Looking Ahead
The Global Release Liner Industry Conference, hosted annually by AWA Conferences & Events, took place this year Feb. 6-8 in Amsterdam, the Netherlands. The event, which alternates annually between North America and Europe, drew 150 delegates from all corners of the globe to focus on the opportunities and concerns in a business that has seen considerable consolidation in recent years, and is facing rising costs, reduced profitability, and environmental issues.
Market data
Opening the formal conference proceedings, Conference Chairperson Corey M. Reardon, president and CEO of market research consultants AWA Alexander Watson Associates BV, provided the first keynote address—his company’s global update on the release-liner market as a whole. North America is still the largest market at 37 percent, he said, with Europe in second place at 30 percent—but across nearly all applications, these are mature markets, and growth is slowing. Asia Pacific’s current share, 25 percent, is, however, likely to increase significantly. Annual growth of nearly 10 percent means that this region will soon overtake the traditional market leaders in terms of volume usage (Figs. 1 and 2 below).
Overall, AWA forecasted a continuing annual growth rate for the industry of 4-6 percent, but Reardon drew attention to a real concern. “We must not forget that the release-liner industry is a producer of waste material after a self-adhesive application is completed. As it positions itself for the future, this becomes more and more of a critical issue.”
More partnership
Alexander van ‘t Riet, business line director, films, for Avery Dennison Roll Materials Europe, addressed suppliers, growth, and customer needs from two perspectives: that of a purchaser of release liners, and that of a leading self-adhesive laminate producer. His premise was challenging: the customer’s agenda, he said, is “ME, everything, now”—a wish list that highlights a genuine need for supply chain partnerships. “We are too often in transactional mode,” he said. To grow the self-adhesive industry in the future, he told delegates, suppliers have a key role in developing cost-effective, innovative solutions in support of the multi-generation product plans, which are already actively pursued in Avery Dennison.
A global market
Penti Kallio, CEO of release-liner producer Loparex Group, looked at drivers and challenges. In the label stock market today, he said, 50 percent of customers are global and 50 percent are local. In the hygiene, tapes, medical, and graphic arts markets, most of the business is now global. However, he said, even global customers want local service and local language. Loparex’s business model is designed to provide that, within the context of global R&D, raw materials purchasing, and manufacturing, he said.
Kallio identified the risk assessment criteria for globalization as economical and political uncertainty; local competition (never underestimate it); the time perspective (it takes a long time to achieve ROI); internal challenges; and strategy—the choice of a standalone or joint venture. In the release-liner industry, he observed, “few manufacturers are able to globalize with their current company structures.”
A holistic environmental approach
Marja Tuderman, UPM-Kymmene’s vice president of environmental affairs and corporate social responsibility, demonstrated a route to a successful, holistic environmental approach to paper release liners. She identified the current environmental action points: climate change mitigation; the scarcity of fresh water; unacceptability of landfill and opportunities for waste recovery; minimizing chemical usage; and sustainable sourcing. Success, she said, demands that the emphasis be on reducing the total environmental impact of the product or operation—not just one aspect.
The sustainability issue
The final keynote presentation on the opening day of the conference was a view of the sustainability agenda from a major multinational end user. Steph Carter, packaging sustainability director at Unilever, made a strong case for sustainability metrics, discussing what, how, and why every company should embark on such a procedure. “Until you have the measures,” he said, “you can’t set the targets.” He spoke on the currently popular myth that reductions in packaging are the answers to everything. “Packaging typically has about 10 percent of the environmental impacts of its content,” he said. “It preserves and protects far more than it impacts.” When selecting packaging for specific applications, he suggested that “it is wrong to choose materials simply because they have the lowest impacts, or are perceived to be ‘green’. Choose them for function and their real impacts—not the perceptions.” He cautioned that release liners—like any aspect of product processing that the consumer does not see—are likely to become a bigger issue in the consumer arena in the future.
