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PACKAGING THAT POPS Flexible substrates and stunning quality wins new business
In today’s competitive market, great presentation builds great brands. And the first tangible asset any brand has is packaging. As once-unique features become commonplace, the need for short-run flexible packaging is on the rise. Produced by digital packaging converters, flexible packaging is easier to ship and distribute, and it can protect and extend product shelf life.
Digital opens doors The digital label and packaging market is expected to grow from $1.95 billion in 2009 to $4.05 billion in 2014, according to InfoTrends’ March 2010 report, “Digital Color Printing in Packaging: The Ecosystem.” And flexible packaging can position digital converters to stake their claim. “We see the ability to offer high-quality flexible packaging as a major advancement for the CPC market,” says Kathy Popovich, director of marketing for Innovative Labeling Solutions (ILS). ILS uses an HP Indigo digital press in combination with the AB Graphic Digilam to provide turnkey flexible packaging solutions for virtually every segment. Brand owners rely heavily on consumer trial to build awareness around new formulations and SKUs, so being able to deploy a robust program is a must. With HP Indigo digital technology, digital converters can deliver high-quality packaging that can meet these needs better than conventional printing methods.
Investing in HP Indigo Packaging converters can add flexible packaging to their offerings, and win new business, using one of HP’s end-to-end digital printing solutions, including the HP Indigo WS6000 Digital Press. Already in use at facilities around the world, HP Indigo digital presses can print on a wide variety of flexible packaging films and other substrates.
Delivering packaging that pops on store shelves, HP Indigo digital presses replicate PANTONE® Colors and special brandspecific hues. Eric Knop, director of business development for ILS, explains, “HP Indigo technology provides us with the print quality of gravure, without the minimum order quantities, lead time or setup waste and costs.” And the HP Indigo WS6000 prints at speeds up to 98 feet per minute in 4-color mode, getting packaged products to market faster than traditional processes. HP SmartStream workflow solutions offer a special Labels and Packaging module for increased productivity from start to finish.
Winning business By offering more—stand-up pouches, three-side seal bags and mock-ups—packaging converters can really grow business. Knop says that so far, ILS’ new flexible packaging services have been incredibly well-received, both by current and potential customers. “Impact at shelf is paramount for today’s brands, whether they are private label or a worldwide brand,” adds Popovich. “The versatility that HP Indigo digital presses offer in terms of graphic flexibility, print quality and speed-to-market is critical to success in this new consumer landscape. We’re excited to be one of the first to deliver it.”
Learn more at www.hp.com/go/packaging
© Copyright 2011 Hewlett·Packard Development Company, LP. The information contained herein is subject to change without notice.
T H E I N D I S P E N S A B L E T O O L F O R C O N V E R T E R S & P R I N T E R S O F FLE X I B LE PA C K A GI N G
Table of Contents ®
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20 COVER FEATURE CONVERTER PROFILE: St. Johns Packaging Charts a Global Course Recent expansion into key countries repositions this growing vertically integrated flexible packaging manufacturer.
26 FEATURES 12 FPA UPDATE Association Activities Update FPA Annual Meeting Highlights… FPA Environmental Health and Safety Summit Wrap-up…New Membership Announcements.
60 Q&A: ICE USA TRADE SHOW Inaugural Show Held in Orlando Interviewed by Flexible Packaging, Michael Boyle, ICE USA show director, explains how he is the man behind the ICE success story.
26 PRINTING: DRYING
DEPARTMENTS
Successful Ink Drying in Flexo: A Finely Tuned Process Ink drying is an extremely important element that affects a myriad of points in packaging.
28 TECHNOLOGY: FILMS & SUBSTRATES Altogether Better: Flexible Laminations in Food Packaging Processing efficiencies, sustainability and solventless adhesives are top-of-mind for experts in adhesive-laminated flexible packaging.
10 EDITOR’S FORUM 16 CONVERTER NEWS TLMI Environmental Certification…New Printing Press Purchased…International Expansion…and more. 38 INDUSTRY INSIGHT 40 SUPPLIER NEWS Flexographic Press Purchased…Open House Held for Converters, Vendors…State-of-the-Art Clean Compounding Plant Now Open…and News Briefs.
32 Q&A: WEB GUIDING
28
The Integral Points of Web Guiding Factors to consider, potential problems to overcome, and improvements that can be made for optimal web guiding.
43 HOT PRODUCTS 47 WEB SNAPSHOTS 54 CLASSIFIEDS
36 Q&A ON WORKFLOW & ENTERPRISE MANAGEMENT (SPECIAL ADVERTISING SECTION)
59 CALENDAR OF EVENTS & AD INDEX
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MARCH 2011
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WWW.FLEXPACKMAG.COM FAST ACCESS TO WEB-ONLY FEATURES SUCH AS:
JOB SEARCH epackagingjobs.com, the premier online job search site for packaging professionals. “Unwrap your potential!”
