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Converting Industry News

Drivers for Pharma Packaging

CLEVELAND, OH — Demand for pharmaceutical packaging products in the US (including Puerto Rico) is expected to increase 7.0% annually to more than $11 billion in 2010. This is the finding of a new study from The Freedonia Group.

The strongest drivers for this growth will be new regulations and standards addressing issues that include patient drug compliance, drug dispensing errors, and drug counterfeiting/drug diversion. The study predicts the increased focus on these issues will expand growth opportunities for high value-added containers, closures, and accessories, especially blister packs, tamper-evident closures, and RFID labels.

Demand for primary pharmaceutical containers will increase 8.0% annually through 2010. Prefillable inhalers and prefillable syringes will generate the fastest growth opportunities among all pharmaceutical packaging products based on safety and performance advantages in drug delivery.

Pharmaceutical blister packaging is expected to show strong gains in demand and to maintain the largest share of revenue based on its adaptability to unit dose, clinical trial, sample, compliance, institutional, and OTC container formats.

Demand for pharmaceutical packaging accessories will reach $2.3 billion in 2010, says the study. This is up 5.0% annually from 2005. RFID bar coded labels and accessories will post the fastest gains, benefiting from stricter government and industry standards aimed at preventing drug counterfeiting and drug diversion.

Another market seen as increasing is that for child-resistant, senior-friendly, and dispensing closures. This will be in conjunction with the trend for pharmaceutical manufacturers to adapt medication to high value-added containers and delivery systems.

For more information on Pharmaceutical Packaging, contact Freedonia at 440/646-0484, or visit www.freedoniagroup.com.

US Pharmaceutical Packaging Demand
(million dollars)
% Annual Growth
Item 2000 2005 2010 5/00 10/05
Total Demand 5,470 7,870 11,050 7.5 7.0
Blister Packaging 975 1,600 2,400 10.4 8.4
Plastic Bottles 975 1,475 2,185 8.6 8.2
Other Primary Containers 1,420 2,025 2,915 7.4 7.6
Secondary Containers 750 970 1,250 5.3 5.2
Packaging Accessories 1,350 1,800 2,300 5.9 5.0
©2006 by The Freedonia Group

Reynolds Now Part of ITOCHU

GREENVILLE, SC — The Reynolds Co., a family-held manufacturer of adhesives and coatings, has agreed in principal to sell its business to ITOCHU Intl., New York, NY. Terms of the sale were not disclosed.

Reynolds will continue to operate as a separate company within the ITOCHU Group, where it will merge its business with Helmitin Adhesives, which has operations in Toronto, ON, Canada, and Olive Branch, MS.

ITOCHU, headquartered in Japan, is a general trading company that posted more than $18 billion in revenues in 2005.

Corrugated Plant Injuries Down

ELK GROVE VILLAGE, IL — There has been a “dramatic” decrease in recordable incidences of occupational injuries and illnesses in corrugated plants, according to a 2005 report from the Fibre Box Assn. (FBA) and the Assn. of Independent Corrugated Converters (AICC), Alexandria, VA.

The report analyzes 651 plants (462 corrugators and 189 sheet plants) and reports that while the number of hours worked increased from 2004 to 2005, the incidence rate declined. Participating locations did not experience any job-related fatalities in 2005.

FBA and AICC attribute this good news to continued monitoring and implementation of effective procedures to ensure a safe work environment.

For more information call Brian O'Banion at 847/364-9600.

DuPont Has New Security Focus

WILMINGTON, DE — DuPont Displays reports the formation of DuPont Authentication to provide comprehensive brand authentication and security solutions to customers worldwide.

The new business unit brings together the former DuPont Authentication Systems (DAS) and DuPont Security and Solutions (DS&S).

“By bringing together all of our capabilities, we can develop next-generation products more quickly and make doing business with DuPont easier,” says Peter Compo, managing director, DuPont Displays and Authentication.

At the core of the group's offerings are Izon authentication labels that form deep, 3D overt images; Color-Spectra Film optical coding system for both visible and machine-readable product authentication; and Bio-Molecular marker technologies developed by identif GmbH, a synthetic DNA-based security feature that enables machine-readable authentication.

