About Silgan Holdings

Silgan Holdings Inc. operates as a manufacturer of sustainable rigid packaging solutions for the world's essential consumer goods products. The company’s products are used for a wide variety of end markets and the company operates 107 manufacturing plants in North America, Europe, Asia and South America. The company’s products include: Dispensing and specialty closures for fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden products; Steel and aluminum containers for pet and human food and general line products; and Custom designed plastic containers for pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive products. The company is a leading worldwide manufacturer and supplier of dispensing and specialty closures for the fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden markets. The company’s leadership position in dispensing and specialty closures is a result of the company’s ability to provide customers with market leading innovation and high levels of quality, service and technological support. The company’s dispensing and specialty closures business provides customers with an extensive variety of innovative dispensing systems and proprietary specialty closures solutions that ensure closure quality and safety, as well as capping/sealing equipment and detection systems to complement the company’s product offering. The company has 44 dispensing and specialty closure manufacturing facilities located in North America, Europe, Asia and South America, from which the company serves over 100 countries throughout the world. In addition, the company licenses its technology to four other manufacturers for various international markets that the company does not serve directly. The company is also a leading manufacturer and supplier of metal containers in North America and Europe, and in North America the company is the largest manufacturer of metal food containers with a unit volume market share in the United States in 2023 of more than half of the market. The company has 40 metal container manufacturing facilities located in the United States, Europe and Asia, serving over 50 countries throughout the world. Additionally, the company has the most comprehensive equipment capabilities in the industry. Additionally, the company is a leading manufacturer and supplier of custom containers in North America for a variety of markets, including the pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive markets. The company’s success with custom containers is largely due to its demonstrated ability to provide the company’s customers with high levels of quality, service and technological support, along with the company’s value-added design-focused products and its extensive geographic presence with 23 manufacturing facilities in the United States and Canada. The company produces custom containers from a full range of resin materials and offers a comprehensive array of molding and decorating capabilities. The company’s customer base includes some of the world’s best-known branded consumer products companies. Strategy The company’s strategies are to supply ‘best value’ packaging products with high levels of quality, service and technological support; maintain low cost producer position; expand through acquisitions and organic growth; and enhance profitability through productivity improvements. Business Segments The company is a holding company that conducts its business through various operating subsidiaries. The company operates through three business segments: Dispensing and Specialty Closures; Metal Containers; and Custom Containers. Dispensing and Specialty Closures The company is a leading worldwide manufacturer and supplier of dispensing and specialty closures for the fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden markets. The company’s dispensing and specialty closures business provides customers with an extensive variety of innovative dispensing system solutions, including integrated dispensing packaging solutions, and proprietary metal and plastic specialty closures that ensure closure quality and safety, as well as capping/sealing equipment and detection systems to complement the company’s specialty closures product offering. The company has 44 dispensing and specialty closures manufacturing facilities located in North America, Europe, Asia and South America, from which the company serves over 100 countries throughout the world. In addition, the company licenses its technology to four other manufacturers for various markets that the company does not serve directly. Since 2003, following the company’s acquisition of the White Cap closures operations in the United States, the company has grown its Dispensing and Specialty Closures business through acquisitions and organic growth. The company’s Dispensing and Specialty Closures business manufactures dispensing systems for the precision dosing of fragrance and beauty, personal and health care, home care, lawn and garden and food products, such as perfume and other fragrance and beauty products; skin care, lotion, cosmetic, health care nasal spray and other topical application, soap, hair care and other bath and body products; hard surface cleaning, professional cleaning and air and fabric care products; lawn care and other garden products; and condiments and other food products. With the company’s acquisition in 2020 of the Albea Dispensing Business, the company expanded its dispensing systems portfolio, including for highly engineered pumps, sprayers and foam dispensing solutions for the beauty, fragrance and personal care markets. With the company’s acquisition in 2021 of Silgan Specialty Packaging, the company further grew its dispensing systems portfolio with integrated dispensing packaging solutions offerings. The company’s acquisition in 2021 of Silgan Unicep complemented the company’s global dispensing and specialty closures business by expanding and extending the company’s precision dosing capabilities and comprehensive product offering into new and existing markets and broadened the company’s exposure to health care and Point-of-Care diagnostics markets. The company also manufactures metal and plastic