Markus Gschwandtner, Brückner

AMI BOPP Film 2007 1

© Brückner1

Innovative Solutions for Innovative Solutions for Film ProducerFilm Producer‘‘s s

Challenging MarketChallenging Market

Markus GschwandtnerMarkus GschwandtnerBrBrüückner Groupckner Group

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Current BOPP Market SituationIndustry TrendsOur Innovative Solutions

Contents

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 2

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…. Before We Get Started ….

Dubai - our host city Sheikh Zayed Rd in 1990:

.. and today:

Brückner – leading BO supplierSiegsdorf in 1963

.. and today:

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Two New Members of the Brückner Group

Production and special-purpose machines for plastics processing

AutomotiveMedicalPackaging industry and technical parts

Advanced blown film extrusion linesMachine direction orientation (MDO)Winding

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 3

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Brückner Group – Your Benefits

Brückner is a strong, sound partner – ongoing 100% family-owned

Comprehensive solutions from one reliable source – by combining product programs

We offer an all-embracing partnership within your area of expertise: plastics processing

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Current BOPP Market SituationIndustry TrendsOur Innovative Solutions

Contents

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 4

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Current Situation - Production Lines

Existing Lines● Not many plants stopped but modified● More and more upgrading to multilayer structure

(5 to 7 layers)i.e. Vibac or Radici

● Upgraded lines are used for in-house R&D

New Lines● Higher speed - production speeds above 400

m/min● More output – 4,000 – 5,000 – 6,000 kg/h …

and more● Multilayer structure● Value added films – barrier films, optical films,

opaque films

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Additional sold BOPP Capacity 2006in [tpa] based on Name Plate Capacity (NPC) *

48.000PP162.500PP

Americas

Europe & CIS Greater China

Middle East & India

* Source: Reference lists and market information of sold and effective equipment (04/2007)

66.000PP

131.000PP

Total market share

86 %

14 %

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 5

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Additional sold BOPP Capacity 2006 and 2007in [tpa] based on Name Plate Capacity (NPC) *

85.000PP162.500PP

Americas

Europe & CIS

Greater China

Middle East & India

Asia Pacific

* Source: Reference lists and market information of sold and effective equipment (04/2007)

66.000PP

237.000PP

Total market share

90 %

10 %

37.000PP

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Current BOPP Market SituationWhat are the Industry TrendsOur Innovative Solutions

Contents

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 6

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Outlook – New BOPP Resin Capacities

3%2.7002.010North America

3%1.4901.150Europeincl. C&E Europe, Turkey

7 %2.9451.730North East Asia incl. China

10 %815410South East Asia

16 %620240India Sub Continent

4,5 %720460South America

30 %660160Middle East – Africa

A.a.g.r. %2015 Capacity(kton/yr)

2005 Capacity(kton/yr)

Source: Borealis A/S, KIWEB and other sources

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Outlook - World BOPP Film Market Growth by Demand

5.9%11.4%Other Asia Pacific

3.4%5.3%North America

6.5%7.4%Central and South America

2.0%3.5%Japan

9.6%14.3%China

5.9%6.7%Middle East and Africa

8.4%9.8%Eastern Europe

2.7%5.2%Western Europe

AVGR ‘05 – ‘10

AVGR‘00 – ‘05

Area

Source: AMI and PCI

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 7

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Outlook - World BOPP Film Market Growth by Type

6,1%5,7724,2852,801Total world demand

4,0%919755545White/opaque/matt

6,0%664497297Metallised (excl. capacitors)

6,7%4,1893,0331,959Transparent

AVGR ‘05 – ‘10

201020052000Film type

Source: AMI and PCI

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Outlook – BOPP World: Demand / Production

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

5.000.000

5.500.000

6.000.000

6.500.000

7.000.000

7.500.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Tons

Demand Actual: CAGR1998-2004 of 10,2% p.a.

Demand Projection onCAGR 8,3 % p.a.

Demand Projection onCAGR 6,8 % p.a.

Demand Projection onCAGR 5,4 % p.a.

Production

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 8

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Supply Chain – View from the End User / Consumer

Machine Supplier Resin supplier

Film Producer

Converting

Packaging

End User

Easy to openPackage size – single householdRe-closeableMicrowaveabilityDesign – information, decoration, qualityEnvironmental issue, i.e. WalMart does not approve PVC anymoreSustainability

Supply Chain

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Supply Chain – View from the Food Industry

Machine Supplier Resin supplier

Film Producer

Converting

Packaging

End User

Supply Chain

Machine runabilityFDA and EU directive approvedExtended shelf life timeCost saving packagingImproved propertiesEnvironmental issuesSustainability

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 9

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Supply Chain – View from a Converter

Machine Supplier Resin supplier

Film Producer

Converting

Packaging

End User

Supply Chain

Reduced lead times PrintabilityHigh speed packingConstant film quality performanceModified & improved barrier propertiesCost optimized laminates

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Supply Chain – View from a Film Producer

Machine Supplier Resin supplier

Film Producer

Converting

Packaging

End User

Supply Chain

Smaller lotsJust in time productionStronger competition from other markets in commoditiesIncreased demand for specialty products Low energy consumptionShort product changing timeLow production costs

