Eight questions for '08

This year has been another rollercoaster ride for the industry. While the printweek.com editorial team takes a (well-earned) break over the Christmas season, we've turned to the great and the good of UK print and asked what we can expect from the year to come.

Here's the forecast from Dave Wigfield, Kodak Graphic Communications Group director & general manager UK & Ireland.

1. What do you believe will be greatest opportunities for printers to grow their businesses in 2008?
I believe that three things will make up the best opportunities for business growth in 2008. By using a combination of the power of the internet, variable data, and integrated marketing ideas, printers will be able to add value to their customers' businesses. This, in turn, will help them to sell more print and services. The second way in which they can grow their business is to get the right pieces of the puzzle in place by hiring the best people. The third is respecting the environmental trends in the industry and capitalising on this opportunity for change.

2. What will be the greatest threat to your sector in 2008?
In 2008, raw material costs, such as aluminium and oil, will continue to rise. This continues to be a threat to the print sector.

3. How can the industry raise its profile next year?
To raise the profile of the industry, I think we must start reaching out to university graduates and young business leaders, attracting them to our industry and selling the business to a new generation of potential print community members.

4. What do you believe is the most under-recognised aspect in printing that is likely to become more important in 2008?
The sheer power of print. Although being the fourth-largest manufacturing business in the UK, print is not recognised as this. Technologies being developed will continue to show that print can be a part of any company's integrated marketing plans.

5. Which print sectors do you believe will experience the greatest innovation next year?
Each sector has changes occurring due to technology evolution. Drupa will highlight some new trends around the impact of volume application of digital inkjet technology in a market where today offset is unchallenged. This will definitely be an interesting area to watch throughout 2008.

6. What should the print industry do when it gets back to work after the holidays?
We should all focus on meeting customer's needs in terms of value creation and efficiencies – helping our customers build strategies to win contracts in the current climate and create growth for their businesses. This should take the place of the pound purchasing-driven behaviour that we have seen throughout the last year.

7. If the government stepped in and did one thing to help the industry, what would you hope that would be?
I think we would benefit from less intervention from the government across the board. Privatised market responsive companies solve trends and problems better than governments. I do think it should provide funding for education to allow a high level of technical and business training for the manufacturing industry.

8. What will you do differently in 2008?
Play more golf in Scotland?

Here's the forecast from MAN Roland GB sales director for sheetfed products Gary Doman.

1. What do you believe will be greatest opportunities for printers to grow their businesses in 2008?
I still believe that the greatest opportunity for a printer to grow lies in the desire to invest in the most productive and efficient equipment available, and get the most out of it.

2. What will be the greatest threat to your sector for 2008?
I think that there are a number of threats that we are currently aware of, and will have to continue to monitor throughout next year. Perhaps the three that immediately come to mind are: printers' fear of investment; competitors continually reducing prices in order to win business, but without making any money; and, of course, new equipment introductions at Drupa.

3. How can the industry raise its profile next year?
Drupa should help for starters. Printers themselves can raise their own profiles, though, by adding more value to the services that they provide.

4. What do you believe is the most under-recognised aspect in printing that is likely to become more important in 2008?
Incorporating more elements of the printing process in-line is still definitely under-recognised. This also refers back to the previous comment about adding value to basic printing capabilities.

5. What print sectors do you believe will experience the greatest innovation next year?
We have already been told that the forthcoming Drupa with be the inkjet Drupa, so I am looking forward to seeing what is actually introduced at the event. Apart from that, I anticipate gradual improvements in productivity and efficiency across all sectors of the industry, and ever more integration with JDF-capable systems.

6. What should the print industry do when it gets back to work after the holidays?
Convince itself that, in order to move forward, it needs to continually re-invest in the latest and most efficient hardware. MAN Roland has some suggestions to make to those printers.

7. If the government stepped in and did one thing to help the industry, what would you hope that would be?
Reduce interest rates, and then keep them stable.

8. What will you do differently in 2008?
As a company, I believe we should look to focus even more on providing printers with a unique product package, which would include our printcom consumables range and our finishing products.

Here's the forecast from Webmart managing director Simon Biltcliffe.

1. What do you believe will be greatest opportunities for printers to grow their businesses in 2008?
Single copies of anything; the inexorable drive of "value in" by digital printers will continue.

2. What will be the greatest threat to your sector for 2008?
We are with our FreePrintManagement.com! Print management for free by a print manager... the revolution has begun.

3. How can the industry raise its profile next year?
By showing clients that through print, they can have a one-to-one relationship with their clients, when most other media are fragmenting.

4. What do you believe is the most under-recognised aspect in printing that is likely to become more important in 2008?
The experience that is heading out of the industry and retiring – there are few taking their place and none with the passion!

5. What print sectors do you believe will experience the greatest innovation next year?
Magazine printers with the "free mag" sector kicking in plus new distribution challenges and packaging with the eco-warriors (rightly) demanding more effectiveness.

6. What should the print industry do when it gets back to work after the holidays?
Invest in our future by training the you and me of tomorrow in the industry, rather than sitting back and bemoaning the youth of today's lack of skills.

7. If the government stepped in and did one thing to help the industry, what would you hope that would be?
It's not for the government to step in and do anything. Print is a free market business that doesn't need intervention.

8. What will you do differently in 2008?
Conserve cash – the credit crunch hasn't yet hit and it will in Q2 with full venom. Watch out!

Here's the forecast from KBA UK managing director Christian Knapp.

1. What do you believe will be greatest opportunities for printers to grow their businesses in 2008?
Large-format presses, since working smarter is better then simply working harder.

2. What will be the greatest threat to your sector for 2008?
Mass hysteria and another run on our institutions.

3. How can the industry raise its profile next year?
By celebrating Drupa with lots of orders for all equipment sectors.

4. What do you believe is the most under-recognised aspect in printing that is likely to become more important in 2008?
UV inkjet and waterless/keyless printing – just think of the cost and environmental benefits.

5. What print sectors do you believe will experience the greatest innovation next year?
Web- to-print, also called internet printers or matrix printers.

6. What should the print industry do when it gets back to work after the holidays?
What holidays? Many of our customers are working and so are we.

7. If the government stepped in and did one thing to help the industry, what would you hope that would be?
Resign and stop meddling.

8. What will you do differently in 2008?
Sleep, eat and drink less – work harder and smarter.
Source: printweek

Case for defence

On the face of it, heavy-duty corrugated board packaging might seem straightforward. In reality, however, there are variations on triple-wall and double-wall grades that carry more weight than others.

While the capability to deliver on applications designed to ship products that weigh more than a tonne is limited by the high cost of investing in appropriate equipment, some re-definition of what falls within the sector’s remit is easing the point of entry for additional suppliers of conventional-strength converted material.

DS Smith and SCA are the only main players in the UK producing high-grade double- and triple-wall board made from heavier papers such as wet-strength kraft. Their hold on the market is unlikely to be challenged, says Phil Rees, DS Smith Tri-Wall speciality packaging manager. “Some of the lighter-weight boxes are trying to break into the heavy-duty market at the lower end, but the investment and expertise required to produce true heavy-duty board – especially triple-wall – creates a real barrier for them,” he says.

Typical dimensions of a three-machine corrugator, including extended drying and heating systems, would be 2.5x8m in terms of the finished blank size. Aside from the significant cost of such a big piece of kit, market share doesn’t warrant the investment with volumes diminishing in line with the overall erosion of UK manufacturing and industrial sectors.

Even so, manufacturers such as Mondi and Smurfit Kappa – both of which offer CA grades – undoubtedly have the necessary market connections and design expertise to produce cost-competitive board-based solutions punching slightly below top-weight requirements.

“The maximum weight that can be carried in a heavy-duty box is difficult to define, as it depends on the type of goods, packing, shipping method and final destination,” says Christina Raimann, marketing manager for Mondi Packaging Corrugated Services. “But as a general rule of thumb, CA or AA board can handle up to 0.5 tonnes and CAA up to one tonne.”

Corrugated for car-makers
The Mondi Bux plant in Diss has invested £3.6m in new case-making kit to produce heavy-duty CA board boxes up to 1.2x1x1m printed in two colours and including either stitched, glued or taped joints. As of January, Mondi will be looking to break into the heavy-duty market – not least within the UK automotive sector, still the second largest in Europe. In addition to the Bux factory, Mondi is now also manufacturing CA flat-board and converted applications out of France, Germany and Poland.

Interest being shown by mid-stream manufacturers in heavy-duty applications has in part been stimulated by the overall sluggishness of the UK corrugated industry.

