"The coating and printing technologies for cans have changed over 50 years, but the can lid stayed the same. We aim to change that standard itself."
Park Chan-ho, CEO of Ignis, said this while introducing the resealable can lid "XO Lid" from German subsidiary Xolution at a press briefing held at Ignis' headquarters in Seongdong-gu, Seoul, on the 10th. It was the first time Ignis disclosed its global technology business strategy since acquiring Xolution in 2022.
Ignis has been known as a consumer goods company operating brands such as Hankki Tongsal, Labnosh and Klooup, but it plans to expand its business scope into a B2B (business-to-business) technology company based on its core can-packaging technology.
Park said, "Cans are the best beverage packaging with high recycling rates and excellent light and oxygen barrier performance, but they had the limitation that once opened they could not be closed again," adding, "If resealing becomes possible, we can expand into markets that cans have not entered so far, such as large-size beverages and premium beverages."
Xolution's XO Lid is a can lid that combines a plastic structure so it can be resealed after opening. Ignis said it is currently the world's only resealable can technology to have succeeded in commercialization and mass production.
Park emphasized, "To change the standard of the existing can lid, you need overwhelming technological prowess and the ability for mass production," noting, "Compatibility that allows application with minimal changes to existing production facilities and the ability for mass production are our core competitive strengths."
He added, "Global brands are reviewing adoption after 3 to 5 years or more of safety verification, and we are already supplying to Monster Energy and global beer and RTD (Ready To Drink) brands."
He also said market conditions are turning favorable. Ignis said that when the European Union's (EU) Packaging and Packaging Waste Regulation (PPWR) takes effect, the use of packaging with low recycling rates will be restricted, which will further increase demand for aluminum cans, and that it has already completed related certifications.
Ignis is also accelerating expansion of its production capacity. It is consolidating its production bases, currently split between the Czech Republic and Germany, into Germany and building a new plant. It plans to increase annual production capacity from the current 120 million units to 600 million units next year. In the long term, it plans to establish regional production bases in Europe, Korea and the United States, and run a licensing business in parallel.
The biggest challenge is price competitiveness. Park said, "No matter how good the technology is, if it is 3 to 5 times more expensive than the existing stay-on-tab (SOT) lid, beverage companies will find it hard to adopt," adding, "Once in-house production at the plant is complete, we can cut costs by about 40%, and our goal is to bring it down to a level similar to existing can lids by early 2028."
In the Q&A session, he also mentioned technology entry barriers and plans for an initial public offering (IPO). Park said, "Large corporations can develop the technology, but safety verification alone takes at least 3 to 5 years," adding, "It is most important to secure the market standard in the meantime."
He said he is also in talks with domestic beverage companies. He explained, "Many companies at home and abroad have conducted tests, but commercialization is still difficult due to cost burdens," adding, "We expect demand to grow quickly as prices come down."
On the IPO, he said, "We are continuing preparations for listing and going through the necessary procedures, including selecting underwriters," adding, "We are preparing with next year as the target, but it is hard to fix the timing because we have to consider market conditions comprehensively."