German aluminium packaging producers reported good activity in financial 2011, with a total production volume of 401,300 t. Although that is 1% less than in 2010, the decline, “had more to do with technical factors,” said Christian Wellner, managing director of Germany’s aluminium industry association Gesamtverband der Aluminiumindustrie (GDA, Düsseldorf; www.aluinfo.de). He added that as a result of a trend towards lighter packaging and thinner foils, deliveries were smaller.

Beverage can production rose in 2011, GDA said, a development largely driven by discount supermarkets that have started to include the cans in their portfolio again. Headed in 2012, GDA members are confident that this trend will continue as consumers increasingly opt for beverage cans, especially in the segments of beer and energy drinks. Can production has also received a boost by the ban on glass containers at large events including the European Soccer Championship and the Olympic Games.

Last year’s production figures reflect the strong demand from the main sales markets of food, cosmetics and pharmaceuticals, GDA pointed out, adding that aerosol cans were particularly popular, partly as a result of the ongoing trend of forming and embossing the cans. Production levels achieved a record high last year, the association said. Business in aluminium tubes used for non-prescription medication also rose, although European demand for aluminium foils and thin strips dropped slightly amid material reductions.

Although demand dropped slightly at the beginning of this year amid the eurozone’s weak economy, GDA members said capacity utilisation levels remained good, especially for companies focused on export. Overall aluminium packaging manufacturers are confident about 2012. “We continue to expect stable development because forecasts for the major markets of aluminium packaging are at the levels of the previous year. However, the periods being planned at the moment are shorter. So our outlook only extends to roughly mid-year,” said GDA chairman Manfred Mertens. In fact, GHDA said that the slight decline in orders at the beginning of the year actually had benefits, including a return to normal delivery times.

Despite this positive outlook, the association is concerned about rising energy, coating and printing inks costs as well as an increase in the sector’s wages, adding that the competitive environment will make it increasingly difficult to pass these costs on.