Raflatalk 2/00 - UPM Raflatac

2 /2000RAFLATALKUltra fast factoryanswers the challengeof a vast marketRAFLATAC TAKESNEW POSITIONIN USAAUTOMATIONensures quality andincreases reliabilityWhy the wirelessinformation society needsTHE SMART LABEL

THE RAFLATAC MAGAZINE 2 ⁄ 2000 • ENG 1057Published by Raflatac GroupP.O. Box 53, 33101 Tampere, FinlandTel. +358 204 16 143, Fax +358 204 16 8136E-mail: raflatac@raflatac.comwww.raflatac.comEDITOR-IN-CHIEF Elisa NilssonEDITORS Maija Veteläsuo, Annukka Nikku, Elina Hannikainen, Andrew AyresLAYOUT Anneli PaavilainenPRINTED BY Salpausselän Kirjapaino Oy, FinlandRAFLATALK345710151618222526283334363840Moving forwardBuilding on successAutomation ensures quality and increases reliabilityRaflatac takes new position in USAIt’s our business to help yours!Raflatac at Labelexpo USA 2000The rise to global successCountry of deep forests turns hi-techStandard Service streamlines the flow of raw materialThe RaflatimesE-business on solid groundWhy the wireless information society needs the smart labelRafsec to exhibit at shows in the USA and EuropeA printer for all seasonsWhen variable means value-addedNew releases from RaflatacRaflatalk index2 RAFLATALK

Moving forwardRaflatac is building on several fronts. In cooperation with our customers, weare developing our services and products on a truly global basis.Now that we are building a pressure sensitive laminate factory in theUSA – with the very latest production technology to serve the world’s largestmarket – we are sure that our American customers will be in good hands.Our experts utilize all the valuable experience and professional know-howthat they’ve gathered over the years, from different parts of the world. Thestrong personal input of Raflatac’s people, their expertise and the personalinput that combine to make the ‘Raflatouch’, assure a strong basis for ourservice. We are committed to our customers’ success, and Labelexpo USA2000, the largest and most comprehensive event in North America serving thenarrow web converting industry, provides an excellent opportunity for us tocommunicate our future operations and services in the USA.The human touch will always remain an indispensable asset. New methodsof communication make it easier to perform our day-to-day business. Theefficient global telecommunication connections at Raflatac’s disposal ensurethat the knowledge of our experts is available in every corner of the world.Raflatalk is all about making connections and sharing information. This issueis especially dedicated to our American customers and business partners.It’s our business to help yours.Elisa NilssonCommunications DirectorPhoto: Marika RosengårdRAFLATALK3

Photo: Jyrki LuukkonenJuhani Strömberg,CEO of Raflatac Group:Building on successThrough customer-oriented, strategicallyplanned operations, Raflatac has achievedmarket leadership in 25 years throughoutEurope and holds a particularly strongposition in the market for paper-basedpressure sensitive laminates.In recent years we have made extensiveinvestment in the manufacture of syntheticlaminates, increasing average volumes byover 30 percent in each of the last threeyears.Beyond Europe, Raflatac hasproduction operations in Australia andMalaysia, and this year we will beginproduction of pressure sensitive laminate atour factories in South Africa and China.Our projected turnover for the year2000 is in excess of $600 million – anincrease of 14 percent over the previousyear. Raflatac’s success is based on a highdegree of technical expertise in all areas ofoperation, a customer-orientatedorganization, and a comprehensiveunderstanding of specific end-use areas.Raflatac’s goal is to be a strong globalcompany, which requires that we integratestrongly with the American market. Thishas been our aim for many years and todaywe are taking our first steps along this road.Through its own sales company andservice terminal (in Fletcher, NC) Raflatacbegan sales in the USA fifteen years ago in1985. Even back then, we had our sightsset on starting production. With the aid ofa capable and efficient organization, wehave successfully and persistently built thefoundation for the substantial investmentthat is now being made.At Raflatac, we are aware that theAmerican market is very challenging andthat the competition is tough. However, weare convinced that our product expertise,combined with an efficient productionmechanism and organization, give Raflatacevery chance of success and that this successwill directly benefit our customers. We willdevelop our organization so that we canserve our customers more efficiently thanever before and assist them in thedevelopment of their own businesses.The articles in this publication set outto illuminate the framework of ourexpertise and operations.4 RAFLATALK

Photo: Veli-Matti ParkkinenWhen it comes toefficiency, Raflatac’s newUSA factory in Fletcher,North Carolina, whichwill start manufacturingnext year, exemplifiesthe best in its class.Jan-Erik Forsström, Vice President, Technical Development at Raflatac Group.Automation ensures qualityand increases reliabilityThe capacity potential of the coating lineplanned for Raflatac’s new manufacturingfacility is significantly higher than any ofthe coating lines in Raflatacs’s existingmanufacturing operations in Europe. Theentire factory will be highly automated,specifically targeting material handling.Reels of paper and laminate will betransported with forklifts only whenreceived and dispatched.“Because of its automation, the wholeproduction process can be strictlycontrolled. Using computer-controlledmaterial handling, transport damage isgreatly reduced. Significant improvementsin cost efficiency are made by minimizingRAFLATALK5

Photo: Veli-Matti ParkkinenMarathon Engineers/Architects/Planners, LLCRaflatac's newfactory will belocated in theBroadpointeIndustrial Parknear the AshevilleRegional Airport.191AshvilleRegionalAirport26Factorywaste,” says Vice President, TechnicalDevelopment at Raflatac Group, Jan-ErikForsström, who is in charge of the factoryinvestment project. “For customers, thefactory’s efficiency and leading-edge qualitycontrol standards mean consistent qualityand fast, reliable deliveries,” he emphasizes.Raflatac’s new factory will be located inthe Broadpointe Industrial Park near theAsheville Regional Airport. Asheville itself isaround ten miles from Fletcher.The size of the Fletcher facility equalsthose of Raflatac’s largest Europeanfactories. The facility consists of alaminating machine, automated storage,slitting services and offices.In-house technologyAccording to Forsström, the laminateproduction technology that will be integratedinto the Fletcher facility followsRaflatac’s proprietary design. Similar technologyis found in other Raflatac facilities,however automation has been taken onestep further in Fletcher. Dozens of Raflatac’sexperts, mainly from Finland and the UK,have participated in the factory project.Automation alsomeans that ergonomicshave improvedsignificantly,allowing personnel tofocus more energy onquality control. Themajority of Fletcher’sproduction personnelwill work in thefinishing process.Pre-slit coilsstraight fromstorage25The mass storage of slitFletcher, NC coils characterizes a newmodel of operations withthe most popular constructionsbeing storedready slit into the mostcommon widths andlengths. The availability of pre-slit coilsshortens the production cycle timesignificantly and minimizes the trim wastein trimless deliveries.The coils are stored in a computercontrolledautomatic warehouse. Computercontrol guarantees accurate inventoryinformation, and automatic materialhandling reduces waste and shortensprocessing time.Information systemmanages allAll of the factory’s operations will beintegrated into one information system.Created by Raflatac’s own developmentwork, the system has been designed tomanage every aspect of the operation andcontrols the management of quality andmaterial flow. It is also integrated directlyinto the sales information systems.As Forsström concludes: “An ITsystem that provides accurate real-timeinformation is an essential preconditionfor e-business.”6 RAFLATALK

Ultra fast factoryanswers the challengeof a vast marketPhoto: Audrey Goforth PhotographyRAFLATACTAKES NEWPOSITIONIN USAThe completion ofRaflatac’s manufacturingfacility in North Americaopens a new chapter forthe company’s growingpresence in the Americanmarketplace.Dan O’Connell, President of UPMRaflatac, Inc., explains, “The launch of alocal manufacturing operation expandsRaflatac’s service capabilities andsignificantly strengthens the company’sposition in the world’s largest market.Raflatac’s brand and image are strong in theUSA, where the company is known as asupplier of high-quality products. Thissignificant development provides asubstantial foundation for moving into newproduct areas.”RAFLATALK7

