Intertape Polymer Group Announces Agreement to Acquire Nortech Packaging

MONTREAL, QUEBEC and SARASOTA, FLORIDA – February 10, 2020 – Intertape Polymer Group Inc. announced it has entered into a definitive agreement to acquire substantially all of the operating assets of Nortech Packaging (“Nortech”) for cash consideration of approximately $36.5 million, subject to certain post-closing adjustments and potential earn-out consideration. All amounts are in US dollars.

 

 

Nortech manufactures, assembles and services automated packaging machines under the Nortech Packaging and Tishma
Technologies brands. Its custom-infeed and robotic solutions for packaging applications are designed for cartoning, casepacking, case-erecting, pouch-packaging and palletizing. A privately-held company based in the greater Chicago, Illinois area, Nortech services customers worldwide across major industries including food, pharmaceutical, e-commerce, confections, personal care and cosmetics, and beverage.

The acquisition will expand IPG’s product bundle into technologies that are increasingly critical to automation in packaging. Automation system design and service are key capabilities in growing markets like e-commerce. With an installed fleet of more than 400 machines, the acquisition provides IPG with opportunities to supply consumables to the existing fleet, as well as deploy system-selling for new customers combining machines with ongoing consumables. The acquisition will add engineering automation and integrated robotic design talent to IPG’s existing engineering and design teams. Upon closing, IPG expects these new capabilities will allow it to service customers experiencing growth pressures that require a customized automation
solution. “Packaging automation and system design are playing an increasingly important role in our customer’s competitive positioning, especially in the e-commerce market. We believe this acquisition will provide us with the opportunity to move upstream in our target customer’s production process with an expanded product bundle and a continuous supply of consumables,” said Greg Yull, President and CEO of IPG. “We have laid out a clear strategy to further strengthen our product bundle and continue to grow with our e-commerce customers as they expand around the globe. This acquisition delivers on both fronts. We remain committed to paying down debt moving forward as our cash flows improve with contributions from our recent capex investments
and our earlier acquisitions. At the same time, we will continue to be disciplined in our approach to acquisitions that strengthen our product bundle or offer strategic benefit to IPG meeting our customer’s needs.” The acquisition is subject to customary closing conditions and approvals and is expected to close in the first quarter of 2020.

Financial Highlights of the Acquisition

In the last twelve months, Nortech’s sales were approximately $20 million with Adjusted EBITDA (as determined consistent with IPG’s definition, as provided in its historical public filings) of $5.5 million. The upfront purchase price represents an Adjusted EBITDA multiple of 6.6x. The purchase price, when including the tax basis step-up value, represents an Adjusted EBITDA multiple of 5.7x without any consideration given to potential revenue synergies. In addition to the upfront purchase price, the sellers will be eligible to receive additional consideration contingent upon certain future performance measures of the acquired assets. This additional consideration is expected to be in line with the upfront Adjusted EBITDAmultiple announced today. IPG expects the acquisition will be accretive to net earnings in 2020 excluding deal costs, integration costs and noncash purchase accounting adjustments. In total, deal and integration costs are expected to be approximately $2.4 million, with the majority of these costs expected to be recognized by the end of 2020. No cash or debt is expected to be acquired in the transaction. IPG expects to finance the acquisition with funds available under its $600 million credit facility.

About Nortech

Nortech is a full-service Chicago-area company founded in 2003, which acquired Tishma Technologies in 2016. Nortech specializes in both delivering and providing after-market servicing of world-class packaging machines designed for cartoning, case-packing, case-erecting, pouch-packaging, palletizing and other custom-infeed and robotic solutions for various packaging applications. Nortech designs and manufactures high-quality, high-efficiency packaging machinery, and packaging systems that are used worldwide in most major industries including food, pharmaceutical, ecommerce, confections, personal care and cosmetics, beverage, and many others. Nortech employs approximately 70 employees at its sole location in Schaumburg, Illinois.
For more information about Nortech, visit www.NortechPackaging.com and www.tminn.com.

About Intertape Polymer Group Inc.

Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of paper- and filmbased pressure sensitive and water-activated tapes, polyethylene and specialized polyolefin films, protective packaging, woven coated fabrics and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota, Florida, IPG employs approximately 3,600 employees with operations in 30 locations, including 21 manufacturing facilities in North America, four in Asia and one in Europe. For more information about IPG, visit www.itape.com.