According to Andrew Barnetson, corrugated sector manager at the Confederation of Paper Industries (CPI), domestic market consumption has remained more or less static over the past three years. “While I’m not aware of anything that’s impacting upon heavy-duty that wouldn’t be applicable to the rest of
the corrugated sector, there is no doubt that a combination of energy price increases and escalating legislative and regulatory burdens placed upon mills have taken their toll on manufacturers. It all leads to a scarcity of raw materials,” he says.

“There was a huge and very sudden hike in energy prices 18 months ago, which hit the paper manufacturers very hard. Although it’s true there has been an impact on all substrates, paper is a particularly significant energy user. Furthermore, very often as legislation comes into the UK, it is gold- plated; when the government does its own interpretation, domestic producers are often disadvantaged in comparison to other European countries. Flat board is coming into the UK from French and German suppliers, who are increasingly finding export to be both economic and competitive.”

With usage across all grades running at 1.33 million tonnes, as of the end of August, Barnetson predicts a year-end total of around 2.1 million tonnes – pretty much on a par with the 2.046 million and 2.047 million reported for 2006 and 2005 respectively.

While no figures specific to heavy-duty corrugated packaging are available, the size of the sector is almost certainly well below 15% of the total. With no one likely to invest in a new triple-wall corrugator line in the UK, given the nature of the industry – and although more of a possibility, upgrading is still bound to incur a significant cost – the only realistic options within the conventional mid-range are to fight it out for retail-ready business on a commodity pricing basis, or else to explore the potential for added-value twin-wall applications.

The main competition to double- and triple-wall corrugated board in the heavy-duty sector comes from wood, steel and rigid plastic constructions – none of which can match corrugated’s sustainability, or performance against cost, in delivering ­customised solutions.

“The product is extremely versatile in that it is more flexible than wood and does not entail the high tooling costs often needed with plastic. It depends on the application,” says Rees.

“Corrugated allows for good printability and because it has an in-built cushioning effect, it’s a far more tolerant substrate for the protection of fragile or sensitive products,” he says.

A three-week timeframe within which to move from design concept to final delivery is not uncommon. Compare this with a similar gestation period for the development of a plastic or steel equivalent, which can run over months.

Additional benefits include assembly from flat board on-site to reduce warehousing. It is lightweight in transit (in addition to the carton itself), a compressed corrugated pallet capable of bearing a two-tonne load weighing only 5kg, much less than a wooden equivalent. It has the flexibility to act as either a single-use or returnable solution as required. Applications of DS Smith’s Unipak RTP solution, incorporating a corrugated sleeve and a plastic cap and tray, have been in use for nearly 15 years.

Bespoke boxes
“A box isn’t just a box when it comes to heavy-duty, because it’s designed to meet a specific performance and handling characteristic. For example, a lot of heavy-duty boxes incorporate special die-cutting for handling, storage or quick erection,’ says Rees. “The interior fittings can be very complicated for, say, a pack to hold and transport automotive components. We produce diverse products, such as boxes with a temperature-resistant film applied to the interior that are used to ship temperature-sensitive products by airfreight.

“FMCG, food and pharmaceuticals customers are all turning to high-performance corrugated, which can add value to their businesses in a number of ways: by reducing cost in the supply chain; by increasing efficiency – by providing higher protection levels for example; and, of course, minimising the environmental impact. This cluster of benefits is attracting new markets to triple wall and we see ourselves moving into these hitherto non-traditional areas for heavy-duty solutions,” says Rees.

Likewise, the incoming competition – and not least in nibbling away at retail-ready applications attracting lighter-weight transit packs. “Heavy-duty box makers are entering more into the retail sector because of the need for larger-size bulk bins to sit at the end of an aisle,” says Mondi’s Raimann.

“Products packed in these large aisle boxes can range from pumpkins for Halloween to DIY items. In using a white kraft paper, printing can be up to two colours for short or medium-length runs; while in large promotions run by the snacks industry, the volumes are sufficient for using full colour. These large bins for seasonal marketing can remain in use for up to four weeks at a time.”


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CASES IN POINT
Effectively doing away with wood as a primary heavy-duty substrate, Tri-Wall’s Notchfold is ideally suited to packaging products of up to 8m in length. Notchfold comes flat-packed; the converter simply cuts to length and applies corrugated end caps to secure the contents.

In-built V-shaped cuts allow the triple-wall board to form precise 90° angles.

Ease of warehousing and assembly and low transit costs are additional gains, says DS Smith
Tri-Wall speciality products manager Phil Rees: “Our job is to make customers’ lives easier and help
them become more efficient. This is a modern packaging concept that ticks all the boxes: lower costs, better protection and better environmental performance.”

Appropriately enough, SCA Industrial Division recently helped to ensure that precision-engineered Spacelab’s life-support equipment arrived at global destinations safely by replacing previously used wooden crates.

Weighing in at 135kg, the heavy-duty custom-designed structure incorporated three corrugated fittings to prevent movement in transit and contact with the outer packaging. A low-profile corrugated pallet was employed to reduce overall pack height, allowing the product to remain upright during air-freight and so prevent any potential damage to sensitive calibrated instruments.

The final customer gain was the elimination of risk of contamination to equipment for use in a medical environment, which needs to be kept clean and free from contamination.

Source: packagingnews

Rank Group gets closure on Alcoa

Alcoa, the global aluminium group, has sold its packaging and consumer businesses to New Zealand’s Rank Group for £1.36bn ($2.7bn) in cash.

The businesses included in the sale are Closure Systems International, which makes plastic and aluminium packaging closures; Alcoa’s consumer products and flexible packaging divisions; and Reynolds Food Packaging, which serves the foodservice, supermarket, food processing and agricultural markets. Together, they generated sales of £1.6bn and after-tax operating profit of £48m in 2006, and employ 10,000 people in 22 countries. Alcoa said in April 2007 that it was exploring strategic alternatives for these businesses.


The transaction is expected to be completed by the end of the first quarter of 2008.

Alcoa will continue to operate its flat-rolled can sheet products serving the packaging market.

Rank Group, owned by New Zealand’s richest man, Graeme Hart, already owns Australasian packaging group Carter Holt Harvey, and earlier in 2007 bought beverage carton manufacturer SIG Holding, as well as International Paper’s drinks business.

Source: packagingnews

Healthy prognosis for healthcare packaging

Pharmaceutical firms seek packaging line improvements to cut costs, biologics present packaging challenges, and medical device growth is driven by aging baby boomers. These treatment advances bode well for the healthcare/life sciences packaging community. Packaging materials need to offer protection from point of manufacture to the “last mile” where healthcare products reach a patient. Packaging materials must provide barriers for moisture, oxygen, light and heat, and they may include overt and/or covert security measures to combat counterfeiting and diversion. Equipment will need to package products more efficiently, be validatable and versatile.

All of this will require people power. “It’s been reported that three of eight jobs in the next 20 years will be in the healthcare field,” says Gerald Finken, president and founder of CSM, a company that provides packaging and labeling services for clinical trials.

Despite this good news, healthcare packagers continue to face daunting challenges, such as satisfying Food and Drug Administration and regulatory demands. Eric Greenberg, attorney-at-law and Packaging World and Healthcare Packaging columnist, provides the following example: “In the FDA Amendments Act of 2007 is a little-noticed section, 913, that adds a new section to the law called ‘pharmaceutical security’ that calls for federal government officials to ‘develop standards and validate effective technologies’ to secure the drug supply chain against ‘counterfeit, diverted, subpotent, substandard, adulterated, misbranded, or expired drugs.’

“A new law that was widely described as strengthening FDA powers over approved drugs contains a spotlight on packaging that, among other things, will soon require unique numbering of individual packages of prescription drug products.” Within the next 21⁄2 years, he says, “the FDA will have to create a system of standardized numerical identifiers for prescription drugs to be applied ‘at the point of manufacturing and repackaging...at the package or pallet level.’ These numbers will allow identification, validation, etc., of the product.”

Beyond legal and regulatory matters, this healthcare packaging forecast also explores a handful of “hot-button” issues and trends. The article will also look at developments and forecasts in pharmaceutical, biologic, and medical device packaging.

Healthcare packaging issues and trends

Sustainability. With so many demands already placed on a pharmaceutical or medical device package, does the package have to be earth-friendly as well? Yes, says Michael Rubenstein, president of Alcan Global Pharmaceutical Packaging. Alcan representatives report that many of their customers are clamoring for more information on this topic.

Innovation and package design. Understandably, manufacturers in the healthcare community allot significant financial resources to product research and development. Sometimes, that means package design innovation is viewed as a luxury. However, developments in drug delivery devices such as inhalers, patches, stick packs, and Target’s prescription drug bottles exemplify innovation. So, too, do package designs for GlaxoSmithKline’s alli starter kits, Barr Pharmaceutical’s oral contraceptive, and VasoActive Pharmaceutical’s over-the-counter topical lotions, as reported by Shelf Impact! editor Jim George.

