. DeLaval helps farm-

ers run their farms their way by pro-

viding their solutions, every day.

Our brand promise is therefore to

empower the dairy farmer with im-

proved control over milk production.

DeLaval accomplishes this by offer-

ing complete, reliable and profi table

solutions, including close support.

Core values

Passion – we share a passion

for dairy farming

Our focus is to help to improve, sus-

tain and guide dairy producers with

complete solutions to adapt to their

needs. We are committed to the dairy

industry now and in the future. We have

a proud 125-year heritage of driving

progress in milk production together

with our business partners.

People – our people are empowered

to assume responsibility

We are proud to be part of a global

community and we respect and en-

courage the diversity and creativity

coming from the mix of cultures, gender,

religions, experiences and personalities.

Professionalism – we are professio-

nals who earn our customers’ trust

through commitment and reliability

We are committed and structured in

order to create profi table business

throughout the value chain.

Partnerships – we believe in partner-

ships built on mutual trust and benefi t

Our customers, their needs and

expec tations are the starting point for

everything we do. We are characterised

by our close relationships with all

players in the value chain through

proximity, attitude and support.

DeLaval intwo minutes

Our brand

It is our goal to turn the very well-known

and respected brand that DeLaval is

into a promise to our customers, a

promise that is relevant to them and

which they see as a reason to choose

DeLaval. As dairy farmers, our custom-

ers have one of the toughest and most

interesting jobs there is. They manage

their farms with an increasing level of

high technology, and larger staff strength

as a result of the consolidation in the

industry, and of course larger herds.

They juggle all the above complexities

to produce one of the world’s most

70

Number of employees 4,077

Net sales 805 million Euros

Vision Whenever dairy farmers have a need they should

think fi rst of DeLaval

Mission We drive progress in milk production

Solutions DeLaval offers four Capital Goods systems: System Rotary,

System VMS, System Stanchion & Other Animals and System Parlour.

DeLaval customers can also choose from a wide range of

Aftermarket consumables and services which are grouped in four

Portfolios: Liners & Tubes, Farm Supplies, Services & Original Parts,

Milk Quality & Animal Health.

DeLaval facts



Environment and CSR

Our Corporate Social Responsibility

(CSR) cornerstones are:

Food for Development

Food for Development is an important

part of DeLaval’s corporate social re-

sponsibility. The target is to achieve

sustainable social and economic dairy

development by promoting public-private

partnership in developing countries.

We are committed to helping cus-

tomers, governments and community

based organisations to provide milk to

children around the world. A public-

private partnership is the best way to

fi ght rural poverty and malnutrition

through dairy development. All DeLaval

activities are long-term business de-

velopment projects aimed at encour-

aging demand for locally produced

dairy products and pushing for trans-

formation of subsistence smallholders

into commercially viable farmers.

Sustainable Dairy Farming

Sustainable Dairy Farming is a DeLaval

initiative to support farmers. The goal

is to reduce the environmental foot-

print of farms, while improving milk

production, farm profi tability and the

well-being of the people and animals

involved. DeLaval believes this goal

can be achieved by providing techno-

logy and services to increase resource

effi ciency. Or, put another way, by

supporting dairy farmers to do more

with less.

R&I

Research and innovation has been

essential to DeLaval’s steady progress.

This is especially emphasised in

product development, where the team

works in close contact with a world-

wide network of farmers, academics,

dedicated research facilities, scien-

tists, sales teams, authorised dealers

and other agricultural experts.

Smart Farming

Smart Farming is a DeLaval initiative

aimed at infl uencing and shaping the

future of dairy farming today. The goal

is to accelerate the transition from

milking management to global farm

profi tability management by harness-

ing emerging decision tools and auto-

mation technologies for better quality

milk and profi ts.

Focus on service

In a competitive market, good customer

service differentiates one company

from another. To strengthen the strong

partnerships we have with our custom-

ers, we have created InService™.

It is a new trademark for service

taking into consideration that every

farm is different and every farmer

unique, whilst adapting the solutions

to their particular requirements

Quality

We have a strong and long commit-

ment to constantly improve milk quality,

hygiene, and animal welfare. We work

with dairy farmers to protect their in-

vestment by supplying highly effi cient

system solutions for milking, herd

management, animal traffi c control,

feeding, cooling, manure handling,

ventilation and energy recovery, as

well as Biosecurity and Animal Health

related products.

Markets and customers

DeLaval operates with more than 4,000

employees in over 100 markets. DeLaval

provides integrated solutions that cover

not only cow but also sheep, goat and

buffalo dairy farms to over 1,000,000

customers around the globe.

71


Danish dairy farmer Erik Jørgensen has

been a farmer all his life. He never

thought he would see the day when

livestock would willingly enter a stall

to be milked by a machine. But since

he started up his VMS-adjusted barn

two and a half years ago, dairy farming

as he knew it changed forever. These

days he almost works regular offi ce

hours and spends most of his time

monitoring and managing his herd in-

stead of doing hard manual labour.

The cows are happier than ever and he

can spend more time with his family.

In short, life is good for Erik Jørgensen.

Designed and built especially for VMS

it has been little more than two years

since Erik Jørgensen’s new barn has

been up and running. But the process

leading up to the decision to go with

DeLaval VMS took almost six years.

One important factor behind his deci-

sion to choose DeLaval was the ability

to manually control the milking arm on

the VMS and he demonstrates just how

easily he can take control of the milk-

ing arm and manually attach it to the

udder which is important when train-

ing new cows.

“Animal welfare is what matters

most to me and I was concerned that

milking robots would cause the cows

undue stress. I visited other farms and

saw that the animals did not suffer with

VMS, in fact it was the other way around.

I also looked at competing products

before fi nally deciding to go with

DeLaval’s Voluntary Milking System,”

says dairy farmer Erik Jørgensen.