O’Connell believes that the strengthbehind the UPM-Kymmene Group isessential when it comes to developingoperations. Expertise in paper manufacturingand converting is readily availablefor use in product development. Groupintegration assures the availability ofhighest quality raw materials, guaranteeingthe consistent quality of Raflatac’sproducts.The Fletcher factory will prove to be aleader in its field. The factory’s high level ofautomation and its capacity potentialrepresents the finest in material manufacturingthe world has to offer. Accordingto O’Connell, local production capabilitiesnow make it possible for Raflatac to offerits American customers high-qualityvolume products, delivered faster than everbefore. Thanks to an efficient productionplant, information systems and logisticsolutions, it is now possible to develop newkinds of services.Securedtransitional phaseAccording to O’Connell, the launch of thenew factory and terminal next year, as wellas the transition, have been planned so thatdeliveries to customers will continue,without change.He explains, “Raflatac has already builtfactories on three continents, so we havesolid experience in the launch of newproduction plants. The factory’s operationswill be in full swing very quickly.”Personnel at the USA factory willreceive extensive training to familiarizethem with its operations – both in Americaand at Raflatac’s factories in Europe.Raflatac’s European experts are stronglyinvolved in the launch of operations andthe provision of backup during thetransitional phase.Intense cooperationwith customersAccording to O’Connell, cooperation withcustomers in product development can nowbe made more diverse and more intensivein order to pinpoint new end-use areas andcustomer-specific applications. Cooperationin product development with Raflatac’sother factories will also take on new forms.In the future, more direct input for newproducts and applications will be receivedfrom the USA.Raflatac’s IT systems deliver highlyadvanced services in e-business. In the firststage, USA customers will be able to accessinformation services that provide, forexample, technical information via theInternet. Later on, customers will also beoffered the option to order products online.Service innovationfrom the USAAccording to O’Connell, Raflatac’s internalservice culture has all the elements needed8 RAFLATALK

“We find our workvery rewarding– we take greatpleasure inproductivecooperation withour customers.”Photo: Audrey Goforth Photographyto deliver good customer service. Theorganization operates globally on the basisof openness and trust. People who work indifferent countries are in full cooperationwith each other, with each countrycontributing the best of its own operatingmethods.“The same is true of our customerservice. Openness and reliability guide ouroperations and everyone contributes theirpersonal input to the service,” O’Connellsays.“We find our work very rewarding– we take great pleasure in productivecooperation with our customers.”Many service innovations have beencreated in the USA, a country that in manyrespects has pioneered the customer serviceculture. As Raflatac’s USA operationsexpand, American Raflatac personnel willhave more and more opportunities tocontribute new ideas and develop newservices, which will be of benefit tocolleagues and customers worldwide.RAFLATALK9

It's ourbusiness tohelp yours!Customer service – the Raflatac way“With our new factory in the USA, we’ll be able to offer ourcustomers faster and more comprehensive service than ever before.In the future we’ll be able to offer tailored solutions and furtherdevelop the versatility of our services to suit our customers’ needs,”explains Raflatac’s Customer Service Manager, Melissa Morais.“Our customers appreciate personalattention, in addition to prompt andaccurate information. As well as knowingour customers’ business, it’s importantthat we know our customers as people,”Morais adds. “When our customerscontact us, they’re depending on us toknow who they are, who their companyPhoto: Audrey Goforth PhotographyIntroducingUPM Raflatac,Inc. personnelSusan CausbyCustomer ServiceRepresentativeFletcher,North CarolinaJouko ReslaTerritory SalesManagerTexasPhoto: MotoPhoto & Portrait Studio Photo: One Hour Moto PhotoPhoto: Audrey Goforth PhotographyDan O’ConnellPresidentFletcher,North CarolinaSandy HerrmannCustomer ServiceRepresentativeFletcher,North CarolinaCarlos GarciaTerritory SalesManagerCaliforniaPhoto: Audrey Goforth PhotographyPhoto: Rebecca Merlino PhotographyPhoto: Audrey Goforth PhotographyPhoto: Audrey Goforth PhotographySimo TyyneläCountry SalesManagerToronto, CanadaAlan PunchProduction ManagerFletcher,North Carolina10 RAFLATALK

Randy DoerrGeneral ManagerLoveland, OhioBillie Sue JohnsonCustomer ServiceRepresentativeFletcher,North CarolinaBrenda SimpsonTerritory SalesManagerOhioPhoto: Photo Station ImagingPhoto: Audrey Goforth PhotographyPhoto: Audrey Goforth Photography Photo: Photography By Younce, Inc.Philip CoatesTechnical ServicesManagerFletcher,North CarolinaRick CochranTerritory SalesManagerNorth CarolinaPhoto: Jouko JärvinenMalcolm CollinsMarketing ManagerFletcher,North CarolinaPhoto: Audrey Goforth PhotographyPhoto: Audrey Goforth PhotographyPhoto: Audrey Goforth PhotographyMelissa MoraisCustomer ServiceManagerFletcher,North CarolinaRusty HeglerTechnical ServiceTechnologistFletcher,North CarolinaPam BagleyTerritory SalesManagerIndianaPhoto: Audrey Goforth PhotographyPhoto: Audrey Goforth PhotographyPhoto: Stedman StudiosCheryl BallCustomer ServiceRepresentativeFletcher,North CarolinaBob AmbroseTerritory SalesManagerNew HampshireMike MartinTerritory SalesManagerPennsylvaniaPhoto: Audrey Goforth PhotographyPhoto: Domenick Crimi Photography Photo: Photos Plus of Goffstownis, and what their ordering history hasbeen. They like having their owncontact person who is familiar with theiraccount, and is ready to assist them inany way they can. We call this personalservice the Raflatouch.”Raflatouch onnew territoryMorais joined Raflatac in December of1998. There are four people on herteam, each responsible for their owndistribution center, in Fletcher, Ohio,California and Massachusetts.“For the last year and a half, we’vebeen working to create a proactivecustomer service department – adepartment that will actively seek outsales, find ways to prevent problems anddetermine how we can better serve ourcustomers,” she explains.To date, the most important step hasbeen the division of the customer servicegroup into territories. Each customerservice representative is responsible foran individual distribution center, andthe converters within the states it serves.“This way, our customer servicerepresentatives are able to focus on aspecific group of customers,” Moraissays. “As a result, customers are providedwith the personal service that they havecome to expect from Raflatac.”Ready for thenext stepMelissa Morais believes that the nextmajor challenge will be to make theupcoming transition to a fullyoperational factory as smooth aspossible.“Although we’ll be going throughsome big changes, our goal is to deliver alevel of service to our customers thatwill guarantee an even higher level ofquality, as well as customer confidenceand rapport!”Eddie MorrisonAssistant ProductionManagerFletcher,North CarolinaJimmy HazelWarehouse ManagerFletcher,North CarolinaRAFLATALK 11

New factoryincreases servicepotentialCooperationin productdevelopmentrises to newheightsPhoto: Audrey Goforth Photography“When the new factory isready, Raflatac will have evengreater opportunities forproduct development inconjunction with itscustomers, and otherpartners in the USA,” saysRaflatac’s Technical Servicesand Product Manager,Philip Coates.“Through direct cooperation with customers,it is possible to find new end-use areasand offer new applications to meet customers’requirements.”The factory’s extensive laboratory willprovide an exceptional resource for productdevelopment. According to Coates, the labwill also be of prime importance to qualitycontrol, and will greatly improve technicalservice capability.“The new factory will have a significantimpact on Raflatac’s ability to serve itscustomer base. It will now be possible tocombine the benefits of a strong localpresence with extensive background supportfrom the company’s European operations.The results will be clearly visible, at everylevel,” Coates states.Quality increasescost efficiencyRaflatac’s product lines are well knownacross the globe. Quality control isconstantly integrated into all productionand service processes. According to Coates,consistent product quality is one of thedriving forces behind Raflatac’s ability tohelp its customers ensure the same level ofquality in their own converting operations.The fundamental quality level of a substrate’sconstruction is critical to the easewith which a material is printed, processed,and ultimately applied to the final product.Consistent high quality means that everylevel in the supply chain managementequation saves cost by minimizing waste,12 RAFLATALK

