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▲ Alvaro Silva, Head of Group Procurement
Although First Circle Packaging( First Circle) has a heritage dating all the way back to 1945, the plastic packaging company has operated under various names over the years and has more recently undergone a mammoth transformation – a rebrand that marked the beginning of a new strategic direction.
After facing major financial challenges in 2018, First Circle was acquired by Grey Bull Capital the following year – when it was known as Nampak Plastics Europe – and it now focuses deliberately on innovation, cost control, diversification and operational efficiency; pillars that Alvaro Silva, Head of Group Procurement, describes as being“ fundamental in returning the business to profitability and building a stronger, more resilient organization.” He explains the first step in turning the business around was to align prices – a decision that saw many clients remain loyal.“ Most of our customers understood this and stayed with us,” Alvaro adds.“ We also had to control costs more efficiently. We centralized procurement and began tendering across all categories from raw materials and transport to energy and packaging.
“ Perhaps most importantly, we diversified. We had been restricted to one industry – dairy – and were primarily making packaging for the dairy sector. We decided to expand both our product range and the industries we served, so while we continue to manufacture a full range of milk bottles, we have significantly expanded our portfolio into other sectors, including home care, automotive, cosmetics, and agriculture.” Today, these newer industrial sectors are the fastest-growing parts of First Circle, and it produces over 200 different SKUs.“ At our core, we remain a specialist blow molding manufacturer, working with materials such as HDPE and PET, but with increased flexibility and capability to meet a much
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