Forward-Looking Statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, “forward-looking statements”), which are made in reliance upon the protections provided by such legislation for forward-looking statements. All statements other than statements of historical facts included in this press release, including statements regarding: the closing of the acquisition, including the expected timing; the purchase price for the acquisition and the funding of such purchase price; the benefits that the acquisition is expected to bring to IPG’s business, operations, and financial results; the expansion, enhancement and extension of IPG’s product offering and global presence and the opening of additional industry verticals; the strategic fit of Nortech with IPG’s existing product portfolio and operations; IPG’s reinforcement if its presence in existing product lines and customer channels, as well as access to new business segments; expected revenue, adjusted EBITDA, earnings and expense synergies; that the acquired operations will be accretive to net earnings in 2020; our paying down of debt; and the expected deal and integration costs and timing of such costs may constitute forward-looking statements. These forward-looking statements are based on current beliefs, assumptions, expectations, estimates, forecasts and projections made by IPG’s management. Words such as “may,” “will,” “should,” “expect,” “continue,” “intend,” “estimate,” “anticipate,” “plan,” “foresee,” “believe” or “seek” or the
negatives of these terms or variations of them or similar terminology are intended to identify such forward-looking statements. Although IPG believes that the expectations reflected in these forward-looking statements are reasonable, these statements, by their nature, involve risks and uncertainties and are not guarantees of future performance. Such statements are also subject to assumptions concerning, among other things: business conditions and growth or declines in IPG’s industry, IPG’s customers’ industries and the general economy; the post-closing performance of Nortech, including the expected Adjusted EBITDA, revenue and expense synergies; the anticipated benefits from IPG’s other restructuring efforts; the anticipated benefits from
IPG’s acquisitions; the anticipated benefits from IPG’s capital expenditures; the quality and market reception of IPG’s products; IPG’s anticipated business strategies; risks and costs inherent in litigation; IPG’s ability to maintain and improve quality and customer service with current and new customers; anticipated trends in IPG’s business; anticipated cash flows from IPG’s
operations; availability of funds under IPG’s credit facility; and IPG’s ability to continue to control costs. IPG can give no assurance that these estimates and expectations will prove to have been correct. Actual outcomes and results may, and often do, differ from what is expressed, implied or projected in such forward-looking statements, and such differences may be
material. Readers are cautioned not to place undue reliance on any forward-looking statement. For additional information regarding important factors that could cause actual results to differ materially from those expressed in these forward-looking statements and other risks and uncertainties, and the assumptions underlying the forward-looking statements, you are
encouraged to read “Item 3 Key Information – Risk Factors”, “Item 5 Operating and Financial Review and Prospects (Management’s Discussion & Analysis)” and statements located elsewhere in IPG’s annual report on Form 20-F for the year ended December 31, 2018 and the other statements and factors contained in IPG’s filings with the Canadian securities regulators and the US Securities and Exchange Commission. Each of these forward-looking statements speaks only as of the date of this press release. IPG will not update these statements unless applicable securities laws require it to do so.

FOR FURTHER INFORMATION CONTACT:
Ross Marshall
Investor Relations
(T) (416) 526-1563
(E) ross.marshall@loderockadvisors.com

 

Packaging Industry Trends For 2020

The packaging industry is a huge economic generator on a global scale. Demand for the world packaging industry will reach $1.05 trillion by 2024, according to the statistics from the well-recognized Smithers Pira organization. This enormous growth rate is driven by consumer trends and industry trends, and we are going to examine those trends in the following lines.

 

REVOLUTION IN DIGITAL PRINTING

The new decade will be dominated by digital technologies. Digital printing uses computer generation as the main mechanism behind product packaging design and creation of the images or graphics that will appear on the packaging. Today, digital printing influences every aspect of the packaging, and this trend will continue.

In comparison to mechanical processes like typesetting, digital printing allows packagers far more freedom in personalization and customizing options. 

During the past decade, most packaging companies switched from analog to digital printing. However, complete retooling of a factory takes time. In 2020, there are only a few companies that haven’t yet got on the digital train and made that progressive investment.

In this decade, the packaging industry reached a tipping point. The use of conventional presses declined, while the use of digital presses grew. A trend of “printing on-demand” emerged since digital printing technology allows all colors to be printed in a single pass. Studies say this demand will only grow. By 2024, it is estimated the global digital printing packaging market will reach $28 billion, which proves a significant trend change in the packaging industry.

 

PERSONALIZED PACKAGING

Customization and personalization of products became much easier due to digital printing. This trend has been building for a few years, and it has a major industry impact in 2020. Many of the top product brands found a significant return of the investment with personalized packaging. One report cites that 70% of marketers believe personalization has a strong and powerful impact on their customers.

Personalization allows a company to stand out from competitors by promoting their name and brand in an impactful way. 

Here are three successful examples of the personalized packaging trend.

  • Coca-Cola printing people’s names on their soft drink containers
  • Frito-Lay printing faces on their potato chip packages
  • Bud Light printing football teams on their beer cans

More and more brands are even beginning to target extremely narrow markets with their packaging. For example, Anheuser-Busch designs their Busch and Busch light beer cans using the outdoor motives, to appeal to hunters, fishers, and other outdoorsmen. During hunting and fishing seasons, they have a “hunt” for a particular can, which can win you gear and even a hunting trip paid for by the company. 

Allowing individuals to identify with a brand’s product is what lies behind the success of this trend. Smart marketers know people relate to stories as much as they do to brand names. If you want your product to be irresistible, present its package in a story-like way that connects to consumers on an individual level. 

 

TRANSPARENCY AND CLEAN LABELS

Another strong packaging industry trend for 2020 is presenting product information clearly and transparently. Consumers today have easy access to a lot of information, and they can educate themselves about product choices. A smart consumer wants to know what the product they buy contains and which packaging methods were used.

“Transparency” refers to manufacturers being completely open and honest about what the products contain. “Clean” means products are safe and don’t contain harmful ingredients. If you want to promote trust in the company’s brand name, pack your product in a way that makes content information clear, concise, and open. 

More and more U.S. consumers are scanning food packages with their smartphones to find out exactly what they contain. Brands answered the clean and transparent trend in 2020 with the implementation of Smart Label™. The label code immediately connects consumers to a landing page with transparent information about how clean this choice may be. Transparency will likely remain one of the demands in 2020 as consumers are more likely to purchase a newly launched food product that has clear product information.

 

PLAYFUL COLORS, DESIGNS, AND GRADIENTS

Many companies recognize how well intense colors, designs, and dramatic effects stand out. They also see how well this trend results in increased sales volume. In 2020, this trend will remain stable. 

Humans respond well to packaging with unique designs and colors. Information from the Pantone Color Institute states people experience 80% of their awareness from sight. Loud colors like neon green and bright yellow quickly attract a person’s attention. So do effects like shining metallic sheens and reflective surfaces.

