Oct 30, 2007

Crescent adds Heidelberg pre-press suite and lands ISO 14001


Crescent Press has ordered a new Heidelberg workflow and platesetter to bring it pre-press department up to date.

The 24-staff printer, which has recently achieved ISO 14001 accreditation, will take delivery of the setup in the coming weeks.

Crescent, which specialises in B2 colour work, has retrofitted Axis Control on a Speedmaster CD 74 along with buying Prinect workflow and a processless Suprasetter.

Crescent Press managing director Andy Matthews told printweek.com: "It's a case that if you stand still, you go backwards.

"The new setup will mean that much of our new equipment is integrated into one workflow."

The £1.75m-turnover company already operates two Heidelberg SM 52s, two PM 46 presses and a Risograph GR3750.

Director Jo Matthews said she hopes to highlight Crescent's strict recycling practices off the back of the ISO accreditation.

"This will prove beneficial both to ourselves and our clients. It shows we dispose of waste, such as palettes and flammable liquids, responsibly and in the correct way."

Source: printweek

Innocent cuts PLA in 100% recycled drive


Drinks brand Innocent has stopped using polylactic acid (PLA) in its packaging and is switching to 100% recycled plastic bottles.

The firm said it had looked at the pros and cons of PLA and had talked to industry experts, but felt it was better to work with waste material, such as recycled plastic, than to create bottles from new materials.

Innocent tested its Breakfast Thickie in a PLA bottle, but said it was "not quite the right material" because it did not use any waste materials, and because commercial composting was "not yet a mainstream option" in the UK.

Innocent claimed a world first when it put four of its fruit Smoothies in 100% recycled PET bottles last month.

It expects to switch the rest of its range, including the Breakfast Thickie, to the material by January 2008.

Innocent said PLA bottles could also add costs to recycling operations and, in some cases, prevent recycling of conventional plastics.

The company was criticised by this week's Independent on Sunday for claiming that bottles made from PLA could be put into a home recycling box next to PET bottles.

The newspaper said PLA would contaminate the batch and could result in the reprocessor being unable to sell the plastic.

Innocent said that, according to the Waste and Resources Action Programme (Wrap), it was possible to have small amounts of PLA in with PET recycling.

"Wrap supported the levels used in the trial, but the recycling industry is now reporting that it is finding it hard to cope with PLA," said the firm.

Innocent added that it also checked about the use of genetically modified corn in PLA, and knew there was "no possibility of contamination from the plastic", so it opted for a scheme "where they offset any GM corn with a tonne of non-GM corn".

Presstek flags massive job cuts as it hunts £9.7m boost


Print giant Presstek is axing thousands of jobs as part of a cost savings plan expected to generate an improvement of £9.7m ($20m) in annual operating profit.

The manufacturer, which has delayed the release of its third-quarter results pending the completion of its corporate inventory, is also aggressively expanding in Europe.

The company recently announced the appointment of Peter Blum as a senior adviser for European operations, reporting to the US head office and working alongside Ray Hillhouse, director of sales and operations for Presstek Europe.

Blum, who was head of European operations for Kodak Polychrome Graphics for five years, is charged with building channels, developing go-to-market strategies and improving operating efficiency.

Jeff Jacobson, chief executive and president of Presstek, wants to grow the company's European business until its "footprint is equal to or larger than the US operations".

The operating expense reduction includes the centralisation of warehousing and distribution activities for North America in Illinois and the consolidation of certain customer care activities in New Hampshire. The net job losses are around 9% of the workforce, including attrition.

Presstek's plans for growth include winning greater share of business from printers with more than £2.4m in turnover, increasing the appeal of DI presses by adding new features, such as the ability to handle larger formats and an extra colour, and shifting its CTP products to open architecture.

Presstek chief financial officer Jeff Cook said the plan hammered out by management was achievable.

"We've based our whole plan pretty much on existing business and revenue levels with modest growth," Cook said.

"We wanted to be sure we could achieve this without having to count on significantly a higher revenue growth rate and if we happen to achieve that, it's the icing on the cake."

The company has also identified cash flow improvements of £12.1m through working capital reductions and the sale of selected real estate assets.

Source: printweek

Williams Lea claims world first with '$1bn-plus' Reader's Digest deal


Williams Lea has landed the contract to manage Reader's Digest's "more than $1bn" worldwide print budget in a business process outsourcing (BPO) deal of a scale "never seen before".

The exclusive partnership puts the 10,000-staff print manager at the helm of outsourced print procurement and marketing for the world's largest publisher across 19 countries in Europe, Middle East, Asia and America.

Six of the 19 sites, including the UK, went live on 18 October, with Reader's Digest Association (RDA) moving 54 of its 100 print buyers over to Williams Lea.

According to RDA UK operations director Lynn Diplock, the publisher decided to put its procurement out to tender for the first time because "we realised as a business we weren't leveraging supply as well as we could do. We can add our spend capabilities into what Williams Lea already has. It comes down to economies of scale."

Diplock told printweek.com it was "business as usual", with no redundancies and the bulk of suppliers remaining in place.

"We'll look at our supply base on an annual basis," she added.

The print manager's "expertise" helped it outpace "several" other hopefuls following the worldwide procurement review at RDA, which hopes to cut £63m ($130m) in costs over the first three years of the contract.

Williams Lea chief executive Tim Griffiths said: "We are delighted that RDA has chosen Williams Lea as a partner to engage in this critical element of its business process.

"From our perspective, being awarded this contract reaffirms the considerable cost and operational benefits that a global organisation can achieve by managing its promotional printing within a truly integrated process."

Full implementation is planned for March 2008.

See this week's PrintWeek for more.

Source: printweek

Oct 29, 2007

Environmental demand gives metal edge over plastic, says Crown


Metal packaging's environmental credentials will help it regain some of the market share it has lost to plastic, according to a Crown Holdings chief.

Didier Sourisseau, vice-president of Crown's Speciality Packaging division, said customers' focus on sustainability had reached unprecedented levels in the past year.

"I have had lots of meetings to present innovation, and have been surprised that sustainability was on the agenda each time," he said. "I have been in sales and marketing for 15 years and I have never seen that before."

Sourisseau said Crown was fighting back against a loss of share to plastic containers, particularly in the paints and coatings sector.

"In the past 10 years, especially in the paints and chemicals markets, there has been a transfer to plastic," he said. "But I think we have reached the bottom.

"You need to have very safe packaging for dangerous goods and there is nothing better than tin plate. Plastic cannot compete with that.

"For environmental reasons, our customers and consumers are starting to have a preference for metal. Everyone knows that plastic is not very good for the environment.

"Some years ago, it was the northern European countries that were more interested in sustainability, but now it's from Spain to Finland."

Crown also wants to extend the use of a new paint-packaging concept to western Europe after success in Finland.

The Clipper Can system features a plastisol-lined metal lid with easy-grip openings and has been adopted by Finnish paints company Tikkurila.

Sourisseau said the company would target the system at new markets, including the UK.

The Clipper Can, developed with Corus, is available in sizes from 500ml through to 20 litres, and is compatible with all types of indoor and outdoor paints, varnishes and coatings.

Qubic celebrates short-run success with first digital kit


Qubic has cut job times in half following its first foray into digital.

The Chester-based printer will use its new HP Indigo 3050 to produce short-run collateral, such as Christmas cards, gift vouchers, leaflets and personalised stationery.

The 40-plus firm previously carried out such work on its litho battery, which includes a four-colour Heidelberg GTO 52-V and a single-colour GTO 46.

Qubic operations director Mike Griffiths told printweek.com: "It's been a revelation. The speed, the turnaround and the quality for our customers have all been great.

