Now and Future of Gravure, Flexo and Digital printing

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1 Press, impressively! Now and Future of Gravure, Flexo and Digital printing at Pullman Hotel - Jakarta Nov 19, 2014 ORIENT SOGYO CO., LTD. Hidenori Harada

2 Now and Future of Gravure, Flexo and Digital printing Flexible Packaging - Trends and Business keys Machinery and Technology history of Gravure, Flexo and Digital printing Pros and Cons of each printing methods & Future prediction of Package printing ORIENT SOGYO CO., LTD All rights reserved

3 Indonesia Business environment INDONESIA in the WORLD Growth rate (predict) % China India Indonesia Mexico S.Korea Turky USA GBR Canada Australia S.Africa Spain Brasil Japan Whole world : 3.7% in % in 2016 Quote : OECD / Nov 2014 ORIENT SOGYO CO., LTD All rights reserved

Indonesia Business environment WORLD trend Developed countries rely on Emerging Countries economic growth (China Risk, Russia isolate) Low interest & Financial game : floating fund INDONESIA in the

5 Indonesia Business environment WORLD trend Developed countries rely on Emerging Countries economic growth (China Risk, Russia isolate) Low interest & Financial game : floating fund INDONESIA in the WORLD Largest population in SE Asia: 2.5 million ++ Still poor Social infrastructure Rule of Law, Transparency, Anti-corruption Week Rupiah (IDR) ~ peg to USD Gap between Rich and Poor : expand Middle layer ORIENT SOGYO CO., LTD All rights reserved

6 Package exhibition in 2014 Interpack is the largest exhibition about Packaging in Dusseldorf Germany held in 2011 and 2014 Japan and ASIA s packaging in the World. Any New idea, New materials, New movement about Flexible packaging?

Package exhibition in 2014 Tokyo Pack is the largest packaging

Comply new Environmental regulations Global extension by JPN

7 Package exhibition in 2014 Tokyo Pack is the largest packaging show in Asia. Re-sealable, Long-life packages Convenient and Eye-catching design High barrier, recycle materials Faster packing process Comply new Environmental regulations Global extension by JPN Convertors ORIENT First participate with FLEXO New Business matching for INTERPACK New Package Technologies and Ideas for TOKYO PACK

8 Flexible Package trends and business key words Save Food ECO - Green theme Water-base Clean room Bio Material (PLA) Carbon foot print Life Cycle Assessment Energy save Toluene free Creating Universal Design Value premium Easy peel Retail Logistic Personalized pack Easy cut Standing display Variable print Package functional Microwave pouch Food Safe Sustainable growth VOC emit Continuous /Improving Tractability High barrier ORIENT SOGYO CO., LTD All rights reserved

10 Principal of Gravure print and Flexo print Gravure print Metal cylinder with High pressure Resin plate with very Light pressure Flexo print Anilox Plate-mounted cylinder Impression roll Gravure cell Flexo plate Relief

History and features of Gravure printing (1) Products by

label, Printable Electronics (Now) Remarkable Features

stability Simple structure - Fewer of driven rollers A

11 History and features of Gravure printing (1) Products by Gravure Magazine (Before) Flexible packaging (Now) In-mold label, Printable Electronics (Now) Remarkable Features Vivid color expression High Color density Long-run stability Simple structure - Fewer of driven rollers A Lots of solvent use Fire accident Labor health Odor retention / transfer

Circulation impression rubber pressurizing Hot air blow drying system Gravure ink Color-phase, Glue-reaction,

12 Gravure printing Technologies (Past) Past - developed Technologies of Gravure Printing Cylinder engraving & plating process Tension control for variety of film kinds Doctor blade assembly Inking supply system with overflow Circulation impression rubber pressurizing Hot air blow drying system Gravure ink Color-phase, Glue-reaction, Friction Register control system & Stroboscope monitoring Some remain the same styles for a long time since Gravure Printing was born

Gravure printing Technologies (Current) Resent develop (Last 10-15yrs) Technologies of Gravure Printing Non Toluene ink, Non MEK ink, High-Density ink Multi-purpose ink for lamination Water-resolve

13 Gravure printing Technologies (Current) Resent develop (Last 10-15yrs) Technologies of Gravure Printing Non Toluene ink, Non MEK ink, High-Density ink Multi-purpose ink for lamination Water-resolve ink (Alcohol rich 30-40%) Direct / Laser engraving cylinder process 100% area Inspection system Sectional Drive (Electric/Virtual Line shaft) system VOC burn / recycle system Heat recycle system Trolley assembling system (European) Three-roll / Sleeve impression system Functional Environmental Develop & Utilize in Japan. Exported to Indonesia after a certain period.

