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News News Analysis Analysis Opinion Opinion Product Developments Product Developments A A wards wards Branding Branding Company Information Company Information Events Events www.ceepackaging.com CEE companies still upbeat long term Hungary takes moves to combat slowdown Innovating out of crisis Even in hard times, the Russian packaging market offers a wealth of opportunities Issue 9 February 2009

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Page 1: Packaging

NewsNews AnalysisAnalysis OpinionOpinion Product DevelopmentsProduct DevelopmentsAAwardswards BrandingBranding Company InformationCompany Information EventsEvents

www.ceepackaging.com

CEE companies

still upbeat

long term

Hungarytakes

moves tocombat

slowdown

Innovating out of crisis

Even in hard times,the Russian packaging marketoffers a wealth ofopportunities

Issue 9 February 2009

Page 2: Packaging

Ensuring freshness for any occasion

The superior properties and flexibility of Borealis and Borouge polyolefins make them the advanced packaging material of choice for applications as diverse as food packaging, flexible and rigid transport packaging, healthcare, courier bags, bottles, crates, boxes, trays, large containers and pallets.

Our plastics bring new ways to package food, increasing shelf life and consumer appeal, as well as dramatically cutting energy consumption. We are committed to addressing global challenges with innovative plastics solutions in infrastructure, automotive and advanced packaging.

From simple everyday products that make life easier to step-changing technological developments, Borealis and Borouge are leading the way.

www.borealisgroup.comwww.borouge.com

CEE ad English(210x295).indd 1 17.12.2008 16:30:45

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3CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

CEE PACKAGING

Around the region ...................................................................................4Ukrainian economy in crisisCentral and Eastern Europe losing momentumCEE companies remain upbeat about longer term business outlookEBRD reduces growth forecasts across regionPoland may put euro entry on holdHungary takes moves to combat slowdownIMF intervention the best of the bad news for Latvia

Industry winners......................................................................................11Awards given for medical packaging at PharmapackStudents honoured for work on polyoelefinsAward for super light margarine tub

Products and branding ........................................................................ 14Serial coding used to support promotional campaign

Interest growing for lotion pumpBlister packaging aids Gillette in war on theftExpert Lift cream rolled out in specialised jarSystem packing 150 trays per minuteFirst order received for bioplastic coated paperboardEconomic slowdown changes retail habits and offers new possibilities in packagingBoard launched for high quality folding cartonsSuperfos innovating out of crisisNon returnable keg aimed at alcohol exporters

Industry news ....................................................................................... 25Cologate Palmolive to have promotional packaging centre in PolandFSC recognises Tetra Pak for reaching 100 million certified packsBASF takes moves to combat the slowdownLabeller investing heavily in new premises and plant

Analysis ...... .......................................................................................... 29 Growth of beer consumption continues in CEE regionCorrugated body calls for voluntary phasing out of toxinGrowing interest in modified atmosphere packagingM+A activity down in the packaging industry

Events .................................................................................................... 34Even in hard times, the Russian packaging market offers a wealth of opportunitiesNo sign of recession for confectioneryFood event will have a strong packaging themeThirty percent increase for Pharmapack

Company profile ................................................................................... 40Borealis and Borouge Wrap-up Blown Film Market's Needs

ContentsIssue 9, February 2009

Central and Eastern European PackagingTel.: +48 22 2195466, +48 502 159080,

www.ceepackaging.com e. mail : [email protected]

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4 CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Around the region

Ukrainian economyin crisisPotentially the Ukraine is one of the largest growth market s in Europe. Despite politicalturmoil and demographic problems it turned it s back on the bad 1990s and st arted majorexpansion in the new century. Unfortunately the growth that it managed to achieve isnow evaporating.

To a large extent the Ukrainian econ-omy has been very much tied to the

fortunes of Russia. The 1990s were aperiod of stagnation and very slow pri-vatisation. However the country enjoyeda very strong boom after this periodwhich witnessed strong growth in thesales of food, beverages, pharmaceuticalsand other industries. This was a reflec-tion of growing incomes, not only for the

rich but also for the poor as the numberof people classed to be living in povertyhalved.

FMCG boomThe country was restructuring and theboom in FMCG sales led not only tomajor multinationals trying to get a largeslice of this market through local acqui-sitions but also to packaging companies

following their western clients. Thesecompanies included Tetra Pak, Can-Pack and KGS amongst many others.The speed of investment was such thatmany Ukrainian packaging productswere being exported, above all to Russiabut also to Poland and Germany as well.Of special interest was the glass industrythanks to strong growth in the sales ofbeer, vodka, wine and other beverages.

Kiev is likely to be the most effected capit alin the CEE region by the current crisis.

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Around the region

The Ukraine has a history of glass man-ufacture and among those companieswhich took advantage of this were Saint-Gobain and Vetropack.

Inefficient economyNontheless like Russia many areas of theeconomy have remained inefficient withlittle leadership from the top as onepolitical crisis has followed another. TheUkraine is now paying the price for sev-

eral years of unsustainable, consumptionfuelled growth and what the World Bankterms a 'macroeconomic policy mix thathas acted pro-cyclically rather than pru-dently, thereby increasing the size of thenecessary adjustment'. On 5 November2008, the IMF granted a USD16.5bnarrangement as an anchor for macroeco-nomic stability, encouraging privateinvestors to roll over credits provided tocorporates and banks and designed toprevent the credit crunch from deepen-ing the downturn. The fear is that for-eign investors who are worried aboutpolitical inertia and corruption may taketheir money out of the country whilethey still can thus cancelling out theIMF measures.

International assistanceThe World Bank is now putting togeth-er a package of assistance to helpUkraine get through the current crisiswhich support key structural reformsdesigned to make the country moreacceptable to international investors,including aid to the banking system aswell as improving budgetary efficiencyand make available funds for socialneeds. Between 2003 and 2006 thepoverty rate halved over 47.2 percent to24.5 percent. However unemploymentis now increasing.

DemographyThe Ukraine however faces yet anotherchallenge. The country is in demo-graphic decline as the population getsconsiderably older. Ironically, at thesame time the average longevity formales is actually decreasing. In 1991 thecountry had a population of fifty threemillion. Today is closer to forty seven

million. Furthermore some areas of thewestern part of the country haveamongst the highest birthrates inEurope. It is in the eastern part of thecountry where the population is fallingthe most, propelled also by emigration toRussia. There is now a birth rate of 1.1per female and given that most childrenare born to women in their early to midtwenties, this birthrate is likely to dropeven more

Immediate future weak.For the immediate future the Ukrainianmarket is likely to be very weak. TheEBRD at the end of January forecastnegative growth of five percent this yearthus cancelling out the gains of 2008.Industrial production is also down wellinto double figures when compared tothe beginning of last year. The countryhas a lot of ground to make up to makeit once more the target of internationalinvestors.

Victor Yushchenko came to power as president of the Ukraine on thewave on the popularly backed ‘Orange Revolution’. Snce then political andeconomic problems have somewhat eroded the appeal of ths revolution in

the minds of ordinary Ukrainians.

‘ one political crisis has followed another. ..’

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6 CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Around the region

Not long ago everyone was talkingabout "decoupling", the supposed

ability of emerging market economies tokeep growing even if other economiesfell into recession. That was then. Nowthe "hard landing" in emerging marketsmay become the "second epicentre" ofthe global crisis and CEE looks like itmay take centre stage. After years ofcredit excesses, few places look more vul-nerable than the countries from theBaltics to the Black Sea.

CEE´s Achilles heelsPrecise predictions are tenuous at themoment since the crisis is far from over.Yet most conference participants inVienna pointed at the most obvious risksfor the region: First there is the risk of arapid slowdown in credit expansion. Thehuge credit expansion of the past years isturning into a problem for foreign banksas the quality of outstanding loans isdeteriorating rapidly. Many of thosebanks are going through a process ofrapid deleveraging in their home coun-tries. The scarcity in global liquidity andglobal capital affects many parent banks,prohibiting them from transferring liq-uidity to CEE, especially to the countrieswith loans that exceed deposits. Thus,credit expansion in CEE is expected tobe based on domestic means, i.e. domes-tic deposit expansion. UniCredit boardmember Erich Hampel said that thebank was committed to fund its sub-sidiaries in those countries and wouldcontinue to lend to consumers and com-panies. ‘Coordination is essential and aplan for CEE should be designed’ saidHampel. He called on other internation-al banks active in the region, theEuropean Union, the InternationalMonetary Fund and other institutions tolaunch a joint plan to stem the threatthat funds could stop flowing and chokeeconomic growth.

FX mismatchesA second risk, and a main reason for thegrowing number of defaults, is the largeFX exposure of firms and households inCEE.

The rapid depreciation in some of thecurrencies of CEE is creating problemsin firm and household debt servicing.This is particularly true for the Baltics,Hungary, Romania and Ukraine.According to Analyst of Deutsche Bankforeign currency loans amount for morethan 50 percent of total loans in thesecountries. In Latvia and Estonia thisratio is 80 percent.

The Czech Republic is an exception in

that regard, according to Zdenek Tuma,Governor of the Czech National Bank:‘Czech banks are not reliant on interna-tional funding. The main source of cred-it is customer deposits, the ration ofloans to deposits in the Czech bankingsystem is still well below 100 percent.Bank loans are predominantly denomi-nated in Czech koruna and so are thecustomers´deposits held with domesticbanks. We do not face the usual problemof emerging economies with householdsand firms getting credit that is sourced inforeign currencies. This is simply an out-come of the credibility that our monetarypolicy and relatively long period of low

Central and Eastern Europelosing momentumThe CEE countries do not represent an exception to the general gloomy outlook for 2009according to economists, bankers and investors who attended the Euromoney Central &Eastern European Forum in Vienna on 21 January 2009.

Not yet grey skies over Warsaw.

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Around the region

inflation, as well as of nominal interestrates, has gained.’

Disappearing investor baseA third risk is that of a sudden stop incapital inflows. The astonishing supplyof developed government debt that ispoised to flood the market over the nextcouple of years will surely crowd outmoney that could be put to work in mar-kets such as CEE. Real estate FDI isdeclining fast, bank capital infusion aswell, whereas new green field invest-ments are very questionable. The coun-tries of CEE run high current accountdeficits and have large exposures in for-eign debts. If capital from abroad driesup, it may generate a large domesticrecession. Markets are already aware ofthis risk, driving the interest rates ofcredit default swaps are a lot higher forthose countries that have higher suchexposure.

