The purchase of a Kiefel thermoformer with punching capabilities will equip Leeds Vacuum Formers to fill some holes in the packaging market. Lynda Searby looked into why the company needed to invest in new equipment.

When To be installed August 2019

What Kiefel KMD 78 Speedformer thermoforming machine

Why To increase capacity and acquire punching capabilities that will enable entry into new packaging markets

When the plastics backlash hit in 2018, thermoforming specialist Leeds Vacuum Formers (LVF) braced itself for a slowdown in sales.

Prior to that, the company had been on a steady growth trajectory, building turnover by approximately 10% year on year to £7m in 2018 and maintaining profitability. But the anticipated slump never arrived; instead LVF enjoyed impressive sales, which managing director Nigel Coates attributes to the proactive approach it had already been pursuing to reduce the environmental impact of its products.

“We have taken every opportunity over the years to promote the message that sustainability is important to us. We were one of the first to use rPET materials, for many years we’ve recycled close to 100% of all waste we produce; and now we offer Breakdown PET as a manufacturing option. Consequently, our green credentials were quite well established and we were able to position ourselves as a supplier that was already doing what customers were asking of us.”

So rather than losing business, LVF has seen an upturn in new business in the last 12 months, experiencing particularly strong demand for protein trays from the meat industry for mince, burgers, meatballs etc, as well as from the confectionery and produce sectors.

With its workload steadily increasing, in January 2019, LVF took the decision to invest €600,000 in its fifth Kiefel KMD 78 Speedformer thermoforming machine.

“There are lots of cheaper alternatives – we could have gone for a very good Turkish machine that is a close copy for 70% of the price of a Kiefel – but once you have made a commitment it is difficult to move away from that machine type. Flexibility is extremely important to us and having a bank of identical machines enables us to interchange the tooling and move production onto a different line at very short notice,” says Coates.

“That is the reason we continue to buy Kiefel. The reason we started with Kiefel in the first place was because the KMD 78 had a very good and proven track record and offered everything we needed for a reasonable price.”

In contrast to the three-station machines LVF had purchased in the past, this latest investment is a four-station model, with a punching facility in addition to forming, cutting and stacking.

“This extra station will allow us to automate the hole punching operation on existing products as well as enabling us to enter new areas of the market, in particular fruit punnets with ventilation holes and drinking cup lids with sip holes,” explains Coates.

But rather than being just another ‘me too’ manufacturer of cup lids, Coates says LVF is coming at the market from an environmental perspective.

“Historically drinking cup lids are usually made from High Impact Polystyrene and as such are unlikely to be recycled,” says Coates. “However, in keeping with our green philosophy we intend to offer alternatives produced in both rPET and Breakdown PET to end-users with similar environmental concerns.”

Ventilated fruit punnets are the other market LVF is hoping to break into. While Coates doesn’t think it is likely that there will be a wholesale shift to the use of Breakdown PET because of the price premium, he does believe that there are niche market opportunities.

“We believe there are opportunities in the UK for further production of fruit punnets. Pressure on the market to operate sustainably is only going to increase and I can’t see that importing punnets from, for example Italy, is the most environmentally friendly way to go about packing soft fruit.”

For the time being though, entry into these new markets is a goal rather than a given, so for the majority of its working life, the new Kiefel thermoformer will probably be doing “more of the same”, says Coates.

The four-station thermoformer is expected to be on-site and up-and-running by August.

Currently, LVF’s £7m million turnover is produced by its four Kiefel machines, so Coates expects the investment in the new machine to enable an increase in turnover of £1.5-1.75m.

The company’s 24/5 shift pattern currently allows some room for manoeuvre to cope with seasonal fluctuations. During the summer months demand for BBQ and salad related packaging can increase three to four fold – a workload that LVF can manage without any impact on delivery times or customer service.

“Investing in a fifth thermoformer with additional capabilities will provide assurance for our future growth,” says Coates.

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