Success in a consolidated group
Neil Burns, managing director for the release-liner segment of Mondi Coating & Release, opened proceedings in the marketing forum, with a manufacturer’s viewpoint of an industry where, he said, “if you talk to a buyer, don’t be surprised if price is top on the list of topics.” Explaining the corporate Mondi approach, he showed how the company’s acquisition trail in recent years has created both internal challenges and opportunities at all levels. In what is now a highly diversified group culture, Mondi underlines, in a converting business, the importance and value of maintaining decentralized management. He summarized some of the questions companies need to ask themselves before defining their future actions—all of which are underpinned by the key statement, “No product development, no future.”
Film liners
Film release liner trends were addressed by John C. Forster, vice president, corporate development, for FLEXcon. Growing in the roll-label market at 5-6 percent per year, film release liners are adapting to market needs in many ways. Reduced caliper, low extractable silicone systems and silicone-free release systems, recyclability, two-sides coated, and modifications to the backside of the liner are some of the areas where there are developments today. However, silicone transfer to the print surface, and the relationship between film tension and heat, remain problem areas.
Curing chemistry
Drivers remain a delicate balance between quality/performance and cost reduction. Karsten Schlichter, global market manager for Bluestar Silicones, looked at curing chemistry, where release base down-gauging and the need for greener solutions and increased recyclability are growing trends.
Thomas E. Hohenwarter Jr. of THresource looked at the healthy prospects for radiation-curable release coatings. With 20 years of experience behind it, radiation curing has proved itself, as he said, “here to stay,” and he predicted continuing double-digit global growth for this robust combination of chemistry and technology.
Paper release base
Globally, papers remain the release base of choice—and for good reasons, said Antti Heimola, director, technical marketing, for UPM-Kymmene. Paper-based release liners can fulfill the requirements of everyone in the value chain for self-adhesive labelstock in terms of quality and efficiency. This is true today even in partnership with film face stocks, he said.
Ismo Pietari, research and development director, UPM Raflatac, broke down these opportunities for paper liner and paper’s many benefits—as well as the challenges in the label market that it faces from films, other labeling and product decoration techniques, waste directives, and liner-less labelstock. “Filmic liner will gain market share in more demanding applications if paper suppliers don’t provide more innovative solutions,” he predicted. He was confident that paper would remain the prime choice for partnering paper facestocks, and that environmental aspects would continue to favor papers.
Specialty tapes
Specialty tapes also make tough demands on release-liner performance, as Michel Sabo, product manager, bonding and joining, for Nitto Europe, showed in his presentation. Whatever the end use, he said, the release liner’s function is to increase the productivity of the customer, and the tape manufacturers have high expectations of what the release-liner manufacturers should deliver for the future. Silicone-free release (widely requested in the automotive industry); reduced thickness with uncompromising stability; anti-static properties (generally a negative feature of plastics materials); recyclability; and clean-room manufacturing are some of the items on the agenda.
The hygiene market
Kari Kalliala, managing director, Loparex Oy, looked at the release-liner manufacturer’s role in the hygiene market—currently growing globally at about 8.1 percent (with the biggest growth in film liners for single wraps). This market, which is supplied solely by commercial siliconizers and whose customers are both multinational product manufacturers and local independents, has specific requirements for future success. Kalliala identified these as adapt liners to faster production lines; develop thinner paper grades; product integrity, hygiene, and cleanliness; offer a printing service; good service and logistics; and a global reach.
Wrapping up
On the morning following the conference, delegates were invited to visit Loparex’s speciality release liner manufacturing facility at Apeldoorn and to enjoy a buffet lunch before departing for home. The Global Release Liner Industry Conference 2008 was supported by a mini-exhibition and tabletop, and the social networking during the official conference dinner, cocktail receptions, and conference breaks. Next year’s Global Release Liner Conference 2009 will be hosted by AWA Conferences & Events in Washington, D.C. pP
Corey M. Reardon is president and CEO of AWA Alexander Watson Associates, a global business-to-business market research, publishing, and consulting company with an industry focus on the specialty paper, film, packaging, coating, and converting industries.
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