Gravure printing Technologies (Future I) Printing Press Manufacturer Energy

Drying heat, Drive Motors, Blowers, Lights Ink & Solvent saving (Less volume use,

change-over for Multi-short run jobs Zero/Low wastage (Mis-register, Splice,

14 Gravure printing Technologies (Future I) Printing Press Manufacturer Energy saving esp. Drying heat, Drive Motors, Blowers, Lights Ink & Solvent saving (Less volume use, CCM, Accurate visco keep) High speed print for Long-run jobs Ultra quick change-over for Multi-short run jobs Zero/Low wastage (Mis-register, Splice, Streak, Dust, Mis-match color) Easy Operation Instructive / Fool-proof / Production Management Auto-cylinder cleaning Auto material handling In-line Laminating process

Gravure printing Technologies (Future II) Ink maker, Cylinder maker, Inspection system maker Very-low Alcohol contain Water-base (10-20%) ink very low VOC emissions No labor health problem / No fire

15 Gravure printing Technologies (Future II) Ink maker, Cylinder maker, Inspection system maker Very-low Alcohol contain Water-base (10-20%) ink very low VOC emissions No labor health problem / No fire accident Functional / All purpose Gravure ink Super shallow depth engraving with High-resolution cylinder Solution-providing Inspection system High barrier material non-alu Foil, Transparent Metalize (Deposition) Eco material PET 8micro, PLA (Bio film), Recycle Still long way For Ideal Gravures Printing Holding Big potential of Growth

17 State-Of-The-Art Convertor b) CHUKYO KAGAKU (Nagoya) Short-run (Less 4000m x 8 items) within 8hour by ALL CMYK process printing with 250lpi engraving ORIENT SOGYO CO., LTD All rights reserved Press, impressively

State-Of-The-Art Convertor c) SEIKO (Osaka,

19 State-Of-The-Art Convertor c) SEIKO (Osaka, Sendai, Tsukuba) Very Clean Factory environment Air-con outlets and Dry- Fog sprinkle nozzles Clean floor immediately when Ink dripped. ORIENT SOGYO CO., LTD All rights reserved White Machine with Whole Stainless Floor (Mirror-finish)

European Gravure press maker Max Speed :

20 European Gravure press maker Max Speed : 450m/min Wed width : mm Concentrated Operation desk Trolley system has been very common Still Air-shaft Gravure cylinder is Shafted type ORIENT SOGYO CO., LTD All rights reserved Register control : One-pixel camera

History and features of Flexo printing (1) Products by Flexo

Features Simple plate process resin / rubber made Complicated

Printable for variety of materials (paper, non-woven, foils,

21 History and features of Flexo printing (1) Products by Flexo Card board box Label and Seal Folding carton Remarkable Features Simple plate process resin / rubber made Complicated mechanical structure Little press pressure for ink transfer Printable for variety of materials (paper, non-woven, foils, film etc) Little ink usage High color density Fast ink dry on the plate

22 Flexo products in the Market 第 1&2 号機ユーザ Lami-pouch, Label, LDPE, Wrap paper and so on

23 History and features of Flexo printing (2) Key Technology of Flexo Printing in Flexible packaging Flexo Resin Plate process (CTP) Flexo Elastomer plate / sleeve process Anilox roll Flexo Ink (e.g. Water-base ink, Boil-Retort applicable, UV, EB) Cushion adhesive tape Multi-axis Drive-control (gear-less) & Kiss-touch control Chamber doctor inking Plate-Mounter Esp. Resin Plate & Anilox roll Quality improvement contribute to Bigger FLEXO potential!!

