TAPPI

Student Summit

Worldwide leading supplier of equipment

and services to packaging manufacturers

in the folding carton, corrugated board

and flexible materials industries

www.bobstgroup.com

• Founded in 1890

• Headquarters - Lausanne, Switzerland

• 5700 Employees

• Annual Sales $ 1,700,000,000

RECONDITIONING PLANTSPRODUCTION SITES

Worldwide

ATLAS - Bedford

GENERAL - Heywood

Slide 4 © Bobst Group 2009

MARTIN - Villeurbanne

FISCHER & KRECKE GmbH - Bielefeld

STEUER GmbH - Stuttgart

BOBST SA - Prilly/Mex

ASITRADE AG -Grenchen

BOBST GROUP ITALIA SpA

SCHIAVI - Piacenza

ROTOMEC - S. Giorgio Monferrato

BOBST GROUP LATINOAMÉRICA

DO SUL Ltda - Itatiba

BOBST

(Shanghai) Ltd

BOBST INDIA

PRIVATE Ltd - Pune

BOBST GROUP

Africa & Middle

East Ltd - Tunis

Production Sites

Why CORRUGATED

for a career path?

It’s not just brown cardboard

boxes anymore!!

Packaging trends in the corrugated

industry

and

Market expectation

Packaging trends in corrugated

industry :

Overall usage

Material : typical trend - light paper evolution

Flute style

Design complexity

Printing usage evolution

Others

Key driversGlobal corrugated production Trends & Forecasts by area- 2003-2007-2012- in Msm

Consumption SQM per capita 2012

43969

9954

39634

11013

51559

175516634

197310

16996

95

20

81

37

9

38

87

5

30

0

50000

100000

150000

200000

250000

North

america

C&S

America

Western

Europe

C & E

Europe

SE Asia &

India

China Pacif ic

Rim

Other

regions

World

mil

lio

n s

qm

0

10

20

30

40

50

60

70

80

90

100

Consumption SQM per capita 2007

46248

9178

40042

914619533

5665

179315

14409

35094

104

20

84

30

8

27

98

4

29

0

50000

100000

150000

200000

250000

North

america

C&S

America

Western

Europe

C & E

Europe

SE Asia &

India

China Pacif ic

Rim

Other

regions

World

mil

lio

n s

qm

0

20

40

60

80

100

120

Key driversConsumption of CB per capita

660g/m²

530g/m²

690g/m²

• Continuous reduction in material usage consumption – significant gap from

region to region

520/

506

• Continuous improvement in packaging design to reduce material usage

• Lead to more complexity and accuracy ie new requirement for equipment

From craddle to Grave

SUPPLY CHAIN EFFICIENCY

RECYCLING-TRANSPORTATION

Corrugated Boxes evolution (%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000

2008

2013

2000

2008

2013

2000

2008

2013

2000

2008

2013

TOTAL Mature markets Developing markets "Particular markets"

RSC, Brown Box Diecutted, Flat bed, Standard printing

Diecutted, Rotary, Standard printing RSC, High Graphics

Diecutted, Flat bed, High Graphics Diecutted, Rotary, High Graphics

Corrugated packaging evolution (% )

Printing Processes for

Corrugated

A Look at Comparative Processes

Ink

Cylinder

+ plate

Anilox roll

Corrugated board sheet

Counter pressure

cylinder

DIRECT POST PRINT FLEXO

• Most popular printing process

in CB

• 1 up to 4 colors

• Limited registration

• From small to large

Production runs

• Good enough

POST PRINT FLEXO

BASIC FLEXO HIGH GRAPHIC

• Growing alternative to Preprint and

offset

• Inline or offline

• up to 9 colors + V

• Very good registration

• From small to large Production runs

• In house process

• Installed base still limited

Cylinder

+ plate

Anilox roll

Liner ( from roll ) Master Impression

cylinder

Ink

PRE PRINT FLEXO

PRE PRINT FLEXO

• Printing process reaching offset process

• Continuous printing process (roll)

• Up to 8 colors and Varnish

• Usually consider as cost effective for long runs.

• Min. production around 3 reel ( 45 000 sqm )

• Need to have long term visibility in marketing campaign management

• Can be used for very large packaging dimension

• Printing combinations are possible Pre-Print & Post-Print HG for latest

Differentiation

• Cost of the printing plates quiet important ( size up to 2.8 m web)

Cylinder +

plate

Paper ( sheet )

Master Impression

cylinderInkWater

cylinder + blanket

OFFSET PRINTING

• # 1 Printing process for Very high graphic requirement 150 LPI

• Sheet to sheet printing process, offline

• Up to 7 colors and Varnish (most common is 5 + varnish)

• The sheet must be laminated on a corrugated board roll or on a sheet

(ASITRADE litho-laminator machine)

• Standard coated paper have poor mechanical characteristics (can be

balanced with appropriate adjustment on the board combination)

• Stock usually required to secure a long term implementation process

• Limited dimensions on machine side i.e. 2 pieces pack will be

required from time to time

• Direct Litho now possible, but limited to light, flexible sheets (micro

and nano-flute)

OFFSET PRINTING

Feeder

Dryer

Silk screen

Ink blade

SCREEN PRINTING

Traditional CorrugatedA flute

B flute

C flute

Double-wall

Micro FluteE flute

&

Micro combination

Fine FluteF flute

G&N flute

Litho-laminated

Flexo pre-print

HQ in/off-line flexo post print

Direct offset

Digital print & Silk Screen

Corrugated Board Printing Techniques

Basic in/off-line flexo post

print

Evolution of Printing Processes

Decorative Corrugated

1970 1980 1990 2000 2010

Litho-laminated Sh/web

Direct offset print

Flexo pre-print

HG Flexo Post print

Digital print

Litho-laminated Sh/Sh

Niche developping

Growing

Stagnant

Stagnant

Continuous growth

Stagnant

Corrugated Board packaging usage and processes

RSC 2008

RSC = Regular Slotted Case, mainly produced on FFG converting equipment

FFG std;

