PETpla.net Insider 07+08 / 2023

No.7+8 2023 www.petpla.net D 51178; ISSN: 1438-9452 31 . 07 . 23 MAGAZ I NE FOR BOT T L E R S AND BOT T L E - MAK E R S IN THE AMER ICAS, AS IA, EUROPE AND AL L AROUND THE PLANET PETplanet is read in more than 140 countries MARKETsurvey Suppliers of compressors Page 28 Page 38 Page 42 Page 35 Page 32 LABELLINGPage 14

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imprint EDITORIAL PUBLISHER Alexander Büchler, Managing Director HEAD OFFICE heidelberg business media GmbH Hubweg 15 74939 Zuzenhausen, Germany phone: +49 6221-65108-0 fax: +49 6221-65108-28 info@petpla.net EDITORIAL Kay Barton Heike Fischer Gabriele Kosmehl Michael Maruschke Ruari McCallion Anthony Withers WikiPETia. info petplanet@petpla.net MEDIA CONSULTANTS Martina Hirschmann hirschmann@petpla.net Johann Lange-Brock lange-brock@petpla.net phone: +49 6221-65108-0 fax: +49 6221-65108-28 LAYOUT AND PREPRESS EXPRIM Werbeagentur | exprim.de Matthias Gaumann READER SERVICES reader@petpla.net PRINT Chroma Druck Eine Unternehmung der Limberg-Druck GmbH Danziger Platz 6 67059 Ludwigshafen, Germany WWW www.hbmedia.net | www.petpla.net PETplanet Insider ISSN 1438-9459 is published 10 times a year. This publication is sent to qualified subscribers (1-year subscription 149 EUR, 2-year subscription 289 EUR, Young professionals’ subscription 99 EUR. Magazines will be dispatched to you by airmail). Not to be reproduced in any form without permission from the publisher. Note: The fact that product names may not be identified as trademarks is not an indication that such names are not registered trademarks. 3 PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net Dear readers sweltering in the summer heat, Here I am, sitting in front of my computer penning this editorial and the mercury is almost hitting 40 °C. Who wants to sit next to an unhealthy air conditioner? But there are other ways of keeping cool indoors. Some have suggested placing a freezing PET bottle filled with water on the refrigerator. Naturally this piqued my interest. Could this be the answer – one bottle for one room? Let us look at the problem theoretically. I will spare you a lecture on thermodynamics but it is well known that 1m3 of air releases 1.2 kj (kilojoules) to cool by 1 kelvin, provided, of course, that pressure remains constant. On the other hand, 1 litre of ice requires 40 kj to go from -20° to 0°. In addition, the melting energy during the transition phase from solid to liquid is 334 kj. So, in a room of 60m3 (2.5m x 4m x 6m) we could, with a bottle of water on the fridge, reduce the air temperature by five kelvins. This should make us sit up and take notice – in theory at any rate. In practice, however, the reduction in temperature does not occur straight away but is a longer process during which cool air is transferred to walls and furnishings and its cooling effect is therefore dissipated. So, apart from a nice pool of water condensation under the bottle, nothing happens. However, as a brewer (regular readers will be well aware of my beer activities), I put the beer in PET water bottles in the freezer. Water in beer freezes at 0 °C, and alcohol at -100 °C. In the evening, I take out the freezing PET bottle, open it and turn it upside down. Only the alcohol comes out, carrying with it a concentrated taste of beer. The ice stays in the bottle. And now I have a room cooler that doesn’t work but a delicious Eisbock in my hand. I’ll give you two guesses as to which one I prefer! Cheers. Yours Alexander Büchler

PETcontents 4 PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 07+08/2023 Page 42 MATERIALS / RECYCLING 10 From wood and paper to PET - Glycol production from renewable raw materials LABELLING 14 PET bottles say goodbye to labels - Sipa and Água Monchique flip the skript 16 Breaking barriers in PET recycling - Discussing the increase in recoverability by using magnetic coatings on shrink sleeves 18 Advances in adhesive technology - Enabling PET bottles to achieve circularity 20 High speed labelling goes green - Latest generation of Opera and Kube labellers 22 Inspection system for all types of labels BOTTLE MAKING 25 The RePETable offer - Launching a one-step shop to seamlessly switch to recycled PET MAINTENANCE 26 Industry 4.0 meets PET facility equipment cleaning MARKET SURVEY 28 Suppliers of compressors TRADE SHOW REVIEW 31 Erema 40th birthday - Erema invites customers to discovery day and opens new R&D centre 32 rPET: made in West Africa and distributed from Dubai, UAE 33 Laboratory inspection & analysis - For all kinds of plastics, especially for rPET 34 Inline viscosity management - PET and polyolefin recycling 35 Plastic packaging solutions and recycling services - Interview with Dr Karl Hagspiel, Senior Circular Economy Expert at Alpla 38 Adhesive enables PET/PE component separation - Re-usage of PET/PE monomaterials from multi-layer packaging 39 Interpack 2023 review, part 2 42 Monomer purification with melt crystallisation in PET recycling 43 High-speed all-in-one solution for medium-sized bottlers BUYER’S GUIDE 48 Get listed! INSIDE TRACK 3 Editorial 4 Contents 6 News 43 Product 44 PET bottles for home + personal care 46 PET bottles for beverage + liquid food 47 Patents 54 Outer Planet LABELLING Page 16 Page 35

