SGD mag’ N°3 Yo u r g l a s s m a n u f a c t u r i n g p a r t n e r ’s m a g a z i n e Infinite Glass sparkles on the web June 2010 PERFUMERY Clean rooms, a guarantee of high production quality PHARMACY 07 Innovation Securalic® color-shift pigment, a solution against counterfeiting 12 Quality Mers-les-Bains’ furnace n°4 modernized, some new checking equipments to improve quality 18 SGD’s commitment Industrial risk prevention, essential to ensuring production continuity in the event of an accident Contents SGD mag’ Yo u r g l a s s m a n u f a c t u r i n g p a r t n e r ’s m a g a z i n e Pharmacy N°3 June 2010 New 04 What’s EasyLyo: extending the product range! SGD launches “Baby friends”, its decorated baby bottle brand 07 Innovation Vials for Perfalgan, a success story 14 Know-how Clean rooms, a guarantee of high production quality 04 What’s New A new catalog for La Collection! 06 The latest launches Perfumes: the latest on the market 08 Special feature Sparkles on the web 13 Quality Logistics, track down of your products 16 SGD’s World SGD North America, innovation as a key to success 18 SGD’s commitments Industrial risk prevention SGD commits to a three-year action plan An Ethics Charter for SGD Perfumery and Cosmetics Corporate SGD Mag’ - Your glass manufacturing partner’s magazine - N° 3 - june 2010 Publication Director: Patrick Settelen - Editorial committee: Anne Bailly, Louise de Bengy, Catherine Descourtieux, Astrid Dulau-Vuillet, Audrey François, Olivier Gorge, Vincent Langlade, Thierry Magnin, Marie Riou - Writing and editing: Philippe Cragné, Tristan Gaguèche Design and production: Adonis Création - Print run: 3,000 copies - ISSN: to be confirmed - Registration: to be published. SGD Mag’ is published by SGD Group’s communications Department - Headquarters: Immeuble Le Linéa, 1 rue du Général Leclerc - 92047 La Defense Cedex Tel. +33 1 40 90 36 00 - e-mail: sgdmag@sgdgroup.com - More about us on www.sgdgroup.com 2 - SGD mag’ N°3 - june 2010 Editorial SGD mag’ «The change process is under way» The arrival of our shareholder, Oaktree, last From now on, our challenge lies in finding the best February, consolidates the first turnaround stage way to support this industrial revitalization stage begun by SGD Group, both from a strategic and in the Group by developing our market share. financial standpoint. In the glass bottle manufacThis implies, on our part to Bringing to life, on a daily turing sector, we are curintensify our efforts to bring basis, two of the Group’s rently the only worldwide to life, on a daily basis, two of company to boast a secured the Group’s key values: the key values: the absolute and solid financial and absolute priority given to our priority given to our clients, strategic structure. clients, as well as respect and This position allows us to appreciation for the specific as well as respect and launch an investment plan skills involved in our business appreciation for the specific and large initiatives regaras glass bottle manufacturers. skills involved in our ding quality, productivity, This is the one goal all of SGD and client service. Group’s teams are striving for. profession of glass bottle Over the first 2010 trimester, They share a common manufacturer. more than 50 million euros passion for glass and make were injected into our every effort to constantly French sites as well as into our plants in Spain, improve our service and quality levels. Germany, Russia, China, USA and Brazil. The results, for the first semester 2010, are already visiWe truly hope that this new SGD Mag’ issue will ble in revenues, margins, cash flow and liquidities, convince you that they do. and match with our 2009 expectations. This newly regained impetus allows us to initiate the THIERRY DILLARD second stage in our turnaround plan: the improvement CEO, SGD Group of our commercial and industrial performances. WORLDWIDE LEADER IN GLASS BOTTLE MANUFACTURING IN THE PHARMACEUTICAL AS WELL AS PERFUMES AND COSMETICS SECTORS, SGD GROUP (FORMERLY SAINT-GOBAIN DESJONQUÈRES) ALSO MANUFACTURES REGULAR BOTTLES, GLASS BRICKS AND ELECTRIC INSULATORS, AND IS INVOLVED IN THE CREATION AND DISTRIBUTION OF VARIOUS PACKAGING PRODUCTS. WITH 12 PLANTS (FRANCE, GERMANY, SPAIN, BRAZIL, USA, RUSSIA, CHINA) AND 10 SALES OFFICES (PARIS, KIPFENBERG, MADRID, BARCELONA, MILAN, NEW YORK, MOSCOW, SAO PAULO, CANTON AND SHANGHAI), SGD IS NOW OVER 5,000 EMPLOYEES STRONG. THE COMPANY WORKS ALONGSIDE ITS CUSTOMERS IN THE DEVELOPMENT, MANUFACTURING AND DECORATION OF BOTTLES AND GLASS PACKAGING. IN 2009, SGD’S SALES REACHED €505M. Find out more about us on www.sgdgroup.com 3 What’s New What’s New > Pharmacy EasyLyo: extending the product range... One year after launching EasyLyo, SGD confirms its capacity for innovation by extending its bottle product range. Lighter and flat-bottomed, the bottle also has better glass distribution. Pharmaceutical laboratories quickly showed interest in the 5ml and 10ml vials whose design is specifically meant to be more resistant. Boosted by this success, and in order to meet its customers’ requests, SGD launches 20ml, 30ml, 50ml and 100ml EasyLyo models. At the same time, SGD also initiated two technical studies with two teams, both experts in the development of lyophilization cycles. Initial results show EasyLyo bottles’ clear superiority in vertical pressure resistance at the sealing stage: 5 to 10 times that of standard vials. And as far as lateral pressure - exerted when loading/unloading the lyophilizator - is concerned, they proved twice as resistant as standard vials. Two studies are currently under way on EasyLyo bottles: one, led by Dr. Gieseler, from the University of Erlangen, in Germany, is focusing on the definition of the main lyophilization parameters such as thermal transfer coefficient, while the other, led by Dr. Ed Trappler from Lyophilization Technology in the United States, is studying the main breakage causes during the lyophilization process, such as Mannitol high concentration and the