37%

Pre print

+FFG 40%

FFG nt; 21%

Manuel 2%

RSC,

Standard

89%

RSC, High

graphic &

Multi colors

11%

Diecutted

49%

Not

Diecutted

51%

Corrugated Board packaging usage and processes

Diecutted Boxes 2008

Not

Diecutted

51%

Diecutted

49%

Flat bed

diecutting

59%

Rotary

diecutting

41%

Flat bed,

Standard

72%

Flat bed,

High graphic;

28% Flexo post-

print +

FBDC; 38%

Litho-lam +

FBDC; 45%

Flexo pre-

print +

FBDC; 18%

DRO,

Standard;

75%

High graphic

& multicol

25%

DRO std a;

11%

DRO std;

38%

Pre-print +

DRO std;

15%

DRO nt; 35%

Not

Diecutted

51%

Diecutted

49%

Flat bed

diecutting

59%

Rotary

diecutting

41%

Flat bed,

Standard

72%

Flat bed,

High graphic;

28% Flexo post-

print +

FBDC; 38%

Litho-lam +

FBDC; 45%

Flexo pre-

print +

FBDC; 18%

DRO,

Standard;

75%

High graphic

& multicol

25%

DRO std a;

11%

DRO std;

38%

Pre-print +

DRO std;

15%

DRO nt; 35%

% of diecutted boxes (sqm)

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

2000 2008 2012

TOTAL

Mature markets

Western Europe

North America

Pacif ic Rim

Developing

markets

Eastern Europe

Central & South

America

Africa & Middle East

South East Asia

"Particular

markets"

China

India

From 48% to 58%

=> + 20%

Diecutted Boxes evolution 2008-2012

Market expectation Diecutting processes ( for Autoplaten and Rotary diecutters )

Accuracy : print to cut

Material (board grade, flute…) : larger scope

Quality ( dust, )

Dimensional acceptance

Process flexibility

Folding-glueing Inline FFG – or offline

Accuracy

Quality ( fishtailing )

Design style

Printing process In and offline

Accuracy

Registration LPI, number of colors, varnish

Material, flute , paper

Dimensional acceptance

Process flexibility

Market Segmentation of Printing Processes:

18% decorative

~75%

45-50%

High

Graphics%

18%

Standard%

82%

Flexo pre-

print 21%

Litho-

laminating

36%

Flexo

post print

42%

2008

Million sqm 0

5'000

10'000

15'000

20'000

25'000

30'000

35'000

40'000

45'000

50'000

2000 2008 2012

Litho-laminating

Flexo pre-print

Flexo post print

1998

Decorative applications

• From 2-3 colors to 6-7 + varnish

• Home appliance, food display, wine display, cosmetic display,

liquor/wine box, beer wrap around, food tray, food packaging

• Plate screen from 28-32 l/cm

Trends in Decorative Printing on

Corrugated Board

• Emphasis on sustainability

– Reduce consumption of raw material : paper, water, inks,

– Reduce noise

• Shorter runs

– Increase flexibility, JIT…

– Reduce inventory,

• Market fragmentation

– In-store signage, packaging, point of sale displays, SRP…

• Technological developments

– High graphic flexo post-print challenging offset

– Emergence of digital

Bobst Flexo #units evolution

• Box identification has increased

• Flexo units in last 4 years for high level quality printing

• 70% of the machines are for decorative printing

• Evolution of Flexo quality has peaked

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2004 2008

5 and more

3-4 col

1-2 col.

Flexo High graphic market trend

Source BOBST: 09..2009

Actual evolution

Forecasted trend

High Graphic

Post print Flexo

Qty / Run

1 100 1000 10 000 100 000

Quality

120 LPI

Screen

printing

Digital

printing

Basic Post print Flexo

80 LPI

160 LPI Offset printing + Litholam

Pre-print Flexo

Flexo quality printing evolution (source BOBST SA 2009)2000

2009

1998 2004 2009

Anilox screen 100-200 L/cm 140-280 L/cm 200-350 (480) L/cm

Plate screen 26-34 L/cm (stand.)

32-40 L/cm (fine)

28-36 L/cm (stand.)

34-42 L/cm (fine)

34-42 L/cm (stand.)

48-60 L/cm (fine)

Converting

Material

B to C flute B, E, F flute EB, EF, N flute, thinner and

lighter paper

Packaging Wrap around, US

Box, trays

Self-sell packaging Promotion packaging &

supports on POS

Shelf Ready Packaging

Commercial

needs

Transport, protection Product design

differentiation on the shelf

(Offset alternative),

Marketing message

transmission

Quick and flexible

promotion reaction

Going “green”

Technical

evolution

From ’95 Masterflex-A Duo Technik & Registron S5500, Masterflex-L with reliability

and consistent register process evolution, DDF, direct drives, dryers

Visual Impact Distance

Time to cross the aisle is seconds

To be seen - Visual Printing Impact is key

VISUAL EFFECT in STORES

• At a distance of 2-10 m the visual impact is maximum

and at the same distance the customer must

received the marketing message

• Impossible to differentiate the printing process

with their quality

From 30 cm it’s able to see the difference,

but the message is already given

Corrugated Packaging is

becoming more complex and is

the best option for sustainability

.

Career Paths in CORRUGATED

• Engineering

• Design

– Graphic

– Machinery

• Sales

• Manufacturing

• IT

• Management

Almost everything

ships in a

CORRUGATED box

For more information visitwww.bobstgroup.com

Or emailtom.phillips@bobstgroup.com