Presented by

Benefits of MDO Roll-fed

High Shrink Sleeve Labels

Agenda

Welcome and Introductions

Announcement

The Recycling Challenge

Roll Fed Shrink Technology

Polyphane FIT STS and Related Benefits

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Name: Mark Frascarelli

Title: Director of Marketing

Company: SKC, Inc.

Company Profile: Annual turn over: $250 million Headquarter(s): Covington, GA Key Operation(s): Film manufacturing, Chemicals mixing, Distribution Number of employees: 400 employees Products / Services: PET, PETG, PI, EVA films, PO/PO Derivatives, Lighting Application markets: SKC serves over 25 different major markets

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Name: Darryl Parks

Title: Territory Manager - Americas

Company: Polysack Flexible Packaging

Company Profile: Headquarter(s): Negev, Israel Key Operation(s): Film manufacturing Products / Services: High-shrink polyolefin-based film, PE film Application markets: High-shrink labels, candy wrappers, agro-textiles

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Polysack and SKC have formed a partnership to market

polyolefin-based MDO shrink film to North, Central and South

America.

Addresses the risks of offshore supply

• SKC will sell and distribute Polysack MDO shrink film

• SKC will build a plant to produce MDO shrink film in

Covington, GA

Addresses the regional market need for a floatable film

• Polysack FIT film meets APR’s guidelines for shrink

sleeve labels

• Provides a sustainable solution for PET bottle recycling

SKC - Polysack Partnership Announcement

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Established, financially stable company

• North American film producer since 1999

Production facilities in U.S., South Korea, and China

• #1 Global supplier of PET/PETG film

4 lines of PET film domestic capacity (-66 MT / year)

• #1 North American supplier of PET/PETG film

Experienced Service and Support in place

Strengths of SKC as a Global Supplier

Why does the market need Shrink Sleeve

Labels?

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• 360 degree decoration; print more information with more intricate design

• Full-body labels can display or hide product inside & allow creation of

easy opening, tamper-evident seals

• Outstanding print quality

• Reverse printing protects ink from scratching & wear while maintaining

high gloss finish

• Shrink films work with unusually shaped containers that distinguish the

product on the shelf

The PET Bottle Recycling Challenge

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Full body label obscures detection of bottle resin

Conventional sleeve film flakes do not float – no separation

Ink causes contamination & discolors final PET flake

FIT

PET-G

PVC

OPS

Polyphane

Fit

PET FIT

FIT FIT

PET PET FIT FIT PET PET PET

Sleeve

PET

Sleeve

Sleeve PET PET PET

Sleeve

Water Water

FIT

Polyphane Fit – A Sustainable Shrink Film

Environmental Friendly

Halogen free

Lowest CO2 Footprint

Recyclability

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Polyphane Fit – A Sustainable Shrink Film

“Polysack have received recognition for

new sleeve label technologies that meet

APR’s Guidance criteria for sleeve

labels”.

"APR believes these new technologies

will contribute to reducing the negative

impact that sleeve labels have on PET

recycling today”.

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Roll Fed Sleeve Technology

On a mandrel

• High speed – up to 900bpm

• Versatility

• Unlimited bottle shape

• No glue stayed on the label

• Operation is less expensive than sleeve technology

Advantages

Drawback • High capital investment

7,000

Labels

14,000 Labels

Mostly suitable to customer with at least 30M bottle/yr

Roll Fed Sleeve Technology

• Use your existing equipment

• Inexpensive machine

• Simple handling

• Versatile labeling

• Lowest cost to apply high

shrink labels

Advantages

Drawback

• Limited bottle shape

Directly on the bottle Solvent

13 • Not used in current shrink applications

No additional seaming and inspecting equipment & process

No refrigeration required for storage or transport

Versatile labeling methods

Optimal Shrink Sleeve Solution

Brand Owner .

Converter .

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High shrink

No Seam Problem

Both Steam & Hot Air

Affordable label

Widens choice of label suppliers High speed

Halogen free

Low CO2 Footprint

PET recyclability

No refrigeration required for

storage or transport

Expands potential label market beyond full-body TDO sleeve

Polyphane FIT is the Optimal Shrink Sleeve Solution

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Polyphane Fit – Proven & Successful

Proven for different printing methods

• Flexo UV, Gravure, Flexo solvent and Flexo water base

Proven for different bottle shape and type

• PET & HDPE

Proven for partial sleeve labels

Proven for tamper evidence

Polyphane Fit – Proven & Successful

Proven in Hot bar, Laser and Liquid Bonding

The only product in the world that runs on all RFS

technologies

High output with near 0% waste

Over 1.5 billion labels at several sites in the US, SA and

Europe

Existing commercial applications

• Slim-Fast by Kainos Capital

• Private labels for Costco and Kroger

• Gatorade by PepsiCo

• Main St. Coffee by Gehl Foods

• Batik by San Benedetto 16

Polysack’s Polyphane FIT Product Portfolio

Current product Polyphane FIT STS (V1)

• Commercial in 40 micron, available in other thicknesses

• Works with all welding technology (solvent, laser, hot bar)

• Works on Sidel and Sacmi MDO machines

• SKC will distribute MDO film for Polysack in the U.S,

Canada, and Mexico targeting U.S. production by SKC

Polyphane FIT V2 (In development)

• Will be available in same thicknesses as STS

• Will allow brand owners to leverage existing ROSO

machines

− Low cost or no modification anticipated

• Will utilize existing equipment’s low cost seaming

technology

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Machine Funding Solutions

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Polysack / SKC have reached agreement with two key

machine suppliers to offer price support for the purchase

of the required converting equipment

Polysack / SKC are willing to assist in the purchase of

a machine in return for a long-term supply agreement

Q & A

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Thank you for your time