Austria and CEEOne country´s banking system looksmost vulnerable. Austrian banks havedominated the surge of foreign currencyloans to former regions of the HabsburgEmpire. The failure of Credit Anstalt in

May 1931 brought the GreatDepression´s financial crisis to CentralEurope. Viennese banks may find them-selves playing a similar role as the currentdisaster unfolds.

According to the Austrian FinancialMarket Authority (FMA) the totalamount of outstanding loans of Austrianbanks to the CEE region (includingRussia and Ukraine) is USD 300 billion.This amount equals 68 percent ofAustrian GDP. It also makes Austria theleader in terms of total exposure of EU-banks to CEE (20 percent), followed byGermany (15.8 percent) and Italy (15,6percent).

What will happen next? In light of all the calls for state inventionand the multi-billion infrastructure pro-grams that are proposed to boost theeconomy in the region we are remindedof the Frenchman Frederick Bastiat, whogrimly joked 200 years ago that breakingwindows might also be a good way tostimulate the economy, as glaziers willhave more money to spend. The fallacyBastiat wanted to highlight is of coursethat such policies ignore the loss for thehomeowner who has to pay the glazier.

As Europeans consider the way for-ward, it is not too late for them to con-sider also Bastiat´s famous description ofthe state as "the great fictitious entity bywhich everyone seeks to live at theexpense of everyone else." Indeed, cur-rent economic policy is full of schemesfor getting something for nothing, withgovernment bonds clearly looking likethe next bubble in the making. Banksand bond markets are being reduced tomere channels for the financing of hugepublic sector deficits. Some argue thatthe government can spend without tax-ing at all; that it can continue to pile updebt without ever paying it off because"we owe it to ourselves." However, suchpleasant dreams in the past have alwaysbeen shattered by national insolvency orrunaway inflation - all governmentexpenditures must eventually be paid outof the proceeds of taxation; with infla-tion itself being merely a form, and aparticularly vicious form, of taxation.

Martin Kolmhofer is Director ofCEE PORTAL(www.cee-portal.at),

an Austria-based business platformfor Central and Eastern Europe

Food always sells well in an economic slowdown - especially if it is own label!

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8 CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Around the region

Central and eastern european companiesremain upbeat about longer term business outlookANovember 2008 survey, undertaken

by the Economist Intelligence Uniton behalf of leading global credit insurerAtradius shows that despite concernsabout the regional economy, companiesdo not expect a significant deteriorationof their business in Central and EasternEurope (CEE) in the next three years.

Over the next 12 months, only 40 per-cent of respondents expect a moderateimpact and 30 percent a large or verylarge impact on their company's opera-tions from the economic downturn inCEE.

While two-thirds of companies expectsome difficulties in financing their CEEoperations, only 14 percent expect this toresult in a reduction in their operationsin the region and only 15 percent areseeking to raise additional equityfinance.

Sixty one percent of respondents esti-mate that their annual revenue fromtrade and investment in the region wouldincrease by more than six percent overthe next three years and 90 percentexpect annual profit growth from theregion over that same period. This maypartly reflect companies' expectation thatCEE economies will begin to rebound in2010-11 after a difficult 2009 or thatmany respondents have not yet fully builtthe impact of the downturn into theirplans.

Firms already active in CEE are gener-ally looking to diversify their presence inthe region over the next three years.Although Poland will remain an impor-tant priority for companies, they areincreasingly interested in the Balkans,which has lagged the Central Europeanmarkets in reform and economic devel-opment but is set to narrow the gap inthe coming years.

The report 'Testing times - investingand trading in Central and EasternEurope' is the outcome of a survey of300 senior executives from companies in

Western Europe, the US and emergingmarkets which currently do business orplan to do business in CEE. This is thelatest in a series of Atradius commis-sioned reports focused on informingbusinesses of the opportunities and risksof trade with emerging markets.

As CEE populations are expected tofall sharply in the coming decades, theregion is at a disadvantage to LatinAmerica and South-East Asia, whereearlier surveys revealed that companiessaw growing populations as a key advan-tage. The negative effects of falling pop-ulations in CEE for companies mayhowever be counterbalanced to someextent by the increasing prosperity ofthese markets. More encouraging, 25percent of respondents cite the signifi-cance of changing technologies as anopportunity: CEE retains considerablescope for economic developmentthrough technological catch-up with

advanced economies.Despite respondents overall positive

assessment, a range of shortcomings inthe regulatory environment were identi-fied. Excessive or unclear bureaucracy isstill a major hindrance. Other leadingconcerns for businesses include poorinfrastructure, skills shortages, and risingwage costs. Corruption is a particularsource of difficulty in Romania andBulgaria. EU accession is generally rec-ognized as having eased trading condi-tions within the new member states,although non-tariff barriers to trade withthe new EU members remain an issueand trade with non-members hasbecome more difficult. Further steps inEuropean integration - membership inthe Schengen zone of free internal bor-ders and accession to the euro - are seenas highly important by respondents.

Opinions on the strength of the Polish economy were divided at thismeeting of the English speaking expatriate business owners associationheld in Warsaw on 11 February 2008. Economist Richard Mbewe (lef t,

standing) remains positive. Photo: Marcin Tokarski

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Around the region

Polish entry into the European exchange ratemechanism ERM2, where the zloty has tospend two years before being replaced by theeuro, could be postponed from the planneddate of May - June, 2009, if it could result inrisks for the local currency or financial sys-tem, PM Donald Tusk said at the beginningof February.

The Polish government had earlier hintedthat the global crisis could impact the plans toadopt the euro in 2012, but they have neverstated such a possibility so clearly.

Tusk also said that FX interventions couldnow prove counter-effective, joining the viewsof National Bank of Poland (NBP) governorSlawomir Skrzypek and deputy PM andeconomy minister Waldemar Pawlak.

The EBRD reduced its 2009 economicgrowth forecasts, reflecting the prospectsof a deepening recession in the devel-oped world, and faster-than-expectedslowing in economic activity in the finalmonths of 2008.

In its latest forecast for economicgrowth at the end of January 2008, thebank still expected the CEE region toavoid a blanket recession of its own.However, average growth predictionsmarked some stark variations.

Growth but only justThe EBRD now expects average 2009growth of 0.1 percent in the 30 countrieswhere it has investments, compared witha prediction of 2.5 percent based oncountry forecasts made in November lastyear. It estimates that the region expand-ed by 4.8 percent in 2008, comparedwith the prediction of 6.3 percent madelast November.

Chief Economist Erik Berglof said,‘The EBRD region is feeling the fullimpact of the global slowdown, mainlybecause of the region's increased integra-

tion within the global economy.’He added, ‘The ability of these coun-

tries to withstand such a major externalshock over the longer term will dependlargely on the speed of the recovery ofthe global economy, the combined effortsof individual governments andInternational Financial Institutions,including the EBRD, to safeguard finan-cial systems in the region, and the sup-port of foreign banks to their easternsubsidiaries.’

Rebound in the mid termDespite the lower short-term growthprospects, the mid to long-term expecta-tions call for a rebound, possibly as earlyas next year, Berglof noted that econom-ic fundamentals throughout the regionhad strengthened over the last decade,paving the way for the revival of eco-nomic momentum once the global eco-nomic downturn had abated.

Growth rates across regionThe EBRD expects economic growth ofone percent in Russia this year, down

from the three percent predicted lastNovember.

South Eastern Europe was expected toshow growth of 1.5 percent this year,down sharply from the 7.3 percent esti-mated for 2008. ‘Positive growth in thesecountries reflects still strong domesticdemand, and in some cases lower levelsof financial integration, but the risk of aneven sharper slowdown is high,’ accord-ing to Mr Berglof.

Growth in Central Europe and theBaltics is seen at 0.4 percent this yearafter 3.9 percent last year.

Baltics, Ukraine and Hungary all downDespite predicting close to flat growthfor the whole of its region, the EBRDexpects economic contractions this yearin Ukraine, Hungary and the three Balticstates.The Ukrainian economy is expect-ed to shrink by five percent in 2009,Hungary by two percent, with declinesof 3.5 percent, five percent and 2.5 per-cent seen in Estonia, Latvia andLithuania, respectively.

EBRD reduces growth forecasts across region

Poland may put euro entry on hold

Donald Tusk, Polish PM

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Around the region

On 29 January 2009, HungarianPrime Minister Ferenc Gyurcsany

announced in parliament that in orderto tackle the economic crisis the govern-ment plans to lower the burdens onlabour by HUF1 trillion, (EUR3.5bn).

This will mean lower personal incometax, employers' social security contribu-tions and cancelling a wealth tax. Thiswill take around HUF200bn off theburden being borne by the private sec-tor.

However this is to be paid for byincreases in value added tax except forbasic foodstuffs and a tax on certainassets.

Government spending is also to becontained, including social and welfarespending.

The Hungarian government is pro-jecting 2.5 - three percent economicslowdown and similar inflation rate in2009. The prognosis is in line with thelatest forecasts of the central bank. TheEuropean Commission predicts a 1.6percent fall in GDP growth forHungary in 2009.

The Hungarian government is

expecting export volume to decline bythree percent in 2009,as opposed to theearlier 3.9 percent growth forecast.Imports may contract by 3 - 3.5 percent.

Analysts mainly welcomed PrimeMinister Ferenc Gyurcsány's plans torestructure the tax system, although theplans yet lack a time frame for imple-

mentation and many details are notworked out or were let in shadow.Reducing taxes on employing labour atthe expense of bringing up VAT ratesseems to be the right direction of thereforms especially now when inflation isnot a concern. However, the changes toVAT rates could be carried out this yearbut the new personal income tax ratescan only be applied from 2010. Themost serious scepticism among econo-mists was voiced over whether the gov-ernment can entirely offset the loss ofrevenue from cutting personal income

tax and social security contributionswith the other measures. It is alsoremain to be seen whether such achange will require a new, supplemen-tary budget or not as the Prime Ministerhopes.

After GDP growth of ten percent in2007 and twelve percent in 2006, Latviaplunged into recession in 2008 withGDP falling four percent, due to thechoking off of foreign credits which ledto declining investment, real estate pur-chases and private consumption.

Meanwhile inflation began 2009 at11.5 percent annually, after reaching apeak of 18 percent by mid-2008.

The crisis led to the nationalisation ofLatvia's largest domestically ownedbank, Parex Bank, and to interventionby the International Monetary Fund

(IMF) which spearheaded a 7.5 bln eurobailout of Latvia that included fundingby the IMF, the European Union andthe World Bank.

