Significant Plastic Tax Changes - Recycled Films

The UK Government issued an important update on the 30th October 2024 which has positive consequences for all Flexible Packaging manufacturers looking to increase their use of BOPP recycled films.

Under the terms of the initial legislation any recycled resin used to make recycled films or part recycled films could not include any element of Mass Balanced supply.

However, in the paper issued on the 30th October the Government has now accepted the principle of Mass Balanced recycled resin in plastic films. Which opens up 1000’s of tonnes of new recycled BOPP film capacity. The availability of recycled content BOPP has been far more limited than PET. But this new acceptance of Mass Balanced supply has opened up more capacity in PCR BOPP and interestingly bio-based BOPP recycled content film.

What is Mass Balance, here is a very simple description:

A mass balance scheme for plastic resins is like a bookkeeping system for recycled and new plastic materials.

Here’s how it works:

1. Mixing Recycled and New Materials: Imagine a factory where they mix recycled plastic and new plastic together to make products. Because they’re mixed, it’s hard to say exactly which items are made from recycled materials and which aren’t.

2. Tracking Proportion: Instead of separating every bit, the factory tracks the amount of recycled and new plastic they use. For example, if 40% of the plastic going in is recycled, they record that 40% of the output should be considered "recycled."

3. Certifying Products: They can then label some of their products as containing recycled plastic according to this 40% ratio, even if you can’t physically tell which exact items have it.

In this way, the mass balance approach helps companies meet recycled content requirements without needing to keep recycled and new plastic completely separate. It’s a practical way to increase recycled plastic use in production.

NUFFP are delighted to announce that we have been able to predict this change in direction from the Government and we have secured a supply partnership with a film manufacturer that supplies Mass Balanced recycled films using a Mass Balanced accreditation scheme called ISCC (click for more info). To read more about the ISCC BOPP PCR and Bio-Based Recycled Films we are able to supply, please visit this page in our website for more information.

To read the full Government Report please click here.

New Partnership for Flexible Packaging Papers

Nu Agencies are delighted to announce a new partnership with Finnish company WALKI to sell their vast range of extrusion, dispersion and barrier coated paper grades to the U.K. and Irish food packaging converters sector.

The partnership extends to only paper based grades that will be converted into food packaging.

WALKI are a €700M turnover business with 18 plants and 1700 employees across Europe and are recognised as having Europe’s largest extrusion capacity by some way.

The partnership aims to give the U.K. and Irish food packaging conversion industry easy access, through Nu Agencies, to WALKI’s huge range of paper based barrier products targeted at the following packaging sectors; Chilled and Frozen, Dairy and Butter, Fruits and Vegetables, Meat and Fish, Bakery, Dried Food and Cereal, Confectionery and Tea and Coffee.

Nu Agencies view paper based barrier films as an exciting growth sector and see WALKI as the perfect partner going forward for standard products such as PE coated Kraft and specialist products such as heat sealable.

Nu Agencies offers range of Alufoil products for the first time

March 2023 - Nu Agencies have been working hard over the last 6 months to add a range of Alufoil films for flexible packaging to our portfolio of products.

And we’re delighted to say that we’ve now “onboarded” three new suppliers with two more looking to come onstream later in the year.

Our suppliers are located in India and Thailand and will provide a welcome alternative for those of our customers still sourcing from Chinese manufacturers.

Alufoil supply chains globally remain volatile and often confusing as the EU imposes anti-dumping legislation and the U.K. Government has the supply from China under review.

All of our manufacturers are committed to growing capacity and one has fully backward integrated supply capacity, owning mines for the supply of the raw material.

The current range is primarily 7,8 and 9 mics but we do have access to all calipers as required. And of course we can offer a range of alloys including the most common 8079.

So should you be reviewing your source of supply for Alufoil we’d be delighted to have a conversation with you.

Nu Agencies Offer Alternative to PCR Film

As the demand for PCR (Post Consumer Recyclate) film grows one key issue pervades the supply of PCR BOPP. Whilst PET recycled raw material is relatively abundant, as a by product of the PET bottle recycling industry, reliable sources of PP recyclate remain difficult to come by.