"Eighty per cent of the cards we are producing for this Christmas period are being printed on the Indigo."

Griffiths added: "Previously, we would give our customers a period of between six and 10 days from receipt of order but now we are completing these jobs in five days, sometimes even four."

The printer has already carried out a range of work on the new machine, including the production of promotional materials for local basketball team the Cheshire Jets.

Griffiths said: "Using the HP Indigo press has provided us with the opportunity to produce applications for the Cheshire Jets that would have been impossible to fulfil via the traditional litho print process, given the extremely short lead times imposed upon us."

Qubic, founded in 1986 rolls out work for customers in the automotive, retail and sectors.
Source: printweek

New owner Integrity fails to save HIPs printer FSP from collapse


Integrity FSP, the digital print firm set up to produce Home Information Packs (HIPs) for the property market, has closed.

The firm's 35 staff are understood to have been sent home last Friday afternoon (26 October). They have been told that wages will be paid until the end of the month, claimed insiders.

A statement on the company's website reads: "Regrettably, as of today, 26 October 2007, Integrity FSP Limited ceased trading. The directors have resolved to put the company into creditors' voluntary liquidation and have instructed Smith & Williamson to assist with the necessary requirements and convening of meetings of members and creditors.

"Creditors will shortly be receiving letters regarding a creditors' meeting to be held on 16 November 2007 at Smith & Williamson's offices Imperial House, 18-21 Kings Park Road, Southampton, Hampshire. SO15 2AT."

In its original guise, Fareham, Hampshire-based First Sellers Pack was set up by Jonathan Moore to service an anticipated rush of digital print requirements for the government's HIPs scheme.

The firm placed a record-breaking £3m order for 10 Kodak Nexpresses, although it is believed that by the time of last Friday's closure, eight of the machines had been taken back by Kodak.

However, the company foundered when introduction of the packs was delayed on several occasions and it eventually fell into administration on 1 August, ironically the day the scheme finally went live. Since that acquisition, Moore is understood to have had no further involvement with the business.

The company was bought out of administration in August by financial services firm Integrity, and renamed Integrity FSP. Despite the expected surge of work, however, insiders claim the firm never produced more than a few dozen packs per day.

For the full story, see this Thursday's PrintWeek magazine.
Source: printweek

Inpac Delta picked for £6m Indian mobile phone contract


Inpac Delta Group, the joint venture packaging business formed by Delta Print and Packaging in Belfast and China's Inpac, has won a £6m contract in India from an unnamed manufacturer of mobile phones.

The deal is the largest yet for the Inpac Delta Group, which will produce cartons, manuals and user guides, plus labels and stickers, at its factory near Chennai, India.

Delta Print and Packaging chairman Terry Cross said the firm was extending the factory and building a second plant at Sriperumbudur, which will specialise in corrugated packaging. Both the extension and the new factory are expected to be operational during the first quarter of 2008.

The Inpac Delta joint venture in India also includes local partner Claridge Moulded Fibres of Mumbai, which has a 10% stake.

"The contract gives us a very strong presence in a market that is poised to become one of the biggest for mobile telecommunications," said Cross.

He said Inpac Delta already worked with many of the leading manufacturers of mobile phones in China and chose the Belfast firm to support them in India due to its expertise and experience.

"The objective of our joint venture is to offer them a one-stop shop for printed packaging in whatever market they are operating. It's a service that also includes packaging design, logistics and fulfilment," he said.

Delta Print and Packaging provides packaging services to the food, pharmaceuticals and telecommunications industries from its plant in West Belfast.

Paragon takes firmer grasp on the Continent with Lithotech buy

Commercial printer Paragon Group has bought competitor Lithotech France, boosting its reach in continental Europe.

Lithotech France, formerly Danel Group SA, has a reported turnover of £42m (€60m).

The acquisition, which includes Lithotech's manufacturing operations and sales network, consolidates Paragon's standing in the French market.

Once Lithotech is integrated into Paragon, the combined business is set to have turnover of more than £140m.

Paragon chief executive Patrick Crean said: "The acquisition of Lithotech firmly places Paragon on the map.

"We have always emphasised the continuous development of the business and this has led to us promoting an enviable presence within the UK, throughout the rest of Europe and across the globe."

The two companies have a comparable product offering and operate in similar markets.

The value of the acquisition was not disclosed at the time of going to press.
Source: printweek

Oct 28, 2007

BRC extends pack standards to cover all product categories


packThe British Retail Consortium (BRC) is to expand its packaging standards from food to cover all types of product categories.

Changes will include an increased focus on the analysis of potential hazards, demonstrable commitment to quality management systems and greater clarity.

Alongside the packaging standards, the BRC is also updating its standards for food safety. Both have been revised following consultations with stakeholders.

The BRC estimates that the standards, which were established in 2004 in conjunction with the Institute of Packaging to set requirements for suppliers to UK retailers, have already been adopted by 10,000 businesses in more than 80 countries.

The third edition of the Global standards for packaging and packaging materials will be published in January 2008.

Xerox makes footprint into colour continuous feed market


Xerox has launched a full-colour, continuous feed printer, which it claims will set an industry benchmark as the fastest machine of its kind.

The Xerox 490/980 Colour Continuous Feed Printing System prints at a 600dpi resolution and maintains its top speed when printing both full colour or black and white.

The machine can print at speeds of 69m or 450 images per minute two-up, simplex on A4 paper, and 900 images per minute when set in the duplex configuration.

The device uses dry toner, xerographic imaging and flash-fusing technology, which doesn't use heat or pressure or make contact with the paper. This, it is claimed, allows the Xerox to print on a wider array of substrates than competitive systems.

The “non-contact flash fusing” technology fuses the image using high-intensity xenon lamps instead of the conventional method that uses heat and pressure rollers to fix an image to the paper.

This method only heats the toner, with no direct heat or pressure contact with the substrate, which maintains more moisture in the paper and minimises or eliminates paper shrinkage, paper curl and static electricity.

The high-speed printer is designed to allow service bureaux and data centres to produce full-colour transactional statements and invoices with promotional, personalised marketing messages.

Xerox UK Production Business director Anoush Dowlatshahi-Gordon said: "When high business-quality printing, volume, cost and speed are the key driving factors, print providers will appreciate the innovation and value of the Xerox 490/980 Colour Continuous Feed Printing System."

The 490/980 is immediately available in Japan, China and the Pacific Rim. The machine is available for order, which will take place in a phased approach beginning in Europe during the first half of 2008.

What are your thoughts on the new Xerox? Will you be getting one? Let us know with your comments below.

Source: printweek

Food and Drink Federation announces zero landfill plan


The Food and Drink Federation (FDF) has set members the ambitious target of sending zero packaging and food waste to landfill by 2015.

This is one of five targets outlined by the organisation in its commitment, launched today (October 25), to make a collective contribution to the environment.

"In the last couple of years, there's come to be an increasing recognition that everything you throw away has an impact," said keynote speaker Hilary Benn, secretary of state for the environment, food and rural affairs, at the launch.

"We can build on past successes in a structured way," said Callton Young, the FDF's director of sustainability and competitiveness. He said he hoped the campaign would help members "move along in unison".

To show leadership, the organisation said it wanted members to surpass the UK domestic target of a 20% absolute reduction in carbon dioxide emissions by 2010 compared with 1990. Instead, it aspires to a 30% reduction by 2020.

The FDF said it would work with the Waste and Resources Action Programme to oversee the increasing number of its members that have committed to the Courtauld Commitment, which targets reductions in packaging volumes.