and optimizing material printing, processingand application durability.“Raflatac strives to improve itscustomers’ competitiveness by deliveringproducts with functional reliability thatcan be depended upon, order after order.The label converting business is becomingincreasingly competitive, and ourcustomers are under more and more costcuttingpressures. Managing cost is ofparamount importance,” Coates explains.The new factory in Fletcher will behighly automated, contributing to qualityassurance. The factory’s quality controlsystems will utilize the very latest technology,which has already been tested inRaflatac’s European facilities.Coates states that the construction ofa system compatible with ISO 9002 willbegin immediately. “Although the Fletcherfactory is new, we’re not starting fromscratch. ISO quality systems are already inplace in Raflatac’s European factories andthe experience gleaned there will beapplied to our manufacturing facility inthe USA.”Sights set on serving the customer“The most important thing is to handle every call individually andensure that the customer’s needs are met as soon as possible,” saysCheryl Ball, who works in sales services, about the requirements ofher business.She enjoys knowing the customers and theirbackgrounds – which she does so well thatshe can usually recognize a customer’s voiceover the phone before they introducethemselves.Cheryl Ball receives and handles orders.The work requires continuous contact inevery direction. “We work with everybodyfully aware of all the information availableto us, such as current stock levels and thedelivery times to particular destinations.Knowledge about how the machines runand events within the company in generalis essential.”Ball has been working in customerservice for more than seven years. DuringPhoto: Audrey Goforth PhotographyIt's ourbusiness tohelp yours!– the people on the floor, technical staffand shipping – trying to get everythingorganized to ensure that the customers gettheir orders as quickly as possible.”“In this job you have to know what’sgoing on inside the factory,” Ball says.“Good customer service requires that we arethat time, Raflatac’s customer service hasexpanded significantly. When she beganwith the company, she didn’t have anycolleagues. Today however, as she notes,“Customer service is team work. We allhave the same goal, and that’s to make surecustomers get the help they need.”RAFLATALK 13

Working withthe customer“Raflatac’s high product quality,good customer service andtechnical support are part of a totalpackage, and I’m very fortunate tohave such an excellent supportteam in Fletcher to back me up,”says Rick Cochran, Territory SalesManager, Southeast.Photo: Audrey Goforth Photography“One of the key aspects of my work in salesis building solid relationships with ourcustomers. It’s important that customers feelcomfortable with their supplier, that theycan deal with someone who knows theirbusiness, someone who will go out of theirway to assist them in any way they can –even sending out technical support to helpset up their application,” Cochran says.“This type of individual attentioncreates an indelible impression thatcontributes greatly toward establishing longtermpartnerships. Customer loyalty is thebackbone of our success.”Cochran has worked in field sales forRaflatac for the last ten years and he reallyunderstands the customer’s point of viewbecause, in his previous employment, hewas a customer of Raflatac’s himself.“I had plenty of opportunity to testdrive the company and its products beforedeciding to come on board. I enjoy mywork – and based on my own experience,I’m confident I have the luxury of sellingPhoto: Audrey Goforth PhotographyThe tools to dothe jobRaflatac’s Assistant ProductionManager, Eddie Morrison, makes surethat customers receive theirproducts just the way they wantthem.He ensures that the deliveries are ready atthe right time and that the products aredispatched to the customer.According to Morrison, efficientlyorganizing daily production requiresfamiliarity with both new orders and theproduction reports of the previous day. “Ifone of the machines is overloaded, wecompensate by distributing the workaround the plant so that delivery times aremet without compromising quality,” saysMorrison.14 RAFLATALK

It's ourbusiness tohelp yours!Raflatac at Labelexpo USA 2000Setting New Standards– with the Raflatouchthe highest quality products on themarket,” he says.Looking ahead, Cochran sees manygood things coming from thecompletion of Raflatac’s new factory inFletcher next year.“The new factory reinforcesRaflatac’s commitment to the Americanmarket, and Raflatac’s technical support– which is already very good – will beeven better thanks to the newlaboratory facilities,” he says.Personnel at the plant have alreadyprepared themselves for the launch ofthe new factory, and the new systemshave been closely studied. “I think thequality of our products will be evenbetter than before,” Morrison states.“The automatic machinery in the newplant minimizes the chance of humanerror – it can only improveperformance.”Confident about the future,Morrison believes that the improvedworking methods can only be a positivedevelopment: “Our productionpersonnel are eagerly looking forward tousing their skills on the new systems.”Raflatac’s new factory – which will be completednext year in North Carolina– and the expanded services that come with it, willbe on show at Labelexpo USA, September 12–14 inthe Rosemont Convention Center in Chicago.According to CommunicationsDirector Elisa Nilsson, Raflatac’sslogan “Setting New Standards”describes both Raflatac’s way ofoperation and its expertise. With thevery latest production technology, thenew factory offers even better facilitiesto serve customers well and developnew products and services.Largest event of its kindOver 400 exhibitors and an anticipatedattendance of 18 000, combine tomake the exhibits and related conferencesat Labelexpo the largest and mostcomprehensive event in North Americaserving the narrow web convertingindustry. The three-day event is theseventh of a biennial series.Raflatac USAon the WebAt the booth (No. 1347, Hall A),visitors can get a feel for Raflatac’s webservices, which are expanding forNorth American users. Specific informationconcerning Raflatac’s USAoperations and local sales personnelcontact information can be found atthe ‘Raflatac in the USA’ link atwww.raflatac.com.Continued on page 39RAFLATALK 15

THE RISE TOGLOBALSUCCESSRaflatac is one of the biggestsuppliers of pressure sensitivelaminate in the world and themarket leader in Europe.Part of the UPM-Kymmene Group,Raflatac began the product developmentand manufacture of pressure sensitivelaminate in Finland in the early 1970sand has since built a global network offactories, terminals and sales offices thatserve every market area. Today thecompany employs approximately 1 500people and its turnover is $540 million.Raflatac invests strongly in allimportant market areas, accentuating astrong local presence. Personal serviceand close, long-term cooperation withthe customer are cornerstones of thecompany’s operation. Due to its robust,constantly developing organization,Raflatac is able to offer globallyoperating manufacturers standardizedpressure sensitive laminates that fill thesame quality criteria everywhere in theworld.WorldwidepresenceFrom the first factory in Tampere,Finland in 1975, Raflatac set on coursefor explosive global growth in the mid1980s, beginning with the acquisition ofKymtac Oy in Jyväskylä, Finland in1984. The very same year, Raflatacpurchased what is now known asRaflatac Ltd UK. Five years on, Raflatacbuilt a factory in Nancy, France (RaflatacS.A.) and began vigorous developmentof its sales and service network.In 1996, Raflatac began joint ventureproduction in Malaysia, gaining fullownership of the factory just two yearslater. During this period, the company16 RAFLATALK

also completed its Singapore terminal andbegan operations in a joint venture factoryin Australia. In 1999, Raflatac acquired thefactories in Spain and Germany and, thisyear, acquired 100 percent ownership of itsfactory in Australia. The factories in Chinaand South Africa were also acquired thisyear.A worldwide network of sales officesand terminals strengthens the company’sglobal coverage. Two terminals are in theUSA, in Loveland, OH, and in Fletcher,NC, where Raflatac’s eleventh factory iscurrently under construction.The innovatorFrom the very beginning, innovation hasbeen one of the most important factorsbehind Raflatac’s success. The company’sown expert organization cooperates closelywith customers in the development of newproducts and applications for various enduses.Raflatac’s long history of proprietaryhigh-tech production methods and intenseinvestment in R&D has delivered qualityproducts that continually meet the latestneeds.Raflatac is the biggest supplier of paperbasedpressure sensitive materials in Europe,and extensive investment has also beenmade in synthetic products. An excellentbackground for product development isprovided by the papermaking and convertingexpertise of UPM-Kymmene.Among Raflatac’s most recent innovations,the new “smart label” uses radiofrequency identification (RFID) technologyto create up-to-the-minute applicationsfor pressure sensitive laminates. Smartlabels are making their way into thelogistics chain. Their many uses includesecurity tagging and providing real proof ofa product’s origin.EnvironmentalexpertiseEnvironmental considerations have beentaken into account in Raflatac’s productdevelopment and production from theoutset. When operations began back in theearly 1970s, Raflatac abandoned oldproduction technologies to make way forthe development of new solutions that aresafe for the environment and for people.The necessary infrastructure, productiontechnology, adhesives and silicones, werecreated using the very latest technology.This turning point marked the foundationof a competitive factor that is both crucialand far-reaching: Raflatac’s own productiontechnology.Of the environmentally friendlyproducts developed by Raflatac, recyclableadhesives that make it possible to recyclelabel papers are a fine example. In itssynthetic products, Raflatac uses PE andPP materials that, together with the packaging,can be recycled safely.Working forthe customerCustomer-orientation, openness andreadiness for change are the core values atRaflatac. The continuous development ofoperations goes a long way to assureefficiency.Raflatac’s open organization supportsinnovation. People working in differentdepartments are in close contact with eachother. Product development, production,marketing and sales, work together incontinuous cooperation and it’s of thegreatest importance that everyone hearswhat the customer has to say.Raflatac in a nutshell• Turnover in 1999: $540 million• 1,500 employeesRaflatac supplies pressure sensitive laminatein reels and sheets. End-use areas for Raflatac’slaminate include:• Food and drinks• Retail information• Industrial information• Transport and shipping• Office information• Cosmetics• Pharma• TechnochemicalRAFLATALK 17