That’s why the Nu Agencies team were fascinated to discover an alternative (and readily available) source of sustainable PP resin feedstock and films.

Working with a European film producer we now have access to a 1000 tonnes of BOPP film in 2023 produced from Used Cooking Oil (or UCO). Whilst the product still falls between the gaps in terms of UK and EU legislation, we think the mere fact that the film is derived from a used source makes it an interesting product for those suppliers keen to offer sustainable alternative films and food packaging products.

The UCO comes from a reliable and plentiful source and is processed through a polymerisation plant on it’s journey to being returned to virgin PP resin.

Our BRCGS accredited manufacturer then uses this resin to produce BOPP films indistinguishable from standard products.

Inevitably such products and claims will require further explanation and we and our manufacturing partner and happy to answer any questions you may have. Simply fill in the short form below.

Nu Agencies Launch NEW Economy Paperboard

Nu Agencies are pleased to announce the launch of a brand NEW addition to our range of Paperboard products for the gift and loyalty card market.

Designed for the most price competitive of jobs Nu Saturn still offers excellent whiteness and good rigidity and stiffness.

Produced in 710 mics / 28pt it is also available with an excellent carrier board grade in 305 mics / 12pt - 460 mics / 18pt.

The 710 mics / 28pt is fully coated on both sides and designed to be suitable for all card finishing processes, our carrier grade is fully coated on the front for excellent print reproduction and lit coated on the reverse, hence we label it C1.5S.

Both grades are available for delivery in Jan 2023.

Nu Agencies Launch NEW PCR Retort Film

We are pleased to offer our clients in the Flexible Packaging industry a new product containing up to 90% PCR content. This new retort film is designed for use in high temperature applications such as microwave pouches.

The PCR is sourced from a highly reliable source of chemically recycled PET and meets OM7 standards. The grade can be provided with 30% - 90% PCR content.

For further information please fill in the form below..

Market Insight March 2022 - The impact of the war in Ukraine on the Flexible Packaging Industry

All of us will feel the effects of the war in Ukraine. The Nu Agencies team have compiled this special report to try and provide an overview of the factors that might have an impact on the flexible packaging industry.

In this edition of Market Insights we will try and provide an overview of the current situation with regards to materials pricing and availability and other factors that will impact the industry such as energy and freight.

To download the report please just click here

Nu Agencies Launch NEW PVC FREE Plastic Card Material

Ingenuity MC60 (Mono-core) The PVC Free Alternative for Plastic Card Manufacturers

We are delighted to be able to offer a brand new material to Plastic Card manufacturers all over the world.

Ingenuity MC60 is the latest addition to our portfolio of plastics for card manufacture. Produced from a combination of chalk and HDPE the product provides a unique alternative to traditional PVC and PET G cards.

We are aware that many card manufacturers are struggling to source PVC and other substrates at the moment and are delighted to say that Ingenuity is freely available in substantial volumes.

Tried and tested over the past 5 years at a variety of producers around the world. Ingenuity is designed to perform the same, if not better in terms of printing, on all traditional card manufacturing equipment, even lamination machines.

If you’d like to receive more information about Ingenuity MC60 then please fill in the form below and we will send you an information sheet. Or leave us a message and we’ll get back to you.

Market Analysis 2022 - Plastic Film Pricing and Supply Chain Challenges

It takes a brave person to predict what’s going to happen to any commodity or market in 2022. However we have been talking to all of our suppliers and scouring the appropriate news channels to try and piece together as much information as possible to help our clients in the Flexible Packaging and Card Manufacturing industries.

Volatility & Agility

These are the two the key words in our opinion, when it comes to considering how best to look at the supply (and purchasing) of flexible film and plastic film products in 2022. Volatility; because there are some many different, often unpredictable, influencing factors in play that will affect pricing and logistics. And agility; as we believe that it’s important to build a flexible purchasing strategy that enables your business to roll with the inevitable punches the market and world will throw your way at certain times during the forthcoming year.

