A NEW PERSPECTIVE ON BOPP FILM

ORIENTATE is a newsletter dedicated to the global BOPP film industry. Published by the industry’s leading business consultancy for the BOPP film industry, AMI Consulting, and written and edited by David Terhune, one of the best known and most respected commentators on the industry, ORIENTATE, provides a unique, independent and authoritative view on the trends and developments in the BOPP film business around the world.

The BOPP film industry is a substantial international industry, which manufactures approximately 4.6 million tonnes (9.2 billion pounds) of film each year, enough to wrap the entire world in 15µ film. There are fewer than 200 companies which make BOPP film located all over the globe dealing with customers that are regionally focused, but service large multinational end users. Every year that passes the world in which we participate becomes smaller. What happens in China has a significantly greater effect on what happens in Europe or Mexico today than it did ten years ago.

BOPP film executives and managers are continually faced with decisions that affect the future direction of their organizations. Decisions related to the expanding or curtailing of production, replacing equipment determining if shut downs should be temporary or permanent as assets become relatively less efficient. Pricing is constantly being evaluated as costs change and the industry utilization rates fluctuate. New product development is often influenced by changing trends in the end user market place, enhancements in converter printing technology or advancements in the underlying resin polymer science.

In the past it was usually sufficient to have a good grasp of your respective regional markets. There was a greater difference in the packaging requirements of the converter markets and less of a global emphasis on sourcing. Today, it takes a broader understanding of the world market to make better decisions. At ORIENTATE our objective is very straight forward – to assist BOPP film executives and managers, as well as their suppliers, customers and end users to better understand the dynamic of the worldwide BOPP industry.

In addition to David Terhune’s monthly editorial analyzing developments in the industry, ORIENTATE also provides the only one-stop source for resin and film prices around the world. This is allied with all the latest industry news relevant for the BOPP film industry, be it resin or film capacity developments or news about what is happening in key end use sectors. This is backed up by monthly in-depth analysis of specific markets, using AMI’s unique knowledge and understanding from its consulting work. Each month there is an interview with a key industry player in the BOPP film industry to get their perspective on the trends driving the industry. Finally the newsletter gives the industry a platform to express its views and opinions through our regular Readers Forum column.

News with a difference

Each month ORIENTATE brings you all the latest news for the BOPP film industry from around the world. We don't just regurgitate press releases, we also look at the stories behind the headlines, commenting on what they mean for the industry. Mergers, acquisitions, new investments, capacity expansions and just as significant, de-commissioning and line relocations are reported. We don't just look for the press releases either, we seek out the stories and news that don’t always make it to the mainline packaging or plastics new sources.

Supplier news

The supply of polypropylene is vital to the industry so ORIENTATE reports on what is happening in PP markets around the world and what it means for the BOPP film industry. We also keep our subscribers up to date on new developments in resins, additives, slitter technology, coating innovations, enhancements in film line related equipment, including gauge measuring devices, stretching and extrusion equipment. In addition, we speak to developers about new innovations in printing and converting that may require refinement of BOPP film capabilities.

Customer news

In each issue we look at key developments within the major end use segments.

Events, people, studies

AMI provides the BOPP film and related industries a wide variety of conferences, strategy sessions and forums, in addition to numerous studies that can be very beneficial to our subscribers. Selective offerings in these areas, as well as other key industry conferences, are highlighted in each issue as are major personnel changes in the industry.

Summary of capacity changes

ORIENTATE summarizes the latest capacity changes in a handy table for quick reference Each month we provide a useful summary of anticipated (announcement expected), planned (investment announced but equipment supplier not named) and announced (equipment supplier named) around the world. So far for 2011 we know of more than 20 new lines. Below are a selection – the full list appears in each issue.

Film and resin pricing

While we would like to provide the industry with specific film pricing by region, by market, by gauge, that would be difficult. In each Region there are a range of prices for any product depending upon the volume purchased, the available capacity of the particular manufacturer at the time of a quotation or converter/end user agreement in place. What we attempt to do is indicate the pricing trends by region by using an average price over a rolling three-month period using benchmark films appropriate to that region. This is mapped against PP homopolymer resin pricing by region.

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In the spotlight

On a regular basis BOPP News features in depth articles on one of the industry’s leading companies. This is not limited to the major players but includes the leaders and up and coming BOPP film manufacturers in emerging regions. In addition to profiling the company, we have interviews with key executives. You might wonder why any company would want to be in the spotlight. Wouldn’t the company rather stay in the background and remain rather anonymous? Companies in the BOPP film industry are continually evaluated, talked about and profiled by their suppliers, customers and competitors, what AMI attempt to achieve is presenting a view that objectively positions the particular company. We believe that the principal reason we are able to successfully spotlight companies is that it is good for the company and good for the industry. Whenever possible we interview key executives and allow them to have input into our profile, as the accuracy of what we report is our driving force. As much as some people would like to think that the BOPP film industry is mysterious, it is a fairly straightforward business, with a well understood technology. Our belief is that a company benefits by having its customers, suppliers and, yes, its competitors all understand their position in the marketplace, their existing and new product offerings, their strategy going forward and how they are differentiated in the regions in which they participate.