18 RAFLATALKTHE RISE TOGLOBALSUCCESS

Country ofdeep foreststurns hi-techWith its well-established expertise in forestry,Finland is the world’s spearhead in the forest industry.“Among other things, Finland is the largestmanufacturer of paper machines, animportant developer of productiontechnology and a product innovator,” saysJohn Lassenius, Vice President, SBULabelstock Overseas at Raflatac Group.Forests have played a central role in thedevelopment of Finland’s high standard ofliving and the rise of the northern countryinto a strong European industrializednation. Deep, dark-green forests andshining blue lakes still dominate theFinnish landscape.“In relation to its geographic size,Finland has the most forests compared toother industrialized countries and theirwell-being is carefully preserved,” Lasseniussays.“Finland’s high educational standardspaved the way for the country’s rapidtechnological development. As a result, theelectronics industry – lead by Nokia – hasgrown into the largest field of industry inthe 1990s. These days as many as half of allschool graduates continue into highereducation at university, securing furtherFinnish engineering expertise for thefuture.”“The paper industry in Finland hastraditionally maintained a highly respectedimage, which attracts top-level expertsinto product development,” Lasseniuspoints out.Hi-tech products forpaper convertingIn Finland, the work developing forestutilization and wood processing is done ona wide front within what has becomeknown as the forest cluster(www.forestcluster.com). Established inthe late 1990s and now covering the wholeof Europe, the cluster has gatheredtogether the primary production, and theindustry and research institutes, that relateeither directly or indirectly to forestry,right the way through to the end-user.Photo: Matti SulantoRAFLATALK 19

THE RISE TOGLOBALSUCCESSPhoto: Matti SulantoThe aim is to secure the development andcompetitiveness of the whole woodprocessing chain. It’s worth noting thatindustry related to the forest cluster is thelargest industrial sector in the EuropeanUnion.Lassenius points out that companiesrepresenting production and informationtechnology are also included in the cluster.The links between traditional forestindustry and new industry work well, andboth have a strong role in the developmentof the information society.According to Lassenius, Raflatac’s highqualitypressure sensitive laminate is agood example of a top product in thepaper converting chain: its productionrequires in-depth paper expertise andleading edge manufacturing technology.Raflatac participates closely in thedevelopment of solutions for the packagingindustry and informational flow. The latestsmart labels represent hi-tech productsJohn Lassenius believes that thesuccess of Raflatac's Americanoperations is based on Raflatac'speople united by the same workingspirit and enthusiasm all over theworld.made necessary by today’s informationsociety.Service networkto cover North America“The construction work currentlyunderway on Raflatac’s first factory in theUSA is an important step. Our intention isto expand Raflatac’s network of terminalsand slitting facilities so that we can offerthe same level of service throughout NorthAmerica. The existing service outletsprovide a very good starting point for thisgrowth. In addition, we’ll be able to offerour customers maximum benefit from thebest technology combined with ourservice,” Lassenius explains.Raflatac aims to raise its market share inNorth America in order to become one ofthe major players also in the world’s largestmarket area.“Raflatac has supplied pressure sensitivelaminate in the USA and the Quebec andToronto areas of Canada since the mid1980s. Our main competitive edge haswithout doubt been the high quality of ourproducts. Now we can offer even more,”says Lassenius.According to Lassenius, the factory’slocation in North Carolina is excellentForestryForest Industry ClusterPackagingWood construction FORESTINDUSTRY• Paper, board, pulpChemical industry • WoodworkingindustryMachinery andequipmentAutomation andinformationtechnologyLogisticsPrintingServices- consulting- risk managementResearch andeducationEnergyProduction Value of Forest-based and Related Industriesin the EU 1998bill. EURMechanical woodworking 60Pulp, paper and board manufacturing 55Paper and board converting 56Printing 61Publishing 86Total FB-ind. 318Furniture 69Cluster partners (machines, equipment, chemical) 65452Source: Forest Cluster / Finnish Forest Industries Federation (source: Eurostat)20 RAFLATALK

oth for transport-related issues and fromthe point of view of developing operations.The area is a charming place to live: a clearadvantage when recruiting a work force.Raflatac’sstrong cultureFor John Lassenius, Raflatac’s arrival inNorth America as a “local player” ispersonally rewarding because of hisinvolvement in the development ofRaflatac’s activities in the USA and Canadafrom the beginning. Currently working asManaging Director of Raflatac’s factory inFrance, Lassenius also acts as Chairman ofthe Board of UPM Raflatac Inc.“All of Raflatac’s people the world overare united by the same working spirit andenthusiasm,” Lassenius says.“Approachability is in the core ofRaflatac’s company culture – it’s a resourcethat makes for superior service. Combinedwith the American service culture it’s aneven stronger asset.”“Because our technology, our products,finance and human relations operateseamlessly with one another, we enjoyworking together as well as with ourcustomers. We work hard, but we alsoknow how to relax and enjoy thingstogether, like golf or skiing. Raflatac’speople love this company – maybe it’sbecause of this that we’ve been sosuccessful. We want to offer our customersthe kind of service that helps them developand succeed with their own businesses,too,” Lassenius says.Forest Industry Cluster is one of the largest industry sectors in the EUFood products and beveragesForest Industry ClusterMotor vehicles, trailers and semi-trailersBasic metalsPharmaceuticals, medicinal chemicalsand botanical productsBasic chemicalswood products,pulp, paper,paper productsprinting,machinery,paperchemicals,furnitureequipment0 20 40 60 80 100 120EUR billionRAFLATALK 21

THE RISE TOGLOBALSUCCESSRaflatac Factories, Terminals and Sales OfficesFactoryTerminalSales OfficeUSA & CanadaRaflatac Canada, Toronto, CanadaUPM Raflatac Inc., Loveland, Ohio, USAUPM Raflatac Inc., Fletcher,North Carolina, USAEurope & the Middle EastRaflatac Oy, Tampere, FinlandRaflatac Oy, Jyväskylä, FinlandRaflatac Ltd., Scarborough, UKRaflatac S.A., Nancy, FranceRaflatac Produktions GmbH, Hirschhorn, GermanyRaflatac Iberica S.A., Barcelona, SpainRaflatac Ab, Helsingborg, SwedenRaflatac A/S, Ishøj, DenmarkRaflatac Ltd., Stevenage, UKRaflatac Polska Sp. z o.o, Warsaw, PolandRaflatac GmbH, Dusseldorf, GermanyRaflatac Handels GmbH, Schwechat, AustriaRaflatac Iberica S.A., Barcelona, SpainUPM Pack A/S, Tranby, NorwayRaflatac Ltd., Dublin, IrelandRaflatac Benelux B.V., De Meern, The NetherlandsRaflatac S.A., Paris, FranceRaflatac CZ s.r.o., Prague, Czech RepublicUPM Pack Kft., Budapest, HungaryUPM Pack AG Raflatac, Zurich, SwitzerlandRaflatac Italia S.R.L., Milan, ItalyUnipapel Lda., Lisbon, PortugalRaflatac (Middle East), Dubai, U.A.EUPM-Kymmene Raflatac, Moscow, RussiaAsia & OceaniaRaflatac (Shanghai) Co. Ltd., Shanghai, P.R. ChinaRaflatac Oceania Pty. Ltd., Melbourne, AustraliaRaflatac (M) SDN. BHD., Johor, West MalaysiaRaflatac (S) Pte Ltd., Singapore, SingaporeRaflatac Oceania Pty. Ltd., Sydney, AustraliaRaflatac (Hong Kong), Hong Kong, P.R. China“Raflatac’s mission hasbeen to develop universalproducts that address as manyend-use sectors as possible.Our customer commitment isunmatched; consistentlydelivering pressure-sensitiveproducts on schedule in orderto enable our label convertingcustomers to meet the just-intimedemands of theircustomers.”“Label printers don’t need to assume thecost associated with keeping rolls ofsubstrate on their inventory shelves givenRaflatac’s real-time ability to meet everyconverter’s material delivery requirements.This enables printers and converters tooptimize production, and to save inlogistics and storage costs,” notes VicePresident, Marketing at Raflatac GroupMarcus Vaenerberg.Last fall, Raflatac launched its StandardService in Europe. Covering up to 90% ofall end-uses, Standard Service productshave guaranteed on-time deliverythroughout Europe. In addition toStandard products, which are delivered tothe customer in individual reel length, theservice includes a number of trimless Megaproducts. The latest additions to Raflatac’sStandard Service are the splice-freeMegaPro products.22 RAFLATALK