A new way of life as a dairy farmer

Located in Sjørslev on the Danish

Jutland, Erik Jørgensen and his

brothers took over the farm from their

father in 1978. The original barn was

built in 1986 and equipped for a herd

of 50 cows. Back then this provided

plenty of space but now he has almost

three times as many cows. His three

sons help out when they are not in

school. One day they might follow in

their father’s footsteps and become

dairy farmers too. With milk prices

dropping, Erik Jørgensen doubts that

he would have made the investment

in a new barn had it not been for his

sons’ interest in dairy farming. But he

is very satisfi ed with the new way of

life that has come about with VMS.

“It’s a big change from having to

get up every morning at four to milk

the cows. The VMS comes with a

freedom that was never possible before,

I can sleep-in if I choose to. Since I don’t

have to be in the barn at specifi c hours

I can plan the work day around my

family. The whole barn is monitored

by camera so I can sit and watch from

home instead of having to be on site

all the time. Not having to endure the

hard labour of milking every day eases

up pressure on my back and I would

say my overall quality of life has im-

proved a great deal with VMS,” Erik

Jørgensen says.

Another great advantage of the

free dom that comes with VMS is that

more people are attracted to farm work

because of the improvement in work-

ing hours. Erik Jørgensen has been

fortunate to have had the same man

working for him for fi fteen years but

should he resign it will be a lot easier

to fi nd a replacement than previously.

Animal welfare is good for business

Once Erik Jørgensen had made the

decision to invest in the DeLaval VMS

he went all out, and with help from

DeLaval, built a state of the art barn

customised for his particular needs.

The barn is organised so that he can

easily move around and have a clear

DeLaval Voluntary Milking System (VMS) transforms dairy farming intoa 9 to 5 job

72

PEOPLE | Corporate presentation 2009/2010


73


view of every corner. Animal circulation

is optimised for an even fl ow through

the two VMS units in the middle of

the barn and cows with special needs

such as those who are pregnant or

sick are automatically separated off.

This makes the job of taking care of

the herd a lot easier. Animal welfare is

good for business. “Taking care of the

animals is the most important part of

a dairy farmer’s job. Happy cows pro-

duce much more milk and with VMS

they are happier than ever because

they don’t have to wait until I milk

them. Instead they can choose when

and how often they want to be

milked; some of them as often as fi ve

times a day, others only twice a day.”

says Erik Jørgensen.

The hydraulic arm on the DeLaval

VMS is fast and reliable. Designed to

create a comfortable milking experi-

ence for the cow, the VMS has nothing

placed under the animal during milking.

To avoid spreading disease, hygiene

standards are another important issue.

With the DeLaval VMS the teat cup is

cleaned between each milking. “For

us, animal health and welfare are al-

ways in focus and we have come a

long way. Today, automatic systems

are an accepted method but we have

only just begun scraping the surface

in this fi eld, the possibilities are end-

less. No one will want to run their

dairy farm operation in any other

way,” says Jonas Hällman VMS Port-

folio Director at DeLaval.

The comfort of around the clock

support

It is clear that Erik Jørgensen cares

deeply for his animals and when the

cows suffer he suffers with them. That

is why well functioning VMS robots

are of the utmost importance. A halt

in production is painful for cows that

are not milked when they need to be

and it can take a lot of time to catch

up. To avoid a breakdown, the farm

has its own energy and water supply.

But if something should happen the

DeLaval service technicians are a

phone call away. The long-term com-

mitment from DeLaval was important

to Erik when deciding to make the in-

vestment in VMS. “It is a great comfort

to have the DeLaval’s VMS service

team. I can call them 24/7 and their

technicians impress me with their

knowledge of the VMS robot. Some-

times they don’t even have to come

out to the farm, they can guide me

step by step over the phone which

saves a lot of time. If I have an issue

with my computer software they can

access it remotely and I just sit back

and watch them solve my problem,”

says Erik Jørgensen.


An offi ce job

Managing the herd from his offi ce de-

mands a different skill set than tradi-

tional dairy farming. But although Erik

Jørgensen had no previous computer

experience he has quickly adjusted to

using computerised data to improve

his operation, which helps increase

production and achieve higher quality

milk. With higher quality milk he can

earn more than one hundred euros extra

per cow per year and the possibilities

to fi ne tune everything from feed to barn

temperature are endless. The goal for

Erik Jørgensen is not to have the largest

dairy farm operation in Denmark but

the most effi cient. “The cows are quick

to learn how to use the VMS but just

like people they are individuals. Some

of them don’t like the feed as much so

even when their udders are full they are

still not as eager to enter the VMS which

can lead to fewer milkings. Finding a

feed that most cows like is a challenge,

cows can be just as picky as humans.

For example, if it were me in there I

would have preferred some Danish

pastries,” laughs Erik Jørgensen.

Sustainability comes in many forms

Erik Jørgensen recognises the need

to reduce the environmental footprint

of the farm and the VMS helps him do

that. When the milk cools from the cows’

body temperature of 38 degrees to the

storage temperature of four degrees

the excess heat is used to warm up his

home – saving thousands of litres of oil.

VMS works seamlessly with this since

it provides a constant fl ow of milk in-

stead of peaking during certain hours.

According to the Danish Agricultural

Advisory Service, DeLaval’s VMS ranks

among the top Automatic Milking

Systems in the world for energy effi -

ciency. “Sustainable dairy farming is not

only about reducing environmental im-

pact. It’s also about increasing effi ciency.

If I can improve the yield from each cow

I can keep the herd smaller which also

means less impact on the environ-

ment,” emphasises Erik Jørgensen.

VMS 2010 - The sky is the limit

So far VMS has changed the lives of

more than 6,000 dairy farmers. Since it

was launched over a decade ago a lot

has happened and DeLaval continues

to make improvements with each new

model. The VMS 2010 is more robust

and serviceability has improved. A new

touch screen operating system and

the option of a steam backfl ush unit

that uses steam to disinfect the VMS

between each milking are some of the

new features. “When we designed the

VMS, we applied all of DeLaval’s know-

ledge of dairy farming. The engineers

knew that to work well in the barn en-

vironment, the VMS had to take many

things into consideration. Our vision of

Smart Farming is to continuously im-

prove the smartness of the system. If we

can connect everything from feeding

to animal health systems we have come

a long way. Reducing energy and water

consumption, supporting animal welfare

and boosting production are corner-

stones of the DeLaval VMS and we will

continue to broaden the offering with

every new version,” says Jonas Hällman.