TIMELINE OF INNOVATIONS in Flexible Packaging from the past 10 years.
NEW! FLEXPACKREPORT NEWSLETTER delivers the latest research and business data needed by flexible packaging converters. Includes links to sources of current resin prices. Sign up for your FREE subscription today.
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MARCH 2011
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Editor’s Forum
THE INDISPENSABL E TOOL F OR CONVERTERS & PRINTERS OF F LEXIBLE PACKAGING
®
MAKING THE RIGHT MOVES hat constitutes making the right moves? Is it the thoughtful consideration when tackling a game changer, the weighing of all conceivable options or the possibility of an outcome due to your decisions? Now consider what making the right moves is in the current economy. Do your thoughts change? In business, the right moves could be investing in a well-researched innovation, like a new technologically-advanced machine or new material to run. A great move might mean bolstering personnel with professional education and training, or simply offering employees a refresher course in best practices. It could also mean physically expanding the business to other hot areas, filling a geographical void with your company’s products and services. Flexible Packaging’s cover story, penned by Executive Editor Rick Lingle, highlights the expansion of one Canadian company into both the United States and China. St Johns Packaging is a vertically integrated converter that found both opportunity and need in these two packaging hotspots. As Lingle writes, “[St Johns Packaging’s] moves represent a cohesive, proactive response to an evolving market.” Be sure to read about this company’s journey, both figurative and literal, on page 20.
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Extending the business means more hard work and dedication; I have noticed that both of those qualities run a-plenty in this industry. Our issue is chock full of information on making the right moves in business. We’ve published an informative technical piece on Drying for printers of flexible packaging materials on page 26. Ensuring proper web guiding and what to look for is highlighted on page 32. Even our Special Advertisers Section includes information on MIS/ERP software. To find out what that is and how it can create a better production flow, turn to page 36. And of course, our Converter News and Supplier News sections will get you up-to-date on industry movers, shakers and money makers (pages 16 and 40, respectively). Be sure to read this month’s issue to bolster your own decision-making process. Taking your company to new heights can allow for more opportunities. And it also means more hard work and dedication; I have noticed that both of those qualities run a-plenty in this industry. Perhaps it’s time for introspection if you feel your company is not making the right moves. FP
Sincerely, ERIN J. WOLFORD (847) 405-4042
[email protected]
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Publisher Mike Barr,
[email protected] Associate Publisher Randy Green,
[email protected] Senior Marketing Manager Steve Liput,
[email protected] Inside Sales Kristina Lorio,
[email protected] EDITORIAL Editor-In-Chief Erin J. Wolford,
[email protected] Executive Editor Rick Lingle,
[email protected] Art Director Frank J. Mayeran Advertising/Production Manager Courtney Warnimont EDITORIAL BOARD George Thibeault, Constantia Hueck Foils LLC Michael Impastato, Flint Ink. Fredy Steng, Berry Plastics Marla Donahue, Flexible Packaging Association FPA OFFICERS Chairman John Baumann, Ampac Packaging LLC Immediate Past Chairperson James E. Love, III, Printpack Inc. Executive Vice-Chairman (chairman-elect) William Burke, Nordenia USA Treasurer Michael Impastato, Flint Group President (non-voting member) Marla Donahue, Flexible Packaging Association Executive Committee Members At Large Hans Deamer, Windmoeller & Hoelscher Corp.; Jim Mize, Sealed Air Corp.; Ken Swanson, Berry Plastics Corp.; Rob Tiede, Sonoco Flexible Packaging AUDIENCE DEVELOPMENT Corporate Audience Development Director Rita M. Foumia Audience Development Manager Kourtney Bell Multimedia Specialist Katie Jabour Audience Audit Coordinator Carolyn M. Alexander For subscription information or service, please contact Customer Service at: Tel. (847) 763-9534 or Fax (847) 763-9538 or e-mail
[email protected] List Rental Postal contact: Rob Liska at 800-223-2194 x.726
[email protected] Email contact: Shawn Kingston at 800-409-4443 x.828
[email protected] BNP MEDIA CORPORATE OFFICERS Publishing: Timothy A. Fausch Publishing: John R. Schrei Corporate Strategy: Rita M. Foumia Marketing: Ariane Claire Production: Vincent M. Miconi Finance: Lisa L. Paulus Creative: Michael T. Powell Directories: Nikki Smith Human Resources: Marlene J. Witthoft Conferences & Events: Emily Patten Clear Seas Research: Beth A. Surowiec FOR VOLUME REPRINTS: Reprints Sales Representative Jill DeVries Phone: (248) 244-1726 • Fax: (248) 244-3934 E-mail:
[email protected] CONTACT FLEXIBLE PACKAGING Phone: (847) 405-4000 • Fax: (847) 405-4100 Mail: 155 Pfingsten Road, Suite 205, Deerfield, IL 60015 Internet: www.flexpackmag.com Circulation: (248) 244-6421
BNP MEDIA HELPS PEOPLE SUCCEED IN BUSINESS WITH SUPERIOR INFORMATION. VOLUME 13, NUMBER 2
MARCH 2011
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FPA Update | F LE X I B LE PACK AG I N G AS S O CIATION
ASSOCIATION ACTIVITIES UPDATE The Flexible Packaging Association provides informational updates on the activities and accomplishments of the Association. Following are updates on new FPA members, and the recently held 2011 FPA Annual Meeting and the 2011 EHS Summit.