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PETnews 6 NEWS PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net GlobalData: Asia to lead global PET capacity additions by 2027 Asia is set to lead the global PET industry capacity additions with a share of 61.8% by 2027, by gaining capacities from new-build and expansion projects between 2023 and 2027, according to GlobalData, a leading data and analytics company. GlobalData’s latest report, ‘Polyethylene Terephthalate (PET) Industry Installed Capacity and Capital Expenditure (CapEx) Forecasts by Region and Countries Including Details Of All Active Plants, Planned and Announced projects, 20232027’ reveals that the total PET capacity of new-build and expansion projects in Asia is expected to be 5.21 million t/a (mtpa) by 2027. Increased usage of plastic in end use industry segments such as food and beverages, FMCG and pharmaceuticals are the key factors for PET industry growth in Asia. Nivedita Roy, oil and gas analyst at GlobalData, comments: “For the upcoming new build projects, the region is expected to add a capacity of 5.13mtpa from six planned and announced projects, whereas, for the expansion of the existing PET projects, the region is expected to add a capacity of 0.08mtpa from two announced and planned projects.” PET capacity: China and India key countries China and India are the key countries in Asia in terms of PET capacity additions. The main capacity addition in China will be from an announced project, Zhejiang Petrochemical Daishan Polyethylene Terephthalate Plant 2, with a capacity of 2mtpa. It is expected to commence production of PET in 2026. Nivedita concludes: “In India, the main capacity will be from Reliance Industries Dahej Polyethylene Terephthalate Plant 2, with a capacity of 1mtpa. It is expected to come online in 2026.” www.globaldata.com CCL Labels acquires IML business Creaprint SL in Spain CCL Industries, a leader in speciality label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, announced it has acquired privately held Creaprint S.L., based in Alicante, Spain. Creaprint is a specialist in mould label (“IML”) producer with a manufacturing facility in Alicante, Spain, and a sales office in Miami, Florida, with 2022 sales of $17 million. Creaprint has recently invested in a new production facility where operations will relocate later this year. The business will now trade as CCL Label Spain and become an integral part of the Food & Beverage unit in Europe. Coincidentally, the recently announced acquisition of Pouch Partners s.r.l. Italy (“Pouch Partners”) from Pouch Partners AG Switzerland, closed on June 6. www.ccllabel.com Recycling record for PET to PET: 17,700 tons in the first half of 2023 Following last year’s recycling record, PET to PET Recycling Österreich GmbH in Müllendorf, Austria, has once again recorded a record figure for the first half of 2023: 17,755 t of PET beverage bottles were kept in the resource cycle – an increase of more than 17% compared to the previous year (2022: 15,131 t). “We are of course delighted with the increase in the volume processed and thus an even better closing of the PET beverage bottle loop in Austria – however, we are looking forward to a very challenging future. In the second half of the year, a significant decline in recyclates used is expected on the market, due to a persistently difficult economic situation, still very high inflation and, above all, a large price difference between primary raw material (virgin) and secondary raw material (recyclate),” explains Christian Strasser, managing director of PET to PET. Innovations at PET to PET: Construction of a PV plant The site area for the storage of food-grade finished products, which was expanded in 2022, was successfully roofed over in a further step. A photovoltaic system with an area of 6,400m² and an output of 1,200 kWp is currently being installed on the completed roof structure. This will involve the use of 2,373 PV panels, which in future will cover around 8% of the electrical energy required from the company’s own generation. In further expansion stages, this value is to be further increased. In the past, the recycling company has already relied 100% on renewable energy to operate its plants. www.pet2pet.at