Fiona Dawson, managing director of Mars Snackfood UK and chair of FDF's sustainability and competitiveness steering group, said the FDF wanted to "significantly increase the number of food manufacturers signed up to the Courtauld Commitment".

According to Dawson, improving infrastructure for collections will be a priority for the FDF.

The FDF will also embed an environmental standard in its transport policies.

The organisation will annually report on the progress it makes.
Source: packagingnews

Views of a UK contract drug packager


In this question-and-answer interview, Andrew Billington (shown), operations manager at Brecon Pharmaceuticals in Wales, addresses recent trends in packaging. What is he looking for in new packaging machinery? Billington says: "Quicker changeover and anything that facilitates GMPs [Good Manufacturing Practices] are at the top of the list. Both are especially important for a contract packager because our runs can be quite short. Added changeover pressure can also come from the multiple languages we deal with here in Europe. That’s something our counterparts in the United States do not have to face."

Question: Do you have any particular strategy for coping with the need for such versatility?

Billington: We work very hard at what we call late-stage customization. Essentially it boils down to a fairly generic blister-pack that you customize for specific language requirements only at the end. The carton and the leaflet insert, and perhaps the labeling on the carton, are the components that get customized the most.

Question: What has changed in pharmaceutical packaging in the past few years?

Billington: We’re seeing greater reliance on electronic systems to identify product quality and to verify product ID. There used to be considerably less of this outside of the sterile side of pharmaceutical packaging, where it’s been ongoing for some time. But now we’re seeing it more on the relatively straightforward blister-pack business, too.

Question: What about counterfeiting?

Billington: As contract packagers, it’s a bit less of an issue for us since we don’t own the product or brand. We use the packaging designed by our customers. But we are beginning to see holograms, microprinting, and other such technologies with greater frequency.

Question: Any changes in materials worth noting?

Billington: We are definitely seeing a movement toward more sophisticated laminations aimed at lengthening shelf life. Also, a third of the work we do is cold-form foil as opposed to thermoformed materials. Five years back, it would only have been about five- to ten-percent cold-formed foil. Fortunately, we’ve come up with some proprietary developments in cold-forming tools to keep their cost down.
Source: healthcare-packaging

EC orders Antalis to sell off Premier to clear Map deal

The European Commission (EC) has given the all-clear to Antalis' acquisition of Dutch paper merchant Map Merchant on the condition that it sells off its UK paper merchant Premier Paper.

The EC decided that the larger company would not "not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it."
In the UK, Antalis would have owned a third of the market through James McNaughton and Premier Paper divisions. Together with PaperlinX, the groups would have controlled around 75%, according to the EC.

Competition Commissioner Neelie Kroes said “Fine paper distribution is an important market for a wide variety of sectors, including publishing. The commitment offered by the parties was crucial to protect effective competition in the UK”.

As reported by PrintWeek last week, the likely outcome is for Premier Paper to undergo a management buyout (MBO).

One of the concerns voiced by commentators about the possibility of an MBO was a potential distribution problem for Premier, once it had severed its relationships with Map Merchant and its gm2 logistics service.

However the deal brokered by the EC includes a provision to offer any new owner "a logistic service contract with Antalis UK’s logistics arm, gm2, in addition to acquiring Premier's own logistic capabilities".

The £258m takeover, proposed earlier this year, will give Antalis ownership of M-Real's paper merchant Map Merchant, creating a £2.5bn paper giant.

What are your thoughts on how the deal with impact the UK? Add your comments below.
Source: printweek

Land for biopolymer production is plentiful, say suppliers


Consumer acceptance of compostable packaging is a bigger barrier than the actual supply of material, according to American biopolymer manufacturer Mirel.

Speaking at K2007 in Düsseldorf, Mirel business development director Daniel Galliland said that, despite rapidly growing interest, there were still concerns that biopolymers were taking land away from food production.

But he said that not only were these concerns misplaced, there was an abundance of land available to grow crops for biopolymers.

However, in the US and Europe there were farmers receiving subsidies to keep their land fallow. "Growing crops for biopolymers or biofuels is not real competition for food," he added.

His view was echoed by Chris Pandis, head of marketing for packaging at chemical manufacturer Clariant Masterbatches, who pointed to high-yielding sugar crops in Latin America. "The answer to the question 'Are you stealing food?' is a resounding 'No'," he said.
Source: packagingnews

Land for biopolymer production is plentiful, say suppliers


Consumer acceptance of compostable packaging is a bigger barrier than the actual supply of material, according to American biopolymer manufacturer Mirel.

Speaking at K2007 in Düsseldorf, Mirel business development director Daniel Galliland said that, despite rapidly growing interest, there were still concerns that biopolymers were taking land away from food production.

But he said that not only were these concerns misplaced, there was an abundance of land available to grow crops for biopolymers.

However, in the US and Europe there were farmers receiving subsidies to keep their land fallow. "Growing crops for biopolymers or biofuels is not real competition for food," he added.

His view was echoed by Chris Pandis, head of marketing for packaging at chemical manufacturer Clariant Masterbatches, who pointed to high-yielding sugar crops in Latin America. "The answer to the question 'Are you stealing food?' is a resounding 'No'," he said.
Source: packagingnews

Manor Creative changes hands under MBO

Manor Creative print and design company has been taken over in a management buyout (MBO).

The MBO team, led by new chief executive Graham Brownett, brokered the deal with the help of the Royal Bank of Scotland's Structured Debt Solutions division.

Brownett told printweek.com that the new team would ring the changes at Manor Creative, starting with the environment.

"We are doing a lot of work on our environmental policies towards gaining the BS 8555 environmental standard," he said.

He added that an announcement about its environmental pledges called Manor Earth was imminent.

The structure of the company has also been changed, with the board having a greater involvement with managing the business and a nine-strong "company management team" of directors and managers. Existing staff will be retained.

Brownett described the MBO as an "entirely amicable" arrangement. "The ex-chief executive expressed a desire to go off and do other things. After plenty of discussion, we decided that this was the best way forward for him and the company," he told printweek.com.

Brownett will be supported by erstwhile finance manager Paul Denne, who becomes finance director.

RBS Structured Debt Solutions associate director Mathew Glentworth said: "The company is a longstanding customer and collectively the management team have a wealth of knowledge and expertise in the industry."

Financial details of the deal were not disclosed.
Source: printweek

Cognac debuts tactile shrink sleeves


Providing a sensory element to increase brand differentiation and add a touch of luxury to traditionally packaged products, Sleever Intl. (www.sleever.com) has launched the Skinsleever® line of faux leather-relief shrink labels.

The label stock, said by the converter to “recreate the incredible feel of six exceptional leather finishes,” including lizard, python, ostrich, and others, in a palette of modern colors, made its commercial debut on a limited series of leather-encased XO Cognac flasks held in a rigid plastic gift set from Cognac De Luze.

A second application, from Icelandic Glacial, comprises a collectible luxury mineral water adorned with a small brown sheath and leather lacing.

Further details on either application were unavailable.

Sleever notes that the new label technology was in development for four years and is founded on a combination of three new technologies. The first technology, from Sleever Technologies, is a new generation of mono-oriented, elastomer-based film that remembers its shape after heat shrinking. This makes it possible to create relief effects or three-dimensional patterns on the shrink-sleeve labels.

The second technology is a proprietary, new helio-engraving printing technique from Sleever Labels that uses up to nine colors, along with “highly accurate positioning” (0.3 mm) to reproduce the subtle effects of luxury leathers.

