High expectations for 2007 Record growth for alufoil

A record year for aluminium foil in 2006 saw shipments soar by 3.7 per cent to 870,300 tonnes compared with 839,200 tonnes in 2005, to give an exceptional growth rate above GNP in the Euro region (+ 2.7 per cent).

Tonnage based growth was driven by all sectors with thicker gauges, mainly used for the manufacture of containers and technical applications, rising by 7.8 per cent; and thinner gauges which are used mostly in flexible packaging growing by 2.9 per cent.

EAFA president Fred McDonogh, Head of Business Unit Foil, Hydro Aluminium, said, "The figures show that aluminium foil is growing in popularity across all applications and we expect this excellent performance to continue during 2007."

McDonogh also raised a note of caution: "The continued high price of raw materials is causing concern among customers. However, the aluminium foil rollers are co-operating closely with customers to continuously improve competitiveness of alufoil based packaging solutions through product innovation, as well as through process and supply chain optimization."

The final quarter of 2006 provided even more reason for optimism in the sector with a rise of 5.3 per cent to 211,800 tonnes compared with the final three months of 2005 (201,100 tonnes). Thicker gauges were up by 17.8 per cent and thinner gauges by 3 per cent. Exports outside the EAFA region were stable on a high level during 2006. The figures round off a very successful year for EAFA which now accounts for about 98 per cent of the European foil market and represents nearly all countries in Europe, including Russia and Turkey. The number of new products that feature innovative uses of alufoil-based packaging as shown in EAFA's packaging award Alufoil Trophy indicates a healthy future for the material.

Approximately three quarters of aluminium foil is used in packaging where its characteristics of strength, formability and barrier properties have made it an essential part of many flexible packaging and container applications.

Other uses of aluminium foil include automotive and other heat exchange components, insulation material and other industrial applications.

The European Aluminium Foil Association is the international body representing companies engaged in the rolling and rewinding of alufoil and in the manufacture of alufoil containers and of all kind of flexible packaging. It has more than 120 members include companies in Western, Central and Eastern Europe.

* EAFA region covers Armenia, Bulgaria, Czech Republic, EU15, Hungary, Norway, Russia, Slovenia, Switzerland and Turkey.