7 NEWS PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net New study presents roadmap for circular PET packaging and polyester textiles in Europe A new study published by system change company Systemiq, presents a comprehensive roadmap for achieving a high-circularity, low-emissions system for PET packaging and polyester textiles in Europe. PET packaging and polyester textiles are made from the same plastic molecule, which makes up one-quarter of consumer packaging (bottles and trays) and the vast majority of synthetic textiles (clothing, homeware and industrial) used in Europe. Today, this material is mostly made from virgin feedstocks and three-quarters of PET/polyester waste is disposed to landfill or energy recovery after just one use. The study highlights the transformative potential of ambitious and complementary circular economy approaches, including demand reduction, reuse, mechanical recycling and chemical recycling. By 2040 – compared to a continuation of historical trends – these measures could reduce overall PET/polyester consumption by one-third, waste volumes sent to landfill or incineration by ~70%, and greenhouse gas (GHG) emissions by half, while the supply of recycled content would be sufficient to meet the requirements of the draft Packaging and Packaging Waste Regulation (PPWR). Moreover, they could generate 28,000 net new jobs and an additional €5.5 billion/a in revenues for recycling industries. Titled ‘Circular PET and Polyester: A circular economy blueprint for packaging and textiles in Europe’, the study outlines six priority actions needed to transform the PET/ polyester system. These actions could slow consumption growth and establish complementary mechanical and chemical PET/polyester recycling systems that increase recycling rates and the availability of high-quality rPET. The findings come at a critical time, coinciding with the EU’s Single-Use Plastics Directive Implementing Act and the development of the draft PPWR. The study was developed under the guidance of an independent Steering Group comprising experts from the public sector, academia, civil society, and industry. It was commissioned and funded by Eastman and Interzero. www.systemiq.earth Ceresana study on the European label market Ceresana, a market research firm, has analysed the market for labels in 21 European countries: Consumption of paper and plastic labels in Europe is expected to increase by around 1.5% per year until 2032. The total area of small labels and stickers adds up to millions of square meters. As environmentally friendly packaging is increasingly in demand, labels made from biodegradable or recyclable materials can score well in conjunction with biobased adhesives. Wine and beer drinkers usually do not have to worry in this regard: labels for reusable bottles are traditionally made of paper and attached with washable starch or casein adhesives. However, market shares of glued labels are currently decreasing. The high inflation rate is troubling many consumers. Currently, the most dynamic development is occurring in the “cosmetics and pharmaceuticals” sector, which consumes more and more plastic labels. In the production of shrink film labels (shrink and stretch sleeves), the controversial plastic grade PVC is increasingly being replaced by PET. Demand is increasing in particular for PET-G modified with glycol. Labels are becoming smart and talkative QR codes, RFID tags and near field communication (NFC labels): labels are increasingly becoming as “smart” as digitalisation and the Internet of Things demand. Smart labels can communicate with smartphones or other devices: Labels report the expiration products or other important information about the contents of the packaging; they make supply chains transparent and ensure anti-counterfeiting and traceability. However, the biggest growth occurs in in-mould labels (IML) with Europe-wide growth of around 2.4% per year, which usually can be recycled well because they are made of the same plastic. The study The study presents label consumption as well as revenues generated with labels and forecasts up to the year 2032. The data on label consumption is broken down by areas of application, by different label types, and by materials. The study also provides company profiles of the most important producers of labels. https://ceresana.com/en/produkt/labels-market-report-europe Doehler Group: acquisition of SVZ Doehler, a global producer, marketer and provider of technology-driven natural ingredients, ingredient systems and integrated solutions announces the acquisition of SVZ, subject to regulatory approval. This is intended to strengthen Doehler’s portfolio of natural red fruit and vegetable ingredients and its global market presence, expanding the operations in the USA and Japan. SVZ is known for its high-quality purees, concentrates and ingredients of sustainably sourced vegetables and red berries. With production sites in the USA, Spain, Poland and Belgium, SVZ has established a strong global presence and successfully built a base of premium customers in the food, beverage and lifescience & nutrition industry. With this acquisition, customers are expected to benefit from an even broader ingredient portfolio and larger raw material base. Consumers’ interest in healthier nutrition creates a rising demand for ingredients that offer better nutritional value and superior sensory experiences from sustainable raw materials. SVZ’s portfolio contributes to this trend by offering a variety of low-calorie, high-fibre and nutrient-rich fruit and vegetable ingredients that enhances the overall nutritional content of food and beverages. SVZ’s products seamlessly integrate with Doehler’s portfolio of natural ingredients and ingredient systems. www.doehler.com