The Factors - Predictable

Let’s focus initially on what we do know with some certainty. Freight and logistics costs are likely to remain at the current high levels throughout 2022. There is still an imbalance of supply and demand in sea-freight, land-freight, warehousing and probably air-freight. More sea-freight capacity is scheduled to hit during 2023 as the new container ships that have been ordered are launched. And whilst shortages of vehicles, drivers and warehousing are being tackled, and new capacity is being built, it will take a while before that has an impact on supply and pricing. Air-freight is a little more difficult to predict as it’s linked to some degree to the growth (post pandemic) in regular consumer travel. If the world continues to unlock the number of flights is likely to increase and airlines have and continue to adapt planes to carry more cargo. But let’s not be naive and not acknowledge that air-freight pricing is to some degree going to pinned to sea-freight pricing. So we don’t anticipate a significant reduction in air-freight costs during 2022.

The Factors - Unpredictable

And this is where we really step into the unknown. The best we can do is identify the factors in play and commit to watching them closely and more importantly reacting quickly when we see more predictability in the numbers. Here’s the long list:

1. Inflation (Interest rates) - I think we’re all agreed it’s going to rise. The key indicator is when will it reach a point when it starts to affect consumer behaviour, when will people start to reduce their spending and demand slackens off?

2. Oil prices (Energy costs) - A really tough one, the price for which is at a record high right now. It would take a really brave person to predict the path pricing will take in 2022. And of course it’s closely linked to the Geopolitical situation.

3. The Pandemic - Another tough call as the world is in the midst of the Omnicrom variant right now. However, there is talk of an end to lockdowns and a return to some form of normal life in Q2. However the threat of variants still looms and markets remain nervous.

4. Natural disasters - The great Texan freeze marked the start of the dramatic increases in resin prices last year. Are we confident that adverse weather events won’t cause further disruptions this year?

5. Increased resin capacity - Whilst the pandemic affected new capacity build plans it’s clear that there is a large amount of new capacity due on stream in PE and PP in the near future. The pandemic and potential shortages of staff may have an impact on when this capacity actually enters the market.

6. Sustainability - From April 1st 2022 the UK Government is starting to charge a £200 per tonne “tax” on any plastic film that doesn’t contain 30% PCR content (Post Consumer Recyclate) It appears that other Governments are considering or on the verge of implementing similar levies. It will be interesting to see how that unfolds and the impact on purchasing.

7. Geopolitics - Again I think we all acknowledge there is more political instability globally than in recent years, how will this affect the supply of gas and oil as an example. But there are other political developments such as relations between the West and China that could have a significant impact on pricing and supply.

As this recent survey in Numerator shows if inflation starts to rise then consumers will cut back on non essential “luxury” purchases. This will leave retailers with an excess of stock and again have an impact on travel. In terms of food packaging it will drive a growth in own brand and discount hunting.

Polymer and Paper Pricing

At the time of writing is appears that for the first time in a while we are seeing a softening in PE and PP pricing but most of the market analysts believe that we will see prices starting to rise again as the year progresses. However PET demand remains strong and it appears that pricing will remain at current levels and higher for longer.

In relation to specific flexible packaging grades, this could leave to a short - term softening in BOPP and CPP pricing, although we still have to negotiate Chinese New Year! Then as the year progresses will may start to see increases again. BOPET pricing could remain close to current levels for a while.

Likewise for consumers of PVC for card production, there is no sign that prices will reduce any time soon. Particularly as producers are attracted by other more lucrative channels and are switching production capacity from PVC to other more sustainable polymers.

As a business we also have a substantial involvement in paper and paperboard supply and the bad news is that in the medium term it looks like pricing will continue to climb and availability will continue to be tough. Card producers that use paperboard and flexographic food packaging producers (looking to switch to paper-based products) need to be aware of the significant supply and pricing challenges ahead.

The supply of all printable substrates is heavily influenced by consumer demand and we are still to some degree in the grip of the pandemic consumables spending spree, where people unable to spend on travel are spending more on food and “luxury” consumables. If inflation takes hold in certain regions of the world, then demand for these items (that rely on many forms of packaging) may suddenly drop quickly. We are then in an oversupply situation and prices may start to soften.

