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Description
HERTI is a leading European manufacturer of aluminium ROPP caps, plastic and composite closures which have a unique design, functionality and convenience. The company produces almost any possible dimension of aluminium closures and suggests packaging solutions to many clients producing wine, spirits, non-alcoholic beverages, mineral water and olive oil. The company’s production premises are located in the town of Pliska, Bulgaria, where the GALP project will be implemented.
The overall objective of the project is to increase the competitiveness of HERTI by introducing a new innovative process of printing and varnishing of aluminium sheets and implementation of industry 4.0. The management of HERTI intends through this project to develop and implement “greener” production processes through purchasing "Coating and Varnishing Machine" and "Printing Machine" of the latest generation, based on the “PrintabLED” technology. The project will contribute to the strengthening of the bilateral relation between the company and the Norway partner ICB DIGITAL AS by involving a new knowledge and specific problem-solution inputs. The goal of the experimental development carried out by HERTI and ICB DIGITAL AS is to connect the purchased machines with a cloud system, which will allow the factory to automate further the manufacturing process as well as make better decisions for scaling the business. ICB DIGITAL AS is an innovative Norwegian software company focused on enabling digitalization processes in industrial enterprises and production environments. As results the project will achieve optimized production, increased capacity, improved product quality, shorter production and delivery times, reduced costs and a positive environmental effect.
The project has been awarded an additional support for introducing an innovative equipment for production of 22x30 size aluminium cups.
Summary of project results
The company faced several challenges related to the state of its production process, specifically related to the lacquering and printing operations, as follows:
1. Aging Equipment and Operational Inefficiency
- The available equipment consisted of significantly outdated equipment, with low operational efficiency, higher maintenance requirements, and energy consumption issues, which increased production costs.
2. Environmental and Energy Efficiency Concerns
The company was under pressure to adopt greener manufacturing processes. The existing setup, particularly the use of natural gas in Line 3 and older energy-intensive equipment in Lines 1 and 2, did not align with sustainability goals or energy efficiency benchmarks.
- Regulatory and market expectations drove the need to reduce the environmental footprint, which the current operations struggled to meet.
3. Limited Productivity and Capacity Constraints
The aging machines limited productivity due to slower speeds, frequent maintenance needs, and higher defect rates.
- Capacity was constrained, particularly in the printing department. The reliance on all printing needs created a bottleneck during periods of high demand. The company’s ability to scale operations or handle large orders was limited without significant investments.
4. Dependence on Fossil Fuels
- The reliance on a natural gas-powered drying furnace made the company vulnerable to rising energy costs and regulatory measures aimed at reducing greenhouse gas emissions. Transitioning to alternative, energy-efficient technologies was essential to mitigate these risks.
5. Risks of Disruption
The setup''s dependence on outdated machinery increased the risk of breakdowns, leading to potential disruptions in production schedules and delayed order fulfillment.
The project implemented by the company encompassed a comprehensive upgrade of equipment, processes, and systems to address operational inefficiencies, enhance production capacity, and meet sustainability objectives. Below is a detailed description of the activities undertaken and the outputs achieved:
1. Equipment Upgrades in Coating, Varnishing, and Printing Operations
- Modernization of Coating and Varnishing Line: The company replaced part of an outdated varnishing line with a new coating and varnishing machine. This upgrade significantly improved the efficiency and energy performance of varnishing operations.
- Introduction of a New Printing Line: A new printing line utilizing advanced technology (PrintabLED) was installed. This line replaced 80% of the workload of the existing printing line, which relied on natural gas. The new line does not use natural gas, reducing energy consumption and operational costs while increasing productivity.
2. Increased Production Capacity
- The new technological processes and equipment upgrades collectively resulted in a 15.5% increase in production capacity.
- Additional funds enabled the purchase of specialized equipment (automatic sheet feed press and pressure cutting machine), further expanding production capabilities, particularly for the production of 22x30 mm aluminum caps.
3. Improved Energy Efficiency and Sustainability
- Energy Intensity Reduction: The project reduced the company’s energy intensity by 17.8%, primarily through: Transitioning from gas-powered to gas-free printing technology and Improved energy-efficient equipment in the varnishing process.
