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Avery Dennison CEO sees change in labelstock market

September 26, 2007

Avery Dennison, one of the major labelstock suppliers, has registered a weakening of market conditions for roll materials in US and Western Europe quite recently.

Avery Dennison, one of the major labelstock suppliers, has registered a weakening of market conditions for roll materials in US and Western Europe quite recently. In an exclusive interview with L&NW at Labelexpo Europe, CEO Dean Scarborough said that one of the causes is a shift in PS consumption patterns in the United States.

“The US is not the most robust market today,” Scarborough said. “In many cases, the converter’s customer is ordering materials for two days, for the short term, and the converter says he sees no forward window. In Europe, our business has grown year after year in the high single digits, but this summer it just dropped, because customers have pulled back.”

On the topic of environmental sustainability, Scarborough said that the industry has gradually been pursuing a policy of materials reduction through a downgauging of papers and films, and he anticipates that thin films could gain acceptance as a replacement for conventional paper release liners.

Avery Dennison is at work on a program to educate converters about sustainability, Scarborough said. “I think that the green challenge is a good thing for all of us.”
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