Despite fi erce competition from

countries with lower production costs,

the future looks good for Erik Jørgen-

sen. He believes the key to survival is

products that give good value for money.

“Today, I have a very modern farm but

ten years from now I am sure it will be

obsolete. If someone had told me about

VMS fi fteen years ago I wouldn’t have

believed it possible and here we are now.

I don’t know what the future holds, but

to me, the sky is the limit,” concludes

Erik Jørgensen.

74



75


2009/2010 in brief

Sustainability in focus at IDF World

Dairy Summit

Sustainability in European dairy farm-

ing was one of the major topics at IDF

Berlin. At the event DeLaval put forward

its Sustainable Dairy Farming strategy,

presenting solutions that are already

helping dairy producers globally to

become more profi table while reduc-

ing environmental impact.

DeLaval also presented its quotation

tool for sales staff to evaluate the

energy footprint of the system farmers

are planning to use. Today, Sustainable

Dairy Farming is incorporated into all

research and development to help

farmers towards a farming which is

both sustainable and profi table.

Optifeed, a smarter robotic system

In April, DeLaval launched Optifeed

System, the market’s smartest feed-

ing system designed to help dairy

farmers save up to three hours of

labour each day, improve performance

and signifi cantly cut feeding and capi-

tal costs.

Feeding is the largest cost driver on

a dairy farm, representing up to 50 per

cent of running costs. With accurate

fi lling, mixing and distribution, the

latest DeLaval’s robotic feeder maxi-

mizes returns and helps to improve

the farmer’s lifestyle. The Optifeed

System is designed to be combined

with existing on-farm equipment such

as silos, mixers and buffer tables.

Swinging Cow Brush increases

profi tability

A study by Cornell University shows

that dairy cows using the DeLaval

Swinging Cow Brush (SCB) register

higher milk production and fewer

clini cal mastitis cases.

The study was presented in August

2009 and concluded that second

lactation cows using the SCB showed

a signifi cant increase in daily milk

production, of up to 1 kg per day.

Installation of the SCB resulted in an

immediate increase in cow grooming

behavior. A second major fi nding was

a signifi cant drop in clinical mastitis

cases, over 30 per cent, among second

and older lactation cows.

GMP facility opened in Drongen

A GMP facility that supports farmers in

accessing safe and effi cient Biosecu-

rity and Animal Health related products

has opened in Drongen, Belgium.

Disease control and prevention are

major challenges in the dairy industry.

A farm disease outbreak poses a serious

health threat, as well as a fi nancial

risk for the individual farmer.

The new facility answers to the new

Current Good Manufacturing Practice

regulations. The facility will supply

dairy farmers in Europe, Africa, Middle

East and Asia with vital veterinary

medicinal products, targeted mainly

at preventing mastitis and lameness

in cows.

Mega VMS operations inaugurated

in 2010

The inauguration of two mega VMS

operations marked this year another


milestone for the DeLaval voluntary

milking system VMS. The Mason Dixon

farm located in Gettysburg, Pennsyl-

vania (USA) has become the largest in

the world with twenty VMS and 1,100

cows. The Belshina-Agro operation in

Belarus with twelve VMS and approxi-

mately one thousand cows is currently

the largest VMS operation in Europe.

Modern dairy farming is defi ned by

scale and effi ciency. With the VMS

technology dairy farmers fi nd a new

balance between a more profi table

business and an enhanced lifestyle,

while getting more time on their hands

to focus on herd management. VMS is

capable of harvesting 2,000 to 2,500 kg

of milk per day. It is one of the most

energy effi cient automatic systems in

the world as it uses between 15 and

25 kWh per ton of milk. In short, VMS

makes dairy production more profi table,

sustainable, predictable and easier to

manage.

DeLaval shares its Smart Farming™

vision at world dairy forums

During the beginning of 2010 DeLaval

presented the vision of Smart Farming™

at conferences in Tulare, California,

New South Wales, Australia and

Toronto, Canada. The goal is to

achieve a shift in focus from milking

management to global farm profi ta-

bility management. DeLaval has a

number of innovative and automated

solutions to accomplish it. For DeLaval

Smart Farming™ it is not only about

robots; it is about empowering today’s

farmers with the decision tools and

automation technologies that seam-

lessly integrate products, services and

knowledge for better quality milk, herd

management, productivity and profi t.

The link between Smart Farming™

and sustainability is also strong. By

providing smart technology to increase

resource effi ciency and supporting

dairy farmers to do more with less a

big step towards Sustainable Dairy

Farming is taken.

Herd Navigator awarded the Golden

Hoof at the biannual Brussels Inter-

national Agricultural Fair

Since its launch in 2008, DeLaval

Herd Navigator has collected several

awards, among them the Gold Trophy

at the SIA in Paris and the three star

New Product Europe award at

Agromek in Denmark.

The DeLaval Herd Navigator is a

result of unique research developed

by Lattec, in joint venture between

DeLaval International and FOSS. It is

a decision making tool that supports

dairy farmers in managing their herds,

improving cow health, reproduction

effi ciency, and feed control while re-

ducing operational costs. The system

warns about diseases and other devi-

ations before they actually affect the

animal, so the farmer can act upon

them. The Herd Navigator is a corner-

stone of DeLaval’s Smart Farming™

vision with the aim to unlock further

integrated automation possibilities for

the dairy industry.

DeLaval’s voluntary milking system

VMS 2010 proclaimed “Machine of

the Year” at trade fair

The latest release of the DeLaval

volun tary milking system, the VMS

2010, was awarded “Agricultural

Machine of the Year 2010” at the

Polish agricultural trade fair Agrotech

in March 2010.

Up to date the DeLaval VMS has

changed the life of more than 6,000

76



77


the footprint of both dairy farms and

DeLaval’s own supply chain.