George says, “The marketing value of packaging is a largely untapped frontier in over-the-counter pharmaceuticals. Packages delivering cognitive value can support a great product—and drive sales.” When justifying financial investments in package design, George asks, “What is the cost if the packaging for your healthcare product remains purely functional and ignores aesthetics? Consider that if you do nothing, your competitors may well be doing something—and gaining an edge in the battle for shelf supremacy.”

RFID gains. Although the use of radio-frequency identification is in its early stages, “RFID holds great potential for the healthcare industry, and the adoption of the technology is expected to increase significantly owing to the benefits it offers.” That’s according to RFID Opportunities in Healthcare in the U.S., a new $3,900 market-research report from Kalorama.

This year, the RFID market in the U.S. healthcare industry is estimated to be about $297 million, says the report. By 2012, the market’s value is forecast to be $3.1 billion. The report’s executive summary says, “Hospitals are expected to be the frontrunners in terms of investment in RFID technology. Moreover, the adoption of RFID by hospitals in the U.S. was estimated to be 10 percent in 2005 and is expected to increase to 80 percent by 2011.”

Robotics. Watch for pharmaceutical firms to increase their use of robotics, from processing through packaging functions (as seen in this article's photo, supplied by ABB Robotics). AstraZeneca, for example, employs robotics on several of its packaging lines at its plant in Södertälje, Sweden. The company’s use of robotics is likely to continue, according to Lars Siggelin, senior project manager of AstraZeneca’s Global Technical Services. “High flexibility and ‘digital’ changeover,” are among the benefits he sees with robotic packaging. “They’re also more ergonomic, requiring no [manual] lifting or handling of boxes.” He says robotic equipment can be economically justified in that robots are the same price as ‘common’ machines, but have better and more flexible functions. “Robots can be used for other purposes, as they are very general equipment,” he adds.

Automation standards. Dr. Ken Ryan, director of the Center for Automation in Motion Control at Alexandria Technical College, and Shane Loughlin, president of SL Controls , were recently in Ireland investigating a healthcare packaging-related application with a biomedical manufacturer that preferred not to be identified. The application leveraged automation standards to integrate “best-of-breed” equipment.

Ryan and Loughlin were involved in the OMAC Users Group , a nonprofit organization dedicated to the development and use of open, interoperable control and automation systems technologies for end users, technology providers, and OEMs.

At press time, a new group of pharmaceutical manufacturers, automation companies, and equipment suppliers was in the process of forming to collaborate in developing automation strategies to improve the effectiveness and value of machinery used in the healthcare/life sciences industry. Further details about this group were not yet available.

Pharmaceutical packaging

For years, pharmaceutical products have typically enjoyed healthier profit margins than those of food and beverages, so maximizing packaging line efficiency wasn’t urgent. But as drug patents expire, and less-expensive generic drugs enter the market, this is driving down prices and margins. So it’s understandable why drug manufacturers want to wring out more efficiencies from their packaging lines by employing processes such as Six Sigma, lean manufacturing, and/or Overall Equipment Effectiveness.

Looking at the global pharmaceutical market, developed countries in Western Europe, the United States, and Japan will account for nearly three-fourths of the demand for worldwide pharmaceutical packaging, according to The Freedonia Group. Freedonia projected this demand to increase 5.9% per year to more than $34 billion in 2011 in its new study, World Pharmaceutical Packaging.

Freedonia forecasted that China will provide the strongest growth opportunities, while India and Brazil “will evolve into fast-growing pharmaceutical packaging markets as drug-producing sectors are upgraded and diversified,” especially generic drugs. Among other findings in the report were the following:

• Easing government-imposed drug price controls and export growth will boost pharmaceutical packaging sales in Japan.

• Prefillable inhalers and prefillable syringes will generate opportunities based on benefits in drug delivery and the introduction of bioengineered medicines. These will help increase global demand for primary pharmaceutical containers 6.5% annually through 2011 to nearly $24 billion.

• The world market for pharmaceutical closures and accessories will grow 4.5% per year to $10.6 billion in 2011, with the largest gains in child-resistant, senior-friendly, and dispensing closures.
The 515-page report is available from The Freedonia Group for $5,800 by e-mailing pr@freedoniagroup.com.

Biologics packaging

Biologics-based products and combination products appeal to some pharmaceutical firms, for their treatment potential, their financial prospects, and their ability to extend patent protection. “There is a lot more patent protection around these [biologics] molecules,” says Robert Smith, a director at Genzyme in the U.K. “Proteins and biologics are larger molecules than typical drugs.

“The packaging of these products relates to the sensitivities of these proteins, which are also less robust than chemical molecules. And these products have to be frozen or lyophylized [freeze-dried] for a shelf life that’s useful in a commercial sense.” Even then, Smith estimates the shelf life of biologics is typically 12 to 18 months, compared to years for pharmaceutical tablets.

Looking into his crystal ball, the Genzyme professional believes packaging material developments may help extend the shelf life of biologics. “Glass vials have been around for a long time, and I think things like polypropylene and other materials could come into play for biologics.” He also envisions advances in blow/fill/seal technology that could be extended into this field.

Smith says biologics are typically manufactured under aseptic conditions. Developing processes to extend shelf life, he believes, will be an important packaging challenge. And then there’s validation. “Process validation of biologics is probably a more stringent process than for drugs or medical devices,” he believes. He refers not only to the packaging process, but also to operator qualification—demonstrating that they can work in an aseptic environment. “There is some qualification of personnel in all sorts of sterile manufacturing, where you actually qualify the individual to make sure that they are not contaminating the product,” says Smith.

The Center for Biologics Evaluation and Research (CBER) is the center within the FDA that regulates biological products. Its Web site says these products include “vaccines, blood and blood components, somatic cells, gene therapy, tissues, and recombinant therapeutic proteins. In contrast to most drugs that are chemically synthesized and have a known structure, most biologics are complex mixtures that are not easily identified or characterized.

“Biological products, including those manufactured by biotechnology, tend to be heat-sensitive and susceptible to microbial contamination,” the Web site continues. “Therefore, it is necessary to use aseptic principles from initial manufacturing steps, which is also in contrast to most conventional drugs.”
The CBER Web site adds, “Biological products often represent the cutting edge of biomedical research and, in time, may offer the most effective means to treat a variety of medical illnesses and conditions that presently have no other treatments available.”

“With the rapid growth in the biopharmaceutical industry over the past two decades, the number of newly approved biological products has dramatically increased,” says the Intl. Society for Pharmaceutical Engineering , a global not-for-profit society of pharmaceutical manufacturing professionals representing some 25,000 members in 90 countries. “In 2005, a record 21 biological products received U.S. Food and Drug Administration approvals, including therapies for the treatment of rheumatoid arthritis, diabetes, cancer, and rare genetic disorders.”

CSM’s Finken offers this input concerning the promise of biologics: “I think it’s about mankind wanting to find the magic bullet.” He adds that one of the challenges in packaging biologics “is that you are dealing with frozen product. If you let it thaw, the potency will drop.” He says biologics are expensive to produce “because the process may involve 30 or 40 steps done in sterile or near-sterile conditions. You can’t heat the product, and many times handling involves keeping the product in liquid nitrogen.”
Medical device packaging

According to Urmila Kishore, “Continuous technological advancements in the medical device market coupled with an aging population provides wide opportunities for growth in the medical device packaging market.” Kishore is the analyst of the study The North American Medical Device Packaging Market from Frost & Sullivan .

The study shows that the market earned revenues of $569 million last year, with that number predicted to rise to $918.8 million by 2013. Among the report’s findings are the following:

• Packaging is an integrated and vital component in the medical device market. The North American medical device packaging market is experiencing steady growth. Despite the growth, this market is also expected to face stiff competition due to the cost-reduction pressure created by device manufacturers.

• The scientific and technological breakthroughs to improve health and lengthen the average life span have accelerated the pace of medical invention, resulting in a plethora of new medical devices with advanced features and superior performance properties. Package manufacturers are encouraged to respond to new product requirements by employing advanced technologies and materials.

• Disposable medical devices, including surgical supplies, are extremely popular. “This market is expected to grow at the rate of 23-percent through 2011, as increases in the number of surgeries have heightened the concern over postoperative infection,” explains Kishore. “The demand for implants is anticipated to encourage the use of rigid packaging materials such as trays, which is likely to boost the revenues of rigid packagers.”

• Medical device packagers face a challenge in coping with emerging trends. Says Kishore, “The introduction of combinational drug delivery devices is posing a major challenge to packagers to come up with new, innovative packaging that suits the products.”
Source: healthcare-packaging

Gangmasters shut down over packaging staff mistreatment

The UK Gangmasters Licensing Authority (GLA) has revoked the licences of three gangmasters who supplied workers to vegetable packer Simms & Woods.

