How First Circle Packaging’s rebrand, diversification and disciplined cost control turned crisis into sustained profitability
Although First Circle Packaging (First Circle) has a heritage dating all the way back to 1945, the plastic packaging company has operated under various names over the years and has more recently undergone a mammoth transformation – a rebrand that marked the beginning of a new strategic direction.
After facing major financial challenges in 2018, First Circle was acquired by Grey Bull Capital the following year – when it was known as Nampak Plastics Europe – and it now focuses deliberately on innovation, cost control, diversification and operational efficiency; pillars that Alvaro Silva, Head of Group Procurement, describes as being “fundamental in returning the business to profitability and building a stronger, more resilient organization.” He explains the first step in turning the business around was to align prices – a decision that saw many clients remain loyal. “Most of our customers understood this and stayed with us,” Alvaro adds. “We also had to control costs more efficiently. We centralized procurement and began tendering across all categories from raw materials and transport to energy and packaging.
“Perhaps most importantly, we diversified. We had been restricted to one industry – dairy – and were primarily making packaging for the dairy sector. We decided to expand both our product range and the industries we served, so while we continue to manufacture a full range of milk bottles, we have significantly expanded our portfolio into other sectors, including home care, automotive, cosmetics, and agriculture.” Today, these newer industrial sectors are the fastest-growing parts of First Circle, and it produces over 200 different SKUs. “At our core, we remain a specialist blow molding manufacturer, working with materials such as HDPE and PET, but with increased flexibility and capability to meet a much broader range of customer requirements,” continues Alvaro. “Now, in 2026, we are a stable and profitable business.”
Supporting such diversification required extensive investment into its manufacturing capabilities and, since 2019, First Circle has installed ten new machines, including PET production lines, which complement the group’s existing HDPE operations. In addition, an increased focus on automation supports its long-term growth strategy. “We had to buy different machines and use different grades of polymer,” Alvaro elaborates. “In short, we invested in new equipment so we could enter the markets we had identified, and in automation to make our operations more efficient. Another innovative project we are still working on is the conversion of hydraulic machines into electric machines, to reduce energy consumption – hydraulic machines use around 40 percent more energy than electric machines.”
And it isn’t simply technological innovation that has played a part in First Circle’s resurgence – sustainability is central to the company’s operations and has been embedded in its processes for many years. “It may seem controversial, but plastic, when used and managed responsibly, is one of the most efficient and recyclable materials available,” Alvaro states. Although it generates 30 percent of production waste, First Circle reprocesses around 98 percent of this internally, with the remaining material returned to suppliers and reintroduced into the supply chain. “We operate as a zero-to-landfill business, and actively incorporate recycled materials into our products, supporting a circular economy model that is very much part of our DNA,” adds Alvaro.
As First Circle’s expansion in new markets continues to drive investment across the business, its priority for the remainder of 2026 is to deliver against ambitious commercial and financial targets – with cost control remaining at the forefront. “Sustaining growth in a disciplined way is key, ensuring we continue to create value for our shareholders while upholding high levels of service and performance for our customers,” he continues. “Five years from now, we want to be market leaders across the sectors we operate in, recognized for our integrity, hard work, and high-performance culture. We want to maintain strong relationships with our suppliers, provide a best-in-class customer experience and continue being a people’s company. I think that’s where we make the difference: it’s our people.
“At First Circle, people are at the very heart of our culture and everything we do – this includes our employees, our suppliers, our customers, and our shareholders,” Alvaro closes. “All these groups are integral to our success, and we work hard to build strong, transparent, and mutually beneficial relationships across each of them. Internally, we have created a flat organizational structure that enables fast and effective decision-making, supported by clear career development pathways so that every individual understands their contribution and is able to grow. Externally, we focus on developing strategic partnerships with our suppliers to drive reliability, innovation and long-term value, while focusing intently on delivering a high quality, consistent and responsive customer experience. Ultimately, by putting people at the center of our business, we create a culture that supports collaboration, performance and sustainable growth for everyone involved in First Circle.”