The bailout will allow Latvia to main-tain its currency's peg to the euro at therate of 0.7028 Latvian lats (LVL) to oneeuro (1 LVL = 1.4229 EUR), but Latviahas agreed to raise taxes and slashspending to reduce the budget deficit tothree percent of GDP by 2011. In theshort term, these moves will furtherdampen demand and exacerbate therecession.

IMF intervention the best of the bad news for Latvia

Hungary takes moves to combat slowdown

Ferenc Gyurcsany in parliament

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11CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Industry winners

Presented by Prof. Philippe Arnaud,Hospital Pharmacist, Head of

Department Hôpital Bichat-ClaudeBernard AP-HP, the PharmapackAwards Ceremony singled out innova-tive packaging launched between 1December 2007 and 17 November 2008.

The goal of the Pharmapack Awards isto attract the attention of industrialPharmacists in charge of research, devel-opment and production, hospital-basedchemists, packaging purchasers, market-ing and product managers, representa-tives of institutions and the media.

Awards given for medical packaging at PharmapackThe Pharmapack Awards ceremony was held on Thursday 22nd January 2009 during theeighth edition of Pharmapack in Paris, France, in the Grande Halle de la V illette.Pharmapack is an international exhibition with over 190 comp anies from the packagingand pharmaceutical delivery systems.

Cold chain compliance Certificate: Airliner®, ColdpackFor more information on this product see interview with Cold pack’s

managing director Charles Henri Lehideux on www.ceepackaging.com

Compliance Award: easOtic ®Virbac Carros

andLaboratoires Virbac

Proper drug use Award:Actonelcombi ®

Actonel Western Europe, P&GPharmaceuticals

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12 CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Industry winners

Two students carrying out importantresearch on polyolefins have been

recognized by Borealis, a leadingprovider of innovative, value creatingplastics solutions, under its new StudentInnovation Award scheme. The studentsreceived their awards at the annualInnovation Day that Borealis celebratedin Linz, Austria on 21 January 2009.

For his doctoral degree on nor-bornene-based polyolefins by postmetal-locene catalysts, Italian student Dr.Andrea Ravasio received EUR5,000,while a masters degree thesis on scav-engers and chemical bonding for definedvolatile components in polyolefins yieldsAustrian student Andreas FuchsEUR3,000.

'The Borealis Student InnovationAward recognises the two most innova-

tive research papers at masters and doc-torate level on polyolefins, olefins ormelamine sciences,' says Dr. ChristianPaulik,

Manager for External Research andFunding at Borealis. 'Our aim is toengage young people in our vision ofShaping the Future with Plastics. Thesetwo important research projects symbol-ize exactly the spirit that we are trying tocapture.'

Ravasio's doctoral dissertation wascarried out at the University of Pavia,under Professor Maurizio Licchelli andIncoronata Tritto.

Professor Tritto says that Dr. Ravasioshowed himself to be very talented in thedesign and synthesis of organometalliccompoundsand copolymers.

'What singled out Andrea was his

comprehensive knowledge of catalysisfor olefin and cyclo-olefin copolymeriza-tion,' says Christian Paulik in explainingthe decision to give the doctorate awardto Dr. Ravasio.

Andreas Fuchs studied for his Mastersdegree at the Johannes KeplerUniversity, Linz, under the tutelage ofProfessor Oliver Brüggemann, whodescribes him as 'one of the best co-workers I have worked with in mycareer'.

Fuchs' thesis shows new ways toreduce emissions of volatile organiccompounds (VOCs) from polyolefins.'This work is set in the real world,' saysChristian Paulik. 'Andreas's findingsmight well help in the development offuture polymers.'

Students honoured for work on polyoelefins

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Industry winners

Unilever won a 2008 DeutscherVerpackungs Preis (German

Packaging Award) and a WorldStarPackaging Award for a margarine tub.

New concept of injection: SLIM®The winning Unilever 500 g Rama mar-garine tub uses Veriplast's super lightinjection moulding technology (SLIM).The SLIM concept has been developedat Veriplast Solutions' Ravensburg facili-ty in Germany. It combines the uniqueMucell® simultaneous nitrogen andplastic injection technique, a VeriplastSolutions exclusive in Europe, and theExtra Slim Label, an innovative down-gauged in-mould label (IML). Extra

Slim Label is produced at VeriplastDecorative Solutions in Angoulême,France.

10% reduction in weightOn one hand, the SLIM® technologyinvolves pressurised gas expanding whenthe pressure is released during the injec-tion moulding process. The gas replacesits equivalent volume of plastic, resultingin a reduction of up to 10% in packagingweight without any perceptible differ-ence in the final tub quality.

Label produced using 30% less CO2On the other hand, the Extra Slim Labelused in this tub is significantly thinner

than the market standard and providesan additional environmental benefit byreducing the CO2 footprint by 30%compared to standard labels. Those twoexclusive Veriplast Solutions' innova-tions combined in the unique SLIMconcept provide outstanding benefits interms of packaging weight reduction andcarbon footprint optimisation.

'We are particularly satisfied that oneof our key customers has won such aprestigious award with one of our newinnovation concepts; these awardsendorse the development capabilities ofour Group’, declared Thierry Tomasov,Veriplast Solutions' CEO.

Award for super light margarine tub

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14 CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Products and Branding

Serial coding used to support promotional campaignSibirsky Bereg, a major player on the

Russian snack foods market, usedAmcor SerialCoding for a recent promo-tional campaign for its brand Kirieshky.Kirieshky is a dried rye bread snack thatis available in nine different flavours: redcaviar; smoked salmon; cheese; baconand cheese; bacon; salami; jellied meatand horseradish; chicken and pizza.

Sibirsky Bereg launched a lottery sys-tem where it invited consumers ofKirieshky snacks to find a code inside thepack and send it via SMS or on the inter-net site of Sibirsky Bereg. Every hourduring 10 weeks from the launch cus-tomers had the opportunity to win anApple iPod touch.

'Amcor SerialCoding is ideal forgames and promotions like ours. Thistechnology delivered by Amcor in Russiahelped us to improve customer loyaltyand allowed us to track sales and con-sumption in specific regions. Due to thisproject we were able to maintain oursales level in a period of decreasingdemand for snacks,' commented MikhailSenikov, Director of Marketing andDevelopment at Sibirsky Bereg.

Amcor SerialCoding is not only usedfor product promotions but it can alsoprotect products from counterfeiting andprovides product traceability. The codingsystem can print any individual messagemade up of letters and/or numbers oneach separate wrapper.

Kirieshky snacks are availablethroughout Russia. Sibirsky Bereg alsohas a well developed distribution net-work in Kazakhstan, Belarus and theUkraine and sells its products in Europe,Asia and Australia.

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Products and Branding

Bottega Verde's Uomo Energy Poweranti-wrinkle, anti-stress formula-

tion, and Kelemata's Victor anti-fatiguecold cream both recently reachedEuropean retail shelves utilising Rexam'sProdigio , lotion pump which is airlessand according to the manufacturer'scompletely recyclable.

The Bottega Verde product was cus-tomized with matching electric-blueactuator and tank, while the Kelemataentry was created with a black actuatorand green-labelled tank.

'Two recent launches of Europeanprestige brands demonstrates the appealof our innovative beauty packaging,which builds brands,' said Virginie

Lemeunier, Product Manager - Lotion,Rexam Personal Care. 'The Prodigiolooks great on the retail shelf, and offerstrue consumer benefits, through elimina-tion of drips, clogs and product contam-ination.'

This dispensing technology has amechanically-closed actuator channelthat keeps the lotion exit-point neat,clear and free of messy build-up. Themechanism primes and pumps flawlessly,slides back after every actuation, and pre-vents product return after air or skincontact.

The Prodigio is fitted with polypropy-lene and polyethylene components.There is no elastomer or metal contact

with the lotion. It can dispense precisedosage of fragile, viscous formulationsthrough wider internal channels and isdesigned to withstand high-speedatmospheric filling and other processes.

'The Prodigio design 'feels right' inthe consumer's hand and offers smoothactuation,' said Lemeunier. 'On top ofthe enhanced ergonomics and function-ality is the fact that the Prodigio isdesigned with a large decoration area, foroptimal point-of-sale impact and prof-itability. No wonder we expect world-wide usage of Prodigio to grow in themonths ahead, in men's and women'sproducts ranging from mass market toprestige.'

Interest growing for lotion pump

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Products and branding

Blister packaging aids Gillette in war on theftSince 2000, Gillette's razors have been

packaged in RF-sealed clamshells asa solution to address a high theft rate.The clamshell offers great securityagainst pilferage, since it is sealed aroundthe edges during the packaging process.However, this process also makes it verydifficult and dangerous for purchasers toopen, due to the sharp edges that areformed when opening the package witha knife or scissors.

Moreover, the clamshell's exterior ismade entirely of plastic, which createsissues around sustainability as manufac-turers and many retailers are focusing onthe reduction in the volume of plasticused in their products and stores. Today,the manufacturers and retailers payingattention to sustainability are commend-ed for their great vision, as sustainable

packaging continues to gain ground asone of the best and 'greenest' businesspractices.

As Gillette began to focus its effortson more sustainable packaging, the com-pany was faced with a challenge to con-sider clamshell alternatives for its prod-ucts in the context of their current sys-tems, process, equipment and continuedneed to guard against pilferage.

Search for a solutionGillette set out to find a packaging solu-tion for their razor lines that would meettheir sustainability needs without requir-ing new packaging equipment or addi-tional labour costs.

They also did not want to sacrifice thepilfer-resistance they had with theirclamshell packaging.

Gillette, under the project manage-ment of senior engineer MichaelMarcinkowski, evaluated several packag-ing options, and ultimately selectedBlisterGuard®.

BlisterGuard's heat-sealable, tear-resistant design is recyclable. It usesEverest® Safe-Pak™ solid bleached sul-fate paperboard from InternationalPaper with multilayer Valéron® strengthfilm and a clear plastic blister to replaceGillette's clamshells.

'We really pushed the envelope on thedesign. We worked closely withColbert's research and developmentteam to develop unique foil-laminatedcards and a feature that allows some ofthe packages to breathe,' said

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Products and branding

Marcinkowski. 'Our R&D team wasinvolved in package design and trials.They had a lot of great ideas, and werelied on Colbert's expertise to ultimate-ly deliver on our needs. It was a great,collaborative process. In fact, wheneverwe had an idea or request, Colbert founda way to make it happen.'