The third component is the automated implementation on Powersleeve Evolution 3 and infrared shrink Powerskinner® machines, designed by Sleever Machines, which makes it possible to reach speeds of between 300 and 900 bottles/minute, the company says.
Source: packworld

Stora Enso details 2,000 job cuts and mill closures in bid to reduce costs

Stora Enso has announced that as a result of recent cost increases it will put in place measures to "safeguard profitability", including laying off 2,000 members of staff and dramatically cutting its magazine paper, newsprint and pulp capacity.

The paper manufacturer will cut annual paper capacity by 505,000 tonnes and reduce its pulp capacity by 550,000 tonnes.
This will involve closing its Kemijärvi pulp mill in Finland and the Norrsundet mill in

Sweden. The sites carry annual capacities of 250,000 and 300,000 tonnes respectively and will close in the second quarter of 2008.

The cuts also mean the company's Finnish Summa Paper Mill will close while the magazine paper machine at Anjala Mill will be taken out of service allowing the site to focus on book paper production.

Stora Enso also plans to sell off its Kotka mills in Finland. The laminating paper business and the special coated magazine paper operations employ 650 people and will be sold to allow the company to focus elsewhere.

The company also intends to cut its administrative staff by 300 to just over 500.

As a result, nearly 1,700 workers will be made unemployed by the actions. The company's Finnish employees are expected to be hit hardest with a planned 1,400 job cuts, while the Swedish operation will likely lose around 300 staff.

The Group anticipates that as a result of reduced wood and energy costs and reduced personnel, Stora Enso will see yearly net improvements to costs of between £98m (€140m) and £112m from 2009.

Stora Enso chief executive Jouko Karvinen said: "These closures, production rationalisations and staff reductions, however painful, are crucial for Stora Enso to be competitive long-term.

"These intended actions are based on specific analyses of marginal costs in wood supply and asset quality, including future investment needs, optimisation of fibre flows between the Nordic pulp mills, and decreasing the overall use of fibre by reducing newsprint and magazine paper production capacity."

Karvinen added: "I am aware of the impact today's announcement will have on the affected employees and their families. However, we are acting to safeguard the future of Stora Enso and the vast majority of our employees. We will, together with the local authorities, proactively help the affected employees to find alternative employment."

Stora Enso currently employs around 44,000 staff across its international operations.
Source: printweek

Oct 25, 2007

Amcor announces growth strategy at AGM


Australian packaging manufacturer Amcor laid out its plans for growth in its core businesses of flexible packaging, custom PET containers and tobacco packaging at its annual general meeting yesterday (24 October).

Managing director and chief executive Ken MacKenzie said the firm's new £21m (€30m) flexible business in Poland, dedicated to PepsiCo snack food packaging, would start operations in May 2008.

In addition, he said Amcor's flexible packaging plant in Russia had doubled its capacity after installing a press relocated from the Colodense confectionery packaging plant in Bristol, which was closed last year.

In the UK, Ilkeston-based food-packaging producer Amcor Flexibles Venus will be shut with the loss of up to 140 jobs as part of Amcor's major restructuring of its European Flexibles division.

Amcor wants to cut the division's 7,600-strong workforce by 900 as it moves more production to lower-cost economies in southern and eastern Europe.

MacKenzie said the healthcare and food operations in Amcor's flexibles business had made a "solid" start to the year, although raw material costs had continued to increase since June and were now at "record highs".

These costs are expected to stabilise at current levels provided oil prices do not continue to increase.

Full-year earnings in the flexibles business are also expected to rise.

MacKenzie said Amcor's PET operation would continue to focus on expanding the higher value, more technically demanding hot-fill segment, which is led by Amcor's dedicated PepsiCo plant in Wytheville, Virginia.

Amcor is also building a new tobacco packaging plant in the Ukraine, which is expected to come on line next month.

MacKenzie added that this would ease overcapacity in the group's tobacco packaging operations, which had resulted in higher costs and plant inefficiencies.
Source: packagingnews

Inca adds six-colour flatbed at SGIA


Inca has launched a six-colour flatbed printer for large-volume runs at Specialty Printing and Imaging Technology Expo (SGIA) '07.

The Columbia Turbo Plus printer can print on rigid or flexible substrates up to 40mm thick at 123sqm per hour.

It handles a maximum sheet size of 3.2x1.6m at a consistent throughput of up to 24 full-bed sheets per hour.

The machine incorporates two additional print modules that increase the total number of print heads to 96 compared with 64 on previous model, the four-colour Columbia Turbo.

The extra heads allow the Turbo Plus to incorporate white or two additional colours from a choice of light cyan and light magenta, as well as green, orange or violet.

Inca director of marketing Heather Kendle said: "The Columbia Turbo Plus provides the same diversity of printing as the Spyder, but with faster productivity for those printers that typically work with larger print runs."

Source: printweek

Packaging Innovations Weekly Wrap

The UK is considering setting higher targets for packaging recycling and reusability by businesses, as excess packaging concerns continue to dominate the public arena.

Cereplast has launched a new resin, partially made from bio-materials, to reduce reliance on petroleum-based products.

Keeping with the environmental theme, Avery Dennison has launched a thin-gauge label stock it says will reduce the environmental impact of companies' activities by reducing associated carbon emissions.

ENVIRONMENT

The UK Environment Minister Joan Ruddock has proposed higher than minimum recycling and recovery targets for UK businesses to help the country meet its obligation under the European Commission Packaging Directive.

The directive sets minimum standards for recycling and recovery at 55 percent and 60 percent respectively.

Ruddock has proposed UK recycling targets be set at 55.7 percent in 2008, rising to 58.4 percent by 2010.

Recovery targets will be 60.6 percent in 2008, rising to 63.4 percent by 2010, Ruddock says.

The target system applies to businesses handling more than 50t of packaging per year with an annual turnover of more than £2m.

Bio-based sustainable plastics manufacturer Cereplast has launched a new range of sustainable resins.

Cereplast Hybrid Resins, also known as Biopolyolefins, replace 50 percent or more of the petroleum content used in traditional plastic resins with bio-based materials such as starches from corn, tapioca, wheat and potatoes.

Cereplast says the new resin has the same physical characteristic and price point as traditional polyolefin, reducing companies' reliance on oil-based products.

MATERIALS INNOVATION

Avery Dennison has released a thinner-gauge self-adhesive film label stock, which it says will challenge current conceptions of the cost of quality self-adhesive film labelling for bulk products in the personal and home care markets.

Fasson Lean Film is extremely thin allowing a greater number of printed labels per converted reel.

This translates to fewer stops on the printing press and dispensing line, with lower weight and bulk for transportation and its associated energy costs, Avery Dennison senior product manager Jan’t Hart says.

"With 'cheeses' nearly 30 percent longer, converters can benefit from fewer reel changes on the press," Hart says.

"Based on customer trials, we see estimated average savings of around 22 percent less downtime – which creates real improvements in production efficiency".

Gas permeability testing equipment supplier Versaperm has launched a new machine that simplifies the "difficult and long-winded" task of measuring oxygen and carbon dioxide permeability of packaging films.

The multi-chamber WMTV Mk VI measures water vapour permeability of modified atmosphere packaging films down to one part per million.

The highly automated machine can be configured for up to three standard-sized chamber modules, either for flat samples, such as films, or for containers, Versaperm says.

Versaperm says the machine will be invaluable to frozen food manufacturers as water vapour escaping from the product and migrating through packaging can cause freezer burn.

RFID

UK-made cigarette products will now contain RFID chips in their packaging, as HM Revenue and Customs (HMRC) and the tobacco industry crack down on counterfeit cigarettes.

Beginning in 12 months when unmarked packets will have left the supply chain, HMRC officials will use hand-held RFID readers to determine the authenticity of individual cigarette packets and whether or not duty has been paid.