The European experience:Standard Service streamlinesTHE FLOW OF RAW MATERIAL“Using our splice-free MegaProproducts enables a label printer tosignificantly increase production efficiencywhile reducing waste. More labels areprinted in less time. Depending on aconverter’s equipment and productionmethods, pro-ductivity increases withMegaPro can be between 3 and 10%,”Vaenerberg says.He adds, “From the customers’ point ofview it’s important that they can rely on thequality of our products. A high-qualitylabel material reduces web breaks, whichcontributes to improved productionefficiency. Our experience in the first yeardemonstrates that Standard Service hasbeen very positively received by ourcustomers. The increase in cost-efficiencyimproves competitiveness throughout thewhole label manufacturing chain.”Photo: Veli-Matti ParkkinenEfficient logisticsThe implementation of Standard Service ispossible because, in addition to highqualityproducts, Raflatac’s investment inthe development of logistics has beensubstantial. The company’s network offactories and terminals enables fast andreliable deliveries of trimless products overa vast market area. According toVaenerberg, the experience gained fromStandard Service will also be utilized in thefuture in the USA.Marcus Vaenerberg is convincedthat the experience gained fromStandard Service will also beutilized in the future in the USA.RAFLATALK 23

The European experience:Standard Service streamlinesTHE FLOW OF RAW MATERIALPhotos: Jouko JärvinenOwn technology solutionsincrease efficiencyRaflatac is the market leader in Europe andclose cooperation with its customers is acornerstone of the company’s success.“We have a finely-tuned organizationthat works in close cooperation with bothour customers and the packaging industryin order to develop new products andapplications for different end-uses,”Vaenerberg says.“We have developed our own productiontechnology from the very beginning,and we have advanced expertise in thelaminate manufacturing process. The paperexpertise of UPM-Kymmene corporation– of which Raflatac is a part – adds to ourstrength and the advantages of this integrationdirectly benefits our customers.”Pioneer in Web servicesAccording to Vaenerberg, significantinvestment in the use of high technologyhas greatly accelerated Raflatac’s development.IT solutions have increased internalefficiency and built a foundation forcustomer-oriented Web services in whichRaflatac has a pioneering role in Europe.Launched in 1997, the Business Line givescustomers access to technical information,their own price lists and order history.More importantly, products can be ordereddirectly online.Vaenerberg confirms that the BusinessLine’s services will be available in the USAin the not too distant future.The Raflatouch– the desire to serve“New electronic information systemssupport interaction between people byeasing routines. More time is madeavailable for the development of businessrelations,” says Vaenerberg, describing thepossibilities promoted by new technology.“Our organization operates openly andflexibly. We accent personal input andstress the role of experts as builders ofservice.”At Raflatac the spirit of service, opennessand reliability is described by a singleterm – the “Raflatouch”.According to Vaenerberg, the Raflatouchis created from people’s expertise andenthusiasm in order to help customers findthe best possible solution to meet theirconverting needs. The Raflatouch uniteseveryone at Raflatac, regardless of countryor continent. However, local strengths arevery important and Raflatac is dedicated todeveloping the service strategies that areapplicable to each specific region.“Europeans can learn a lot from theAmerican service culture. There’s no doubtthat the Raflatouch, too, will gain manynew features,” Vaenerberg says.24 RAFLATALK

THE RAFLATIMESRaflatacadvances inAustraliaRaflatac acquires fullownership of joint ventureoperations in Australia.On July 4, 2000 Raflatacsigned a letter of intent withAustralian Consolidated PaperIndustries Group (CPI) toacquire 100 % ownership ofRaflatac Oceania Pty. Ltd. inAustralia.The acquisition includes theoperations of a factory inMelbourne and a slittingterminal in Sydney. By takingover the operations in Australia,Raflatac will be able to integrateits Australian operationsinto the company’s Asia Pacificinfrastructure.The original 50-50 jointventure agreement betweenRaflatac and CPI was signed in1998. Employing around 60people, the current turnover ofRaflatac Oceania Pty. Ltd isAUD 36 million.CompleteGlossrangeRaflatac’s new Glossrange is based on fivehigh-quality facematerials.Raflatac has introduced acomplete Gloss range consistingof five high-quality woodfreepapers, coated on one side.The range includes onmachine,off-machine and castcoatedgrades, offering customersalternative materials atvarious levels of price, qualityand performance.The multipurpose Raflasilkensures trouble-free performancein automated applicationsand is a reliable choice for largelabels. As an example, Raflacoatis suitable for applicationsinvolving uneven substrates,and Raflalite is ideal for smallpackages or cylindrical shapes.Raflagloss provides superbgloss, whiteness and smooth-ness, while Castgloss is anoptimal choice for top-qualitymulticolor product labels.Printing tests have shownthat converters can achievesignificant improvements indot performance, as well as theoverall finish and look of thelabel by choosing the optimalRaflatac gloss grade for specificapplications.Pharma mixrenewedEye-catching labels andaccurate information –from beginning to end.Raflatac’s high-performancePharma mix has been furtherstrengthened with specialgrades such as transferablePharmamatt Multitac, and theheat-resistant overlaminatingPP Gloss Clear 30 andPolyester Clear 50. For digitalprinting, Raflatac now offersproducts for both Indigo andXeikon digital printing systems.In addition, the company’sselection for informationlabeling has been complementedby the smudgeproofThermal Top E/HS, ThermalTop IR, Synthermal Plus andSyntransfer.Still at the core of thePharma mix product linehowever, are the well-knownconstructions of Raflacoat,Raflagloss and Castgloss formulticolor labels on OTCconsumer products, as well asPharmagloss and Pharmamattfor applications that demandhigh print resolution.Transfer Matt, TransferPremium Plus, Polyprint 100and Polylaser Matt White 50have already established theirposition in thermal transferapplications, as has ThermaliteTop in direct thermal applications.The high-brightnessJetlaser and Jetlite form thebasis of successful A4 laserprinting in laboratory use.RAFLATALK 25

e-B U S I N E S SComprehensiveIT systemaccelerates serviceRaflatac is implementing thesame information system inthe United States that hasproven highly effective inEurope. The system has beencustomized for the uniquerequirements of the Americanmarketplace.Photo: Veli-Matti ParkkinenFollowing the Grand Opening of Raflatac’sFletcher, North Carolina-based manufacturingfacility, the company’s USAterminals will be integrated into the overallIT system.Raflatac’s Logistics and Group ITDirector, Heikki Käenniemi, states, “Thesystem covers the operations of thefactory’s entire production chain, logisticsand sales. It is a tool that creates a solidbackground for excellent service and thedevelopment of e-business.”“From the very beginning, thesystem’s design focused on managingthe entire Raflatac operation. Theinformation system of a highlyautomated factory works seamlesslyHeikki Käenniemipoints out that IT,logistics and e-businessare the tools of costefficientservice.with the sales system. An efficientinformation system ensures that incomingorders are forwarded to productionwithout delay so that the manufacturingprocess can begin,” Käenniemi explains.“When our operations in the new USAfactory get underway, orders will bereceived via fax or by phone. Customerswill also be offered the possibility to orderonline later on.” According to Käenniemi,the IT system will make it possible forcustomers who purchase material via theInternet to quickly receive accurateinformation about the orders they haveplaced.“With an efficient IT system, thedevelopment of e-business becomes areality,” Käenniemi points out.Raflatac uses the term “e-fulfillment” todescribe the way the customer receives allpossible information about the orderingprocess. The information is updated realtime,making the process highly effectivefor the customer.26 RAFLATALK