Guest columnist

ORIENTATE is fortunate to have Mr. Ken Brooks, Senior Vice President of Ernst & Young Corporate Finance (Canada) Inc. as a regular contributor and guest columnist covering investment trends in the packaging industry. Ken is one of the foremost authorities on the worldwide packaging sector and has provided an extensive array of transaction advisory services. Ken Brooks offers a capsule overview of the M&A market and the related financing activities in the packaging sector. There has been a lot of talk in the BOPP film industry about consolidation, which could have a profound effect on how the industry is shaped going forward. We are pleased that Ken has agreed to contribute in this important area.

Reader’s forum

Many professional newsletters are one way streets, offering information and opinions about their respective industries. There are a number of gifted people in the BOPP Film industry with ideas and commentary that we would like to expose to the greater BOPP community. ORIENTATE is committed to serving the BOPP film industry and welcomes comments and criticisms by our subscribers on topics we have covered, as well as those we have yet to address.

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Regional Reviews

Another feature of ORIENTATE is its in-depth articles looking at specific markets or applications for BOPP film. AMI, the publisher of ORIENTATE, has the most extensive database on the participants in the industry, key markets and an understanding of the principal drivers in the industry. The following nine geographical BOPP film regional market segments are covered:

• European Union
• NAFTA
• Japan
• Eastern Europe and Russia
• Latin America
• Southeast Asia, India and Australia
• China
• Middle East and Turkey
• Sub-Saharan Africa

Europe, Japan and NAFTA, with the possible exception of Mexico, are mature markets and have distinctly different challenges than the other world markets. The balance of the markets for BOPP film are emerging and have higher growth potential. Finally, we believe that China is such a significant presence, with over 20% of the world’s BOPP film capacity, this market should be viewed separately.

The regional reviews cover highly detailed assessments of supply/demand of BOPP film including analysis of capacity utilisation, trade and end use demand.

Other reviews look at developments in end use markets such as:

• Biscuits & bakery
• Confectionery
• Labels
• Pasta
• Snacks & dried foods
• Other foods
• Tape
• Tobacco
• Emerging markets

BOPP FILM PRODUCERS DATABASE

In addition to the monthly newsletter, subscribers to ORIENTATE will also have internet access to AMI’s global database of BOPP film producers. The database of film producers gives information on production, film lines, types of film produced and ownership.

Who should subscribe

First and foremost this publication is directed at the executives and managers in the BOPP film industry. In addition, we believe ORIENTATE will be of interest, and assist industry suppliers of equipment, resin and specialty products. Converters that utilize BOPP and end-users that design products that rely on BOPP film should also be keenly interested in the direction and trends in the BOPP industry. Finally commercial and investment bankers that follow companies in the packaging sector or have an interest in investing in packaging companies would also have an interest in what is taking place in the worldwide BOPP industry.

About the editor

David Terhune is the President of Insyte Services, LLC a consulting company he formed in 2006 to provide a wide array of services, including foreign sourcing, refinancing and restructuring, business and acquisition planning, due diligence and acquisition integration as well as other advisory services to the packaging and other industries. Most recently, David served as the President, Chief Executive Officer and Director of Applied Extrusion Technologies, Inc. one of the world’s leading developers and manufacturers of oriented polypropylene films. Mr. Terhune joined AET in 1994 and under his direction AET doubled in size through its technological innovations and capacity expansions, and is now a leader in the North American oriented polypropylene films marketplace.

About the publisher

Applied Market Information Ltd is the leading strategic industry consultants for the global plastics industry. Since 1996 it has regularly published its authoritative market report of the global BOPP film industry and it is also the organisers of the BOPP Film conference, recognised as the leading meeting place for the industry.

Cost, distribution and frequency

AMI publish ten issues per year. The full annual subscription fee is USD 1,750 but for companies who sign up before the 31st March 2011 a special discounted rate of USD 1,500 will apply. Delivery is by downloadable pdf. Each month subscribers receive a link to the AMI website and a password to enable them to download the newsletter and access the BOPP film database. Substantial discounts are available to companies which require multiple downloads (from different e-mail addresses). Please contact Sarah Phillips at AMI for details: sjp@amiplastics.com

ORIENTATE is published by:
Applied Market Information Ltd., AMI House, 45-47 Stokes Croft, Bristol BS1 3QP, United Kingdom Tel: +44 117 9249442 Fax: +44 117 9892128 www.amiplastics.com
Publishing Director: Andrew Reynolds apr@amiplastics.com
Editor: David Terhune, Insyte Services LLC, Montchanin, Delaware, USA Tel: +1 302 778-1113 InsyteServices@comcast.net AMI Editor: Carole Kluth cmk@amiplastics.com
Subscriptions: Sarah Phillips, AMI Tel: +44 117 9249442 sjp@amiplastics.com