Starting from how sustainability has

been integrated into company strategy,

the report moves on to environmental

and social aspects of DeLaval opera-

tions, supported by baseline data

to track performance. Examples of

challenges and opportunities include

how DeLaval listens to customers,

employees and other stakeholder

groups, and acts on that feedback,

how energy and water effi ciency in

manufacturing are being improved,

and how waste volumes are being

reduced.

dairy farmers and DeLaval continues

to make improvements with each new

model, always with cost effi ciency in

mind. The VMS 2010 is more robust

and serviceability has increased. User

friendliness is key and the new model

features a new touch screen and a

new operating system that further adds

to the system’s speed and control.

The option of a steam backfl ush unit

that uses steam to disinfect the VMS

between each milking is another

exciting new feature this year.

DeLaval produces its fi rst Environ-

mental and Social Report

In December 2009, the fi rst Environ-

mental and Social Report was pub-

lished for internal use at DeLaval.

This non-fi nancial report is part of

the Sustainable Dairy Farming initia-

tive, where the purpose is to improve

Environmental and Social Report Agrotech


bacteria and viruses from spreading,”

says Olivier Martin-Schmets, Director

for the Milk Quality & Animal Health

Portfolio.

A triple approach to protection

DeLaval takes a triple approach to

protection by looking at hard surface

cleaning products, rodenticides and

insecticides. Hard surface cleaning

products prevent bacteria and viruses

from developing. Disinfecting the stable

prevents bacteria and viruses from

becoming endemic and from circulat-

ing within the barn. Rodenticides kill

mice, rats and other disease-carrying

animals that might enter the stables.

The biosecurity programme also in-

cludes a very effective fl y control

programme with insecticides that not

only kill the adult fl ies but also makes

sure the larvae never mature. The

products are easy to use and can be

applied by dry scattering, spraying or

watering.

“Fly control and rodent control are

important parts of keeping a good

environment for milk production. Flies

and rats are unpleasant for both the

DeLaval’s launch of an advanced bio-

security programme focusing on pre-

vention rather than reaction has taken

animal health to a new level. Dealing

with diseases also means treating

them, a new area for DeLaval. To meet

the most stringent Good Manufacturing

Practice guidelines for medicinal teat

dip products DeLaval has invested in

the most advanced pharmaceutical

factory the dairy industry has ever

seen for udder health purposes.

Biosecurity is concerned with raising

awareness about the ways disease

can spread and taking practical

measures to minimize the risk of re-

occurrence and spread. Many diseases

come from outside the farm; rodents

and insects are obvious carriers.

Similarly new dairy animals being add-

ed to the herd and visitors to the farm

such as veterinarians, sales reps, and

cattle buyers can also bring disease

with them.

“What we are trying to achieve is to

prevent disease from entering the farm

at all. A clean farm environment is a

key factor to success and we have

products for disinfection to prevent

78

DeLaval’s two-front war with disease

herd and for the farmer and the distress

caused by them signifi cantly lowers

productivity. Since they also spread

disease the treatment of sick animals

adds to production costs. With our

products dairy farmers can both increase

productivity and cut disease related

costs,” Olivier Martin-Schmets says.

An increased need for biosecurity

in dairy farming

In recent years the awareness of human

diseases originating from animals has

grown and the climate change has

also been a catalyst for placing bio-

security high on the political agenda,

not only because of the human risks but

also due to the fi nancial impact. The

cost of diseases such as blue tongue

or foot and mouth amounts to billions.

“Biosecurity has been an issue for

other farmers for quite some time but

it is now becoming increasingly im-

portant for dairy farmers. The increase

in size from small farms with herds of

twenty cows up to dairy farms with

hundreds of cows means they are

becoming more like a swine operation

with high infection pressure due to

PRODUCTS | Corporate presentation 2009/2010


unattainable with the old GMP-plant.

This will enable manufacturing in a

more effi cient manner. DeLaval aims

at providing its customers with the best

quality products at the best price,”

emphasizes Olivier Martin-Schmets.

Adding dairy farming experience

to the pharmaceutical industry

The need for increased investments

comes from a more regulated market.

Fly control products and rodenticides

are under strict regulation and all of

DeLaval’s products are moving towards

animal health and therefore more

considered medicinal products. Many

of them are already treated as veteri-

nary drugs and thus DeLaval has to

meet new standards.

“With the new manufacturing environ-

ment DeLaval has the ability to take

the next step. Entering the pharma-

ceutical industry brings fresh challenges

and fi erce competition, but we can

also source products from others who

might have knowledge unknown to us

– the products themselves are not often

unique. What is unique is DeLaval’s

knowledge of dairy farming. We bring

not only products but also knowledge

about how to apply the products to the

dairy farms. That is why we have

decided to stay in the game and to

become a major player in biosecurity

and animal health for the dairy industry,”

concludes Olivier Martin-Schmets.

the number of animals present in a re-

stricted area. If they get blue tongue or

foot and mouth disease it could be

devastating. Thus, the need to protect

the herd from disease has increased,”

says Olivier Martin-Schmets.

DeLaval takes it to a new level with

investment in good manufacturing

practice

With a multimillion euro investment in

a new GMP-facility, DeLaval has really

stepped up its game. Technically,

Good Manufacturing Practice (GMP)

means a clean room production environ-

ment. For this, one needs total control

of the internal air and the water supply.

The new facility has an air pressure

system to move the air and interlocking

doors. The quality of water is critical

in this kind of environment and there

are fi ve steps to make purifi ed water

from tap water. All procedures are

validated to ensure nothing goes

wrong in the production process.

“The new facility is the most ad-

vanced pharmaceutical factory of its

kind in the dairy industry and it means

we can use technologies that were

79



products can be commercialized they

undergo a host of clinical studies and

70 to 80 per cent of all projects fail the

tests. Obviously those that make it to

the end of the pipeline must be profi t-

able enough to cover the losses from

the failed ones,” says Tim Nicolaї. When a product is registered as a

veterinary product in the EU and other

parts of the world, it can only be sold

on prescription by a veterinarian or

through a wholesale pharmaceutical

company.

“In several countries we need to be

registered as a pharmaceutical whole-

sale company in order to be able to sell

these products. To meet the criteria

means a demand for much more

administrative capabilities. If a product

fails and/or shows adverse reactions

on animals we must guarantee full

traceability to enable a recall of the

whole batch,” says Tim Nicolaї.

