FMN | December 24th, 2018

FMN | December 24th, 2018

An N.V. Publication FLEX

December 24, 2018

Vol. 20 No. 26

Market News

®

Serving The Flexographic Printing Industry In Print and Online at www.nvpublications.com

Flexo Innovation Ushers In New Year by Greg Kishbaugh

SGP Promotes Print Sustainability The Sustainable Green Printing Partnership (SGP) has launched its sister company SGP Foundation, Inc. (SGPF), a 501(c)(3) nonprofit educa- tional organization. The mission of the SGPF is to pro- vide education and awareness on the best practices associated with sustainability in the printing indus- try, including printers, suppliers and customers/print buyers. SGPF key focus includes: • Promote sustainable & techno- logical innovation, • Advocacy for sustainable supply chain, • Forum for sustainability discus- sions, and • Educate public on the sustain- ability of print. SGPF will be chaired by long-time supporter of SGP, Jonathan Graham of TE Connectivity. “Companies, es- pecially in the retail space, require printers to be part of a more sustain- able supply chain,” Graham said. “SGPF plans to provide educational programs and information that will

AA s the flexo industry moves into another new year, full of promise, Flexo Market News concludes its overview of 2018, focusing on the last half of the year. Filled with an abun- dance of M&A activity and equipment upgrades, 2018 paved the way for flexo’s increasing market share in packaging and converting; 2019 promises another year of strong returns. TLMI leadership and staff joined nearly a dozen other spon-

sor ing organizations on Capitol Hill at the annual Print and Packaging Legisla- tive Summit. The Summit marked a milestone for the organization, as it was the first formal event on Capitol Hill for TLMI. This year’s event saw the Summit’s highest attendance to date, with more than a 100 par- ticipants engaged on impor- tant legislative and regulatory issues. Leader- ship from the Printing In- dustries of America (PIA), Association for Print Tech- nologies (formerly NPES) and the Specialty Graphic

(Cont’d on Page 5)

Photo courtesy of Flint Group

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Imaging Association (SGIA) were just a few of the allied organi- zations TLMI spent time with discussing legislative, regulatory and industry initiatives. Fortis Solutions Group , Virginia Beach, Virginia, a portfolio company of Main Post Partners, acquired Lewis Label Products

(Cont’d on Page 6)

Greif Acquires Caraustar Industries

Greif, Inc.,Austell, Georgia, has entered into a defini- tive agreement to acquire Caraustar Industries, Inc., a recycled paperboard and packaging solutions compa- ny, from an affiliate of H.I.G. Capital, in a cash transac- tion valued at $1.8 billion. The transaction is expected to close during the first quarter of calendar year 2019, subject to customary closing conditions, including regulatory clearances. Caraustar produces uncoated recycled paperboard (URB) and coated recycled paperboard (CRB), with a variety of applications that include tubes and cores and a diverse mix of specialty products. Caraustar’s footprint includes more than 80 operating facilities throughout the United States. For the last twelve months ended September 30, 2018 Caraustar generated sales of $1.4 billion and EBITDA of $174 million. Based on trailing twelve month actual volume, adjusted for current market conditions as of September 30, 2018, the run-rate EBITDA is $220 million. The percentage of Greif’s sales from paper packaging will expand to approximately half of total consolidated revenues compared to 23 percent for fiscal 2018.

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Flexo Market News December 24, 2018 3

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Flexible Packaging Market Expected To Reach $342B The global flexible packaging market is expected to reach $342.85 billion by the end of the forecast peri- od at Compound Annual Growth Rate of 5.92 per- cent, according to a new repor t from Market Research Future. The flexible packaging market is compelled by sev- eral factors such as increased consumption of packed and wrapped foods & beverages. Moreover, environ- mental benefits of flexible packaging are also stimu- lating the growth of the market. On the basis of the regions, the global flexible pack- aging market has been segmented into North Ameri- ca, Europe,Asia Pacific, and Rest of theWorld (RoW). Asia Pacific region accounted for the 29.41 percent share of the market in 2016, in terms of value. It is ex- pected to grow at a CAGR of 6.18 percent during the forecast period. Exponential growth in the packaging industry in Asia Pacific region is the key factor fuel- ing the growth of the market. Increasing numbers of supermarkets in the region will also likely to boost the demand for flexible packaging products. China, India, Japan, and Thailand are the main contributors to the Asia Pacific market. China accounts for the largest market share in the region due to rapid urban- ization and industrial development. North America is another major flexible packaging market in the globe. Expansion in confectionery, dairy, and medical industry, technological advance- ment in barrier materials coupled with rising retail business, stand up pouches usage are likely to trigger the industrial growth for North America. The pouches segment accounted for the largest, 36.46 percent share of the market in 2016, with a mar- ket value of $85.45 billion and is projected to grow at the highest CAGR of 6.95 percent during the forecast period. It is most widely used flexible packaging prod- uct. It is available in different types such as stand up pouches, retort pouches, and pillow pouches. The stand-up pouches are displaying high growth rate due to high barrier properties against moisture and oxy- gen coupled with low material usage and cost-effec- tive properties. Bags segment was the second-largest market valued at USD 75.79 billion in 2016. The flexography segment accounted for the largest market share of 45.54 percent in 2016, with a market value of $10.6.72 billion and is projected to grow at the highest CAGR of 5.59 percent. The food & beverages segment dominates the glob- al f lexible packaging market with 38.16 percent share in 2016, in terms of value. It is expected to grow at a CAGR of 6.12 percent.