bottles’ filling volume. The two studies’ complete findings will be presented shortly. ... SGD at international fairs and conferences > The fourth annual “Lyophilization” conference - London - from September 7th to 9th, 2010. Christopher Wagner, SGD’s R&D Director, will deliver a speech on the “comparison of thermal transfer characteristics and other important parameters between molded glass and tubular glass.” > Parenteral Drug Association (PDA) - Vienna - September 28th and 29th, 2010. > International Pharmaceutical Contract Services / CPhi - Paris - from October 5th to October 7th, 2010. SGD will have a booth in this international fair, which brings together all the trades and sectors of the pharmaceutical industry and attracts over 25,000 professionals each year. Christophe Wagner, SGD’s R&D Director > Perfumery Updating the catalogue of La Collection! SGD awarded for NAYA and the bottle essence of Narciso Rodriguez. The new 2010 catalogue presenting La Collection was released last April. It now features additional illustrated pages: a table of contents to identify the sections more easily, and a page related to the website (www.perfumery.sgdgroup.com) on which dimensions and reference specifications can be found. The website also offers the possibility to download the catalogue in PDF format and the opportunity to create your own bottle according to your tastes, using the “Atelier de Creation” software. The new La Collection catalogue also presents new product lines (the Vasco Perfumery line, the Goutte cosmetics line and the interior fragrance line, Vintage), new decorations and a page dedicated to the Infinite Glass La Collection products. During the “Design Beauty Award” evening organized by Cosmoprof, Naya, the first 100% eco-designed industrial project, was awarded 1st prize in the “strategic product consistency” category for its eco-responsible packaging developed with this concept, from the selection of materials to manufacturing, packaging and presentation. The international jury included professionals from architectural publishing, design and packaging. Even if the product has not been introduced on the consumer market, Naya knew how to captivate the jury. It is the first award won by Naya. At this event, SGD’s bottle for essence, Narciso Rodriguez’s fragrance, also received a shared 1st prize in the “bottle” category. 4 - SGD mag’ N°3 - june 2010 What’s New > Perfumery SGD in trade shows throughout the world SGD took part in several trade shows during the first semester of 2010. Each is a great opportunity to meet with our clients and to present our latest innovations and achievements. New York Luxe Pack May 19th and 20th, 2010 Bologna Cosmoprof April 15th to 18th, 2010 Shanghai Dubai Sao Paulo Beauty World Middle East June 1st to 3rd, 2010 Luxe Pack March 30th and 31st, 2010 China Beauty Expo May 19th to 21st, 2010 FCE Brazil May 25th to 27th, 2010 People Cyril Ruiz-Moise, Managing Director, SGD Asia Pacific (SGD AP) Cyril Ruiz-Moise joined SGD in 2004 as Sales Director for Asia. He became Deputy Managing Director of SGD Asia Pacific in 2007 before being promoted to Managing Director last January. SGD’s AP subsidiary employs approximately 850 people who either work in the Zhanjiang plant or one of the two sales offices (one based in Guangzhou, the other in Shanghai), and manufactures over 220 million bottles each year. It is equipped with a 60k tons per year furnace, 5 production lines - manufacturing Extra Flint Glass for the Perfume-Cosmetics sector and Type 2 and 3 Glass for the pharmaceutical sector - and a decoration workshop (frosting, silkscreen printing, lacquering, hot transfer/stamping). SGD AP sells products in 16 different Asian countries and registered 45% growth in 2009. Laurent Chevallier, VG Emballage’s new Managing Director Laurent Chevallier joined SGD Group last march as Managing Director of the VG Emballage Company, thus replacing Alberte Luciani who retired. After graduating from ESCP and the University of Paris Dauphine, he started his career in consulting (Arthur Andersen, McKinsey), then worked for Sidel Group, first in marketing and later as the director of operations in the ‘labeling’ entity in Italy. VG Emballage is one of SGD’s subsidiaries. It accessorizes (caps, lids, pumps, etc.) and decorates (customizable lines, silkscreen printing, hot stamping, metallic finishes, etc.) bottles for the pharmaceutical or PerfumeCosmetics sector. Jean Christophe Duchamp, Director of SGD’s Sucy-en-Brie plant. He began his career with two automotive equipment companies, Faurecia and Plastic Omnium, after graduating from the Ecole Nationale Supérieure des Arts et Métiers. He started with SGD as Production Manager at the Mers-lesBains plant. In 2004, he became Director of the American production units (at the Covington and Sparta, Georgia sites), where he stayed until early 2010, before coming back to France to take charge of the Sucy plant. SGD’s Sucy-en-Brie plant, with three furnaces and nine production lines, has a yearly production capacity of 85,000 tons of amber and white glass. 5 What’s New > Pharmacy SGD launches “Baby friends”, its decorated baby bottle brand Last April, SGD registered its own brand of decorated baby bottles, named: “Baby friends”. Fun, childlike designs and themes available in three collections, offering a choice between “romantic-chic”, “pop” and “organic” signature ranges, presenting animal decorations, with a giraffe as a mascot. “Baby friends” is thus meant to meet distributors’ requests (and in particular the export and small scale purchasing markets), allowing them to offer a more attractive product line to their customers. The bottles will be available under the “Baby friends” brand or with their decoration only for distributors wishing to market them under their own brand name. Perfumes: the latest on the market > Heat, by Beyoncé Heat, Beyoncé’s first fragrance, is inspired by her style and charm. Heat is captivating, intense and hot. Beyoncé’s red carpet glamour is reflected in the bottle, which combines seductiveness with sophistication. The bottle has curved lines at the base which progressively slim down into distinctive angles towards the top. It is thus both precious and striking, a perfect mix of vintage styles,both classic and modern.The gradation of bright tones of red - Beyoncé’s favorite color - gives the impression of a fire burning inside the perfume bottle. As a last touch, the bottle’s upper part is highlighted with a golden band, on which “Beyoncé” and “Heat” are etched, and is topped by a luxurious cap. Irresistibly dazzling and unquestionably glamorous, Heat, by Beyoncé, is bound to set passions ablaze. 