Klöckner Pentaplast Group has begun the construction of its first manufacturing facility in China. Located 80km west of Shanghai in the Suzhou Industrial Park in Suzhou, China, the new site will produce packaging films for the growing domestic Chinese market.
The first phase of production capacity will focus on transverse-direction oriented shrink label films, used primarily for full- or partial-body shrink-sleeve applications.
The new 12,000 sqm manufacturing site will house state-of-the-art production equipment, high-tech production control systems and a research and development laboratory. The site will increase Klöckner Pentaplast’s global shrink-films capacity by 6,000 metric tons. The CNY 185.7 million (USD $29.5 million) investment is targeted for completion in first quarter 2013 and is expected to employ 100 people.
Pentalabel shrink films are engineered specifically for full-body or partial shrink sleeve labels, roll sleeve labels, promotion packs/multi-packs, tamper-evident closures, capsules (wine caps), and pressure sensitive labels. The films are typically printed for highly decorated labels that provide food and consumer products with 360-degree graphics.
‘This new site enables us to continue to support our customers’ growing global demand for high-quality packaging films, especially in the dynamic Chinese market,’ said Christian Holtmann, CEO of Klöckner Pentaplast Group. ‘As the world’s leading producer of rigid films, we are excited to expand our presence in China with a broad film portfolio produced utilizing the most advanced production technology to allow regional and global converters and brand companies to source consistent, high-quality films.’
Christopher Frank, managing director, China, for Klöckner Pentaplast, added: ‘The Suzhou Industrial Park is a natural choice as the home of our first manufacturing plant in China. Its focus on innovation, strong infrastructure, and business-friendly environment make it an ideal location. In addition, Suzhou is located close to major metropolitan areas to further enhance our service capability.’
Pictured: Rendering of new Klöckner Pentaplast production facility in Suzhou, China
Click here for more stories about Klöckner Pentaplast on L&L.com.
On September 1, 2011, Schreiner Group opened a new trading company in Shanghai. The business activities of Schreiner Group (Shanghai) Co., Ltd are focused on the automotive, electronics and solar industries.
‘Through the new trading company in Shanghai we assure proximity to our global customers. The Asian region naturally harbors huge growth potential as well,’ said Roland Schreiner, chief operating officer of Schreiner Group and responsible for sales and operations.
In Shanghai, the company offers its wide product portfolio focused on marking products and functional films for engineering industries in line with its German location. The trading company’s qualified sales engineers are familiar with the requirements of the various sectors. Customers in China are now supplied directly from Shanghai which simplifies business transactions and assures short delivery times.
The business organization is closely aligned to collaboration with the German location. A Chinese native speaker based in Oberschleissheim is in charge of internal coordination.
Click here for more stories about Schreiner on L&L.com.
US-based label converting group Astro-Med has announced the divestiture of its label manufacturing operations in Asheboro, North Carolina. The sale was made to the original owners of Label Line.
Everett V. Pizzuti, CEO, stated: ‘The primary business of that facility, producing labels for distributors, was not fully compatible with the business of our QuickLabel Systems Product Group, which produces labels primarily for sale to end user customers who own QuickLabel color printers. Although the divestiture will result in approximately $3 million less in annual revenues in the new fiscal year, the effect on Astro-Med's profitability and cash flow will be positive with annual savings of approximately $400,000.
‘As Astro-Med has expanded its label manufacturing capacity over the past three years in Montreal, Canada; Frankfurt, Germany; and West Warwick, Rhode Island, the sale of the Asheboro plant will have little effect on the company's capabilities to supply labels to our growing base of color label printer customers.’
Click here for more stories about Astro-Med on L&L.com.
Nuova Gidue, a manufacturer of printing and converting machines for the label and packaging industries, will unveil a new press line during an open house event at its premises in Florence, Italy, on February 14-16 2012.
The new M7 Xpannd line offers a flexible configuration for smooth interchangeability of printing and converting processes. Each offset unit, as well as well as flexo, screen and other units, can be removed and replaced on any platform in minutes, as can the new format cassettes (Mini-Cassette).
Integrated in a lean working cell, called the ‘Organizer’, to allow easy change-overs, the versatile press has been designed to fit into limited space (seven platforms and three dies in a space smaller than 8 meters). It can convert a wide range of products, including flexible packaging, labels and carton boxes.
‘We wanted a compact, ultra-flexible labels and packaging press,’ said Sauro Salvadori, M7 project manager. ‘Floor spaces are limited and markets change rapidly, but the M7 can grow and adapt to multiple substrates or processes. We ended up with a top quality printing press, with the look of an easy and accessible tool.’
The open house will also highlight a new version of the company’s M5 Digital Flexo press. An enhanced SW and HW will be unveiled to produce less than 20 meters of waste with automated ‘digital’ set up without intervention of the operator.
Federico d'Annunzio, managing director of Nuova Gidue, said: ‘With the M7, Gidue completes a three-year program to renovate its product offering. We now serve the labels and packaging industry, from narrow to mid web, with a wide range of innovative technologies to produce added value and high quality performance.’
Click here for more information about the open house.
Pictured: An offset unit is installed on the M7 press
Click here for more stories about Nuova Gidue on L&L.com.
Leading Chinese converter Beijing Deji Adhesive Labels is focused on selling service, innovation and value – and expects the same from its suppliers. L&L China editor Kevin Liu reports
In the Daxing district of south Beijing, you will find the China Printing Museum, an official museum dedicated to the history of printing, while in the Changping district of north Beijing, you will find a labeling museum owned by a private company which is fully engaged in label production.
In an exclusive interview with Labels & Labeling China, Yu Dayang, the general manager of Beijing Deji Adhesive Labels & Prints ('Beijing Deji'), said his company is very much like a museum.
‘Almost any kind of label printing machines, including letterpress, offset printing, flexo, digital printing or machines with an online post-press system, you can find in our museum. Any information you want to know about current label printing machines, just come here.’
Dayang compares himself to a museum curator – but a curator who needs to pay attention to the development of his business.
No giants here
Beijing, of course, is the national political and cultural center, and its enterprises are focused on hi-tech and cultural production, especially in the Changping Hi-Tech Industrial Park. Almost half of China’s Growth Enterprise Market (GEM)-listed enterprises are located in this district.