Mamata Shows its Range

MONTGOMERY, IL — Mamata USA greeted visitors at its 5,000-sq-ft Montgomery facility from June 15-June 29 to view the company's range of servo-driven plastic pouch- and bagmaking equipment.

Included were the Vega W-800 and Vega W-800 Plus wicketers featuring mechanical outputs to 350 cycles/min; the Vega Universal bagmaker (shown here) for production of zipper bags; the Vega 610 three-side-seal pouchmaker; and the high-speed, side-seal bagmaker said to run lower-thickness films at high speeds with excellent stacking.

Headquartered in Gujarat, India, Mamata reports it has more than 2,000 installations worldwide, including 25 machines installed in the US in the past 30 months.

Biocide Use Grows Globally

DUBLIN, IRELAND — A study on biocides in plastics indicates global consumption was $145 million at active manufacture level in 2005, representing 40% growth since 1995. The is the conclusion of a new report by Research and Markets.

This performance reflects not only end-industry growth and regulatory and technological changes but also the growing use of biocides as hygiene aids. According to the study, the market for biocides in plastics will continue to grow, driven by the usage in biocides in an increased number of polymer types and the replacement of traditional biocides by more expensive and environmentally friendly biocides.

Growth in North America has slowed down, says the study, though total market value is up. Competition for market share among leaders has accelerated, and China, Eastern Europe, India, and South America continue to offer growth opportunities as per capita income rises and human health issues become more important.

Basic biocide producers will rely more on specialty niches, e.g., the hygiene sector, for growth.

For a complete index to the study and other information, visit www.researchandmarkets.com

Adding SE Asian Presence

ALZENAU, GERMANY — Applied Films has expanded its sales capacity with an office in Indonesia, located in the German Centre in Bumi Serpong Damai, 30 km west of Jakarta.

The office is headed by Ryan Kurniawan, president AF SEA, who has served as a sales representative for Applied Films' Solar/Web Div. for more than 11 years.

The company reports this office positions it to better address the increasing demand for web, solar, and photovoltaic applications in Southeast Asia. The office will provide a single, full-service point of contact for all local Applied Films customers in Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam, and other Southeast Asian countries.

Proofers are Certified by Opaltone

Latran Technologies and Opaltone announce that Latran Prediction digital halftone proofers have been Opaltone Certified. This means printers, prepress suppliers, and designers that wish to deliver Opaltone Certified contract proofs now can do so with the Latran Prediction.

GMF Flexo Prepress, located in Mississauga, ON, Canada, specializes in communications and graphic prepress services from design through flexo color separation and plates.

“We've been working with Opaltone for over four years now,” says Bob McVey, GMF Flexo's technology manager. “We're thrilled with the results the Latran Prediction delivers. It follows the same practice that GMF applies to all our proofing needs. The inks' hue, density, and dot gain must be simulated accurately — and consistently — from proof to press on the actual substrate. Our customers remark how well the Latran has matched proof to press. It's also great to be able to ablate real pigments, which don't fade like dyes, on the actual substrate without having to go to an intermediate transfer sheet.”

McVey adds, “The Latran system is also extremely cost-effective and productive. Its large image area [22 × 29 in.] with the ability the gang up jobs offers great versatility, and the ability to reuse ink sheets is very efficient.”

Supplier Information:

Latran Technologies — PFFC-ASAP 440. www.latran.com

Opaltone — PFFC-AAP 441. www.opaltone.com

Instrument Companies Joined

WALTHAM, MA — Thermo Electron Corp., a supplier of analytical instruments, reports the acquisition of EGS Gauging, Wilmington, MA. EGS is a manufacturer of measurement and control instruments for web process applications in the plastics processing and converting industries. Terms were not disclosed.

Marijn E. Dekkers, president and CEO of Thermo Electron, says, “We are very excited to welcome EGS Gauging to Thermo. The addition…will allow [us] to offer an even more comprehensive range of solutions for our customers.”

The PLACE Celebrates 60

NORCROSS, GA — The PLACE Div. of TAPPI is celebrating the 60th anniversary of its first conference. Called the Paper Synthetics Div. in 1946, the group met back then in Syracuse, NY. Over the years the name changed to the Polymers, Laminations, and Coatings Div. before becoming the PLACE.