O N S O L I D G R O U N DA secure andreliable systemDelivery immediatelyunderwayRaflatac’s quick response will occurfrom manufacturing all the way throughto delivery. Transportation of finishedproducts will happen immediately. “Nextday service will become a cornerstone forRaflatac,” Heikki Käenniemi promises.“Because the factory is highly automatedand the standard qualities come straightfrom storage we can now deliver thefastest possible service.”“The logistics system has beendesigned in such a way that customerswill always get what they have ordered.Reliability is the key factor. IT, logisticsand e-business are the tools of costefficientservice.”Global IT Infrastructure Manager,Philippe Brikke, has some timehonored,practical advice forensuring the reliable operation ofan IT system: keep things simple.Overcomplicated technology cancreate as many problems as itsolves.“Customers can count on the fact thatRaflatac’s systems are running smoothly inthe background,” Brikke says. “We only usethe most respected and reliable equipmentsuppliers – and they provide round-theclockmaintenance for our strategicequipment, every day of the year.”Even though the quality of data transferlines has undergone dramatic improvement,Raflatac uses automated ISDNsupport on vital lines. Expert support is onstandby to make sure that, come what may,Raflatac is receiving loud and clear, and as aresult customers can always depend onRaflatac’s readiness to respond.The most important securityfactor is humanIn Raflatac’s e-business services, multileveldata security begins with the use ofpasswords, and the best possible antivirusprograms stop viruses in their tracks.Various systems make backup copies ofRaflatac’s servers and all user files. However,the most important security factor ishuman.“Building relationships of trustwithin IT circles and with all our usersis the most productive way ofguaranteeing security in the long run,”Brikke says.“We are continuously developingsolutions that allow users to takemaximum advantage of Raflatac’sInternet services, constructively andsecurely.”Photo: Michel LeclercqRAFLATALK 27

“RFID technology makes it possible towirelessly transfer information abouta product to the data stream, andpressure sensitive labels provide themost natural way to attach RFtransponders to products orpackages,” explains Timo Lindström,Department Manager of Rafsec Oy,about the role of the smart label.According to Lindström, the explosion ofwireless communication, and the increasingneed for greater efficiency in goods traffic,will bring rapid change to companies’information systems. Consumer buyingpatterns will also shift in new directions,e-purchases being a case in point. Withwireless solutions being used to monitor theflow of goods, logistics systems will becomehighly automated, and more efficientsolutions will be employed to verify theorigin of products and protect their security.Photo: Marika RosengårdThe smart label inlet, based on RFID(Radio Frequency Identification)technology and developed by Rafsec,makes it possible to concentrate all theinformation necessary for theidentification and monitoring ofproducts. Smart labels are employed in avariety of tasks in the manufacturingchain and in logistics systems; in industry,retail and transport. Their areas of useinclude mail and courier services, productsecurity, rental services, industrial andretail logistics and providing proof of aproduct’s authenticity.Geographical hot spotdelivers the expertise“The smart label is a momentousopportunity for the pressure sensitiveindustry – it totally changes the nature ofa label,” Lindström says.Continued on page 3228 RAFLATALK

Photos: Jouko JärvinenWhy the wirelessinformation society needsthe smart labelRAFLATALK 29

RFID and its advantagesThe Radio Frequency Identification system consistsof an RF transponder, which is packaged as somesort of tag (e.g. Rafsec’s smart label inlet), and areading device.The reading device emits an electromagnetic field thatactivates the tag as it passes within range. The tagresponds by transmitting the information programmedinto its microchip and the reader decodes this informationand sends it to a computer for processing. During thisprocedure, the information carried by the tag can bemodified or rewritten as required.The advantage of RFID over systems such as barcoding is that it doesn’t require a line of sight and it worksfrom any orientation. It doesn’t matter if the tag getscovered in oil or snow or if it is attached to one of manyitems on a pallet – especially when, in the case of Rafsec’ssmart label, it is possible to identify as many as 50 labelssimultaneously.The read/write ability of RF tags means that a productHostcomputerRFIDreaderenergydataRFID transponder(smart label)can communicate interactively as it passes by a reader,telling its life story to date and receiving fresh informationfor later use. In this way, RFID provides a dependablemethod of tracking and tracing products, while also helpingto prevent theft, fraud and product counterfeiting. Thesupply chain as a whole benefits from streamlined logisticsthat improve the cooperation between manufacturers,brokers and distributors, increasing their competitiveadvantage.More immediately, common standards that areemerging to ensure the compatibility of RFID systems– like the new ISO 15693-2 Standard – mean that the sky’sthe limit for RFID. Rafsec’s smart label is already onboardand ready for take-off.Photo: Marika RosengårdAccording to Timo Lindström, Rafsechas combined expertise in wirelesstechnology with Raflatac's expertisewith pressure sensitive laminate. Theresult is a product with uniquefeatures.30 RAFLATALK

RFID Frequencies13.56 MHz ensures global functionalityThe four main frequencies currently in use in RFID arethe low frequency bands 125–134 kHz, 13.56 MHz, theUHF bands 869–928 MHz and microwave bands ofaround 2.45 GHz. These frequencies differ from eachother in many respects, not only in their physicalcharacteristics but also in the laws and regulations thatgovern their use.13.56 MHz is an ISM band frequency that can be usedall over the world. It shows “fitness for purpose” in awide range of applications in item management. The mostprogress in standardization has been made with thisfrequency. Lower frequencies have their limitationsbecause of a relatively slow rate of data exchange, whilehigher frequency bands suffer from interference fromother RF data communication devices, absorption bywater and uncoordinated frequency regulations.According to Product Manager Tuomo Wall, Rafsecdecided to use 13.56 MHz because it is a globallyallocated frequency. It is well suited to a variety ofpurposes and carries certain technical advantages withregard to the manufacture of smart labels.Wall emphasizes that when taking all factors intoaccount, comparing frequencies against each other inrelation to their various applications is a bit of a minefield:many factors need to be considered.THE PROS AND CONS OF 13.56 MHZTechnical advantages• A (passive) tag’s microchip is easily powered,using a magnetic field• The microchips used are relatively inexpensive• Not effected by water• Sufficient reading distance for most purposes• The coil antenna is easy to manufacture• Relatively good rate of data transfer• Facilitates the manufacture of thin and flexiblelow-cost transponders• Brings to life the only reasonably priceddisposable tag available todayTechnical disadvantages- Narrow frequency band- Passive long-distance operation is not possible- No directivity in the interrogation fieldISO 15693-2 Standardalready in placeThe first global standard for 13.56 MHz RFIDtechnology has been completed and will be activelyin use after the International StandardsOrganization (ISO) has made it public.The Standard has already received the approval of all ISOorganizations. The organizations responsible forstandardization on a global level include the InternationalTelecommunications Union ITU, the InternationalElectrotechnical Commission IEC and the ISO.Photo: Veli-Matti ParkkinenBENEFITS OF STANDARDIZATIONAccording to Tuomo Wall,a global standard ensures thecompatibility of different systems,which ultimately benefits RFIDsystems users: ISO 15693-2compatible smart labels can be readwith a reader that utilizes the samestandard technology worldwide. Inpractice this is evident, for example,in the increased efficiency of transportation. Apart frombringing about a reduction in costs, standardization alsoaccelerates product development and the implementationof new systems.• Increases customers’ confidence in new technologies• Promotes worldwide acceptance and the advancementof technology• Broadens markets for manufacturers, encourages globalcompetition and reduces the cost to end-users• Facilitates the development of applications byencouraging interoperability and reducing customization• Provides a platform for the development ofcomplementary products such as software and hardwareaccessoriesRAFLATALK 31

