A lot of innovative capacity and the courage to change

Plastic packaging materials, foam for mattresses and medical products brought Greiner AG to the top of the world market.

Greiner AG, which is a not publicly listed joint-stock company, is a global leader when it comes to plastics and foam solutions. The companies of Greiner AG are divided into three areas of competence: Greiner Packaging produces plastic packaging for the food and non-food sectors; Neveon is a leading integrated foam group worldwide and offers flexible and composite foams from polyurethane for a wide range of applications; Greiner Bio-One is a global player in the medical technology and life science sectors. More than 11,000 employees at 130 locations in 34 countries work for the Upper Austrian group. The diversification of products and markets, innovation and globalisation, together with a sustainable corporate orientation, form the basis for continuous, profit-oriented growth. In addition to this there is also the company’s own training centre at the Greiner Campus in Kremsmünster. CEO Axel Kühner reveals his formulas for success and outlines the path to packaging sustainability.

Plastic packaging materials, foams for mattresses and medical products, among others – at first glance, these are completely different fields. Do the three divisions, apart from the common corporate umbrella, have anything in common?
Axel Kühner: The three divisions Greiner Packaging, Greiner Bio- One and Neveon are united by the topic of plastics. After all, foams are also a form of plastics; in all cases, they are products that are intended to make our lives easier and better. Plastic packaging protects food and makes it last longer. Foams provide comfort in mattresses, sofas, and even car seats. And products for medical technology are designed to help people receive faster and better medical treatment.

Are all the divisions within the group on an equal footing, or are there focal points?
Kühner: All three divisions are equally important

Plastic does not have a particularly shiny image, but it is impossible to imagine daily life without it and everyone uses it. How do you deal with this phenomenon?
Kühner: Plastic and sustainability are only contradictory at first glance. Of course, unfortunately, our products also end up in the sea and in the forest, and we are endeavouring to counteract this with a circular economy. But plastic also ensures that food can be kept longer. In addition, plastic requires less energy to produce and use than metal and glass, for example. As our products have become an integral part of our daily lives, we have enormous leverage and responsibility when it comes to reducing emissions.

What do you mean by the term ‘sustainable plastic packaging’?
Kühner: Packaging is sustainable, for example, if it is recyclable, reusable or compostable. This is precisely our goal by 2025 for all packaging from Greiner Packaging. We don’t yet have all the final answers to the question of how we will achieve this, but we are working every day to get closer to this goal.

What are you planning on making more sustainable in your business areas in the future, or is even a circular plastic economy possible?
Kühner: It’s important that we think about recycling right from the product design stage. We have also purchased a Serbian recycling plant in 2022 so that we can produce the recycled PET flakes we need ourselves. In addition, we also try to keep the amount of plastic in our products as low as possible. One example of this is the K3 yogurt cup, which consists of a thin plastic wall and a cardboard wrap. In the new version of this Greiner invention, the plastic and cardboard even separate automatically due to the pressure in the sorting machine. It is products like this that are changing the market.

Are you researching plastic substitutes?
Kühner: Absolutely – one example is our youngest subsidiary Greiner Zeroplast. The former start-up is developing bio-based materials made of fibres, wax or lime, which can then be used in industrial injection moulding. We are supporting Greiner Zeroplast in the technical implementation of the idea through to series production readiness of the products. Through our innovation incubator Greiner Innoventures, we are also involved, for example, in the start-up Hempstatic, which produces soundproof panels from industrial hemp. So, we are always interested in new materials if we see promising and, above all, sustainable innovations in them.

Greiner AG has been 100 percent family- owned since it was founded. What advantages does that bring?
Kühner: This ownership structure has the advantage that long-term goals will always be more important than quick profits. After all, a family doesn’t think in quarters, but in generations. Even though the Greiner family is no longer operationally active in the company, you can still feel the family spirit in the corporate culture in that we try to live the family values. And that is something very valuable in these fast-moving times. In addition, the owners also have an impact through their role on the supervisory board.

What impact do the rising prices of energy, raw materials and labour have on Greiner?
Kühner: Fortunately, the plastics industry is not as energy-intensive as the metal or paper industry, for example, but of course we have felt the volatile energy prices. The raw material situation affects the foam sector in particular; here, purchasing prices are high and in some cases not all the required quantities are available. Inflation is also increasing the pressure on wages and thus also on production costs. Under these conditions, we nevertheless achieved a respectable result in fiscal 2022.

You have more than 11,000 employees in 33 countries. What do you value about Austria as a business location, which is not one of the cheapest?
Kühner: That’s exactly why we have to be the best! In addition to the central location in Europe and the attractive investment environment, it is certainly also the skilled workforce that speaks for Austria as a business location. For example, apprenticeship training is unparalleled in an international comparison. As a result, we are able to train the specialised workers we need ourselves. Nevertheless, the shortage of skilled workers will be one of the greatest challenges in the coming years. One reason for this is the demographic development – think of mass retirement versus low birth rates.

Your headquarters are located in Kremsmünster in Upper Austria. What makes this market town attractive for a company’s headquarters?
Kühner: We are operating worldwide, but at home in Kremsmünster. And even though we now have a steadily growing site in Vienna to take advantage of the labour market potential there, we will always be an Upper Austrian company. At the end of 2022, together with the Province of Upper Austria and the Municipality of Kremsmünster, we opened the new Greiner Bridge, which we co-financed with 1.45 million euros, which is about one third of the actual construction costs. This bridge increases traffic safety in the region and also symbolises the connection that exists between the people of Kremsmünster and Greiner.

What suggestions or wishes do you have for politicians to strengthen Austria’s competitiveness?
Kühner: With regards to the shortage of skilled workers, we must be much more proactive in addressing the issue of immigration. Politicians must have more courage to say why skilled immigration is so important. And they must also ensure that the female work force participation rate increases. We can no longer afford to forego a large part of the workforce potential of women because there are not enough childcare facilities, and it is not worthwhile to pursue fulltime employment. Of course, freedom of choice is needed, but it must become much more attractive and easier to work full-time. The abolition of bracket creep was a right step here, but more needs to happen. However, it is also important that we develop the social will for more participation and diversity.

Where do you see the biggest challenges in the coming years?
Kühner: In the availability of highly qualified specialists. Of course, high energy prices are leading to a transformation and a shift in production. Energy- intensive industry will always go where there are the best location factors. This is a normal, economic change. The question for Austria is: What can we do better than others? It’s not about the lowest production costs, but about expertise, innovative capacity and new technologies. That is why it is so important that we invest more in education and training. That’s where the action will be in future.

Can you imagine a world without plastic?
Kühner: No. Or to paraphrase Loriot: ‘Life without plastic is conceivable, but it doesn’t make sense’.