The GLA raided the premises of the onion and leeks supplier in Wyre Piddle, near Evesham, Worcestershire, on 11 December.

It interviewed 19 of the 70 temporary workers on site at the time. They had been supplied through three gangmasters.

It revoked the licence of A to Z Employment Services, based in Sparkhill, Birmingham. The firm must stop trading immediately or face prosecution.

The firm was using an illegal and un-roadworthy minibus to ferry workers from their homes to the warehouse. The agency's boss also instructed a worker to put clingfilm on a serious cut and to continue working on a food production line.

Two other gangmasters have had their licences revoked without immediate effect, which allows them to continue trading until the conclusion of the appeals process.

The investigators also found that documents had been manipulated and accurate records of the number and identity of workers employed at the warehouse were not kept.

The GLA said Simms & Woods was not to blame for the illegal employment practices discovered.

GLA chairman Paul Whitehouse said: "We cannot allow an agency that puts its workers at risk to continue trading. When the boss of the agency tells a worker to put a bit of clingfilm on a serious cut and get back to work processing food, you have to question if they should be allowed to run a business."

The raid on Simms & Woods was part of the GLA's Operation Scorpion, an ongoing series of unannounced visits throughout the UK to ensure that labour providers are operating within the law.

West Mercia Police and the Border and Immigration Agency joined the GLA as part of this operation.

The GLA was set up to protect workers from exploitation in food processing and packing, agriculture, horticulture and shellfish gathering, after the deaths of 23 Chinese cockle pickers in Morecambe Bay in 2005.

Source: packagingnews

Baxters launches new convenient packaging for soup

UK soup company Baxters is set to roll out new microwaveable pots for its soup brands across the country, hoping to ride the trend for snack foods that are both convenient and healthy.

Company spokesperson Kerr Arthur said that the trend for convenience foods shows no signs of slowing, while consumers still want products "which don't compromise on quality and taste."

Baxters seems to be on the right track, as 59 per cent of European and US consumers look for healthy food in convenient packaging when doing the weekly shop, according to market analysts Datamonitor.

The new soup bowls are packaged with a heat-proof sleeve, so the consumers not only save on washing up, they can also pick up the pot straight from the microwave, Arthur said.

What's more, the soups are made with fresh vegetables such as tomatoes, butternut squash, carrots, beans and lentils, and are free from artificial colourings and flavours, he added.

According to Datamonitor, soup sales have grown surely but steadily in the EU in recent years, increasing 41 per cent between 2002 and 2007.

Consumers across the bloc opt for healthier soups, the analysts said, however countries vary in terms of the preferred format - in France and Spain, UHT soup is very popular, while Italians opt for frozen soup.

In the US, on the other hand, soup sales have slowed in the past year.

According to a Mintel report update released in March, sales of soup in the US are estimated to reach around $5bn for 2007, a 25 percent increase in current terms and a nine percent increase in constant terms since 2002.

However, the report identifies that much of this growth was due to a "one-year leap" in 2005, resulting from packaging innovations that started in 2004. Since 2005, sales have grown only slightly in current terms and declined in constant terms, said Mintel.
Source: foodproductdaily

Packaging Innovations Weekly Wrap - Packaging Tax Introduced in Netherlands

A new packaging tax will be implemented in the Netherlands in January next year.

The tax, which is based on the CO2 emitted during the manufacture of packaging, will apply to all goods filled or packed in the country.

The tax is expected to encourage the use of environmentally friendly packaging materials in terms of CO2 emissions.

Tax levels will be based on complex calculations based on the life cycle analysis of each packaging material – glass, paper, aluminium, iron and plastic.

It is expected the increased cost will be passed on to consumers.

CONFECTIONERS ANNOUNCE EGG CUTS

Major confectionary firms are working to cut packaging on medium-sized Easter eggs for 2009.

Mars, Cadbury and Nestlé are working with the Waste and Resources Action Programme (WRAP) to reduce packaging materials across a range of products.

Nestlé has already reduced the size of its small Easter egg cartons by 30 percent and mug eggs by 14 percent.

Cadbury is also working towards using 100 percent recoverable or biodegradable packaging across its products by 2010.

GLOBAL PACKAGING STANDARDS REVISED

The British Retail Consortium has unveiled changes to two packaging standards ahead of their publication in January.

The Global Standard for Food Safety and Packaging and Packaging Materials have been revised to include more guidance for users and certification bodies, enabling more consistent auditing and greater emphasis on companies demonstrating senior management commitment and competence in the application of hazard analysis.

The Global Standard for Packaging and Packaging Materials has also bee upgraded to include packaging for non-food products.

BRC director of Global Standards and Technical services Dr Geoff Spriegel says quality and safety are crucial to a retailer's success, especially when branded goods are manufactured by third parties.

"The BRC's Global Standards provide greater assurance for retailers and open up new markets for suppliers who can promote themselves to retailers looking for independent endorsement of supplier’s operations," he says.

"We will continue to strengthen and update the Standards to keep them ahead of changing technology and customer demands."

Both standards are due to be implemented on 1 July 2008.

Currently 9,000 factories in over 80 countries are audited to the Global Standards.

TETRA OFFERS AN EIFEL

Tetra Pak has announced the launch of a new easy-to-open cap for its Tetra Top package.

The Tetra Top Eifel O38 package offers one-step opening with tamper evidence built into the cap.

The cap has a 38mm opening, keeps its contents safe, is easy to reseal and is ideal for chilled dairy and juice products, Tetra Pak product director Anders Gustafsson says.

"The Tetra Top Eifel O38 package is easy to open, has excellent pouring and drinking qualities and is suitable for on-the-go and home consumption," he says.

Tetra Top packages with the new cap are produced on the TT/3 XH IC dual-line filling machine with an Integrated Capping (IC) unit, which reduces the floor space required by up to 20 percent.

The Tetra Top Eifel O38 package also eliminates the need for a membrane underneath the cap and is mainly made from paperboard – a renewable resource (63 percent paperboard and 36 percent plastics).
Source: packaging-technology

Failed Roto-Quebecor deal may still have legs

The relationship between Roto Smeets and Quebecor World Europe isn't beyond saving, despite Roto Smeets' shareholders having stamped out the acquisition bid at the eleventh hour.

A spokesperson for Roto Smeets told printweek.com that "both parties will have a rest at Christmas and expect to be in contact in January".

"We have to see whether we can come to an arrangement that will get the approval of our shareholders."

The spokesperson maintained that the shareholders were uniformly behind Roto Smeets' strategy of consolidation of the European market and that the barrier was simply down to a disagreement over price.

"Give them some time to rethink this deal and hope that all the effort both parties put in it over the last year will finally bear fruits," she said.

Nicholas Mockett of finance advisory firm Europa Partners said he did not think that Quebecor World Inc would shut the door on a renewed bid, given the weakened position of Quebecor World Europe.

"It's in a pretty vulnerable position," he said. "It would be quite keen to have a dialogue," said Mockett.

However, he said that the potential to resurrect the deal would depend on the proportion of shareholders that vetoed the acquisition.

Roto Smeets said of the 79% of shareholders present, 84% vetoed the deal – just shy of two-thirds of all voting shares.

These included Laxey Partners, Riva Investments and Marsala, which between them hold a 38.1% stake in the company.

Mockett said that if a shareholder that had opposed the deal could be persuaded to sell, there might be an activist fund that could step in and take over those shares in order to move the deal on.

"The biggest obstacle is getting consent from the shareholders of Roto Smeets," he said.
Source: printweek

10 trends in packaging operations for 2008

Aside from the incessant drive to make packaging machinery more productive, the coming year will see the conscious leveraging of automated packaging systems as a strategic business advantage.

According to a new white paper, here are trends to watch for – and hopefully implement in your packaging operations.

Click to receive the original 12-page white paper in pdf format.

1. Progressive companies quit treating packaging lines as overhead

Packaging engineers sometimes lament that they are an afterthought to manufacturing. Manufacturing thinks marketing calls all the shots. Marketing feels it plays second fiddle to finance. Finance jumps when the CEO calls, but Wall Street keeps the CEO up at night. Meanwhile the employees’ 401(k) investments drive the Street in this vicious circle!

In reality, we all go out and buy the products that come in the neat new packages. From putting coffee in filter pods to plastic coffee cans, it’s obvious what innovative packages can do.

Forward thinking companies are now paying closer attention to how their packaging systems can get those neat new packages into the market faster and do it more cost effectively. For example, Miller Brewing, Frito-Lay and P&G Gillette shared their future needs at a recent Packaging Machinery Manufacturers Institute event (http://www.packworld.com/view-22914).

Conclusion: expect to see more attention paid, at higher levels of management, to ways that automated packaging systems can contribute to bottom and top line objectives.

