Boxmore Plastics: Leveraging on the strategic geographic location of Mauritius

Specialised in the production of preforms, Boxmore Plastics is a subsidiary of South African-based Boxmore Packaging. The latter chose to have facilities in Mauritius in order to benefit from the country’s advantages as a member of several regional trade groups.

Incorporated in South Africa in 1995, Boxmore Packaging is a diversified plastic packaging business supplying PET preforms, bottles, plastic containers, jars and closures to the beverage, pharmaceutical, home care and personal care industries within South Africa and beyond. With manufacturing facilities in Harrismith, Johannesburg and Cape Town (injection moulding and bottle blowing), its operations are well positioned to service the markets with an increasing array of products. Boxmore Plastics (Mauritius), a wholly-owned subsidiary of Boxmore Packaging, is located in the Freeport Zone 5, Mer Rouge, Port Louis and is specialised in the production of preforms.

Boxmore in general is 100% South African-owned and operated. The major shareholder, Investec Bank, first bought a share in the company in 2009 as part of a leveraged buy-out from Chesapeake Corp. In 2010, Investec increased its share, held through its private equity division principled investments and now holds two seats on the Board as Non Executive Directors. The remaining shareholding is held by the management and a staff trust in which each and every member of staff has an interest.

David Drew, Commercial Director of Boxmore Packaging, indicates that the company’s PET preform production facilities in Port Louis and Lusaka, Zambia, complement the already significant export business with the benefits of local and regional manufacturing. The strategic idea behind the presence of facilities in Mauritius being to be able to benefit from the geographical location of the latter, since the company qualifies under a number of regional trade groups including the Southern African Development Community (SADC), the Commission de l’océan Indien (COI) and the Common Market for Eastern and Southern Africa (COMESA), of which the country is a member. Boxmore Plastics supplies PET preforms to the majority of the Mauritian market and boasted a profit before tax of Rs 20.34 million in 2014.

Although based in South Africa, Boxmore Packaging is clearly focused on meeting the needs of its growing customer base across the African continent and Indian Ocean islands. Best known for its expertise in PET products, with the addition of Boxmore Plastic Closures (previously the plastic closure division of MCG Industries) and Boxmore Speciality Plastics (previously Lapack), the organisation can today meet the needs of almost any project as far as rigid plastic packaging is concerned.

Through its product-focused manufacturing divisions, Boxmore Plastic Closures, Boxmore Plastics South Africa and Boxmore Speciality Plastics, the company can also assist with the design and manufacturing of a customised solution or point to the most suitable solution from a range of standard products. Boxmore also beneficiates from the support of international technology partners: Husky, Kortec and Sidel on the PET side, Closure Systems International, SACMI and Andre Zalkin on the closure side, and Engel and Aioki at Speciality Plastics.

The company, David Drew pursues, has been of service to a variety of businesses since its inception. These include brands such as Appletiser, Coca-Cola, Valpre, Aquelle, Powerade, L’Oréal, Johnson & Johnson, Adcock Ingram and Smirnoff. A new facility in Johannesburg has been added to the group as a result of the acquisition of the plastic closure division of MCG Industries, one of the pioneers in the plastic closure market through their association with Closure Systems International.

“The location of our manufacturing operations enables us to supply both the South African and African markets and qualifies us under a number of regional trade groups. Exports constitute a significant portion of sales since they concern 26 African countries,” states David Drew.

As one of the largest converters of PET resin in Southern Africa, Boxmore Packaging’s South African plastics division focuses on the supply of preforms to the region’s beverage industry and to its clients on the African continent. A diverse customer base has required Boxmore to develop a wide range of preforms in various neck finishes and standard colours. Although a variety of standard colours are available, preforms can be produced in a range of hues – from tints to opaque – and can even be matched to specific colours, provided that the quantity required is in excess of 1 million units. Owing to the liquid colour process, a myriad of colours and finishes can be achieved, including gold, silver and pearl.

With regards to packaging, for local customers (either in South Africa or Mauritius), preforms are supplied in returnable cages. On the other hand, for export, they are packed in sturdy boxes that allow for stacking at least three high in moderate humidity climates. The company does not have any expansion plans in the Mauritian market for now and intends to concentrate on the efficiency of its existent business model.