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 10

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Supply Chain – View from a Resin Supplier

Machine Supplier Resin supplier

Film Producer

Converting

Packaging

End User

Supply Chain

Higher stiffnessLow SIT materialsHigher glossBetter flow propertiesSeal strength and integrityCop with increasing oil price

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Supply Chain – View from a Machine Supplier

Machine Supplier Resin supplier

Film Producer

Converting

Packaging

End User

Supply Chain

Commodity products• Highly efficient lines• Low energy consumption• Highly automated

Specialty products• Flexibility• Multipurpose• Multilayer

New products• New technology• Extended R&D

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 11

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Film Producer’s Challenging Markets

Machine Supplier

Film Producer

Converting

Packaging

End User

Supply Chain

Multifunctional flexible packaging,

environment-friendly, easy use

Cost efficient and intelligent packaging

Appropriate converting steps & costs /

multi-functional films

Efficiency & diversification,

value added film types

Need to provide: utmost flexibility, highest efficiency, low energy consumption, highest quality

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Current BOPP Market SituationIndustry TrendsWhat are Our Innovative Solutions?

Contents

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 12

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Dubai – Experts in Managing Challenges

Brückner Office in Dubai, UAE

Our Innovative SolutionsOur Innovative Solutions

For The Production For The Production LineLine

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 13

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Our Innovative Solution – Increased Uptime

Topic:Increased Uptime i

> 7,500 h/yr Uptime

Challenge:Constant Productioni

MaintenanceUnforeseen StopsFilm Breaks

Solution:High End Equipmenti

High Quality EquipmentLatest TechnologyAutomation

Benefit:Higher Productivityi

Up from 7,500 to 8,300 h/yr gives + 4,000 tpa @ 5 to/h~ 8 Mio. USD / yr

additional turnover

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Increased Uptime – Direct Drives without Gears

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 14

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Increased Uptime – LIWEB for Reduced Clipping Errors

Ultra Sonic Sensor

Linear Motor

TDO Inlet

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Our Innovative Solution – Faster Product Change

Topic:Product Changei

Problem:Off-Grade Filmi

Changeover time > 1 h

Off-Grade film

Solution:Controlled Changeoveri

Automatic changeover

Recipe management

More flexibility in product management

Benefit:Higher Productivityi

Reduced changeover time: 0.5h@ 2 x per day, 4 to/h

~ 2,5 Mio. USD / yr additional turnover

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 15

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Faster Product Change – Recipe Management

Automatic changeover function with ramping and gauge adjustmentPreempting of storage and dosing systemAccurate material tracking Recipe management with reliable time stamp function

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Faster Product Change – MDO Gap Position Selection

Utmost flexibility in stretching gap selection

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 16

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Our Innovative Solution – Increased Production Speed

Topic:Increased Speedi

Challenge:Yieldi

Film Breaks

Lower Film Quality

Resin Properties

Low Margins

Thinner Film

Solution:High Quality Equipmenti

Advanced Technology

Reliable Components

Proven Design

Benefit:Higher Productivityi

Speed increase by 50 m/min @25 µm, 7,500 h/yr, 8.2 m

~ 8,4 Mio. USD / yr additional turnover

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Increased Production Speed – Optimum Film QualityTDO – Top and Bottom Fans for Excellent Air Balancing

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 17

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Your Benefits● Energy saving > 200 kWh● Condensate reduction● Reduction of exhaust air● Easy handling and cleaning ● Less pollution

Increased Production Speed – Optimum Film QualityTDO – Fresh Air System with Heat Recovery Unit

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0

500

1000

1500

2000

2500

3000

350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500

Line Speed [mpm]

Add

ition

al O

utpu

t [kg

/h]

30µm BOPP Film

25µm BOPP Film

20µm BOPP film

15µm BOPP Film

12µm BOPP Film

10µm BOPP Film

Brückner High Speed Production Lines

Increased Production Speed – Output Increase8,2 m – 500 m/m BOPP Line

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 18

Our Innovative SolutionsOur Innovative Solutions

For The Production For The Production PlantPlant

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Our Innovative Solution - Turnkey BOPP Plant

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 19

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Our Innovative Solution - Turnkey BOPP Plant

July 12

Oct 1

Nov 1March 1

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Consulting and engineering

Plant design and construction

Plant utilities with all necessary infrastructure

Stretching line

Slitters

Mill roll and slit roll handling

Coaters, laminators, metallizers

Turnkey supervision and installation

Training

All in-time and in-budget !!