specialty closures, many of which maintain a vacuum for safety and extended shelf-life purposes, for food and beverage products, such as ready-to-drink teas, sports and enhanced drinks, dairy products, juice drinks, tomato sauce, salsa, pickles, baby food, ketchup and other condiments, preserves, soup, cooking sauces, gravies, fruits and vegetables. The company provides customers for its specialty closures with custom formulations of sealing/lining materials, designed either to minimize removal torques and enhance openability of the company’s closures or to maintain sealability of the company’s closures, in each case to meet the unique needs of the company’s customers while also meeting applicable regulatory requirements. The company offers its customers an extensive range of decorating options for the company’s dispensing and specialty closures for product differentiation. The company also provides customers with sealing/capping equipment and detection systems to complement the company’s specialty closures product offering. As a result of the company’s extensive range of dispensing and specialty closures, the company’s geographic presence and its focus on providing market leading innovation and high levels of quality, service and technological support, the company is uniquely positioned to serve the fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden markets for all of their dispensing and specialty closure needs. Metal Containers The company is a leading manufacturer and supplier of metal containers in North America and Europe, and in North America the company is the largest manufacturer of metal food containers with a unit volume market share in the United States in 2023 of more than half of the market. The company’s Metal Containers business is engaged in the manufacture and sale of steel and aluminum containers that are used primarily by processors and packagers for food products, such as pet food, vegetables and fruits, soup, proteins (e.g., meat, chicken and seafood) and other miscellaneous food products, as well as general line metal containers for products, such as promotional products. With the company’s acquisition in 2021 of Easytech, the company increased its manufacturing capacity for easy-open ends for metal containers. The company has 40 metal container manufacturing facilities located in the United States, Europe and Asia, serving over 50 countries throughout the world. The company has increased its market share of metal food containers in the United States primarily through acquisitions and growth with existing customers, and has enhanced its business by focusing on providing customers with high quality, high levels of service, a more sustainable solution for their packaging needs and value-added features such as the company’s family of Quick Top easy-open ends, shaped metal food containers and alternative color offerings for metal food containers. In addition, the company has made and continue to make significant capital investments to enhance the competitive advantages of metal containers for food. Custom Containers The company produces custom containers from a full range of resin materials and offers a comprehensive array of molding and decorating capabilities. The company is one of the leading manufacturers of custom designed high density polyethylene, or HDPE, and polyethylene terephthalate, or PET, containers in North America for the markets that the company serves. The company is also a leading manufacturer in North America of thermoformed barrier and non-barrier bowls and trays for shelf-stable food products. The company operates 23 custom container manufacturing facilities in the United States and Canada. The company manufactures custom designed and stock plastic containers for food and beverage products, including peanut butter, salad dressings, condiments, spices, dairy products and liquor; consumer health and pharmaceutical products, including respiratory products, gastrointestinal products, tablets, antacids, mouthwash and other health and pharmaceutical products; personal care products, including shampoos, conditioners, hand creams, lotions, liquid soap and other cosmetics and toiletries; home care products, including cleaning products; lawn and garden products; and automotive care products. In addition, the company manufactures thermoformed barrier and non-barrier bowls and trays for food products, such as pet food and soups and other ready-to-eat meals, as well as thermoformed tubs for food products. The company also manufactures plastic closures, caps, sifters and fitments for food and household products, including salad dressings, condiments, peanut butter, spices, liquid margarine, powdered drink mixes and arts and crafts supplies. The company’s leading position in the custom container market is largely driven by its rapid response to the company’s customers’ design, development and technology support needs and the company’s value-added, diverse product line. This product line is the result of the company’s ability to produce custom containers from a full range of resin materials using a broad array of manufacturing, molding and decorating capabilities. The company also strives to remain current with, and to some extent, anticipate innovations in resin composition and applications and changes in the technology for the manufacturing of custom containers. The company benefits from its large scale and nationwide presence, as significant consolidation is occurring in many of the company’s customers’ markets. Through these capabilities, the company is well-positioned to serve its customers, who demand customized solutions as they continue to seek innovative means to differentiate their products in the marketplace using packaging. Manufacturing and Production As of February 1, 2024, the company operated a total of 107 manufacturing facilities in 20 different countries throughout the world that serve the needs of the company’s customers. Dispensing and Specialty Closures Business The company utilizes two basic processes to produce dispensing systems and plastic closures. In the compression molded process, pellets of resin are heated, extruded and then compressed to form