Good packaging design is supposed to grab hold of a consumer’s notice and retain the memory. According to studies, people make subconscious decisions about buying products within the first minute and a half after observing it, and color often plays a big role in this decision.

2020 will be marked by the continued dominance of bold packaging colors along with the rise of playful graphics on packaging. Brands targeting a youthful audience are advised to use unique typography and quirky design to convey a lightheartedness that suits their target group. The popularization of color gradients is another trend within unique package graphics. Gradients are incredibly dynamic because they provide complexity without adding busyness. This subtle yet striking visual effect is the main reason why brands are adopting gradients and applying them everywhere – from logo design to packaging design. 

 

GROWTH IN FLEXIBLE PACKAGING

 

One of the trends that continue to gain great popularity is flexible packaging. The products that were once restricted to rigid and hard materials today can be packed in flexible packaging, due to technological advancement in flexible packaging materials.

The United States accounts for approximately $170 billion in the global packaging market. The Flexible Packaging Association reports the flexible packaging segment accounts for 19% of the total U.S. packaging market.

Flexible packaging has many advantages over rigid packages due to the following factors:

  • It is easier to store.
  • It has an extended shelf life.
  • It is more convenient to open.
  • It is highly practical to close or reseal.
  • It has a more attractive shelf appeal.
  • It uses less material.
  • It has improved cost economics.
  • It weighs less.
  • It has better shipping characteristics.
  • It is better suited for e-commerce.

Material advancement is one of the reasons why flexible packaging is such a prominent trend. For years, most flexible packaging materials were polyvinyl chloride, which was environmentally hostile because this plastic wouldn’t break down or decompose. Today, most flexible packaging uses materials made of polyethylene, polyethylene terephthalate, or polypropylene. These high-tech plastics deteriorate when discarded, but stay durable when in use. 

New end-of-life recycling programs are trending and propelling flexible packages even more. Smithers Pira reports the flexible packaging industry will grow by 3.3% each year to reach $269 billion in 2024.

 

RECYCLED PACKAGING PRODUCTS IN USE

 

The recycled packaging trend has never been so popular. The recycling movement started a generation ago, guided with the 3-R principle: reduce, reuse, and recycle. Today, the 3-R model creates a circular economy, and it became a standard for how proper product packaging performs. Recycling has now become firmly embedded in the American psyche.

Recycled packaging is part of the worldwide sustainability movement. For years, the vast majority of packaging waste found its way to landfills, while the mass of non-perishable plastics is currently floating in the oceans. 

That pollution cannot be ignored, and many consumers want to do what they can to prevent it. That is why they’re choosing products in recyclable packaging.

In 2020, businesses are also expected to join the recyclable packaging movement. For example, Amazon is taking action and requiring its vendors to meet waste-efficient packaging standards or pay a $1.99 fee per package. Also, over 400 organizations have signed the New Plastics Economy Global Commitment, committing to increase their recycled packaging by 25% by 2025.

The packaging material industry is also influenced by technology. Advancements in plastic and paper chemistry now allow recycling to be more comfortable and more convenient than ever. Federal, state, and local authorities also promote and encourage packaging recycle programs. Consumer choice and company action are some of the main things driving the 2020 trend toward recycled packaging products. People avoid purchasing anything packaged in non-recyclable materials, and companies are switching materials to accommodate.

 

LABEL PRINTING OVER STICK-ON SHIPPING LABELS

Stick-on shipping labels used to be the standard in product packaging. Before the product went out the door, the shipping labels were the last things to go on a packaged product. Back in the old days, this made sense, because most packages were complete before the shipper knew their destination.

2020 announces the end of this shipping label trend. Now, many sellers already know their recipients, so they package their products on demand. 

Digital printing has replaced stick-on shipping labels in many businesses. Label printing directly on packaging removes one step in the distribution process, thus lowering the costs. 

 

CORRUGATED PACKAGING

 

Online shopping grows rapidly, and e-commerce packaging has become more important within the packaging industry. Due to its stable structure and sustainable qualities, rigid packaging, such as corrugated packaging, will dominate the sector.

The focus on sustainability and plastic replacement is increasingly at the forefront of packaging strategy for leading brands, which is why most of them are replacing single-use plastic with widely recycled material – such as corrugated.

Innovations such as reusable printed sleeves that sit over multiple-use corrugated boxes will help ensure that brands can meet consumer demands for sustainable and more environmentally friendly packaging solutions.

 

Tishma Technologies and Nortech packaging will stay devoted to providing highly efficient packaging equipment that will allow manufacturers to keep the step with the time.

If you want to pack your products in some kind of corrugated packaging, make sure to check out our cartoners, tray packers, and case packers.

If you think flexible packaging is more appropriate for your product, make sure to learn more about our pouch packaging solutions, suitable for all kinds of recyclable and non-recyclable pre-made pouches.

 

Rising Challenges in Pharmaceutical Packaging Industry

Rising Challenges in Pharmaceutical Packaging Industry

One of the most widespread industries across the globe is the ever-evolving packaging industry. Once, the role of packaging was to simply ensure that the product was carried from one place to another. Packaging used to be a simple tool. As the industry grew, the function of packaging expanded. Packaging now serves many purposes such as branding, quality control, safety, and security of the product. Developing the right packaging that will serve all required purposes can be particularly tricky in the pharmaceutical industry.

Revenues that this industry is consistently generating witness about the rise of the industry itself.