Salaries here are highly competitive, which is not an issue for most GEM companies, where salary is a small proportion of the total enterprise cost. But the label printing industry remains a traditional one, where salary takes up a large part of the cost.
‘There is no way for us to compete with them,’ says Dayang. ‘As a label manufacturer looking for further development, we will establish factories in the urban area between Beijing and Tianjin where all costs are comparatively lower than in Beijing. However, I myself love Changping and our employees also have families here. So we recognized we needed to find a way to handle our company’s development in the competitive economic conditions found in Beijing.’
The way forward for Dayang is for Beijing Deji to become a ‘creative quality’ enterprise.
‘We expect to make full use of our design capability and our experience in different label print technologies to provide a unique service for our customers. Our salesmen are also consultants who will introduce customers to the whole process and range of options available to them.’
Dayang does not want to go after small profits through a quick turnover of clients and will never join in a price war.
‘The business we are pursuing is to provide a valuable service to thoughtful customers. When one customer doesn’t need mass-market labels, when he pursues some special effects, when he expects original thinking to be applied to his labels, that is the time we use our expertise.’
Creative enterprise
Beijing Deji expects a win-win co-operation with its customers: customers get their unique labels and Beijing Deji gets reasonable profits. This is the only way a label converter can sustain a prosperous business.
Providing unique label products for customers requires extensive technical support. Beijing Deji houses an excellent label design team which is generously supported by Dayang in terms of software and hardware investment. To realize each design as a converted label requires ‘smart’ combination printing and converting, and the establishment of the 'Labeling Equipment Museum' is an important step in the realization of this vision at Beijing Deji.
The company owns two Labelmen satellite-type letterpress machines, one Weigang offset machine and one Nipson digital printing press; more recently, it purchased one Hontec 9-color satellite type letterpress from Dongguan and one Beiren Fuji flexo machine. In addition, Beijing Deji has an extensive ability to post-print labels.
‘Except for those obsolete intermittent label printing machines, our current equipment covers all the current main print technologies,’ said Dayang. ‘We use different processes to produce different types of label products and we try to realize some special process effects with using combinations of print processes.’
Following Dayang’s initiatives, the offset presses are now engaged in converting wine labels; digital print systems are used mainly for the business forms and logistics management labels; letterpress mainly for middle/long-run printing; and flexo presses mainly for long-run printing.
‘Take the satellite type 9-color letterpress for example. Our workers operate it quite expertly and the speed of exchanging printing plates is also very fast. Therefore we can use the satellite type letterpress for short-run printing. When we introduced the Hontec letterpress from Dongguan we modified this new equipment by adding online die-cutting, hot foiling and screen. We do not simply install equipment – we also try to extend its functionality and enhance automation.’
Labels converting covers such an extensive field that nobody can know everything. Therefore, experience, creativity and a choice of process methods are always necessary. ‘Our solutions are not simply copies but products with intelligence inside,’ says Dayang.
Standard equipment is far from meeting Dayang’s requirements and he expects his facilities to offer unique technology solutions. In 2011, Beijing Deji concluded a cooperation agreement with Beiren Fuji, which gave Dayang the space to implement his ideas.
‘We bought the Beiren flexo machine as a kind of cooperative R&D project rather than a simple purchase. It is the first such machine being launched by Beiren on the Chinese market for the label industry.
‘Beiren is an excellent joint venture partner which has won many prizes, which indicates that this is a strong technology enterprise. Yet in our opinion, they also have a lot to improve in the field of flexo printing and should focus more on their customers’ special requirements. Our chief engineer worked for United Printing (the agent of Mark Andy in China) beforehand and he is quite familiar with the detailed technology of flexo printing manufacturers. Following his suggestion, we decided to work with Beiren.
‘In this cooperation, we provided many exact opinions for Beiren Fuji including the process combination, color match tests for the machines and some detailed improvement points. They in turn feel pleased about this cooperation because they can develop products closely matched to market requirements and they start to understand what the market really needs.
‘If we had cooperated with some internationally famous corporations, the customized machine would be quite expensive, which is difficult for our private enterprise in the short term. But for now, it makes us happy to realize our creativity in this machine based on our experience.’
As a benchmarking exercise, the cooperation between Beijing Deji and Beiren Fuji attracted widespread attention among printing enterprises in the Beijing area. Not long after this flexo press was commissioned by Beijing Deji, other converters looked to Beiren Fuji for a machine with the same configuration.
Dayang gave these companies pertinent advice based on his experience: ‘Do make a cautious consideration of your business and process control before the purchase, otherwise, there may be process conflicts which will lower the production efficiency and you will be unable to show the real efficacy of this machine.’
Dayang believes that label converters in China need to address questions of efficiency if they are to remain profitable. ‘Compared with the extravagant profits at the beginning of the (PS label) era, the profitability of the labeling industry is indeed getting reduced – although compared with the general printing and newspaper industry, to some extent label printing is returning to a reasonable level. Only if an enterprise has its own specialty can label printing still be quite profitable.’
The motto summarizing the corporate culture of Beijing Deji is: 'Specialized in technique, Honesty in my heart'. ‘We seek to combine intelligence and ability, honesty and thoughtfulness. As long as our product is close to this target, we believe customers will also like to pay for your product’s quality and design, for the special value therein. In a word, the label industry is still prosperous,’ says Dayang. Looking towards the future, what is Dayang’s take on digital printing? ‘We believe printing will be digitalized finally though we are not sure about the time frame. Like a craftsman, we will follow the digital journey but based on our traditional experience, which is my favorite role.’
Today, Beijing Deji has become a beacon in the Chinese labels and labeling industry, offering an example which combines perfect culture, creativity and technology. If you are at a loss how to reach the development target of your company, maybe you can have a talk with Dayang, the curator of this ‘labeling equipment museum’, who may well be able to enlighten you.
Pictured: Yu Dayang, general manager of Beijing Deji Adehsive Labels & Prints
This article was published in L&L issue 6, 2011
Steven J.Shifman, president and CEO of Michelman, has been elected to serve on the 2012-2014 Tappi, the international trade organization for the paper and pulp industries, board of directors. He will begin the three-year term in March 2012, with duties including determining policies and providing guidance on the overall affairs of the association.