2022 is likely to be a roller coaster ride in terms in material costs!

Conclusions

The $64’000 question. And as you can see it’s virtually impossible to approach 2022 with any degree of certainty in respect of any area of purchasing. It’s a cliche’ but the only certainty is uncertainty.

Therefore as we said at the start an agile purchasing strategy is essential. Being prepared to switch and change suppliers, materials and commitments to clients is vital.

What’s also clear is that most raw material costs are only going in one direction in the short - medium term, and that’s up. Even if material prices stabilise and even reduce as the year unfolds, energy and freight cost for example look likely to remain high in the longer term.

It’s also looking pretty clear that inflation in most economies is set to grow, and considerably, and that brings in the issue of changes in consumer buying behaviours. is it therefore a good idea to prepare a strategy for a change in the type of products you’re currently producing? Will there be a shift from higher quality to own brand discounted products, with all the pressure that will put on your pricing.

And then there are decisions to be made about material supply shortages, if one of your key materials was suddenly unavailable at short notice, what contingency plans do you have in place? Are you going to increase the amount of stock you carry? Remembering that interest rates and the cost of borrowing are also set to increase.

Are you in close contact with all your key suppliers? Are you aware of where you sit in their pecking order? Do you have the power buying to have complete confidence of a place at the discussion table if suppliers are forced to choose who they trade with and supply?

We’re sorry to ask more questions than we can provide answers but ultimately each business must make their own decisions about the factors that are likely to affect their business the most.

However coming back to that word agility. If there is one change in approach we think is absolutely essential it’s being prepared for change. If you currently buy key raw materials from one main supplier and one back up, then talk to four more about what they can offer you.

Take an honest look at where you sit in the pecking order of all of your suppliers, and ask yourself the question; if there was a problem do we have the power and or influence to make sure we are a priority? If the answer is no, then look to work with alternative providers that do have that place at the table.

And finally it feels like all of the above is leading to one huge ultimate challenge for everybody, pressure on margins. Your clients are going to fiercely resist all upward price pressure and every lost % digit will have an impact on your bottom line. Look at down gauging, re-sourcing and alternative materials as soon as you can.

Paperboard for Gift Cards - Still Availability in 2022

As global supply chains continue to struggle with demand and more and more paper mills introduce allocation and highly extended lead times. Nu Agencies are pleased to announce we still have paperboard available for delivery next year. If you’re in a position to place an order within the next few days (starting 7th Dec 21) we are still able to offer delivery on some grades in Feb 22.

Our two main grades are:

Nu Galaxy PLUS Click HERE for more information.

Nu Solar Click HERE for more information.

The supply situation is obviously volatile right now, if you’d like to receive regular updates then just leave your email address below:

Paperboard Supply Updates

Nu Agencies Joins the BPF

We are delighted to announce that we have just become members of the British Plastics Federation. Many thanks to the team at the BPF who have handled our “induction” and for giving us access to the range of incredibly helpful tools that Membership has brought us.

Paperboard Card Material made in the UK for the US Market

Nu Agencies have specialised in the supply of a wide range of materials to the plastic and paper card manufacturing sector in Europe for many years. NOW we’d like to supply our friends in the North American market.

As part of our expansion into the USA we like to introduce you to our range of Paperboard products. Three distinct products to suit every possible paper card application type. All are 100% recyclable and FSC Certified. All produced in the U.K. with raw materials sourced from cutting edge EU board manufacturers and produced to US card standards at our state of the art lamination facility in the U.K.

Galaxy PLUS - Our premium grade SBS board which has the rigidity and feel of a plastic card. To download a product information sheet click here

Solar - A multi-layered SBS board designed for long run work where economy is important. To download a product information sheet click here

Earth - A unique and highly economical (85% SBS / 15% CTMP) board designed for backing cards or high volume price sensitive campaigns. To download a product information sheet click here

Nu Agencies joins International Card Manufacturers Association (ICMA)

We are delighted to announce that we have joined the ICMA. A body that represents card manufacturers , suppliers and affiliates globally. Looking forward to meeting our US clients at the annual Expo in Florida in Nov 2021. Fingers crossed nothing prevents us from being there!