a shell. The shell can include a molded linerless seal or a custom formulated, compression molded sealing system. The shell can then be slit and printed depending on its end use. In the injection molded process, pellets of resin are heated and injected into a mold, forming either a shell or other dispensing systems component, such as a trigger, decorative shroud, actuator, valve or overcap. The shell can include a molded linerless seal or a custom formulated sealing system. The shell can then be slit and printed depending on its end use. In the case of a dispensing system, the dispensing system components are assembled into the dispensing system and can be printed depending on the end use of the dispensing system. The manufacturing operations for metal closures include cutting, coating, lithographing, fabricating and lining. The company manufactures twist-off, lug style and press-on, twist-off steel closures and aluminum roll-on closures for glass, metal and plastic containers, ranging in size from 18 to 110 millimeters in diameter. The company employs multi-die presses to manufacture metal closures, offering a low-cost, high quality means of production. The company also provides customers of its dispensing and specialty closures business with custom formulations of sealing/lining materials, designed to optimize torque removal and enhance the openability of the company’s closures while meeting applicable regulatory requirements. Metal Containers Business The manufacturing operations of the company’s metal containers business include cutting, coating, lithographing, fabricating, assembling and packaging finished cans. The company uses three basic processes to produce cans. The first two methods of producing cans start by forming a shallow cup that is then formed into the desired height using either the draw and iron process or the draw and redraw process. Using the draw and redraw process, the company manufactures steel and aluminum two-piece cans, the height of which generally does not exceed the diameter. For cans the height of which is greater than the diameter, the company manufactures steel two-piece cans by using a drawing and ironing process. The third method is the traditional three-piece method that requires three pieces of flat metal to form a cylindrical body with a welded side seam, a bottom and a top. High integrity of the side seam is assured by the use of sophisticated electronic weld monitors and coatings that are thermally cured by induction and convection processes. The company manufactures can bodies and ends from thin, high-strength aluminum alloys and steels by utilizing proprietary tool and die designs and selected can making equipment. The company also manufactures its Quick Top easy-open ends from both steel and aluminum alloys in a sophisticated precision progressive die process. The company regularly reviews its Quick Top easy-open end designs for improvements for optimum consumer preference through consumer studies and feedback. Custom Containers Business The company utilizes two basic processes to produce custom containers. In the extrusion blowmolding process, pellets of resin are heated and extruded into a tube. A two-piece metal mold is then closed around the tube and high pressure air is blown into it causing a bottle to form in the mold’s shape. In the injection and injection stretch blowmolding processes, pellets of resin are heated and injected into a mold, forming a preform. The preform is then blown into a bottle-shaped metal mold, creating a bottle. The company’s thermoformed bowls, trays and tubs are manufactured by melting pellets of resin into an extruded sheet. The sheet is then formed in a mold to make the bowl, tray or tub. The company has decorating equipment, including several of the largest sophisticated decorating facilities in the United States. The company’s decorating methods for custom containers are in-mold labeling, which applies a plastic film label to the bottle during the blowing process, and post-mold decoration. Post-mold decoration includes silk screen decoration which enables the applications of images in multiple colors to the bottle; pressure sensitive decoration which uses a plastic film or paper label with an adhesive; heat transfer decoration which uses a coated label applied by heat; and shrink sleeve labeling. Sales and Marketing The company markets its products primarily by a direct sales force, including manufacturer's representatives, and for the company’s custom containers business, in part, through a network of distributors. The company’s metal containers business generally sells to customers within a 300 mile radius of its manufacturing plants. Dispensing and Specialty Closures Business The company is a leading worldwide manufacturer and supplier of dispensing systems and specialty closures for the fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden markets. The company has 44 dispensing and specialty closure manufacturing facilities located in North America, Europe, Asia and South America, from which the company serves over 100 countries throughout the world. The company’s largest customers of its Dispensing and Specialty Closures business include Campbell (Campbell Soup Company), The Coca-Cola Company, Colgate-Palmolive Company, Dairy Farmers of America, Estee Lauder Companies, Inter Parfums Holdings, S.A., The Kraft Heinz Company, or Kraft Heinz, L'Oreal S.A., LVMH Moët Hennessy Louis Vuitton, Mizkan Holdings Co., Ltd., Molson Coors Brewing Company, Mt. Olive Pickle Company, Inc., Natura & Co., Nestle S.A., or Nestle, O Boticário, PepsiCo Inc., Prime Hydration, LLC, The Procter & Gamble Company, Puig, S. C. Johnson & Son, Inc., The Scotts Company LLC, Spectrum Brands Holdings, Inc., STADA Arzneimittel AG, and Unilever, plc. The company has multi-year supply arrangements with many of the company’s customers in the United States. Outside of the United States, the Dispensing and Specialty Closures business has had long-term relationships with most of its customers. While the company has multi-year supply arrangements with some of the company’s Dispensing and Specialty Closures customers outside of the United States, as is