8 NEWS PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net The Wine Society trials PET bottles following packaging research Following the publication of its Alternative Packaging for Wine report in May, The Wine Society has embarked on the second phase of its packaging trial. Four of the British Society’s most popular wines, including its top-selling wine, The Society’s White Burgundy, will be released in rPET bottles in collaboration with Packamama. The flat-pack, recycled plastic bottles are considerably lighter than glass bottles weighing 63 g compared to an average of 460 g for glass bottles, resulting in a lower-carbon footprint, as well as offering consumers greater convenience and portability through their space-saving design. The bottles are also fully recyclable. As part of its bold Sustainability Plan and goal of halving its total carbon footprint by 50% by 2023, The Wine Society earlier this year commissioned an independent study to identify and review all available alternative packaging formats to glass, and the flat-pack, recycled plastic bottle by Packamama came out as one of the better options. Light to transport, space saving across the supply chain, and made from 100% recycled PET plastic, the bottle and cap are fully recyclable by 99% of local authorities in the UK unlike other packaging options like cartons and pouches. While a shelf life of up to 18 months is technically possible, Society members are being recommended a drinking window of six months for this bottle format. Dom de Ville, Director of Sustainability and Social Impact comments: “In our recent carbon report, we shared the news that glass bottles account for 31% of The Society’s total emissions. To achieve our ambitious reduction targets, we need to significantly reduce our emissions attributable to packaging. One way to do this is putting more of our wines into lower-carbon packaging formats. Although rPET might sound controversial, with today’s technology and in the absence of a proper system in the UK to collect and reuse glass bottles, the recycled plastic bottle is a really good option. It has a lower-carbon footprint than glass and can be recycled at home. “While we recognise there is a plastic pollution problem, it is not necessarily plastic itself that is the problem, rather it is what we do with it. This is why we are taking a practical approach to plastic, seeing its benefit in our efforts on climate change, rather than taking a black-or-white stance that all plastics are bad. This bottle is made from 100% recycled plastic and is recycled everywhere in the UK – which helps to support a more circular economy.” The trial of the Packamama rPET bottles follows the release of six of The Society’s wines in bag-in-box (BiB). The BiB trial was a great success with the wines selling out in three weeks. This second packaging trial will support The Wine Society to reduce its carbon emissions and should members back the new format, the business will commit to the bottles becoming a permanent fixture in the range. Pierre Mansour, The Wine Society’s Director of Wine adds: “We are trialling these bottles with wines designed to be drunk young and our tastings confirmed that the quality compares favourably with the same wines in glass and BiB. While rPET has less of a track record with wine, we will want to satisfy ourselves, and members, that there is no impact at all on quality. Only then, and assuming members continue to buy them and their feedback is positive, will we include them as a more permanent fixture in our range.” Santiago Navarro, CEO & Founder of Packamama concludes: “The Wine Society is taking major steps to reduce their emissions. Having been founded in 1874, when atmospheric CO2 measured 288 parts per million (ppm), they are one of the very few wine businesses still around today that knows a world below 300 ppm; which is how our Earth has been for at least the last 800,000 years, probably 3 million years. Nowadays, we have passed 420 ppm and at 430ppm we will be at 1.5 °C of warming, which the IPCC recommends that we stay below. We are very grateful to The Wine Society for their pioneering climate action and are deeply honoured to collaborate with them to help them reduce their emissions through trialling our eco-flat bottles.” www.packamama.com www.thewinesociety.com Veolia PET Germany to close Rostock recycling site Veol ia PET Germany GmbH wi l l close the PET recycling site in Rostock, Germany, on December 31, 2023 after more than 20 years due to the lack of long-term security for the production site. The closure will affect a total of around 50 employees. This decision is based on an estimation of the market with regard to the will to close the loop for PET beverage bottles. It has not been possible to secure sales of recycled PET in cooperation with the beverage industry and/or retailers, says Veolia. The willingness of all market participants to participate in a long-term perspective for the purchase of recycled PET on economic terms is the prerequisite for the PET loop. In this volatile climate, the permanent, economic operation of a PET recycling plant is not possible for Veolia. Veolia PET Germany GmbH, based in Hamburg, is part of Veolia Umweltservice GmbH and, thanks to its many years of experience, is one of the leading companies in all areas of the PET recycling market in Europe. The production sites in Frauenfeld (Switzerland), Fetsund (Norway), Norrköping (Sweden) and the central marketing company of all plants in Hamburg are not affected by the closure. www.veolia.com

9 NEWS PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net

MATERIALS / RECYCLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 10 Glycol production from renewable raw materials From wood and paper to PET by Kay Barton Forestry and paper company UPM, a leading global producer of sustainable paper, wood, biochemicals and composite products and energy, with operations in 11 countries on six continents and headquarters in Helsinki, Finland, is about to start up its new biorefinery in Leuna, Germany. The €750 million investment to produce biochemical products is part of the company’s strategic plan to use renewable versus fossil raw materials for use in various industries, including automotive, textiles but also plastics and packaging. A key product from the new plant in Leuna will be a woodbased bio-MEG, which should soon gain a foothold in PET production. We spoke to Dr Michael Duetsch, Vice President of the UPM Biochemicals division, about a technological vision with potential and reach. May 30, 2023 We met: Dr Michael Duetsch, Vice President UPM Biochemicals “Our business is based on forests,” Dr Duetsch began the conversation. “We plant and harvest forests to make renewable and recyclable materials and products. Many applications and a variety of materials are based on organic chemistry and require carbon in their production. While decarbonisation is happening in energy production and in many aspects of transport, organic chemical compounds, which are made of carbon molecules, cannot be decarbonised,” said Dr Duetsch. His enthusiasm from the dynamism and energy with which UPM is building a new business is palpable. He sees what he is about to do with UPM in Leuna as pioneering a gamechanger. Dr Duetsch has now been part of UPM for 12 years. Before his current job, he had already worked for 16 years in the chemical industry for various companies. Now he is in the process of creating a new business area in the company - a biorefinery that converts wood, residues and sawdust into chemicals. He further explained: “The inclusion of a renewable carbon cycle and its role in durable applications is, in our view, an essential component for sustainability in chemistry.” Sustainability, the biochemical way The history of the UPM Kymmene goes back to the beginnings of Finnish forestry. The Group’s first mechanical pulp mills, paper mills and sawmills were commissioned in the early 1870s. Some 150 years later, the company, which employs more than 17,000 people worldwide and had a turnover of €11.7 billion in 2022, is putting alternatives to fossil fuels at the heart of its operations with its “Biofore Strategy”, already ten years in the making, ambitiously driving its own transformation to become a leader in the bioeconomy. “One of the first success stories based on this strategy was our biofuels business unit,” Dr Duetsch recalled. “Here we had developed a process to convert tall oil, a by-product in pulp mills, into biodiesel and bio-naphtha.” Since 2015, UPM has been operating a corresponding plant in Lappeenranta, Finland, with an annual capacity of 120,000 t, and is currently examinThe biorefinery in Leuna under construction Vice President of UPM Biochemicals Dr Michael Duetsch