Used across the rangeToday, the BlisterGuard packaging isused for the entire Gillette razor productline sold at all club stores in the UnitedStates and Canada. This includes suchwell-known Gillette brands as Fusion®,Mach3®, Sensor® and Venus®. While allclub packs are now sold in BlisterGuardpackaging, the packaging design variesby brand and model to meet the individ-ual needs of each product and the variouscomponents. For example, some pack-ages contain a razor plus blades, somealso contain a battery, and others containblades only.

Primarily paper-based, BlisterGuard'slarge printable area gives Gillette bettershelf presentation for their products. Asthe BlisterGuard packaging was beingcustomized for Gillette's products, thecompany used the opportunity toredesign their packaging across theirrazor brands.

ImprovementsThe manufacturers of BlisterGuardclaim that is use reduces the amount ofplastic in the environment by 50 - 70percent. At the same time products heldwithin it are theft-resistant at the storeand easy to open at home with scissors.The packaging increases brand visibilityand is more consumer-friendly.

Gillette was able to change to thisform of packaging was changed withoutchanging equipment and the assemblyprocess was made more efficient, withminimal retooling.

'BlisterGuard gave us what we neededto retain pilfer-resistance, while alsomeeting our goals for sustainability,' saidMarcinkowski. 'We were able to make apositive change to our razor packagingwith our existing machinery withoutincreasing the time it takes to deliver ourproducts. The end result is a win for allinvolved - retailers, Gillette, the environ-ment and our consumers.'

Nivea Visage Expert Lift has beenlaunched in a thick walled jar

made specially fro cream and rolled outglobally in January 2009.

The Nivea Visage Expert Lift rangeconsists of four products (Day Cream,Night Cream, Beauty Tonic and EyeCream) that offer a complete facialskincare solution especially developedfor the demanding skin care needs ofwomen aged over fifty. With its combi-nation of two powerful ingredients -Bioxilift and Hyaluronic Acid - ExpertLift promises noticeably tighter, rede-fined and smoother skin.

Beiersdorf wanted a packaging for-mat that would symbolise the range'sluxurious qualities, and developed thecream jar (which is used to package theDay Cream and Night Cream products)in close co-operation with RPCBramlage. The pack features an innova-tive dual-layer construction, with a

coloured inner jar visible inside the clearouter container. While the overall packachieves a 'glass effect,' the use of plas-tics offers significant lightweight andshatterproof advantages that make itsafe and practical both for the end userand the supply chain.

RPC Bramlage has utilised unusualmaterials to achieve the pack's distinc-tive look. The outer container is injec-tion moulded in a type of polystyrene toachieve a luxurious thick-walled effect.The inner jar is manufactured in violetPP, shaded to suit the product: a lightercolour differentiates the Day Cream

from the darker Night Cream. Labelsapplied to the outer jar by Beiersdorfenhance the premium effect.

The two-part lid uses the same com-bination of polystyrene outer and PPinner components, but is also metallisedfor further on-shelf impact.

Expert Lift cream rolled out in specialised jar

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Products and Branding

System packing 150 trays per minuteIshida Europe has launched a new sys-

tem for the fast and efficient packingof trays into cases and Eurocrates.Operating at speeds of up to 150 traysper minute, the Ishida IPS has beendesigned for a wide range of productsand applications, including ready meals,meat and poultry, seafood, salads, dairy,fresh fruit and confectionery.

Moving traysThe Ishida IPS works by moving indi-vidual trays rather than collations. Thissimplifies the infeeding of trays into themachine and enhances pick-and-placeaccuracy and consistency. The IPSrobot's moving parts have a very smallinertia, which enable them to accelerateand decelerate rapidly. During the pickand place operation, the IPS opticallytracks each tray and trays are picked andthe crates filled while in motion. Thesetechnical advances greatly increase thespeed and efficiency of the operation.

FlexibilityThe IPS also offers maximum flexibilityin terms of case layout. Each layer can bearranged in a different collation pattern,which provides greater stability formulti-layer crates and cases. In addition,the machine is able to include incom-plete layers, for example for packing to aspecified crate weight or tray number, orfor the inclusion of extra 'bonus' packs.

Set-up and operation are easy via theIPS's Touch Screen. The machine canalso be operated and monitored remote-ly. Preset programmes and easy-to-exchange pick heads mean changeoversfrom one tray to another can be carriedout in less then two minutes.

DurableIshida claims that the machine has alight but durable construction. Thecompany also believes that the rack andpinion drive eliminates the wear issuestypically associated with complex gear-boxes.

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Products and branding

Iggesund Paperboard has received itsfirst order for bioplastic-coated paper-

board. This means Invercote can now besupplied with a barrier that is biodegrad-able and is also made from a renewablesource. Uses include food packaging anddrinking cups.

Market driven environmental approach'This development is largely market driv-en but is also well in line with theHolmen Group's overall environmentalapproach,' explains Ola Buhrman, prod-uct manager for Iggesund Paperboard'splastic-coated and laminated products.'There is a clear demand for barriermaterials that are biodegradable and canbe composted.'

For the past couple of years Iggesundhas been performing trials using bioplas-tics as a barrier material. The companyhas also done an inventory and evalua-tion of the materials available on themarket. The bioplastic coating is done atthe company's paperboard finishingdepartment at Strömsbruk. The mostcommon barrier material in paperboardpackaging is polyethylene (PE), a plasticwhich is neither bio-based norbiodegradable. The bioplastic thatIggesund is now using is biodegradableand meets the European standard EN13432 for compostability.

Not a simple matter'Unfortunately, replacing ordinary PEwith bioplastic is not a simple matter -the new materials place higher demandson both production technology andequipment,' Buhrman says.

Current prices for bioplastics are sig-nificantly higher than the cost of PE butare expected to fall when availabilityincreases as more and larger productionfacilities start up.

' It's very clear that this development isbeing driven by the market's demand forgreater environmental awareness, andthat customers are prepared to pay morefor a biodegradable material,' saysBuhrman.

First order received for bioplastic coated paperboard

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Products and Branding

Sealed Air, a manufacturer of food andprotective packaging systems and

materials, is attributing a boom in salesof its MailTuff Cushioned Bags over theChristmas period to the economicdownturn as shoppers switched from thehigh street to online shopping to helpbeat the crunch.

Christmas salesThe company recorded a 29 percentincrease in MailTuff sales in the run up

to Christmas and a 9.5 percent increaseon like-for-like sales in 2007. Thegrowth mirrors the European boom inonline sales over the Christmas shoppingperiod which were up 60 percent on2007 .

Beating the crowds An estimated 68 percent of consumers inthe United Kingdom shopped online forChristmas presents in 2008 with 77 per-cent carrying out around a half or more

of their Christmas shopping online. Forthe majority of Christmas shoppers, theconvenience of 24 hour shopping, lack ofcrowds and competitive pricing were themain reasons for picking up presentsonline. Whereas the UK Is probably themost mature market for internet relatedsales in Europe, similar trends were seenacross the continent with Poland seeingaround one quarter of Christmas shop-pers looking to the internet and evenRussia seeing a huge increase in sales.

Economic slowdown changes retail habits and offers new possibilities in packaging

Page 21: Packaging

Board launched for high quality folding cartons

21CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Products and Branding

Stora Enso has launched its newPerforma Alto board for high-quali-

ty folding cartons.The company claims that its board

offers excellent print results and a brightsurface, making it ideal for cosmetics andluxury packaging. Performa Alto is avail-able in grammages from 200 to 350 gsm.

Bright, stable and white'Performa Alto has excellent brightness,brightness stability and whiteness. Thesmoothness of the reverse side alsoallows attractive print. Its quality clearlyputs it at the top end of CTMP andfolding boxboards in the market, thus weare marketing this board for cosmetics,luxury and other high-end packagingapplications. Performa Alto will providean interesting new material option forour customers,' says Öystein Aksnes,Vice President, Marketing & Sales,Stora Enso Carton Board.

Large familyStora Enso's Performa CTMP productfamily now comprises Performa Alto,Performa 2S, Performa White, Performa

Cream and Performa Natura brands.Performa CTMP boards combine thebenefits of folding boxboard with themechanical properties and chemicalpurity of solid bleached sulphate board.The odour and taint-neutral boards arealso suitable for packaging chocolate andpharmaceuticals. CTMP (chemi-ther-momechanical pulp) is used in the mid-dle layer of board to achieve superiorperformance in printing, converting anddemanding end uses.

In the folding boxboards category,Stora Enso has started the delivery ofnew, lower grammages of Tambrite inthe market. Tambrite is available in 205-380 gsm and is typically used for food,pharmaceuticals and confectionery pack-aging. It can also be used in larger boxsizes, thanks to its solid structure, highbulk and superior stiffness. 'Brand own-ers today want to reduce their overallconsumption of packaging materials toimprove both their profitability andimage. Tambrite responds to marketdemands for lower-weight packaging,'Aksnes says.

Small to medium sized itemsMailTuff Cushioned Bags are used by arange of online retailers and distributorsfor the package of a wide-range of smallto medium-sized items such as DVDs,books and clothing.

Maximising on-line strategy Stuart Roberts, European Director ofMarketing at Sealed Air, comments:‘Retailers across Europe maximisedonline retail strategies to help drive salesduring the Christmas shopping period.Consumers responded to this as they toofelt the financial pinch of Christmas andtook advantage of lower online productprices and the convenience of using theinternet to shop around for deals.

Reducing postage costs‘The shock-resistant, high puncture, tearand water resistance design of MailTuffprovides online retailers, distributors anddomestic resellers with a quick and easypackaging solution that offers excellentprotection. Furthermore, the Bags arelightweight, which helps to reducepostage costs - holding further appealamong consumers.’

MailTuff Cushioned Bags are manu-factured using a Polyethylene outer andcontain an AirCap® bubble inner thatretains its protective air cushion longerthan non-barrier bubbles. TheCushioned Bags are 100 percent recycla-ble and available in sizes ranging from180mm x 160mm to 350 x 470mm.

Following trendsStuart Roberts concludes: ‘The recycla-ble qualities of MailTuff will continue topromote sales across Europe in-line withrising online shopping trends.’

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Products and Branding

Superfos innovating out of crisisOne of the ways for Superfos to keep

the crisis at bay is to continue toconcentrate on developing new productsand improve existing products, especiallyin order to make customised solutions.One of the recent examples of this ishow both a German and a Swedish pateproducer wanted a packaging for theirproducts, targeting the increasing num-ber of people living alone - both youngand elders.