Since joining Michelman in 1992, Shifman has held multiple corporate positions in sales management, business unit management, chief financial officer, and has been president and CEO since 2003. He has an active community portfolio serving, or having served, on the boards of various civic, philanthropic and arts organizations, including the Jewish Federation of Cincinnati, the Cincinnati Playhouse in the Park, and the Mayerson Jewish Community Center where he is currently the board president.
Click here for more stories about Michelman on L&L.com.
Lucid Dream Software, WebToPrint technology provider, has enhanced its ArtAffirm online PDF editor, preflight and layout tool with Wiki.ArtAffirm.com site.
ArtAffirm enables printers to integrate powerful preflighting with an authoritative Wiki based help system. Print clients submit their artwork files, which are checked according to the printer’s requirements with a preflight tool. Clients then receive automated instructions of why there is an issue – and how to fix it. Each file issue created by clients in any layout application is clearly documented and directly linked inside the online editor to provide immediate feedback and help at the best possible time.
‘In addition printers will save on costs that are caused by re-touching the artwork as well as streamline their workflows considerably resulting in cost-efficiency throughout the whole shop’, said David Lewis, CEO, Lucid Dream Software. ‘The browser based application enhances productivity while at the same time giving the print client full control about their artwork. And what’s more, live interaction with the print service provider enables trusted and highly profitable business relationships to prosper far beyond normal web centric relationships.’
Click here for more stories about Lucid Dream Software on L&L.com.
Schobertechnologies, a subsidiary of Schober, has launched a range of high-capacity and high-speed rotary die-cutting modules.
Schobertechnologies specializes in the development of rotary tools, modules and specialty machines used in film, foil, packaging, nonwovens and paper converting industries. Its products are sold in more than 100 countries worldwide.
The die-cutting modules have a working width of up to 1,000 mm and are designed for production speeds of up to 300m/min. They are available as modular line shaft-driven machines as well as in a hybrid version with individual drive technology.
‘The innovative drive concept of the Schobertechnologies die-cutting module offers higher precision and flexibility due to a precise electronically synchronous run and digital servo-drives,’ said the company in a statement.
The die-cutting modules feature a preset and calibrated pressure adjustment, high-precision bearing assemblies and housings for low temperature running, vibration-free design, micrometric die wear compensation adjustment (GCS) as well as central quick magnetic/anvil disengagement (without loss of registration) in order to ease web threading and consequently shorten the set-up.
Most materials available in roll format can be die-cut, including self-adhesive liner materials as thin as 30 microns.
Click here for more stories about Schober on L&L.com.
Maxcess, a manufacturer of web handling equipment, has launched the Tidland G890 External Element Shaft. This new and improved design is claimed to provide a shaft with enhanced performance features coupled with standardized components.
The Tidland G890 External Element Shaft is aimed at narrow to wide web converters and features an air system design said to ensure maximum up-time while being easy to maintain. The expanding elements insure superior torque for consistent and predictable wound roll tension.
‘The G890 External Element Shaft represents the combined innovation of our European and North American design teams with a rigorous focus on standardization,’ said Sean Craig, global product manager for Tidland Winding.
Click here for more stories about Maxcess on L&L.com.
Siemens Industry has introduced its Simatic Converting Toolbox, a PLC-based control module used in applications with a PLC as the central control system in which process controls are implemented.
The Simatic module completes the application set that includes the Simotion module, a group of motion control converting products, and the Sinamics DCC (drive control chart) module with drive-based converting technology. It offers the capability to integrate full converting lines and machines centralized on the Simatic S7 PLC platform. Functions include center winder, sectional drive control and a host of converting process and large functions. Systems can be implemented in Ladder, structured text or in a graphical functional block language.
Machine builders are now able to achieve considerably faster time to market by reducing the time required for engineering, programming, commissioning and documentation, as much as 80 percent in some cases, says the company. It offers modular open functions, for items such as winding, laminating, cross-cutting, calendaring, perforating, embossing, coating, flying saw, die-cutting, traversing and more.
Components of the Converting Toolbox take the form of pre-programmed functions. Sample applications demonstrate how each function can be effectively and efficiently implemented into a machine design. Some of the applications are ready-to-use after only minor modifications and even include basic HMI functionality.
Click here for more stories about Siemens Industry on L&L.com.
Spinnaker Coating, a manufacturer of adhesive coated papers and films, has become an S Corporation ESOP, effective February 1, 2012. In the transaction, prior investors sold 100 percent of their ownership interest to a newly created Employee Stock Ownership Trust, allowing current and future employees to gain a beneficial ownership interest in the company without any personal investment.
Effectively, says the company, the ESOP is a qualified retirement plan which, based on company performance, could generate ‘significant’ retirement benefits for Spinnaker’s approximately 250 employee owners.
Louis A. Guzzetti, Jr, chairman and CEO of Spinnaker, said: ‘This transaction will give our employees a financial interest in the success of the business, making the positive bonds between Spinnaker teammates even stronger than they are today. It represents a very tangible way to reward those who have played the critical role in Spinnaker’s success since we purchased the assets of our predecessor company out of bankruptcy in 2002.
‘Today, we are a robust competitor in the pressure sensitive industry, based primarily on our customer-driven culture that places service at the top of our priority list. Delivering unparalleled service requires great employees who are focused and dedicated to the business at hand. That clearly describes our team, and we are thrilled to be able to provide this benefit to them.’
Guzzetti, who will continue in his current position, continued: ‘In light of the challenges facing American workers, an ESOP is an excellent way in which to assure the continuation of our world-class customer service model, help retain valued employees, and enhance our company’s productivity and profitability. We expect the ESOP to increase the retirement security of our employee owners, particularly if we continue on the growth path we have enjoyed the last several years.’
Dan Potts, who has been with Spinnaker for 27 years, explained the reasons for his enthusiasm about the ESOP: ‘Throughout my career with Spinnaker, we have had more than our share of ups and downs. In addition to periods of success, there were definitely times when my family and I were concerned about my job and our future – which I imagine is the way a lot of families in America feel today. With the creation of an ESOP, I know that all of us on the shop floor will feel confident that our jobs aren’t going to disappear. We look forward to becoming even more productive members of an organization that we know, by their actions not just words, truly values everyone who works at the company.’
