BOPP film lines in 2010 What does the market demand? Markus Gschwandtner Brückner Group

BOPP film lines in 2010 What does the market demand? Markus Gschwandtner Brückner Group

Contents Current Trends and Demands Our Superior Offers

BOPP: Demand vs Production - World 7.500.000 7.000.000 6.500.000 6.000.000 5.500.000 5.000.000 Tons / Year 4.500.000 4.000.000 3.500.000 3.000.000 2.500.000 2.000.000 1.500.000 Demand Actual: CAGR 1998-2004 of 10,2% p.a. Demand Projection on CAGR 7 % p.a. 1.000.000 Demand Projection on CAGR 5,5 % p.a. 500.000 Demand Projection on CAGR 4 % p.a. Production 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Additional BOPP Capacity in 2006 - Sold by Brückner Total New BOPP Capacity in 2006: 194,000 tpa Total New Number of Lines: 7 Market Share Brückner: > 50 % 87,000 tpa 30,000 tpa 48,000 tpa 29,000 tpa Americas Europe India Asia BOPET & others world wide 48,000 tpa

Current Trends and Demands

Current Consumer Buying Behaviour 100% Premium Segment Average Segment Premium Segment: (up to 6.6m, Multi layer, LISIM ) Small lots High prices Flexibility Average Segment: (Low speed, 3 layer) Getting smaller and smaller Discount Segment Discount Segment: (8, 10, 12 m) Big volume Little margins Efficiency 1973 1981 1986 1990 2010 Source: DPF

Demands from Converters` Eyes Multifunctional films as a replacement for laminate structures Substrate to print on WVTR Barrier Multifunctional BOPP films OTR Barrier Sealing layer Puncture resistance Aroma protection Source:

Market Needs = Our Challenges Market Needs Replacement of aluminium foil Replacement of paper Replacement of PVDC coated films Down gauging Replacement of lamination steps Replacement of PVC sleeves 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

Our Superior Offers

Future Challenges Efficiency Total Energy Management LIWIND Direct Drives Extruders Flexibility Automatic Product Changes Multipurpose Lines LISIM

Efficiency - Total energy management Twin screw extrusion for less energy consumption Water cooled motors saving air condition power Electrical energy management system Regenerating energy for line drive system Oven heat recovery system for energy savings > 30% TDO exhaust air amount control by condensate sensor Stand-alone power station fired by gas for electrical & thermal energy savings up to 1 Mio / a @ 3 MW

Efficiency -LIWIND Mechatronic system with Linear motors for movement Linear motors for damping Direct force transmission No wear No backlash (patents pending)

Efficiency - Direct drives extruders Energy Efficiency up by 5,5 % vs. motor-gearbox No gearbox less maintenance

Efficiency High Speed and Excellent Quality Recent 10.0m BOPP Line: speeds beyond 400m/min, best film quality and film thickness profile

Flexibility - Automatic product changes Drastically reduced changeover time Highly flexible extrusion systems and resin feeding Accurate level control of the day silos Fully automated product change procedure

Flexibility - Multipurpose lines Synthetic Paper Barrier (EVOH) BOPE BOPLA OPET-G OPS Additional Investment for Multi-Purpose Preparation Dedicated BOPP Line, i.e. 5-layer, 6.6 m width

Flexibility - Simultaneous Stretching Pantograph Simultaneous Stretching Tenter Frame Double Bubble Fixed Stretching Ratio Flexible Stretching Ratio Spindle LISIM MESIM Proven technology since 1996 No wear & tear MD stretching ratio 10 Speed up to 450m/min Width up to 7.2 m Technology Centre / Pilot line for Upscaling, New products and Pre-marketing References: 3x BOPET 2x BOPP 2x Pilot lines 1x Optical Films

Flexibility - LISIM added value Customized shrink properties Superior barrier properties Advanced sealing properties Enhanced mechanical properties

Joint Project Along the Value Chain to Enhance Packing Properties at Reduced Costs Project coordination Film- Production Sequential & Simultaneous Metallization SiOx Lamination Print Adhesive Packaging End user Packaging properties e.g. haptics

Used Systems for Packaging Trials Current Standard Future Potential Peanuts 80 µm Film Compound BOPET 12µm // BOPPmet 15µm // PE-LD 50 µm 38 µm Film Compound BOPET 7µm // BOPPmet 18µm / PE-LLD 12µm Chips 40 µm Film Compound BOPPmet 20 µm // BOPP 20 µm 27 µm Film Compound BOPPmet 15µm // BOPP 12 µm New film laminates show equal or even better barrier properties

Example for Substituted Film Laminate 80µ -> 38µm Application: Peanuts BOPET,12µm, Reversed Print Lamination BOPP, 15µm, metal. Lamination PE-LD, 50µm BOPET,7µm Reversed Print Lamination BOPPmet,18µm, PE-LLD 12µm Material Gauge Remark 80 µm Actual Standard PET 12µm // BOPPmet 15µm // PE-LD 50µm Triplex Compound 2 Laminating Steps PET 7 µm // BOPPmet 18 µm / PE-LLD 12 µm 38 µm Future Potential Duplex Compound 1 Laminating Step

Tests Along the Added Value Chain Film production Metallizing Laminating Packaging Sensor Test Optics Mechanics Sealing OTR, WVTR Optical Density Process ability Process ability Acceptation Test In Progress

Mature Research & Development Brückner Technology Center Up to 7 layers with 6 extruders Extension to sequential and simultaneous operation by 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 parameters Advanced Manufacturing Management System (MMS)

Vision without action is a daydream, Action without vision is a nightmare! Japanese Proverb

Thank You!