John Penhallow07.20.22
Germany is the industrial powerhouse of Europe, and for the German label and packaging sectors, things are not looking too bright. The latest business climate poll by the Institut für Wirtschaftsforschung shows present domestic sales as satisfactory but a continuing decline in business confidence for the coming months. Predictably, the war in Ukraine, rising energy costs and lengthening delivery delays are managers’ main worries. Pretty much the same problems are keeping other European managers awake at night, except that Germany is particularly dependent on natural gas supplies from Russia. An industry survey just recently carried out by trade association Die Papierindustrie predicts that if, as threatened, gas supplies are reduced to 30% of their normal volume, paper and packaging output from German industry will crash by an ear-splitting 60%.
Latest success has been the installation of a Landa S10 Nanographic printing press for digitally printed cartons at Essentra’s plant in Bradford, UK. Andrew Hopkins, Essentra Packaging GM for the UK and Ireland, says, “At Essentra, we’ve never been afraid to break new ground and find innovative ways to add value for our customers.”
The Landa press, the first of its kind in Britain, will be used to print packaging for the healthcare and beauty sectors.
Another “first” for England comes with news from Mercian Labels, which has installed an L350 digital label press from Screen, the first of its kind on that side of the English Channel. Mercian, with 65 employees, will use the new press to replace two older toner-based lines.
“We also plan to switch some shorter run jobs away from flexo and onto the new Screen press,” says Mercian CEO Adrian Steele.
This has certainly hit producers like Mondi. Mondi’s operations in Russia represented 12% of its revenue and generated 20% of its underlying earnings over the last three years. It has operated in Russia for over 22 years, and its Russian investments had a net asset value of nearly €700 million. But last month the group announced that it would “pull the plug” on all its Russian business. In present circumstances, that looks easier said than done. Mondi joins the long list of Western companies (Coca-Cola, McDonald’s, Ikea…) all desperate to sell up and get out.
Avery Dennison has no installations in Russia (but has a long-standing cooperation with its Russian partner Artmark). It says it is “unwinding its existing contracts.”
Toronto-based CCL is a 50% shareholder in CCL-Kontur, whose plant near Moscow is one of the biggest label converters in Russia. The Russian operation is still running under the management of the Azerbaijani entrepreneur who owns the other half. The plant is still operating, but CCL has said it will “suspend future financial support” for its investment in Russia.
Founded in 2014 and specializing in short-run printing, the company employed 35 people, before the war. It is equipped to produce labels and packaging with digital embellishment services. Its recently installed machinery includes a Konica Minolta AccurioPress for commercial printing, an AccurioLabel narrow web press for labels, and a JETvarnish 3DS unit for digital spot varnishing and foiling.
The planned Packaging Waste Directive is just one example. It is working its way through the labyrinthine committees of Brussels, with a view to harmonizing waste packaging rules across the 27 countries of the EU. The latest twist is that it may introduce a list of materials to be banned from all packaging.
To quote the Commission’s Maja Desgrées du Lôu, speaking at the recent FINAT meeting in Italy, “The Impact Assessment of the proposed measures was not approved by the European Commission’s Regulatory Scrutiny Board, which will result in a delay in the presentation of the legal text.”
That, at any rate, should give us a breathing space.
With 600 employees and annual sales of €135 million, this family-owned business sees its future mainly in flexo technology, according to Antonio Bartesaghi, managing director. This has not stopped the company from developing close business relations with fellow-Italian Durst, which provides the digital inkjet know-how for Omet’s hybrid presses.
“Although digital printing technology involves hidden costs, it will always be a valid option,” says Bartesaghi. “But flexo is getting ever closer to digital, even for shorter runs.”
Nothing like a Dane?
