Executive Outlook
DuPont
Robert Hannum Corrugated Segment Manager
ŽƐƚ ƉƌĞƐƐƵƌĞƐ ĂƌĞ ƉƌĞǀĂůĞŶƚ ŝŶ ŵŽƐƚ Ăůů ƉƌŝŶƟŶŐ ŵĂƌŬĞƚ ƐĞŐŵĞŶƚƐ͘ WŽƐƚͲƉƌŝŶƚ ĐŽƌƌƵŐĂƚĞĚ ƉƌŝŶƟŶŐ ŝƐ ŶŽĚŝīĞƌĞŶƚ͘dǁŽĐƵƌƌĞŶƚƚƌĞŶĚƐŝŶƚŚŝƐƐĞŐŵĞŶƚĂƌĞ ƚŚĞ ŝŶĐƌĞĂƐĞĚ ƵƐĞ ŽĨ ƌĞĐLJĐůĞĚ ĮďĞƌƐ ƚŽ ŵĂŬĞ ŶĞǁ board suitable for the post print market and thinner liner weights. While these trends certainly have their ĐŽƐƚďĞŶĞĮƚƐ͕ƚŚĞLJĐĂŶĂĚǀĞƌƐĞůLJĂīĞĐƚƉƌŝŶƟŶŐ͘ &ƌŽŵ ƚŚĞ ƉƌĞƐƐ ŽƉĞƌĂƚŽƌ͛Ɛ ƉĞƌƐƉĞĐƟǀĞ͕ ƚŚĞ ĂďŝůŝƚLJ ƚŽ ĐŽǀĞƌ ƚŚĞ ĞŶƟƌĞ ƉƌŝŶƚĞĚ ƐƵƌĨĂĐĞ ŽĨ ƵŶĞǀĞŶ ƐƵď - ƐƚƌĂƚĞƐƐƵĐŚĂƐĂΘŇƵƚĞŬƌĂŌĐŽƌƌƵŐĂƚĞĚďŽĂƌĚ with uniform ink coverage can be a challenge. Now it has become even more challenging when taking into account these two growing trends. Part of the challenge results from the balance a ƉƌŝŶƚĞƌ ŵƵƐƚ ƐƚƌŝŬĞ ŝŶ ƉƵƫŶŐ ĞŶŽƵŐŚ ƉƌĞƐƐƵƌĞ ďĞ - ƚǁĞĞŶƚŚĞƉƌŝŶƟŶŐƉůĂƚĞĂŶĚƚŚĞƐƵďƐƚƌĂƚĞƚŽƉƌŝŶƚĂ ŐŽŽĚƐŽůŝĚǁŝƚŚŽƵƚĐƌƵƐŚŝŶŐƚŚĞŇƵƚĞƐ͕ǁŚŝĐŚĐŽƵůĚ ǁĞĂŬĞŶƚŚĞďŽĂƌĚďĞLJŽŶĚŝƚƐƐƉĞĐŝĮĐĂƟŽŶ͘hƐŝŶŐƚƌĂ - ĚŝƟŽŶĂůƉƌŝŶƟŶŐƉůĂƚĞƐǁŝƚŚĂ^ŚŽƌĞĚƵƌŽŵĞƚĞƌŽĨ 33-34 for a .250” thick plate (let’s call this durome- ƚĞƌĂ͞ƐƚĂŶĚĂƌĚĚƵƌŽŵĞƚĞƌ͟ƉůĂƚĞͿǁĂƐƉĞƌĨĞĐƚůLJĮŶĞ when liners were thicker and stronger. However, us- ŝŶŐĂƐŽŌĞƌĚƵƌŽŵĞƚĞƌƉůĂƚĞŝƐŶŽǁƚŚĞďĞƐƚŽƉƟŽŶ to completely cover the solid image area without any ƉƌŝŶƟŶŐǀŽŝĚƐŝŶƚŚĞǀĂůůĞLJƐďĞƚǁĞĞŶƚŚĞŇƵƚĞůŝŶĞƐ in the boards. ƵWŽŶƚĚǀĂŶĐĞĚWƌŝŶƟŶŐŝƐƉůĞĂƐĞĚƚŽŝŶƚƌŽĚƵĐĞĂ new, low durometer corrugated sheet photopolymer ƉƌŝŶƟŶŐƉůĂƚĞ͕ŶĂŵĞĚƵWŽŶƚΡLJƌĞůΠ>͘/ƚǁŝůůďĞ ŽīĞƌĞĚŝŶĂǀĂƌŝĞƚLJŽĨƚŚŝĐŬŶĞƐƐĞƐĂŶĚƐŝnjĞƐƚŽŵĞĞƚ ƚŚĞŐůŽďĂůĚĞŵĂŶĚ͘LJƌĞůΠ>ŝƐĂƐŽŌĞƌƉůĂƚĞƚŚĂƚ conforms to the uneven surface of corrugated boards