Click here for more stories about Spinnaker on L&L.com.
After the launch of the nyloflex FAM Digital printing plate into the North American market, Flint Group Flexographic Products has now made the medium hard plate available worldwide.
The digital photopolymer printing plate is said to provide clean printing of fine image elements and smooth solids.
nyloflex FAM Digital is suitable for a broad range of applications, especially in flexible packaging printing. Usable for a variety of both absorbent and non-absorbent substrates ranging from textured to very smooth surfaces, the plates are able to print fine process details as well as solids.
According to Flint, nyloflex FAM Digital plates require a lower impression setting, resulting in clean print results and lower dot gain as compared to traditional plates on the market of the same durometer range. Due to its hard-wearing properties, the plates exhibit a long run life with less cleaning stops on press, says the company.
nyloflex FAM Digital plates are offered in 1.14 mm and 1.70 mm thicknesses.
Click here for more stories about Flint Group Flexographic Products on L&L.com.
Rotocontrol has received another purchase order in South Africa from Triocorp for an RSC slitter rewinder with a 340mm web width. Local installation and support will be provided by Rototec, the local agent for Rotocontrol in South Africa.
Representatives from Triocorp attended Labelexpo Europe 2011 where they were provided with a firsthand demonstration of the RSC slitter rewinder's capabilities in the Rotocontrol stand.
Bob Anthony, Triocorp’s production director, commented: ‘Our long-standing relationship with Michael, Patrick and Pascal Aengenvoort was also a key factor in our purchasing decision as they have proven to consistently provide outstanding service and support that we can count on.’
Triocorp supplies blank and color self-adhesive labels, thermal transfer ribbons, litho forms, packaging materials and print technology services throughout South Africa. Headquartered in Durban, Triocorp also has offices in Johannesburg and Cape Town.
Click here for more stories about Rotocontrol on L&L.com.
Portuguese MIS supplier Sistrade aims to increase its presence in the Middle East with the opening of a representative office in Abu Dhabi and a series of reconnaissance trips to the region, including participation at the Pack Print Summit in Dubai in November 2012.
The market has been ‘very receptive’ to Sistrade’s products, says the company, which is now keen to increase its local presence in the region.
Click here for more stories about Sistrade on L&L.com.
Neenah Paper has acquired the branded premium paper portion of Wausau’s Fine Paper division.
‘The acquisition of Wausau brands strengthens the breadth of our existing Fine Paper business with added scale in the marketplace, prospects for growth in new channels such as retail, and the opportunity to provide our customers with better service,’ said Julie Schertell, president, Neenah Fine Paper.
The transaction includes the following brands: premium fine paper brands Astrobrights, Astroparche, Royal Linen, Royal Fiber, Royal Laid, Royal Complements, Royal Cotton, Royal Marble, Royal Metallics, Royal Resource, Wausau Bright White and Creative Collection. Exclusive license rights for a portion of Exact brand specialty business, including Exact Brights, Exact Coated, Exact Digital, Exact Index, Exact Tag and Exact Vellum Bristol.
Schertell added: ‘Astrobrights is the market leading brand in the bright, vivid color segment of our market. We are excited to add this strong brand to our portfolio, as well as the complimentary textures in the Royal brand family. I’m very pleased with our customers’ responses following our initial announcement, as well as the support we have received from the Wausau organization throughout the initial transition phase. As of today, we are taking orders on our new brands and we’re well-positioned for a smooth transition with our customers.’
Click here for more stories about Neenah Paper on L&L.com.
Click here for more stories about Wausau on L&L.com.
ComQi, a provider of digital signage and display technology, recently launched five new place-based mobile applications interacting with digital signage displays in a retail venue. As industry expert Mike Fairley says, ‘It’s one thing to link with digital signage in store, but if the consumer wants to follow-up at home then the communication link will also have to be with the label.’
We have recently seen a surge of QR codes being used on labels to add value and extend the consumer’s experience online; to websites, quizzes, games, social networks and purchase incentives such as money-off tokens. However, the wrong use of QR codes – for example, links to poorly executed websites – could be putting consumers off using them altogether.
At the moment QR codes are still a novelty. But as we become accustomed to seeing them on increasing numbers of products, brands need to do more to ensure the correct, beneficial usage. One good example is US retailer Sam’s Club using QR codes on every bottle of its Simply Right vitamins to lead consumers to videos by naturopathic physician, Dr Andrew Myers.
Some wine producers have also caught on: restaurant diners can scan the code on their bottle of wine to find out more about the vineyard, grape and how to order, instead of trying to remember the name for the next time they are shopping.
Mobile network operator Verizon increased sales by 200 percent by encouraging in-store customers to scan a QR code that shared a competition on social networking sites. If a friend used the link to buy a Verizon mobile, the original customer won a smart phone. The company gained a 35,000 dollars return on a 1,000 dollar investment and greatly increased brand awareness.
Other good uses of QR codes include virtual stores, store locators, recipes and data capture – eg polls to get consumer to vote for their favorite flavor. I look forward to seeing what label innovations will be dreamt up next to keep us interested.
Carol Houghton
Editorial assistant
Labels & Labeling
2011 was an eventful year in the label world. This year, the popularity of ‘smart labels’ will surely continue to grow and new innovations will be launched accordingly. A recent report showed that consumers are increasingly using mobile technology applications such as QR codes to access information on products, especially to access information such as the product’s ethical credentials and origin. ‘Eco-labels’ have been criticized for causing confusion as many shoppers are unable to distinguish between Organic, Fairtrade and Rainforest Alliance and QR codes offer easy, instant access to such data.
Towards the end of last year, the retail situation in India dominated the headlines. According to Benjamin Punchard and Lamine Lahouasnia, Euromonitor International, market research and analyst firm, the Indian retail market is evolving and moving towards a supermarket/hypermarket model – regardless of the Indian government’s actions on retail Foreign Direct Investment (FDI). The market is seriously underdeveloped in comparison to other regions, with virtually no infrastructure or chill chain. This means there is plenty of potential for label industry growth, and we will be watching closely to see how it develops.