MATERIALS / RECYCLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 11 MATERIALS / RECYCLING 11 ing the possibility of expanding production in Rotterdam. For bio-glycol production, the business unit uses beechwood from sustainable forest management and side streams from sawmilling operations. All of the wood will be FSC- or PEFC-certified. However, the company is also involved in the planting, growing, harvesting and collecting of beech wood itself and claims not to compete with land for food production or to use any fertilisers - two of the biggest criticisms of some other organic raw materials such as sugar cane. UPM also uses wood from routine thinnings which are required for sustainable forest management. It is important to note that currently more than 60% of the beech wood harvested in Germany are burnt for energy generation. In the processing stage, the cellulose is then turned into bio-glycols, lignin into functional fillers (used mainly in the automotive and rubber industry) and hemicellulose into industrial sugar. “Unlike oil or natural gas, the use of renewable carbon from wood to make biobased products - along with carbon from direct CO2 use and carbon from recycling existing materials - will play an important role in achieving a net-zero future,” Dr Duetsch is convinced. “In a world where 96% of products, including plastic packaging, rely on chemical intermediates, the chemical industry is a key enabler and urgently needs to find alternatives to fossil feedstocks to help address the climate crisis.” Biorefinery (almost) ready for take-off The project, which does not yet exist in this form anywhere else, is scheduled to start at the end of 2023. More than 100 jobs have been created in the 16-hectare biorefinery and a total of 220,000 t of bioMEG and lignin-based Renewable Functional Fillers (RFF) sold under the brand UPM BioMotion. Use segments include textiles, packaging including PET, coolants, refrigerants, composites, pharmaceuticals, cosmetics and detergents. “We will only use locally sourced and certified beech wood as raw material,” explained Dr Duetsch. “This sustainable source will be used to produce a new generation of renewable bio-based ‘drop-in’ glycols.” Instead of burning the harvested beech wood for energy production, using it in more durable and recyclable products would make much more efficient use of the (MKMXEP VEXMSREP TVSƤXEFPI ;LEX IPWI# SACMI.COM 300 4VIJSVQ MRWTIGXMSR ERH TVSGIWW IRLERGIQIRX MRGPYHIH DIGITAL (MKMXEP TVSGIWW GSRXVSP VIEGLIW TVIZMSYWP] YRXLMROEFPI PIZIPW STIRMRK YT XLI MRHYWXV] XS -S8 WGIREVMSW RATIONAL 7%'1- 4VIJSVQ :MWMSR 7]WXIQ MRGPYHIH JSV EHZERGIH GSQTVILIRWMZI TVSGIWW GSRXVSP PROFITABLE '330 TSWX GSSPMRK MRWMHI GSSPMRK W]WXIQ WLSVXIRW G]GPI XMQIW ERH PIEHW XS QSVI TVSƤXEFPI TVSHYGXMSR momic

MATERIALS / RECYCLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 12 220,000 t bio-MEG and lignin-based renewable functional fillers to be produced here from the end of 2023 carbon contained in the wood and thus also make a greater contribution to mitigating climate change. Dr Duetsch continued, “We need to reduce the amount of wood used for energy generation and increase its material use to promote a circular economy and work towards eliminating the need for new fossil raw materials. Compared to the fossil MEG market, which amounts to 33Mt/a, our volumes are certainly micro-quantities, but it is a sensible step nonetheless as it clearly shows the way towards a renewable carbonbased chemistry and can enable further investments in renewable chemicals and recycling facilities. These are critically needed as almost all the carbon used in the chemical system today comes from fossil feedstocks. In general, however, we see a multitude of opportunities for bio-MEG - and PET is certainly a key application here. But we also see great potential in, for example, engine and battery coolants (MEG usually consists of 95% of this composition) and are experiencing interest from the polyester, as well as the polyurethane industry.” Applications in the PET industry The potential applications are particularly exciting for the plastic packaging industry and thus also for the PET industry. According to UPM, the wood-based chemical intermediates would offer the same chemical properties as fossil-based chemicals, but with 70% less CO2 emissions. In addition, little or no operational changes or retrofitting of existing production facilities is said to be required. “It can be easily integrated into existing PET production,” says Dr Duetsch. “Ideally, this bio-based PET will be mechanically recycled at the end of its life, just as its fossil counterparts should be. If this is not possible, there is the option of chemical recycling through glycolysis. By integrating bio-PET, we see an important step towards a holistic circular economy in the PET value chain.” Once the plant is up and running, they plan to supply CSD and water bottle manufacturers, among others. Bio-MEG from UPM’s own pilot plant has already been successfully processed into PET and verified by beverage producers. Bio-MEG also as a complement to and in rPET According to UPM, rPET will have to cover the lion’s share of carbon raw materials in the future in order to increasingly initiate and maintain sustainability and the circular economy. Dr Duetsch commented: “It is extremely important to reuse and recycle materials. But even in a functioning circular economy, there will always be losses in the process. These losses can be offset, for example, by sustainable raw materials, such as our Bio-MEG, which are already available now and help create a circular carbon economy. The admixture of bio-based MEG can also be useful in the production of rPET and the recycling-related losses. Freshly heralded partnership to produce PETG On June 1, the company made another step official, namely the cooperation with the Portugal-based international copolyester producer Selenis, a subsidiary of the IMG Group. The aim here is to produce sustainable PETG using UPM’s Bio-MEG. Selenis focuses on developing products that are fully recyclable in the PET stream and has technologies that can convert plastic waste into new polymers. This should enable converters and Selenis brand owners to adapt their products so that they too can reduce their CO2 footprint by adding bio and recycled content while maintaining performance. www.upmbiochemicals.com