2011 FPA ANNUAL MEETING: STEVE FORBES DELIVERS KEYNOTE ADDRESS
Steve Forbes
Jeff Ma
he Flexible Packaging Association’s 61st Annual Meeting was recently held at The Ritz Carlton Golf Resort in Naples, Florida. Steve Forbes, chairman and CEO of Forbes Inc. and editor-in-chief of Forbes magazine delivered the keynote address during the Annual Meeting Luncheon and shared his insight on "Navigating the Current Economy for Business Growth and Success." The Meeting also featured Jeffery Ma, former member of the MIT Blackjack Team and subject of the hit movie 21. Ma discussed "The $100,000 Lesson: Business Lessons from the World of Blackjack." The 2011 FPA Annual Meeting focused on key industry topics including open innovation, private equity, M&A activity, and flexible packaging material availability. Meeting presenters and panel discussion included: • William Burke, president and COO of Nordenia USA and Flexible Packaging Association chairman, who provided the 2011 Annual Meeting opening remarks and preview of the 2011 State of the Flexible Packaging Industry Report.
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• Gregory Myers, managing director for Mason Wells, who discussed the "Impact and Role of Private Equity on the Flexible Packaging Industry." • Jon Ewing, managing director for Bank of America Merrill Lynch, who examined "Merger and Acquisition Activity in the Flexible Packaging Industry." • Jan Homan, CEO of Constantia Flexibles and Flexible Packaging Europe chairman, who provided an update on the European Flexible Packaging Market. • Nick Vafiadis, polyolefins business director for CMAI, who reviewed current "Trends and Opportunities in the Flexible Packaging Materials Market." • Consumer Packaged Goods Manufacturers panel discussion on Open Innovation, which included panelists Michael Okoroafor, Vice President, Packaging R&D/Innovation, Heinz; Asad Hamid, Vice President, Global Packaging, Campbell Soup Company; and Denise Lefebvre, Director, Packaging Innovation, PepsiCo. The panel discussion was moderated by Brian Wagner, PTIS co-founder of Packaging and Technology Integrated Solutions, LLC. The 2011 FPA Annual Meeting also provide attendees with great opportunities to interact with industry leaders and peers during several networking events including the 2011 Welcome & Flexible Packaging Achievement Awards Dinner, and the Annual Meeting Networking Luncheon with keynote speaker Steve Forbes. Special thanks are given to FPA members including Berry Plastics Corporation, Bobst Group North America, Exopack, LLC, Flint Group, Hosokawa Alpine American, NEX Performance Films, Nordmecannica, NA, NOVA Chemicals, Incorporated, P&O Packaging, LLC, and Siegwerk for their generous support of the 2011 FPA Annual Meeting Networking Events. For more information, visit FPA at www.flexpack.org. FP
MARCH 2011
2011 FPA ENVIRONMENTAL HEALTH AND SAFETY SUMMIT ocusing on environmental and safety issues specific to flexible packaging converters and suppliers, the 2011 EHS Summit was recently held at the TradeWinds Island Grand Resort in St. Petersburg Beach, FL. Presented by the Flexible Packaging Association, the three-day EHS Summit provided regulatory updates, guidance on complying with industry-specific environmental and safety regulations, and presentations from industry experts and government officials. The EHS Summit opened with the Safety Session, which included a review of OSHA’s 2011 priorities and enforcement focus, and Voluntary Protection Program and certification process. The Safety Session also included presentations on Investigating and Managing a Fatality Incidence; Combustible Dust: Fire and Mitigation Strategy; Workplace Safety & Financial Rewards; Flexo Press
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Safety: Features and Considerations; and Developing & Implementing a Medical Surveillance Program. The EHS Summit continued with the Environmental Sessions, which examined the Economic Impact of EPA Regulatory and Enforcement Priorities; Web Based Training; Chemical Classification and Labeling; Energy Management and Recovery Options; TSCA Modernization; and, the DOW Jones Sustainability Index. The Environmental Sessions also included an update on FTC “Green Guides” Revisions and Industry Impact; DOT Security Plans and Training Requirements; R22 Refrigerant Phase-Out, Replacement Options & Compliance; and a panel discussion on Subparts AA, BB, CC and Industry Applicability. Special thanks are given to FPA members Exopack, LLC, Flint Group, and Sun Chemical Corporation for their generous sponsorship of the EHS Summit Networking Events. Presentations from the 2011 FPA EHS Summit are available on the FPA Website, www. flexpack.org. For more information, contact FPA at (410) 694-0800 or fpa@flexpack.org. FP