In 2018, the pharmaceutical packaging market was valued at approximately $71.0 billion and is projected to grow at a compound annual growth rate (CAGR) of nearly 6% during 2019-2029, leading to an estimated valuation of the market to be $149.3 billion by 2026. Popular report repository, Research, and Markets forecast the pharmaceutical packaging market growing at an impressive CAGR of 8.75% during the 2017-2026 period.

Emerging markets like India, China, Brazil, Russia, and Turkey are contributing to this growth. Growth is also facilitated by the fact that healthcare becomes more accessible amidst growing as well as the ageing population.

Due to the sensitive nature of products, the pharmaceutical packaging industry faces a lot of challenges. Inappropriate packaging can cause chemical alterations in the product affecting the product’s curative ability and effective performance. This is why the pharmaceutical industry is subjected to rigid packaging standards and often faces a variety of challenges we will further discuss.

 

 

  1. Safe Transportation of non-solid medication

Pills and tablets are simpler to handle due to their ability to be stacked. On the other hand, liquid medication and injections, especially with glass packing are much more difficult to handle because of their fragile nature. To try and counter this problem, the pharmaceutical packaging industry is integrating innovative solutions like foam packaging and rotomolded cases to prevent glass packaging from breaking down.

 

  1. Retaining medicinal quality of the products

Due to sustained exposure to heat as well as humidity, the pharmaceutical product may lose its healing capabilities which presents one of the major challenges that the industry faces. The pharmaceutical packaging materials must be chosen very carefully and should not let external factors affect the product, otherwise, the product may become completely useless.

 

  1. Accurate Dosage and Drug Information

Consummation according to the prescribed dose is crucial for any medicine. To avoid any confusion, the packaging must contain necessary dosage information, as well as information about the drug that it is composed with. Other valuable information like expiry date and the serial or batch number should also find a place on the packaging to simplify tracking and prevent misuse. Parameters like a minimum age for safe consumption of the drug should also be displayed on the packaging

 

  1. Newly developed drugs conflicting with packaging material

Many innovative and new-age drugs are in conflict with the materials being used to packaging them. For example, certain drug combinations lead to flaking of glass packaging. Another example is when silicone oil is being used in prefilled syringes to lubricate the plunger in. The lubricant often disturbs the composition of the protein complexes, compromising the quality of the product. The need for newer pharmaceutical packaging materials is rising.

 

  1. Averting Forged Products

Forged drugs are on the rise due to so many products from a variety of brands flooding the market. Potential side effects these drugs might have on the customer cannot be underestimated. Pharmaceutical packaging is an important aspect of the prevention of this major problem. Research and innovation in this domain have led to an increase in scannable codes, hologram stickers, UV prints that ensure that official products stand apart from the fake ones.

 

  1. Adhering to Regulatory Standards

A pharmaceutical company may be selling the same product under different names in different markets. As the companies produce those drugs on a single Process line, the task of printing, labeling, and packaging becomes complicated.

 

  1. Awareness and Education of Medical Practitioners and Consumers

Consumer needs to be aware of the contents of the packaging and proper usage of the product. Wrong medicine or improper dosage can have a severe, sometimes fatal effect on consumer’s health. Proper direction of use needs to be printed on the packaging in order to ensure the safe and secure use of the medicine.

 

In line with all current standards in the Pharmaceutical industry, we are offering high-speed, state-of-the-art secondary packaging machinery for most pharmaceutical products: pills and tablet blisters, vials, ampoules, syringes, stick packs, and sachets, etc. Tishma Technologies’ packaging equipment is custom made according to your specific needs offering precision, superior product handling, speed, and efficiency. Each cartoning and case packing machine is available with various printing and labeling add-ons which are pretty crucial in the pharma industry due to recent track-and-trace laws and demands for serialization.

 

CLICK HERE TO LEARN MORE ABOUT OUR PHARMACEUTICAL PACKAGING SOLUTIONS

 

 

Trends and Impressions from Pack Expo 2019

Pack Expo 2019 has ended, and it is about time we wrap up our impressions. We got the chance to showcase our latest achievements in the field of packaging machinery, and we also got familiar with the latest industry trends!

The packaging industry is evolving, new technologies emerge, and these are the most exciting trends we noticed.

 

Industry 4.0 is the next big thing

Industry 4.0 refers to the Internet of Things, block chain, artificial intelligence, and smart manufacturing. Last year it all seemed like just an idea, but today it is a reality. We believe that this trend of obtaining and utilizing data to improve processes will be on the constant rise, thanks to the continued development of sensor technology.

 

Robotic automation is the future

Each manufacturer dreams of an efficient, cost-effective, and accurate production line. Robotics automation is making this possible. Tishma Technologies regularly utilizes robots for case erecting, case loading, product collating, bundling, palletizing and depalletizing. Modern sensor systems allow for the expanded use of robotics for various applications, from safety solutions for collaborative robots to vision-based robot guidance systems.

 

 

Future-Proofing automatic print inspection

One more significant trend was improving quality control and print inspection for packaging labels. Packaging types are becoming increasingly complex, and the frequency of artwork changes and promotional offers is rising. Manufacturers are facing a challenge: reducing or eliminating any errors in the coding and packaging of products. Reducing errors is especially important in industries where these kinds of mistakes can cause a risk to consumer health. Tishma Technology will continue to respond to these kinds of challenges with our integrated code printing, serialization, labeling, and inspection solutions!

 

Our exhibits

This year at Pack Expo you got to chance to see FOUR of our latest packaging solutions built and designed to increase your efficiency: TT-50 Vertical Cartoner, TT-1200 Top Load Case Packer, TT-1300 Side-Load Case Packer, and ROO-100 Pre-Made Pouch Fill & Seal Machine. Watch the video below, and take a look at the small part of the Pack Expo atmosphere and learn more about our cartoning, case packing, and pouch filling solutions!

