Nowadays, tobacco industry is facing with challenges from many aspects, including changes in economy, increasing cost of raw materials, consumers moving to cheaper alternatives, etc… Cigarette manufacturers are looking for solutions that allow them to release from all the pressures. As a main part of the cigarette-making chain, cigarette filter industry is making efforts to meet requirements of cigarette manufacturers. As a leading independent suppliers of innovative specialist filters to the tobacco industry, Filtrona Filter Products how to deal with these challenges? Chris Franklin, global sales and NBM director of Filtrona Filter Products - Key Accounts, talked about these topics with TobaccoChina Online recently in an interview in Beijing.
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Chris Franklin, global sales and NBM director of Filtrona Filter Products - Key Accounts
[b]TobaccoChina Online(TCO): Today, international cigarette companies' facilities are moving from developed areas to Asia following the cigarette consumption model changed in the world. How do you think about this trend? Does it have influences on Filtrona? [/b]
Chris Franklin: Over recent years the industry has witnessed increased cigarette consumption in the East, while there have been reductions to volumes in the West: this has led to cigarette companies migrating Eastwards. As a result, Filtrona has responded by realigning its manufacturing footprint. Filtrona has opened a new factory in Hungary and a new Regional Development Centre in Indonesia. It is also expanding capacity in Asia to provide a customer-focused, locally-adaptable service, all supported by the strength and expertise of Filtrona's global operation.
[b]TCO: Filtrona has about a dozen factories in the world. How to control the quality of final products of different factories?[/b]
Franklin: Ensuring its customers receive the highest quality of products and services has always been of crucial importance to Filtrona and guaranteeing this level of quality on a global scale is not without its challenges. To manage this, Filtrona has several interrelated standards in place.
Each manufacturing location adheres to critical qualifications and international standards such as ISO9000/14000/18000. All locations are working towards a business excellence model using the International Quality Rating System (IQRS) which ensures that Filtrona improves its systems and practices and aims to become the best in the manufacturing sector. Filtrona also has a Global Quality System in place which helps the company by standardizing customer feedback, quality and problem solving evaluation methods, as well as sharing lessons learnt and best practices across the group. For example, one of the steps that have been taken is ensuring that the Six Sigma quality management methodology is practiced across all Filtrona locations so that it becomes part of the company culture.
This combination of measures enables Filtrona to optimize its quality levels and ensure its customers receive the same high level of quality at every Filtrona site, from Indonesia, to the United Kingdom and Mexico.
[b]TCO: How many cigarette filters are being produced by your company each year? Is it increasing or decreasing? Can you explain the reason?[/b]
Franklin: There is a natural ebb and flow in the number of cigarette filters being produced each year but Filtrona is moving towards a better product mix that provides greater added value to our customers. Changes are dependent on smoker's preferences and trends as well as in house/ outsourcing decisions.
[b]TCO: Filtrona has produced several series of cigarette filters. Which one is the most popular one?[/b]
Franklin: The largest volume filters are the industry standard monoacetate, followed by the industry standard active acetate dual. For non-industry standard; the recess filter - part of the Icon range - is the most popular as well as Superslim variants in all our ranges.
[b]TCO: The cigarette industry is trying to produce harm-reduced products. What kind of role of filter can play in this trend?[/b]
Franklin: The competitive advantage of Filtrona is providing innovative solutions for specific markets and customers. A lot of work is ongoing in the development of new and more effective carbon filters. This work includes the development of mono carbon filters, the more effective production of current carbon products and the use and production of filters with higher carbon loading. Research is still continuing to develop more effective carbons, carbons that are impregnated to make them more selective to harmful compounds and the use of other granular adsorbents for the reduction of harmful compounds.
A good example of innovative solutions for a specific market are the filters which can be used to help meet the new requirements from The Chinese State Tobacco Monopoly Administration (STMA); specifically, for the reduction of the 7 chemicals (CO, HCN, NNK, NH3, B[α]P, crotonaldehyde and phenol) that are deemed to be the most harmful components of cigarette smoke. For example, Filtrona's HCNR™ filter offers significantly enhanced reduction of Hydrogen Cyanide (HCN) whilst also improving the vapour phase reduction characteristics when compared to filters using standard carbon alone.