The HMRC says an estimated £4.6bn in revenue was lost in 2004-05 due to illegal cigarettes imported from China and Eastern Europe.

RFID tags will be added to packs of loose tobacco in October next year.

Details of the RFID tag and its supplier have not been released, but the cost will be met by the UK's four main cigarette manufacturers – British American Tobacco, Imperial Tobacco, JT International and Phillip Morris International.
Source: packaging-technology

Litho Supplies continues assault on wide-format with Andersons acquisition


Litho Supplies has strengthened its hold on the wide-format market with the buyout of supplier Andersons Graphica Plus for an initial cash payment of £600,000 and is "actively pursuing" further acquisitions.

The deal, which completed yesterday (23 October), followed two years of discussion between the firms. It included a share issue of £200,000 and a £100,000 deferred cash consideration payable 12 months after completion.

According to chief executive Michael Hammond, Litho's acquisitive strategy is key to growth in the current "stagnant" climate. Its half-year results showed a slight uplift in profits and turnover of 5.65% and 2.84%, respectively.

Hammond added that Andersons' wide-format expertise underpinned the move. "We've been moving into wide-format for years. It's a growth area where there is an opportunity to increase turnover," he said.

The move will give 230-staff Litho Supplies access to a wider customer base and allow it to distribute kit from Andersons' portfolio, which includes wide-format machines from Mimaki and Mutoh.

Hammond added: "We have an allied product range. It's complementary to what we do and it's an opportunity to move forward in the market."

He said that Andersons will "continue to trade as before, just 100% owned by us".

Calum Anderson, who held the majority stake in the Hampshire-based family business, will retire, while younger brother Greg takes on a role as Litho Supplies sales manager from today.

According to Hammond, "staff will remain in the short term, but we will continue to evaluate the business along with the Andersons".

Source: printweek

Materials costs to hurt Smurfit's 2007 figures

Smurfit Kappa's full-year profits will be lower than expected because of the rising cost of raw materials.

The Dublin-based packaging and paper group said in a trading update this week that it continued to experience "significant input cost pressure", which would have an impact into the fourth quarter of 2007.

However, it also said it would report quarter-on-quarter EBITDA growth for the third quarter, increased margins and a "significant increase in free cash flow", which would be used to reduce debt.

While Smurfit Kappa has forecast lower profits, rival DS Smith said last week (17 October) that its UK Paper and Corrugated Packaging segment had "benefited strongly" from price increases for corrugated case materials, which were put in place to recover a substantial rise in energy and waste paper costs.

The firm said it expected price increases pushed through in the second half of 2006/07 to boost pre-tax profits to more than £50m in the first half of the current financial year.
Source: packagingnews

MP uses Bill to lobby government on packaging reduction


A Scottish MP has launched a Private Member's Bill this week that sets out measures to cut excess packaging.

Jo Swinson, Liberal Democrat MP for East Dunbartonshire, used her Packaging (Reduction) Bill to call on the government to establish a national body to promote and enforce packaging reduction.

She would also like the Courtauld voluntary agreements to be translated into binding targets and a national organisation to be put in place to enforce them.

Swinson's bill would also boost powers for trading standards officers, allow consumers to leave packaging in supermarkets for disposal and introduce a deposit scheme for carrier bags.

Commenting on the bill, Swinson acknowledged that some packaging is essential and "protects the products we buy, provides information to the consumer and acts as a marketing tool to boost sales".

However, she said we have to ask how much of it is necessary, and how much is "wasteful, needless and excessive".

Swinson said the government had taken some steps to tackle excess packaging. For example, the Waste and Resources Action Programme has taken positive steps on research into minimising packaging and EU regulations on producer responsibility, and the essential requirements of packaging have been adopted into UK law.

However, she added that these attempts had been "too timid and too slow" and urged the government to "sit up and take notice that the packaging problem will continue to get worse unless they take strong, effective action".

Environment Minister Joan Ruddock acknowledged that the Courtauld commitments had been a good start, but said she was now "pushing the supermarkets to go further".

Clariant adds 'glamour' to 100% recycled plastic containers

Clariant, the chemicals manufacturer, is using K2007 in Düsseldorf to showcase a line of new products to help designers make environmentally friendly packaging stand out on shelf.

The Swiss firm has launched a range of colours to "bring glamour" to plastic containers using up to 100% post-consumer waste, which are typically dull in colour.

The Enigma products includes translucent blues and vibrant greens, which are "attractive enough to compete for the consumer's attention" on store shelves.

Clariant has also developed a range of colour masterbatches in response to increased demand for fully biodegradable packaging, which has previously been dependent on oil-based colours.

Renol-natur is made entirely from plants and is, therefore, fully compostable.

"The environment is a hot topic and our '360 degree Service' philosophy helps our customers get things right, both in terms of the environment and compliance with regulations in all the countries they operate," said Chris Pandis, global head of marketing for the packaging division.

"It's early days for biopolymers, but the interest we're already seeing is phenomenal."

Meanwhile, DuPont has also launched new polymers for packaging made from renewable resources that are said to provide "comparable or better performance" than the oil-based materials they replace.
Source: packagingnews

Oct 23, 2007

M&S bottom of the league for recyclable packaging


Marks & Spencer uses less recyclable food packaging than any of its main rivals, according to a report by the Local Government Association (LGA).

Research published today (23 October) revealed that 60% of M&S packaging was recyclable. Asda was the best-performing supermarket overall, with 70% of its packaging being recyclable

None of the supermarkets did as well as market traders, whose packaging was 79% recyclable. The report also found that up to 40% of packaging could not be recycled.

The LGA warned that all supermarkets needed to take urgent action to reduce packaging or Britain would fail to meet EU recycling targets.

The LGA commissioned the British Market Research Bureau to buy a range of 29 common food items from six supermarkets – Asda, Lidl, Marks & Spencer, Morrisons, Sainsbury's and Tesco – as well as a local high street shop and a large market.

The total weight of the products and the packaging was recorded, and the component parts of the packaging were weighed separately to measure the proportion of packaging that was recyclable or rubbish.

An average of five per cent of the total weight of the products bought for the study was made up of packaging, the LGA said.

Jane Bickerstaffe, director of the Industry Council for Packaging and the Environment, said this figure showed that packaging "saves more waste than it generates".

"But weight isn't the only measure of environmental impact – carbon footprint is also important. So too is using recycled content," she added.

Bickerstaffe said that if products were damaged or spoiled as a result of inadequate packaging, all the energy and materials in those products would be lost.

Recycling survey adds to pressure on food sector

A government survey showing that 40 per cent of UK food packaging cannot be recycled will add to the pressure on manufacturers to make the switch

EU-wide recycling regulations set targets for each member country, whose governments must then reach those rates over a set number of years. In the UK, the responsibility has devolved to local councils.

The pressure on UK food and drink processors, some of the largest producers of packaging, is mirrowed across the bloc.

The UK's Local Government Association, made up of regional government representitives, commissioned the survey as a means of determining whether more effort is needed to reduce landfill waste.

"Supermarkets must take urgent action to reduce excessive packaging or Britain will fail to meet its recycling targets," the council leaders concluded in releasing the survey today.

The British Market Research Bureau (BMRB), which did the research for the councils, found that five per cent of the total weight of the average shopping basket was made up of packaging.

Retailers considered to be the most environmentally friendly were found to have low levels of packaging, a high proportion of which was recyclable.

An average Lidl shopping basket had 799.5g on average, making it the supermarket with the heaviest packaging.

Meanwhile about 60 per cent of the packaging in a Marks & Spencer basket could not be recycled, making it the least green of the retailers.

