Turkey’s Farmamak bridges packaging markets in Europe and developing countries

By Jim Johnson
Senior Staff Reporter

Published: November 18, 2013 10:37 am ET
Updated: November 18, 2013 10:39 am ET

Related to this story

Topics Packaging, Extrusion

CHICAGO ‒ Plastics packaging maker Farmamak is used to being in the middle.

Not only is the firm situated in Turkey, a country that’s part of two continents. But the company also makes a living by putting itself between behemoths on either side of its business – raw material suppliers on one side and food companies on the other.

“As a middleman between the customers and the raw material producers, we need to understand both sides and make sure we find out solutions to make sure we can connect those two together,” Kurt Kuruc, Farmamak general manager, said at the recent Global Plastics Summit in Chicago.

With raw material costs accounting for 65-70 percent of the company’s costs, Farmamak is always looking to make improvements in its packaging offerings to save money or add value.

The company also has found that it doesn’t have to be the very first ones in the market using the very latest technologies. But that doesn’t mean the company is sitting on its hands, either.

“These days, it seems to enter a market late has an advantage because you can invest in new technology, which comes slightly cheaper. And with that new technology, you can produce high quality material and also more efficiently. This is what we have realized in Turkey in the last 15-20 years,” he said.

Waiting for things to settle out when it comes to new technology also allows the company to continually keep up with changes that allow it to remain competitive in a very competitive field, he said.

“So we’re lucky because we entered the packaging market as a country very late. But when we entered, we entered the market with new technology, which enabled us to be able serve one of the toughest markets in the world, the European market,” Kuruc said.

Farmamak, a unit of food and beverage company Yildiz Holding, has been able to take those experiences learned by selling into Europe and apply them to developing markets.

“Selling into Europe is a difficult task because there are a lot of standards and environmental concerns,” Kuruc said “Thus, you can learned a lot from that geography. And when you go to the east or north or south, there are newly developing markets, so you can really apply what you have learned from Europe, one of the most difficult markets, into these newly developing geographies.”

Despite the fact that the packaging industry faces the squeeze from both raw materials suppliers and customers, companies have found a way to succeed in recent years by adding value to their offerings, he said.

Kuruc, during his presentation, pointed to changes in different types of food packaging that lessened weight, added dust resistance and improved packaging clarity through an anti-fog surface treatment as examples of adding value.

“Different products are trying to find new ways to protect their positions in the market. And it looks like this is going to be a never-ending story,” he said.

Farmamak also is not married to one particular type of plastic in its packaging offerings, so having that flexibility allows the company to develop products for customers without a built-in bias toward one material or another.

“We have an objective position when we are marketing our products,” Kuruc said. “And having an objective position when you are marketing is very important. Because then you are in a position to understand your customer. And you don’t simply force your products into them.”

“You try to understand and make sure you find correct material in your portfolio to serve them properly,” he said.


Comments

Turkey’s Farmamak bridges packaging markets in Europe and developing countries

By Jim Johnson
Senior Staff Reporter

Published: November 18, 2013 10:37 am ET
Updated: November 18, 2013 10:39 am ET

Post Your Comments


Back to story


More stories

Image

Bubbles add some flair to 'Plain Jane' PET bottles

December 17, 2014 1:05 pm ET

Ron Puvak and the folks over at Plastic Technologies Inc. see big things coming from some very tiny bubbles.    More

Image

Amcor unveils hot-fill PET jars that accept metal lug closures

December 17, 2014 8:47 am ET

Amcor Rigid Plastics has developed hot-fill PET jars that accept metal lug closures — which the company claims is a first for food packaging.    More

Image

Ohio's PTI offering PET services in Southeast Asia

December 11, 2014 12:31 pm ET

Plastic Technologies Inc. is partnering with Hemetek Techno Instruments of Mumbai, India, to provide PET package evaluation services in Southeast...    More

Image

Blow molder Pretium Packaging buying Tri-Delta Plastics

December 10, 2014 6:28 pm ET

Blow molder Pretium Packaging LLC has purchased Tri-Delta Plastics, in a deal that extends Pretium into new markets and product categories.    More

Mold maker considering future Mexican service center

December 10, 2014 12:42 pm ET

Canadian mold maker StackTeck Systems Ltd. of Brampton, Ontario, is optimistic enough about the Mexican market to be thinking about setting up a servi...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events