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Morgancoat: where innovation meets local craftsmanship

Morgancoat isn’t just another name in the self-adhesive label-stock market – it’s a brand that breathes life into the labels you see every day. At the heart of this South African company lies a commitment to quality, sustainability and innovation, all driven by a passion for crafting exceptional pressure-sensitive label materials.

5 September 2024
in Acquisitions & evolutions
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01 Morgancoat Main ED

‘We pride ourselves on quality and service,’ comments managing director Marc Black. ‘From barcode labels to full-colour product labels, there’s a good chance that the labels you encounter daily started life right here in our factory.’

Morgancoat excels in local coating and laminating, offering expertise in crafting application-specific, custom-tailored solutions to meet unique product requirements. The company sources high-quality raw materials, including paper, film and adhesives, from the world’s leading mills. These materials are then transformed into top-tier pressure-sensitive label stock at Morgancoat’s state-of-the-art smart factory in Durban. The facility boasts multiple converting lines, guaranteeing a reliable supply of high-quality material to support Southern Africa’s thriving market.

Capacity has been further enhanced with the addition of a new high-speed, fully automatic hotmelt coating line, designed for export opportunities and speciality products. ‘With a potential annual single-shift output of 100 million square metres, we have ample capacity to meet a significant portion of market demand without straining our operations,’ Marc says.

02 Morgancoat Main ED
06 Morgancoat Main
09 Morgancoat Main ED
08 Morgancoat Main

Morgancoat’s customers, who operate some of the industry’s most advanced label printing equipment, trust the company’s products to deliver exceptional results. Once printed and die-cut, the converted rolls of labels are supplied to brand owners and end-users, ready for application across a diverse range of products.

‘Our factory is designed for efficiency,’ Marc explains. ‘Nearly every process has been systematised and automated, not to replace our team but to elevate their capabilities and allow them to focus on their core strengths. Our dedicated team of in-house software developers, expertly led by Tom Van Den Bon, our lead developer and systems architect, ensures these systems run seamlessly and are continuously improved.’ 

Smart solutions for a rapid market

To keep pace with the fast-moving demands of today’s businesses, Morgancoat introduced MC Express, an on-demand delivery service tailored for Cape Town and its surrounding areas. MC Express operates like clockwork, leveraging a live online catalogue that lets customers order their stock directly from a dedicated portal. Within four to six hours, pre-made label stock is delivered, ensuring that customers have what they need, exactly when they need it.

‘MC Express is our way of adapting to the needs of a market that demands speed and reliability,’ remarks sales director Brendon Toontas. ‘We carry a variety of common sizes, and if you need something specific, let us know – we’ll make sure it’s available on demand.’ According to Brendon, the swift success of MC Express indicates that expanding into other regions or territories is likely on the horizon, with a potential franchise model also being considered.

Morgancoat’s success isn’t just about machines and materials – it’s about people. The company’s 60-plus staff are the backbone of its operations, and their welfare is a top priority. A fully equipped on-site restaurant provides balanced meals throughout the day, while top-notch entertainment facilities and a functional gym ensure that employees stay fit, healthy and happy.

‘We believe that a healthy, well-cared-for team is key to our success,’ Marc states. ‘It’s not just about providing a job, it’s about creating an environment where people can thrive.’

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07 Morgancoat Main

Sustainability at the core

Morgancoat’s commitment to sustainability goes beyond words – it’s a driving force behind every decision. As a proud member and certified FSC certificate holder, Morgancoat ensures the chain-of-custody for all its paper products, supporting responsible forestry practices. The company is also a registered member of EWASA, actively participating in recycling initiatives and the reduction of landfill waste.

‘Sustainability is a key priority in all our decisions, which is why I accepted a position on the board of directors at EWASA,’ Marc emphasises. ‘We’re constantly working on projects to reduce our carbon footprint and create products that support the drive towards being carbon neutral.’

Morgancoat’s efforts include a grid-tied solar array that generates almost 50% of the factory’s energy needs and innovative product development that offers up to a 15% yield benefit, reducing the carbon footprint with more labels per roll, more rolls per box and more boxes per load.

Looking ahead

Morgancoat’s journey is far from over. With a portfolio that includes fully-recyclable paper alternatives for traditional multi-layer packaging, an entry into the shrink sleeve market and a relentless focus on innovation, Morgancoat is poised to lead the industry into a sustainable future.

‘Why not support local?’ asks Marc. ‘Do your labels come from Morgancoat?’

With over 160 active customers, 258 product lines, 17 MWh of solar energy generated monthly and four tons of CO2 reduction each month, Morgancoat isn’t just making labels – it’s making a difference.

Joining forces with women-owned equity partners

In 2022, Morgancoat took a significant step in its growth journey by partnering with SummerPlace Equity Partners. SummerPlace, a women-owned and managed private equity fund, focuses on investing in medium-sized South African businesses with strong growth potential and sustainable employment creation.

‘Joining forces with SummerPlace has opened new avenues for us,’ MD Marc Black enthuses. ‘We’re now the only BBBEE-rated label stock manufacturer in the country with a level three rating. It’s not just about financial growth; it’s about aligning with partners who share our values and our vision for the future.’

Click here to read this article in the E-mag
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