common practice, many supply arrangements with customers outside of the United States are negotiated on a year-by-year basis. In addition, the company licenses its technology to four other manufacturers who supply products in Israel, South Korea, South Africa, the Indian Ocean Islands, the Philippines, and Thailand. Metal Containers Business The company is a leading manufacturer and supplier of metal containers in North America and Europe, and in North America the company is the largest manufacturer of metal food containers with a unit volume market share in the United States in 2023 of more than half of the market. The company has 40 metal containers manufacturing facilities located in the United States, Europe and Asia, serving over 50 countries throughout the world. The company’s largest customers for these products include Campbell, Conagra Brands, Inc., Del Monte, Eagle Family Foods Group LLC, General Mills, Inc., Goya Foods, Inc., Hill's Pet Nutrition, Inc., Hormel Foods Corporation, Kraft Heinz, Mars, Incorporated, Nestle, Nortera Foods Inc., O-AT-KA Milk Products, LLC, Pacific Coast, Stanislaus Food Products Company, Thai Union Group and Tony Downs Foods Co. The company has entered into multi-year supply arrangements with most of its customers for the company’s Metal Containers Business. In Europe, the company’s Metal Containers business has had long-term relationships with many of its customers, although, as is common practice, many supply arrangements are negotiated on a year-by-year basis. The company has supplied Nestle with substantially all of its U.S. metal food container requirements. The company also supplies Nestle with dispensing solutions and metal and plastic closures in North America and Europe and plastic containers in North America. In 2018, the company entered into long-term supply agreements with Nestle that run through 2025 for the supply of all of Nestle’s North American metal food container requirements for pet food and other food products and to support growth initiatives of Nestle. These long-term supply agreements replaced previous supply agreements with Nestle. Each of these long-term supply agreements provide for certain prices and specify that those prices will be increased or decreased based upon price change formulas. The company’s metal containers business’ sales and income from operations are dependent, in part, upon the vegetable and fruit harvests in the midwest and western regions of the United States and, to a lesser extent, in a variety of national growing regions in Europe. The size and quality of these harvests varies from year to year, depending in large part upon the weather conditions in those regions. Because of the seasonality of the harvests, the company has historically experienced higher unit sales volume in the third quarter of the company’s fiscal year (year ended December 2023) and generated a disproportionate amount of the company’s annual income from operations during that quarter. Custom Containers Business The company is one of the leading manufacturers and suppliers of custom designed and stock plastic containers sold in North America for a variety of markets, including the pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive markets. The company is also a leading manufacturer and supplier in North America of thermoformed barrier and non-barrier bowls and trays for shelf-stable food products and pet food products. The company markets its custom containers in most areas of North America through a direct sales force and a large network of distributors. The company also markets certain stock plastic containers through an on-line shopping catalog. The company’s largest customers for its custom containers business include Badia Spices Inc., Berlin Packaging LLC, Conagra Brands, Inc., General Mills, Inc., Kraft Heinz, Lactalis Canada Inc., Mars, Incorporated, McCormick & Company, Incorporated, Nice-Pak Products, Inc., Perrigo Company plc, The Procter & Gamble Company, The Scotts Company LLC, TricorBraun, Inc. and Winland Foods, Inc. The company has arrangements to sell some of its custom containers to distributors, who in turn resell those products primarily to regional customers. Custom containers sold to distributors are generally manufactured by using generic and custom molds with decoration added to meet the end users’ requirements. The distributors’ warehouses and their sales personnel enable the company to market and inventory a wide range of such products to a variety of customers. The company has multi-year supply arrangements with the majority of its customers for the company’s custom containers business. In addition, many of the company’s supply arrangements with the company’s customers are for custom containers made from proprietary molds. Competition Dispensing and Specialty Closures Business The company’s dispensing and specialty closures business competes primarily with AptarGroup, Inc., Bericap Holding GmbH, Berry Global Group, Inc., Closures Systems International, Inc., Crown Holdings, Inc., Eviosys Packaging Switzerland GmbH, Guala Dispensing Mexico, S.A. de C.V., Massilly Holding SAS and Tecnocap S.p.A. Metal Containers Business Of the commercial metal container manufacturers, Crown Holdings, Inc., Eviosys Packaging Switzerland GmbH, Sonoco Products Company and Trivium Packaging are the company’s most significant competitors. Custom Containers Business The company’s custom containers business competes with a number of large national and global producers of custom containers for the pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive markets. These competitors include Alpla-Werke Alwin Lehner GmbH & Co. KG, Amcor plc, Berry Global Group, Inc., Cebal Americas, Altium Packaging LLC, Graham Packaging Company, Plastipak Holdings, Inc. and Pretium Packaging LLC. Governmental Regulations The company is subject to the Occupational Safety and Health Act and other federal, foreign, state and local laws regulating noise exposure levels and other safety and health concerns in the production areas of the company’s plants. History Silgan Holdings Inc., a Delaware corporation, was founded in 1987. The company was incorporated in 1989.