by JJPBanknote Polymer CCL
Posted on Tuesday, December 20, 2016
Polymer banknote material manufacturer Innovia is to become part of the global CCL group in 2017 with the deal set to be sealed in Q1.
The current owners of Innovia are a group of private equity investors. The business has been under the spotlight recently following the introduction of polymer substrates in the new UK £5 note and predicted changeover to the £10 soon.
Polymer banknote usage is currently estimated to be 3% of the current market at present but pundits predict a disruptive effect on the traditional cotton/paper materials in future. Innovia has the majority share of this market now serviced by 5 production locations in the UK, Belgium, Australia and Mexico. 24 countries worldwide utilise the polymer material in the fabrication of their banknotes Currently Innovia is thought to turn over Canadian c$500 with a EBITDA of Canadian $155 million. Polymer banknotes account for 31% of this revenue with labels and speciality packaging accounting for roughly 55%. The remainder is food related filmic products.
CCL Label and Avery purchase BOPP Films directly from Innovia for conventional packaging and labelling applications and have developed a number of specialist packaging products for various global end use key customers.
Innovia Chief Executive Mark Robertshaw has gone on record as saying CCL would be “an excellent long-term owner” and that there was a good fit between the two firms. Originally the polymer substrate material was jointly developed by Securency & Innovia in a Reserve Bank of Australia project to replace paper with synthetic material that would withstand the wide climatic variances in the country that reduced the life of paper notes dramatically.
Longevity and counterfeit resistance are the two major benefits that the material offers banknote issuers worldwide.
Jeremy Plimmer has 35 years of experience in the security related print and packaging industry working originally as sales development director for manufacturers of passports, high security print and labels and more recently as a consultant. He is a graduate member of the Chartered Institute of Marketing, a Fellow of the Institute of Minerals, Materials and Mining, chairman of the West Midlands Packaging Society as well as vice chairman of the East Midlands Packaging Society.Read More
The Product & Image Security Foundation is a non-profit making trade association which was originally formed under the name of Label & Tag Security International (LTSI) in the early 1990's.
Today it operates with more than 100 members in 27 countries and is the premier international forum for manufacturers, suppliers and users of labels, tags, packaging, identification systems, materials and systems for any form of product security, brand image protection or product traceability applications and technology.