6 - SGD mag’ N°3 - june 2010 > Voyages d’Hermès > Yves Rocher’s Flowerparty Extreme elegance and a streamlined design with a timeless flair: the Voyage d’Hermès bottle is unique and clever. It can stand upright only when open and its sensual roundness when closed makes it easy to carry it with you everywhere. The stud of the saddle is used as an axis around which the aluminum stirrup rotates, with a light nudge of the finger, thus evoking a timeless motion. Resolutely nomadic, the bottle is equipped with a screw neck allowing for infinite refills to accompany every journey. Produced with a double blowing technique and very low glass thickness, the bottle is a true manufacturing challenge. Since the bottle’s bottom is not flat, it also required a specific adaptation of the conveyance system. The glass repartition has to be perfect; this is another technical challenge in itself given the light weight of the glass in relation to its content. Finally, the rotation of the stirrup demands a very sharp control of the dimensions as well as a perfect command of the concave sides to assemble the accessory. But the result is well worth it: a bottle with elegant perfection which embodies movement. Fresh and irresistible, Flowerparty, the new fragrance by Yves Rocher, brings to mind a joyful lust for life. Its bottle-square base and rounded edges-required high precision to obtain the same glass distribution for the two sizes available (50ml and 30ml), specifically for the 30ml bottle, whose small size makes glass distribution more difficult and color gradation more complex. The bright and luminous glass of the Flowerparty bottles is lacquered in a delicious, indeed almost luscious, shade of red, fading towards the top of the bottle. The name of the fragrance is silkscreen printed in a radiant metallic gray color. Modern and dashing, Flowerparty is a definite note of freshness, mischievousness and charm! Vials for Perfalgan, a success story SGD has, for several years, been producing vials for Perfalgan, an injectable pain-reliever produced by the BMS Laboratory and intended for hospitals. “We have, with BMS, worked out a partnership based on a close relationship in terms of technical research and quality,”explained Thierry Magnin, Exportations Director for Europe.“In fact,Perfalgan reacts badly to the presence of oxygen and therefore requires the use of hermetic vials.The vial’s neck had to be smooth and flat to allow for perfect isolation of the product at the sealing stage.” Manufactured in SGD’s Kipfenberg plant (Germany), the vials undergo a “zero defects” process. “As far as quality is concerned, the QSYS system (automatic data exchange between the hot end and cold end) collects all the required data automatically. The production machine operator is thus immediately alerted in the event of glass defect detection and can rapidly implement corrective actions,” pointed out Rolf Hettich, the plant’s Managing Director.“The bottles manufactured for Perfalgan keep our production lines busy for up to 100 days of the year; BMS needs approximately 100 million vials each year.” It is a true commercial and technical success for SGD, on a market dominated by plastic products. “This success rests mostly upon the quality of the products but also on that of the service,” concluded Thierry Magnin. “We are particularly attentive so as to meet all of our client’s technical requirements.” Innovation > Pharmacy Rolf Hettich, SGD Kipfenberg’s Managing Director Thierry Magnin, Exportations Director for Europe Three questions for… Enrico Sibani, Purchasing Manager for BMS, Europe-Asia Could you present BMS in just a few words? “BMS is a pharmaceutical company established worldwide which employs 30,000 people. Our development is strong, especially in the area of biotechnologies. Our “star” product is PLAVIX, a medication to prevent ischemic vascular events. Why did you choose SGD to manufacture the Perfalgan vials? First of all for product quality, which itself has been optimized through true cooperative work between the SGD and BMS teams. And the fact that SGD was the leader in its market and had high production and delivery capacities resulting from the repartition of several plants throughout Europe has always guaranteed regular supplies, not to mention competitive prices! How would you describe the cooperation with SGD? Their sales and technical teams are very reactive, attentive to our needs and proactive.Their sales strategy is based on a long-term approach and we share the same values.” > Perfumery A solution against counterfeiting: the Securalic® color-shift pigment Exclusive to SGD, the Securalic® color-shift anti-counterfeiting pigment can be added to varnish, silkscreen printing ink (organic or enamel) or spray lacquer.This pigment has a tracing element invisible to the naked eye but which can be detected with a beeper. It instantly shows whether the bottle or the jar is a counterfeit or not.The tracing element is generic but can be adapted to become specific to each client. Don’t hesitate to contact us for a demonstration! The interior silver mirror finishes now with colors! The interior silver mirror finish compatible with the jus - can now be done in an infinite variety of colors with a complete or partial external lacquering treatment. Here the Vasco model from SGD’s La Collection, lacquered towards the top with bright colors… which are reflected in the mirror finish and are thus diffused through the entire bottle. 