 

Our Latest Project: TT-60TG Tray Packer for Home Care Product Blisters

Shelf ready packaging can provide numerous advantages for product manufacturers and for product distributors, which is why the demand for shelf-ready packaging solutions continues to rise.

Recently, we had the chance to design and build a shelf-ready packaging machine for the product we are all familiar with: Glade Air Freshener plug-ins that are primarily packed in blister packs.

Our task was to design and build a tray packer that will respond to all packaging needs the client specified.

The packaging solution we built can form and load 35trays per minute and it responds to all packaging challenges our client is facing. In the following lines, we will go through the machine’s features and explain how each of these features is useful when it comes to tray packaging.

 

 

Accommodating Two Tray and Blister Sizes

One of our client’s requirements was a flexible packaging solution that can handle two tray and blister sizes with a quick changeover, thus eliminating costly downtime. We managed to respond to this request by building a TT-60TG Tray Packer that features a user-friendly interface and allows quick and easy changeover. In order to facilitate easy set-up, changeover adjustments are performed by servo motors.  The TISHMA calibrated scale reference helps to ensure quick and accurate change-over procedures and to eliminate trial and error techniques.

 

Reliable Blister Delivery with the 4-1 Lane Merge Conveyor

Blisters are received in a single lane, lying flat on a conveyor with the bottom side leading. A Servo Driven Race Track Collation System introduces blisters into race track pockets and re-orients them into the upright position. Groups of five or six blisters are placed into the formed trays.

 

Tray Forming and Filling

Flat blank trays are stored in two vertical carton magazines. A plunger style forming system is used to form the blank trays. Tray flaps are closed using a series of stationary and mechanical plows. Once in position, a Nordson Hot Melt glue system applies glue and the trays are sealed. The groups of five or six blisters are placed into the formed trays by the pick-and-place system.

 

 

Sensor Systems

TT-60TG Tray Packer features two sensor systems, one located at the tray forming station, and the other located at the tray filling station. The first sensor system is in charge of open flap detection and rejection, while the other group of sensors detects the correct amount of blisters in a tray or rejects the tray.

 

Safety Features

The TT-60TG Tray Packer is compliant with Cat-3 safety standards.

The machine is guarded by hinged door safety covers of polycarbonate panels on stainless steel frames secured by spring-loaded latches.  These full-length guards allow for convenient visual inspection by both operators and maintenance engineers. An Audible start-up signal indicates the beginning of operations.

The Machine also features two E-stop buttons that can immediately stop the machine and remove power from the main control in the case of an emergency.

 

Instead of Conclusion

With the rising environmental issues, it is important to note that good shelf-ready packaging can generate savings not only in dollars but in carbon as well. More products per pallet can be dispatched, which leads to fewer pallet movements. Easy transport leads to fewer delivery vehicles on the road. Easy stacking means less warehousing for empty packs and goods waiting to be dispatched. Since there are no extra collation packs inside shelf-ready trays, shelf placement requires less time and energy.

Our client recognized the advantages of shelf-ready packaging and decided to invest in a reliable tray packaging system.

Acknowledging his specific needs is what being a good packaging machine manufacturer is all about. Challenges help us grow.

So, if you are in search of a tray packaging solution, don’t hesitate to contact us!

Nortech Packaging and Tishma Technologies are coming back to Las Vegas

We are continuing our tradition of showcasing our latest accomplishments in the field of packaging equipment on one of the largest events in the packaging industry – Pack Expo. Pack Expo will take place from 23rd to 25th of September in Las Vegas Convention Center, and Tishma Technologies and Nortech Packaging will be there, featuring their most wanted packaging solutions.

 

These packaging machines are fully customizable, and they can be adapted to each client’s specific packaging needs. This year, you will get to chance to see FOUR of our latest packaging solutions built and designed to increase your efficiency!

 

CLICK ON THE PICTURE FOR FREE REGISTRATION

Tishma Technologies’ cartoners are well known for their robust simplicity, user-friendliness, and compact footprint. This year you will get a chance to see one of our most compact vertical cartoners in action. The TT-50 Vertical cartoner can reach speeds up to 140 CPM, and it is perfect for continuous motion applications. The TT-50 Vertical Cartoning Machine is available with automatic bottle loading and count weigh scale interface. Carton pockets assure positive carton setup and carton squareness.

TT-50 features 36+’’ powered magazine with rotary carton feeder. It can handle tuck, glue, header, gable, flip-top and hex style carton styles. Carton loading is manual but automatic bottle loading or count/weigh scale interface are also an option. Manual models of TT-50 are available in 3 different lengths, so you can choose according to your floor space. Built from welded tubular stainless steel with hinged cover panels and safety electrical interlocks, TT-50 is small yet powerful cartoner, made according to highest standards.

Beside the TT-50, Tishma will also be presenting one of its most compact case packers; the TT-1200. This small case packer features flexible speeds, multiple pack orientations; low case loading height and it can reach speeds up to 16 cases per minute. Its compact overall footprint makes it an ideal solution for new and small businesses that want to automate their case packing process without sacrificing large amounts of floor space.

 

Another piece of packaging equipment you will get to see at Pack Expo is our TT-1300S side-load case packer which provides flexible collation systems and high-speed product handling. Models are available with pre-stacking case conveyors, tape and glue closing, user-friendly HMI operator interface and small overall footprints. TT-1300S case packer can feature manual, robotic or collation system case loading.