L&L issue 5 2011 looked at the food labeling sector and highlighted the problem of food wastage – the UK alone throws away £12 billion of food according to the date on the label, when it is actually still safe to eat. I’ve just seen an exciting new labeling system which is planned for release to the retail market at the beginning of this year. Oli-Tec labels is a patent-protected traffic-light style food freshness label from Open Life Packaging that looks set to have a huge impact on the UK food industry (see L&L issue 1 2012 for more information).
Sustainability, as well as the continuing battle to increase shelf appeal and create value added packaging, will remain on my list of things to watch for in the year to come. I’ll also be focusing on design agencies, looking at their work with regards to the label and their views on how its role will change within specific sectors. If you’ve got something to say, get in touch!
Carol Houghton
Editorial assistant
Labels & Labeling
Change is inevitable. CPGs are feeling increasing pressure from consumers to lower the total carbon output of their products’ life-cycles. They are evaluating packaging on a macro level – reviewing specific areas within the value chain that can reduce wastage and pollution.
The label industry needs to begin designing labels for products that can be reprocessed and reused easily, helping to reduce their customers’ products’ carbon footprint. Converters must understand what their customers’ environmental goals are and they have to be able to respond with knowledgeable support.
Diageo has created and will regularly use a packaging life-cycle assessment tool, SPOT (Sustainable Packaging Optimization Tool), a software program that allows the brand, packaging designers and engineers to evaluate any given combination of packaging. SPOT will support the company’s new Sustainable Packaging Guidelines. Many other brand owners have been using similar software systems such as COMPASS and PIQET to address a package’s impact on the environment at the early design stage.
The life-cycle of a label must be evaluated at the design stage. The industry must understand how the construction of a label as a whole can impact the environment. Is the adhesive used in the construction recycling compatible? What is the material that the label will be applied to? Will the label contaminate recycling streams?
While many of the materials currently in these life-cycle databases pertain only to the wider packaging industry – polymers, board and glass – information is being collected for secondary packaging with a specific focus on pressure-sensitive labels (adhesive and liner) and shrink sleeve labels (energy usage).
CPGs will begin evaluating the labels they choose to use by the impact the construction will have further up the supply stream. For example, in Canada, the government enacted a tax on retailers that sold products with packaging that is not currently recyclable in the nation’s recovery streams. The adhesive in PS labels was found to gum-up the recycling of PET thermoform containers. Within a matter of months, the Association of Postconsumer Plastic Recyclers published test methods for Recycle Compatible Adhesives (RCAs).
Leading material suppliers UPM Raflatac and Avery Dennison quickly reacted with verified options for label converters serving this market.
Real innovation has been introduced to the industry that will support many brand’s search for lower impact packaging. Take look at the Closed-Loop, or Cradle-to-Cradle, recovery system Mitsubishi has introduced for PET liner for pressure sensitive material. More of these types of initiatives are required.
This is only the beginning. The life-cycle databases are being developed and the software programs are being used to provide brands with rapid snapshots of a package’s sustainability. Diageo says that it is looking for packaging that is both sustainable and premium. Are you prepared to manufacture labels that meet these requirements?
Label converters can find support and guidance in the new Environmental Performance book in Chapter Six: Design for Sustainable Performance.
Danielle Jerschefske
North America editor
Labels & Labeling
Returning to China for Labelexpo Asia in Shanghai provided an opportunity to gauge the development of the label industry in the country.
Firstly, the quality of manufacturing is improving – the exhibition even saw the launch of a digital press by Taiyo – and many companies are looking at the west as a potential market in the near future.
Secondly, the standard of the labels and package printing being produced is improving all the time. This is being driven in particular by the Chinese FMCG and personal care brands wanting to compete with the likes of Unilever and P&G on the shelf.
The third dynamic is that the universe of package printing and label printers is growing rapidly to meet demand. Attendance at Labelexpo Asia was up by nine percent, to 18,019. If the western brands don’t take the game to the Chinese they will come and attack the western manufacturers.
The final surprise is that the environment is now being talked about and appearing on the agenda.
Roger Pellow
Managing director
Tarsus Labels and Packaging Group
The foundation in 2007 of Flexo Print, Bolivia’s first dedicated narrow web label converter – and its subsequent investment in machinery from Gallus, Nilpeter, Rotoflex and Karlville – is a story representative of three major trends in some of Latin America’s lesser developed label markets: the creation of local label converting operations to serve brands owners accustomed to importing labels from abroad; the increasing installations of top quality machinery; and the desire to export.
Brazil, Mexico, Argentina and Chile may dominate the headlines – all four boast local label converting operations that compare favorably in technology and quality with Europe and the USA’s finest. But the smaller markets of Bolivia and Peru – even Ecuador and Paraguay – are increasingly attracting high quality machinery as local companies seek to reverse the trend of end users importing labels from abroad.
In Peru, Kuresa, the country’s leading producer of prime labels and adhesive tapes, has just invested USD $23 million in a new facility. Grupo Fibrafil, a manufacturer of agricultural netting and twine in the same country, will shortly open a dedicated label division housing two new Nilpeter FB presses. In Bolivia, packaging supplier Industrias Ravi is on the point of establishing a local label converting operation in cooperation with Argentine printer Artes Gráficas Raal. You can read about all three of these stories, as well as about Flexo Print in Bolivia, in upcoming issues of L&L.
These smaller Latin American markets have traditionally imported the majority of the labels used on locally sold goods. But now, companies in these countries are increasingly taking advantage of the gap in their local markets.
Bolivian brands historically import their labels from the more developed markets of Argentina and Colombia, and before just four years ago, there was no dedicated narrow web converting operation in the country.
This changed with the foundation in 2007 of Flexo Print, a Cochabamba-based offshoot of offset printer Sagitario, located in La Paz. In its short lifespan, the company has reaped the benefits of investment in advanced technology that has made it unique in its local market.
Landlocked Bolivia’s central location and large number of neighboring markets (it shares borders with Peru, Chile, Argentina, Paraguay and Brazil), combined with the fact that it is one of the cheapest nations in the region, provide great potential for export. Flexo Print cites northern Chile and southern Peru – both far from their respective capitals and industrial bases – as regions which the company intends to target.