7 Special feature Infinite Glass sparkleson the web > 2008: SGD created Infinite Glass, the first 100% recycled - 100% recyclable glass, made exclusively of post-consumer glass cullet. The very first environmentally friendly glass on the Perfumery and Cosmetics bottles market! > 2009: SGD, in association with four other partners, created Naya, an organic cosmetic cream, the first 100% eco-designed industrial project. Eco-design at the heart of beauty! 8 - SGD mag’ N°3 - june 2010 > June 2010: SGD creates the www.verreinfini.com website, dedicated to Infinite Glass. The site is an information portal, accessible to everyone, which demonstrates once again the Group’s commitment in terms of sustainable development. www.verreinfini.com 9 Special feature Infinite Glass creates a buzz www.verreinfini.com created on June 7th, presents, to industrial professionals, and consumers but also to leaders in media, Perfumery and Cosmetics professionals, designers and fashion designers, internet social networks, etc., the new beauty concept:“environmentally friendly + beautiful = Infinite Glass.” Targeted to all consumers - professionals (B2B) and the general public (B2C) the site shows, in a fun and educational way, that the beauty and sustainable development markets are not incompatible! Through animations, videos and testimo- nials, everyone will be able to learn and know more about Infinite Glass and its many uses. The site’s goal is to “create a buzz” around the first 100% recycled 100% recyclable glass in the Perfume & Cosmetics sector. The website is also a mine of information and a pool for innovations, which enables you to create your own range of Infinite Glass bottles in your choice of colors in the interactive “come and play” section. Eco-responsible decoration Demonstration with a few figures With 1 million of 200g bottles of Infinite Glass, we save: 140 tons of sand 2 tons of limestone 80 tons of CO2 emissions 30% of truck deliveries… …not to mention the favorable economic effects on local house-waste sorting activities. 10 - SGD mag’ N°3 - june 2010 Infinite Glass can be decorated in the same way as classic glass in an infinite variety of colors. For example, a partial lacquering of the bottom and upwards can optically enhance or decrease the slightly greenish tint which gives Infinite Glass its identity. The decoration processes are environmentally friendly: • hydro lacquers: water-soluble organic resins containing no solvents. • organic inks / UV inks: used in silkscreen printing, these inks contain organic resins whose solvent levels are very low. Their point of view… “Kibio is a brand with strong commitments, which respects the environment and strives to always be one step ahead in its responsible development approach. Our packaging development department is constantly researching new packagings that are more environmentally friendly, but without compromising their aesthetic quality. SGD and Kibio share the same values combining respect for the environment with the notion of pleasure. In this frame of mind, Infinite Glass meets these requirements and marks a new step forward in the preservation of our planet.” Julie Waimberg, Marketing Director, Kibio “In each of our new developments, eco-design is now an integral part of the project.For our organic cosmetics collection inspired by women’s beauty secrets throughout the world, we created sleeves without glue, printed with ink extracted from plant sources on FSC (Forest StewardShip Council, responsible forest management) cardboard; there is no extra user notice but instructions are printed on the inside of the sleeves.Given our approach,the Infinite Glass project instantly thrilled us! In order to be consistent with our own philosophy, we are always searching for improvements to reduce our imprint on nature. To delve further into this approach and create a true dynamic movement around this project, we are going to set up a system of collecting jars and bottles at our boutiques in order to re-insert the used containers into the Infinite Glass manufacturing cycle…things have come full circle; it’s great, isn’t it?” Audrey Guyot, Marketing Manager, Terre d’Oc Three questions for… Catherine Descourtieux, Marketing Director of the Perfumery BU > Why launch the Infinite Glass website? Respecting the environment is at the heart of everyone’s concerns today, not only for our direct clients but also for the end consumers. Consumers are increasingly paying attention to issues related to the conservation of the environment and prefer, when they have the option, to choose “eco-compatible” products. This is the reason why the Infinite Glass website is also aimed at consumers. It allows them to realize that with a few simple daily gestures, such as recycling glass containers, they contribute to SGD’s production of environmentally friendly glass for the Perfumery and Cosmetics sector. To make this even clearer, we will, as of September 2010, start engraving an Infinite Glass logo on the bottom of every bottle and jar so as to identify the eco-friendly glass product range. > What are the highlights of the Infinite Glass portal? First, the site itself, in that it is solely dedicated to the product! It is aimed at our direct clients, and also, most importantly, at the end customers. This is why we wanted it to be modern, dynamic, and educational while remaining fun. Hence the presence of an animated section in which net surfers can pick a color and apply it to Infinite Glass. Another example: the “young talents” section aimed at students design schools and inviting them to participate in a contest organized by SGD to create tomorrow’s eco-friendly products. The winner will be designated in November. A more environmentally friendly furnace for the Mers-les-Bains plant Furnace 3 of the Mers-les-Bains (France) plant, in which Infinite Glass, among other products, is manufactured, was reconstructed and will be operational by the end of July. It will optimize energy savings and reduce CO2 emissions into the atmosphere. A 3.2 million euro investment for this 40 tons per day furnace, which is comprised of 2 lines,including one whose color feeder allows for the production of masscolored Infinite Glass. > What outcome do you expect from this communication campaign? We wish, above all, to increase the consumers’ awareness of our environmentally responsible approach while showing our capacity for innovation. And we want to emphasize the fact that, with Infinite Glass, and through daily sorting of domestic waste, they can play an active part in generating an environmentally friendly glass product offer, which itself is part of a broader environment protection policy that has been developed throughout the Group. 