Detmold buys local co to expand SA presence
22 June 2016
South Australian packaging giant Detmold has made its first local acquisition in more than a decade to expand its manufacturing base, adding one more facility and 45 new staff to its books.
Family-owned Detmold has bought Custom Cartons, also a family business established in 1984, to expand its manufacturing footprint in the state.
Custom Cartons’ facility based at Brompton will be part of the Detmold Group, which manufactures bags, wraps and other bespoke packaging for customers at its facility, also in Brompton.
A significant player in the competitive Australian packaging industry, Detmold supplies to most of the fast-food giants, cafes, supermarkets and the retail sector across the country and exports to New Zealand, Singapore, China, US and Europe.
Detmold Group chief executive Rodney Detmold said he was pleased to secure the employment futures of the entire Custom Cartons workforce and build on its commitment to Australian manufacturing.
“From a strategic perspective, it is a welcome addition to our group in terms of number of customers and complimentary manufacturing capability,” Mr Detmold said.
“Cartons are a growing segment for us,” said marketing and innovation manager Tom Lunn.
The Adelaide-headquartered group established in 1948, also owns and operates manufacturing facilities in China, Vietnam, Indonesia, Philippines and South Africa and has an annual turnover of about $375 million.
Another facility is being opened in India later this year.
The group — comprising five entities, Detpak, Detmold Packaging, Paper-Pak, Detmold Packaging (Manufacturing) and Detmold Specialty Packaging — employs 2500 staff globally with 250 of them in Adelaide. The Custom Cartons transaction takes that number closer to 300.
Mr Lunn did not disclose the purchase price but said the group expected a significant boost to sales and in the number of customers.
“We are also looking at strategic acquisitions with Detmold growing strongly,” he said.
Its in-house innovation centre, LaunchPad, at Brompton has just hired new industrial designers for customers to approach Detmold directly to design custom packaging.
“Australia remains our core market although we are now selling in 20 countries.
“We have spent in excess of $5 million over the past three years at Brompton to expand our capability and bring in new machines and equipment.”
While the high cost of labour and red tape within the Australian manufacturing sector presented its challenges, the blend of making products locally and in low-cost overseas locations had helped sustain operations here.
Source : adelaidenow.com.au