‘We came up with the new packagingthat is divided in two and thereby keepshalf the product concealed and freshwhile the other is open. This solution isbeneficial for people living alone whodon't eat as fast as a household of 2-4and who's tired of having to throw outexpired leftovers,’ explains Sales &Marketing Director Soeren Marcussen.

The new design was developed basedon the existing SuperSeal solution,which potential offers very low oxygentransmission rates and a shelf life equalto that of traditional barrier packs. Thesolution has already won three awardsfor its innovative design and is the per-fect platform for future customisations.

Increased shelf life In addition to developing new productsolutions, Superfos carries out a lot oftesting for the customers as well.Recently it was discovered through teststhat the right combination of compo-nents increase the barrier properties andkeep products such as cabbage and jamfresh for a long period in plastic contain-ers.

The improved oxygen barriers can beused to either increase shelf life signifi-cantly - up to two years - or simply tosecure a better product quality at theexisting shelf life.

Superfos believes that plastic packag-ing is much lighter, offers more efficientuse of storage capacity and is more envi-ronmental friendly than glass, the use ofplastic packaging may reduce the CO2emissions significantly.

‘The reduction of CO2 emissions is

very important to both us and our cus-tomer's green ambitions and even withinour plastic products, we're doing a lot ofresearch into further weight reductions -without compromising the high qualityor design of our packaging solutions,’Soeren Marcussen says.

He is confident that Superfos will

maintain the strong position within thepackaging industry because the crisisdoesn't stop people from eating or want-ing their food to taste good and stayfresh for as long as possible. And themarket remains open for those who cancome up with the best solutions for that.

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23CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Products and Branding

Non returnable keg aimed at alcohol exportersOver the past few years, a growing vari-

ety of new large-size beverage con-tainers, such as party kegs, home draft sys-tems, and PET kegs has infiltrated themarket. At the same time exporters ofproducts such as beer face problems in thefact that they are not getting their kegs backon export orders for obvious difficultieswith transport.

The German KHS has acted as consult-ant in the development of many of thesenew types of container by designing andsupplying the new filling systems. It is nowworking with the Dutch LightweightContainers in the development and mar-keting of plant and filling technology forthe disposable KeyKeg®.

The container in this case is a non-refill-able keg developed according to the bag-in-ball concept that has been speciallydesigned for filling with beer, sparklingwine, and cider.

The advantages of one-way systems alsoin the field of kegs are obvious. Becausethere is no effort or cost involved in return-ing, storing, or washing kegs of this kind,non-refillable kegs are of great interest tothose clients with high export rates or highkeg losses and to those who are either newto keg filling or who are changing their kegfilling concept.

With the KeyKeg combo-treatment headrecently developed, it is possible to fill bothconventional stainless-steel kegs as wellKeyKegs® at high capacities. The newcombination head can also be retrofittedinto existing lines.

There is more on the Key Keg and many other innovative products on :

www.ceepackaging.com

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24 CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Industry news

Cologate Palmolive to have promotional packaging centre in Poland

Sonoco has been awarded a contractby Colgate-Palmolive to manage all

European promotional packing require-ments for Colgate's oral care products.Sonoco's pack centre will be located inWroclaw, Poland.

Colgate decided to establish a dedicat-ed pack centre closer to its newly estab-lished oral care manufacturing facility inSwidnica, Poland. Sonoco will provide anumber of services at the new pack cen-

tre, including program management,materials purchasing as well as ware-house and distribution management.

'Colgate was looking for a dependablepartner with a successful history of start-ing up and operating dedicated packcentres,' said Chris Hill, director of busi-ness development - Sonoco Europe.'Sonoco was able to demonstrate to themthat we have people with the experience,the skills and the expertise to successful-

ly meet their expectations.'And now that the contract is final-

ized, we look forward to working evencloser with Colgate as we take the stepsnecessary to get the centre up and run-ning.'

Colgate-Palmolive and Sonoco expectoperations at the new pack centre tobegin very soon.

Wroclaw city centre

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Industry news

FSC recognises Tetra Pak for reaching 100 million certified packsThe Forest Stewardship Council

(FSC) recognises Tetra Pak for sell-ing over 100 million FSC-certified pack-ages only one year since it launched theworld's first FSC labeled food and liquidcarton. The Forest Stewardship CouncilMixed Sources label printed on each car-ton offers assurance to consumers thatthe packaging material comes fromresponsibly managed forests and con-trolled sources.

Expansion world wideThe Tetra Recart package was the firstpackage from Tetra Pak to be labelledwith the FSC logo on supermarketshelves in Sainsbury's stores in the UK.In 2008, Tetra Pak expanded its sales ofForest Stewardship Council labeled car-tons to Italy, Denmark, Brazil and theUS and they include such packages asthe Tetra Brik® Aseptic. Continuedgrowth is expected throughout 2009.

Extending through the supply chainSeveral Tetra Pak paperboard suppliershave FSC chain of custody certification.The certification of Tetra Pak's convert-ing plants has started and in some mar-kets it has completed the entire supplychain from the forest to the supermarketshelf.

‘Tetra Pak's pledge to certify all of itsproduction sites worldwide indicatesthat the potential expansion of certified

material is promising,’according to ForestStewardship CouncilExecutive Director Andrede Freitas.

Ambitious targetsTetra Pak has committedto source paperboard onlyfrom chain of custody cer-tified board mills by 2015.The company also plans tocertify the chain of custodyof all its own convertingand printing plants world-wide by 2018.

Said Mario Abreu,Forestry and RecyclingDirector, Tetra Pak: ‘Themain raw material we use ispaper. We believe that thesustainable use of renew-able resources - like woodfibres - is of utmost impor-tance. And we want to con-vey this message to con-sumers in the clearest pos-sible way. Today, the ForestStewardship Council is thebest proof of sustainableforestry. That's why ourultimate goal is to have allthe paper in our packagingcertified to the higheststandards - currently set byFSC.’

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Industry news

BASF takes moves to combat the slowdownBASF's global business declined sig-

nificantly in December 2008. In allregions, demand for chemical productshas not picked up in the first half ofJanuary and customers are continuing todestock.

BASF's chairman, Dr. JürgenHambrecht, currently sees no signs of aturnaround: 'The situation remainstough and difficult to predict. We do notexpect the economic environment toimprove in the coming months.' The

decline in business is greater thanexpected in November and will negative-ly impact earnings.

Reduced capacityBASF reduced capacity utilisation at itsproduction plants at its six Verbund sitesworldwide in mid-November. On aver-age, the capacity utilisation rate withinthe BASF Group is currently less than75 percent. Only demand for crop pro-tection products and products for the

food industry remains high.Since implementing the production

capacity reductions, BASF has beenusing flexible working time arrange-ments such as reduction of overtime andholiday accounts at the affected sitesworldwide. In doing so, the company isalso using an integrated approach to pro-duction known as Verbund, which allowsemployees to be transferred betweenplants with varying capacity utilisationrates.

The Italian film manufacturer Axial has just started using BASF's Styrolux® HS 70 for its shrink films. This newSBC type prevents the so-called "smile effect". The film made of S tyrolux does not give rise to any folds whencontainers having complex shapes are sleeve-wrapped. The lef t-hand container was sleeve-wrapped with PET filmwhile Styrolux HS 70 was used for the right-hand cont ainer.

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Industry News

Flexible working time arrangementsare no longer sufficient to absorb theeffects of production cuts everywhere.This applies primarily to sites that man-ufacture products for the automotiveindustry. For example, short-time work-ing was in February for approximately1,500 employees at BASF Coatings' sitein Münster, Germany, and for 180employees in Schwarzheide, Germany.Working hours have already beenreduced for about 150 employees at twosmaller coatings sites in Italy. BASF is

not ruling out the introduction of short-time working at further sites although atLudwigshafen and Antwerp, it is beingavoided for the time being due to the useof flexible manpower planning. Thecompany's management has alreadyagreed a preliminary framework withemployee representatives that will allowthe rapid introduction of short-timeworking in Ludwigshafen if necessary.

In Germany, short-time working is aninstrument that companies can use toavoid redundancies in difficult economic

situations. During short-time work,employees work less or not at all for amaximum of 18 months. The loss ofearnings incurred is in part compensatedby short-time working benefits paid bythe Federal Employment Agency.

'We will maintain strict discipline withregard to costs and expenditures. And wewill accelerate the implementation of ourexisting global restructuring and effi-ciency programs,' said Hambrecht.

What will the economic downturn do to the packaging industry in Central and Eastern Europe?

Here our opinions on this subject at Anuga Food Tech, Cologne on 12 March 2009 and Packaging Innovations Warsaw on 28 - 29 April 2009.

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Industry news

28

With a multi-million investment programme,Töpfer Kulmbach GmbH has laid the way for

further growth. Around ten months after theapproval of public funding, the work for the plannedplant expansion has begun. With this move, the com-pany, which is already one of the leading label manu-facturers in Europe, will further expand its marketposition.

Töpfer is investing a two figure million sum in itsKulmbach location. On land next to the existingplant (previously in front of the factory) a new 6,500square metre production and storage warehouse isbeing constructed. Here, Töpfer will produce mainlyfoil labels, flexible packaging, banderoles, sleeves andwet adhesive labels. Construction, including machin-ery start-up, is planned to be completed in Autumn2009.

At the same time, a push on quality is planned. Pre-set, offset and gravure services are being upgraded

Labeller investing heavily in new premises and plant

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Analysis

FEFCO, the European Federation ofCorrugated Board Manufacturers, hasreached a voluntary agreement to coordi-nate a common strategy for the wholeindustry to phase out DiBP in corrugat-ed products.

Di-iso-butylphtalate (DiBP) is used asa plasticiser in some adhesives. Somerecent studies have shown that DiBP hasa similar toxicological profile as Di-butylphthalate (DBP) which has beenincluded in the candidate list ofSubstances of Very High Concern(SVHC) recently 2 published by ECHA

(European Chemicals Agency).FEFCO represents 750 plants across

Europe and is the only EuropeanAssociation representing the CorrugatedBoard Industry in Europe.

After considerable activity atEuropean level, the corrugated sector,through its association, FEFCO, has rec-ommended its members to remove adhe-sives containing phthalate in products.

