10.14.22
The labeling industry is about to deal with yet another rapid change that will require adjustment. What’s the crisis this time? Another massive paper release liner shortage. The situation has become so disruptive that Avery Dennison recently referred to the current environment as “inflationary and highly volatile.”
According to Kevin Clunie, VP of sales and marketing at Mactac, 87% of the release liner consumption in North America is paper-based. However, continued supply chain shortages have created an unstable supply and demand environment for paper products.
“The industry has been growing, but the paper supply has been slacking,” states Clunie, referring to the growing demand for release liner in North America, which was up 3.5% in 2021.
The most recent causality of this is the shortage of paper-based liners. With few solutions available, polyethylene terephthalate (PET) quickly became the material of choice as a paper liner replacement. But why has it become the go-to product? It’s because PET is the closest alternative to paper release liner. Before the liner shortage began, PET was promoted as a sustainable option for companies looking to reduce their carbon footprint.
Meanwhile, Multi-Color Corporation (MCC), one of the largest label companies in the world, has announced the signing of an agreement for the acquisition of Flexcoat’s label and lamination operations in Brazil.
The closing of this transaction is expected within 30 days. Upon closing, Flexcoat’s facility in Brazil will be part of Multi-Color Corporation, giving MCC a physical footprint in Brazil.
MCC plans to further invest in expanding product offerings in Brazil. The acquisition will give Flexcoat’s customers access to expanded product offerings and a comprehensive range of the latest label technologies.
Here are the highest-trafficked news items for the week ending on October 14:
1. Exploring the unavoidable shift from paper to PET liner
2. MCC acquires Flexcoat's label operations in Brazil
3. Domino releases ‘Supply Chain in Crisis’ video
4. OMNI Systems moves into prime labels with Martin Automatic, Mark Andy
5. Labelink acquires Pro Label
According to Kevin Clunie, VP of sales and marketing at Mactac, 87% of the release liner consumption in North America is paper-based. However, continued supply chain shortages have created an unstable supply and demand environment for paper products.
“The industry has been growing, but the paper supply has been slacking,” states Clunie, referring to the growing demand for release liner in North America, which was up 3.5% in 2021.
The most recent causality of this is the shortage of paper-based liners. With few solutions available, polyethylene terephthalate (PET) quickly became the material of choice as a paper liner replacement. But why has it become the go-to product? It’s because PET is the closest alternative to paper release liner. Before the liner shortage began, PET was promoted as a sustainable option for companies looking to reduce their carbon footprint.
Meanwhile, Multi-Color Corporation (MCC), one of the largest label companies in the world, has announced the signing of an agreement for the acquisition of Flexcoat’s label and lamination operations in Brazil.
The closing of this transaction is expected within 30 days. Upon closing, Flexcoat’s facility in Brazil will be part of Multi-Color Corporation, giving MCC a physical footprint in Brazil.
MCC plans to further invest in expanding product offerings in Brazil. The acquisition will give Flexcoat’s customers access to expanded product offerings and a comprehensive range of the latest label technologies.
Here are the highest-trafficked news items for the week ending on October 14:
1. Exploring the unavoidable shift from paper to PET liner
2. MCC acquires Flexcoat's label operations in Brazil
3. Domino releases ‘Supply Chain in Crisis’ video
4. OMNI Systems moves into prime labels with Martin Automatic, Mark Andy
5. Labelink acquires Pro Label