2. CPGs recognize that most SKUs are package changeovers

One reason for this newfound appreciation of packaging is the recognition that a typical consumer packaged goods company has ten package SKUs for every product SKU. That same batch of chocolate can come in many different size bars and multipacks.

And there will be twice as many SKUs if the European Commission goes ahead with its plan to ban supplemental English units of measure on January 1, 2010 and require labeling that is solely metric. Virtually every product made in the U.S. and exported to Europe would need to be run with two different labels. And not all U.S. states permit consumer quantities to be packed with metric-only labeling. So European products would also need a second label for import into the U.S.

The good news is that most pint bottles have already been replaced by half liters. But we have an awful lot of one pound packages that will likely change to 500 gram formats, too.

Conclusions: don’t expect labeling to go all-metric until it becomes obvious that the European regulation is inevitable. Do, however, anticipate that companies seeking easy ways to reduce packaging costs will both weed out nonessential package sizes and go with machinery that’s more adjustable.

For example, stick packs have become immensely popular as part of on-the-go lifestyles. The popular stick pack machine is going to be the one that can change pack size from 4” all the way to 8” in length (or should we say 100mm to 200mm) by fingertip from the operator’s touchscreen and change diameters with simple change parts (http://www.packworld.com/view-23966).

3. Lean packaging operations get the cost out

Expect long-overdue techniques -- such as Overall Equipment Effectiveness to reduce downtime -- to start getting more traction.

Schneider Electric and ELAU, its packaging automation specialist, believe so strongly in the potential of these techniques that they are sponsoring a series of workshops (http://www.packworld.com/view-24256).

The Packaging Line Performance workshops will teach hundreds of packagers how to lean out their packaging operations.

4. Packaging machine OEMs become packaging systems providers

Historically, most packaging machine builders have concentrated on the workings of their machine. Engineers at the packagers’ plant or perhaps a systems integrator worried about how to integrate the lines.

Increasingly, OEMs are being asked to guarantee their equipment’s performance – performance that’s probably being impacted by upstream or downstream machinery.

Packagers have fewer engineering resources to take responsibility for the entire system. Yet, they also need more production data as well as better controllability of packaging lines. And what good is isolated performance data for individual machines?

The need for interaction between packaging machines and even with upstream manufacturing processes is causing two trends. One is the turnkey, single vendor packaging system.

The other is alliances, such as the relatively new Packaging End of Line Solutions (PELS) group of companies, taking responsibility for integration, documentation, training and support of their multi-vendor installation (http://www.packworld.com/view-23832).

Conclusion: either way, expect more machinery suppliers to add value by becoming packaging systems providers.

A perfect example is Nuspark Engineering (http://www.packworld.com/view-23705), a Toronto-based company that has partnered with ELAU for modular automation and Schneider Electric for a global electrical solution.

Nuspark has a delta robot case packing module that can double throughput in the same envelope simply by hanging a second robot arm on the module. They can supply not only all the equipment modules for cartoning through palletizing – they specialize in putting together all the servo conveying and infeed systems to connect the modules in minimal floorspace.

And because they distribute their servo modules (http://www.packworld.com/view-24125) out to the equipment being automated, adding new modules doesn’t require expanding control cabinets. It literally is plug-and-play.

5. Packaging modules replace packaging machines

When machinery builders evolve to systems providers like Nuspark has done, they no longer think their business is about crating and shipping a machine. They start to think in terms of creating standardized modules to configure a customized packing solution.

And packagers can start thinking about rearranging these packaging modules to package different products.

So, expect greatly increased reconfigurability that will reduce risk in capital expenditures and adapt faster to changing consumer requirements.

This sounds good, but to make packaging modules plug-and-play takes modular software, modular control hardware and modular mechanical designs.

Conclusion: to achieve this, encourage greater collaboration between your packaging system designers and their automation providers – a model implemented several years ahead of its time by German packaging systems provider Harro Hoefliger (http://www.packworld.com/view-16244).

6. Machineability: the biggest challenge to sustainable packaging?

As sustainable packaging conferences proliferate (http://www.packworld.com/view-23986), the cart needs to get connected with the horse. That is, a variety of new materials and package designs are destined for the packaging floor. But some of the most promising ideas may perish for lack of machinery capable of running them.

Conclusion: plan to purchase machinery with a new level of flexibility, beyond what you’re anticipating to need to run today’s packages. Think reconfigurability. This fits in well with the modular concept. It also requires automation with a broad range of adjustment. Robots come to mind for their reprogrammability, but feedback is the fundamental enabler.

Everyone knows that packaging machines use lots of servo motors these days. But what makes a servo motor different from a regular one? Feedback. Any engineer worth his or her salt at ELAU, which makes servos exclusively for packaging machinery, can tell you that.

It is the feedback device on the back of that motor that allows the control system to make infinitesimal and continual adjustments. So you can run thinner or thicker gauge materials, or recycled or renewable materials with rougher surfaces.

That same feedback can also help you take the pulse of your packaging operation, yielding production data and maintenance advisories.

7. Do you recall Design for Disassembly?

Although you’re not hearing much about it these days, DfD is still out there, for everything from cars to electronics (http://www.npd-solutions.com/dfe.html). Expect to hear more about Design for Disassembly not only of products, but of packaging.

Ever try to recycle a dental floss container? One well known brand has a plastic spool, plastic housing and a plastic top with a steel cutter. It’s exceptionally disassemblable (that may be a new word) except for that cutter. Redesign it with a sharp, molded-in plastic cutting edge and it’s not only DfD, you’ve eliminated the costs of a part and an assembly step.

Take fresh egg packaging as another example. Instead of the familiar paperboard or foam egg cartons, some of the new cage-free, high-omega, organic brands are coming in clear plastic cartons with colorful printed paper inserts in the lid. This has a premium look, you can see the product through the transparent carton, and it’s really easy to separate the paper from the plastic.

Let’s not pick on paperboard, either – in Europe batteries come in neat all-paperboard hanger packs (http://www.packworld.com/view-19592). So there is no plastic blister to separate from the card upon disposal. And what a great way to stand out from all those other batteries in the display.

Conclusion: consumers will pay money to get these packages, so expect to see more of them.

8. Multinational companies standardize packaging systems worldwide

People are talking and emailing and web searching all over the world. In so doing, they’re learning not to reinvent the wheel.

One example is the Weihenstephan standard (http://www.packworld.com/view-24255), a once-obscure data acquisition model developed by the German beer brewing industry. But a brewer in South Africa found out about it, and that company also became active in a packaging standards group in the U.S., so now American CPGs are looking hard at this standard to standardize data acquisition at their plants worldwide.

What’s the big deal? Such standards allow old, less automated equipment to be moved to markets where labor costs are lower and look familiar to operators and technicians. Likewise, the new equipment will have less of a learning curve because even though it’s much faster, it looks the same to the operator.

And where the good ideas come from, nobody seems to care any more. Whereas there used to be a ‘not invented here’ syndrome that caused needless duplication and even served as trade barriers (like metric-only labeling), today’s global marketplace seeks harmonized standards.

The key to new standards entering the marketplace is to separate as much as possible the underlying technologies that must continue to advance from the parts that need to remain common to all. In other words, standardize the electrical plugs and wall sockets, not the appliances.

Conclusion: if your operations are global, encourage investigation into global suppliers implementing scalable, global standards to support you everywhere you operate.

9. As networks converge, new efficiencies emerge

Hard to believe it’s been ten years since the vision of a single network for machine automation started dawning on visionaries. The contradictory needs of synchronization for motion, low cost for I/O devices and bandwidth for data acquisition had long thwarted this convergence.

But that’s changed with new technologies – not unlike running your cable TV, phone and broadband on one wire.

For example, ELAU has announced it will standardize on SERCOS III, which does put all these tasks together across a fast, broad, economical Ethernet network (www.sercos.com).

Even with today’s SERCOS II technology, the company offers a single cable and snap-fit connector solution to replace four or more (www.elau-insider.com) power, feedback motion and device network cables.

10. No contradiction between convenience and conservation

It’s actually been twenty years since the archeologists of The Garbage Project at the University of Arizona began sifting through the nation’s landfills (http://traumwerk.stanford.edu:3455/Symmetry/174). They discovered that packaging did not constitute as much of the waste stream as most environmental activists assumed.

Rather, construction debris and newspapers were among the top cast-offs (interestingly, a lot of current DfD emphasis is being placed on building construction).

Likewise, societies without packaged food have much higher levels of food waste in their trash heaps. First of all, food processors waste nothing they can find a market for. But if we squeeze oranges at home, we throw away the peels. Processors sell the pulp, peel and seeds for use as ingredients in perfumes, a Brazilian brandy, cat litter, paint, resins, animal feeds, cleansers, emulsifiers, food flavorings and pectin. (http://www.hort.purdue.edu/newcrop/morton/orange.html)
Second, packaged foods don’t spoil so fast, aren’t damaged in transit, and because they are offered in more practical quantities, less is wasted compared to bulk foods. (And please don’t say you’ll freeze the rest, because you know you’re just expending electricity to forestall the inevitable.)