Asda was the best performing supermarket, with packaging weighing 714g on average per basket, 70 per cent of which was recyclable.

But the market was the best overall, with packaging weighing 710.5g, 79 per cent recyclable.

Many supermarkets are taking action to cut back on excessive packaging, but the research proves there is an urgent need to do more, said Paul Bettison, chairman of the LGA's environment board.

"Councils and council tax payers are facing fines of up to £3b if we do not dramatically reduce the amount of waste thrown into landfill," he stated.

Recycling rates in Britain have been increasing, with consumers becoming aware of the problem and a slow tightening of regulations and potential fines on businesses.

Councils are also extending and improving their recycling services. By pressuring the supermarkets the LGA is also transfering responsibility up the food chain to processors.

Last week the Waste and Resource Action Programme (Wrap) reported that over the past year an extra 5.8m tonnes of extra annual recycling capacity had been created.

Wrap also reported that new infrastructure was also in place to recycle about 86m tonnes of material over its lifetime.

Wrap is a UK national agency set up by government to co-ordinate the reduction of landfill volumes,

Wrap also reported on work in areas such as overcoming technical barriers to allow recycled plastic to be used for milk bottles, creating an industry-wide agreement in the retail sector to take action on packaging, and developing quality standards for materials such as recycled paper and compost.

About 24 major retailers and manufacturers are now working with Wrap to reduce waste by 160,000 tonnes by 2008.

Britvic, Cadbury Schweppes, Coca-Cola Enterprises, Dairy Crest, Duchy Originals, Masterfoods, McBride, Nestle and Premier Foods are among the companies that have made commitments to the programme.

Tougher packaging waste targets in the UK are due to come into effect in January, according to proposals unveiled this month by the country's environmental minister.

The new business targets would come into effect in January 2008 to help the UK meet its obligations under the EU's packaging directive.

The proposals would require more packaging to be recovered and recycled. Government also proposes setting higher targets for 2009 and beyond to increase the level of recovery and recycling.

After 2008 member states have the discretion to set targets beyond the minimum required under an EU agreement.

Since the introduction of the UK packaging regulations recycling has increased significantly, from to 57 per cent last year, from 27 per cent in 1997, according to national government statistics.

The EU minimum recycling target is 55 per cent. The target for recovery is 60 per cent.

The UK government wants to increase the recycling target to 55.7 per cent in 2008, 56.8 per cent in 2009 and 58.4 per cent in 2010. The recovery target would be 60.6 per cent, 61.8 per cent and 63.4 per cent in the same years.
Source: foodproductiondaily

Roland DG goes green with inks for AdvancedJet kit


Roland DG has launched an environmentally friendly ink for its AdvancedJet industrial printers.
EcoXtreme LT is a "cost-effective" alternative to the existing Roland EcoXtreme ink range, and is suitable for high-mix, high-volume production of short-term graphics.

Applications include event and campaign signage, trade show graphics and temporary retail displays.

EcoXtreme is recommended for jobs that need to last longer, such as fleet graphics and retail décor. Both have been developed for the wide-format AdvancedJet series to provide good colour density and durability across a variety of applications.

The range comes in six colours – CMYK plus light cyan and light magenta– and is cyclohexanone free.
Source: printweek

Packaging Market Weekly Wrap

As the third quarter of the financial year draws to a close, paper-based packaging companies Huhtamaki, Stora Enso, UPM and Ahlstrom have issued profit warnings on the back of a weakend US dollar and increasing costs.

Yet metal-based companies such as Alcoa and Crown Holdings have reported strong profit growth.

PROFIT WARNINGS

Increasing costs of raw materials, rising energy costs and the weak dollar are being blamed by paper packaging companies for expected drops in third-quarter profits.

Packaging company Huhtamaki Oyj has revised its full-year profit estimate downwards, following weakened volumes and operational results in September as well as softer volume outlook for the remainder of the year.

In an earlier outlook, an improvement in operational result was expected to compensate the previously announced significant reduction in corporate net.

2007's operational result is now expected to be around the same level as 2006 (€138.1m).

Stora Enso Oyj, packaging board manufacturer and one of the world’s largest forest product companies, says operating profit in the third quarter was slightly below the level achieved over the same period last year.

"Continuing high wood and recycling fibre costs and a weakening US dollar had a negative impact on the period," the company says.

It expects similar conditions to continue through the fourth quarter.

Paper, label and wood product manufacturer UPM blames rising wood costs and the strengthened euro for its expected third-quarter profit drop.

However, UPM says the full-year operating profit excluding special items is on track to exceed that of 2006.

Speciality paper and fibre manufacturer Ahlstrom says its full year operating profit excluding non-recurring items is expected to be "somewhat below the 2006 level" of €87.3m.

It blames the fall on weakening demand in its Label & Packaging Papers business.

Despite the overall company outlook, Ahlstrom expects its technical papers and fibre composites businesses to improve their operating profit from 2006.

REVENUE GROWTH

It's not all doom and gloom in the packaging sector, as companies in the corrugated paperboard and metals sector expect increased third-quarter profits.

Retail-ready corrugated case specialist DS Smith says its pre-tax profits for the first half of 2007 have been boosted to £50m by high prices for materials in the second half of the 2006-07 financial year.

DS Smith says its UK Paper and Corrugated Packaging segment had "benefited strongly" from the price increases, which were put in place to recover from a substantial rise in energy and waster paper costs.

It says the likely pre-tax profit for the six months to 31 October is expected to be £50m – well up from £29m for the same period last year.

US metal packaging specialist Crown Holdings has also recorded profit increases across its European packaging divisions.

Specialty packaging profits rose almost £1m to £4m in the three months to 30 September.

Total group profits for the third quarter rose nearly 20% to £153m, driven by diversity of products, firm volumes and emerging markets, Crown says.

Aluminium manufacturer Alcoa reported its third quarter profits from continuing operations have risen three percent to US$558m.

ACQUISITIONS

Gresham Private Equity has bought toothpaste tube manufacturer Betts Global from Permira, Royal Bank of Scotland and the Bank of Scotland in a deal worth more than £110m.

Betts' customers include Colgate, Palmolive, GlaxoSmithKline, Procter & Gamble and Unilever.

Betts's new chairman Paul Bateman, former group operations director for Boots, says the deal will provide the company with the backing to expand into the personal care market and enter new segments.

"The support and firepower of Gresham Private Equity will enable us to invest in our manufacturing facilities," Bateman says.
Source: packaging-technology

PrintWeek Awards 2007


Around 1,400 of the print industry's finest helped celebrate the best in UK print last night.

Inc Direct managing director Noel Warner and operations director Wesley Dowdling were ecstatic about being crowned PrintWeek Printing Company of the Year, just a year after winning SME Company of the Year.

Congratulations to all 24 recipients of the 'Prism' trophies. For a full rundown of the night, including all of the pictures, see this Thursday's PrintWeek magazine.