11 Quality > Pharmacy Modernization of furnace 4 in Mers-les-Bains In order to improve consistency in bottle quality, SGD has committed to a substantial investment plan of over 6 million euros in 2010. It will be devoted to the modernization of furnace n°4 in the Mersles-Bains (France) plant, which is dedicated to the production of type 1 neutral glass which is used, in particular, to manufacture baby bottles. This quality improvement rests upon two main elements. On one hand, the modernization of line control equipment at the cold end, and on the other, the reinforcement of process control equipment at the hot end. These investments are in line with the quality policy developed by the pharmacy division and will allow, in the long term, for the evolution of the company from an AQL quality culture (defined through finished products sampling) to a “parts per million” or PPM quality culture (number of nonconforming items per million bottles manufactured). SGD renewed its certifications SGD’s ISO 15378 certification for Pharmacy... ... and ISO 9001 for Perfumery With its Pharmacy Business Unit, SGD is the only glass manufacturer in the world whose sites were ISO 15378 certified as early as 2006. This standard concerns “primary packaging materials for medicinal products: particular requirements for the application of ISO 9001-2000 together with Good Manufacturing Practice (GMP).” It specifically meets the pharmaceutical industry’s needs by defining the manner in which primary packaging materials for medicinal products have to be manufactured in compliance with current standards in quality and process control. The complete renewal of the Pharmacy’s BU last March highlights the success of the strategy specializing in pharmaceutical packaging and its compliance with GMP. This certification, which was renewed for three years, rewards true team work, as well as the synergies built between all the Group’s pharmacy sites. Having already been granted certification in 2007, SGD’s Perfumery & Cosmetics business unit had its ISO 9001 certification renewed in February for its French plants at Mers-les-Bains, the Verreries de l’Orne and the Verreries de la Somme. The certification guarantees quality as an integral part of SGD’s processes, from the product development stage to conservation and storage, including each production stage. This standard is a true commitment for the entire Group and promotes continuous improvement in all the production processes. Following the example of the ISO 15378 standard in Pharmacy, the next step to be considered is the ISO 22716 certification to confirm the integration of good practices in Perfumery & Cosmetics related manufacturing. 12 - SGD mag’ N°3 - june 2010 Quality > Corporate Logistics: track down of your product At the end of 2009, SGD launched a large project whose purpose is the improvement of the logistics processes. This initiative will ultimately allow for better product traceability in real time, from the end of the production chain (cold end) to their final delivery at the client’s facilities. “This project,which we named RaFale,is a response to François-Xavier Colin, our clients’need to have access to perfect product traRaFale Project Manager ceability along the entire logistics chain,and as an instrumental element of our constant effort,within the company,to strive for improvement,” explained François-Xavier Colin,Manager of the project. “SGD is modernizing its logistics chain by optimizing its information system, harmonizing its work method and rethinking the organization of its warehouses. The Group undertook the first steps of a process consisting of revisiting all our processes and extending, to all our sites, a single Group solution aimed at improving product traceability and upply chain productivity.” The initial stage of the project included the analysis and definition of management rules; it was then followed by a development and testing stage and testing before implementation throughout the Group. “We are going to start with the Spanish site of La Granja at the beginning of the second 2010 semester, then the Mers-les-Bains site in France will follow at the end of 2010. Implementation throughout the site will be completed by 2012.” «Numerous benefits for our customers» Thanks to the redefinition of logistics processes and the generalization of real time (with radio frequencies in particular) and EDI (Electonic Data Interchange), pallets will now be fully traceable, in real time, along all the links (internal and external) of the chain. When coming out at the cold end, the pallets will be marked with bar-coded standardized SSCC labels which will then be scanned before being transferred to the storage warehouses. Each party involved will receive safe, real-time information such as inventory status (location, quantities…), as well as progress in deliveries and receipts. Thanks to a computer operated message system (EDI and Web), each party involved (SGD’s internal teams, subcontractors and customers) will be connected in real time to the information system (order followup, shipment notice, etc…). François-Xavier Colin concluded by saying: “the benefits of this new approach will be numerous and significant for our customers: information flow reliability, quality and response time improvement, as well as inventory management (knowledge of inventory in real time, optimization of storage areas), thanks to increased pallet traceability and continuous monitoring of the logistics chain.” Simplified presentation of the logistics flows Bare glass Real time notification of the pallets; label printing Pallet organization via radio frequency Checking and updating status and quality changes Decorated glass FIFO preparation and secured loading Accelerated and reliable receipt Bare and decorated glass pallet traceability Order receipts and replies via EDI Dispatching and sending of ASN (Advance Shipping Notification) > Perfumery New Specifications for La Collection The year 2010 has brought many changes for La Collection, with a new set of specifications! The goal: to offer homogenous standard quality from all of SGD’s production sites and better meet the markets’ and clients’ expectations. La Collection can now pride itself on offering a unique level of La Collection quality worldwide (glass quality, finishing, packaging, palletization, etc.), with a generic range of bottles and jars. This new set of specifications will be presented to our clients in September, along with the generic range. Today, La Collection has over 230 clients and features 280 references which can be customized in an infinite number of ways. 13 Know-how Clean rooms, a guarantee of high production quality Emmanuel Lepitre, Mers-les-Bains Quality Director Pharmacy All of SGD Pharmacy’s productions sites are equipped with clean rooms in order to meet the cleanliness and quality standards of the pharmaceutical industry. 14 - SGD mag’ N°3 - june 2010 “All the glass bottles we produce for the pharmaceutical industry are manufactured in clean rooms, and such is the case in all our production plants,” explained Emmanuel Lepitre, Quality Director at the Mers-les-Bains (France) plant. “These rooms, which are designed in accordance with the ISO 14644 international standard, guarantee a specific maximum level of particles per cubic meter. To do so, we maintain high pressure in the room by constantly blowing filtered air. We are working to comply with ISO class 8 (grade D in the United States) with a particle count not in excess of 100,000 per cubic foot. In order to maintain such an environment, the rooms are equipped with access and exit airlock double doors, and the personnel is required to follow specific mandatory instructions, such as wearing a smock and soft cap, overshoes and, if necessary, beard covers… The personnel also received a special training on GMP (Good Manufacturing Practices) specifically focused on entry and exit procedure, as well as behavior when inside a clean room.” Know-how “SGD’s goal is to meet more fully its clients’ expectations with a constant product quality level and an impeccable cleanliness level. To do so, bottles for injectables are washed and sterilized before being wrapped and the cleanliness of bottles meant for orally taken products guarantees the absence of macroscopic particles.“The demand for‘ready to fill’ (ready for use, i.e. washed and sterilized) is increasing,” Emmanuel Lepitre pointed out. “In this sector, we work in close collaboration with our clients. They audit us very regularly to check our “good practices” compliance in terms of cleanliness and quality. In Mers-lesBains, we have approximately 25 to 30 audits each year.” Furthermore, SGD carries out its own internal inspections (see below). As a conclusion, Emmanuel Lepitre added: “clean rooms truly allow us to build an ever stronger link between the glass industry and the pharmaceutical industry.” Rigorous and regular inspections On top of audits carried out by the clients in the production sites, clean rooms are subjected to rigorous and regular inspections: > Yearly: a requalification procedure, during which the air filter is replaced, > Quarterly: the monitoring of micro-biological contamination, > Monthly: a particle count check, > Weekly: a filter clogging verification, > Continuously: the recording of the rooms’ temperature and high pressure. 15 SGD’s world SGD Asia Pacific SGD’s factory in Zhanjiang, modernizes its production lines for injectables In order to satisfy the Chinese market’s growing demand concerning bottles for injectables in Type 2* glass complying with European standards, SGD Asia Pacific’s factory (China) has undertaken major modernization work on its two production lines. These are now fitted out with new conveyors, control machines, clean air changers and automatic palletizers. Now also equipped with a Class 100,000 white room, the Zhanjiang site offers the same quality parameters as other SGD Group sites.This modernization is a direct response to the Chinese market’s strong growth, as well as to the clients’ and local authorities’ expectations regarding the introduction of better pharmaceutical production standards. Based on this investment, Cyril Ruiz-Moise’s goal, as SGD Asia Pacific’s new Managing Director (see People’s section p5), is to position SGD as the leader of the Chinese pharmaceutical market. * Type 1 glass: considered neutral throughout, type I glass is a borosilicate glass that is chemically resistant, meant for parenteral use (injectables) and products requiring high stability (blood-derived products, nutritional products and organic products). Zoom Innovation as Covington’s plant Sparta’s plant SGD North America’s sales office (SGD NA), which is located in New York, was opened in 1980 in order to meet our clients’ expectations in the Perfumery-Cosmetics sector. Then, in 1995, it extended its operations to the pharmaceutical sector in the Northern and Central American markets. SGD NA also operates two manufacturing sites for the Perfumery-Cosmetics sector:one in Covington to manufacture bare glass, one in Sparta dedicated to glass decoration. With a 25% share of the