1. Gravure Package Printing Update from North America Presented by: Charles R. Conover Director of Sales & Service Hurletron, Inc. Libertyville, IL USA

2. Market Share in Decline
Gravure Package Printing continues to loose market share.
Companies in 2007 added or replaced Flexo-graphic presses whereas only 9-10 Rotogravure presses were added or replaced.

3. Heat Set Web Offset is capturing more jobs in the insert & catalogue markets at the expense of publication gravure.
Product Gravure such as wood grain, flooring & gift–wrap remain relatively strong, as other presses cannot match gravure quality.
More than 3,000 printing presses in North America for package & product printing. Include Flexo, Gravure, Offset, Digital & Screen. Of these, are Gravure

4. GRAVURE PACKAGE PRINTING UPDATE NORTH AMERICA August 2008

5. WORLDWIDE PACKAGING OVERVIEW
WORLD PACKAGING MARKET SIZE
WORLD PACKAGING CONSUMPTION BY REGION
* Source: World Packaging Organization, 2008
$USD Billion
* Source: World Packaging Organization, 2008
TOP PACKAGING CONSUMPTION COUNTRIES
$USD Billion
© A L C A N I N C Alcan Packaging Tobacco – North America
* Source: World Packaging Organization, 2008

6. NORTH AMERICA PACKAGING OVERVIEW
NORTH AMERICA PACKAGING MARKET SIZE
* Source: World Packaging Organization, 2008
NORTH AMERICA PACKAGING MARKET BY MATERIAL, 2005
NORTH AMERICA PACKAGING MARKET BY INDUSTRY TYPE, 2005
* Source: World Packaging Organization, 2008
* Source: World Packaging Organization, 2008
© A L C A N I N C Alcan Packaging Tobacco – North America

7. NORTH AMERICA PACKAGING OVERVIEW
BOARD & PAPER PACKAGING – NORTH AMERICA
RIGID PLASTIC PACKAGING – NORTH AMERICA
* Source: World Packaging Organization, 2008
* Source: World Packaging Organization, 2008
FLEXIBLE PLASTIC PACKAGING – NORTH AMERICA
METAL PACKAGING – NORTH AMERICA
* Source: World Packaging Organization, 2008
* Source: World Packaging Organization, 2008
© A L C A N I N C Alcan Packaging Tobacco – North America

8. NORTH AMERICA PACKAGING OVERVIEW
GLASS PACKAGING – NORTH AMERICA
OTHER PACKAGING – NORTH AMERICA
* Source: World Packaging Organization, 2008
* Source: World Packaging Organization, 2008
© A L C A N I N C Alcan Packaging Tobacco – North America

9. Package Printing by Category

10. Relative Cost of Engraved Gravure Cylinders
North America 100 %
England %
Europe %
Asia %

11. Cost Difference Flexo vs. Gravure
“Run of the mill” Flexo……………$0.35/in²
High quality Flexo………………....$0.49/in²
Gravure…………………………$0.50-$0.51/in²

12. Major Plastic Flexible Packaging Structures
Category
% of Market in Dollar Value
Rollstock
61%
Bags
14%
Lay Flat Pouches 3%
Standup Pouches 4%
Retort Pouches 1%
Shrink Sleeves
<1%
Lidding
Stretch Films 6%
Shrink Wraps 5%
Wrappers
Other

13. Packaging Growth Markets
Labels (Heat Transfer- In Mold- Clear Labels)
Shrink Sleeves
Shrink Wraps
Standup Pouches
Lidding

14. Actions Required to Benefit from Growth Opportunities
Look at use of Specialized inks & Coatings
Concentrate on value added products
Printers must work to ensure that packages “Stand out on Shelves”

15. First Moment of Truth” a defining factor in purchase decisions
Antiquated & outdated equipment must be replaced with modern, quick-change gravure presses
Gravure is the easiest process available to produce the highest quality printing

16. Declining Packaging Gravure Markets
Non-Value Added Products
Tobacco Packaging
Very Short Run Jobs

17. New Market Opportunities
Printed Electronics

18. Printed Electronics – Markets
Photovoltaics / Batteries
Sensors
Transistors / Memory / Logic
Commercial Lighting
Active Displays
Graphic Design /
Advertising / P.O.S.
RFID

19. Printed Electronics – Platform Printing
Optimizing and Characterizing Printing Technologies
Ink formulation specifications and tolerancing
Ink film thickness and deposition consistency
Resolution capabilities
Cost models

20. Printed Electronics – Production
Print system capability needed is determined by device/functional requirements
Opportunities exist today that fit within printing capabilities
Challenges:
Practical knowledge with emerging technology
Power / Battery
Integration of multiple process steps
Lack of Development facilities

21. Printed Electronics – Clemson
What is Clemson doing?
Preparing undergraduate and graduate students
Dedicated courses with labs – Spring 2009
Career Education – Printed Electronics – Spring 2009
Fundamental research - Existing
Developing materials and applications
Intellectual property in our focus areas
Printing research - Existing
Defining capabilities for each printing process throughout the workflow

22. Printed Electronics – Clemson
What is Clemson doing?
Establishing a Printed Electronics Application and Research Lab (PEARL) – Spring 2009
Platform press with Flexo, Gravure, Screen, Inkjet
Fully configurable based on application
Contract testing
Company integration
Device prototyping
Pilot production

24. Printed Electronics - Clemson
Example work
These inks are printed like spot colors and sandwiched in a circuit
Tunable for custom color

25. Printed Electronics - Clemson
Example work
Gravure characterization on PET
Ink Film Thickness / Smoothness
Resolution

26. Perception of Gravure Only suited for long runs
Pre-Press cost higher than other processes and require more time
Change over times high
Gravure quality consistently high
Easiest of all printing processes to operate

27. Market Consolidation Graphic Packaging / Altivity
Spear Label / Precision Packaging
Dow Chemical / Rohm & Haas
Printpack / Seal-It

28. Printpack / Groupo Industrial Plastico- Mexico
Alcoa Sale of Reynolds Packaging Division
Printpack opens new plant in Poland

29. Summary Gravure Printing in all market segments continues to shrink
All is not “LOST” Opportunities exist to recapture market share

30. Thank You!