FPA WELCOMES NEW MEMBERS The Flexible Packaging Association is pleased to announce that Advanced Barrier Extrusions LLC; Automated Packaging Systems, Incorporated; Chevron Phillips Chemical Company; Emerald Packaging, Incorporated; Extrusion Dies Industries, LLC; Flexo Wash LLC; Hilex Poly Company, Plastic Packaging Technologies; and, Prairie State Group, have joined the Association. Following are descriptions of the new FPA members.
CONVERTERS
ADVANCED BARRIER EXTRUSIONS LLC Advanced Barrier Extrusions is a privately held manufacturer of multi-layer cast film. Their primary market is barrier film for food packaging, using nylon, EVOH, polyethylene and polypropylene resins in co-extrusions. The company’s FPA official representative is Tony Haug, president; and the FPA alternate representatives are Kevin Kopplin, vice president, Finance, and Steve Pawelko, vice president, Operations. For more information, visit www.abx-films.com.
MARCH 2011
EMERALD PACKAGING, INCORPORATED Emerald Packaging is a printer/converter of flexible packaging for the produce industry. The company’s FPA official representative is Kevin Kelly, CEO; and, the FPA alternate representative is Todd Somers, Director of Sales and Marketing. For more information visit www.empack.com.
HILEX POLY COMPANY Hilex is the nation’s largest manufacturer and closed loop recycler of plastic bags. The company is also a leading supplier of environmental packaging solutions that create value, quality and service. The company’s FPA official representatives are Stan Bikulege, president and CEO, and New Members continues on page 14 >>
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FPA Update | F LE X I B LE PACK AG I N G AS S O CIATION
<< New Members continued from page 13
Ben Mascarello, senior vice president, Sales & Business Development. Hilex’s FPA alternate representative is Mark Daniels, vice president, Sustainability & Environmental Policy. For more information visit, www.hilexpoly.com.
bags. The company’s FPA official representative is Cliff Brehm, president, and the FPA alternate representative is Tim Braithwaite, vice president, Plastic Operations. For more information, visit www.autobag.com.
ASSOCIATE
PLASTIC PACKAGING TECHNOLOGIES Plastic Packaging Technologies is the manufacturer of printed, laminated and converted flexible packaging materials, including film, rollstock, bags and pouches for a variety of markets including food, pet care, specialty consumer, industrial and health care. Plastic Packaging Technologies’ FPA official representative is David Staker, president and CEO; and, the FPA alternate representative is Daniel Staker, executive vice president. For more information visit www.plaspack.com.
PRAIRIE STATE GROUP Prairie State Group is a printer and laminator of flexible packaging and pressure sensitive labels. The company specializes in narrow and mid-web flexible packaging and other high end graphics. Prairie State Group’s FPA official representative is Daniel Doherty, Executive Vice President of Operations. For more information visit www. psglabels.com.
CHEVRON PHILLIPS CHEMICAL COMPANY Chevron Phillips Chemical Company is a worldwide manufacturer of polyethylene and polypropylene polymers for the flexible packaging industry. The company’s FPA official representative is Joseph Locke, sales manager, The Americas, and the FPA alternate representative is David Smith, vice president, Polyethylene. For more information, visit www.cpchem.com.
EXTRUSION DIES INDUSTRIES, LLC Extrusion Dies Industries, LLC is an international supplier of flat extrusion and coextrusion die systems for film, sheet, extrusion coating, fluid coating, and strand pelletizing applications. Extrusion Dies Industries’ FPA official representative is Robert Deitrick, Sales Director – Americas; and the company’s FPA alternate representative is Dennis Paradise, Vice President – Sales & Marketing. For more information visit www. extrusiondies.com.