 

Last, but not the least, this year in Chicago you will get a chance to see the most popular innovation by Nortech Packaging: the ROO-100 Premade Pouch Fill and Seal machine. The ROO-100 decreases downtime and increases efficiency, but most importantly; it is very competitively priced and it utilizes a minimum of floor space. Custom recipe presets allow for fast 30-second push-button changeovers so you can handle a wide range of pouches and products with a single machine!

 

ROO-100 Pack Expo 2019

CLICK ON THE PICTURE FOR FREE REGISTRATION

So, whether you are a big company representative or an aspiring entrepreneur, we look forward to meeting you and helping you to increase your efficiency! Visit us on booth #US7242 and let’s get the automation started!

SEE MACHINES IN ACTION!

SEE MACHINES IN ACTION!

Compact Portable Vertical Cartoner

For Hand Load Or Automatic Applications

The 50 series of top load cartoners feature compactness, portability, simple operation and quick changeover. The TT-50 Vertical Cartoning Machine is available with automatic bottle loading and count weigh scale interface.

TT-50 Compact Portable Vertical Cartoner Las Vegas 2019

Automatic Top Load Case Packer

For Casing Of Pouches, Boxes, Cans, And Bags

The TT-1200 is an ideal piece of case packing equipment for big players and new or small businesses that want to improve case packing automation in their production facility without compromising valuable floor space.

Automatic Side-Load Case Packer

Perfect Shipping and Stacking Solution

The TT-1300 Case Packing Machine provides flexible collation systems and high speed product handling.

Automatic Pre-made Pouch Fill & Seal Machine

One Touch Changeovers, A Compact Overall Footprint, And Decreased Downtime

The ROO-100 Pre-made pouch fill & seal machine can pack almost anything into a stand up doypack pouch. This automatic pouch packaging machine can handle a wide range of pre-made flexible bag sizes and it is available with all standard infeeds and filling systems.

ROO - 100 Pre-made Pouch Fill and Seal Machine Tishma Technology

Challenges in E-commerce Packaging

The e-commerce market and its ever-expanding assortment of players made one of the biggest impacts on protective packaging in 2019. According to the E-Commerce: Think Inside the Box report by PMMI, The Association for Packaging and Processing Technologies states that product protection is the main issue in E-Commerce packaging. Growth in online purchasing drives changes from product design, to package changes, picking, fulfilling and shipping, and in this new scenario, a package’s ability to protect the product against breakage becomes it’s most vital function.

 

Challenges in e-commerce packaging

 

Protection Over Promotion

 

Companies that produce consumer packaged goods and brand manufacturers are turning to various new channels to get the product to the consumer, which results in adding more touch points and creating the need for packaging that will protect a product rather than promote it.

Customers are purchasing an increasing number of products digitally, and in most cases, they are making their purchasing decisions on items presented package free.

This led to a shift from packaging’s traditional role, which is to draw consumer attention on store shelves. Since products aren’t sent through traditional retail channels, they usually aren’t shipped on pallets, where padding and wrapping are used to protect the product.

In the retail store, a product is touched six to seven times from the moment of packaging to the time the consumer takes it from the shelf. This number increases to around 20 to 30 touches in e-commerce, which is significantly raising the risk of damage.

 

 

Flexibility above all

 

E-commerce businesses usually sell various products and they often need to pack different combinations of products in a single carton or case for shipping. This requires flexible packaging solutions and machines that can handle various carton and case sizes and different products. This is probably why most of the cartoning and case packing solutions will rely on robotics and robotic infeeds in the future. Pick and place robots offer the level of flexibility e-commerce packaging requires.

 

 

Maintain the brand image

 

Online shops offer affordable, or even free, delivery which is why more and more customers are turning to online shopping. Besides packaging that can withstand day- or week-long journeys with the post office, e-commerce businesses are also striving for packaging that will reinforce a consistent and positive brand message.

Every business must decide what packages should be used to transport products across the country or even internationally. Some companies opt to spend a bit more money in order to make a stronger impression to the consumer, while others make all choices based on cost savings.

Since packaging can be found in low and high qualities, a retailer’s ultimate goal is to use affordable material with strong enough quality. Some brands, known for their low prices can get away with lower-end packaging choices thanks to its brand’s reputation, while luxury companies must use packaging that helps each order feel completely personalized and unique. This type of packaging might be thicker, with tissue paper and even a thank-you card on top.

Packaging demands change with the demands of the market, and packaging machine manufacturers are expected to design and develop packaging machinery that will respond to the challenges that emerge with changes. That is why at Tishma Technologies, we constantly strive towards innovation in order to overcome any packaging challenge that comes our way.

 

Our Latest Project: TT-400 Vertical Cartoner for Candy

Just Born is the ninth largest candy company in the country, and naturally, we were more than happy to design and build a packaging machine for such a big name. Just Born Quality Confections is a third generation, family-owned candy manufacturer that has been in business since 1923 and is known for its iconic brands. One of those brands is the Mike and Ike brand which was first introduced in 1940. Mike and Ike are oblong fruit-flavored chewy candies that come in several colors and varieties, including cherry, orange, lime, lemon, and strawberry. Our task was to design and build high-speed vertical cartoner for Mike and Ike candy that will respond to all packaging needs client specified.

Packaging solution we built can handle over 600 cartons per minute and responds to all packaging challenges our client is facing. In the following lines, we will go through the machine’s features and explain how each of these features is useful when it comes to candy packaging.