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LABELLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 14 Sipa and Água Monchique fl ip the script: PET bottles say goodbye to labels Portuguese mineral water supplier Água Monchique has taken a lead in producing PET bottles that are easy to recycle: with the help of PET processing equipment specialist Sipa, it has developed label-free bottles. This means that the only part of the complete package not in PET is the PP cap, which remains attached to the bottle after opening in accordance with EU legislation, but which is easy to remove in recycling operations. Not only that: the bottles are produced in 100% post-consumer recycled material. The new bottles need no label because all the information the customer needs is integrated directly into the bottle wall by embossing during the moulding process. Sipa provided various aspects of support to Água Monchique, which produces the 555ml bottles on the Xtra 8 advanced rotary stretchblow moulding system. Sipa’s input goes even further: the Xtra 8 is in what the company calls a Sincrobloc configuration, meaning that it is directly integrated with the filler, the Flextronic S 8/50/10. From the idea to the 555ml bottle The Natura project took life last September during the Drinktec fair in Munich, when top executives from Água Monchique went onto the Sipa booth to meet the design team. While they were looking at one particular innovation, a prototype PET bottle for sparkling wine created by Sipa, the idea came up for another innovation, a label-free bottle for water. “The idea came up spontaneously, with the Sipa design team proposing the concept, as well as the idea for upsizing (from the 500ml format), in contrast to the downsizing that is generally practised today,” says Sipa’s Sales Area Manager. “A 555ml bottle gets to be positioned higher on supermarket shelves than 600- or 750ml sizes, so it will have more visibility.” The customer liked the idea and appreciated Sipa’s increasing offer of packaging solutions and its full range of technologies for preform and containers production. The goal: carbon-neutral by 2030 Água Monchique has for a long time paid considerable attention to the sustainability of its operations and its products. Its strong innovative spirit had already led it to develop a 720ml bottle in 100% rPET. The new project, called Monchique Natura, takes the company another important step down the road to sustainability: its goal is to be carbonneutral by 2030. The new bottle is not only label-free and totally made in rPET, but also very light, weighing just 19 g. The bottles will be sold individually and in six-pack cardboard containers that sport the FCS mark (FCS is the Forest Stewardship Council), indicating that they are made from 100% recycled materials. “This is a bottle completely produced from other bottles, in which we replace the use of labels with fingerprints on the plastic itself, minimising the impact of this activity on the environment and proceeding with a strategy focused on promoting a true circular economy,” says Vítor Hugo Gonçalves, CEO of Água Monchique. Monchique Natura is the first Portuguese bottle and one of the first in the world to appear on shop shelves without labels. It will go on sale in the third quarter of the year. Monchique Natura will join a group of other solutions that Água Monchique has introduced in what Gonçalves calls “the relentless search for best practices to make our business model more sustainable and more in line with circular economy models. Sustainability will remain at the forefront of our actions and Monchique Water will deliver on its promise to contribute to the betterment of the current generation, as well as generations to come.” Sipa has collaborated on other Água Monchique projects in the past. The Portuguese company already uses Sipa’s two production systems to make bottles in seven different formats. The “regular” Monchique range is available in five sizes, from 340ml through to 5 l, all with simple and attractive designs. An Xtra 8 produces the smaller sizes, while an SFL 6/4 XL, operating in a Sincro set-up with a Bigfill volumetric gravity filler, is used for the 5 l bottles. The 5 l bottles in particular stand out for their low weight: they have been validated at 66 and 64 g, which is close to 10 g lighter than the norm in Portugal. www.sipasolutions.com LABELLING

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LABELLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 16 Discussing the increase in recoverability by using magnetic coatings on shrink sleeves Breaking barriers in PET recycling by Gabriele Kosmehl Shrink sleeve labels have long been identified as an obstacle to PET bottle recycling. With their patented magnetisable coatings, the start-up Magnomer aims to overcome these challenges. Their Magmark coatings, when applied to shrink sleeves, are claimed to allow efficient and economical separation – utilising existing infrastructure. The technology has garnered industry recognition and is poised to boost PET recycling rates. PETplanet: Ravish, first of all, can you briefly introduce your company, please? Ravish Majithia: Magnomer is a materials startup located in Framingham, MA, USA & Mumbai, India, introducing a patented magnetisable coatings technology called Magmark to transfer sortability features for recyclable packaging. Magmark coatings are printed using industry standard techniques as a transparent varnish to impart magnetisation on flexible films such as bottle labels. This complements widely used magnetic separators in plastics recycling to economically separate problematic labels. Magnomer’s coatings technology is a packaging design tool used to resolve long standing sorting issues in package recycling such as label contamination. Magnomer has received industry recognition from the Association of Plastic Recyclers (APR) on the basis of a first ever commercial scale recyclability test of shrink labelled bottles. PETplanet: Which labels exactly belong to the “problematic” category when it comes to economic separation and how can companies implement your technology in practice? Ravish Majithia: Shrink sleeve labels are simultaneously an excellent marketing resource - they are the fastest growing label category; and a significant deterrent to circular recycling of PET bottles. Major recycling associations like Recoup in UK, the Association of Plastic Recyclers (APR) in North America and European PET Bottle Platform (EPBP), Petcore and Recyclass in Europe have identified shrink sleeve labels and specifically PETG shrink sleeve labels as one of the biggest issues in PET recycling. The problem is sortation - sorting PETG shrink sleeve labels away from the PET bottles stream is the need of the hour. Magnomer has developed a magnetisable coating which allows for easy sortation of shrink sleeve labels away from the PET stream. Magmark SS coating is a transparent, foodsafe coating which can be printed on the labels using common high speed printing techniques like gravure and flexographic printing in high speed processes. The coating can be printed along with existing graphics requiring little to no modification to the printing operations, allowing for easy adoption with no capital expenditure required. We have proven our technology on a commercial scale. Over two metric tons of bottles with Magmark SS coated shrink sleeves were introduced into regular operations at two commercial PET reclaimers, Evergreen recycling and Indorama Ventures. More than 99% of the contaminating label flake was removed using magnetic separation. Based on the positive feedback from the reclaimers and their glowing testimonials the Association of Plastic Recyclers (APR) in North America awarded Magnomer the Innovation Recognition in June 2023. The coating itself does not impact any bottling process. PETplanet: Do recyclers need additional equipment to achieve a good separation performance of magnetisable ink sleeves? LABELLING Ravish Majithia, Co-Founder & CEO at Magnomer