CONVERTER/ASSOCIATE
AUTOMATED PACKAGING SYSTEMS, INCORPORATED Automated Packaging Systems, Incorporated designs and manufacturers flexible bag packaging systems and is the inventor of Autobag® bagging machines and pre-opened
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FLEXO WASH LLC Flexo Wash provides user-friendly cleaning systems for anilox and gravure cylinders and sleeves, plates and plate sleeves, removable press parts, rotary screens and many custom applications. Flexo Wash’s FPA official representative is Michael Potter, CEO; and the FPA alternate representative is Ryan Potter, vice president of Sales. For more information, visit www.flexowashus.com. FP
MARCH 2011
CONGRATULATIONS!
The FPA Flexible Packaging Achievement Awards Winners - 2011 BEACON CONVERTERS, INCORPORATED ConforMIS Drill & Pin Kit Wallet: Highest Achievement Award (Institutional); Gold Award Packaging Excellence; Silver Award - Environmental & Sustainability Achievement
ROBBIE
Fresh N Tasty Produce Pouch: Highest Achievement Award (Retail); Gold Award - Packaging Excellence
AMERICAN PACKAGING CORPORATION John Soules Rotisserie Chicken: Silver Award - Printing Achievement
AMPAC FLEXIBLES, A DIVISION OF AMPAC PACKAGING, LLC 2011 Highest Achievement Award Winners
Sprout Zippered Retort Pouch: Gold Award - Environmental & Sustainablity Achievement Hormel® E-Z® Pouch: Silver Award - Packaging Excellence
BEMIS FLEXIBLE PACKAGING - MILPRINT DIVISION WellPet Package with KromaSilk Print: Gold Award - Printing Achievement Kaytee Flat Bottom Package: Silver Award - Printing Achievement
BERRY PLASTICS CORPORATION Safeway Frozen Pasta Quad Seal Package: Silver Award - Printing Achievement
CL&D GRAPHICS, INCORPORATED Australian Gold Tanning Set: Gold Award - Printing Achievement
Fresh N Tasty Produce Pouch
CURWOOD, INCORPORATED - A BEMIS COMPANY TM
Liquiflex® Advance Films for Bulk Liquids: Gold Award - Packaging Excellence
DANAFILMS, INCORPORATED & PLASTIC PACKAGING TECHNOLOGIES, LLC Trail’s End Classic Caramel Popcorn: Silver Award Environmental & Sustainability Achievement
NORDENIA USA Fresh Step Cat Litter: Gold Award - Packaging Excellence, Environmental & Sustainability Achievement; Nestle ONE Dog: Gold Award - Printing Achievement TM
OLIVER- TOLAS HEALTHCARE PACKAGING Zone Coated Rollstock: Silver Award - Technical Innovation
PERUPLAST S.A.
Masa PrePizza: Silver Award - Printing Achievement ConforMIS Drill & Pin Kit Wallet
PRINTPACK, INCORPORATED Wyman’s of Maine Wild Blueberry Juice: Silver Award - Printing Achievement
SEALED AIR CORPORATION - CRYOVAC FOOD PACKAGING Cryovac® Oven Ease TM Bags: Silver Award - Technical Innovation 971 Corporate Boulevard • Suite 403 • Linthicum, MD 21090 • 410.694.0800 [phone] • 410.694.0900 [fax] • www.flexpack.org
Converter News
SELIG SEALING PRODUCTS ACQUIRES ISCO, ESTABLISHING A FLEXIBLE PACKAGING PRESENCE elig Sealing Products, a leading manufacturer of tamperevident closure lining material, announced that it has acquired ISCO Jacques Schindler & Co. AG., a privately held business based in Niederglatt, Switzerland. This is Selig’s second strategic acquisition in the specialty packaging sector after its acquisition of Unipac in 2008. Selig Sealing Products is a portfolio company of Behrman Capital, a New York and San Francisco based private equity firm. Together with ISCO, Selig now offers a complete range of lamination technologies from solvent based, solvent free, extrusion and hot-melt systems and a broad range of print solutions including water based and solvent based, flexographic and rotogravure and a capability to employ 10 color gravure print to match the most demanding graphics needs in all of our markets. “ISCO’s product lines will augment Selig’s product and technology offering, resulting in a combined company able to offer customers a broad range of innovative, high quality solutions and allows Selig to offer flexible packaging
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products,” says Steve Cassidy, president and CEO of Selig Sealing Products. "We are delighted to welcome the ISCO team to Selig, and look forward to working with them to increase sales of current product offerings and develop new technologies.” “We look forward to our new relationship with Selig and to beginning a new chapter on ISCO’s history of innovation and accomplishment,” says Jacques H. Schindler, who is continuing as the vice president and general manager of ISCO. FP Selig Sealing Products (815) 657-8233; www.seligsealing.com
ISCO Jacques Schindler & Co. 41 (0)44 851 50 50; www.isco.ch/
the END RESULT
ONE GALLON STAND-UP POUCHES NOW AVAILABLE res-Co Systems USA Inc and International Dispensing Corporation (IDC) recently announced the worldwide debut of its newest collective package: A one-gallon stand-up pouch featuring Fres-Co’s large pouch and The Answer, IDC’s patented, proprietary dispensing technology. This novel Multiserve SafePak will contain 48 liquid servings of nutritional protein shots from Sunkist. Produced by Fres-Co, the innovative large-format pouches, are easy to carry, collapse with use, and can be stored anywhere even after dispensing has commenced, giving them the mobility and convenience of single-serve packages. Moreover, they bring all the advantages of bulk packages, costing the consumer significantly less