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Get your company in front of the flexo industry’s key decisionmakers. Flexo Market News ’ readership is comprised of Presidents, Owners, VPs and General Managers of flexo operations — the key people who make decisions on equipment purchases. An ad in Flexo Market News is a direct sales meeting with thousands of the industry’s best thinkers and most influental leaders. Reach the Decisionmakers

4 December 24, 2018 Flexo Market News

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gies R&D for Designtex and incoming SGP Chair, led several discussions including a case study of the SGP Sustainability Tracker and the recycling efforts at De- signtex. In addition to presenting the benefits of using the SGP Impact Tracker, Glynn shared how SGP Commu- nity Day 2017 in Oregon inspired the Portland, Maine- based Designtex to reexamine its recycling efforts. Before SGP Community Day, new SGP Resource Partner Cincinnati State College hosted the SGP Ex- ecutive Committee for an discussion with students studying graphic arts, print and production. The school joins Appalachian State University and Rochester Institute of Technology along with associa- tions and professional organizations in the SGP Re- source Partner program. In other news, Cincinnati State has been an- nounced as the newest resource partner for The Sustainable Green Printing Partnership (SGP). The college joins a growing list of leading brands and organizations that support sustainable printing initiatives. This fall, the Cincinnati State Graphic Imaging Tech- nology program celebrates 52 years of graphic arts training.

SGP Foundation ( Cont’d from Page 1)

positively impact sustainability success with our SGP certified facilities, brands, suppliers and the printing industry as a whole.” For 2018, the 10th anniversary year of SGP, the in- troduction of SGP Foundation is a key milestone along with introduction of the SGP Impact Tracker and merger of the TLMI L.I.F.E. certification program in SGP. On other news,The SGP held its 2018 SGP Commu- nity Day in Cincinnati, Ohio, November 14. The fifth annual SGP Community Day included in-depth dis- cussions on a variety of issues and challenges facing the printing industry and the retail market along with talks on sustainability metrics, circular econo- my, green procurement and recycling. Sustainable Engine In her keynote, Building a Community: The Heart and Engine of Sustainability , Ryan Mooney-Bullock, Director of Cincinnati’s Green Umbrella Regional Sustainability Alliance, spoke about building a com- munity and included group interaction on finding commonality to develop goals. Paul Glynn, Manager of Materials Digital Technolo-

printTHINK Summit Sept. 11-13, 2019 Hyatt Regency O’Hare Rosemont, IL

Industry Events

Luxepack February 27-28, 2019 Barker Hanger Santa Monica, CA

Graph Expo 19 Sept. 22-25, 2019 Orange County Convention Center Orlando, FL

Packaging Innovations February 28-March 1, 2019

Labelexpo Europe Sept. 24-27, 2019 Brussels Expo Brussels, Belgium Print19 Oct. 3-5, 2019 McCormick Place Chicago, IL

NEC Birmingham Birmingham, UK

TLMI Converter Meeting March 10-13, 2019 Omni Grove Park Inn Asheville, NC

American Packaging Summit April 15-17, 2019 Westin LombardYorktown Center Chicago, IL FTA Annual Meeting May 6-7, 2019 Ernest N. Morial Convention Center New Orleans, LA

TLMI Annual Meeting October 27-30, 2019 Omni LaCosta Resort & Spa Carlsbad, CA TLMI Converter Meeting March 8-10, 2020 Austin,TX

Flexo Market News December 24, 2018 5

Year In Review ( Cont’d from Page 1)