market, SGD NA plays a key role in the luxury industry. The company’s clients include some of the industry’s biggest names, such as L’Oréal, Estee Lauder, Chanel, Avon, Elizabeth Arden, Parlux, Mary Kay, Bath and Body Works, and Victoria’s Secret. Type 2 glass: its composition is the same as Type III glass but a surface treatment on the inside allows for lower ion exchange. It is suitable for water-based preparations for parenteral use (injectables) whose pH is inferior to 7. Type 3 glass: corresponds to soda-lime glass, the most commonly manufactured type. It is particularly well-adapted for products that are taken orally. Peter Acerra, SGD NA’s General Manager 16 - SGD mag’ N°3 - june 2010 SGD’s world SGD North America a key to success “For the Perfume sector, we have a competitive edge over other companies,” explained Peter Acerra, SGD NA’s General Manager. “We manufacture in the United States, which allows us to control our products’ quality and to offer a quick turnaround time from a commercial standpoint. In the Pharmacy sector, we owe our success mainly to the solid partnerships that we have implemented with local distributors.” The Perfumery-Cosmetics sector is slowly emerging from a very difficult period linked to the 2008-2009 economic crisis. “In 2009, our figures showed a 2% to 10% drop in sales,” Peter Acerra added. “The perfume industry was more severely impacted but, overall, the 2010 forecast is much brighter.” As far as Perfumery-Cosmetics VP of Sales/Marketing SGD NA, Sheherazade Chamlou, is concerned, “innovation is one of the pillars of our strategy, along with operational performance and our commitment towards sustainable development. We constantly need Sheherazade Chamlou to demonstrate our creativity, for instance by showcasing our technology several times a year in ‘innovations & trends’ presentations aimed at our clients, or through ‘Glass Schools’ initiatives taking place in our plants and meant to help people understand our production techniques. We also participate in events such as the New York Luxepack show so as to find responses to increasingly important environmental concerns and to meet the leading brands’ high expectations in terms of innovation. This is how we won, last year, the Sustainable Development Prize awarded by the New Jersey Packaging Executive Club. Finally, and this is an American singularity, we manufacture a lot of bottles for fragrances that are backed by celebrities or have eponymous brand names: Halle Berry (Coty), Beyonce (Coty), Queen Latifah (Parlux), Reese Witherspoon (Avon), Jessica Simpson (Parlux), Usher (Arden), etc.” On the Pharmacy side, SGD NA is the american glass market’s second manufacturer,owing to solid partnerships implemented with distributors and reliable logistics organization. “The markets that bear the highest interest are those that include demanding requirements that our competitors have a hard time meeting, and which represent a true added value for our clients, such as oncology, blood derivative or nasal products, and injectables,” explained Nadir Lahmeur, SGD NA Pharmacy Sales Director. “This year, we are launching the Nadir Lahmeur new EasyLyo product range and are continuing the expansion of our new factory in the non-traditional Yellow Glass market for products such as vitamins and homeopathic medication.” SGD North America at a glance 2009 turnover: $75 to 100 million, Perfumery-Cosmetics and Pharmacy together 3 sites comprising 430 employees > New York, the subsidiary headoffice > Covington (Georgia) for glass manufacturing (Perfumery & Cosmetics). One 70 tons per day furnace and 4 production lines > Sparta (Georgia) for glass decoration: Stamping machines, silkscreen printing, lacquering lines, etc. Numerous decoration processes: frosting, hot stamping, UV gluing, etc. 17 SGD’s commitment Industrial risk prevention SGD commits to a three-year action plan Since 2009, SGD Group set out to implement a three-year plan regarding industrial risk prevention. The goal: reduce fire risks and machine breakage as much as possible and ensure, in the event of an accident, service continuity so as to limit the impact on client deliveries. Fire drill On-site awareness campaigns and training actions Jean-Jacques Barlier, SGD’s Engineering & Environment Director As Jean-Jacques Barlier,SGD’s Engineering & Environment Director, explained: “industrial risk prevention is one of our priorities. This is the reason why we began implementing,last year, a three-year action plan meant to limit the risks of accidents in terms of fire and machine breakage in all our manufacturing sites.” This action plan includes several stages: “we first established a true partnership with our new insurance company in which it guarantees sufficient financial coverage in the event of material but also immaterial damage (operating loss)”, Jean-Jacques Barlier explained further. “In order to do so, our insurance company conducts an audit, each year on each of our sites (in France and abroad) in the presence of the factory’s personnel, myself and sometimes our broker’s prevention engineer.This allows us to identify the main risks concerning fire hazards and machine breakages so as to find remedies by planning preventive actions or investments.” SGD thus distinguished two types of priorities for the years 2009, 2010 and 2011: prevention measures related to behavior (preventive maintenance, procedure improvements, communication…) and protection investments (sprinklers, retention…). 