BOPP film lines in 2010 –What does the market demand?

Markus GschwandtnerBrückner Group

ContentsContents

CurrentCurrent Trends and Trends and DemandsDemands

OurOur Superior Superior OffersOffers

BOPP: Demand vs Production - World

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

5.000.000

5.500.000

6.000.000

6.500.000

7.000.000

7.500.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Tons

/ Ye

ar

Demand Actual: CAGR 1998-2004 of 10,2% p.a.Demand Projection on CAGR 7 % p.a.Demand Projection on CAGR 5,5 % p.a.Demand Projection on CAGR 4 % p.a.Production

Total New BOPP Capacity in 2006: 194,000 tpaTotal New Number of Lines: 7Market Share Brückner: > 50 %

Additional BOPP Capacity in 2006 - Sold by Brückner

Americas

30,000 tpa

Europe

48,000 tpa

Asia

87,000 tpa

BOPET & others world wide 48,000 tpa

India

29,000 tpa

CurrentCurrent Trends and Trends and DemandsDemands

Premium Segment:

● Small lots● High prices

Average Segment: (Low speed, 3 layer)● Getting smaller and smaller

Discount Segment:

● Big volume● Little margins

Current Consumer Buying Behaviour

100%

1973 1981 1986 1990 2010Source: DPF

Flexibility

Efficiency

Premium Segment

Average Segment

Discount Segment

(up to 6.6m, Multi layer, LISIM®)

(8, 10, 12 m)

Demands from Converters` EyesMultifunctional films as a replacement for laminate structures

Substrate to print on

WVTR Barrier

OTR Barrier

Sealing layer

Puncture resistance

Aroma protection

Multifunctional BOPP films

Source:

Market Needs = Our Challenges

Replacement of aluminium foil

Replacement of paper

Replacement of PVDC coated films

Down gauging

Replacement of lamination steps

Replacement of PVC sleeves

Market Needs Our Challenges

Ultra-high barrier film BOPP met

White opaque film with high modulus

Co-extruded EVOH based barrier film

Thin films with high mech. properties

Multifunctional co-extruded films

MD shrinkable labels

OurOur Superior Superior OffersOffers

Future Challenges

Efficiency Flexibility

Total Energy Management

LIWIND

Direct Drives Extruders

Automatic Product Changes

Multipurpose Lines

LISIM®

Efficiency - Total energy management

Oven heat recovery systemfor energy savings > 30%TDO exhaust air amountcontrol by condensatesensor

Twin screw extrusion for less energy consumptionWater cooled motors –saving air condition power

Electrical energy management systemRegenerating energy for line drive system

Stand-alone power stationfired by gas for electrical &thermal energysavings up to 1 Mio € / a @ 3 MW

Efficiency - LIWIND

(patents pending)

Mechatronic system withLinear motors for movementLinear motors for damping

Direct force transmissionNo wearNo backlash

Efficiency - Direct drives extruders

Energy Efficiency up by 5,5 %vs. motor-gearbox

No gearbox – less maintenance

Recent 10.0m BOPP Line:speeds beyond 400m/min, best film quality and film thickness profile

Efficiency – High Speed and Excellent Quality

Flexibility - Automatic product changes

Drastically reduced changeover time Highly flexible extrusion systems and resin feedingAccurate level control of the day silosFully automated product change procedure

Flexibility - Multipurpose lines

Additional Investment for Multi-Purpose Preparation

Dedicated BOPP Line, i.e. 5-layer, 6.6 m width

Synthetic Paper

Barrier (EVOH) BOPE BOPLA OPET-G OPS

Flexibility - Simultaneous Stretching

• Proven technologysince 1996

• No wear & tear• MD stretching ratio 10• Speed up to 450m/min• Width up to 7.2 m• Technology Centre /

Pilot line forUpscaling, New productsand Pre-marketing

SimultaneousStretching

Tenter Frame

Double Bubble

FixedStretching Ratio

Flexible Stretching Ratio

Pantograph

Spindle

LISIM®

MESIM

References:3x BOPET2x BOPP2x Pilot lines 1x Optical Films

Flexibility - LISIM® added value

Customized shrink properties

Superior barrier properties

Advanced sealing properties

Enhanced mechanicalproperties

Film-ProductionSequential &

Simultaneous

MetallizationSiOx

LaminationPrint

Adhesive

Packaging End userPackaging propertiese.g. haptics

Joint Project Along the Value Chain to Enhance Packing Properties at Reduced Costs

Project coordination

Used Systems for Packaging Trials

New film laminates show equal or even better barrier properties

Current Standard Future Potential

Peanuts80 µm Film CompoundBOPET 12µm // BOPPmet 15µm // PE-LD 50 µm

38 µm Film CompoundBOPET 7µm // BOPPmet 18µm / PE-LLD 12µm

Chips

27 µm Film CompoundBOPPmet 15µm // BOPP 12 µm

40 µm Film CompoundBOPPmet 20 µm // BOPP 20 µm

Example for Substituted Film Laminate 80µ -> 38µmApplication: Peanuts

BOPET,12µm, Reversed Print

BOPP, 15µm, metal.Lamination

PE-LD, 50µm

Lamination

BOPET,7µm Reversed Print

Lamination

BOPPmet,18µm,PE-LLD 12µm

Duplex Compound1 Laminating Step

Triplex Compound2 Laminating Steps

Remark

38 µm80 µmGauge

PET 7 µm // BOPPmet 18 µm / PE-LLD 12 µm

PET 12µm // BOPPmet 15µm // PE-LD 50µm

Material

Future PotentialActual Standard

Tests Along the Added Value Chain

Sensor TestPackagingLaminatingMetallizingFilm production

In Progress

AcceptationTest

Process ability

Process ability

OTR, WVTROptical Density

Optics Mechanics

Sealing

Mature Research & Development

Brückner Technology Center

Up to 7 layers with 6 extruders

Extension to sequential andsimultaneous operationby July 2006

Expansion of LISIM® Pilot Line – Your Benefits

Simultaneous AND sequential mode available, easy switchable !Additional highly flexible MDO with multi-gap stretching New IPC system for vital information concerning machine parametersAdvanced Manufacturing Management System (MMS)

Vision without action is a daydream,

Action without vision is a nightmare !

Japanese Proverb

ThankThank YouYou!!