- Electricity Savings: The new systems achieved considerable reductions in electricity consumption.
- Waste Reduction: Process improvements minimized material waste by 1-3%, contributing to sustainability goals and lowering production costs.
4. Integration of Digital Solutions
- Digitalization Process: A significant component of the project was the integration of new equipment into a digital monitoring and reporting system. This addressed a key operational weakness—limited digitalization of processes. The company collaborated with Norwegian Partner ICB Digital AS, leveraging their expertise to ensure seamless integration of the equipment into a centralized digital system. The new digital system enhanced real-time monitoring, reporting, and operational decision-making.
5. Addressing Challenges in Aluminum Cap Production
- To tackle challenges related to the production of 22x30 mm aluminum caps, the project included:
- Automatic Sheet Feed Press: Improved precision in cutting aluminum sheets into strips, reducing errors and quality deterioration during the punching process.
- Pressure Cutting Machine: Enhanced accuracy in punching operations, minimizing production waste.
- Improved Lubrication Processes: The project addressed uneven lubrication of aluminum strips, which previously caused defects in cap drawing quality and increased scrap rates. The new equipment ensured consistent lubrication, leading to improved product quality and reduced waste.
The project delivered substantial improvements across various operational aspects:
- Production Capacity: Increased by 15.5%, with enhanced efficiency in varnishing and printing.
- Energy Efficiency: Achieved a 17.8% reduction in energy intensity and eliminated reliance on natural gas in printing operations.
- Waste Reduction: Reduced waste materials by 1-3%, improving sustainability and cost-efficiency.
- Digital Transformation: Integrated advanced equipment into a digital monitoring and reporting system, enhancing process control.
- Enhanced Product Quality: Addressed challenges in cap production, improving product precision, reducing errors, and minimizing waste through specialized equipment.
These activities and outputs collectively positioned the company for sustainable growth, improved competitiveness, and compliance with modern environmental and operational standards.
The project delivered significant economic, environmental, and social outcomes, driving innovation and sustainability. Modernization of Herti AD''s production lines increased capacity by 15.5%, improved energy efficiency by 17.8%, and reduced waste by 1-3%, while annual CO2 emissions were cut by 819 tonnes. Integration of a digital monitoring system, developed with Norwegian partner ICB DIGITAL AS, addressed operational inefficiencies and advanced digital transformation.
The project enhanced Herti AD''s competitiveness, securing its market leadership amidst global competition, and contributed to regional economic development by ensuring stable employment for 500 workers. The green initiatives supported climate change mitigation and resource efficiency, benefiting the environment. Beneficiaries included Herti AD, its local community, the environment, and ICB DIGITAL AS, which gained valuable insights for refining its digital solutions. The project''s success aligned with the Norway Grants Programme’s goals to reduce disparities and promote innovation across Europe.
Summary of bilateral results
ICB DIGITAL AS and Herti had established a collaborative partnership grounded in their shared vision of promoting technological innovation to advance a greener and more sustainable industrial landscape. Their alliance focused on the mutual goal of modernizing operational processes and embracing digitalization as a key driver for eco-friendly production.The cooperation was particularly impactful during the project''s implementation phase, where the partnership displayed a unique synergy that met the project''s objectives and laid the groundwork for sustained collaboration. Recognizing the weaknesses in the operational processes of the companies, the management team identified digitalization as a critical area for improvement. ICB DIGITAL AS, leveraging its expertise, played a pivotal role in delivering this aspect of the project. Their contribution ensured that the new equipment was seamlessly integrated into a comprehensive digital monitoring and reporting system, which was concurrently being developed to enhance operational efficiency and oversight.For ICB DIGITAL AS, the collaboration offered a valuable opportunity to gather practical feedback and insights, particularly regarding the application of their UPKIP product. These insights enabled them to refine and adapt their solutions for industries with similar production processes in Norway, thereby enhancing their competitive edge and technological offerings.Even after the project''s official completion, the partnership remained active, reflecting a shared commitment to ensuring the long-term sustainability and effectiveness of the implemented systems. This enduring relationship exemplified the strength of bilateral cooperation between the two companies, bridging Norwegian and Bulgarian expertise to achieve common innovation and sustainability goals while creating a benchmark for industry practices in both countries.