TT 400 Top Load Cartoning Machine

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Loading Three Different Size Cartons with Easy Changeover

MIKE AND IKE® is Just Borns largest brand by dollar sales and is a top-selling fruity, chewy candy brand available in a wide array of flavor varieties and package sizes. A brand like this demands a flexible packaging solution that can load multiple carton sizes with a quick changeover and a minimum of costly downtime. We managed to respond to this request by building a TT-400 vertical cartoner that loads three different size cartons and features a user-friendly interface that allows quick and easy changeover.

Reliable Candy Delivery with the UltraTrack System

Product spillage and empty cartons both result in a waste that every company wants to minimize or completely avoid by using a good and reliable top-load packaging system. That is why TT-400 vertical cartoner for candy products includes UltraTrack product Handling System. This system provides No-Product/No-Carton, No-Carton/ No-Product Functionality which means that cartons won’t be picked off and set up if there is no product to be fed to cartons, and no product will be is released if the carton isn’t a previously set up.

Precise Volumetric Filler Station

Based on our experience, we knew that volumetric filler is a good choice for the free-flowing product such is Mike and Ike chewable candy. Volumetric cup fillers measure out a product in a cup of specific, predetermined volume. This type of filler is suitable for the precise filling of products at both low and high. speeds.

Vibrating transfer funnels for eliminating product bridging

Bridging is a case where the product that is being discharged or fed forms a bridge or arch over the feed auger or discharge point in a silo cone/hopper. This condition results in the product not flowing as desired. In this case, vibrating transfer funnels were used to secure appropriate product transfer and prevent product bridging; candy product is gently streamed through the transfer spouts and vibrated to allow settling.

Top Flaps Glue-Closing Station

Sealing is among the most important processes employed in the packaging industry. Sealing processes ensures the protection of the products avoiding situations like loss of the quantity of the product, quality degradation and damage to the goods during transit. Based on the carton style used by our client, TT-400 Candy Cartoner features top flaps glue-closing station.

 

TT-400 Vertical Cartoner Features

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Integrated High-Speed Laser Printer

Variable data printing on packaging is growing rapidly and shows no signs of slowing down anytime soon. Whether it is variable barcodes, QR codes or a unique ID that is being printed onto folding cartons, it is important to make sure the printed or encoded data is legible, readable, accurate and error-free. According to the client’s demands, TT-400 vertical cartoner features integrated high-speed laser printer.

Integrated In-Line Metal Detector

In the food production industry, metal is one of the most commonly found contaminant materials in food. A metal detector for the food industry ensures the safety and integrity of packaged goods. Besides that, metal detection systems can be utilized to provide compliance with food safety standards (GFSI, BRC, IFS), retailers’ code of practice, legislation and industry guidance. That is why our Candy Cartoner features integrated in-line metal detector.

Integrated In-Line Check Weigher

In order to ensure that the weight of a candy pack is within specified limits, TT-400 Candy Cartoner features an integrated in-line check weigher. Any packs that are outside the tolerance are taken out of line automatically.

Rejection System 

When you’re in the business of packaging and selling candy, it’s important not to have products hit the shelves with any defects. For instance, you don’t want a carton that contains less product than other cartons to end up in stores, nor do you want a carton that isn’t properly sealed to make it to casing and shipping, as this can cause spillage, product waste, and mess. This is why TT-400 features open flap detections and rejection system.

 

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Part of being a good packaging machine manufacturer is acknowledging that every client is special. We see the client’s specific demands as a challenge and responding to that challenge is what makes us stronger and more experienced. So, if you are a candy manufacturer in search of a packaging solution, don’t hesitate to contact us!

5 Reasons To Choose An Integrated Packaging System

Integrated packaging systems allow manufacturers to fully automate the entire packaging process, from primary packaging of their goods to shelf-ready packaging and shipping packaging. In other words, integrated systems provide complete packaging automation: from raw product to a pallet ready for shipping. Integrated packaging system usually consists of several packaging machines and modules, all connected in one packaging line that is in charge of all packaging processes: cartoning, code printing, tray packing, case packing, labeling and palletizing. This kind of system offers many benefits, but many manufacturers, especially new and small business are often discouraged by the size of the investment necessary to provide their business with this kind of solution.

Due to the ever-changing economy, increasing competition and oversaturated markets, manufacturers are trying to achieve savings wherever they can, sometimes without realizing that those “savings” cost much more in the long run. Sometimes, a larger investment can spare the business from various expenses in the future.

That is why we decided to list these 5 reasons to invest in an integrated packaging system.

 

1. Initial price and future savings

As any manufacturing business grows, at some time it reaches a point where automation is inevitable. At that point, you might decide to automate one part of a packaging process, while keeping the other processes manual, so you invest in one packaging machine which seems like the best solution at the moment. As time passes, you decide to automate another part of the process, so you invest in a second machine. Eventually, you end up with several different machines that seemed like the best solutions at the time, but altogether, it was a much bigger investment than it would have been if you on an integrated packaging system in the first place. Cartoners, case packers, and palletizers are more expensive when acquired separately. Packaging machine manufacturers often offer some kind of a deal, or a discount if you are making a one-time investment in an integrated system that consists of three or four packaging machines.

2. Floor space and modular design

Floor space is precious, and you want to use it in the most economical manner. Imagine the scenario where you need to move your production to a bigger facility because you don’t have enough space for all the necessary equipment you acquired over the years. That is a scenario you want to avoid. Tailor-made, custom systems are a more viable solution. Due to their modular design, they can fit in small and unusual spaces in the production facility, and they are built according to your floor-plan in order to maximize space saving.

3. Compatibility

If you acquire your packaging equipment from different manufacturers at different time periods, you may end up with three or four packaging machines that are completely incompatible and that cannot easily be integrated into one packaging line. Integration of different machines may require additional equipment like various conveyors and robotics, which present an additional cost. If the machines cannot be integrated due to various reasons then products need to be moved from one machine to another manually which slows down the entire process and presents an additional task for your staff. All these hassles can be eliminated by investing in an integrated packaging system.

