Compostable and Renewable Films

3 cellulosic

processing

facilities

2 Research &

development

centres

37,000 tonnes

of cellulose film

produced annually

A leading global position

in the markets for

renewable & compostable

packaging films

Established

April 1st 1947

Group turnover

~$794Million

~1900 employees

with sales to over

100 countries

13 Sales &

technical offices

Futamura Group

Key facts

6 Manufacturing Divisions Serving Customers Around The World

Film Product Overview Leading Applications

Cellulose FilmsNatureFlex™, Cellophane™ & Pearl™ brands made from

renewable raw materials. Futamura is the world’s leading producer of sustainable cellulose packaging films

Non-woven FabricNon woven fabric made from cellulose & used in medical, sanitary

& cosmetic goods

Fibrous CasingOur MEATLONN™ fibrous casings are valued by our customers for their high quality, strength & consistent sizes. They are used

globally in smoked meat & cheese markets

Plastic FilmsFutamura produces a range of plastic films in Asia, including

BOPP, MOPP, Cast PP, LLDPE, MOPE & PET films fora range of packaging & industrial applications

Activated Carbon

Applications for our activated carbon products include drinking water filtration, air filters for critical uses such as semiconductor factories & food processing filtration for products such as sake,

vinegar & soy-sauce

Phenolic

Laminated Sheets Broadly used in various fields such as insulation & structural

materials for electric components and electric machines

What is NatureFlex™?

Typical Film construction

• The successor to traditional Cellophane™ • Cellophane market is declining (cost vs OPP), but NatureFlex is growing (market trends)

• Maximising readily-renewable content, managed forestry

• Certified home and industrial compostable

• Futamura is a direct signatory to EMF’s New Plastics Economy commitment• Our goal is to be a 100% compostable packaging film supplier by 2025

High heat resistance

Natural Anti-Static propertiesfor enhanced machinability

Excellent chemical resistance

Resistance to greases, oils & fats

Proven print &conversion performances

Technical Attributes – NatureFlex™ and CellophaneTM Films

Good gloss & transparency

Excellent gas & mineral oil barrier

Tailored moisture permeabilityto suit a wide variety of products

Inherent dead fold for twistor fold-end uses

Wide heat-seal range of coated films for enhanced packaging speed

Environmental Attributes – Cellophane™ & NatureFlex™

Certified to the Industrial composting

norms, EN13432 & ASTM D6400

Wood pulp sourced from FSC™ or

PEFC™ certified plantations

Suitable for anaerobic digestion

Certified to OK compost’s home

composting standard by TŰV Austria

Generally >90% bio-based carbon

based on ASTM D6866

Testing for marine biodegradation

White = Cellophane and NatureFlex

Yellow = NatureFlex only

• Packaging films tend to be from one of 2 schools:

• Soft, Strong & Stretchy (PE, CPP…)• Designed for sealant webs, tear-resistant bags etc

• Stiffer ‘oriented’ types (BOPP, BOPET…)• Designed for print and barrier webs

• In the bio world there are a number of materials in the Soft & Strong arena• PBS(A), Starch blends, Copolyesters

• But there are only 2 in the ‘oriented’ space:• PLA, NatureFlex

• NatureFlex is unique in combining ‘oriented plastic film’ properties in a heat-resistant format…

7

Where does NatureFlex fit in the flexible packaging world?

PET//PE replaced by NatureFlex NK//Biosealant film

Converter Parkside Flexibles

Layer A

Layer B

Layer C

• Layer A - PET (NatureFlex)• Stiffness, printability, heat resistance

• Layer B – Metallised PET or Alu foil

(met NatureFlex)• Moisture barrier, gas barrier, light barrier

• Layer C – PE (Biopolymer)• Seal strength, integrity

Bio-laminates

Place – segmentation - the ‘Retail triangle’

Organic & Natural

Premium,Healthy, Fairtrade

Conventional retailer brands

Value Brands‘Pile it high & sell it cheap’

Consumer asking for

‘responsible packaging’

• Typically we see ~4 different categories for any food product type

• Certain market sectors are stronger in the ‘natural’ and ‘premium’ categories than others

– E.g. Teas, Coffees, Chocolate, Fresh Produce

• Also: emerging opportunities in specific application sectors:

– E.g. Foodservice, Closed loop systems

Questions we’re asked when we promote

plastic films:

• What moisture barrier does it provide?