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PrintWeek Company of the Year

Winner
Inc Direct

Commended
Anton Group
York Mailing



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SME Company of the Year
Winner
SV.TWO

Commended
Clear Packaging

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Pre-press Company of the Year
Winner
Zebra

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Environmental Company of the Year
Winner
Cambrian Printers

Commended
Buxton Press

--------------------------------------------------------------------------------
Customer Service Team of the Year
Winner
Pindar

Commended
Oxuniprint

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Student of the Year
Winner
Ania Witych, Plymouth College of Art & Design

Commended
Stephanie Bervas, London College of Communication
Laura Jarman, Plymouth College of Art & Design
Adrian Merchant, Plymouth College of Art & Design

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Post-press Company of the Year
Winner
NGS Print Finishers

Commended
Celloglas
Hunter and Foulis

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Label Printer of the Year
Winner
AGI Labels

Commended
Buckleys Print and Packaging

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Catalogue Printer of the Year
Winner
Precision Colour Printing

Commended
Pindar

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Innovative Printer of the Year
Winner
Augustus Martin

Commended
SMP Group

--------------------------------------------------------------------------------
Packaging Printer of the Year
Winner
Print 4

Commended
Duncan Print Group

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Business Magazine Printer of the Year
Winner
St Ives Andover

Commended
The Friary Press
Wyndeham Heron

--------------------------------------------------------------------------------
Brochure Printer of the Year
Winner
Hampton Printing (Bristol)

Commended
Butler & Tanner

--------------------------------------------------------------------------------
Book Printer of the Year
Winner
Butler & Tanner

Commended
Beacon Press (Pureprint Group)
TJ International

--------------------------------------------------------------------------------
Direct Mail Printer of the Year
Winner
Geoff Neal Litho

Commended
Alito Color Group
--------------------------------------------------------------------------------
Newspaper Printer of the Year
Winner
Peterboro Web

Commended
Guardian Print Centre
News International (London)



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Report & Accounts Printer of the Year
Winner
Fulmar Colour Printing

Commended
J Thomson Colour Printers
St Ives Westerham Press



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Consumer Magazine Printer of the Year

Winner
Southernprint

Commended
Pindar
St Ives Peterborough



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Digital Printer of the Year

Winner
Lorien Unique

Commended
Inc Direct



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Point-of-Purchase Printer of the Year

Winner
Creative Display Group

Commended
Simpson Group



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Fine Art Printer of the Year

Winner
Beacon Press (Pureprint Group)

Commended
Empress Litho



--------------------------------------------------------------------------------
Poster Printer of the Year

Winner
SMP Group

Commended
Augustus Martin



--------------------------------------------------------------------------------
Creative Repro Company of the Year

Winner
Tag Creative

Commended
Masterpiece Creative Design
Pureprint Group



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Social Stationery Printer of the Year

Winner
Print 4

Commended
The Sherwood Press

Source: printweek

Bosch deal targets bag-in-box boon

Bosch hopes to expand its presence in the emerging market for bag-in-box cartons through a new strategic partnership with Paal Verpackungsmaschinen.

The company said yesterday that it will tap growing demand among food and beverage groups for both cartons and entire packaging lines, by licensing Paal to manufacture carton machines that will allow it step up production of its products.

Bosch claims that the deal is focused mainly on improving sales of both companies' entire packaging lines amidst significant growth in the sector, particularly for bag-in-box products.

Under the license, Paal will produce both the CBI and CBC machines, which are used to construct folding cartons.

Both of these machines, or cartoners, have a modular structure and use a three stage format allowing for production of six, nine and 12 inch packages for the food industry, Bosch said.

Additional design features also allow for synchronized, semi-continuous or continuous operations, depending on the requirements of individual clients, the company added.

The machines, which will be used by both companies, to step up production of complete packaging lines from the cartoners themselves, to case packing and palletising as increasingly demanded by the market.

With the products available from both companies, manufactures will be able to use the expertise and technologies of both Bosch and Paal to further their own packaging needs, the company said.

The two packagers will also consult closely on quality, technical specifications and component use in their products as part of the agreement.
Source: foodproductiondaily

Luxury packaging trade show tackles green issue

This year' luxury packaging show, LuxePack, promises a record number of exhibitors and conferences tackling the issue of eco-luxury packaging.

The annual event, to be held 23-26 October in Monaco, is specifically for specialists in luxury goods packaging in the perfume and cosmetics industry, as well as jewellery, fine foods and alcohols.

The fragrance and cosmetics market is again set to feature highly in the exhibition, with figures from 2006 suggesting that approximately 75 per cent of the visitors come from this market category.

Three spaces are provided for exhibitors: Luxe Formulation which is specifically for those in the cosmetics and perfumery markets; Luxe Display, concentrating on materials for brand creation at point of sale; and Luxe Creation with stands created for designers who want to accompany luxury brands in every phase of their development.

Special exhibits at this year show will include an event highlighting the 20 years of Luxe Pack, in collaboration with the 10 exhibitors who have participated in the 20 years of the show.

The Luxe Pack Trends Observer also returns for its second year, following its successful debut in 2006. The Observer, featuring specialists from the sector, presents a review of the current trends in the industry for exhibitors and visitors alike.

Highlights from the conference programme include a roundtable discussion on the advent of sustainable luxury, concentrating on how the luxury fashion, fragrance and skin care markets can address ecological concerns.

Following a similar eco theme, Catherine Ronge from O2 agency, will discuss how eco-packaging is not simply the cutting down on packaging, through volume and subsequently weight, but may involve a complete rethink of the packaging's role itself.

Talks specifically tailored for the cosmetics sector include 'What the beauty/cosmetics sector can learn from other premium and luxury markets?', discussing how to break away from the mundane and the ordinary in cosmetics packaging.

In addition, Agnes Kubiak from Style Vision, will tackle the theme of 'Luxury and Men', asking how the luxury market can accommodate the increasing number of male purchasers who consider brands as a means of expressing personal style and values, rather than social class or positioning.
Source: foodproductiondaily

Oct 21, 2007

Rexam pours £78m into Danish can site


Rexam is to invest £78m in a new greenfield aluminium beverage can plant in Fredericia, Denmark.

Rexam expects the new facility, which will be the first of its kind in the country, to be operational during the first half of 2009.

It will initially operate two production lines with a total capacity of 1.2 billion 33cl and 50cl cans.

Rexam said the sustainable qualities of the beverage can were driving sales in Denmark.

Tomas Sjolin, Rexam's director of beverage can for Europe and Asia, said cans had accounted for 20% of beer sales in Denmark since they were reintroduced in 2002.

Rexam also continues to review its options after its acquisition of Russian beverage can maker Rostar was rejected by the Russian Federal Antimonopoly Service (FAS) in September.

Further announcements from Rexam are expected in "due course".
Source: packagingnews

Spiralling materials prices hit Agfa profits


Agfa has said rising raw materials costs and the low US dollar have hit profits, as it announced preliminary results for the third quarter.

The company said the recurring earnings before interest and taxation (EBIT) of its graphics unit would be £8.3m-£10.45m (€12m-15m) in the third quarter of 2007, while the fourth quarter is expected to be in line with Q4 last year.

Agfa, which will release full results for the quarter on October 31, said the UK operation was "stable", with sales up 2%.

Worldwide sales for Agfa Graphics were up slightly to £278.9m, reversing the decline in the first half of 2007 as a result of the 2006 price increases and the discontinuation of some unprofitable analogue business.

The high cost of aluminium and silver hit the pre-press segment, but profitability improved to an EBIT margin of 7% because of the implementation of a cost-savings plan.

The other negative factor was the delay in the market introduction of Agfa Graphics' industrial inkjet portfolio, which includes the Anapurna range. Agfa now expects the portfolio to be profitable in 2009.

Agfa Specialty Products posted solid third-quarter sales of £48.1m, an increase of 17% compared with last year. Its profitability was affected by higher silver costs and negative mix effects. The division's recurring third quarter EBIT will be in the range of £4.18m-£5.57m and for the full year is expected to be in line with its target margins of 12-15%.

For the full year 2007, the group expects sales in line with last year at stable exchange rates and a recurring EBIT margin of about 6%.
Source: printweek

Mondi rejigs divisions to boost efficiency


Mondi Group, the packaging and paper multinational, has reformed its divisional structure to wipe out duplication and simplify its business.

The group said the move was not a change of strategy but a drive to improve efficiency. There would be job losses but these would "not be significant".

In January 2008, Mondi Packaging and Mondi Business Papers will be replaced with a Europe and International division and a South African division.

The former will include both packaging and paper businesses outside South Africa and be headed by current packaging chief executive Peter Oswald.

Mondi South Africa, meanwhile, will be mostly made up of that country's business paper set-up. The firm' shares fell marginally to just over 449p following the news.

Mondi Group chief executive David Hathorn said: "This will improve effectiveness and efficiency."

Mondi demerged in July from its parent, mining group Anglo American, so investors could more easily evaluate its business. It employs 34,000 staff and has sales of more than £4bn.

Acquisitive Scott Group buys Marlaw Pallets


Scott Group, the packaging and pallets specialist, has snapped up yet another firm, Marlaw Pallets, and hopes to add £28m to its turnover.

Scott, based in Rosyth, Fife, said the deal "reinforced" its move into the packaging sector and was its 27th acquisition since 1998.

Managing director John Scott said: "Taking on Marlaw will see us continue to diversify and pursue strong growth in areas like packaging and reconditioned pallets."

The deal increases Scott Group's turnover from £95m to £123m and staff numbers by 300 to 1,150. Scott hopes to hit £150m turnover within three years.

Scott, who runs the firm with his brother Norman, said: "The addition of Marlaw gives us an excellent platform to explore further growth in Europe."

Marlaw, based in Airdrie, sells more than three million reconditioned pallets a year and is headed by managing director Mark Lawlor.

It was launched 25 years ago and is one of the UK's largest makers and suppliers of pallets.

Paper firms struggle in third quarter


Two of Europe's biggest paper manufacturers have issued profit warnings ahead of the release of third quarter financial results, due later this month.

Stora Enso announced that continuing high costs for wood and recycled fibre, coupled with the weakening US dollar, have impacted on its results.

The company reported that on a comparable basis, the operating result was slightly below the level achieved in the third quarter of 2006.

It expects that high wood and recycled fibre cost pressure will continue during the Q4 2007 and in turn also affect financial results for that period.

A spokesperson for Stora Enso told printweek.com: "One of the main impacts of these rising costs is that it's hurting the profitability of the industry.

"It's a cost increase that comes through very quickly and it's likely to affect the fourth quarter results as well."

UPM has also cited the rise in wood costs as behind the slump, and the strengthened euro means the company's operating profit will be lower than its results for the same time last year.

However, the manufacturer reported that for the full year 2007, operating profit excluding special items is forecast to exceed that of 2006.

Stora Enso's third quarter 2007 results will be published on 25 October while UPM is set to release its results on 30 October 2007.
Source: printweek

Oct 18, 2007

Tesco wine goes retail-ready


Tesco is rolling out retail-ready packaging across its 1,100 wines in a massive undertaking with all of its major suppliers.

The firm has completed more than half the project, working with six suppliers, including Constellation, Concha Y Toro and Thierry's.

ZGM, Raisin Social and D&D Wines have also worked with the supermarket to make good-looking, more functional packs with carry handles.

The new packaging includes country-of-origin symbols, easy-to-open panels or letterbox openings, and artwork that "mirrors" bottle label designs.

"The aim of the project was fourfold," said a Tesco spokeswoman. "We wanted to make packaging easy to recognise and easy to open, display and handle.

"In the past, wine packaging caused problems for staff: products were difficult to recognise, cases difficult to open, and presentation was unattractive and impractical."

Dan Jago, category director for beers, wines and spirits, said: "The revised packaging is more practical and effective for in-store merchandising."

Details on the cost of the project and who was paying, supermarket or suppliers, was not available.

Bradman Lake bought out of administration by Langley Holdings


Bradman Lake Group, the UK packaging machinery manufacturer, has been bought by engineering conglomerate Langley Holdings after it fell into administration.

The sale yesterday (17 October) by administrators from PricewaterhouseCoopers saves 260 jobs at Bradman Lake’s sites in Bristol and East Anglia, as well as 100 at its US and German operations.

The sale comprises the business and assets of Bradman Lake companies BL Bristol Group, BL Bristol and BL Group.

A PwC spokeswoman said Bradman Lake had gone into administration because it did not have "the right capital structure".

Bradman Lake Group specialises in cartoning, case-packing, flow-wrapping and shrink-wrapping equipment, and operates under the Bradman Lake, Autowrappers and Europack brands.

After moving into a new manufacturing site in Norwich in August, it revealed plans to launch dozens of new products.

Around 60% of the group’s £35m sales come from overseas markets, and this year it has opened new offices in Moscow and Shanghai.

Earlier this year, the group sold its Albro, Dico and Gravfil filling equipment brands to a management team.

Langley Holdings has grown in recent years through acquisitions in overseas markets, including Germany and France. It has sales of £350m and employs 2,500 people, and operates in a variety of industries, including aerospace, energy and railways.

Bosch and Paal team up for bag-in-box push

Bosch Packaging Technology plans to grow its presence in the bag-in-box sector through a licensing agreement with fellow German packaging machinery supplier Paal.

Under the arrangement, Paal will produce carton machines for the food sector, which will be integrated into the packaging lines of both firms.

The modular CBI and CBC cartoning machines, which have a three-stage format and standard pitches of six, nine and 12in, will be available through the distribution networks of both firms.

Bosch Packaging Machinery, based in Waiblingen, said the co-operation would allow both firms to develop their bag-in-box business and also lead to a "significant increase" in sales of complete lines, comprising the cartoners, case packing and palletising.

Bosch develops packaging lines for the pharmaceutical, confectionery and cosmetics industries.

Paal, based in Remshalden, also distributes its machines to the food, beverage, bakery and pet food sectors.
Source: packagingnews

Anger from print industry over Darling’s plans for tax changes


Printers and industry bodies have reacted angrily this week to Alistair Darling’s controversial plans to abolish capital gains tax (CGT) taper relief.

Darling’s proposal, which would mean a virtual doubling of CGT taxation from 10% to 18%, has already faced stiff opposition from within his own party, as well as from the Conservatives.

Now, in an open letter to the Chancellor, the heads of the British Chambers of Commerce, CBI, Federation of Small Businesses and Institute of Directors, have urged Darling to “suspend [his] decision”.

In addition, printers such as Media & Print Investments (MPI) managing director Mike Dolan have expressed their outrage at the Gov­ernment’s proposal.

Dolan said: “It’s an appalling mistake by Alistair Darling. There are an awful lot of owner-operators of companies, both printers and in other industries, who will undoubtedly suffer from it.”

Multigraphics managing director Gary Lasham said that the proposal would punish individuals, rather than the big “million-making” private equity firms.

He added: “It’s not a tax that’s going to hit the big private equity people. The tax will hit the private individuals who have risked their own money, sometimes their own homes, in order to create a business and create wealth. I think it’s absolutely bloody outrageous.”

Another controversial aspect of the Chancellor’s report was the proposed termination of indexation allowance, which takes into account inflation when calculating CGT.

Chief executive of CPI UK Mike Taylor said: “Obviously assets, by virtue of what they are, do go up in value simply by inflation. So, by eliminating indexation, one is being taxed on inflation. I think that’s probably a mistake. If you have owned a business for 30 or 40 years, the loss of indexation will prove quite expensive.”

Meanwhile, tax expert Grant Thornton has predicted a rush of business sales ahead of 6 April 2008, when the changes are due to come into effect, and a downturn in private equity activity.

However, Europa Partners’ Nick Mockett said a downturn in the private equity sector, though likely, has more to do with the debt market.

Source: printweek