4. Avoid high labor costs

Some of the main challenges for manufacturing industries are high labor costs and the lack of skilled labor. Employers are trying to eliminate the need to constantly find and train a new workforce and integrated packaging systems allow them to do that. With an integrated packaging system, you can allocate an available workforce to more value-adding tasks, which results in reducing labor turnover through improved workplace conditions. This will also decrease the risk of repetitive-motion injuries in your employees and all the expenses that come with these injuries.

5. Maintenance and service

If you invest in an integrated packaging solution from a single packaging machine manufacturer, you are forming a long term partnership with one company that will be responsible for all repairs, spare parts, maintenance and servicing of the packaging line. This is more convenient than having to deal with three or four different manufacturers, each with their own set of services.

This way, one reliable partner is taking care of all your packaging needs and making sure that all your equipment is compatible and working.

Tishma Technologies can be that partner. Lower your costs, increase your efficiency and become one of many companies that utilize the full potential of Tishma Technologies. If you are ready to invest in the best, most economical and highly efficient packaging solutions, contact us and get a quote!

Looking into the future of The Packaging Industry market

One of the main challenges in any industry is trying to predict any future development and market growth based on the current market situation and trends. As a company that constantly strives to keep in touch with and be a part of leading market trends, Tishma Technologies is here to share with our readers some of the main factors and trends that are influencing the packaging industry’s future development.

Future of the packaging industry

 

Let’s begin with the Packaging Machinery Market Overview:

Let’s start with some shocking numbers. Did you know that one-third of the food produced in the world (or 1.3 billion tons) gets wasted? This is the official information brought to us by the Food and Agriculture Organization of the United Nations. These food losses are worth 680 billion dollars in developed countries and 310 billion dollars in developing countries. These alarming numbers only emphasize the fact that food preservation or using packaged food has become an absolute necessity.
This is why the packaging machinery market is expected to grow up to 5% over the next six years.
As a point of reference: according to some market research reports, the packaging machinery market has a global market size of 39-40 billion dollars.
China is the leading manufacturer of mobile phones, tablets, various gadgets, and other affordable consumer electronics. These gadgets need packaging cartons and cases which results in a remarkable demand for packaging machinery.
According to some analysts, the packaging machinery market in China, Japan, Australia, South Korea, India, Taiwan, Malaysia, and Hong Kong bears 30% to 35% market share. The growth of the packaging machinery market in this area is also driven by the domination of E-Commerce, a considerable surge in industrialization and the large shifts in the food packaging industry. This means that packaging machinery manufacturers from Europe and the USA need to step up their game in order to remain competitive and keep their market share in this industry.

 

What is the Packaging Machinery Market Outlook?

Packaging machinery has major applications in the Food and Beverage industry which is expected to grow up to 6% in the following period
Packaging machinery makes and utilizes primary and secondary packages and then converts it into distribution packs through fabrication, cleaning, filling, sealing, combining, labeling, overwrapping, cartoning, casing and palletizing. There is a wide range of secondary packaging machinery like cartoners, case packers, palletizers and pouch machines that find applications in various sectors such as Food and Beverage, Pharmaceuticals & Chemicals, Cosmetics, E-Commerce, and retail.
What drives the Growth of Packaging Machinery Market?
There are three key growth drivers when it comes to packaging machinery market: the growth of the E-Commerce sector, the demand for sustainability in the Pharmaceutical Industries and the need for packaging in the Cosmetics Industry.

 

1. The Growth of E-Commerce Sector
Explosive growth has been noticed in the E-commerce sector in the past decade, and it is expected that it’s market size is only going to escalate. China, India, and Indonesia are leading in the E-Commerce sector, according to the World Bank. According to Forbes, sales of the US E-Commerce grew by 16% in 2018 which translates to $453 billion. This enormous amount of goods ordered online requires packaging cartons and wrappers, which further propels the packaging machinery market growth.

 

2. The Sustainable Demand for Packaging from the Pharmaceutical Industries
According to the International Federation of Pharmaceutical Manufacturers and Association, the global pharmaceutical market will reach $1,430 billion by 2020. The pharmaceutical industry is constantly growing and this means that there will be constant production of medicines and drugs in pharmaceutical industries across the globe. These medicines need sophisticated packaging which further flourishes the packaging machinery market. The various law requirements for proper labeling and serialization only increase the demand for specific kind of packaging machinery that features various labelers and printers.

 

3. The Need for Packaging In Cosmetics and Disposable Income Growth
Household disposable income is expected to grow from 1% to as much as 5.5% in most of the developed countries according to the Organization for Economic Co-operation and Development. People with disposable income spend a lot of cosmetics, and they are ready to spend their money on branded products that come in attractive packaging. The packaging machinery market growth is also driven by this game-changing factor.

 

What about the packaging machinery market challenges?
Rapid changes in technology and the expenditure on human resources represent the major challenges in packaging machinery market. On the other hand, automation is gradually penetrating the packaging machinery sector thus minimizing the cost of human resources and the manufacturers are adapting to the new technologies to sustain their market share.
Tishma Technologies will continue answering challenges and following the trends in this market in order to provide our clients with the best packaging machinery and custom made packaging solutions built according to the client’s needs. How do we plan to do that? Surf across our website, check out our cartoners, case-packers, tray-packers, and palletizers and find out for yourself! If you find yourself interested in some of our packaging solutions, don’t hesitate to reach out!