Continued from page 29“Until recently, labels containedprinted, static information. The smart label,however, has a memory that adds adynamic element to the information itcarries, information that can be modifiedthroughout its lifecycle,” continuesLindström, pointing out that the smartlabel is more than just a label: it is acomponent of a much wider system.The smart label itself is a thin, consumablelabel with a microchip and an antennathat combine to form a transponder. Datacan be read or written using a reader device,without a direct line of sight. In Rafsec’ssmart label inlet an RFID transponder islaminated between layers of paper or film.The inlet creates a smart label when thelabel converter inserts it underneath aproduct label.“Finland has a reputation as thelaboratory of wireless technology, and iswell known for its expertise and innovationin the use of new technologies. This hasprovided a supportive environment for ourproduct development. Rafsec cooperatesclosely with other Finnish companies,leading technical universities and researchinstitutes,” Lindström says.“We have combined expertise in wirelesstechnology with Raflatac’s expertise withpressure sensitive laminates. The result is aproduct with unique features. Rafsec’s ownexpertise is based on investments made inthe manufacturing technology of the smartlabel inlet.”Every inlet testedRafsec began production of the smart labelinlet in Finland at the Jyväskylä factory in1999. The entire production process – themanufacture of the inlet, the attachment ofthe microchip and the laminating – takesplace in special clean room facilities at thesame location.Timo Lindström emphasizes theimportance of quality control. Every singleinlet is tested, ensuring that each finishedsmart label works perfectly.Demand for thesmart label increasesAccording to industry forecasts, thedemand for smart labels will riseexponentially in the coming years. One ofthe factors accelerating this growth is thedevelopment of more efficient materialhandling systems. Bar codes are no longerenough for new applications: with the aidof the smart label, large volumes ofpackages can be handled quickly. Accordingto Lindström, Rafsec is fully equipped andhas begun mass production of the smartlabel inlets.32 RAFLATALK

RFID infrastructureis a singleentityThe construction of an RFIDsystem demands that it is managedas a whole.“A single component such as the smartlabel or the reader can’t be a stand-alonedevice – each part of the infrastructuremust work with the other. Typically, theimplementation of an RFID systemrequires a great deal of competence insystem integration and project management,”says Product Manager Tuomo Wallfrom Rafsec Oy.Wall believes that it is very worthwhilefor pressure sensitive printing companiesto familiarize themselves with the entirevalue chain and to seek cooperation withreader manufacturers and systemintegrators. The construction of RFIDsystems is highly challenging and bestanswered by networking with otherexperts.Photo: Veli-Matti ParkkinenRafsec to exhibit at showsin the USA and EuropeRafsec will exhibit its RFID products at threemajor trade shows this year.CHICAGOFrom October 3–5, the Frontline Solutions Expo 2000 inChicago, IL, will exhibit data collection, transfer and processingtechnologies. Developed from SCANTECH USA, the world’slargest and oldest event for data collection technologies, thisyear’s Frontline Solutions Expo 2000 will boast a wealth of newexhibitors, as well as SCANTECH itself.Bar code scanning, printing and labeling equipment, as well asradio frequency identification will also be on display at the show,which will feature tools for building links between informationsystems and the real world.GENEVAOn those same dates of October 3–5, Post Expo 2000 inGeneva, Switzerland will focus on the speed of change in postaloperations. Mailing technology will be exhibited by many leadingIT companies. Among other technologies shown will besolutions for e-business, fast systems for mail sorting and a wideselection of logistics.For the first time, the conference will also offer a non-stopprogram dealing with strategy and management, in addition totechnology demonstrations and updates for equipment andsystems.In the technology forum, Rafsec’s Peter Gawley will explainhow smart labels can be used in track and trace systems.Post Expo 2000 is officially approved by the Universal PostalUnion (UPU).FRANKFURTFrontline Solutions Europe, held in Frankfurt, Germany onNovember 14–16, will demonstrate how cutting-edgetechnology can optimize business systems. Previously known asSCANTECH Europe, the show will focus on storage,production, logistics and field service. Mobile computing andwireless network solutions, RFID and solutions for e-businesswill be among those technologies exhibited at the show.RAFLATALK 33

A printer forHi-Tech Printing Co. has been a pioneerin the technologically demanding nicheof return address labeling.all seasonsThe company prints sheetfed offset, flexo,and web offset in-house, combined withvariable information data imaging. Hi-Techis a company that places stringent demandson its material suppliers, and year afteryear, Raflatac has made the grade.Bob Dillingham knows the printingbusiness. Fourteen years ago he purchased asmall commercial printing operation withthree sheetfed offset presses. Soon realizingthe advantages of roll-fed technology, thecompany bought its first web offset press.Within the past two years, Hi-TechPrinting Co. has made an even biggertechnological leap with the acquisition oftwo six-color press systems. Today, Hi-Tech’s production floor boasts 13 pressesspanning the processes of web offset,sheetfed offset, and flexography; and thecompany operates out of a 60,000 squarefoot state-of-the-art facility in Fairfield,Ohio.Several years ago, Hi-Tech wasapproached by an existing offset customerwho wanted to secure a new return addresslabel supplier. Given some of the repeatlength limitations of web offset technology,Bob Dillingham knows the printingbusiness. Fourteen years ago hepurchased a small commercial printingoperation which now operates out of a60,000 square foot state-of-the-artfacility in Fairfield, Ohio.34 RAFLATALK

Hi-Tech purchased a 16 1 /2 inch six-colorflexographic press. Bob Dillinghamexplains his company’s migration intoflexography. “The repeats that the returnaddress label market required would notwork with any of our web offset rations.Normally, we try to fit a job within a 22,17 or 14 inch print cylinder, but theserepeat lengths wouldn’t work for thisapplication. Our flexo press has workedout so well, that soon after the purchase ofthe first machine, we bought a second.”A snapshot of the returnaddress label marketThe return address label sector is apromotional and donation-soliciting nicheunique to the U.S. marketplace andincludes some of the followingapplications.Catalogers: Companies are increasinglymailing out personalized return addresslabels and cards with their catalogs.Non-profit organizations:Organizations like the American HeartAssociation, and the Association forAmerican Veterans mail out personalizedreturn address labels in conjunction withdonation cards in the hope that people willgive money in return for their personalizedsheets of pressure sensitive address labels.College and university alumni associations:Colleges and universities send outpersonalized return address labelscontaining the school logo in the hope ofsoliciting donations from alumni.Promotional: An increasing number ofFortune 500 corporations are utilizingreturn address labeling as promotionalgimmicks. Examples include insurancecompanies and healthcare carriers.RAFLATALK 35

Today, Hi-Tech’s production floorboasts 13 presses.From a label converter’s viewpoint, thetechnical requirements of the returnlabeling address sector can be tough. Runsizes are usually small, and the economicequation can be a challenging one.Dillingham elaborates, “From ourstandpoint, these can be extremelychallenging applications. Let’s take cutsheetapplications as an example. Ourcustomer will want to supply the end-userwith four-color process printed labels thatare in cut-sheet format, 8 1 /2 x 11 inches,and there are 32 labels on a sheet with eachsheet containing a different image. Ourcustomer will come to us and tell us thatthey only want 2,500 sheets of thisparticular image, and 1,000 sheets of thatparticular image.”Hi-Tech has come up with animpressive and highly innovative workflowsolution in order to economically producesuch short run sizes. They print the linerside of the application containing all of theadvertising information, for example, fourcolorprocess. The web is then turned over,and is die-cut, stripped, perforated andsheeted. The die-cut and perforated sheetsare then run through one of the company’ssheetfed offset presses, and the four-colorprocess image is printed offset on the faceside of the material.The essential convertermaterialsupplier partnershipGiven the application demands of thereturn address labeling sector, Dillinghamclaims the relationship with a materialsupplier is critical. He states, “Raflatac hasthe most consistent lay-flat sheets of any ofour vendors, and it has been that way sincewe started doing business with them yearsago. Raflatac really understands the market.They know exactly what type of material torecommend based on how an application isprinted. They’re experts when it comes todifferentiating the print demands of ink jetversus laser imaging. They also have anoutstanding matt litho paper and semiglosssheets that they refer to as their midglossproduct line, which are excellent forroll-fed laser applications given its toneranchorage.”As more and more companies and nonprofitorganizations integrate returnaddress labeling sheets into their marketingand solicitation materials, this uniquelabeling sector will rapidly expand. And asmost effective partnerships are greater thanthe sum of their parts, Raflatac andHi-Tech Printing Co. will surely lead theway.As promotional marketing campaignsbecome increasingly personalized, andend-users fine-tune their supply chainmanagement requirements, variableinformation printing (VIP) takes centerstage. Pressure sensitive label converterscontinue to seek value-added applicationelements in order to differentiatethemselves from their competitors, andmany have successfully integrated VIPcapabilities onto their production floors.With the increasing demand for VIPlabels in the North American marketplace,some label converters have establishedthemselves as variable printing experts,supplying their customers a product arrayprinted by various variable imagingtechnologies including ion deposition,thermal transfer, ink jet, laser and directthermal. Converters utilize these variabledata print methods both on and off-pressto print sequential bar codes, sequentialnumbering and variable text and graphics36 RAFLATALK