So, the conclusion here is – feel good about pouring that stick pack of drink mix into your half liter water bottle. Don’t feel bad about drinking water from a bottle if you’re substituting that for a soft drink containing high fructose corn syrup. And since you’re getting your industry news electronically, feel good about keeping some of that paper out of the land fill, too. Even if you printed this story out, you’re only putting the articles that interest you on paper!

About ELAU

ELAU is the only company worldwide exclusively focused on the automation of packaging machinery. ELAU’s PacDrive™ automation system offers the only automation platform purpose-built for the packaging industry.

ELAU equips over $1 billion worth of the world’s best machines annually, with over 35,000 PacDrive systems already deployed in packaging machinery worldwide.

The market demands packaging operations that are more flexible and efficient to fulfill marketing, supply chain and global business strategies. ELAU innovations have enabled a revolution in mechanical, software and hardware modularity to deliver these agile packaging systems.

Now ELAU invites the worldwide packaging community to take modularity to the next level with our new PacDrive™ Intelligent Servo Modules.

Far more than just distributing the servo drive out onto the motor, servo modules enable plug-and-play modularity, literally plugging machine modules into or out of the packaging system to change functionalities, formats and capacities.

By vastly streamlining the networks, cabling, interconnects and electrical hardware, Intelligent Servo Modules smaller, simpler, more maintainable and reconfigurable.
Source: packworld

Plantic looks to 'strong' 2008 as it hunts new sectors

Plantic Technologies is confident of a "strong" financial performance in 2008, despite predicting "lower than anticipated" revenues for this year.

The Australia-based manufacturer of plastics from renewable resources is looking to expand the use of its polymer sheet from confectionery and bakery packaging to include display work, such as blister packs, and non-food consumer goods.

It expects to have the material ready for commercial release by April.

Plantic said it had made "impressive progress" over the past year, particularly through working agreements with packaging manufacturers Amcor and Bemis, as well as polymer producer DuPont.

Marks & Spencer has also adopted a biodegradeable tray from Plantic for a range of Swiss chocolates.

Chief executive Grant Dow said the agreements represented "a significant endorsement" of the company's technology and the "increasing relevance" of biopolymers to the consumer.

However, Plantic's share price has fallen steadily from 80p to 65p since the start of October, and dropped by 10% to 58p this morning (21 December) following the trading update.

Source: packagingnews

Taylowe to cut all 80 staff under administration

Ex-Polestar carton division Taylowe (CT Packaging) has gone into administration after it lost a major Colgate contract.

Joint administrator Peter Kubik, from UHY Hacker Young, said Taylowe was placed into administration yesterday (20 December).

Taylowe, which employed 80 staff at its site in Furze Platt, Maidenhead, will run a skeleton workforce of 20 as it winds down operations until the end of the week.

The company's assets, including printing equipment, will be sold while its premises will be handed back to the landlord.

Taylowe sold its Colgate design rights a few months ago, before Colgate moved its packaging manufacture to mainland Europe.

Kubik acknowledged that the timing of the firm's fall into administration was "unfortunate and very sad" for staff.

CT Packaging was formed in December 2005 when Angus Steel and Alan Barnett purchased Taylowe in a management buyout from TP8, a subsidiary of TP3, formerly Thomas Potts Prontaprint.

TP3 acquired Taylowe in September 2005 as part of a £7.5m deal for Boxstar, which comprised the former packaging businesses of printing group Polestar.
Source: printweek

UPM and SCA flag mass paper job cuts

Two of Europe's biggest paper manufacturers have pointed to broad jobs cuts and downgrading capacity as rising raw materials costs play havoc with margins.

Finnish paper and pulp giant UPM-Kymmene has cut 450,000 tonnes of magazine paper capacity at its Miramichi mill in Canada, which had been on temporary shutdown since August, with the site's 580 employees to go.

Magazine papers president Jyrki Ovaska said the firm had looked at ways to make the mill viable throughout the closure, but that "the current business environment leaves us no options".

UPM has also announced a string of temporary closures, including one paper machine at its Kajaani mill in Finland and another at Steyrermühl, Austria with a reduction of 250,000 tonnes of newsprint capacity, as well as machines at two label paper plants in Finland and a coating line in Melbourne, Australia.

A total of 680 UPM employees will to lose their jobs.

Meanwhile, Swedish paper maker SCA has announced it will restructure to cut up to 300,000 tonnes of paper capacity in its European packaging operations as it shifts focus to its tissue offerings.

The move, which will not affect its publications paper division, leaves as many as 1,700 jobs hanging in the balance as it seeks a £106m (SEK1.4bn) profit boost over three years.

SCA has three magazine papers and newsprint mills, including partly owned Aylesford Newsprint in the UK, as well as plants in Ortviken, Sweden and Laakirchen, Austria, which have a total capacity of 1.8m tonnes of publication papers.
Source: printweek

Gangmaster Authority exposes violations in raid on packaging site

The UK Gangmasters Licensing Authority (GLA) has uncovered poor working conditions and inadequate food safety standards at a vegetable packing plant in Worcestershire.

The GLA raided the premises of Simms & Woods, of Wyre Piddle, near Evesham, following a tip-off.

The authority said it was assessing the information gathered before making a decision on the licence status of the three gangmasters involved and the charges to be made.

A Simms & Wood spokesman said the firm had "immediately suspended" one of its labour providers for "health and safety infringements" concerning its minibus.

He added that the GLA had highlighted "certain procedural aspects" that the company could develop to help protect its agency workforce.

The investigators found an untaxed and uninsured minibus being used to ferry 14 workers from their homes to the warehouse; a "serious hygiene issue" involving food destined for major UK supermarkets; employees working 60-70 hours a week with only 39 hours recorded on their payslips; and no accurate record of the number or identity of workers employed at the warehouse.

The raid on Simms & Wood was part of the GLA's Operation Scorpion, an ongoing series of unannounced visits carried out throughout the UK to ensure that labour providers are operating within the law.

Gangmasters must comply with GLA standards to hold a licence. Operating a labour group without one could result in a 10-year prison sentence and unlimited fine.

The GLA was set up to protect workers from exploitation in food processing and packaging, agriculture, horticulture and shellfish gathering after the deaths of 23 Chinese cockle pickers in Morecombe Bay in 2005.

The GLA has issued licences to 1,140 gangmasters.

GLA chairman Paul Whitehouse said: "Those gangmasters who do not follow the rules risk being trapped by one of our operations. We will root out these rogues. There is no excuse for exploiting vulnerable workers and we will take the firmest action possible in all cases."
Source: packagingnews

Heinz uses Sealed Air vertical packaging in Russia

Vertical packaging technology from Sealed Air has helped Heinz's Russian operation meet increasing demand for packaged goods, the firm has said.

Heinz-Petrosoyuz, which runs three production plants across Russia, now uses the vertical pouch packaging technology from Sealed Air's Cryovac brand to pack products for McDonald's in 1kg and 2kg resistant flexible pouches.

The firm now owns two Cryovac machines to support the "growing demand" for this type of pack format.

According to the company, the Cryovac packaging process also helps prolong shelf life.

Cryovac pouches are made of fully co-extruded, multilayer, high barrier film. The company said: "This technology provides a pack with no headspace, which is formed, vertically filled, heat sealed and separated into a finished, hermetic, puncture resistant pillow pouch offering high pack integrity."

The machinery has helped Heinz-Petrosoyuz to efficiently respond to growing volumes and expanding demand, as well as geographical expansion projects, Sealed Air added.

Maxim Kiselnikov, head of foodservice for Heinz-Petrosoyuz said: "Developing a close partnership with Sealed Air has become a great business advantage. We appreciate the very efficient support they provided when we urgently needed a second VPP machine to satisfy our increasing customer demand, which was quite an achievement."

Heinz is planning to expand its product range by introducing new products aimed at different market segments, for example bigger packs for mayonnaise, and the hotel and leisure market.

This summer Sealed Air Cryovac launched a new pack, which it claimed allows processors to use both vacuum and modified atmosphere techniques for extending the shelf life of their products.

Cryovac said it has redesigned its Darfresh brand specifically for red meat products.
Source: foodproductiondaily

BPI prepares for profits slide as demand falters

British Polythene Industries (BPI) has forecast a drop in profits for 2007 due to "patchy demand" and high raw material costs.

The company said that sales of silage stretchwrap had increased, but demand for other products was likely to be lower than in 2006. Consequently, the firm predicted around a 15% fall in pre-tax profit for the year to 31 December.