The result of this recommendation isthe voluntary initiative for the removal ofDi-iso-butylphthalate (DiBP) fromtheir products. FEFCO Members will

cease using adhesives containing DiBPin paper and board applications and willreport on progress annually and DiBPshould not be replaced by any substancewhich is known to have harmful effects.

FEFCO will promote its voluntaryagreement at international level withinthe International Corrugated CaseAssociation (ICCA) in order to convinceoverseas producers of corrugated boardto phase out the use of DiBP, which willhelp to reduce further the level of DiBPin the recycling loop.

Corrugated body calls for voluntary phasing out of toxin

with more powerful machinery. Furthernew acquisitions are planned for the fin-ishing department, in which the finalsizing of labels and other packagingproducts is processed. Rainer Töpfer,management spokesperson, says, 'Theexpansion is essential in order to contin-ue to offer our customers innovation,flexibility and reliability.'

Public funding can constitute up to 15percent of the investment sum. The pre-requisite for the funding was the inclu-

sion of Töpfer Kulmbach GmbH in theGA programme (Community TaskImprovement of the Regional EconomicStructure). The relevant notice waspassed to the management in November2007. It was one of the prerequisites forthe implementation of the ambitiousinvestment plans.

The funding will not just benefitTöpfer Kulmbach GmbH, but the entireregion as 430 staff are employed in theKulmbach plant in Bavaria. Annual

turnover is almost EUR80m. Labels aresupplied to 60 countries. TöpferKulmbach GmbH has 25 representativeoffices across the globe and four nation-al sales offices. The company has anannual production of around 30 billionlabels. On top of this, it prepares around500 million pieces of packaging for thefood industry.

According to a new report from beverageindustry analysts Canadean, per capitaconsumption of beer in central and east-ern Europe rose by 22 litres between2002 and 2007. Furthermore, centraland eastern Europe should lead proceed-ings in the short to medium term withper capita consumption in the regionexpected to increase by an additional 21percent over the next five years.

Whilst consumption also increasedstrongly in Asia, growth was more mod-est in Central and South America whilstAustralasia, North America and WesternEurope all declined.

Eastern Europe's performance on the

international stage has been predomi-nantly driven by Russia, the third largestglobal market in pure volume terms.Here, beer continues to benefit from theconsumer shift away from traditionalspirits. The CEE region is also home tofour of the world's ten heaviest beerdrinking nations including the CzechRepublic which has strengthened itsworld-leading position.

Beer is deeply ingrained into Czechculture and along with bread, milk andeggs is viewed as an essential stapleproduct. The resilience of the CzechBeer market has nevertheless beenremarkable particularly given the fact

that the pressures faced have been simi-lar to those seen in Germany and theUK.

Germany and the UK have represent-ed two traditional strongholds for beerbut continue to decline with overall vol-umes falling by a little under 4 percent inboth countries during 2007. A numberof factors have combined to dampendemand including a decline in heavymanual occupations, the growing popu-larity of soft drinks and wine, concernsover obesity and health and increasinglystringent drink drive legislation.

Growth of beer consumption continues in CEE region

from previous page

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Analysis

Growing interest in modified atmosphere packaging

When a product is packaged withMAP, air is evacuated from the

package during the packaging processand then replaced with special protectivegas. The evacuation process removes airfrom the product as well as the package,thus minimising the oxygen remainingin the package. Only then is a specialprotective gas injected in order to retardthe speed at which the product perishes.The composition of the protective gasdepends on the foodstuff being pack-aged. It may consist of only one gas or bea combination of nitrogen and carbon

dioxide. The injection of a protective gasinto the packaging creates a new gas-filled space that resists the force of theatmospheric pressure outside. This tech-nique is also suitable for packaging pres-sure-sensitive products with a long shelflife without damaging them. One of themajor benefits of the MAP technique isthat it does not require the use of anypreservatives. Sensor tests confirm thatproducts packaged in this way do notsuffer any change in taste - provided, ofcourse, that the right protective gas isused.

Ideal for many productsMAP is an ideal way to package manyproducts, including pre-baked rolls andbread for warming in the oven, pas-teurised foods such as pasta or ready-meals, fresh meat, sliced sausage andcheese, sausages, curd cheese and slicedfruits. The method is particularly suitedfor packaging fresh meat, since the pro-tective gas not only gives the product alonger shelf life but also ensures that itretains an appetizing colour.

MAP can be produced using eitherthermoforming machines or tray sealers.

Recent years have seen enormous growth in the use of modified atmosphere p ackaging(MAP) for fresh produce in the food ret ail trade. This technique optimises the internalatmosphere of product packages, thus ensuring that the goods inside ret ain their qualityfor a longer period of time. In addition, MAP offers attractive presentation opportunitiesat the point of sale as well as enhanced hygiene conditions.

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Analysis

Thermoforming machines use rolls ofplastic film, which can be replaced inline.They are very efficient, operating at ahigh cycle rate and with very littlewastage of film. The rolls of packagingfilm can be stored without problems.

As a rule, tray sealers work with pre-fabricated trays made of polypropylene,which offers outstanding protectionagainst steam. The trays used must havea sealing edge that is even all around andsufficiently broad, be easily stackable andhave a flat bottom and sealing edge, so asto ensure thorough and fully automaticmachinability. In the sector for pre-pre-pared and convenience products, there isnow a trend towards packaging traysmade of CPET-based materials that canbe used in the oven.

In the MAP method, the covering filmis usually made of either shrink film orcomposite film, depending on the barri-er effect required to ensure the desiredshelf life. In addition to being highlytransparent, these films must also displayexcellent antifogging properties. This

prevents the formation of droplets ofwater on the inside the film, so the pack-aging does not mist up.

Towards thinner materialsWith regard to both trays and films, thetrend is now toward the use of thinnermaterials. Many suppliers are workinghard in this field, not least because theresulting savings in materials help offsethigh prices for raw materials as well asconserving natural resources. For exam-ple, Anuga FoodTec next month willfeature a new MAP tray made ofpolypropylene that contains 25 per centless material than the trays normallyused. Measuring 190 x 144 x 50 millime-tres, it weighs a mere 10 grams.

Biodegradable There is likewise a growing interest inthe use of biodegradable trays and films.Good results have already been achievedwith polyactide (PLA), for example.PLA is a polymer based on lactic acidand produced from maize via biochemi-

cal processes. It is waterproof and can bethermoplastically processed. When thematerial first came on the market, therewere problems with its machinability. Inthe meantime, however, there have beensignificant developments in this field,with the result that renewable packagingmaterials now present an interestingoption, not least because the look ofPLA materials has also substantiallyimproved. In addition, some suppliers arenow using trays made of other renewablematerials, including pure wood pulp.This is particularly suitable for packag-ing convenience foods that can be eitheroven-cooked or microwaved in the tray

Presentation at point of saleGreater importance attached to look ofpackaging In general, more and moreattention is being paid to the appearanceof packaging. With the rapid growth ofthe market in pre-packed meat and meatproducts over recent years, the issue ofpresentation at the point of sale hasbecome increasingly important. Once

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Analysis

again, the discount supermarkets haveled the way here with their growing useof packaging films that are printablewith a high-quality rotogravure process.

MAP also has benefits for the packag-ing of meat spreads and pâtés. It is nowincreasingly common for such productsto be sold in tubs, thus enabling them tobe neatly portioned until they are fullyconsumed. One manufacturer has nowdeveloped a MAP system that, depend-ing on the nature of the product, reducesresidual oxygen levels in the sealed pack-aging to 0.3 per cent or less, thus pre-venting undesirable discolouring. Heretoo, presentation at the point of saleplays a crucial role. The opportunity to

create individually shaped and printedtubs and containers also generates allkinds of additional benefits for bothmanufacturers and consumers.

Last but not least, the use of so-calledlifestyle packaging - in conjunction with,for example, 'to-go' products such as tri-angular sandwiches - also offers interest-ing market opportunities. Such productslook freshly made - a trend that's appre-ciated by many consumers. And equallyimportant for the retail food trade: sand-wiches hermetically sealed in deep-drawn packaging with a modified atmos-phere have a shelf life of up to 12 days.

A strong double actAnother special type of skin packagingdeveloped especially for red meat fea-tures not one but two films. The firstfilm, which is skin-wrapped around theproduct, fixes the meat to the tray bot-tom and prevents juices from escaping;the second film, which is smooth andshiny, is sealed atop the skin package inan additional sealing process that placesthe skin-wrapped product under a mod-

ified atmosphere with a high oxygencontent. The first film is breathable andthereby allows for a controlled diffusionof oxygen, so that the meat retains its redcolour. Thanks to the covering film, thepackages are stackable and easy to label.Skin packages with a covering film arealso ideal for marinated products. Thefirst film encloses and fixes the productin the packaging, thus preventing anysliding or sauce spillage, while the appli-cation of a second, flexible covering filmgives the tray a smooth top. If desired,product information, recipes or evenother foodstuffs, such as vegetables, canbe inserted between the two films. Inother words, besides giving the productan attractive appearance, such packagingoffers consumers further added valuethat may have a positive influence ontheir purchasing decision. Skin packag-ing is suitable for fresh, frozen and alsoconvenience products such as steamablefoods.

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33CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Analysis

M+A activity down in the packaging industryBMO Capital Markets, the invest-

ment and corporate banking arm ofBMO Financial Group has released itsthird annual report on packaging M&Aactivity, entitled Mergers andAcquisitions in the Packaging Industry:2008 Annual Deal Review.

The report provides an overview ofreported M&A activity in 2008, exam-ines M&A activity by sector, geography,acquirer type, size, and valuations, andprovides a brief synopsis of each transac-tion announced during the year. In addi-tion, the report examines packagingM&A trends over the last several years.

'The last year has been a challengingyear for M&A activity in the packagingindustry in terms of deal volume, valua-tions, and interest among all types ofacquirers,' said Doug Lawson, ManagingDirector and Head of the BMO CapitalMarkets packaging practice.

'After a record setting year in 2007, theM&A environment was affected bychallenging market conditions in 2008.The credit crisis and a difficult econom-ic environment combined with unprece-dented spikes in resin, oil and paper-board prices resulted in a significantslowdown in packaging M&A activity,'Lawson added. 'While we expect thechallenging conditions to persist in2009, we believe that packaging industryfundamentals remain attractive over themedium-to-long term and the strongrationale for consolidation in the pack-aging sector continues to exist.'

Global M&A volume declinedIn 2008, there were 252 announcedtransactions worldwide, which representa decrease of 35 percent from the 386announced deals in 2007 and the lowestlevel in the past ten years.

