JANUARY/FEBRUARY 2014 | $50 www.canadianpackaging.com Steve Cousins, Stew Cardiff, General Manager, President, Norampac – St. Marys Shepherd Gourmet Dairy Jim Burlingham, Sales Manager, Norampac – St. Marys Safety IN NUMBers Out-of-the-box thinking gives progressive dairy a keen food safety edge Story on page 19 2014 PACKAGING MACHINERY SPECIFICATIONS MANUAL Publication mail agreement #40069240. Begins on page 31 Tough application, ingenious solution Exactly Product life cycles keep getting shorter. Products and packages get more complex. Supply chains and customers intensify their demands. Whether you build, buy or implement packaging machinery, you need a way to react as quickly as possible. Rexroth, your expert partner for automation in packaging processes, provides the flexible system solutions you need. Our technologies and efficient engineering tools enable more productive machines, faster changeovers, reduced footprints, and peace of mind. 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Hence it is really bewildering sonable US90-cent level as this issue of Canadian Stephen Dean • (416) 510-5198 when companies who should by all rights know Packaging was going to press, citing high currency [email protected] better make hasty ill-timed decisions that with the to add some sort of intellectual legitimacy only EDITOR George Guidoni • (416) 510-5227 benefit of hindsight look more short-sighted with seems to add insult to injury. [email protected] each passing day. According to the company’s own press release, FEATURES EDITOR A case in point: the recent decision by Toronto- the Penetanguishene operation was showing Andrew Joseph • (416) 510-5228 headquartered packaging products group CCL “improved results in 2012 and 2013” when the [email protected] Industries to pull the plug on the company’s Canadian dollar was flirting with historically high ART DIRECTOR Stewart Thomas • (416) 442-5600 x3212 aerosol canmaking operation in Penetanguishene, exchange rates, so it would not be a stretch to sug- [email protected] Ont., which according to CCL has been losing gest that those improvements would continue to PRODUCTION MANAGER money since 2009 due to the high Canadian dollar firm up well into 2014 just based on the currency Cathy Li • (416) 510-5150 and the lack of major CPG (consumer packaged devaluation alone. [email protected] goods) end-user customers nearby. And even at that, the whole high dollar argument CIRCULATION MANAGER Anita Madden • 442-5600 x3212 “Because our operation in Ontario now exports is just so 2Oth Century to begin with. In this day [email protected] its entire output into the U.S., the distance from and age, a truly competitive Canadian manufac- EDITORIAL DIRECTOR key customers and the steep exchange rise of the turing enterprise should be able to hold its own Lisa Wichmann • (416) 442-5600 x5101 [email protected] Canadian dollar over the last decade combined to even with the Canadian dollar being at par with significantly impede its competitiveness,” CCL its U.S. counterpart—it’s a basic requirement for EXECUTIVE PUBLISHER Tim Dimopoulos • (416) 510-5100 Industries president Geoffrey Martin explained in the post-NAFTA (North American Free Trade [email protected] a brief press release, adding that all of the plant’s Agreement) manufacturing skillset. production will be shifted to the firm’s CCL As it is, CCL Industries is recording a one- BIG MAGAZINES LP Container aerosol factories in Hermitage, Pa., time $11 million restructuring charge related to Vice-President of Canadian Publishing • Alex Papanou and Guanajuato, Mexico, by mid-2015. the plant’s closure and financial assistance to the President of Business Information Group • Bruce Creighton While being physically close to customers is affected employees. In addition, it plans to spend always a good idea in principle, geographic dis- another $25 million in various infrastructure tance is not in itself an overwhelmingly compel- upgrades at the Hermitage and Guanajuato facili- HOW TO REACH US: ling argument for making far-reaching investment ties to accommodate the added production trans- Canadian Packaging, established 1947, is published monthly by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. decisions in the context of today’s globally operat- ferred there from Penetanguishene. 80 Valleybrook Drive, North York, ON, M3B 2S9; Tel: (416) 442-5600; Fax (416) 510-5140. ing supply chains. It’s just a hunch, mind you, but something tells And it would bother us less if the factory in ques- us that for a fraction of that combined sum, the EDITORIAL AND ADVERTISING OFFICES: 80 Valleybrook Drive, North York, ON, M3B 2S9; tion was a division or subsidiary of some U.S.-based Penetanguishene plant could have done sufficient Tel: (416) 442-5600; Fax (416) 510-5140. corporation, but the fact that CCL Industries has infrastructure and capital upgrades of its own to SUBSCRIBER SERVICES: To subscribe, renew your subscription or to never been overtly shy about its Canadian roots and help it overcome whatever competitive shortcom- change your address or information, contact us at 416-442-5600 or 1-800-387-0273 ext. 3555. origins, dating back to 1951, makes the announced ings it may have been struggling with that ultim- closure seem an exceptionally cold-hearted move— ately made it choose the easiest, and yet a highly SUBSCRIPTION PRICE PER YEAR (INCLUDING ANNUAL BUYERS’ GUIDE): Canada $72.95 per year, Outside Canada $118.95 US per year, especially for the plant’s 170 employees. regrettable, way out. Single Copy Canada $10.00, Outside Canada $27.10. Canadian Packaging is published 11 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. JANUARY/FEBRUARY 2014 | $50 ©Contents of this publication are protected by copyright and must not be COVER STORY www.canadianpackaging.com reprinted in whole or in part without permission of the publisher. DISCLAIMER: This publication is for informational purposes only. The content Steve Cousins, Jim Burlingham, General Manager, Stew Cardiff, Norampac – St. Marys Sales Manager, President, and “expert” advice presented are not intended as a substitute for informed 19 Safety In Numbers by Andrew Joseph Norampac – St. Marys Shepherd Gourmet Dairy professional engineering advice. You should not act on information contained Leading Canadian corrugated producer leaving nothing to chance in helping fast-growing SAFETY IN in this publication without seeking specific advice from qualified engineering NUMBERS Out-of-the-box thinking gives progressive professionals. Canadian Packaging accepts no responsibility or liability for dairy a keen food safety edge dairy products manufacturer uncover promising new market pastures. Story on page 19 claims made for any product