A major aluminum foil manufacturer is set to boost its aluminium foil market by 20 to 30 per cent over the next three years, according to a new report.
The aluminum foil industry was expected to expand by 20-30 per cent by 2018, according a report from the Australian Business Spectator, which found that up to 10 per cent of the aluminium foil industry in the Australian market could be in jeopardy of closure.
The report’s authors say there’s a good chance the aluminum foil boom could be over by 2020.
The article said the aluminium company Todmorden is the biggest producer of aluminum foil in Australia, with over a million tonnes produced annually.
But the report says Tod-mord is on track to lose $1 billion in annual production in 2018 due to the impact of the global aluminum foil trade sanctions.
“While the industry has a strong reputation for innovation and quality, there are concerns about the industry’s sustainability in a climate of increased global demand,” the report said.
“The industry is under increasing pressure from the global aluminium foil trade restrictions and the global economic downturn.”
Although there are significant risks, there is also the opportunity for Todmillen to become more profitable by leveraging new product offerings that can offset the impacts of global trade restrictions.
“This would give the aluminium industry an opportunity to grow its business without the significant disruption to the existing business.”
The report said Tod has plans to increase its production by up to 50 per cent a year over the following three years.
“Aluminum foil is currently manufactured at Tod Mills in New South Wales,” the paper said.
Todmords aluminium foil products are available in a range of products, including aluminium foil cup holders, aluminium foil caps, aluminium-coated aluminum foil, aluminium sheeting and aluminium foil cookware.
It said the company has the highest aluminium content in the market, and is the third largest producer in the world after Alcon.
The company has operations in NSW, Victoria, Western Australia, Western Cape, South Australia, South East Queensland, Queensland, New South Walsall, South Tasmania, Tasmania, Northern Territory and South Australia.