John Penhallow07.17.23
In the good old days, long ago, when everybody minded their own business, label converters just made labels. Then gradually over the years the situation changed and all the label converters worth their salt started moving into packaging. Sachets, boxes, pouches – anything that could come off a roll was grist to their mill. This explains partly why so many label-related exhibitors were present at the Interpack show in Dusseldorf. A post-show tally shows not far short of 150,000 visitors to see the 2,800 exhibitors.
“Our objectives were handsomely exceeded,” said Bernd Jablonowski, executive director of Messe Düsseldorf. This seems to prove (to misquote Mark Twain), that the death of the big shows is exaggerated. All eyes which are not on Labelexpo Europe are now on drupa, due to open on May 28, 2024.
Environmental groups, predictably, were less optimistic. They spoke of stalling tactics by certain countries, notably Russia and Saudi Arabia, and cited procedural delays, distractions, and time-wasting discussions about unrealistic solutions. However, Marco Lambertini of the World Wildlife Fund (WWF) reckoned, “The world is one step closer to the unmissable opportunity of a global treaty to end plastic pollution.”
In the same week that the Paris congress closed, your correspondent’s local supermarket started again re-supplying plastic bags instead of paper ones. Two steps forward, one step back.
In Austria, the Sappi Gratkorn mill was temporarily shut down. The mill, which produces double and triple coated paper, as well as single-side coated paper for labels, is among the largest coated wood-free paper mills in Europe, with a capacity of 950,000 tons/year of paper and 250,000 tons/year of pulp. Due to the current market situation, the mill’s production capacity is not fully covered, and Sappi Gratkorn took temporary commercial downtime to adjust production to demand.
For its Belgian swan song, Labelexpo 2023 already has over 500 exhibitors lined up, according to the organizers. A glance at the provisional exhibitor list shows that most – if not all – of the big label machinery makers will be exhibiting. More than 50 US exhibitors are already signed up, along with over 100 from China (and none from Russia!)
Germany, as usual, is well represented but so far only painfully few French exhibitors promise to be at a show happening so close to their borders. Apart from MGI (digital label presses), and SMAG Graphique (finishing and in section systems) it would seem that no other major French equipment maker has so far signed up. It is possible that they, and other exhibitors, will reserve during the summer months. It is also possible that the Covid pandemic has encouraged some other label equipment manufacturers to explore different ways of promoting their products. France’s Codimag, for example, has just inaugurated an open house, which will last right through to September to promote its Aniflo technology (billed as: “The quality of offset, the productivity of flexo, and the flexibility of digital”).
The decision to move the 2025 label show to Barcelona was not unexpected, but may have the effect of discouraging certain traditional exhibitors and visitors. Why? Brussels, remember, is only just over one hour by train from London, Paris, and much the same from most of Northern Germany. For European visitors at least, crossing the Pyrenees is more of a geographical and cultural barrier. Louis XIV may have said, “The Pyrenees no longer exist,” but the Sun King was not running a tradeshow. Once the 2025 label show is over, it will be interesting to compare statistics 2023/2025 to see what effect, if any, this change of location has had.
Like many industrial sectors, manufacturing label machinery is becoming more and more automated. Hence the decision by Bobst to acquire 70% of Dücker Robotics, a company based in Moma, just over the Swiss/Italian border, and a specialist in the automation of packaging production lines (it has already installed 350 automated systems worldwide). Jean-Pascal Bobst, CEO of Bobst Group, explains the strategy: “In an era where converters are facing higher demands than ever due to the booming global demand and specifically in the e-commerce market, while simultaneously facing challenges in shortages of manpower, automation has never been more important for our clients. Dücker Robotics has 20 years of proven leadership in the development of robotic systems for the most sophisticated converting machines, and we are very excited to see what we can achieve together.”
A more modest acquisition was recently announced by French label converter Autajon, which acquired Swiss competitor Ronquoz Graphix. CEO Gérard Autajon did not make an announcement – he never does – but we can know the Swiss company makes mostly labels and packaging for wines – a specialty of the Autajon group. With 16 sites in France and 19 more in Germany, USA, China, South Korea and several other countries, Autajon (world sales: €600 million) is as near as France gets to a truly world-ranking label converter.
Whether the recent re-election of Mr. Erdogan will bring the country back to economic sanity is still uncertain. For Turkish businesses wanting to buy equipment from abroad, a convoluted system of capital controls makes life difficult, but not impossible, if you have the right connections. In the face of all these challenges and obstacles, a Turkish label and packaging manufacturer, Ҫiftsan Label & Packaging Company, took two top awards at the latest FINAT competition. This goes to show something. But what?
“Our objectives were handsomely exceeded,” said Bernd Jablonowski, executive director of Messe Düsseldorf. This seems to prove (to misquote Mark Twain), that the death of the big shows is exaggerated. All eyes which are not on Labelexpo Europe are now on drupa, due to open on May 28, 2024.
Plastics in Paris
A few weeks ago, and just over the road from your correspondent’s apartment, UNESCO hosted the Paris congress on reducing plastics pollution. The event did not get all the headlines it deserved, although the 175 participating countries reached a deal described as a “rough-cut draft” preparing the way for the next round, due to take place in Nairobi in November. This next stage will, if successful, enact a legally binding ban on most kinds of plastic packaging by 2025. This worthy goal seems unbelievably optimistic, but Jyoti Mathur-Fillip, executive secretary of the International Negotiating Committee on Plastics Pollution, was upbeat, saying, “It will happen, it must happen.”Environmental groups, predictably, were less optimistic. They spoke of stalling tactics by certain countries, notably Russia and Saudi Arabia, and cited procedural delays, distractions, and time-wasting discussions about unrealistic solutions. However, Marco Lambertini of the World Wildlife Fund (WWF) reckoned, “The world is one step closer to the unmissable opportunity of a global treaty to end plastic pollution.”