M&A activity weakened Europe and North America continued toremain as the two largest regions for dealactivity worldwide, with 38 percent and

34 percent of deals in 2008, respectively.However, year-over-year, transaction vol-ume fell off across all regions worldwidein 2008. While North America was thesecond most active region worldwidewith 34 percent of total global deals,North America experienced the largestdrop, with 56 fewer transactions in 2008(86 transactions) than 2007 (142 trans-actions).

All Sectors Affected In 2008, the number of deals in thepackaging industry was relatively evenlydispersed between the rigid (29 percent),paperboard (24 percent), and flexible (23percent) sectors. The remainder of activ-ity was split between labels, machinery,and other packaging. While M&A activ-ity slowed across all sectors, flexiblepackaging had the most significant slow-down on a nominal basis. Packagingmachinery was least affected with only18 percent less transactions in 2008 than2007.

Deal Value DownThe aggregate value for packaging trans-actions with reported values in 2008 wasUSD14.9 billion for the 88 transactions(35 percent of all deals) with reportedvalues as compared to USD32.6 billionin 2007 for the 137 transactions (35 per-cent of all deals) with reported values.The median reported transaction valuein 2008 was USD17.3 million versusUSD35.1million in 2007 andUSD21million in 2006.

Strategic acquirers most activeStrategic acquirers continued to leadM&A volume in the packaging industry,with 166 transactions or 66 percent ofannounced deals in 2008 (versus 255deals in 2007 or 66 percent of announcedvolume). Private companies made moreacquisitions in 2008 (94) than publiccompanies (72); while in 2007, publiccompanies had been more active than

private companies. Private equity firmsand their portfolio companies accountedfor the remaining 86 deals or 34 percentof transactions.

Restructuring related transactions In the second half of 2008, severalrestructuring-related acquisitions wereannounced as heavy debt levels wereaggravated by the challenging economicand financing environment combinedwith high commodity prices.

Doug Lawson, Managing Directorand Head of the BMO Capital

Markets packaging practice believesthat packaging industry

fundamentals remain attractive.

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Events

The effects of the global financial andeconomic crises have dampened

demand on the Russian packaging mar-ket for the moment but by no meansbrought it to a complete standstill.Demand for packaging remains high andinterest in innovative technologies andmaterials for production is unwavering.Despite the current difficulties, Russia isstill set to become one of the world'sbiggest consumer markets. Packagingmanufacturers in the Russian Federationneed to invest in order to meet theexpectations of customers in such sectorsas food, confectionery, cosmetics andpharmaceuticals.

Unsurprisingly, keen interest was reg-istered in Upakovka/Upak Italia 2009,the International Trade Fair Machineryand Equipment for the Manufacture ofPackaging, Packaging Machinery,Confectionery Machinery, Packagingand Packaging Aids, Logistics. Jointlystaged between 27 and 30 January,

Interplastica 2009, the InternationalTrade Fair Plastics and Rubber, therewere 20,500 trade visitors from all cor-ners of the CIS and its neighbours. Atotal of about 900 exhibitors rented a netarea of 19,000 square metres to showcasetheir offerings. Visitors' far-reachingdecision-making powers, their pre-fairpreparations and targeted enquiriesimpressed exhibitors and revealed realinterest in placing orders. The generaltenor of exhibitor responses was one ofsurprise at the wealth of intensive nego-tiations which promise good post-fairbusiness.

Werner M. Dornscheidt, Presidentand CEO of Messe Düsseldorf, summedup the event in positive tones: ‘Economicconditions worldwide and in the regioncurrently present Russian businesseswith serious challenges. In particular, thefinancing of projects has become incred-ibly difficult and is putting SMEs undertremendous pressure. The fact that we

have received such a warm response fromboth exhibitors and visitors in such try-ing times bears testimony to the role ofUpakovka/Upak Italia 2009 as a leadingplatform for innovation and an econom-ic spur to the industry.’

Trade visitors took advantage of theevent's four-day run in order to gatherextensive information on the interna-tional range of offerings. Not only werethey enthusiastic about the products andservices showcased by companies from19 countries but also unanimouslyagreed that, in the light of the difficulteconomic climate, the presence of glob-ally active businesses was greatly appreci-ated.

Officially sponsored national partici-pations flew the flags of Germany,France and Italy. The biggest exhibitorcontingent this year came from Italywith 99 companies, followed byGermany with 92 and Russia with 87exhibitors. Upakovka/Upak Italia 2009 is

Even in hard times,the Russian packaging market offers a wealth of opportunities

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Events

organised by Messe Düsseldorf and itssubsidiary Messe Düsseldorf Moscow incooperation with the Italian event coor-dinator Centrexpo.

Top market for German productsFor German suppliers of packaging andconfectionery machinery, Russia remainsthe key market in Central and EasternEurope. In the first eleven months of2008, packaging machinery to the valueof about EUR401m was sold to Russianbuyers. This represents an increase in theexport value over the same period in theprevious year by 29 percent. Althoughdemand for confectionery machinerydipped in comparison with 2007, theexport volume valued at EUR37.2 mil-lion recorded for the period January toNovember 2008 is still higher than forthe whole of 2006. Germany remainsRussia's primary source of packaging andconfectionery machinery.

Vera Fritsche of the VDMA-Fachverband Nahrungsmittelmaschinenund Verpackungsmaschinen (FoodProcessing and Packaging MachineryAssociation within the VDMA) empha-sised the importance of the Russian mar-ket: ‘Despite the fact that demand is cur-

rently slightly weaker and some invest-ment projects have been put on ice, theneed to invest remains and interest is stillstrong. There are even major Russianand multinational enterprises whichhave chosen to invest now. Thanks totheir reputation for innovative technolo-gy and reliability, German products con-tinue to be highly regarded.Longstanding business relationshipswere deepened and new contacts forgedat the trade fair. Many of the businessdiscussions promise to translate intodeals. As did the economic stimuluspackage announced in December lastyear which is intended to boost domesticindustries such as the food industry.’

Italians see Russian potentialThe optimistic evaluation is shared bythe Italian exhibitor companies.Compared to the previous year, theirjoint presentation even grew once again.This is a clear sign that the marketremains highly attractive to Italian man-ufacturers even if the times of untram-melled growth are over, at least for now.Annunziata Landi from the ItalianInstitute for Foreign Trade (ICE) high-lighted the tremendous potential

demand that still exists in Russia and itsneighbouring countries: 'Italian busi-nesses still have faith in the Russian andneighbouring markets and justifiablybelieve that there are very good salesopportunities.The interest shown by vis-itors proves that, with high-quality,innovative products, you can still keep abusiness on track for the future even inunstable times. I feel confident that inthe coming year, similar numbers ofItalian businesses will once again partic-ipate in Upakovka/Upak Italia 2009’.

The specialist ancillary programme,which was staged on the second andthird day of the fair was given a warmreception. The lineup included seminarsand discussions that tackled topicalpackaging industry issues and were con-ducted by speakers from internationalassociations and tertiary institutions.Exhibitors and trade media organisedconferences and round-table events.What's more, exhibiting companies andtrade visitors were entitled to use thebusiness center on the fairgrounds as amarketplace for jobs and finding con-tacts. Plus, students from various pack-aging-related disciplines were availableto answer specific questions.

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Events

'The fact that ProSweets Cologne tookplace exactly in parallel to ISM, theInternational Sweets and Biscuits Fair,was a big factor in the positive visitorturnout', says Gerald Boese, Presidentand CEO of Koelnmesse. 'Our conceptto provide the supplier industry with itsown specific platform has finally beenfully appreciated by the sector. This wasespecially underlined by the large num-ber of expert visitors from the area ofproduction and manufacturing whoattended the event.'

ProSweets Cologne focused on theentire supply spectrum, from confec-tionery production and processing topackaging. This includes the productareas ingredients, confectionery packag-ing and packaging technology, machinesand equipment for the confectioneryindustry, as well as food safety and qual-ity management.

Growth in difficult timesCompared to the last event, ProSweetsCologne recorded a 38 per cent growthin visitor numbers to 14,700 expertsfrom over 100 countries (2007: 10,655from 128 countries). Nearly 50 per centof the visitors came from abroad. Themain reason for this growth was the fourday overlap with ISM.

Despite the difficult financial climate,compared to the previous eventProSweets Cologne also managed toincrease the number of exhibitors by 6percent to 307 exhibiting companiesfrom 28 countries (2007: 289 companiesfrom 26 countries).

No sign of recession for confectioneryProSweets Cologne, the International Supplier Fair for the Confectionery Industry , cameto an end on Wednesday, 4th February 2009. Over 14,700 visitors from over 100 countries and 307 exhibiting companies from 28 countries established new records forthe event.

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Events

10 - 13 MarchAnuga Food TecCologne,Germany

12 March Sustainable Packaging conferenceOn 12 March during Anuga FoodTech therewill be a conference on sustainable packag -ing : www.sustainable-packaging.deIn recent years the discussions about envi -ronmental protection, recycling andresource scarcity have paved the way forinnovative solutions for sustainable packag-ings. The conference SustainablePackaging will give an up-to-date overviewof this topic and its political framework, mar -ket developments, influencing factors,options and ecological evaluations.

11- 12 MarchLublin Packaging Fair,Lublin,Poland

24 - 28 MarchIpack,Milan,Italy

7 - 9 AprilFoodpack St PetersburgRussia

22 - 23 AprilEasy Fairs® Verpackung SchweizZurich,Switzerland

28 - 29 AprilEasy Fairs® Packaging InnovationsWarsaw, Poland

7 MayDeutscher Verpackungskongress 2009Steigenberger Hotel Berlin, Germany

11 - 15 MayHispack and BTA 2009Barcelona, Spain

14 - 15 Maydvi - Packaging DesignBerlin, Germany

19 - 22 MayEmbax Print,Brno, Czech Republic,

3 - 4 June Pack and GiftParis, France

3 - 6 JuneModernpak,Zagreb, Croatia

17 - 19 Junedvi - Verpackungsentwicklung und optimierungNuremburg,Germany

23 - 27 JuneRosupak,Moscow, Russia

8 - 11 SeptemberInpodmash - UpakovkaAcco International Exhibition Centre, Kiev, Ukraine

14 - 17 SeptemberPakfood,Poznan International Fair, Poznan, Poland

14 - 19 SeptemberDrinktecMunich, Germany

16 - 19 SeptemberPacktechBelgrade,Serbia

29 Sept - 1 OctFachpackNuremburgGermany

6 - 9 OctoberBudatranspack,BudapestHungary

6 - 7 October easyFairs® EMPACK St PetersburgRussia

EventsCrisis busting productsEspecially in demand were products andconcepts that boost efficiency and thuslead to a reduction in costs. 'Manyenquiries directly involved the reductionof costs in all areas of the value chain.With our new system we have recog-nized the trend of combining variousproduction processes and therefore low-ering costs. The strong demand we expe-rienced reflected this,' said one supplierof machinery. In general, the topics of'saving costs and targeted investments'will surely play a big role this year. 'Dueto the current economic situation ourbusiness has changed. We are currentlyexperiencing a strong demand for small-er machines that the manufacturers canpurchase from their cash flow and there-fore don't need to find any extra meansfor financing,' a process technology sup-plier explained.