New strategies for new possibilities

Legislation differs between continents

but there is hope for consistency in the

law within the EU. It is anticipated that

biocides will be regulated in a similar way

as pharmaceutical products in the near

future. This development opens up

important opportunities. The smaller

players cannot continue to support

their products due to the cost of

main taining regulatory standards –

but DeLaval can.

“Today, we produce 95 per cent of

what we sell. Our R&D and regulatory

departments are in-house and fully

integrated which is a competitive ad-

vantage built up over the years. But we

want to expand our animal health offer-

ing globally and we do not suffer from

the ‘not invented here’ syndrome. We

are looking into channeling generics and

licensing other companies’ products, as

well as their technology. Joint ventures

and acquisitions are also on the agenda.

Our strategy is a combination of

in-house R&D, licensing, joint ven-

tures, acquisitions and initial focus

on generics,” says Tim Nicolaї.When regulations around the globe

are becoming more restrictive it limits

what can be brought to the market

and it also increases the need for

careful documentation.

“Our new GMP-facility in Belgium is

part of our expansion programme.

With our superior distribution we will

not only adhere to the dairy industry

but also distribute to other species.

Our products can be applied to many

more areas, and now we have the re-

sources to support them,” fi nishes

Tim Nicolaї.

Biosecurity and animal health are im-

portant strategic development areas

for the future. The goal is a combina-

tion of in-house research and develop-

ment, licensing and joint ventures with

initial focus on generics.

DeLaval has developed a considera-

ble aftermarket product line which forms

an important part of total revenue.

Animal health products and consuma-

bles in farm hygiene and milk quality

areas contribute a substantial part of

that revenue. Biosecurity products have

recently been added to the offering.

“DeLaval is really forward-looking in

this area. One alternative would have

been to outsource these products be-

cause they are expensive to maintain

for compliance with different legisla-

tions around the world but we chose

to continue our investments and become

a major player in this fi eld,” says Tim

Nicolaї, Vice President Business Area

Aftermarket & Services.

The challenge of a regulated

business

Animal health businesses are mostly

part of the big global pharmaceutical

companies. Their R&D resources sur-

pass that of DeLaval’s by great numbers.

“The complete development process

can take 5 years. Before medicinal

80

DeLaval’s longterm vision forBiosecurity &Animal Health



In 2009, the main focus for DeLaval in

China was to get the message of sus-

tainable farming out to the Chinese

market. Food quality and the dairy

industry are pressing issues for the

Chinese government, which is eager

to see an improvement in standards.

Recently, China has made a substan-

tial fi nancial contribution in support of

modernising the dairy industry by

providing funds and grants. DeLaval

has held meetings with offi cials to

supply information on ISO standards

for milking and cooling.

“We are providing supporting infor-

mation on how to invest and get a

good return on investment. They are

listening to us knowing that we have

global expertise,” says Michael Hughes,

President of DeLaval East Asia.

Another important step was the

launch of extensive training pro-

grammes at the Sino-Swedish Dairy

Centre. The centre is an inter-govern-

mental cooperation between China

and Sweden and will further promote

the sustainable growth of the dairy

industry by improving China’s raw

milk production. Founded in 1984,

the Sino-Swedish Dairy Centre is the

fi rst organisation in China dedicated

to training and product development

within the dairy industry.

“The fact that we have been commit-

ted to China since 1984 gives DeLaval

strong credibility. It proves our genuine

interest in our Chinese counterparts,”

says Michael Hughes.

More than four thousand farmers,

Village Milking Centre (VMC) managers,

and raw milk quality inspectors have

taken part in the wide range of milk

quality training programmes on offer.

The focus on training and modernising

the Chinese dairy industry had an

enormous impact on sales last year.

DeLaval is now an approved supplier.

This entitles our customers to 30 per

cent national funding and 20 per cent

local funding on capital investments

in milking equipment, which means

up to 50 per cent of their investments

are subsidised.

“Orders are increasing by 50 per

cent and hygiene product orders have

increased by 75 per cent over the

past year. This, at a time when the

global dairy industry is down by 20

per cent,” Michael Hughes concludes.

81

PARTNERSHIP | Corporate presentation 2009/2010

DeLaval supports the improvementof raw milk quality in China


82

now on their third service agreement.

InService™ gives them the peace of

mind that comes with the knowledge

that their equipment is well maintained,”

says Gary Lindsay.

Flexibility to meet the requirements

of the local market

The InService™ concept is based on

an understanding of how globalisation

creates demand for a standardised

service whilst at the same time recog-

nising the varying needs of farmers in

different parts of the world.

“We have really managed to get the

message out there both internally and

externally. Our dealers and customers

have seen an improvement and they

have a very positive image of DeLaval’s

new approach to service. Our service

is about being there to meet customer

expectations,” says Peter Jidesjö, Port-

folio Director Services & Original Parts.

In Australia, the launch of InService™

could not have been better timed.

The dairy industry is changing. Since

2000 the number of dairy farms in

some parts of the country has almost

halved. In contrast the number of cows

has remained more or less the same.

The launch of InService™ last year

achieved global status and has been

widely appreciated by customers and

people working with service. With

InService™ many customers have

started to see the benefi ts of prevent-

ative maintenance instead of waiting

for emergency service. Herd health is

improved and the milking plants per-

form at optimum levels. InService™

has given customers peace of mind

and reduced stress levels for service

technicians and the cows. DeLaval

InService™ is here to stay.

Distance is a major challenge in

Australia. Gary Lindsay, National

Service Manager, is located in Brisbane,

1,700 km south of the northernmost

service technician and 4,000 km east

of the westernmost. Individual tech-

nicians often cover large distances so

advanced scheduling is critical to save

time and money for everyone involved.

“Modern farmers need to plan ahead;

they want the kind of preventative

service offered with the InService™

concept. With InService™, the farm-

ers see clear improvements such as

less emergency service, increased

productivity and better udder health.

We have a number of farmers who are

DeLaval goes the extra mile to give customers peaceof mind

With bigger herds, the size and com-

plexity of dairy farms and milking

systems has increased with more

installations needing scheduled service.