WHEN VARIABLE MEANSValue-addedIn the expanding North American Variable Information Printing (VIP)marketplace, Raflatac secures a role as a leading material supplier.on tickets, tags, labels, forms and directmail pieces.Meeting market growthRaflatac offers a wide range of materialoptions to effectively meet the demandingprint requirements of this growing sector.One particular arena in which the companyhas recently witnessed substantial growth inthe United States is the ink jet market.Philip Coates, Raflatac’s Technical Servicesand Product Manager based in thecompany’s North American headquarters,comments, “We have seen considerablegrowth in labelstock being shipped to thedesktop ink jet market, and Raflatac is atthe forefront of new substratedevelopment.”Promotional mailings takeon a personal touchAnother sector where Raflatac has recentlywitnessed substantial material shipmentvolume increases is the return address labelmarket. Ohio-based Hi-Tech printing hasbeen a pioneer in the return address labelmarket, and company founder andPresident, Robert Dillingham, feels thisunique market will continue to expand inthe United States. “Non-profitorganizations are sending out these sheetsof personalized return address labels inhopes that the person who receives themwill want to give something back in return– a donation to the particular associationwho sent them the address labels in thefirst place,” he explains.Technology for specialitiesThe majority of Hi-Tech’s customers haveVIP capability within their own facilities.Hi-Tech simply supplies the printed, diecutsheets to be run through, for example, alaser printer at the fulfillment house priorto being shipped to the consumer.However, Hi-Tech has also secured variableimaging technology in-house for severalspecialty applications. Dillinghamcomments, “We have six cut sheet laserprinters on which we do some uniqueapplications – bar coding and variable dataprinting for the industrial sector, forexample. We also do some personalizing inline.We have ion deposition systemsinstalled on one of our flexo presses, as wellas on one of our web offsest presses. Byintegrating these systems onto our presses,we have the capability to variable image,print four-color process, die-cut, strip andsheet in a single pass.”Ion deposition is an electrographic, nonimpactimaging process that is able to printbar codes and other variable text and imageson a variety of substrates including paper,vinyl, polyester and tag stock at very highspeeds. One important aspect of in-line iondeposition imaging is that the system canusually image at the average run speeds ofmost printing presses to ensure there aren’tany interruptions in the workflow cycle.Very Important PartnerAs end-users continue to seek ways topersonalize the final printed product thateventually makes its way to the hands of theconsumer, personalization will increasinglybecome a central strategy of promotionalmarketing campaigns. Raflatac’s ongoingresearch and development efforts in thechallenging VIP sector offer the variableprinting converter an optimum-performingmaterial supplier partner.RAFLATALK37

newreleasesfrom RaflatacRaflatac has produced the following new brochures inorder to keep you informed about new products andend-use developments. All these materials are availablefrom your nearest Raflatac sales office or fromRaflatac Communications (fax + 358 2041 68136,email: raflatac@raflatac.com).You can also order the printed versionselectronically or download PDF files in English fromthe Service Line (http://www.raflatac.comor https://service.raflatac.com).PRESSURE SENSITIVE LAMINATESIN THE NORTH AMERICAN MARKETSPressure SensitiveLaminates – TechnicalInformation features acomplete list of theconstruction and properties ofevery product in the Raflatacrange. It’s your guide toRaflatac’s pressure sensitivelaminates.Pressure SensitiveLaminates – Sample Swatch isa useful folder that containsdetachable label samples ofRaflatac’s entire selection ofpressure sensitive laminategrades available in the StandardService Offer.The Gloss Book describesRaflatac’s Gloss range – whichis based on five high-qualityface materials – and givesadditional technicalinformation to help you findthe best grade for yourrequirements. It also gives aninsight into papermaking andbrief explanations of differentcoating techniques.The recentlyrevised Raflatacin Brief containsgeneralcompanyinformationabout Raflatac,its products andservices, and theRaflaweb.Safe Solutions for HealthCare Labeling presentsRaflatac’s renewed Pharma mix– a comprehensive selection ofpaper-based and syntheticlabelstock for pharmaceuticallabeling. It also includesRaflatac’s face material andadhesive recommendationsaccording to each application.Customer guide givespractical information aboutUPM Raflatac, Inc., thefinishing specifications,adhesive selection and linerdescriptions, as well as termsand conditions of sale. It alsoincludes complete productspecifications of products inthe Standard Service Offer.EDITION 2000Thermal Transfer Directory– Ribbon Recommendations isa useful handbook for thermaltransfer users. In addition togeneral information aboutthermal transfer (TTR) andvariable information printing(VIP), it includes therecommendations of majorribbon manufacturers formatching the right ribbon withthe right Raflatac paper.38 RAFLATALK

Continued from page 15Product infoon the Service LineBy registering with the Service Line you canaccess a variety of information concerningsome of the most popular reel products soldin the USA. The stock availability and rolllengths of a selection of Raflatac’s topsellingproducts in the USA can be viewedvia PAL, the Product Availability List, foreach of the North Carolina, Ohio,California and Massachusetts distributionsites. PAL is updated online, so it shows themost recent stock situation.Also on the Service Line, technicalinformation is available for individualproducts, and Raflatac’s brochures are onhand to view or order online.To gain access to PAL and the otherfeatures on the Service Line, users onlyneed to register. Raflatac’s home pageprovides a direct link to a verysimple registration form.Further instructions are givenonline.Raflatac’s home pagehttp://www.raflatac.comRaflatac’s Service Linehttps://service.raflatac.comRAFLATALKThe most intresting articles inthis issue of Raflatalk are:on pageon pageR E A D E RR E P L YC A R DAffixstamphereRaflatac CommunicationsP.O. Box 5333101 TampereFinlandon pageI would like to read more about topics such as:Please fill in your contact information on the back of this card.RAFLATALK 39

indexRAFLATALKTECHNICAL / EXPERT ARTICLES• Smart label combines the needs oflogistics and security, 2/99• Packaging trends – into the newmillennium, 2/99• A4 VIP requires quality, 2/99• Becoming one: The Internet and themobile phone, 1/00• Customer-oriented cooperation withECR, 1/00PRODUCTS AND END-USES• Universal Raflasilk, 2/99• Labelling for a feeling of freshness, 2/99• Safety comes first in pharma labels, 2/99• Wine – a classic product that requires alabel to match, 2/99• Synthetics and spring water, 1/00• Connecting people – and uniting labels,1/00• Good wine deserves fine clothes, 1/00• Sticker collections satisfy the desires of apassionate collector, 1/00RAFLATAC INFO• 2000 – The story behind it, 2/99• Standard service guarantees efficiencyand comprehensive service, 2/99• Fast and reliable Standard service helpsoptimize production, 2/99• The user-friendly Raflaweb, 2/99• To the lead with synthetic materials,2/99• Raflatac’s new organization ensuresoperational efficiency, 2/99• Spanish factory strengthens Raflatac’sposition in Special products, 2/99• Raflatac acquires self-adhesive laminatefactory in China, 2/99• From dreams to reality, 1/00• MegaPro increases efficiency, 1/00• Global service from Raflatac, 1/00• Technical features emphasized in Specialproducts, 1/00• Information society increases demandfor A4 products, 1/00• Web services move ahead, 1/00RAFLATALKREADER REPLY CARDFREE SUBSCRIPTION /CHANGE OF ADDRESSNEW READERSNameProfessionTick here to order RaflatalkAddressPlease sendcopiesPostal/Zip codeCountryPhoneFaxEmail40 RAFLATALK