Flexo Print’s impressive growth since its foundation shows that in Bolivia, the trend of end users importing their labels is changing. The company is not only clawing back its local market – bringing its customers a level of quality previously only available abroad – but will soon reverse the trend and win work from markets that used to serve its own. It is a blueprint that other converters from Latin America’s smaller markets are following.
James Quirk
Latin America editor
Labels & Labeling
With the announcement by the Indian government that retail foreign direct investment (FDI) will finally be allowed in the country, the doors might soon open to the last great consumer market in the world still closed to the major global retailer groups.
Currently in India these companies can only sell their own private label products and cannot sell the global brands they stock in every other major consumer market in the world. This has had the effect of closing off avenues of choice to consumers and limits the penetration of the global FMCG brands. It is no coincidence that the major European and North American-based label and packaging converting groups – CCL, Rako and Chesapeake, for example – have invested in China rather than India, and for this simple reason: in China the government has actively encouraged Walmart, Carrefours and the rest to invest in the country with wholly-owned operations. And they have bought with them their entire global supply chain. The major converting groups have come in on the back of supporting products from P&G, Unilever, L’Oreal and so on, where the run lengths are generally longer and the quality of materials used and complexity of converting techniques are up to global standards.
The second effect of the global retailers entering China has been that local brands have been forced to respond with new product formulations and packaging, including labels, which reflects a more upmarket positioning. This in turn is creating value throughout the supply chain. I write this column from Labelexpo Asia in Shanghai, and it is clear that this is now being reflected in Chinese converters buying new kit and new quality control equipment for their presses and rewinders.
It is not only Western converting groups which have entered China on the back on this value chain. A small, elite group of converters, companies like the mighty Starlight, are now buying right at the top of the Western press market and servicing the multi-nationals to the same quality standards as their Western competitors.
So if retail FDI does go through in India, I predict we will see a similar, rapid uplift in the value throughout the retail and supply chain, feeding through to the label converting industry.
Andy Thomas
Group managing editor
Labels & Labeling
Labelexpo Europe 2011 showed the event’s global reach like never before, with a record-breaking 28,636 visitors attending this year’s show in Brussels.
An analysis of the visitor data, and a comparison with the numbers from previous exhibitions, paints an interesting picture of the industry’s ebb and flow. A rise in visitors from a developing country or region can reasonably be taken as a positive endorsement of the state of the local industry – with increasing numbers of converters keen to stay abreast of technological developments and invest in new equipment.
When dealing with the more developed markets, however, a dip in numbers is perhaps less indicative of local industry contraction than it is of companies cutting costs by sending fewer staff to attend.
Visitor numbers at the shows in 2009 and 2007 were similar – 24,169 and 24,752 respectively – but 2011 saw a significant rise to 28,636. So where are the new attendees coming from? And how has economic development – or lack of – in different parts of the world affected visitor numbers?
2011’s rise in visitors – despite continuing economic problems around the world – can be seen as proof of the adage that the label industry exists in something of a bubble. Despite the economic problems in Europe, for example, visitor numbers from the region remained strong, even rising by 1.4 percent.
While most of the region’s western markets sent slightly greater numbers compared to 2009 – including France, Germany, Italy, Netherlands, Spain and the UK – the significant growth from the region came from Eastern Europe. Visitors from Russia and Poland rose by 62 percent and 43 percent respectively, while Belarus, Bulgaria, Croatia, Czech Republic, Romania, Slovakia and Slovenia were all better represented compared to 2009. Turkey, meanwhile, saw a 25 percent increase.
Visitor data from the Americas tell a similar story of the increasing power of developing markets. A reduction in numbers from the US and Canada was offset by a 14 percent rise in visitors from South America. There were 37 percent more attendees from Brazil compared to 2009, while Chile, Colombia, Peru and Venezuela all saw slight rises. In 2009, Argentina and Mexico sent almost exactly the same number of visitors; this year, the Argentine figure rose by 19 percent and the numbers from Mexico leapt by 96 percent.
Visitor numbers from Asia were consistent overall with 2009, with fewer attendees from Japan and Taiwan offset by an impressive surge from India – with a 78 percent increase. China registered 17 percent more visitors.
Attendees from Middle East and North Africa rose by 38 percent. With comparatively fewer visitors, Sub-Saharan Africa (55 percent), Central America and the Caribbean (64 percent) and Australia and Oceania (21 percent) also showed significant jumps in visitor numbers. South Africa, the largest African market, sent 39 percent more visitors.
In a further example of the event’s global reach, a number of countries were represented in 2011 that had not been two years previously – including Angola, Barbados, Ethiopia, Liberia, Mongolia, Namibia, Oman, Palestine, Puerto Rico, Réunion, Sierra Leone, Tajikistan, Uganda and Zambia.
Labelexpo Europe 2011, therefore, demonstrated the truly international nature of the exhibition. The visitor data is further proof of the increasing development of countries such as India, Brazil, Russia and Mexico, and shows that label market growth in regions like South America, Eastern Europe, the Middle East and Africa is cause for optimism.
James Quirk
Latin America editor
Labels & Labeling
Since starting at Labels & Labeling I’ve become aware of the standards put in place to protect consumers’ health, particularly with regards to ink migration and adhesives for food applications.
It has occurred to me when buying fruit and vegetables, having peeled off the label and bitten into it, if some of the label’s residue has been left on the skin which I am then chewing on. Furthermore – as an example – apples are displayed loose in cardboard boxes; I’ll rummage through until I find the greenest apple, one without any bruises and that doesn’t have the slightly mottled brown patch near the stem. Who knows whose hands have been all over the apple I might select, or where their hands have been. I might rinse the apple under the tap, but what does that do? I’m sure it doesn’t remove the adhesive left from the label nor the germs from other shoppers, let alone the pesticides used for growing.
L&L’s North American editor, Danielle Jerschefske, recently sent me an interesting link; designer Scott Amron has created an innovative alternative to the fruit label. Like other labels, the Fruitwash Label displays price look-up codes for fast and accurate check-out; the clever part is activated when washed or rubbed with water, causing it to dissolve into ‘an organic fruit cleansing produce wash’. The soap helps removes wax, pesticides, fungicides, dirt and bacteria.
