European Labelstock Demand Drops
posable incomes of European consumers. As a result of this, label converters decided to de- plete stocks toward the end of the year and post- pone the procurement of new labelstocks. In spite of recessionary expectations, underlying funda- mentals for the European label industry until re- cently remained positive. Excelitas Technologies Acquires Phoseon Excelitas Technologies Corp., an industrial tech- nology manufacturer focused on delivering mar- ket-driven photonic solutions, completed the acqui- sition of Phoseon Technology in Hillsboro, Oregon. Phoseon is established in the design and manu- facture of LED-based industrial curing and scientific illumination solutions. Phoseon joins Excelitas’ commercial business unit and will continue to operate from its headquarters in Hillsboro, extending Excelitas’ geographic foot- print into the Pacific Northwest. The acquisition of Phoseon is the latest in a series of acquisitions by Excelitas Technologies since its founding in 2010. It is the fifth such acquisition since Excelitas was acquired by AEA Investors in December 2017.
In the fourth quarter of 2022, labelstock demand in Europe dropped sharply, after a poor first half of the year caused by strike related paper shortages from Finland, and a rebound in the third quarter, according to a new report from FINAT. For the year as a whole, European self-adhesive labelstock de- mand decreased by 4.7 percent compared to 2021. Compared to the fourth quarter in 2021, European consumption of paper and filmic roll labelstocks decreased by no less than 24 percent, the sharpest year-on-year decline in a single quarter recorded since FINAT commissioned the collection of quar- terly statistics in 2003. The contraction in demand, according to the re- port, is a correction of the ‘erratic’ market behavior in the previous three quarters that started with the long lasting paper strike in Finland in the period till Easter, the resulting paper shortages and in- creasing lead times, the refilling of label converter warehouses in the third quarter and the mounting general economic uncertainty in the intermediate period caused by the Russian invasion of Ukraine, rising energy and raw materials costs, rising interest rates and a looming recession due to losses in dis-
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Flexo Market News February 27, 2023 11
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