Distances from the home offi ce can be

vast, and the technicians can be a long

way from the stock of service spares.

“Not only are the distances huge,

but we also have a wide variety of

farming systems. In some areas the

milking is done 365 days a year and

in others it is seasonal. We have many

grassland based farming systems and

many intensive operations. We have

small swingover plants, large rotaries

and now numerous Voluntary Milking

Systems (VMS). InService™ helps us to

cope with a variety of farming systems

because of its fl exibility to meet indi-

vidual farm and farmer requirements,”

says Gary Lindsay.

A toolbox for service

The InService™ concept turns an in-

tangible phenomenon into a product

farmers can understand and service

technicians can sell. The branded

vehicles are recognised everywhere

and many dealerships have asked to

join the programme. Dealers have to



83

those agreed services. The result is

an improved service delivery for

customers and a better work situation

for technicians.

“We have tried to keep the process

simple and effi cient. It starts with a

formal meeting with the farmer where

the service technician explains how

the service agreement works. The

technician then records all the details

of the equipment on the farm and

prepares a service quotation. Together

they plan a service schedule and

agree the parts required for the next

twelve months. It’s a great thing for

the service technicians and the farmer

to be able to do this twelve months in

advance instead of having to do it

during service call outs and break-

down visits on an ad hoc basis,” says

Gary Lindsay enthusiastically.

Dwayne Neal and his family run

Laureldene Farms in Boyanup, Western

Australia, where they milk about 210

cows in a 20 unit plant with Alpro™

herd management, feeding and Auto-

matic Cluster Removals. Dwayne is

one of many farmers who have seen

the benefi ts of InService™ and he is

now on his third Service Agreement.

“It takes a lot of the worry out of man-

aging the farm. We don’t have to re-

member to order chemicals or parts;

our technician just arrives and does

our servicing when it’s due. We know

that the plant will be serviced and liners

changed at the right time. It also helps

us to manage cash fl ow, because we

know when to expect the maintenance

charges. As a result the plant works

very well. We will defi nitely be renewing

our service agreement again when it

is due,” says Dwayne.

Service has always been a major

strength of DeLaval’s. With InService™,

DeLaval has taken the concept to the

next level.

“InService™ is not just a campaign

but an integral part of DeLaval. To stay

ahead of our competitors and continue

to be a successful company we must

deliver an outstanding service.

InService™ is a commitment to

DeLaval’s customers which goes that

extra mile,” concludes Peter Jidesjö.

meet strict criteria before they can

become part of the InService™

dealer ship team.

The concept is appreciated by the

entire sales organisation. One of the

reasons for this is that colleagues

from all over the world have been part

of the develop ment process.

“Our service technicians are doing

an outstanding job, often working with

customers in tough conditions. When

developing InService™ we took on board

what works in practice. InService™

gives the technicians the tools to

support their service delivery,” says

Peter Jidesjö.

Establishing long term partnerships

between DeLaval and the customer

InService™ is more than just delivering

a service; it is a partnership between

DeLaval and the customer. Before

InService™ there were few service

technicians who focused solely on

providing service. Their time has tradi-

tionally been divided between installa-

tions, servicing and giving workshops.

InService™ provides the opportunity

for technicians to focus solely on selling

service agreements and delivering



84

towards integrating milking, feeding

and barn environment to provide milk

producers with the right tools to run

their farms more profi tably. Through its

Global Customer Project Support Group,

DeLaval reaches out to customers

around the world with the knowledge

and skills that allow the delivery of the

Smart Farming hardware.

“We are already more than just a

supplier of milking solutions, our goal

is to be the company that takes a

holistic approach: we supply integrated

smart solutions at farm level. DeLaval

has a rapidly growing range of innova-

tive and automated solutions geared

to boost dairy business effi ciency,”

says Fernando Mazeris, Portfolio

Director Dairy Management & Nutrition.

DeLaval’s solutions do not just

produce a mass of data leaving inter-

pretation and decision making up to

the farmer. DeLaval has enhanced

decision making tools, its built-in

intelligence systems present straight-

forward action suggestions to the

farmer. One such tool is the Herd

Navigator, launched in 2008. This is

a pro-active management system that

allows full control of the herd’s repro-

duction, lifting heat detection by up to

DeLaval is taking major steps this

year to become a one-stop supplier

able to deliver fully integrated and

automated systems at farm level in

accordance with its strategic concept.

The concept, Smart Farming™, is

aimed at infl uencing and shaping the

future of dairy farming today. The goal

is to accelerate the transition from

stand-alone milking management to

global farm profi tability management.

DeLaval has achieved this by harnessing

emerging decision tools and automa-

tion technologies for better quality

milk and increased profi ts.

“The dairy industry is experiencing a

signifi cant technology shift. As a market

leader we have the skills and the

resources to not only react to the

challenges that milk producers are

facing but also to provide leadership.

Our ambition is to be proactive and

shape the future of the dairy industry,”

says Andrew Turner, Vice President

Business Area Capital Goods.

DeLaval is shifting focus towards

more than just the milking side of

dairy farming. This means supplying

products, services and knowledge

to support the complete range of

farm operations. DeLaval is working

DeLaval accelerates the development of Smart Farming™

98 per cent as well as providing precise

insemination time. It manages early

detection of signifi cant health problems

such as mastitis and ketosis thereby

improving productivity, profi tability,

animal welfare and food safety. By

automatically taking daily samples of

milk Herd Navigator informs, alerts and

advises the dairy farmer of the condi-

tion and health of each individual cow.

“The key is to continuously work on

developing solutions so the same

products can be integrated into different

systems. Currently, we are integrating

Herd Navigator with the DeLaval

Voluntary Milking System (VMS)

which takes us one step closer to our

vision of total integration at farm level.

It is a huge step towards making

Smart Farming™ a reality. There are

other examples such as connecting

the automatic feeding system, Optifeed,

to milking management systems such

as Delpro,” says Fernando Mazeris.

Key factors driving the development

Commercial factors are important

drivers of the transition from milking

management to farm profi tability.