The BRITS are coming to the USA Card Materials Market

Nu Agencies are looking to expand their materials supply for card manufacturers business to the North American market. Check out this “interview” with our Business Development Director - Ian Brown where he talks about our plans and our range of standard card raw materials.

Ian also talks about and our unique eco-friendly alternatives to PVC, Nu eCard and tCard from which we can help you to produce 100% PVC free cards with the look, feel and durability of traditional plastic cards.

Watch out too for the launch of our PVC free RFID inlay alternative, which will allow you to create 100% PVC free contactless cards!

If you’d like more information please just drop your details into the form at the bottom of the page.

If you’d like further information about Nu Agencies and our expansion into North America then simply leave your details in the boxes below:

NEW PRODUCT - Low SIT Matt BOPP for Dry Foods & Pet Foods

Nu Agencies are pleased to announce the arrival of a new product in our range of BOPP grades.

With a Low SIT (<108°C) on one side (the matt side) the reverse side is treated and heat sealable. We think it’s the perfect product for a range of dry food products particularly when producing bags designed to carry a heavy weight of product.

Key Features

• High Haze >75%

• Low SIT <108°C

• High Seal Strength

• Excellent film homogeniety

• Good contact transparency

• Excellent Matt Dispersion

• Low Gloss on Matt Side

Suggested Applications

• Pet Foods with pinch bottom

• Rice, Flour bags

• Building materials

• Heavy duty bags or sacks (10 - 50kg’s)

To receive more information including a TDS then please leave your details below and click submit

Why Polymer prices are sky rocketing & what does the future hold

As a business heavily involved in the supply of a range of printable plastics Nu Agencies, like many of our customers, have been trying to make sense of what is driving the dramatic increases in resin costs seen over the last two months, which in turn are fuelling increased prices for finished film. Increases that are presenting many flexible food packaging manufacturers with some tough challenges.

Whilst fortunately we are able to source our materials from a diverse range of suppliers around the globe, we understand the hardships these price rises are causing and the associated supply problems, so like many people in the industry we have been looking for background information and trying to get view of how long this situation is likely to continue.

Please find below a couple of articles that we found useful to help us make sense of what is happening and as importantly what the future price and availability situation looks like.

We are, of course, happy to speak to anyone who is looking for alternative sources of supply.

Plastics Exchange Article

Plastics Today Article

What does the future hold?

If you have read these articles then clearly some of the unique factors that have created the drop in resin supply and rise in prices are now behind us, but it will take several weeks for production to resume and supply volumes to normalise. We’ve reached out to three of our suppliers this week on three different continents and each of them are saying they expect the inflated film price situation to continue for a minimum of two months. However each of them also has a watchful eye on the price of oil, which has once again started to creep up. If that trend continues then perhaps the return to 2019 price levels will take longer than the currently predicted two months.

2020 Wrapped-up

Happy New Year from the NU: Agencies team.

Over the festive period we took the time to review 2020 & reflect upon what was the most challenging year we have experienced to date.

We kicked off the year by launching our new FSC certified and recyclable paperboard range at the UKGCVA show in London. The team were seriously excited to showcase the boards & engage with some of the industries leading experts. Many of our customers were present & it was a great opportunity to meet up with some familiar faces! For more information on NU: Paperboard, please follow this link NEW Paperboard launch for the Gift Card Market — Nu Agencies

Shortly after the successful UKGCVA show, the UK was plunged into the first version of ‘lockdown’. Due to the outbreak of Covid19 the team had to switch to working remotely. This presented many challenges, as the shift from face-to-face meetings with customers, suppliers & fellow work colleagues switched to video conferencing tools such as ‘Microsoft Teams’ & ‘Zoom’. The safety of our team members was paramount and wherever possible we worked from home and closely followed the protocols set out by the government. As a business we learnt that being adaptable and flexible to the current situation presented to you is vital.