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Sunkist ww.sunkist.com Fres-Co System USA Inc. (215) 721-4600; www.fresco.com/
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per serving and having a vastly reduced environmental footprint compared to single-serve packages. Because the pouch is flexible, and because the patented tap maintains the freshness of the protein shots without need for refrigeration, the new package brings unprecedented versatility and benefits. “Through our partnership with Sunkist, BioBev, IDC, and Fres-co, we are now able to make protein supplements available in bulk,” says Jim Duffy, founder and president of Protica. “Bulk packaging offers consumers a new level of flexibility in their buying decision. The unique one gallon pouch saves consumers approximately 30 percent per serving, while in-depth life-cycle analyses indicate that large-format packaging with The Answer dramatically reduces the amount of energy, greenhouse gas emissions, and landfill waste compared to single-serve packaging. It is an economical and environmentally responsible option for consumers to get the protein supplements they need for their active lifestyles.” FP
International Dispensing Corporation (212) 957-9330; www.idcdispensing.com
Protica Inc. (610) 832-2000; www.protica.com BioBev (614) 793-8293; www.BioBev.com
MARCH 2011
UFLEX GROUP TO INVEST IN POLAND
s one of the world’s 5 largest manufacturers of flexible packaging films, India’s UFlex Group has decided to open its first European manufacturing project in Poland. Manufacturer of flexible laminates and pouches, and plain and metalized BOPET/BOPP/CPP/coextruded films, UFlex is keeping with its core policy of being as close as possible to its customers with its first European facilty. The first phase of this operation will be the setting up of an 8.7 meter wide/500 meters per minute biaxially oriented polyester (BOPET) film line and a high-barrier plasma enhanced vacuum metalizing plant near Poznan in central Poland. The plant is being set up under the aegis of Flex Film Europa Sp.z.o.o. The state-of-the-art BOPET Film plant will be one of the world’s largest film lines and will be capable of turning out about 80 million pounds of film annually. The total investment in the first phase will be $90 million and the plant is due to start commercial production in mid2012. This facility will enable European users of BOPET films to obtain their requirements at short call. Poznan is considered Poland’s second most prosperous city after Warsaw. It is a well-known centre for trade, industry, education and culture. Many leading multinational corporations have manufacturing plants located in the Poznan area. The UFlex Group is India’s largest flexible packaging conglomerate and is the world’s only fully vertically integrated company in this business. Its products include plain and metalized films, flexible packaging laminates, bags and pouches, PET resins, holographic materials, printing inks and coatings, adhesives, rotogravure cylinders, flexographic plates, packaging machinery and converting machinery. All these products are manufactured in-house in state-of-the-art global scale facilities and present annual revenues are about $870 million. It has manufacturing plants located in India, Dubai, Mexico and Egypt. FP
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MARCH 2011
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Converter News
LUMINER CONVERTING PURCHASES AQUAFLEX ELS PRESS Luminer Converting Group of Lakewood, New Jersey, has purchased its first Aquaflex ELS 13 inch 9-color stateof-the-art Servo printing press. “We needed to purchase a press that not only gave us superior printing and registration capabilities, but also a press that we could customize to allow us the ability to run a variety of different applications,” states John Borrelli, partner and general manager of Luminer Converting. “We were able to get everything we required by working with the PCMC staff on configuring the ELS press for all our needs.” Tim Fox, regional sales manager for Aquaflex, states, “Customers such as Luminer Converting are excellent relationships for PCMC-Aquaflex as they recognize our technology and engineering capability are assets to grow their businesses. Both PCMC-Aquaflex and Luminer are aligned together for long-term success and growth.” The Aquaflex ELS affords label converters the ultimate ROI value and maximum performance needed in today’s competitive narrow web label and flexible packaging
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market. With high productive capabilities, the ELS has become known to provide excellent reliability over time, delivering outstanding print quality by holding extremely tight print registration and superior dot reproduction. FP
Luminer Converting
PCMC
(732) 886-6557; www.luminer.com
(920) 494-5601; www.pcmc.com
MARCH 2010
Taking Barrier Films to the Generation
Alpine's X-Die Barrier Film Line
David A. Frecka, CEO
“When we decided to step up to barrier films, our choice was obvious: The Alpine X-Die line”
Superior Film Technology - Most Flexibility - Best Service and Support
Cover Feature: Converter Profile
St. Johns
