Narrow Web Europe

Another paper mill bites the dust

Feldmühle is, or rather was, a major player in the German label and packaging markets.

The team at Marzek Etiketten has emerged as the first Austrian label converter to install the HP Indigo 6K+ digital label press.

Feldmühle is, or rather was, a major player in the German label and packaging markets. Based near Hamburg, the firm dates back to 1904, and for the last few years it has been teetering on the brink. It gave up making graphic papers to concentrate on the more buoyant packaging and labeling sectors. 

Feldmühle ships annually some 80,000 tons of label and flexible packaging papers to 90 countries worldwide, and it describes itself as the world’s leading producer of non-adhesive label papers. But in June of this year the company announced that it had been “adversely and unforeseeably affected” by unexpectedly increased energy costs (blame the Russians) and raw material prices (blame everybody) and had applied to enter into receivership. In 2018 Feldmühle underwent a similar process twice, during which it halved its workforce to 200 and shut down its second paper machine. The court-appointed receiver is expected to report before the end of this year on the company’s long-term prospects.

Before you have visions of an Indian goddess, sorry, it’s just a new robot for handling an old problem. No one knows how many pallet labels get applied daily, but it must be a very large number indeed. Domino’s latest labeler is the Mx350i-eP, described as “a unique pallet labeler with a three-joint electric arm that enables efficient and secure labeling on up to three sides of each pallet at the end of your production line.”

Designed for flexibility and ease of use, this new system is said to fit easily into a production line while supporting sustainability goals, and to require no additional safety devices thanks to its intelligent technology. Based in England, Domino employs 3,000 people and operates in 120 countries.

Milram is not a brand name well known outside its native Germany, but this company which packs and markets cheeses is suddenly in the middle of a political maelstrom. And all because of a package showing people of different races all laughing and smiling. 

Communication consultant Stefan Mannes reckons the idea was fine, a way of helping the product appeal to a younger age group. Alas, online protests rejected it as “woke,” and called for a boycott. Mannes reckons that Milram made two mistakes: one, to promote “diversity” (which annoyed Germany’s right wing), and then, two, to apologize publicly which infuriated the left. Which only goes to prove that even labels cannot please all of the people all of the time.

Focus Label Machinery, headquartered in the UK, is a special case amongst label press manufacturers. It specializes in narrow web flexographic and digital hybrid printing solutions, but it has never expanded to world status (it currently has 20 employees). The manufacturer has just installed a second Reflex 330 line, a high-speed label printing and finishing system, for its client Vista Labels. According to Vista Labels’ production director, Stuart Mellish, the installation is part of the company’s ongoing investment in modern manufacturing technology. “We are committed to improving quality and efficiency while reducing waste,” Mellish says. “The Reflex 330 is straightforward to operate and was integrated into full production just days after delivery.”

James Thomas, head of sales at Focus, says the continued collaboration with Vista Labels reflects a strong working relationship developed over several years.

Austria always seems to draw the short straw when it comes to news from Europe, so it’s a pleasure to report on two recent developments. One concerns the latest investment by Marzek Etiketten at its plant near Vienna. 

This label converter has installed the latest HP Indigo 6K+ digital press with its new SmartControlSystem, and it is the first in Austria to do so. This converting line comes with an extensive portfolio of special colors and finishing options for high-resolution printing across various applications, including self-adhesive labels, in-mold labels, wraparound labels, flexible packaging, and folding cartons. “The growing demand from our customers for tailor-made, flexible approaches is the reason why we at Marzek rely on digital-conventional hybrid technology,” says Stefanie Wareka, chief marketing officer and of the fifth generation of the Marzek family. 

Further investments in digital and hybrid technologies are planned for the coming years, both for highly finished labels and industrial mass production. Marzek grew originally by printing wine labels and today has sales of around $80 million.

The Austrian-based technology specialist showcased new approaches in the field of security labels, not at Labelexpo Europe but at Fachpack 2025, which took place in Nuremberg, September 23-25. 

At the show was Securikett’s Structure Coating technology, which can be used, for example, to make resealable lid labels for plastic packaging. Another key focus was on label solutions for the Digital Product Passport (DPP). For this application, Securikett offers a comprehensive solution consisting of tamper-evident labels with unique QR codes and the cloud-based Codikett platform. Still family-owned and managed, Securikett now has some 90 employees and is growing fast. 

France has only three narrow web machinery manufacturers, and it caused some consternation when earlier this year one of them filed for bankruptcy. SMAG (aka SRAMAG) is a family-run business making mainly finishing equipment for the label business, and it was majority-owned and managed by Stéphane Rateau. Two years ago, the Chinese company Rhyguan, which also makes narrow web machinery, took a 25% holding in SMAG, but it would seem that the mixture did not gel as expected. SMAG was disadvantaged by having A B Graphic as its direct – and heavyweight – competitor, and in the absence of any buyer it looked as if SMAG was doomed for the dustbin of history. But now, at the 11th hour, comes a French white knight in the unlikely form of a group called X&Cellence (don’t how you pronounce it), which already owns a French label converter, the DB Group. As from mid-September of this year, SMAG has been renamed SMAG-X. 

Alexandre Burgot-Dervin, the new owner, already manages several other companies in the label sector. This acquisition is part of his strategy of external industrial growth. “I emphasize that word,” says Rateau, “Because Alexandre is a true industrialist, same as me. We speak the same language.”

Back in 1968 Giancarlo Vimercati founded Pilot Italia, a label converter which slowly but surely made its mark on the Italian label business. His recent death deprives Europe’s label sector of a man who was not only a talented and respected businessman but who also had a genuine respect for his staff and his business partners: Humanity, morality, and integrity were the cornerstones of “Signor Vimercati,” as his colleagues called him. The recent opening of a new plant is one of the achievements carried out by Giancarlo’s son Andrea, a past president of FINAT, who recently took over from his father as CEO.

Many US firms, including such giants as Sun Chemical and Mark Andy, continue to invest in Europe. Others hesitate, and with good reason. Look at the exchange rate, for a start. Over the past 12 months, the US dollar has dropped nearly 6% against the euro (and just 2.7% against the pound). So in dollar terms, everything in Europe, even hotels and restaurants, look more expensive. 

Then there is the uncertainty: possible future changes in US tariff rates can affect profitability everywhere in Europe. And if you want to go ahead and invest, which European countries offer the best conditions? For GDP growth, avoid Germany, Austria, and Norway, and plump for Poland: good growth (+3.4%) but with a budget deficit of 6.1% (even higher than the US!). Germany offers a big domestic market but with feeble growth. France has a shocking budget deficit and has just thrown out its third prime minister this year. 

Perhaps investors should look at Spain, with fair economic indicators and – what’s more – a Labelexpo show that recently took place.

By the time you read these lines, Labelexpo Europe will have come and gone. The 200-plus exhibitors from China will have shown their technology and made their contacts. US exhibitors number only 50, though some more are certainly showing under the names of their European associates. Russian exhibitors number precisely zero (no surprise), but less expected, according to the latest exhibitor list, is Israel with just one exhibitor – and it’s not Landa. A security precaution? The next issue of L&NW will reveal more about the show, and it will be interesting to see how the “new” Labelexpo (new location, new management…) compares with the old.

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