[b]TCO: Nowadays, consumers more and more care about environmental issues. What actions had been taken by Filtrona in this field?[/b]
Franklin: Filtrona is working hard to make Green Manufacturing a reality, not only through practical measures but also through a more holistic approach. Naturally we are keen to ensure that our customers benefit from the economic benefits that Green Manufacturing can provide, but it is also incredibly important to Filtrona to contribute actively to a better environment.
To achieve this, Filtrona complies with strict international standards and has a total commitment towards the environment and sustainability which is achieved through both processes and product solutions. The Continuous Improvement Programme (CIP) is one example of these processes. This programme uses a combination of well-known manufacturing management techniques, such as Kaizen and Six Sigma, along with the company's own initiatives, which are all supported by a high level of employee input and engagement. Since its introduction, the CIP has already contributed significantly towards Filtrona's Green Manufacturing goals by providing a platform for the introduction of a number of practical improvements. In 2009 for example, these improvements have resulted in energy savings of 13.9% of the group's overall energy consumption but equally importantly, the environmental benefit has been a reduction in CO2 emissions of 3,204.9 tonnes - the equivalent of taking over 1000 cars off the road for a year.
In the long-term, Filtrona continues to design and develop new more environmentally friendly products and processes. Superior manufacturing processes and methodology are also under constant development. This will ensure that Filtrona meets consumers' growing concerns about environmental issues.
[b]TCO: Which market is your key market? How many filters are being sold to Asia market each year? How many to China market?[/b]
Franklin: Filtrona is a global business and sells to customers in over 70 countries including China, India, Indonesia, Russia, South Korea, Thailand and the USA. As would be expected from the global distribution in the consumption of cigarettes, a large proportion of filter volume is produced for Asia. China is currently a small, but very important market for Filtrona.
[b]TCO: How do you think about China cigarette market and technology development? How to catch the opportunities in this period? What's your suggestion to China cigarette industry?[/b]
Franklin: China has massive infrastructure and equipment investment. Although cigarettes have tar levels which are relatively higher compared to Western markets, there is a growing tendency to reduce tar delivery without affecting the taste of the cigarette. Having said this, the STMA has already identified these issues and have recommended guidelines on certain specific compounds (listed above) and this will necessitate advanced filter solutions for the Chinese market.
[b]TCO: What's your company strategy in cigarette filter field? How to understand the meaning of your company's motto "the difference is everything"?[/b]
Franklin: Filtrona's business is built upon four cornerstones: quality, partnership, innovation and knowledge, and it is Filtrona's ability to offer all of the benefits associated with these cornerstones that sets it apart from the rest of the market. The cornerstones reflect the component parts of Filtrona's identity and are brought together by the statement, "The difference is everything"
[b]TCO: What's your company's biggest challenge?[/b]
Franklin: Filtrona 's biggest challenge is to ensure that the company continues to be aligned to the changing needs of customers in relation to cost, innovation, flexibility, pace of action, and environmental friendliness.
[b]TCO: Which company is your company's competitor? How do you think about it?[/b]
Franklin: Filtrona is the main filter solution provider to the cigarette market and therefore only has limited competition for the high-end solutions market. However, many customers make conventional filters themselves and there are also smaller, independent, local manufacturers. Filtrona has various IP solutions and protecting this from competitors is very important for us.
[b]TCO: How to keep the leading position in filter industry in a long run?[/b]
Franklin: By aligning Filtrona to the changing needs of customers and providing them with solutions that meet these changing needs in relation to cost, innovation, flexibility, pace of action and being; environmental friendly. Another key focus for Filtrona is the development of collaborative research and development partnerships with its customers. The subsequent sharing of knowledge, ideas and expertise means the company is able to provide the highest level of service as well as the most appropriate bespoke, or standard, product solution to suit the customer's needs.
[b]TCO: How do you think about the trend of the filter industry?[/b]
Franklin: This is aligned to cigarettes developments: Pace, Innovation, Costs, Flexibility, Sustainability, are all the key drivers. We see developments in Superslims and Reduced Risk, as well as ATP. This is an exciting time for us. Enditem