BPI made a similar announcement about the impact of raw material prices on profits 12 months ago, and last May predicted that high costs would continue "for some time".

In August, BPI purchased the AT Films business of Canadian firm AT Plastics in order to take advantage of increasing global demand for biofuels, and introduced the silage storage bags to the companies' range of products.

BPI, which is the largest manufacturer of polythene film, bags and sacks in Europe, will announce preliminary results for 2007 on 3 March 2008.

Source: packagingnews

Greetings card firm Moonpig speeds up finishing with Duplo cutter

Moonpig has invested in a Duplo Docucutter with scoring module to cater for a growing demand for its newly launched range of card sizes.

The internet-based greetings card company, which offers a personalised service and same-day dispatch, installed the DC-645 with Rotary Score Module to alleviate a finishing "bottleneck".

The Guernsey-based print site, which caters for a customer base of more than 250,000, prints onto SRA3 card using its HP Indigo 3050 press.

Production manager Peter Duquemin said the Duplo kit "solved all our problems"

The Docucutter allows the printer to process a typical sheet with cutting on four sides at a rate of 1,560sph.

He said the machine "was key to unlocking the opportunity for greater flexibility and speed to handle the different card formats".

The Rotary Score Module is designed to overcome the loss of quality that occurs when sheets printed with a toner-based digital print engine are creased with a metal wheel.

The substrate passes through a combination of plastic and metal forming wheels, which is claimed to achieve a high-quality result in one pass.

Source: printweek

Rockingham Box to close with the loss of 80 jobs

Rockingham Box, the rigid and folded carton manufacturer that went into administration in August, is to close its doors for good on Friday (21 December), with the loss of almost 80 jobs.

An employee at the Kettering firm told Packaging News that since going into administration, there had been concerns for the employees' future, but that administrators had previously said that wages and Christmas holidays would be paid.

"There's a lot of understandably angry people who've been told about this late in the day," he said.

He added that there were concerns among staff that overtime would not be paid.

However, Nicholas O'Reilly of financial services group Vantis said that the administrators were "committed" to paying for all work undertaken during the administration period.

"We didn't feel it was fair to keep staff hanging on [about the future of the business] over the Christmas period," he said.

He added that it had not been possible to find a buyer for the business as a going concern and the next step would be to try and sell off the plants.

Rockingham Box was the subject of a management buyout by managing director Geoff Grant and colleague Keith Robinson in March 2007, after which the name was changed from Seddon Packaging and Print.

The company reported a turnover of £4m in 2005, the last period for which information is available, down 22% on the previous year. It also recorded a pre-tax loss of £240,000, compared with £491,000 in 2004.

Rockingham Box produces a range of rigid and folding carton boxes, jigsaws and also offers printing and contract packing services.
Source: packagingnews

Crucial Colour buys in Speedmaster to open new markets

Crucial Colour is aiming to broaden its remit and enter new markets after investing in a six-colour Heidelberg Speedmaster.

The Tunbridge Wells-based printer started printing on the press, its second Speedmaster CD 74-6 , on 17 December.

Crucial Colour currently produces corporate brochures, leaflets and business cards, but hopes the new press will open up new markets, including packaging work for design agencies.

Sales director David Cole told printweek.com: "The Speedmaster will allow us to provide a wider range of services by printing on more varied substrates, while also printing to a consistent high quality."

The Speedmaster can print at thicknesses from 0.03-0.8mm and to a maximum sheet size of 605x740mm.

Crucial Colour was established in 1989 and has a turnover in excess of £2m.
Source: printweek

MEMS Goes Mainstream

HP has it; so do Kodak, Fujifilm Dimatix (formerly Spectra), Silverbrook and others. I'm referring to the next disruptive technology hitting inkjet head technology, the Holy Grail for manufacturers: single-pass inkjet for the masses.

While the concept and execution of single-pass inkjet printing is not new, the increasing advances in head design certainly are. There are many printers on the market that have multiple heads aligned in an array to cover the substrate width. This single-pass model uses full-size piezo heads, and has inherent issues of alignment and interlacing artifacts, not to mention the sheer number and cost of multiple heads aligned in a fixture plate.

Some years ago, many companies started to research ways of manufacturing inkjet heads using the same processes that currently are used for integrated-circuit production. This process is known as MEMS Fabrication Techniques. (See Figure 1.)

Micro-Electro Mechanical Systems (MEMS) is the technology of the very small, and merges at the nanoscale into “Nano-Electro Mechanical Systems” (NEMS) and nanotechnology. MEMS generally range in size from a micrometer (a millionth of a meter) to a millimeter (thousandth of a meter). The scale of MEMS is such that it permits larger and denser arrays of smaller ink orifices, increasing resolution and printing speed.

At these size scales, the standard constructs of classical physics do not always hold true. Some of the other benefits of silicon MEMS fabrication techniques feature sub-micron accuracy, robust material set and the ability for high-volume manufacturing. MEMS really shine in creating nozzles, holes, manifolds and channel structures in the inkjet head design.

MEMS inkjet heads can be fabricated using modified semiconductor fabrication technology, laser ablation, photolithography, molding and plating, wet etching and dry etching, electro-discharge machining (EDM) and other technologies capable of manufacturing very small devices.

A 10.79 cm (4.25 in.) HP Edgeline Technology print head is shown in Figure 2. It uses five silicon print head chips (called die), each with 2,112 nozzles placed in a staggered configuration. This arrangement is called a multi-die module. Each print head prints two colors of ink and has 10,560 nozzles — 5,280 per color.

FujiFilm Dimatix has been busy, as well. They have a different take on head construction. Look at the size difference for an equivalent nozzle configuration (Figure 3).

The definition in the internal structures is amazing. Fifty nanometers is about two millionths of an inch, and the columns are half that width (Figure 4).

The Kodak MEMS print head uses heat to control the formation and delivery of the ink droplet (Figure 5).

When the heater is pulsed on, it heats the ink and causes a vapor bubble to expand. This pushes ink out of the nozzle, where surface tension pulls it into a droplet. After the heater is pulsed off, the bubble is vented to the atmosphere and the chamber refills with ink. The chamber is now ready to be fired again.

Silverbrook, an R&D facility from Australia, has an incredibly dense array of MEMS produced heads (Figure 6). These heads are for water-based ink, and called “Suspended-heater thermal bubble” nozzle. Other head types for solvent and UV-curable are under development.

Print heads have five pairs of rows and are 20 mm in length. 20 mm sections are joined by the insertion of a specially designed, wedge-shaped piece. A 20.3 cm (8 in.) wide print head has 70,400 nozzles. Yikes!

Silverbrook has demonstrated working, single-pass, A4 (60 ppm) and photo (4 × 6) printers operating at one print every two seconds.
Source: americanprinter

Youngs focuses on carbon footprint reduction

UK seafood producer Young's has begun a programme of initiatives to reduce the carbon footprint of its business, and is emphasising that it is acutely aware of environmental concerns besides sustainable sourcing of fish.

As a seafood company, Young's says its key environmental priority is for marine resources and responsible fisheries. It works with the Marine Stewardship Council, and recently published its Ten Principles for Responsible Fish Procurement.

But global warming, to which greenhouse gas emissions contribute, is also a cause for concern, not least because global warming impacts on oceans and movement of fish populations.

The company has now declared the implementation of a "programme of initiatives" to decrease its carbon footprint - directly, with its business partners, and throughout its supply chain.

A spokesperson for the company told FoodProductionDaily.com that the company is not yet disclosing details of the programme, but that its targets are likely to be made public early next year.

She said that today's announcement was made in the light of an article by the BBC today about the company's change in its system for processing Scottish langoustine.

Last year it switching from machine-peeling in the country of origin to hand-peeling in Thailand. This necessitates a round-trip for the produce of more than 27,300 km by sea. The peeled langoustine are then breaded in the UK, and distributed to supermarkets where they are sold as scampi.

This has attracted criticism from environmental groups. But making the change, in March the company agreed to work with The Carbon Trust to review certain aspects of its global operations, and a review of the impact of langoustine-peeling in Thailand was the first on the table.

The review was conducted by Enviros Consulting. The consultancy evaluated the change in carbon dioxide emissions (CO2e) brought about by the new practice. It took into account all CO2 sources: energy use, transportation, waste and refrigeration leakage.

The company has published just the executive summary of the report on its website, in which it says the evaluation showed no net increases in CO2e had occurred.

However, it says that when the accuracy of the information used for the calculations is taken into account, under extreme circumstances the CO2e effect could swing either way.

There could be a net reduction in annual CO2e emissions of up to 292 tonnes, or an increase of up to 229 tonnes.

Young's provided data, together with CO2e conversion factors researched by Enviros, to The Carbon Trust.