In my last blog I mentioned the HomePlus story: using QR codes to ‘turn waiting time into shopping time’. Frosta in Poland has begun using the codes to make consumers’ lives easier in another way. When scanning a code printed on the packaging of Frosta’s frozen pan fried vegetable products, the consumer is taken to a website of recipe suggestions and ways to prepare the product. Once a consumer selects a meal from this site, they are provided with a list of additional ingredients needed to help them complete their shopping. A paper version of the recipe can also be printed.
Please feel free to share any other innovations or technological advances that you’ve seen or heard about recently!
Carol Houghton
Editorial assistant
Labels & Labeling
Labelexpo Europe was the biggest ever event, and all the leading manufacturers of both conventional and digital presses reported healthy sales. How are we to explain this against the backdrop of the Eurozone crisis and talk of a possible double dip recession?
Firstly, it is a fact that the label industry players which survived the 2008-10 recession actually came out stronger: leaner, with costs more under control and moving into value added areas which emphasize service over price. This led to the requirement to invest in new, more productive and value added machinery. It was the postponed investment of the last two years which was the chief driver of machinery and software sales at this show.
At the same time, brands are rebuilding stock levels – but with one crucial difference. They now want to build only the stock they will use in the next production cycle. So although order levels are rising, the number of labels required in each batch is going down; fewer labels, more often. This in turn is driving the requirement for more efficient MIS and for conventional presses and digital finishing lines which can change between jobs economically multiple times in a shift.
A key lesson of the last recession – and other recessions seen by L&L in its 34 year history – is that aggregate label demand remains relatively stable. It simply shifts between segments – typically into the ‘value’ segment dominated by retailers’ own brands, who are more likely to use basic paper labels and less likely to use higher value decorative technologies like foiling.
But even this is changing. All the private label brands are launching product lines targeted directly at up-market branded competitors – Tesco Finest is a great example. The demand is for better graphics and substrates which convey a superior product image, but all at a reduced cost per label compared to the branded alternatives. German value retailer Lidl, for example, has specified high quality rotary offset for its paper labels to create graphics which leap off the shelf.
Opportunities are always created at times of rapid change. Labelexpo showed the supplier community creating the hardware and software tools necessary for entrepreneurial converters to exploit these opportunities to the full.
Andy Thomas
Group managing editor
Labels & Labeling
I recently attended Brigl and Bergmeister’s ninth Label Conference in Bad Hofgastein, Austria. A full write up will be published in L&L issue 6 but here are a couple of personal highlights.
The overriding theme that emerged was sustainability. David Ravnjak, F&E Papirnica Vevce, Brigl and Bergmeister, said: ‘The industry is demanding modern, hi-tech, adaptable, customizable, intelligent and sustainable materials.’
Another trend worth mentioning is the changes in consumer behavior, driven by global technological advances. Rowland Heming, director, Design Board – who presented at the conference last month – believes the internet could shape the future of the label. ‘Children are our future – their reaction will change the future of packaging.’ The next generation is internet savvy and able to instantly communicate globally; this is something that brands need to consider and react to.
A great example is Home Plus, a South Korean/British discount store retail chain – jointly owned by Samsung and Tesco – which has created an on-screen virtual store. QR codes on products on the screen – at a South Korean train station – can be scanned, allowing consumers to shop while they wait. Heming said: ‘Technology makes it easier for everybody. The internet will continue to be a main driver.’ He added that the internet has created a global consumer, meaning we can all access the same things.
Heming also commented that brands do not realize the power of the pack and label, emphasizing the trend for increasing shelf impact. He said the cost of a label is a fraction of the cost of a 30 second advert. Private label brands are thriving at the moment, proof of the power packaging and labeling has to make a product successful.
Carol Houghton
Editorial assistant
Labels & Labeling
Ink suppliers at Labelexpo Europe 2011 presented in unison low migration solutions for the food packaging market, which has especially felt legislative pressures in Europe regarding contamination of products packaged with volatile inks that can infiltrate food and harm consumers. Most suppliers complete internal R&D and migration testing, but also support their findings through third-party evaluations.
Current legislation for migratory inks & food packaging in Europe include:
Flint Group introduced its Flexocure Ancora low migration UV flexo line of inks that offer high performance while in compliance with the Swiss Ordinance on Materials and Articles (SR 817.023.21). The Flexocure Ancora line additionally provides good adhesion and scratch resistance on synthetic materials.
Christina Eriksson, R&D manager of Flint Group Narrow Web, explains the migration studies conducted on Flint Group’s new Flexocure Ancora line: ‘For this new ink series we have conducted migration tests at several independent institutes, as well as in our own analytical laboratories. The migration measurements have indicated, that when correctly applied on suitable packaging structures migration levels with Flexocure Ancora are below currently accepted limits. This was verified based on the standard migration test method using the food stimulants 95 percent ethanol and Tenax as set out in Commission Directive 97/48/EC. Furthermore we have the confirmation of leading end users that the ingredients used in Flexocure Ancora are meeting their company guidelines.’
Ruco launched its new UVFX/MA line of low-migration and silicone-free ink systems that complies with Nestle standards, EuPIA Photoinitiatior Suitability List 1A and too with SR 817.023.21. The UVFX/MA line offers high opacity, printability at effective printing speeds and good chemical resistance properties.
Sun Chemical promoted its various lines of low-migration inks: SunCure FLM for UV offset, SolarFlex LM for UV flexo and SunBeam ELM for EB offset printing. The supplier issued a ‘Best Practice Guide to Food Packaging Printing’ to help converters better understand the complex issue gaining strength particularly in Europe. The guide was fortified by a presentation on the first day of the show in the new Package Printing Zone ‘Safe printed food packaging – how safe am I?’ Also, the company enlisted the support of Muller Martini on its stand to demonstrate the benefits of using Sun Chemical EB curable offset inks for food packaging.
Pulse’s SLM line of low migration compliant inks offers some unique characteristics not found in many other booths. For instance, the SLM line offers good shrink characteristics, more than 70 percent, with good adhesion on filmic materials and has metallic options available.