In the same week that the Paris congress closed, your correspondent’s local supermarket started again re-supplying plastic bags instead of paper ones. Two steps forward, one step back.
Bad news for paper makers
The monthly magazine Pap’Argus keeps an eye on European paper prices. European market pulp prices continue to fall according to its analysts, with year-on-year falls of up to 17% at the end of May 2023, and further falls are expected over the summer. For label papers, prices were stable in May, but here again the trend is downwards.In Austria, the Sappi Gratkorn mill was temporarily shut down. The mill, which produces double and triple coated paper, as well as single-side coated paper for labels, is among the largest coated wood-free paper mills in Europe, with a capacity of 950,000 tons/year of paper and 250,000 tons/year of pulp. Due to the current market situation, the mill’s production capacity is not fully covered, and Sappi Gratkorn took temporary commercial downtime to adjust production to demand.
Last Tango in Brussels
As announced by the show’s organizer Tarsus, Labelexpo Europe 2023 will be the last label show in the Belgian capital, which hosted the very first show nearly 40 years ago. Over the decades, the exhibition center has been extended and modernized, but it was built in 1936 and many things cannot be modernized in a historic building. Labelexpo 1985 was one of the first truly industrial shows to occupy the Parc des Expositions next to the Atomium, and in those days the complex, owned by the City of Brussels, was clearly not prepared for a major show with so much heavy equipment. It is widely believed that when the first show opened and all the machinery was switched on at once, all the trams in Brussels slowed down – or maybe that’s just an urban legend.For its Belgian swan song, Labelexpo 2023 already has over 500 exhibitors lined up, according to the organizers. A glance at the provisional exhibitor list shows that most – if not all – of the big label machinery makers will be exhibiting. More than 50 US exhibitors are already signed up, along with over 100 from China (and none from Russia!)
Germany, as usual, is well represented but so far only painfully few French exhibitors promise to be at a show happening so close to their borders. Apart from MGI (digital label presses), and SMAG Graphique (finishing and in section systems) it would seem that no other major French equipment maker has so far signed up. It is possible that they, and other exhibitors, will reserve during the summer months. It is also possible that the Covid pandemic has encouraged some other label equipment manufacturers to explore different ways of promoting their products. France’s Codimag, for example, has just inaugurated an open house, which will last right through to September to promote its Aniflo technology (billed as: “The quality of offset, the productivity of flexo, and the flexibility of digital”).
The decision to move the 2025 label show to Barcelona was not unexpected, but may have the effect of discouraging certain traditional exhibitors and visitors. Why? Brussels, remember, is only just over one hour by train from London, Paris, and much the same from most of Northern Germany. For European visitors at least, crossing the Pyrenees is more of a geographical and cultural barrier. Louis XIV may have said, “The Pyrenees no longer exist,” but the Sun King was not running a tradeshow. Once the 2025 label show is over, it will be interesting to compare statistics 2023/2025 to see what effect, if any, this change of location has had.
Some M&A
Clearly the Pyrenees hold no fears for Belgian label converter Asteria. The group, which already owns Coreti Etiquetas, has just announced its second acquisition in Spain. Etygraf in Valencia makes labels for the food, wine and cosmetics sector. Only three months ago, Asteria took over the Barthel Group based in Essen, Germany, with over 500 employees. The Asteria Group now numbers some 30 companies in 10 European countries, and with a total of 1,700 employees.Like many industrial sectors, manufacturing label machinery is becoming more and more automated. Hence the decision by Bobst to acquire 70% of Dücker Robotics, a company based in Moma, just over the Swiss/Italian border, and a specialist in the automation of packaging production lines (it has already installed 350 automated systems worldwide). Jean-Pascal Bobst, CEO of Bobst Group, explains the strategy: “In an era where converters are facing higher demands than ever due to the booming global demand and specifically in the e-commerce market, while simultaneously facing challenges in shortages of manpower, automation has never been more important for our clients. Dücker Robotics has 20 years of proven leadership in the development of robotic systems for the most sophisticated converting machines, and we are very excited to see what we can achieve together.”
A more modest acquisition was recently announced by French label converter Autajon, which acquired Swiss competitor Ronquoz Graphix. CEO Gérard Autajon did not make an announcement – he never does – but we can know the Swiss company makes mostly labels and packaging for wines – a specialty of the Autajon group. With 16 sites in France and 19 more in Germany, USA, China, South Korea and several other countries, Autajon (world sales: €600 million) is as near as France gets to a truly world-ranking label converter.
How to win label awards
Readers of L&NW will know all about the woes of the Turkish Lira: 2.50 to the dollar in 2014, now trading at around 24 if you can find anyone to buy them. Consumer inflation over the past year is somewhere between 40% and 80% depending on whose figures you read. And the economy minister, along with the governor of the Central Bank, have just been invited to step down (the latter being replaced by a woman and former Wall Street banker).Whether the recent re-election of Mr. Erdogan will bring the country back to economic sanity is still uncertain. For Turkish businesses wanting to buy equipment from abroad, a convoluted system of capital controls makes life difficult, but not impossible, if you have the right connections. In the face of all these challenges and obstacles, a Turkish label and packaging manufacturer, Ҫiftsan Label & Packaging Company, took two top awards at the latest FINAT competition. This goes to show something. But what?