The body agreed that the methodology used by Enviros and the results produced were technically sound.

Greenpeace is unconvinced by the report, however.

The environmental group's Willie McKenzie is quoted by the BBC as saying: "They cover this up and distract it by saying it's carbon neutral, but in truth this is about minimising costs and maximising profits."

No information about the relative costs of peeling langoustine in Thailand, as opposed to Scotland, has been released.

At the time the decision to change peeling-location and revert to hand-peeling was announced, Young's said that it was to boost product quality.

It said that hand-peeling cannot be economically carried out in the UK.

The decision resulted in the loss of around 120 jobs.
Source: foodproductiondaily

Packaging automation system

This latest SERCOS technology offers a one-network choice for synchronized motion, safety, I/O and information over Ethernet. Elau will continue to support an open system architecture by implementing all field and device bus solutions that have earned acceptance in the packaging industry for users preferring to continue to segregate their networks according to functional requirements. SERCOS III combines real-time performance and supports safety applications up to SIL 3 (Safety Integrity Level) according to IEC 61508.
Source: packworld

News brief: Packaging acquisitions and developments

The European packaging industry has seen a string of acquisitions, sales and developments of late - the latest coming from Suez, M-real, and the United Company Rusal.

Suez Environnement to buy BellandVision

France's Suez Environnement yesterday announced it is buying out the German packaging recycling firm BellandVision Gmbh in a bid to position itself in the country's large waste market.

Signed on December 5th, the agreement means Suez now holds 68.4 percent of BellandandVision, which recycles the packaging from manufacturers and large-scale retail operations.

Suez says it is looking to enter a new market segment and thereby become a leading player in the recycling and reuse of packaging in Germany.

"The German waste market is a competitive sector but first and foremost a true laboratory of ideas and new technologies from which other European countries could draw inspiration in the coming years," said Jean-Louis Chaussade, CEO of Suez Environnement.

The company said the recycling market for packaging in Germany is worth €1.5bn.

M-real sells packaging plant to Autajon

The M-Real Corporation has sold its Belgian operation to the French Autajon Group under a sales share agreement.

The Finnish company's subsidiary in Belgium, Meulemans SA, employs approximately 240 employees, with sales of €30mn. However, M-real says the transaction will have little effect on its operating profit and is part of an internal stream-lining designed to address cost inflation from 2007.

"The sale of Meulemans wraps up the restructuring programme which we announced in October 2006," said Mikko Helander, CEO of M-real. "The asset divestment target set for the programme was €500mn and it is now clearly exceeded being approximately €700mn."

UC Rusal to build packaging foil plant near Moscow

UC Rusal is investing US$20mn to construct a packaging foil manufacturing facility in the Moscow region so as to meet domestic demand for its product.

The company is the world's largest aluminium producer and says this move will increase its share of the Russian foil and foil-based packaging market by up to 66 percent.

The products made at this plant will then be shipped to the Russian market, where demand has grown by an average 5.8 percent annually, according to UC Rusal.

"The fast growing market is forcing manufacturers to expand and renew their range of products," said Alexander Burdin, UC Rusal packaging division director.

Set to yield an estimated capacity of 20,000 tonnes of packaging foil per year, construction of US Rusal's new plant is set for to begin in 2008 with first production scheduled for the end of 2009.

"Thanks to the unique properties of foil, aluminium lies at the heart of the packaging industry," said Burdin. "For this reason UC Rusal is investing in new capacities and modernisation of existing plants."
Source: packwire

BRC unveils new edition of global packaging standard

The British Retail Consortium (BRC) has today (17 December) launched the latest edition of its global standard for packaging and packaging materials.

The third edition, due to be published on 2 January and take effect from 1 July 2008, has been expanded to include packaging for non-food, as well as food, products.

It includes more focus on the analysis of potential hazards and a commitment to quality management systems.

There is also a greater emphasis on design and development, customer review and site security.

BRC director of global standards Geoff Spriegel said the quality and safety of the products sold in store were "crucial" to a retailer's success.

"The global standards provide greater assurance for retailers and open up new markets for suppliers that can promote themselves to retailers looking for independent endorsement of suppliers' operations," he said.

The BRC has also revised the global standard for food safety.

Source: packagingnews

Architect buys in Océ TCS500 for historic castle site

A chartered architecture firm has grown its digital colour capacity by investing in an Océ TCS500 for its site in a 14th-century Scottish castle.

Hurd Rolland plans to "meet the ever-changing requirements of our clients" with the wide-format digital printing system, which Océ claimed was "the most productive and reliable in the marketplace".

The investment marks a 30-year relationship with Océ, which started with a dyeline copying system in 1977, two years after Hurd began restoration work on historic Rossend Castle in Burntisland, Fife.

Hurd Rolland associate Jim Wilde said: "Our partnership with Océ has been extremely healthy over the years and is based on a number of factors, not least because the printing systems are extremely reliable and efficient."

The TCS500 prints, copies and scans monochrome and colour documents up to A0-format, which can be printed in 40 seconds or a minute, respectively.

Océ key account manager Steve Anderson, who has worked with Hurd Rolland since the first deal, said: "We're extremely proud of the fact that it's been a partnership based on trust and understanding. Hurd Rolland is a leader in its field and quite rightly expects a highly efficient digital printing system."

The kit is fully networked across the 60-staff architect's four sites, including Edinburgh, Manchester and London, from which it produces work for the likes of the National Portrait Gallery and the Foreign & Commonwealth Office.

Source: printweek

API to raise £8m through share offer

API Group's share price fell 0.75p today (17 December) to 24.25p after the packaging foil and laminates producer reported higher losses and said it planned to raise £8m, before expenses, through an open offer of new shares.

The group announced sales of £47.2m for the six months to 30 September, down 7.3% on last year. Meanwhile, operating loss decreased to £200,000 from £1m year-on-year.

API reported a pre-tax loss on continuing activities of £1.36m for the six months to 30 September, compared with £618,000 the previous year.

The firm plans to use the proceeds from the share issue of around £7.2m to repay £2.5m of loan facilities agreed with Steel and Wynnefield, and to reduce UK debt with an immediate repayment of £2m.

Non-executive chairman Richard Wright said the group was confident the financing arrangements would provide "sufficient working capital for the group's foreseeable requirements".

Following the recent restructuring of its laminate business, the directors said they were now concentrating on the supply chain for major luxury packaging companies in the alcoholic drinks, beauty, healthcare and tobacco sectors.

Growing European foil sales have been adversely affected by the shortage of standard foil grades from China. However, around 50% of machinery has now been relocated to a new Shanghai facility and production for export has started on the site.

API has reached a settlement with the purchaser of its Converted Product Division, which it sold in January 2005. This included the company's claim against the purchaser for deferred consideration of £750,000.

A settlement was reached after the purchaser made new claims over the closing valuation of the division's net assets.

Source: packagingnews

Packaging Market Weekly Wrap -WRAP Budget Slashed by 25 Percent

UK environmental watchdog the Waste and Resources Action Programme (WRAP) is to refocus its priorities as it faces a 25 percent budget cut next year.

The cut is likely to lead to a "net reduction" in jobs, WRAP says.

Packaging Federation chief executive Dick Searle says WRAP should concentrate on "scientifically proven major issues".

"With a trimmed budget, its even more important to focus on reducing food waste and work with local authorities to improve recycling," he says.

SONOCO TO INCREASE SALES BY 50 PERCENT

Global paper and plastic packaging manufacturer Sonoco has outlined plans to increase sales by 50 percent by 2012 with a stronger emphasis on its commercial packaging business.

Sonoco's sales are currently split 50-50 between commercial and industrial packaging, but it wants to shift the balance to 60-40.

The company plans to increase sales through a combination of new product development, improved sustainability, crossselling products across the business and strategic acquisitions.

Sonoco also hopes to increase annual sales from new products from £65m to £75m.

Base earnings per diluted share for the fourth quarter are expected to reach US$0.52 to US$0.55, the company says, while full year earnings should reach US$2.28 to US$2.31.

Base earnings in 2006 were US$2.13 per diluted share.

STORA TO DELIST

Paper, packaging and forest products company Stora Enso has announced plans to delist its American Depository Receipts, each representing one Stora Enso Series R ordinary share from the New York Stock Exchange.

The delisting is expected to happen by the end of 2007.

Stora Enso's ordinary shares will continue to trade on the OMX Nordic Exchanges in Helinski and Stockholm, the company says.

PREGIS ACQUIRES BESIN

Packaging firm Pregis has acquired all outstanding shares of European producer and distributer of paper honeycomb protective packaging products Besin International, for approximately US$18m.

Besin will operate with Pregis' Hexacomb division, a component of Pregis' protective packaging reporting segment.
Source: packaging-technology