PACKAGING CHARTS A GLOBAL COURSE Recent expansion into China and the United States reposition this Canada-based, vertically integrated manufacturer of flexible packaging for growth as a global player. By Rick Lingle, Executive Editor
hen a vertically integrated converter of Æexible packaging wants to expand in a new direction, there’s only one way to grow, at least geographically speaking: horizontally. That’s what St. Johns Packaging Ltd. (SJP), Saint-Jean-sur-Richelieu, Canada, near Montreal, has done the last several years in gaining solid footholds in two key, diverse global market regions: China and, more recently, the United States. A wholly owned SJP converting plant in Kunshan, China, was started up in 2007(see sidebar opposite page). In November 2010, SJP announced its acquisition of North State Flexibles (NSF), Greensboro, N.C. These moves represent a cohesive, proactive response to an evolving market. “With all the consolidation within the food and personal care industries,
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there are fewer and fewer customers, but they are larger companies,” explains Marc Leclair, SJP vice president and managing director. “Customers appear to rationalize their supplier base by relying on no more than two or three key suppliers. It is necessary for a company of our size to rationalize on supplying a limited range of products to a limited number of very large customers. “Quality and competitive prices are pretty much taken for granted by our customers and target customers,” he continues. “The only way we can truly distinguish our North American plants from those of our competitor’s is by being more Æexible and responsive.
We have very few customers and can therefore adapt to their every need. Whereas it wouldn’t be possible for a company our size to deliver optimal value to 100 different customers, we do think it is realistic with 15 to 20.” It’s this kind of vision that has led the company to dramatic growth. SJP’s 2010 sales were $80 million, doubling over the last Åve years. Adding two operations outside of Canada to its three manufacturing facilities within pushes 2011 sales projections to around $100 million USD, Leclair says. The acquisition of NSF unlocks opportunities in the U.S. “We are a Canadian company, but over about the
The recent acquisition of North State Flexibles in North Carolina gave SJP a strong foothold in the United States and helped diversify the company’s packaging portfolio into pouches and end-use markets such as pet food, lawn and garden, textile and apparel.
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FLEXIBLEPACKAGING
| www.flexpackmag.com
MARCH 2011
‘MADE IN CHINA’ Translates into Quality, Savings for Customers past 10 years we have been targeting the U.S. market more and more,” explains Leclair. “We now export 50 percent of our Canadian production to the U.S. To further develop that market and gain a better competitive advantage, we sought to acquire a U.S. converter.” What’s a good Åt for SJP is also good for NSF, according to NSF’s former owner Battle Wall, who will join St. Johns Packaging (USA) Ltd.’s board of directors. “We are excited about joining the St. Johns Packaging Group,” says Wall. “Although we are very proud of the success we have enjoyed as NSF during the past 13 years, I am convinced that our suppliers, associates and customers t. will beneÅt from our integration into St. he Johns’ North American operations. The combined group will be bigger and stronger, capable of supplying more products, services and value to the world’s two biggest Æexible packaging markets (North America and China).” Leclair feels NSF was a custom Åt for SJP in several ways including its personnel and solid production capability. “NSF has very good capabilities including prepress, or printing, laminating and converting for ng bags and pouches,” he says. “It is strong in markets that we are interested in rs developing. We have a lot of customers with operations east of the Mississippii on River and are in a much better position to supply more value to them.” The NSF acquisition brings both complimentary and new capabilities under the SJP banner. For one thing, NSF’s printing and bag making operations match up perfectly with SJP’s. “We have identical printing presses and same bag making machines so from that aspect we’re getting bigger at what we already do,” says Leclair. The pairing also brings SJP new technologies and methodologies it did not have before, in prepress, Æexographic plate-making and lamination via Comexi Nexus solventless laminators. Finally, NSF adds pouch-making capability. “Stand-up pouches and
MARCH 2011