AAA Buys S & E

ARLINGTON HTS, IL — AAA Press Intl. announces the acquisition of S & E Engineering, a manufacturer of roll lifts, add-on varnish units, and pallet tilters for almost two decades. AAA is a full-service supplier to the flexographic printing industry.

CMD Adds Proven Designs

Appleton, WI — CMD Corp. has completed the acquisition of all assets of Proven Designs Inc. (PDI), a Macedon, NY, designer and manufacturer of custom pre-made pouch equipment.

Says CMD president John Schmidt, “We intend to fully support PDI's legacy of innovation and will utilize CMD engineering resources and the CMD Technology to provide customized solutions for the marketplace.”

Extrusion Equipment Agreement

DAMAN, INDIA — Kabra Extrusiontechnik (KET), a manufacturer and exporter of plastic extrusion machinery, now will offer equity stakes to Battenfeld Extrusionstechnik, Bad Oeynhausen, Germany, and American Maplan Corp., McPherson, KS. Both Battenfeld and American Maplan are part of the SMS Plastics Technology Group.

KET will have access to advanced plastics extrusion technology of the two companies. This will include some new extrusion machinery that will be introduced into India.

In addition, complete support of manufacturing and processing technology will be available.

Coating Company Formed

NEW BEDFORD, MA — Private equity firm The Watermill Group of Waltham, MA, reports the formation of MultiLayer Coating Technologies (MCT) in conjunction with its acquisition of the technology and assets of Polaroid's contract coating business.

MCT will be responsible for existing third-party contract manufacturing relationships of Polaroid New Bedford, as well as continuing to serve as a supplier for a crucial part of Polaroid's supply chain.

MCT will absorb current relationships in a number of industries, including medical, electronics, display, imaging, security, defense, industrial nanotechnology, and other high-tech areas. In addition, the company plans to pursue new customers.

The acquisition includes Polaroid's manufacturing facilities located in New Bedford plus Polaroid's coating methods and applicator fabrication technology and equipment.

Sheeting Operation Acquisition

BEDFORDSHIRE, UK — Newly created company Apollo Sheeters Ltd. has acquired from Bobst Group the sheeting machinery business previously operated by Atlas Converting Equipment under the Apollo trade name. Apollo Sheeters will continue production at the same location under the management of Michael Wilkinson.

Both Bobst Group and Apollo agree to handle the acquisition and transfer of responsibility in such a way as to ensure there is no disruption to existing or future customers.

Valco Acquires Melton

CINCINNATI, OH — Valco Cincinnati reports the acquisition of Melton S.L., an international manufacturer of compatible hot melt equipment based in Navarra, Spain.

“This acquisition…significantly extends our distribution and service network to better serve the needs of a demanding market,” says Paul Chambers, VP of sales and marketing for Valco.

New Structure for Agfa-Gevaert

MORTSEL, BELGIUM — Agfa-Gevaert will split the group into three independent businesses: Graphics, HealthCare, and Materials. The Materials business will group all of the film manufacturing activities with the niche products of Specialty Products and will be positioned as an independent supplier of film and related products.

Reportedly, the new structure will give each business the maximum flexibility to implement its growth strategy and to further reduce costs in line with changing market circumstances. Agfa-Gevaert intends to achieve annual cost savings of approximately e250 million by 2008.

The appropriate structure for each business group will be defined by early 2007, and Agfa-Gevaert NV will operate as the holding company for the three independent businesses.

High Praise for Cast Film Line

A nine-layer, 106-in. Filmex cast film line from Windmoeller & Hoelscher is hard at work in the Yonkers, NY, facility of Excelsior Packaging Group. The recently installed line “represents the pinnacle in cast film extrusion technology,” according to Ron Shemesh, CEO of Excelsior.

He adds, “This line can extrude monumental rates of output while maintaining world-class gauge control with superior optics and functionality.”

The line, which is equipped with the Filmatic M winder, is the first W&H new-generation cast film line to be installed in North America. With additional die feed block technology, it is capable of extruding up to 28 layers for special applications.

Supplier Information:

Windmoeller & Hoelscher — PFFC-ASAP 442. www.whcorp.com

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