Confectionery signals positiveISM, which was held in parallel, couldalso report very good signals for the con-fectionery year 2009. With its new prod-ucts and innovative marketing strategies,the sector has set a very positive start tothe year.The 1,593 exhibiting companieshave reason to look ahead with carefuloptimism. With over 32,500 trade visi-tors from around 150 countries, visitornumbers were around the same level as atthe previous event. The ProSweetsCologne and ISM trade fair duo, with acombined total of 1,900 exhibiting com-panies presents the confectionery indus-try's entire value chain.

ProSweets Cologne 2009 in figures:A total of 307 companies from 28 coun-tries, 52 per cent of which came fromabroad, participated in ProSweetsCologne 2009, occupying a gross exhibi-tion space of 17,000 m².The participantsincluded 145 exhibitors and 4 addition-ally represented companies fromGermany as well as 154 exhibitors and 4additionally represented companies fromabroad. Including estimates for the lastday of the fair, ProSweets Cologneattracted around 14,700 trade visitorsfrom 100 countries, approximately 7,350of whom came from abroad.

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Events

From 10 - 13 March 2009, the inter-national food technology sector will

be meeting in Cologne for the fifthAnuga FoodTec, the International TradeFair for Food and Drink Technology.Anuga FoodTec offers the internationalfood business an information and pur-chasing platform that covers the entirespectrum of technology and investmentrequirements for production in all seg-ments of the food industry. More than1,100 companies from around 40 coun-tries are expected to exhibit at the fair.Anuga FoodTec is jointly organised byKoelnmesse and the GermanAgricultural Society (DLG).

'The fact that we once again have alarge number of registrations and astrong foreign presence underscoresAnuga FoodTec's importance for the

international food and drink processingindustry. The fair serves as the stage forideas and solutions for a successful pres-ent and thereby simultaneously the mostimportant showcase displaying thefuture of the sector,' explains SabineLoos, Vice President for the Technologyand Environment business unit atKoelnmesse.

There will be more than 1,100 compa-nies from around 40 countries at Anuga,with approximately half of the exhibitorscoming from abroad. The largest foreigncontingents will come from Italy, theNetherlands, France, Denmark andSwitzerland.

A number of packaging companieswill be making repeat visits such asAlpma Alpenland Maschinenbau, FujiPackaging, Ishida, Krones, Mettler-

Toledo, Multivac, Oystar, Bosch,Südpack Verpackungen and ToshibaMachine Robotics. The trade fair willoccupy 110,000 square metres of space.Three halls will be devoted to packaging.

Anuga FoodTec 2009 will offer notonly partial solutions but also integratedand flexible technology concepts forevery phase of food processing in everystage of food and drink production. Thefair will showcase process technology,packaging technology, automation, foodsafety and quality management, environ-mental technology, biotechnology, infor-mation technology, EDP, technologicalprocess materials, ingredients and servic-es. For the food processing industry, thefair provides a wealth of information onnew technologies in the areas of packag-ing, meat, fish and poultry, baked goods

Food event will have a strong packaging theme

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39CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Events

Pharmapack has a new, more spaciousvenue and the organisers are claiming asurging number of participants.

This year the event was held in theGrande Halle de la Villette, in Paris on

21 - 22 January 2009. The location hasa lot of charm unusual to such events anda capacity of 3,757 square meters thataccommodated some 193 exhibitors - athirty percent increase on last year when

135 companies exhibited. Visitors grewby even more - to 38 percent from 44countries.

Thirty percent increase for Pharmapack

and pasta, alcoholic and non-alcoholicbeverages, dairy products, general provi-sions, canned food, fruit and vegetables,delicatessen products, frozen foods andready-meals, soups and sauces, babyfood, spices, coffee, tea and tobacco.

This structure ensures that visitors willquickly be able to get a comprehensiveoverview of the entire fair in spite of thecomplexity of this tremendous range oftechnology.

New TechnologyInnovations are often the result ofworldwide research and the exploitationof international technological know-howto optimise production processes and the

use of resources.In addition to the exhibitor presenta-

tions, Anuga FoodTec will also feature asupporting programme that will provideanswers to specific questions and chal-lenges and include special shows ofinnovative concepts. Improvements andnew approaches will be highlighted notonly at the Anuga FoodTec forums butalso in special shows. The 'Robotic PackLine' show, initiated by the DLG,Koelnmesse and renowned partnersfrom the technology sector, will demon-strate safe, quick and hygienic methodsfor producing, processing and packagingfood products - all without human assis-tance, since the system is fully automat-

ed. More than 30 companies will be con-tributing their expertise to this project.

'Look ahead' is the title of a specialsustainable packaging event that will beset up in association with the Berlin-based packaging agency Berndt&PartnerPackaging Creality, one of the leadingspecialists in packaging design anddevelopment. Anuga FoodTec will alsoserve as the venue of the renownedInnoBev Global Soft Drinks Congress,the 2009 PETnology Europe Congress,conventions on quality assurance tech-nology and sustainable packaging, andthe Foodnews - Juice Tec Congress.

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40 CEE Packaging, www.ceepackaging.com Tel.: +48 22 2195466, +48 502 159080

Company profile

Today's consumers place greatemphasis on attractive packaging

and convenient storage that improvesshelf-life and reduces product spoilageand packaging waste. Packaging convert-ers need cost-effective materials and pro-duction processes that will meet thedemands of the consumer and theirimmediate customers looking for light-weight, handling-resistant packagingthat keeps food fresh without unwantedtastes or odours.

Food packaging has come a long waysince it was mainly about wrapping anyfood in the same material and selling itover the counter - today, food and con-sumer product manufacturers look forsolutions that provide superior opticalproperties, prolong shelf life and facili-tate handling and storage. Converters onthe other hand, demand cost-effectivematerials that allow downgauging andprocess enhancements while satisfyingthe market needs.

Borealis and Borouge, leadingproviders of innovative value-creatingsolutions, are at the forefront of address-ing the complex balance of needs facingpackaging converters and specifiers.Their range of enhanced Borstar low andhigh density polyethylene (PE) films forblown film extrusion provide a uniquebalance of properties that lead to a rangeof benefits for all parts of the value chaininvolved in PE film applications.

As a result, Borealis' Borstar PE filmshave become the advanced packagingmaterial of choice for many diverseapplications. They are the number onereplacement for cardboard, glass bottlesand metal cans for a wide variety ofpackaging solutions from stand-uppouches for soaps and soup to lamina-tion films for pet food and bags forfrozen vegetables. In industrial applica-tions, heavy duty PE shipping sacks,industrial shrink films and courier pack-ets are highly valued for ensuring tough,weather and handling-resistant protec-tion.

John Thompson, Marketing ManagerFilm & Fibre at Borealis comments: 'OurBorstar PE film innovations are focusedfirmly on delivering affordable, aestheti-cally- and technically-advanced, environ-mentally-friendly solutions throughreduced end-product weight andincreased production efficiency that does

Borealis and Borouge Wrap-up Blown Film Market's Needs

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Company Profile

not compromise on performance. Withthe extended Borstar PE mix, film pro-ducers have more options and greaterflexibility when selecting the best gradefor their application and process,whether mono or co-extrusion, high orlow-necked.'

Productivity Step ChangeFor the converter, extrusion output, bub-ble stability and thickness profile are keyparameters for achieving smooth, cost-efficient and trouble-free processing.

The unique performance characteris-tics of Borstar grades allow increasedoutput of up to 35 percent at a lower cost

and over a shorter time period. FB4230and FB4370 are bimodal linear low den-sity PE grades (LLDPE) grades specifi-cally designed for improved output andimproved extrusion properties, resultingin reduced pressure and lower powerconsumption. Like FB2310 and FB2230they deliver stable film bubble behaviour

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Company Profile

and high stiffness even using thin filmlayers. This enables high speed conver-sion of consistent quality films withoutline interruptions.

New Quality StandardsBorstar grades set new standards inpackaging integrity and aesthetics. Theirability to improve sealing strength andincrease tear and puncture resistancemakes packaging more durable and bet-ter able to protect contents. From adesign perspective, the smooth, matt sur-face achieved with grades like FB2310and FB2230 also open up more versatiledesign and print options to improveoverall aesthetics.

Borstar grades are also available forparticularly challenging environments.These include as an example FB4370G,FB1350G and FB3450 for higher stiff-ness and toughness for geomembranes orindustrial packaging, FB2310 for heavy-duty sacking and FB2230 for extremecold conditions.

Less Material - Lighter WeightBorealis' Borstar technology is known tofacilitate a 25 percent reduction in pack-aging weight compared to other plasticmaterials, with superior performanceavailable using less raw material.

A step change in the Heavy DutyShipping Sacks area has been successful-ly achieved by reducing material usage byup to 50 percent using Borstar enhancedpolyethylene film together with MDOtechnology. The combination of excel-lent film strength, stiffness and impactresistance ensures outstanding perform-ance using less material at a lower over-all cost.

Downgauging is a key influencer inother areas too. The development of PEpouches for refillable bottles has reducedby 70 percent the amount of materialused for detergent packaging since theearly 1990s

Polypropylene for high clarityFor those applications where high clarityand excellent sealing performance arekey, Borealis has developed a range ofhighly transparent PP blown films forfood packaging. The unique propertiesof Borealis' Borclear grades create pack-aging characterised by brilliant clarity,outstanding sealing performance, high

stiffness that prevents ripping andreduces material volumes, and goodprintability for even-more attractivelypackaged fresh bread or salads.Converters and extruders can reduce

material volumes, lower costs and deliverthe environmental benefits of less wasteand less energy throughout the valuechain.

Page 43: Packaging

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Page 44: Packaging