Europe’s open borders offer massive opportunities for partnerships of all kinds, but curiously an awful lot of cooperation seems to take place within one country. Uffe Nielsen is CEO of Danish press manufacturer Grafisk Maskinfabrik (GM). When GM needed finance to expand, it turned to Dansk Ejerkapital. And when it needed a supplier of corona units the company looked no further than Vetaphone, located just down the road. As Nielsen says, “We are a global company, but there is something of a Danish hub in manufacturing, which from a country of only five million people makes us rather special.”England invests
Remember Benny Landa? Since selling out his digital press business to Hewlett Packard back in 2002, he and his team have been working to perfect his Nanographic technology. It was launched with a massive flourish at drupa 2012, but even its ebullient inventor has to admit that it’s had a few ups and downs ever since.Latest success has been the installation of a Landa S10 Nanographic printing press for digitally printed cartons at Essentra’s plant in Bradford, UK. Andrew Hopkins, Essentra Packaging GM for the UK and Ireland, says, “At Essentra, we’ve never been afraid to break new ground and find innovative ways to add value for our customers.”
The Landa press, the first of its kind in Britain, will be used to print packaging for the healthcare and beauty sectors.
Another “first” for England comes with news from Mercian Labels, which has installed an L350 digital label press from Screen, the first of its kind on that side of the English Channel. Mercian, with 65 employees, will use the new press to replace two older toner-based lines.
“We also plan to switch some shorter run jobs away from flexo and onto the new Screen press,” says Mercian CEO Adrian Steele.
Ruble trouble
Until February of this year, the word sanctions was rarely if ever used in the paper and packaging business. Times change, and from early April the European Union has banned both imports and exports of most kinds of pulp and paper products to or from Russia. Contracts signed before April 8 are exempt from the ban.This has certainly hit producers like Mondi. Mondi’s operations in Russia represented 12% of its revenue and generated 20% of its underlying earnings over the last three years. It has operated in Russia for over 22 years, and its Russian investments had a net asset value of nearly €700 million. But last month the group announced that it would “pull the plug” on all its Russian business. In present circumstances, that looks easier said than done. Mondi joins the long list of Western companies (Coca-Cola, McDonald’s, Ikea…) all desperate to sell up and get out.
Avery Dennison has no installations in Russia (but has a long-standing cooperation with its Russian partner Artmark). It says it is “unwinding its existing contracts.”
Toronto-based CCL is a 50% shareholder in CCL-Kontur, whose plant near Moscow is one of the biggest label converters in Russia. The Russian operation is still running under the management of the Azerbaijani entrepreneur who owns the other half. The plant is still operating, but CCL has said it will “suspend future financial support” for its investment in Russia.
News from the Eastern Front
Viewed from North America, or even from your correspondent’s home in France, Russia’s invasion of Ukraine can seem remote. Less so from Odessa, Ukraine’s last remaining port on the Black Sea. This is the city where label and packaging converter Tipografia New Media is struggling to survive.Founded in 2014 and specializing in short-run printing, the company employed 35 people, before the war. It is equipped to produce labels and packaging with digital embellishment services. Its recently installed machinery includes a Konica Minolta AccurioPress for commercial printing, an AccurioLabel narrow web press for labels, and a JETvarnish 3DS unit for digital spot varnishing and foiling.
EU Packaging Waste Directive
Documents put out by the European Union are generally about as appetizing as over-boiled cabbage. But whether we like it or not, they touch every aspect of Europe’s industries and commerce.The planned Packaging Waste Directive is just one example. It is working its way through the labyrinthine committees of Brussels, with a view to harmonizing waste packaging rules across the 27 countries of the EU. The latest twist is that it may introduce a list of materials to be banned from all packaging.
To quote the Commission’s Maja Desgrées du Lôu, speaking at the recent FINAT meeting in Italy, “The Impact Assessment of the proposed measures was not approved by the European Commission’s Regulatory Scrutiny Board, which will result in a delay in the presentation of the legal text.”
That, at any rate, should give us a breathing space.
Italian overture
On June 24, Omet officially opened its Innovation Park, adjacent to its new headquarters building in Molteno. The Italian press manufacturer now has all its label-related production under one roof, which will boost its productivity. 150 guests attended the opening ceremony, which also included the unveiling of Omet’s latest press, the K-Flex.With 600 employees and annual sales of €135 million, this family-owned business sees its future mainly in flexo technology, according to Antonio Bartesaghi, managing director. This has not stopped the company from developing close business relations with fellow-Italian Durst, which provides the digital inkjet know-how for Omet’s hybrid presses.
“Although digital printing technology involves hidden costs, it will always be a valid option,” says Bartesaghi. “But flexo is getting ever closer to digital, even for shorter runs.”