DSL Packaging's Steve Johnston with Udo Schütz
Industrial packaging leader Schütz GmbH & Co has acquired a majority interest in Australian based DSL Packaging. The announcement, made from Schütz headquarters in Germany this week, represents an important milestone for both companies who have, up until now, been connected through a licensing agreement awarded by Schütz to DSL in 2001.
The decision by Schütz to invest in DSL Packaging coincides with the Australian company’s recent moves into South East Asia, where its first manufacturing facility is currently under construction in Nilai, Malaysia.
The new operation will service the growing demand for Schütz IBC’s (intermediate bulk containers) and drums in the region.
DSL managing director Steve Johnston says the new company partnership will allow Schütz and DSL to fast track the expansion plans into South East Asia.
“This is a very exciting step for DSL as the business commences a new chapter of growth in the Asean region, with the proposed opening of our new factory near Kuala Lumpur in April 2006,” says Johnston.
“Having the full support of Schütz and the strength of that name as we expand into these new markets will be an undeniable advantage. We expect customers will greet this news very positively.”
He says the new agreement will also provide DSL with greater opportunities for ongoing product and market development in Australia, New Zealand and South East Asia.
Johnston will continue as managing director with an ongoing significant financial interest in the new company, together with Kingsley Brown, Andrew Gill and other key employees, who will remain fully committed to the long term development of the DSL business.
The renowned Schütz IBC’s or intermediate bulk containers hold around 1000 litres, measure approximately one cubic metre and are specifically designed for the packaging of liquids.
More efficient than the traditional 200 litre steel drum, the units consist of a high density polyethelene inner bottle, surrounded by a galvanised steel cage, which is mounted on either a metal, plastic or wooden pallet for easy handling. The units were designed by Mr Udo Schütz, founder and existing owner of Schütz group.
Schütz COO Roland Strassburger, says the new venture was the 20th Schütz subsidiary worldwide, reflecting the growing popularity of Schütz industrial packaging products and services globally.
“We see this agreement as a mutually beneficial partnership between our two companies which will ultimately offer a ‘one-stop shop for the many multi-national users of our products,” says Strassburger.
“We are delighted to be more closely associated with DSL through this partnership, given the excellent working relationships we have cultivated between us over the years.”
DSL Packaging currently has operations in Melbourne, Perth, Sydney, Brisbane, Auckland, Jakarta, Singapore and Kuala Lumpur. T
he new Schütz-DSL partnership will encompass all countries within the Asean region including Australia and New Zealand, as part of the new agreement.