In 2007, St. Johns Packaging established a wholly owned operation in Kunshan, China, located outside of Shanghai. SJP bought the land, built a 54,000-square foot plant, and installed extrusion, printing, and bag-making machinery to supply wicket bags for bread and personal care products. The biggest reason for doing this is one of the oldest: cost savings. For predictable volume SKUs and long lead-time orders (8 to 12 weeks), SJP can source the materials from the China facility at a cost savings for customers, according to Marc Leclair, vice president and managing director. For shorter lead time and just-in-time orders, the company can produce the packaging from its four U.S. and Canada plants. “It’s a business model to develop the North American market even more,” summarizes Leclair. The solution also answers concerns over overseas product quality. The plant offers the same level of vendors and materials as its North p America operations and the p plant meets Food and Drug Administration and Am American Institute of Baking (AIB) standards for food co contact packaging. Also, 2 25 Kunshan managers and to top operators were trained for a year in St. Johns North America plants, and those domestically trained perso personnel instruct new hires in Ch China. “W “We have the same capa capabilities in China as we do h here, so this is basically ‘tran ‘transplanting’ an audited and certified U.S. operation into China,” offered Leclair. “It aall comes down to lead tim time—if it’s long enough, the then it’s pretty much a nobra brainer for customers to ha have the packaging made in China.” While the U.S. remains its most Artists rendition of the plant in Kunshan, where packaging i market, k Leclair feels that attractive ‘made in China’ cuts the cost, China, with around 1.4 billion people, but not the quality, of flexible packaging for SJP’s North presents an emerging market for flexible American customers. packaging. “We established this presence as a leadership role because in all of China there are only 10 flexo presses,” states Leclair. “We are confident in our ability to establish our operation as China’s most reliable printer of flexible packaging products.” This approach in the expanding world of flexible packaging means materials “made in China” can translate to mean cheap, not cheaply made. FP
FLEXIBLEPACKAGING
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Cover Feature: Converter Profile This W&H Novoflex printing press at the St. Johns Packaging plant in Pointe-aux-Trembles, QC, Canada, is one of four 10-color plan flexographic exo presses that the company operates.
side-gusset pouches are the future of Æexible packaging,” observes Leclair. “NSF’s three pouch-making machines are very interesting to us.” NSF operates pouch-making machinery from Karlville and Totani America.
A Mix of Markets and Packaging Styles The acquisition of NSF changes the breadth and mix of SJP’s packaging portfolio both for its packaging repertoire and end-use markets. Leclair notes that its plants in Canada and China have a mix of 75 percent food packaging and 25 percent personal care packaging while half of NSF’s output is for personal care markets. “NSF is more diversiÅed and brings other product markets,” adds Leclair. “For example, pet food, lawn and garden, textile and apparel. This creates more overall opportunities for us.” With a portfolio rebalanced with NSF, now about half of SJP’s overall output targets food and lawn and garden end markets. The other half comprises packaging for personal care products that include diapers, feminine hygiene, and wet wipes. “We basically supply the leading North American baking companies as well as some of the top personal care companies,” says Leclair, who sees a common thread in these diverse markets.
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“All these customers are seeking to capitalize in improved Æexographic technology to develop designs that make their product stand out on the supermarket shelves. Companies are investing more in packaging, printing and graphics.” For example, one of the food segments for SJP is in the baking industry, where 9and 10-color printing and metallized bags are used for fresh sliced bread in Canada.
A Wicked Amount of Wicket Bags It’s for fresh sliced bread and a range of personal care products that one Ånds SJP’s most popular packaging format: wicket bags, a format the company has produced for more than 40 years. Representing about 75 percent of the company’s output, wicket bags are manufactured in every one of SJP’s Åve converting plants.
The converted bags are mounted onto 200- to 400-count wickets—U-shaped metal or plastic spools—and are boxed, and shipped to customers. The wicket
NSF has very good capabilities including prepress, printing, laminating and converting for bags and pouches
bags are typically placed by customers onto automatic Ållers that use air to open up the bags and insert the product before the bag is closed. The substrates used are mono- or tri-layer low-density and linear low-
density PE blends followed by eight or 10-color printing. That’s followed by application to the wickets using equipment from Hudson-Sharp Machine Co., a supplier of servodriven wicketers. SJP operates more than 50 wicket machines. Speeds range from longer-run orders produced at 400 bags per minute and short runs for promotions or special requirements at rates down to 150 bags per minute. Other than the increasing use of reclosure features, Leclair says there have been little structural changes to wicket bags over the years. “It’s a mature product in a mature market,” he opines. After wicket bags, the other 25 percent of SJP’s output consists of laminated pouches, stand-up pouches, side-gusset pouches and roll stock. End-use applications include wet wipes, food such as cookies and snacks, pet food, and agri-chem products.
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