Customers need to be responsive to

the very volatile price of milk in the

INNOVATION | Corporate presentation 2009/2010


85

with greater productivity per cow. It all

creates a farm environment where the

farmer needs to manage high yielding

animals and the best use of resources.

He needs to take appropriate key

actions on a daily basis.

“Dealing with animals – milking,

feeding and handling of manure plus

always considering animal welfare is

not simple. At the same time there is a

shortage of labour since fewer people

want to work at dairy farms. In this

complex environment milk producers

need smart tools to be able to run their

operations effi ciently. For this to work

properly it is important that the tools

really help and do not make it more

complex. Our systems allow smooth

management of bigger herds with less

labour,” says Fernando Mazeris.

A shift in technology but some

things remain the same

Compared to other types of farming,

dairy is far less developed. Dairy

farming is at the beginning of this

process and it is also more complex.

As dairy farmers know, milking is a

very complicated procedure because

by comparison the cow is a pretty

large animal. This makes for a huge

difference in engineering. Still, the dairy

world can expect a few changes.

“On the processing side there has

been a move towards cleaner produc-

tion and higher expectations from

consumers. A signifi cant increase in

automation will result in smaller work-

force. The shift to new technology

based on infrared cameras, diagnostic

tools and algorithms is also key.

Customers’ needs will however remain

the same. Developed and developing

countries will continue to have different

market which means a need to manage

their costs and productivity much

more actively.

“Globally, our customers face an

economic reality that is already being

defi ned by scale and effi ciency. As

well as the commercial aspects there

are the infl uences on our customers’

value chain from consumers with

strong environmental concerns. Political

and economic decisions by either EU

or WTO also have an impact. In short,

our customers need our help to deliver

a better and smarter production environ-

ment. We must develop and provide

them with the tools to achieve just

that,” says Andrew Turner.

Dairy farming has long since ceased

to be just a way of life. Farmers are more

professional than ever and they have

to manage a very complex operation.

The trend is for herd sizes to increase

in many parts of the world together



speed and spin-offs from other indus-

tries can be applied. This will grow fast

and nothing is impossible. Early feed-

back from our Herd Navigator users

has been encouraging. They cannot

imagine going back to their old ways.

It would be like living without the

Internet,” says Fernando Mazeris

enthusiastically.

Success factors

DeLaval has a long tradition of being

the dairy industry market leader and

our customers expect this to continue.

The company’s global position and

strong relationships with many R&D

institutes also allows insight into new

trends and developments. DeLaval

has a strong foundation to build on.

But this also provides challenges.

Going into areas where DeLaval’s

knowledge is peripheral, such as

veterinary diagnostics, requires strategic

initiatives to increase internal expertise

and enable the company to work with

new partners. These trends are global

and competitors are following the

same route.

“Our edge comes from the ability to

deliver on a broad scale to different

types of dairy farmers around the

requirements,” says Andrew Turner.

Advances in technology include the

automation of milking such as the

DeLaval Voluntary Milking System (VMS).

Thanks to the DeLaval Optifeeding

system a major leap in robotic feeding

has also taken place. The system loads,

cuts, mixes and distributes feed auto-

matically, day and night, saving dairy

farmers up to 3 hours labour per day.

Optifeeding also allows farmers to

ensure the correct food balance for

each cow, or group of cows, according

to their stage in the lactation cycle.

The result is improved performance

and signifi cant cuts in feeding and

capital costs. As far as Smart Barn

Environment goes, the possibilities are

endless, from automated ventilation

that responds to weather and climate

to automatic illumination control and

manure handling.

“There is also a soft part. Sensors,

data collection and aided decision tools

for effi cient herd management, com-

bined with the automation, create two

layers for the Smart Barn Environment

– labour and management. This is

probably just the beginning of a

tremen dous development. Sensor-

technology is developing at huge

world. Customer need is paramount

to success. It is about quality of delivery,

pace and, most importantly, after

sales support. We also need to take

responsibility and get involved in the

global debates affecting our industry

so that we can infl uence outcomes.

Our aim is to lead and drive the

develop ment towards sustainable

dairy farming. Put it all together and

we are in a very good place to deliver

and achieve our goals,” concludes

Andrew Turner.


86


When DeLaval launched the Sustain-

able Dairy Farming (SDF) initiative in

2008 it was based on increased

awareness of environmental challenges.

The aim is to reduce the environmental

footprint of farms, while improving

milk production, farm profi tability and

the well-being of the employees and

animals. DeLaval believes this can be

achieved by supporting customers

with technology and services that can

increase resource effi ciency. Or, put

another way, by helping farmers to do

more with less.

According to Mark Blake, Manager

CSR Reporting, DeLaval has laid the

foundation for the integration of SDF

into all company operations.

“We are close to a point where Sus-

tainable Dairy Farming is part of the

way we think. Environmental impacts

are being considered alongside social,

animal welfare and fi nancial ones in

solution development. And since

sustain ability is about continuous im-

provement on all types of farms, we

already have many solutions that can

contribute positively,” says Mark Blake.

Maintaining profi tability while

meeting environmental standards

In Brazil, farmers manage environ-

mental and production challenges.

“Today, our production meets high

environmental standards and in recent

years we have invested time and fi nan-

cial resources to make this happen.

We are aware of the need to use renew-

able natural resources and at the same

time improve our own competitiveness.

For me, Sustainable Dairy Farming

means producing the maximum milk

yield while using the least possible

resources,” says Mauricio Silveira

Coelho, Santa Luzia farm, Passos, Brazil.

Sustainable Dairy Farming is a busi-

ness development area for DeLaval,

since a more sustainable farm should

be more profi table. For customers, it

is also important how DeLaval acts and

what the brand stands for. In order to

walk the talk, a project was started to

measure and track the environmental

and social impact of the company’s

own operations.

“Sustainability is all about how we

use resources, whether environmental,

social or economic, and this is how

we are looking at our own supply

chain. Due to the nature of our industry,

livestock resources/animal welfare

need to be considered in the same

way on farm. Using natural resources

to produce food is vitally important, but

it is also important how we do so. At

DeLaval, we have our own scientifi c

committee to dig deeper into what is

known in the scientifi c community, and

we are also supporting industry and

customer forums, such as the IDF

World Dairy Summit, to discuss and

fi nd new solutions,” says Mark Blake.