18 - SGD mag’ N°3 - june 2010 On site awareness campaigns and training actions started in France and will soon be extended to the entire Group. In 2009, Directors, as well as Safety and Technical Managers, were made more aware of fire risks (Insurance policy content, prevention steps, implementation, financial impact, impact on suppliers and clients…). Last April, a brainstorming seminar, which gathered the main parties involved in the field of Fusion, was organized to address furnace casting procedures. One of the supporting tools used at the seminar was a bilingual video made for this occasion and which will be shown in all the SGD production sites. “Other actions are planned,” emphasized Jean-Jacques Barlier, “such as raising the La Granja plant (Spain) personnel’s awareness on fire hazard prevention, carrying out internal audits on health, safety and work environment in the Covington and Sparta plants in the United States as well as in those of Sao Paulo in Brazil, without forgetting the creation of a new Intranet feature specifically dedicated to this subject in order to transmit information and raise awareness amongallSGD employees.” Kiln’s flow simulation An Ethics Charter for SGD SGD Group has decided to formalize its values and principles in a document meant to reflect the Group’s identity and commitment towards its clients, suppliers and personnel. Thierry Dillard, SGD Group’s CEO explains. Why an Ethics Charter for SGD? “SGD had been living by the Saint-Gobain Charter, which, given the company’s evolution, was no longer truly relevant.This is why we decided to draw up an Ethics Charter that would be specific to SGD, a document meant to apply to the entire Group throughout the world. This Charter defines the main principles that govern the company’s operations and its relations with clients,suppliers and personnel. In a way, it is like the Group’s“DNA”,the values and commitments supported and shared by all.The Charter will, of course, be validated by our shareholders and the Executive Committee before being communicated internally and externally.” What are the main themes addressed in the Charter? “It is a reflection of SGD Group’s identity through its personnel, values, know-how, organization, markets and products… an identity from which powerful elements can be drawn.First of all,the highest priority SGD, patron of the arts... In 2009, the artist offered to build, for SGD Brazil,an immense wall of glass bottles to decorate the factory and promote the beneficial effects of recycling. To this end, 22,000 bottles were assembled with a recycled-elements-based cement mix (including for instance cardboard and paper, no glue) on 25 panels sealed one to the other,covering,in the end, a surface of 170 square meters. A wall entirely covered with glass bottles now welcomes the visitors of SGD Brazil’s production site. ... and a socially responsible company ... Three years ago, a Brazilian artist, Deborah Muszkat, approached SGD Brazil in order to reclaim glass that she would use in the crafting of one of her works (of art). The artist’s creations are mainly made of recycled glass, scrap glass and recycled materials. With the help of children as well as adults from different cultures and facing adversities, she creates, through art, the reflection of a world without social distinction. Her ideas, her work and her way of thinking won over SGD Brazil.The company agreed to provide her with broken glass as a contribution to the creation of many sculptures and works of art, which are exhibited, to name just one, at the Sao Paulo’s Museum of Modern art. After observing the absence of a bus stop, SGD offered to submit to the mayor of La Granja (Spain) a somewhat particular bus shelter project. This is how two bus stops entirely made of glass bricks produced by the La Granja factory came to be built alongside the roads around the site.They were designed by SGD with the help of an architect and installed by Urban, one of the La Granja Factory’s clients. A success that may well lead to others being built, or that may even become a model in “street furniture”for other Spanish cities! > SGD Pharmacy > CPHI South America Buenos Aires - Argentina: august 17/19 > 4th annual Lyophilization Conference London - UK: September 7/9 > PDA lyophilization conference Vienna - Austria: September 28/29 > PDA Orlando US Orlando: March 15/19 coming soon coming soo Key dates 2st semester 2010 > CPhi / ICSE SGD & SGD VG Emballage’ stand Paris: October 5/7 > A3P Biarritz Biarritz: October 19/21 > Emballage Conference VG Emballage Paris: November 22/25 > Pharmtech Moscow Moscou: November 23/26 > CPhI Mumbai Mumbai: December 1/3 > SGD Perfumery > Cosmeeting SGD VG Emballage Paris: September 12/15 > Luxe Pack Monaco Monaco: October 20/22 > Cosmoprof Hong Kong Hong Kong: November 11/13 is given to our clients, their own commitments and their markets. Our production, both for the Pharmacy and Perfumery-Cosmetics sectors,is fully organized around this principle. Then come the notions of Quality which has to be applied throughout the Group in accordance with our clients’ requirements, particularly in terms of reliability, and of competitiveness, which warrants excellence, both internally and externally.” How will this Charter be implemented within the Group? “It will be adapted into Codes of Conduct that will be specific to each of our subsidiaries around the world and each of our activities: purchasing, sales, research, production, human resources, etc. The Codes will be translated into each country’s language and adapted to each country’s local specificities. It will thus be possible to enhance them and implement them on a daily basis to reflect actual situations. The Ethics Charter and the Codes of Conduct will constitute a true convergence point and a true consensus for all the parties working together.” > Emballage Conference SGD VG Emballage Paris: November 22/25 A question? A reaction? Feel free to write to us: sgdmag@sgdgroup.com What will the benefits be for your clients? “Our clients, once again, are at the heart of our commitment. Our Charter is built on the specificities of our trade - bottlemaking - and therefore draws greatly upon our clients’ own commitments and specificities.” You would like to react to one of the magazine’s articles? Express your opinion? Suggest something? Have more information? Contact the editorial team directly by sending your message to: sgdmag@sgdgroup.com You can also find SGD news on the SGD Group website: www.sgdgroup.com 19