Our Innovative Solution - Turnkey BOPP Plant

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 20

Our Innovative SolutionsOur Innovative Solutions

For Product DevelopmentFor Product Development

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Our Innovative Solution – BOPP Specialty Films

Tape FilmHeat Sealable Film

MD Shrink Label

FilmHigh Speed Packaging

Film for HFFSShrink Overwrap

FilmWhite Opaque

Shrink Label Film

Barrier Shrink Film

Barrier Film with

EVOH

Raw Material Price

Film Price

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 21

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Our Innovative Solution – Brückner Technology CentreSequential and Simultaneous Operation

Lab Stretcher Pilot Line

Film Laboratory Life Time Tests

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Our Innovative Solution - LISIM® or Sequential Pilot Line

Extrusion Casting MDO TDO / LISIM® Pullroll Winder7 layers

The most flexible line worldwide

Multi-Layer up to 7 LayersMulti-Polymers i.e. PP, PET, PEN,PS, PA, PE, COC or PVCSequential or Simultaneous

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 22

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Our Innovative Solution – BOPP Film Developments

High Sealing Strength

Low SITHFFS

Transparent Barrier

BOPPFilms

VFFS

High Sealing Strength

7 Layer with EVOH

7 Layer with PA

Ultra High BarrierMetallizedBarrier

Shrink LabelMD Shrink

TD Shrink

Box Over Wrap MD Shrink Cigarette

PA Skin LayerHigh SurfaceTension

LiddingPP / PE

White Opaque Barrier

Feat

ures

App

licat

ions

Adv

anta

ges• Seal Integrity

• Hot Tack• Stiffness• Downgaging

• Replacementof Aluminium

• Alternative toSleeves

• Printing• Laminating• Aroma/Flavour• Replacement

of Coated Film

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Our Innovative Solution – BOPP Low SIT Film

AdvantagesHigh seal integrityHigh packaging speed

Structure

00,5

11,5

22,5

33,5

44,5

55,5

6

90 95 100 105 110 115 120 125 130 135 140 145Sealing Jaw Temperature [°C]

Seal

Str

engt

h[N

/15m

m]

5-Layer

3-Layer

Application

A: Copolymer / Corona Treated Surface

B: PPC: PP Core LayerD: Copolymer E: Very Low SIT

SEALANT

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 23

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Our Innovative Solution – BOPP Transparent Barrier Film

AdvantagesSuperior oxygen barrier < 2 cm³/m²barExcellent opticsLow temperature sealing properties

Structure Application

A: SkinB: PP BlendC: Tie LayerD: Barrier LayerE: Tie LayerF: PP BlendG: Skin

1

10

100

1000

commercial films new development

PVOH coated

SiOx coatedPVDC coated

3-layer coex

7-layer with EVOH

7-layer with PA

cm³m²bar

TransparentOTR

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Our Innovative Solution – BOPP Metallized UHB Film

AdvantagesExceptional gas and aroma barrierOTR: 0,15 [cm3/m2 d bar] @ 23°C / 75%WVTR: 0,2 [g/m2 d] @ 38°C / 90% r.H.

Structure ApplicationMetallised Surface

A: High Surf. Energy Polymer

B: Adhesive LayerC: PP Core LayerD: PPE: Co-Polymer

1

10

100

1000

0,1

new developmentcommercial filmsMetallized

cm³m²bar

standard metallized

high barrier met.

ultra high barrier 5-layer HSE met.

OTR

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 24

Our Innovative SolutionsOur Innovative Solutions

For ServicesFor Services

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Service at a Glance – Financing SupportBrückner Realized Financings of EUR 354 Mill. in 2000 - 2006

ECA covered buyer‘s credit€ 195 Mill.

Short term financings up to 1 year€ 129 Mill.

Leasing€ 30 Mill.

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 25

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Service at a Glance – Financing SupportSample: Project Financing – Bank Loans / Direct Loan

Supply Contract

Loan agreement

Hermesguarantee

Seller Buyer

Bank of seller

ECA: Euler Hermes

IFRS = Intern. Financial Reporting Standards

IAS = Intern. Accounting Standards

US-GAAP = Generally Accepted Accounting Principles

Audited balance sheets(IFRS/IAS, US-GAAP) Profit and loss accounts Company profile Feasibility study Financial sources

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Service at a Glance – Tele-Service Solutions“We see what you see”at Brückner at Your Site

... Wearing the “Mobile Service Assistant”

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 26

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Service at a Glance – Highlights in Upgradings

Speed upgrade: the world‘s fastest BOPP line - 525 m/min

7-Layer film production with high barrier EVOH capability

Thickness measurement controlled infrared heaters in TDO

Fully integrated web scan systems for maximum quality control

Electrical and automation upgrades

TDO heat recovery and condensate absorption system

Line conversion to shrink film production (OPS or OPVC)

Winder contact roll system upgrade (LIWIND), ultra-fast responseand highest accuracy

Special MDO for optical film, 100% direct drive controlled and withautomatic roller cleaning

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RussiaOOO Brueckner

SlovakiaBrueckner Slovakia s.r.o.

ChinaBrueckner Machinery Jiangyin Co., Ltd.

ChinaBrueckner Far East Ltd.Hong Kong

IndonesiaBrueckner Far East Ltd.

GermanyBrückner Group

U.S.A.Brueckner Inc.

MexicoBrueckner México S.A. de C.V.

BrasilCoras do Brasil

ArgentinaCoras

UAEBrueckner Middle East

IndiaBrueckner India Pvt. Ltd.

Service and Sales at the Spot – We are where You are

Markus Gschwandtner, Brückner

AMI BOPP Film 2007 27

Thank You Thank You