Hospitality suffered as a consequence of lockdown, the demand for gift & hotel key cards waned. Fortunately, supermarkets were experiencing ‘panic buying’ and a demand for food that usually comes about once a year at Christmas. The team worked hard to keep up with our customers’ requirements & this area of our business experienced good growth. For more information on what NU: Agencies can offer please follow these links… BOPP — Nu Agencies , BOPET — Nu Agencies , CPP — Nu Agencies

In July, our team grew & Emilia Lynden joined as a Sales Co-Ordinator. We were excited to welcome Emilia to NU: Agencies and develop her knowledge of the business.

As 2020 drew to a close the ports around the UK were experiencing high congestion of vessels and a low volume of containers. A combination of stockpiling due to the oncoming Brexit deadline & issues caused by Covid-19 were to blame. Felixstowe had 11,000 containers of PPE clogging up vital space on the quay. Lead times were being stretched & the importing process was taking longer than normal. The NU: Agencies team tapped into its 40 years of experience in freight & logistics & used the resources we had available to us to negate any disruption to our operations.

Soon after our attention turned to Brexit & ensuring our customers & suppliers were as best prepared as possible. Priorities involved checking stock levels were sufficient & containers were loaded/unloaded on time.

Looking back, 2020 was as a challenging year but it also included a lot of growth and learning for the team & the business. Our outlook for 2021 is positive, despite at the time of writing, the UK entering another national lockdown. The team are hopeful that in quarter two, the hospitality market will be able to re-open and that flexible food film continues to experience record growth and demand. We are looking forward to being able to visit our customers and suppliers very soon.

NEW Paperboard launch for the Gift Card Market

The raw material supply chain is set to continue its evolution during 2021. As more and more brands look for Paperboard cards to replace traditional plastic cards, particularly in the gift card market, there will be an increasing demand for dedicated and flexible Paperboard supply. NU: Agencies are a supplier that specialises in the supply of a range of printable substrates for cards of all types. We are pleased to announce that we have recently added a range of FSC certified Paperboard products to our portfolio.

What is different about our range?

Having been involved in the card market for many years, NU: Agencies have a proven track record of creating products to suit a variety of different budgets and application types. A big advantage we have over many of our competitors is that we are able to hand select all of the raw materials that make up our unique multi-ply cards. We possess the ability to source SBS and other materials from a number of European mills, whilst working closely with our lamination partners to create products with specific characteristics and benefits. Furthermore, we can offer consignment stock facilities across the UK for all our customers.

Introducing you to the NU: Paperboard range:

NU: Galaxy - Our premium product with top class stiffness and rigidity, that has the feel of a plastic card

NU: Solar - A more economical grade designed for longer runs

NU: Earth - Our most economical product where value is key, can also be used as a backing card

All of the products listed are available in a range of different sizes and thicknesses.

NU: Agencies are a dedicated supplier that understands the unique challenges of the card manufacturing sector. In tonnage terms the Paperboard gift market is a low priority for many paper mills in comparison to the high-quality packaging sector, for which many of their products are designed.

If you are considering the switch to Paperboard, NU: Agencies can offer a personalised and informed service.

Please click below to read more about NU: Paperboard:

https://www.nuagencies.com/paperboard-cards

Nu Agencies Showcase NEW Paperboard products at UKGCVA conference in London

Jack Jolly from Nu Agencies manning our stand at this year’s UKGCVA conference in London on the 4th March 2020. And delighted to be there he looks too!

Seriously we were excited to be involved at the event and took the opportunity to showcase our new range of paperboard card materials; Galaxy, Solar, and Earth. A range of FSC certified and recyclable products for the paper card market.

It’s COLD in China in February! Nu Agencies Visit Manufacturers

Nu Agencies and their parent company Nuco International have traded with Asian manufacturers for well over 10 years and we regularly visit our suppliers to meet with their management teams and see new machinery. We were invited to Jiangsu province in February to see the launch of a new coating line at one of our key suppliers of PET G core and overlay. Unfortunately we came unprepared for the very chilly conditions and Keith Matthews the M.D. of Nuco International had to borrow a rather fetching coat. In the picture Keith proudly shows of his recently acquired garment while standing next to Robbie Liu who runs our Shanghai office and oversees all our Quality Control procedures.