Sustainable Dairy Farming aroundthe world

87

SUSTAINABILITY | Corporate presentation 2009/2010


these solutions exceeded our expecta-

tions and since we want to continue

working with Sustainable Dairy Farm-

ing we are now looking at other solu-

tions such as vacuum pumps,” says

Masaru Wada, Wada farm, Tochigi,

Japan.

Energy is also a big issue at the

Bossgården organic farm in Falköping,

Sweden run by Lars-Olof Josefsson.

“Working according to organic

standards suits our farm well because

the land we have does not need artifi -

cial fertilizers, an issue of concern for

consumers. We are now focusing on

saving electricity and reducing heat

loss. We currently use a number of De-

Laval SDF solutions that contribute to

saving both time and energy. Using

VMS also frees up time for other

projects. With a DeLaval vacuum

pump and heat recovery system we

save energy and are also able to use

the excess heat to warm up the

house. We are very pleased with the

equipment and in the future we would

like to become more energy indepen-

dent, combining solar energy, heat

recovery and biofuel,” says Lars-Olof

Josefsson.

Energy, water and feed – the initial

drivers for Sustainable Dairy Farming

To support customers in their drive for

sustainability, an important step is to

see the farm as a system. Reducing

the environmental footprint often starts

with energy, water and feed – factors

that are also signifi cant cost drivers.

DeLaval has a range of solutions to

support effi ciency gains in these areas.

“Energy, water and feed are of great

importance on our farm and they are

all linked together. Using DeLaval heat

recovery saves a lot of energy. Re-using

warm water as drinking water increases

the cows’ fl uid intake resulting in a

signifi cantly higher feed intake and

higher milk yield. In 2009 the demand for

DeLaval’s customers are the

inspiration for new solutions

For Mauricio Silveira Coelho in Brazil,

DeLaval has always been a company

willing to invest in the research and

development of new products. More

recently, he has also noticed a greater

concern for reducing the environmental

impact of milk production. He believes

more can be done to bring benefi ts to

both dairy farmers and to the environ-

ment. His farm uses the plate cooler

and the heat recovery combined with

the cooling tank compressor. This has

boosted profi tability through reduced

power consumption and greater effi -

ciency in the cleaning process.

Expenses for detergents have also

decreased, but he wants more.

“In relation to sustainability, I think

it is necessary to develop appropriate

solutions for the treatment and proper

use of manure generated by cattle,

which for us would increase soil fertility.

Another desired line of research would

be to develop products that optimize

the rumen environment, by reducing

energy losses and emissions from the

greenhouse gas, methane,” says

Mauricio Silveira Coelho.

88



Customer demand for more sustaina-

ble solutions will continue to guide

product and service development. Sus-

tainability is not something that can

be achieved through one solution, but

through planning and improvement in

all areas.

“I think even more will be achieved

in the future. Three years ago I suggested

the idea of harnessing the heat

genera ted by vacuum pumps to heat

up water for cleaning processes,

resulting in greater effi ciency and

economy for the whole farm. DeLaval

took it one step further by using the

heat produced by the cooling tank

compressors. It makes me wonder

how much more can be developed,”

says Mauricio Silveira Coelho.

Balancing different demands

Being a global player means identifying

common challenges and applying

solutions to a local context.

When DeLaval asked customers how

they rank different environmental

challenges, more than one in fi ve stated

that water and energy will strongly

impact their business over the next

three years. As resource pressures

increase, this number is expected to rise.

“Long-term, resource effi ciency and

the ethical aspects of what we do are

likely to become more important,

whether supporting farms in Japan,

Sweden or Brazil. Working out how to

continuously improve is of course a

challenge for us all – but it is a chal-

lenge that both we and many of our

customers have happily accepted,”

fi nishes Mark Blake.

89



TETRA LAVAL

TETRA LAVAL INTERNATIONAL S.A.

CASE POSTALE 430

70, AVENUE GÉNÉRAL GUISAN

CH-1009 PULLY, SWITZERLAND

TEL +41 21 729 22 11

FAX +41 21 729 22 88

WWW.TETRALAVAL.COM

TETRA PAK INTERNATIONAL S.A.

CASE POSTALE 446



TEL +41 21 729 21 11

FAX +41 21 729 22 44

WWW.TETRAPAK.COM

DELAVAL INTERNATIONAL AB

P.O. BOX 39

GUSTAF DE LAVALS VÄG 15

SE-147 21 TUMBA, SWEDEN

TEL +46 8 530 660 00

FAX +46 8 530 689 00

WWW.DELAVAL.COM

SIDEL GROUP

AVENUE DE LA PATROUILLE DE FRANCE

OCTEVILLE SUR MER

BP 204

F-76053 LE HAVRE CEDEX, FRANCE

TEL +33 2 32 85 86 87

FAX +33 2 32 85 81 00

WWW.SIDEL.COM


TETRA LAVAL

TETRA LAVAL INTERNATIONAL S.A.

CASE POSTALE 430



TEL +41 21 729 22 11

FAX +41 21 729 22 88

WWW.TETRALAVAL.COM

TETRA PAK INTERNATIONAL S.A.

CASE POSTALE 446



TEL +41 21 729 21 11

FAX +41 21 729 22 44

WWW.TETRAPAK.COM

DELAVAL INTERNATIONAL AB

P.O. BOX 39

GUSTAF DE LAVALS VÄG 15

SE-147 21 TUMBA, SWEDEN

TEL +46 8 530 660 00

FAX +46 8 530 689 00

WWW.DELAVAL.COM

SIDEL GROUP

AVENUE DE LA PATROUILLE DE FRANCE

OCTEVILLE SUR MER

BP 204

F-76053 LE HAVRE CEDEX, FRANCE

TEL +33 2 32 85 86 87

FAX +33 2 32 85 81 00

WWW.SIDEL.COM

Date

2010-0

4 B

YS

TE

D / G

RAY

LIN

G / M

alm

oe, S

weden

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