24 Flexo plate process No Chrome, Copper plating process. Light material handling & Small equipment EASY In-house plate-process

25 Anilox roller No Chrome, Copper plating process. Light material handling & Small equipment EASY In-house plate-process

26 Gravure Print vs Flexo Print Work Environme nt VOC emit Solvent base Gravure Hazardous & Fire risk A Lots of VOC Without facility Water base Flexo Xpress Very clean & No explosive Very Very low Cylinder / Plate process Direct Engrave / Laser Engrave plus Cu Cr plate a) Laser image +UV expose b) Direct Laser

27 Gravure Print vs Flexo Print Quality Key Solvent base Gravure Gravure Cylinder + Doctor + inking etc. Water base Flexo Xpress Resin plate + Anilox roll + Kiss-touch pressure Color range Commonly 175lpi 150lpi, 133lpi or 120lpi Drying Hot air blow

28 Gravure Print vs Flexo Print Solvent base Gravure Water base Flexo Xpress Balance ink in the pan 10~15 litter per color after Cylinder wash Less than 1 litter plus Ink piping length Changeover+ Cleaning Splashed ink + Furnisher + Cylinder + Ink Pan Ink Drain from Close Chamber

29 Xpress Register control 1. 基本原理 : 三角マークによる隣色ツーマーク制御 2. 貼込みプレート原点 ( トンボ ) = 駆動系 ( 回転位相 ) 原点

31 What Flexo Xpress can do 極小ロット多品種 Super short run 水性インキ Water-base ink

Expand FLEXIBLE PACKAGING demands 従来 <former> Not necessary all the packaging design would not become actual package <New> Showing more choices to Consumer

32 Expand FLEXIBLE PACKAGING demands 従来 <former> Not necessary all the packaging design would not become actual package <New> Showing more choices to Consumer and they will determine what is the best! New key : [Re-active idea] [Premium marketing] ORIENT SOGYO CO., LTD All rights reserved And [Local-intimacy marketing]

JAPAN Gravure Business environment What is

Job become Shorter than shorter 2000m/job?

36 Germany (EU) market case Drug store- Same Brand ground COFFEE powder pouches stood aside each other One was Gravure, The other was Flexo Most of FLEXO items co-exist with GRAVURE, 150lpi screening image is required. High quality required item : Shampoo pouch even a Printing industry person has to look closely to tell difference LLDPE (sanitary items) is needless to say done by CI flexo not easy market by Gravure Printing in EU

37 EU Interpack review ~ How do you decide if you print by Gravure or Flexo ~ Approx % : Using both GRAVURE and FLEXO Approx % : Own only FLEXO Approx. 10% : Own only Gravure Type of Package, Packaging design are NOT the factors of choosing GRAVURE or FLEXO. There is common understanding that Gravure is for Quality. Flexo is for Cost and productivity advantages. ESKO GRAPHIC HD FLEXO screening technology enhance FLEXO print quality drastically(last 4-5years)

38 EU Interpack review ~ How do you decide if you print by Gravure or Flexo ~ There are NO intentions to develop Water base Gravure. Already try Water base FLEXO in Paper items FLEXO CI is realized as Quick changeover by sleeve system and Register stability but pretty much Human Unfriendly system vs Gravure requires Long film path and cause wastage Flexo comes FIRST. Gravure, as the second choice, replaces some high quality items from Flexo jobs.

39 EU Interpack review ~ How do you decide if you print by Gravure or Flexo ~ Gravure Cylinder : Euro / piece. Flexo plate : Euro / plate Definition of Short run job : 1000~12000m / item

40 HP : Indigo series Digital Printing Mimaki (JPN) LANDA (Israel) Roland (Germany) As Art-work Color Proofer use : Color Management As actual production use : Gravure Cylinder companies ORIENT SOGYO CO., LTD All rights reserved

41 Conclusion in IND 1) Gravure will maintain the main stream! 2) Whole package demand will increase according to economic growth 3) Paper & LLDPE print items may take place to FLEXO. But not much existing laminate-pouch 4) Labor health / Air pollution issue / regulation will enhance Non-toluene ink usage or VOC regulation, or even FLEXO growth 5) Unless INDONESIA market get more diverse to create New demands on Flexible packaging, Digital print would not be your solution. ORIENT SOGYO CO., LTD All rights reserved

Gravure. opportunities in Eastern Europe and technological trends. Welcome and introduction. James Siever ERA Secretary General

Gravure. opportunities in Eastern Europe and technological trends. Welcome and introduction. James Siever ERA Secretary General Gravure opportunities in Eastern Europe and technological trends Welcome and introduction James Siever ERA Secretary General We welcome you to our International Packaging Conference organised in cooperation