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Corporation, located in Fort Worth,Texas. Lewis Label is a custom manufacturer of pressure sensitive labels, shrink sleeves and flexible packaging products, estab- lished in 1964. Some 200 guests, staff and pupils celebrated the 150th anniversary of the Koenig & Bauer on-site vo- cational school inWürzburg, Germany. Initially found- ed to train Franconian winegrowers to work in the factory, today the school is the company’s modern “talent factory”. Since its foundation on July 2, 1868, well more than 7,000 people have taken the first steps in their professional careers at the vocational school. In its anniversary year, it is responsible for the qualification of 120 apprentices. Packtime Innovations Pvt. Ltd , headquartered in New Delhi, India, has invested in an Omet XFlex X6 narrow web combination printing and converting flexo press. The equipment has been installed at its location in Pune, Maharashtra. Inovar Packaging Group , a portfolio company of AEA Investors LP, has acquired Topp Labels , Miami, Florida. Headquartered in Dallas, Texas, Inovar is a specialty converter of prime labels, shrink sleeves and flexible packaging solutions serving blue-chip customers within a diverse set of end markets, in- cluding, among others, health and personal care, sports nutrition/nutraceuticals, industrial products, pet food and supplies, and food and beverage. As an exclusive agent of Pamarco for nearly 20 years, Bingham Flexo Services again signed a multi-year agency agreement to represent Pamarco’s full line of flexo and coating products. Headquar- tered in Pamarco’s Batavia, Illinois, manufacturing fa- cility, BFS services the central United States. Labelmaster , Chicago, Illinois, installed a brand-new FA press from Nilpeter.The press offers a host of fea- tures such as clean-hand technology; vertical auto- lock system; driven chill rollers; multi-operator interface; custom-built configuration; new CLEANINKING design; multi-substrate printing; sleeve-based printing; and value-adding units ready. The Tag and Label Manufacturers Institute ’s L.I.F.E. (Label Initiative for the Environment) Certifi- cation program merged with the Sustainable Green Printing Partnership (SGP) certification program. Lollicup USA, Inc. , a beverage and disposable goods supplier and manufacturer for the food service industry, purchased a Koenig & Bauer-Flexotecni- ca EVO XG press. Lollicup has quickly expanded to encompass five locations including its current head- quarters in Chino, California, and its new 660,000- square-foot production and manufacturing plant in

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Year In Review ( Cont’d from Page 6)

Rockwall, Texas, which is currently being built. It is this new facility that operates the new Koenig & Bauer-Flexotecnica EVO XG press. Labelink , a Montreal, Canada-based label manufac- turer, acquired the assets and the business of Safety Seal Plastic Inc. , based in Guelph, Ontario, Canada. Since 2004, Labelink has completed six acquisitions. Ultimate Packaging , a UK flexible packaging man- ufacturer, invested in a new Bobst 20SIX CS print press, with further plans to invest in an additional laser perforation machine in January 2019. The new 20SIX CS 8-color press features a downstream unit for film coating with a web width of 1300mm and speed of 500 meters per minute. The press also al- lows Ultimate to print using water based inks open- ing up new markets. Graphic Packaging International , reached an agreement to acquire substantially all the assets of the foodservice business of Letica Corporation , a subsidiary of RPC Group PLC, for $95 million. Progressive Label Manufacturing , Commerce, California, installed a new Mark Andy Performance Series Press. The company is going green with the new P-5 LED/UV technology. Bertram Capital announced the completion of the sale of WH Acquisitions, Inc. , the parent company of Maxcess to Berwind Corporation. Maxcess is a glob- al manufacturer of systems and equipment for web- handling applications. This transaction represented Bertram’s 11th exit since the firm’s launch in 2006. Resource Label Group , a full-service provider of pressure sensitive label, shrink sleeve and RFID/NFC technology for the packaging industry, acquired In- genious Packaging , Toronto, Canada, a labeling so- lutions provider. AWT Labels & Packaging , Minneapolis, Minneso- ta, closed on the acquisition of Citation Clinical La- beling Systems , Hauppauge, NewYork. Overnight Labels , Deer Park, New York, a full-ser- vice, label and flexible packaging printing company, added a 13th press, a new Nilpeter FB 4200. It is an 8-color press with UV and hot air drying for UV and water-based inks.This machine can run labels, shrink sleeves and f lexible packaging, and is ONL’s 6th Nilpeter press. On the occasion of its 200th anniversary last year, KBA went back to its roots and returned to its found- ing name Koenig & Bauer as part of a global brand re- launch. In a continuation of this rebranding, the company changed the names of all of the global busi- ness units, subsidiaries, and agencies to be aligned with this new brand and to better reflect its international (Cont’d on Page 10)

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