Siegwerk exhibited for the first time at the show since its acquisition of Environmental Inks and Coatings in December 2010. The company has full lines of low migration inks, varnishes and coatings for UV flexo, UV offset and waterless UV offset printing. Substrate depending – paper, plastic, carton board – the various Sicura lines – 39-10 LM, 39-20 LM, LM 361, Plast LM and Plast 41 WL LM – supported by low-migration gloss and matte varnishes and metallic ink series provide label converters and package printers with myriad options for effectively servicing the food packaging market.
Zeller + Gmelin too has lines of low migration products for UV flexo and UV offset printing and coating systems. UVAflex Y71 for UV flexo has a high opacity white ink for standard materials and also a high opacity white ink specially designed for shrink sleeve applications. The UVAlux series U41 is designed for UV offset and screen printing on papers and films while the U71 series is especially for UV offset printing on thin film materials.
Marabu promoted its rotary screen printing opaque white UltraRotaScreen UVSF 174 low migration ink for combined UV screen and UV flexo printing.
Click here to read a UV food package printing success story
Danielle Jerschefske
North America editor
Labels & Labeling
Labelexpo Europe 2011 saw dramatic increases in numbers of both exhibitors and visitors from China. On show were material suppliers such as King Label, Shanghai Jinda, Guangdong Guanhao; while machine manufacturers Labelmen, Orthotec, Zhejiang Weigang, Dongguan Hontec and Link Label all demonstrated their equipment at the event.
Leading Chinese converters could be seen navigating the exhibition halls, including representatives from CymMetrik, Guangzhou Meikei, Shanghai Eternal and Beijing Deji. Qingdao Sunlabel even purchased a Grafisk Maskinfabrik DC330 converting line direct from the stand on the second day of the show.
There was also a strong presence from Chinese distributors, seeking advanced equipment to sell in their homeland. The Chinese label market has seen rapid growth in recent years, resulting in local converters increasingly looking to purchase high-end, foreign machinery. And because their locally manufactured labels bring cost advantages, Chinese converters are increasingly competing for work outside the country.
The country’s strong presence at Labelexpo Europe was proof of China’s increasing integration into the international label market.
Kevin Liu
China editor
Labels & Labeling
Digital printing has matured on the two major toner platforms (HP Indigo and Xeikon) into a high quality, repeatable alternative – and complement – to conventional offset and high quality UV flexo, and now the emphasis is on more flexible converting platforms and automating workflow onto and off the press.
I did not notice a real jump in inkjet quality since the last Labelexpo, but truly significant developments were the integration of in-line laser die-cutting on the EFI 4900 system – creating a true variable print and converting system – and the move by suppliers like Durst and Stork to eight inkjet heads. This opens up all sorts of possibilities in terms of extended gamut printing and even the incorporation of digital varnishing (currently seen in the Durst Rotoworx digital finishing line).
The debate between in-line and off-line finishing is still being fought out in the digital arena, but the advent of fully commercialized laser die-cutting and inkjet varnishing (and metallics one day?) could tilt the balance in favor of in-line.
Andy Thomas
Group managing editor
Labels & Labeling
The conventional press manufacturers were hitting back hard against the increasing reach digital printing into higher run lengths. This fight back is happening on two fronts.
Firstly, presses can now be changed between jobs – and between processes – in astonishingly short times, given properly organized pre-press, offline plate mounting and washing). To see an 8-color job being changed off the press, including totally different substrates and converting, in less than eight minutes is an awe-inspiring sight. But just as important is the ability to turn the press into a multiple head machine tool using pre-setting and automation functions. A huge range of functions can now be pre-set, depending on the distribution of servo drives in the press, including register, tension and pressure. Nuova Gidue even demonstrated an image recognition camera which allows automated, closed loop control over flexo pressure setting, as well as an RFID chip embedded in the sleeve to communicate data from pre-press to the press itself (for example to check the correct job is on press) and downstream processes such as washing systems.
MIS vendors should now look at ways to translate production control data into data which can be used to set the press up – particularly now their MIS can access data from the graphics management systems via JDF. This can already be done to some extent for offset press inking units via CIP3/4, but surely there is no theoretical reason why a ‘digital job bag’ should not also be able to inform the press of the materials type (picking up tension and caliper settings, whether chill water is required etc), number of colors, converting steps required, and even providing information from the PDF file to drive the inspection and quality control systems.
The more deeply we can embed conventional presses into a digital workflow, the more they will be able to hold their place against the move of digital presses into faster and wider machine bodies.
Andy Thomas
Group managing editor
Labels & Labeling
Labelexpo Europe 2011 was a great show with a lot of buzz about the place. To me, the digital hall had the biggest and best buzz of all! The head to head – EFI v HP v Xeikon – digital print workshops were great, a real showcase to watch the latest developments. The best bit was watching Filip Weymans from Xeikon eating the toner to demonstrate its FDA food safe properties for direct food contact!
If you doubted the trend towards increased digitalization of the narrow web workflow, then this was the show to finally put those doubts to rest. There were new software enhancements announced by Xeikon and HP, and a raft of inkjet machines launched or enhanced. Add to that the various laser die-cutting modules that are becoming increasingly productive, then it looks like we are about to see a big change to what is regarded as a standard labeling workflow. There were a lot of entry level desktop laser machines that also got a lot of interest, and seemed ideal as a first step towards digital label production for a small labeling business, or an in house solution for small label user customers. Xeikon and HP continue to battle for the top spot as industrial digital labeling powerhouses, and although it gets better and better, I think we are still a way from inkjet becoming a serious rival in the premium quality mass market.
This year, flexo didn’t seem to show very many big developments. All the focus was on quick changeovers, with one stand demonstrating 32 second changeovers of a flexo print station. It is very impressive, and combined with the move towards even smaller repeat cylinders with smaller plate costs it is very clear that pure flexo manufacturers are competing now not on quality and max speed, but how efficient they can be when matched against digital – which is getting faster and wider. The middle ground of flexo/digital changeover is getting to be a VERY crowded space.
Twitter was heavily used, and my favorite tweet was, ‘At #labelexpo 2009 digital competed with flexo. This year its all change; flexo is trying to compete with digital’. I’m looking forward to Drupa where there must be some more really exciting new developments!
View the full version of Adrian's blog here.
Adrian Steele
Managing director
Mercian Labels Group