ĂŶĚƉƌŽǀŝĚĞƐĂƐŵŽŽƚŚĞƌŝŶŬůĂLJĚŽǁŶ͘ƐŽŌĞƌƉůĂƚĞ ĂůƐŽƉƌŽǀŝĚĞƐďĞƩĞƌŝŵƉƌĞƐƐŝŽŶůĂƟƚƵĚĞĨŽƌƚŚĞƉƌĞƐƐ ŽƉĞƌĂƚŽƌƐ͕ ǁŚŝĐŚ ŝƐ Ă ŬĞLJ ďĞŶĞĮƚ ƐŝŶĐĞ ďŽĂƌĚ ĂŶĚ ƉƌĞƐƐĞƐŚĂǀĞǁŝĚĞƌĂŶŐŝŶŐǀĂƌŝĂƟŽŶ͘ dĚĂƚĂƐŚŽǁƐ virtually no decrease in the board strength when us- ŝŶŐ>͘ƵWŽŶƚŚĂƐĞdžĐĞůůĞŶƚĚĂƚĂƉƌŽǀŝĚĞĚďLJƚŚĞ Clemson University Packaging Science Lab in Clem- ƐŽŶ͕^ŽƵƚŚĂƌŽůŝŶĂ͕ƚŽĚĞŵŽŶƐƚƌĂƚĞĂŶĚĐŽŶĮƌŵƚŚŝƐ ĞdžĐĞƉƟŽŶĂůďĞŶĞĮƚ͘ ƵWŽŶƚ ďĞůŝĞǀĞƐ ƚŚŝƐ ŶĞǁ ƉůĂƚĞ ŝƐ Ă ǁŝŶͲǁŝŶ ĨŽƌ both the corrugated tradeshops and the printer con- ǀĞƌƚĞƌƐ͘ dŚĞ > ŽīĞƌŝŶŐ ƉƌŽǀŝĚĞƐ ƚŚĞ ĐŽƌƌƵŐĂƚĞĚ ƚƌĂĚĞƐŚŽƉƐLJĞƚĂŶŽƚŚĞƌŚŝŐŚƋƵĂůŝƚLJ͕ƵWŽŶƚŵĂŶƵ - ĨĂĐƚƵƌĞĚƉŚŽƚŽƉŽůLJŵĞƌƉƌŝŶƟŶŐƉůĂƚĞƚŽŽīĞƌŝƚƐĐƵƐ - ƚŽŵĞƌƐƚŽĐŽŵƉůĞŵĞŶƚŝƚƐƉƌĞŵŝƵŵWƉůĂƚĞƚĂƌŐĞƚ - ed for use with high-end graphics. ĚĚŝƟŽŶĂůůLJ͕ƚŚŝƐƉůĂƚĞŚĂƐďĞĞŶƉƌŽǀĞŶƚŽŽƵƚƉĞƌ - ĨŽƌŵ ĐƵƌƌĞŶƚ ͞ƐƚĂŶĚĂƌĚ ĚƵƌŽŵĞƚĞƌ͟ ƉƌŝŶƟŶŐ ƉůĂƚĞƐ ŝŶŝƚƐŝŶƚĞƌŶĂůĂŶĚĞdžƚĞƌŶĂůƉƌŝŶƚƚƌŝĂůĞǀĂůƵĂƟŽŶƐĂŶĚ ĂůƐŽ ĐŽŵŵĞƌĐŝĂů ĐƵƐƚŽŵĞƌ ũŽďƐ͘ƵWŽŶƚ ŚĂƐ ďĞŶĐŚ - marked this new plate against its own 33 Shore A ƉůĂƚĞĂŶĚƐĞǀĞƌĂůŽƚŚĞƌĐŽŵƉĞƟƟǀĞƉůĂƚĞƐ͕ďŽƚŚǁŝƚŚ standard durometers and lower durometers. The early success of this new digital plate has brought a lot of enthusiasm to those customers currently buy- ŝŶŐĂŶĚƵƐŝŶŐ>͘ ƵWŽŶƚ ĚǀĂŶĐĞĚ WƌŝŶƟŶŐ͕ Ă ƵWŽŶƚ ůĞĐƚƌŽŶŝĐƐ Θ /ŵ - ĂŐŝŶŐ ĚŝǀŝƐŝŽŶ͕ ďƌŝŶŐƐ ƚŽŐĞƚŚĞƌ ůĞĂĚŝŶŐ ƚĞĐŚŶŽůŽŐŝĞƐ ĂŶĚ ƉƌŽĚƵĐƚƐ ĨŽƌ ŇĞdžŽŐƌĂƉŚŝĐ ĂŶĚ ŝŶŬũĞƚ ƉƌŝŶƟŶŐ ŝŶĚƵƐƚƌŝĞƐ͘ ƵWŽŶƚΡLJƌĞůΠŝƐŽŶĞŽĨƚŚĞǁŽƌůĚ͛ƐůĞĂĚŝŶŐŇĞdžŽŐƌĂƉŚŝĐ ƉůĂƚĞͲŵĂŬŝŶŐƐLJƐƚĞŵƐŝŶĚŝŐŝƚĂůĂŶĚĐŽŶǀĞŶƟŽŶĂůĨŽƌŵĂƚƐ͕ ŝŶĐůƵĚŝŶŐ LJƌĞůΠ ^z ƉŚŽƚŽƉŽůLJŵĞƌ ƉůĂƚĞƐ ĂŶĚ LJƌĞůΠ &^dƉůĂƚĞƐĂŶĚƉƌŽĐĞƐƐŝŶŐĞƋƵŝƉŵĞŶƚ͘
8 Executive Outlook Special Report
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