Shrink Label Opportunities 2004-07 Table of Contents: Section 1. INTRODUCTION DEFINITIONS/ABBREVIATIONS Thermoplastic Resins Shrink Film Film Orientation Direction Shrink Label Types Section 2. EXECUTIVE SUMMARY MARKETS Shrink Label Growth Shrink Film Supply Major Applications for Shrink Sleeves KEY PLAYERS Film Suppliers Label Converters Application Equpment TECHNOLOGY Film Performance Opportunity for Significant Growth of Roll-Applied Shrink (RAS) Labels MANUFACTURING COST ANALYSIS Manufacturing Cost Models Sensitivity Analysis RECYCLING ISSUES Section 3. TECHNOLOGY INTRODUCTION RESINS FILM Manufacturing Processes Film Performance Properties Shrinkage Yield Film Stiffness and Potential for Downgauging Shipping, Handling and Storage Conditions LABEL CONVERTING Printing Slitting and Rewinding Inspection Inks LABEL APPLICATION EQUIPMENT Sleeving Equipment Basic Design Concept Sleeve Application Technique Sleeve Cutting Sleeve Opening Speed/Output Other Issues RAS Label Application Equipment Basic Design Concept Forming the Seam OPP RAS Labels B&H Labeling Systems Patent Potential for RAS Labels Opportunities Obstacles Shrink Tunnels Steam Hot Air ADDITIONAL LABEL PERFORMANCE PROPERTIES Light Barrier UV Visible Light Gas Barrier Tamper Evident Feature Section 4. MANUFACTURING COST ANALYSIS INTRODUCTION SHRINK FILM ESTIMATED MARKET PRICING LABEL CONVERTING COSTS LABEL APPLICATION COSTS Introduction ROM Cost Estimiate TOTAL APPLIED COST SENSITIVITY ANALYSIS Range of Shrink Film Costs Converting Scrap Loss Percentage Downgauging PETG Shrink Film Sleeve vs. RAS Label Application Equipment Cost Differences, Sleeve vs. RAS Percent Scrap Loss During Application Solvent cost Cost Impact on RAS for MD-Oriented Versus TD-Oriented Shrink Film Section 5. MARKET EVALUATION OVERALL MARKET ESTIMATE BY END-USE APPLICATION SLEEVE VS. RAS COMPETITIVE ALTERNATIVE IMPACT OF FULL-BODY SHRINK LABEL ON CONTAINER TYPE DRIVERS FOR USE Section 6. KEY PLAYERS AND COMMERCIAL SITUATION FILM SUPPLIERS Bonset America Klöckner Pentaplas Alcoa Flexible Packaging/Alcoa KAMA American Fuji Seal SKC, Inc. Mitsubishi Polyester Films Plastic Suppliers AET Films ExxonMobil Chemical Co. SHRINK FILM SUPPLIERS CAPACITY/SUPPLY LABEL CONVERTERS American Fuji Seal Seal-It Alcoa Flexible Packaging Multi-Color Corp. Ft. Dearborn Flexible Packaging Salem Label SleeveCo Inc. LABEL APPLICATION EQUIPMENT SUPPLIERS Intersleeve Astec PDC International Corp. PDC Europe Axon Corp. Krones Trine Labeling Systems B&H Labeling Systems Nippon Automatic Fine Machinery, Ltd. (NAFM) BC International COMMERCIAL RELATIONSHIPS Converters and Equipment Suppliers Converters and End Users EXPORT/IMPORT SITUATION American Fuji Seal Plastic Suppliers Bonset Klöckner Pentaplas VERTICAL INTEGRATION Section 7. RECYCLING SEPARATION BLEEDING INKS Section 8. ASSESSMENTS, CONCLUSIONS AND PROJECTIONS MARKET GROWTH AND INTER-MATERIAL COMPETITION PVC PETG OPP OPS POTENTIAL FOR RAS LABEL GROWTH Economics Price Premium for MD Film Application Scrap Loss Application Equipment Cost Difference B&H Royalty Availability of RAS Application Equipment and Adhesive/Solvent Systems Potential to Modify Existing Roll-on Adhesive Labeling Equipment to Apply RAS Labels Potential to Easily Switch Back and Forth Between Roll-on Adhesive and RAS Labels Seam Quality Overall Assessment RAS Label Growth Potential APPENDIX U.S. SHRINK FILM SUPPLIERS IMPORTERS (Film/Label) U.S. SHRINK LABEL CONVERTERS LABEL APPLICATION EQUIPMENT SUPPLIERS