LABELLING 17 PETplanet Insider Vol. 24 Ravish Majithia: Based on a survey conducted by the Association of Plastic Recyclers, PET reclaimers already have magnetic separators as a part of their flake decontamination process. Removal of metal contamination from PET is important and magnetic separators are commonly used to remove small metal pieces from PET flake. Magnomer’s coatings utilise this existing infrastructure to separate undesirable shrink sleeve flake as well. PETplanet: What is the percentage of separation that can be achieved compared to conventional sleeves‘ separation? Ravish Majithia: In the case of PETG, the most common sleeve resin used in North America and EU, more than 98% of sleeve flake was magnetically separated using Magmark SS coatings. This is compared to almost zero separation if our coating were not present for PETG removal. PETplanet: You mentioned that the Association of Plastic Recyclers (APR) recently awarded you the responsible innovation award for the Magmark SS magnetisable coatings. How did the process work, what kind of tests were carried out? Ravish Majithia: The Innovation recognition by APR is based on high volume commercial recycling tests. This includes: Printing over 250,000 “innovation“ bottles using standard PETG sleeves with Magmark SS coating Testing a subset of these bottles at three commercial MRFs to show that the use of Magmark SS coatings do not impact MRF operations; Introducing over 2 metric tons of “innovation“ bottles at two different PET reclaimers namely Indorama Ventures (facility in Alabama, US) and Evergreen Recycling (facility in Ohio, US) to showcase magnetic removal of sleeves. As a part of the recognition process, the MRFs and reclaimers provided public testimonials to APR’s review committee which subsequently awarded the recognition to Magnomer. PETplanet: Is Magmark limited to use on PET bottles‘ shrink sleeves or can it also be used for other types of packaging/labelling? Ravish Majithia: Magmark technology can be applied to various categories of labels or flexible packaging – indeed anywhere where sorting of said flexible film is required. Our various current products and demo videos can be found on our website. PETplanet: Thank you very much Ravish! www.magnomer.com

LABELLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 18 Enabling PET bottles to achieve circularity Advances in adhesive technology Changes in the food and beverage packaging sector never stop, with new materials, design updates, and sustainability demands creating challenges for manufacturers and suppliers alike. However, many believe the race to produce even thinner and low weight PET bottles might be reaching its limits with PET per litre of bottled water reaching an all-time low. Adhesives play several crucial roles, from helping to ensure the recyclability of the package and bottle, to product security, extending shelf life, and reducing waste. That is also why adhesive formulations add value to this industry while providing the necessary versatility to perform across different applications and in various production environments. For the PET bottle recycling stream, it is paramount to have the best possible collection, sorting and cleaning process to reach the highest possible quality. The entire chain, starting with the consumer participating in the collection within a separate and dedicated stream for PET bottles, reduces the need for sorting. Cleaning the PET bottles to free them from leftover liquids, labels, and adhesives is a key step in the process. A hot alkali bath washes off specifically formulated adhesives for this purpose and removes any contamination from previous filling goods. The wrap-around and full surface label adhesives are customised for efficient wash-off and are certified by third party bodies. Qualification requirements for certification bodies in Europe, the U.S., and other countries such as South Korea, South Africa, or Australia can differ somewhat. Plastic waste reduction and leakage into the oceans is on the top of the agenda of the international community with on-going United Nations negotiations to end plastic pollution and finalise a legally binding document by the end of 2024 to this effect. Considering the trends and these international forces, certification bodies are seeking greater cooperation and are working towards mutual recognition of testing institutes and possibly testing protocols and certifications. International brands seek to use packaging components that are certified for as many geographies as possible to satisfy the export strategies of international products, highlighting the need for greater international coordination. How can adhesive suppliers support beverage manufacturers using PET bottles? As a well-known adhesive manufacturer worldwide, H.B. Fuller provides global support while working to qualify and certify products for local markets across the world. The alkali wash-off labelling product line, H.B. Fuller Earthic 4001 and 4010, are wrap-around labelling grades for plastic labels on PET bottles LABELLING

LABELLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 19 that are available on a global scale. The company’s international technical teams are working with local certification bodies to obtain further wash-off assessments. To date, H.B. Fuller has the following certifications for Europe: PET Cycle, Returpack, and Veolia. In addition, the U.S. team is working on the Association of Plastic Recyclers (APR) approval process. Also, in other regions, Fuller’s experts are teaming up with customers to follow recognised standards and finalise certifications that assure the right the way in the markets served. H.B. Fuller works directly with supply chain associations such as RecyClass, APR, or Australian Packaging Covenant Organisation (APCO) to cooperate with industry partners on design for recycling guidelines and testing protocols. The input from an adhesive supplier is particularly important as adhesives, and especially wrap-around labelling adhesives on PET bottles, have a huge impact, even though they are a small component of the overall packaging. When considering the circular nature and key success factors of PET bottleto-bottle recycling, adhesives play a crucial role in ensuring high quality, direct food contact approved for PET production. As with any other business, recyclers are seeking to run the most efficient process as possible, paying close attention to water and energy usage of their own operations. The cleaning of PET bottles is an essential step of the PET recycling process when any remaining liquids, labels, adhesives, and any other contamination need to be removed. Thus, an easy and effective label removal and wash-off is paramount to a state-ofthe-art recycling process. H.B. Fuller said that they are now focusing on creating smart materials and systems that reduce costs, improve efficiency, and make products more sustainable. Advanced technologies like H.B. Fuller Earthic 4001 and 4010 need to be specifically formulated to enable easy wash-off. Elizabeth Staab, Global Packaging Sustainability Manager, H.B. Fuller, says: “We believe the next step in development is how to reduce the overall carbon footprint. Thus, with careful selection of appropriate raw materials and efficient manufacturing practices, more sustainable solutions can be achieved in future. One thing is for sure, innovation does not occur in a vacuum, but at the interface of customers, equipment, substrate suppliers, and technical services.” www.hbfuller.com 2023 will see the launch of the Plastics Recycling Show Middle East & Africa. Dubai World Trade Centre, Dubai Interested in booking a stand? Contact mabarber@crain.com www.prseventmea.com Organised by Supported by MIDDLE EAST & AFRICA 5-7 September 2023 Dubai Register for your FREE entry badge

LABELLING PETplanet Insider Vol. 24 No. 07+08/23 www.petpla.net 20 Latest generation of Opera and Kube labellers High-speed labelling goes green Sacmi Beverage says that the large, world-spanning industry is also multi-faceted and demands solutions that can be optimised for both high volumes and medium output rates, on which format changeover speed/adaptability are essential. LABELLING Sacmi Beverage has sold over 2,500 labelling machines worldwide, including both stand-alone systems and equipment integrated with complete stretch-blowing and filling lines. It recently presented the latest versions of its established Opera and Kube labelling machines that, the company says, provide comprehensive solutions that combine high productivity and versatility on various labelling technologies and systems. Sacmi’s Flexi Opera labeller range is designed for a full range of container types, including cylindrical or shaped, in glass, plastic or metal. The company says that it offers a combination of versatility and very high output rates. The Opera range has been available for many years, during which time it has been upgraded and evolved. Its multi-material approach is integrated with the ability to use different labelling systems, including the application of pre-cut, wraparound or self-adhesive labels, on a single platform. Manufacturers can also apply one or more labels on the same container using the same technology or a combination of different technologies, such as cold glue, roll-fed, adhesive, or hot melt. Flexi Opera is available in a range of configurations and can be installed on existing lines. The machine is designed within optimised overall dimensions and has extensive scope for customisation to customers’ particular requirements. Sacmi says that its Kube range takes a significant step upwards in a single machine’s ability to handle diversified product mixes and frequent changeovers, with all format changeover tasks able to be managed directly via the operator interface. Users can save various recipes and recall them as necessary, which means they can maintain efficiency in sectors like wine, beer and spirits, where format changeovers are standard, using multiple labelling technologies and systems. Kube offers a plug/play approach. Its modular framework allows manufacturers add a wide range of options, such as cold glue, hot melt, self-adhesive. The machine incorporates an automatic bottle positioning system and is available with Sacmi’s proprietary LVS labelling vision system, to deliver comprehensive process quality control. Sacmi labellers are also designed to incorporate new labelling systems and materials that aid the creation of a returnable PET supply chain. Sacmi Beverage has already developed and installed many exclusive solutions, across the world. These include, in partnership with key raw material producers, development and supply of new washable glues, alongside new systems that apply labels with fewer glue spots, making it easier to recycle PET containers for food use. Glue can be applied exclusively on the overlap area of the two flaps in the case of wrap-around labels. During recycling, these are separated by a Sacmi-supplied cutting tool. Sacmi says that the latest versions of its solutions aim to accompany customers through the green transition: helping them face regulatory changes being enacted across the world and ensuring they can respond to consumer demand for innovative, sustainable packaging. www.sacmi.com Flexi Kube labeller The Flexi Opera labeller is designed for a wide range of container types.

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