• What gas barrier does it provide?

• How much does it cost?

Questions we’re asked when we promote

Biofilms:

• What moisture barrier does it provide?

• What gas barrier does it provide?

• How much does it cost?

• When you say renewable, how renewable?

• How do you measure that ?

• Where does the raw material come from?

• Is it made using GMO?

• Is it sustainably certified?

• Does it compete with food crops?

• Is it biodegradable ?

• What’s the difference between biodegradable and

compostable?

• Is it home compostable ?

• Will it disappear on the shelf?

• Who certified it?

• What’s its carbon-footprint?

• Is it recyclable?

and on and on and on…

An imbalanced playing-field?

Biomaterials are expected to exceed

the level required for conventional

materials

• Economy of scale

• Impact of crude oil versus biomass

– For biomass – direct and indirect land use change, impact of biodiversity should be assessed

• No uncertainties too large to evaluate

• CO2 reducing effect sufficiently recognised?

– For crude oil and process chain – large gaps in transparency

• Impacts on terrestrial and marine biodiversity

• Incidents and accidents not evaluated

• Uncertainties deemed too high to justify an analysis of impacts

• Aggregated data tends to include modern installations

• Not country specific

Bio based polymers compared with petrochemicals wrt LCA

• NatureFlex films are designed for composting or AD as the intended end of life scenario, but will break down

in most environments (e.g. waste water, marine, soil)

• Home composting seen as an interim advantage

• Futamura to Lead EMF Pioneer project from Q4 2019 on best practice use of compostables

– List of applications which ‘make sense’ for compostables

e.g. bio-waste bags, fruit and veg bags, tea bags,

fruit labels, coffee capsules, catering items, multi layer flexible packaging

and contaminated food packaging

– Compatibility of all biomaterials to follow one practical organic recycling route

– EMF/Mondi-led identification programme – single indicator for MRF sorting

Acceptance of Compostable Packaging & Infrastructure

Position for organic recycling & infrastructure

• BBIA stakeholder work in UK specifically

– Mandatory food waste collections by 2023

– Allow compostable packaging to be collected with the food waste

• Benefits of compostable films

– Compostables aid the collection of organic waste

• More waste, more income

– Improves soil quality – need a specific C:N ratio. Compostable packaging is a carbon source

• Can improve biomass yield (OWS)

– Bulking agent – improves aeration. Kitchen waste is dense and needs aerating

• Compostables are an alternative to yard waste (being used for biomass incineration)

• Scale-wise, organic waste is a much bigger problem

(or opportunity) than plastic waste

Organic waste v plastic waste

Source: Science Direct 2017

Every tonne of organic waste, avoiding landfill,

taken through AD & then AC:

• Saves between 500kg & 1500kg CO2eq emissions

• Creates 300KWh of electricity

(>1 month requirement of a family home)

• Creates ~850litres of fertilising digestate

• Mix ~50/50 in AC with Garden-waste to create

optimum fertilising and soil-structure remediating

compost

• Improved water retention

• Reduced need for fossil-based fertilisers

• Improves the carbon:nitrogen ratio.

Sources: ADBA, NNFCC, REA

Compostable Packaging in a Circular Economy

Its absolutely achievable…

QUESTIONS?

Dr Lucy Cowton

Sustainability Manager

• DDI +44 (0)16973 41610

• Mobile +44 (0)7710 031041

• Email lucy.cowton@futamuragroup.com

• www.futamuragroup.com

• Twist wrap: natural dead-fold and static-free. Bespoke colours etc.

• Confectionery, nutrition bars & ice cream wrappers

• Other small format difficult to recycle wrappers (<A5 size)

• Coffee capsules: lid/membrane elements

• Barrier laminates & pouches

• effectively replaces BOPET & BOPA layers

• E.g. Pet food, cereals

• Suitable for HFFS, VFFS, Overwrap, Sachet & Twist formats

Which Applications are best suited to NatureFlex?

• Standard 3 layer PET//met.PET//PE laminate replaced by 2 layerNatureFlex NM White//Biosealant

• Standard degassing valve replaced by Compostable degassing valve

• Uses certified compostable inks and adhesives

• No loss of effective shelf life

• Renewable raw material content moved fromZero to 70%

• Packaging carbon footprint reduced by 44%

Benefits of moving to a compostable structure: