John Penhallow11.14.23
Despite a 10% fall in sales and profitability in January/June 2023, Italian paper manufacturer Fedrigoni is sounding remarkably cheerful. Explaining the result, CEO Marco Nespolo put it down to “a slower than expected recovery,” and a “phenomenon of destocking from our customers.”
The self-adhesive paper division (Arconvert, Manter, Ritrama and others) did better than other parts of the group, too.
Lecta is a much smaller producer of label papers but its Condat mill in France, threatened with closure, will now be saved, with the loss of some 170 employees. The unions have reluctantly accepted the deal. The mill will from now on concentrate its one remaining line on label-related papers. The company is investing in a biomass boiler, to come on stream in 2024, which will reduce costs and CO2 emissions.
Hagmaier Etiketten, at the upper end, has also been soul-searching as to whether the time is right to invest. This family-owned business decided, against hell and high water, to go ahead. With one Durst inkjet press already installed, the choice was: go toner, or stick to inkjet. Finally, inkjet won and Hagmaier has recently installed a second Durst Tau press.
M&A activity is continuing, with Germany’s Faubel Gruppe being acquired by the Canadian giant CCL. Faubel, with sales of just over 50 million, specializes in booklet labels, mainly for the pharmaceutical industry, one of the brighter spots in the economy and where CCL wants to strengthen its presence in Europe.
If the industrial Mittelstand is its backbone, then the German economy has more than a twinge of lumbago. Estimated GDP for this year is likely to be down – only slightly, but when you’ve been used to winning races, that hurts. Too much old-fashioned bureaucracy doesn’t help: it takes an average of 10.5 days to set up a business in Germany, as against 4.5 in UK, and just 3.5 in France. Being obliged to renounce Russian gas and having chosen to opt out of nuclear power means that the average citizen has a much larger carbon footprint than the citizens of France or Italy. Add to this a shaky three-way government coalition, and Germany looks if not sick, then at least a little pale.
According to Paul Fischer, the comfort-loving Swiss people will soon realize that there is a trade-off between ecology and prosperity, and that packaging, though not very climate-friendly, is something we will never be able to do without – not even by 2050.
Similar noises have come from Britain’s ruling Conservative party, which has just deemed (how, we don’t know, but not by referendum) that the move to be more climate-neutral should be slowed down.
UNFEA is riding high
Since its founding in 1990, the French label association has never had so many members. Today there are 120 label converters and 80 suppliers, and this is just the right balance, according to UNFEA president Cyrille Roze. The goal for the coming year is to bring the number of converters to 240.
During the past few months the association has held its annual congress at Annecy, attended by 240 people; its traditional, convivial dinner during Labelexpo attracted nearly as many. Regional meetings were recently held in Strasbourg and Beaune; the next one, open to members and non-members, will be held in the Paris region.
MGI, one of the very few French exhibitors at Labelexpo, launched its latest finishing equipment in its JETvarnish range. This inline unit can lay down selective digital varnish and hot foil in a single pass. According to MGI’s president Edmond Abergel, this latest equipment is “Piloted by AI, and with predictive maintenance, this process optimizes both productivity and efficiency.”
DCM Usimeca, now one of the very few independent manufacturers of narrow web converting equipment, used the Brussels show to launch a new shrink sleeve seaming machine and an “intelligent” rewinder. Codimag, a French maker of “Aniflo” offset label presses, decided to keep its powder dry and stay away from Labelexpo, preferring to hold a series of in-house open days.
In France, it is mostly burned along with other general waste. But now French label converter Autajon has joined forces with Avery Dennison, Cycle4green and Lenzing and aims to double the collection and recycling of its customers’ waste liner. The quantities so far are modest: from around 45 tons, Autajon aims to recycle 90 tons next year. Now if only someone can do the same for France’s nuclear waste!
The self-adhesive paper division (Arconvert, Manter, Ritrama and others) did better than other parts of the group, too.
Lecta is a much smaller producer of label papers but its Condat mill in France, threatened with closure, will now be saved, with the loss of some 170 employees. The unions have reluctantly accepted the deal. The mill will from now on concentrate its one remaining line on label-related papers. The company is investing in a biomass boiler, to come on stream in 2024, which will reduce costs and CO2 emissions.
The German label market remains tepid
Herzog Etiketten in Germany, with just 30 employees, is at the lower end of the famous Mittelstand, which, so people tell us, is the backbone of the German economy. That has not stopped the company from investing in the latest equipment. Over the years since 1989, Herzog has installed no less than seven Mark Andy presses, including the latest Performance Series P7 flexo press and a Digital Pro 3 toner/hybrid.Hagmaier Etiketten, at the upper end, has also been soul-searching as to whether the time is right to invest. This family-owned business decided, against hell and high water, to go ahead. With one Durst inkjet press already installed, the choice was: go toner, or stick to inkjet. Finally, inkjet won and Hagmaier has recently installed a second Durst Tau press.
M&A activity is continuing, with Germany’s Faubel Gruppe being acquired by the Canadian giant CCL. Faubel, with sales of just over 50 million, specializes in booklet labels, mainly for the pharmaceutical industry, one of the brighter spots in the economy and where CCL wants to strengthen its presence in Europe.
If the industrial Mittelstand is its backbone, then the German economy has more than a twinge of lumbago. Estimated GDP for this year is likely to be down – only slightly, but when you’ve been used to winning races, that hurts. Too much old-fashioned bureaucracy doesn’t help: it takes an average of 10.5 days to set up a business in Germany, as against 4.5 in UK, and just 3.5 in France. Being obliged to renounce Russian gas and having chosen to opt out of nuclear power means that the average citizen has a much larger carbon footprint than the citizens of France or Italy. Add to this a shaky three-way government coalition, and Germany looks if not sick, then at least a little pale.
Let’s be reasonable!
Asking for a more moderate approach to climate change has become almost as risky as wearing an orange shirt in a St. Patrick’s Day parade. But Paul Fischer, editor of a Swiss print magazine, has taken up the challenge. It was probably not front page news in North America, but on July 18 of this year the Swiss approved a referendum on a “Climate and Innovation Law,” aiming – amongst many other things – to make the country climate neutral by 2050. In peace-loving Switzerland, this new law has set the cat amongst the pigeons.According to Paul Fischer, the comfort-loving Swiss people will soon realize that there is a trade-off between ecology and prosperity, and that packaging, though not very climate-friendly, is something we will never be able to do without – not even by 2050.
Similar noises have come from Britain’s ruling Conservative party, which has just deemed (how, we don’t know, but not by referendum) that the move to be more climate-neutral should be slowed down.
UNFEA is riding high
Since its founding in 1990, the French label association has never had so many members. Today there are 120 label converters and 80 suppliers, and this is just the right balance, according to UNFEA president Cyrille Roze. The goal for the coming year is to bring the number of converters to 240.
During the past few months the association has held its annual congress at Annecy, attended by 240 people; its traditional, convivial dinner during Labelexpo attracted nearly as many. Regional meetings were recently held in Strasbourg and Beaune; the next one, open to members and non-members, will be held in the Paris region.
Labelexpo Europe – a postscript
For a country whose capital city is only just over one hour by train from Brussels, the list of French exhibitors at the show was a short one – just short of 30. Compare this with twice as many from the United States, an eye-watering 160 from China and none – surprise, surprise – from Russia.MGI, one of the very few French exhibitors at Labelexpo, launched its latest finishing equipment in its JETvarnish range. This inline unit can lay down selective digital varnish and hot foil in a single pass. According to MGI’s president Edmond Abergel, this latest equipment is “Piloted by AI, and with predictive maintenance, this process optimizes both productivity and efficiency.”
DCM Usimeca, now one of the very few independent manufacturers of narrow web converting equipment, used the Brussels show to launch a new shrink sleeve seaming machine and an “intelligent” rewinder. Codimag, a French maker of “Aniflo” offset label presses, decided to keep its powder dry and stay away from Labelexpo, preferring to hold a series of in-house open days.
Used liner – Nein Danke!
In the 1980s, the very successful anti-nuclear movement in Germany took as its slogan “Atomkraft – Nein Danke,” and it’s an unpleasant fact that self-adhesive labels, like nuclear power stations, have difficulty in recycling waste material. Nobody wants siliconized waste liner: recycling it is possible, but collection costs are prohibitive.In France, it is mostly burned along with other general waste. But now French label converter Autajon has joined forces with Avery Dennison, Cycle4green and Lenzing and aims to double the collection and recycling of its customers’ waste liner. The quantities so far are modest: from around 45 tons, Autajon aims to recycle 90 tons next year. Now if only someone can do the same for France’s nuclear waste!