Part 3 of 3

By Brendan O'Neill, Editor-in-Chief, CMM Online

[Folding Carton continued]
      "Faced with the higher costs due to energy and petroleum based materials, the United States converter is now investing more time and money in seeking technologies that will improve productivity and quality at the same time that they are seeking substitutes for the petroleum based products and energy consuming technology. In many cases it is a tradeoff from one source of energy to another with considerably less consumption. In other cases, it is substituting materials, inks and solvents that are based on bio-technology rather than oil derivatives," says Shapiro.
      He adds that new materials like biofilms and (the return of) cellulose are finally becoming viable alternatives to petroleum-based substrates. Inks and solvents are also receiving more attention.      "Radiation curable inks are gaining ground with printers and acceptance by food packagers. Both UV and EB inks eliminate the use of petroleum-based solvents and the need for drying systems that consume natural gas. They also eliminate the need for add-on control equipment such as incinerators and solvent recovery systems that consume considerable energy," says Shapiro.
      "The same concern enters into decisions to buy or modify printing and laminating equipment. A critical concern for ROI is the reduction in energy needed and waste generated, both of which affect the profit margins," he adds.

Pasperboard
      Chris McLoone writes on www.packageprinting.com that the North American paperboard market is being severely impacted by globalization as U.S. mills have lost their position to the Far East, resulting in many mills shutting down during the past 10 years.
      McLoone writes: "According to Michael Nowak, president of Coating Excellence International, paper growth has gone to the Far East. China and India are the fastest growing markets for paper demand. China is expected to have the most advanced paper making machinery, with paper mills producing 100 million tons and exporting 50-60 percent of their total output. Nowak stated that the U.S. is set to see massive imports, with the North American paper market becoming less competitive. 'U.S. converters will need to start looking at foreign suppliers to stay competitive,' he says."
      McLoone's story continues: "The folding carton market has posted a 1 to 2 percent annual growth during the last 20 years, according to Tony Corsillo, manager, new business development, folding cartons, Cascades Boxboard Group. 'I think folding cartons have always [experienced] stable growth. The entire industry has only had a 1 to 2 percent [annual] growth over the last 20 years if memory serves me,' he says. 'I don't think that has changed nor will it change in the years ahead, not by a significant amount.' Corsillo points to the dips and dives that have always existed in the market, and that any dip has never been more than a percentage point."
      Ben Markens, managing partner of The Markens Group said in the PackagePrinting story that growth in the folding carton market is spotty. According to Markens, consolidation isn't going to go away. Interestingly, he sees the companies that "nibble around the edges" as some of the more successful.
      "Ten years ago, the top 10 players had [about] 40 percent of the market. Now, five players have the top 60 percent of the market," he told PackagePrinting. "So the large companies have become a significantly larger portion of the market. They have a fair amount of sway. That's why the people who are successful are the [ones] who are nibbling around the edges. You don't want to tug on Superman's cape."

Special thanks to:

• Converting magazine, www.convertingmagazine.com


• Flexible Packaging Association, www.flexpack.org


• Fred Shapiro, www.cmmonlineportal.com


• PackagePrinting magazine, www.packageprinting.com


• PFFC magazine, www.pffc-online.com

Written for our media partner, Converter magazine in the United Kingdom

Fri Jul 25 14:01:00 CDT 2008