As a result of this transaction, the manufacture of cartonboard pallets, components and transport packaging materials will also now be localised in Japan, in accordance with Eltete TPM’s global concept and vision.

- This transaction is significant for us because it will open the Japanese market up to more factories. The service network in Japan will be improved by means of local automatic pallet assembly lines. The importance of the deal is also increased by the fact that our co-operation with globally-operating Japanese multinationals will intensify, says company CEO, Bo Österman.

- Our aim is to introduce APPA machinery, which represents the latest technology, all over the world, and to make it into the first global standard for cartonboard pallets. The order now received from Japan is an exceptionally good achievement in the right direction and will be the first of its kind in Japan. In accordance with our plans, we are strongly pursuing our goal, and this deal is proof that we are at the cutting edge of our field globally, both in terms of the product and technical expertise, adds Mr Österman.

In Eltete TPM’s overall concept, the manufacture of environmentally-friendly transport packaging materials, strong product development and the machine building that supports it have enabled the company to succeed in its aims for expansion. Local manufacture, a global spread and products based on sustainable development have been increasing in significance, which will continue to promote the company’s efforts into the future. In recent years, the development of Eltete TPM’s sales has been positive and, at present, the company’s own production network covers 21 factories in 15 different countries.

The demand for cartonboard pallets has increased considerably in recent years. Eltete TPM’s production lines can produce 10 pallets per minute.

The factory in Nanjing will be completed at the beginning of 2013. The production will first concentrate on edgeboards, honeycomb board and carton pallets. In the second stage, the plant will start to manufacture slip sheets, dunnage bags and D-Board.

D-Board will be one of the main products on which Eltete Nanjing plant will focus. D-Board can be used as an advertising board, product display or printed surface. Together with Eltete design profiles, D-Board is an ideal structural element for displays and exhibition furniture.

Nanjing was once the financial centre of the Far East, and also has a prominent place in Chinese history having been the capital of the country on several occasions. Since the reforms that began in the 1990s, great changes have taken place in the area. The municipal government is working towards building the city into a modern metropolis and into a world economic, financial, trading and shipping centre. Nanjing is considered to be one of China´s most important cities.

With an urban population of over seven million (2011), Nanjing is the second largest commercial centre in the East China region after Shanghai. In terms of sustainable development potential, the city was ranked second of all those in the Yangtze River Delta. Logistically Nanjing is very well located since many Eltete customers are located in the surrounding area.

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Shanghai Eltete Packaging Technology Co Ltd, a subsidiary of the Loviisa-based Eltete TPM Group, is building a factory in the city of Chongqing in Western China.

Chongqing has often hit the headlines as the largest city in the world in terms of population with 32 million residents. Eltete TPM’s (TPM = Transport Packaging Materials) factory will be erected in one of the industrial parks located just outside the city. The factory will be built in two stages. In the first stage, about 5,000m² of factory space will be completed in spring 2014, and in the second stage, it is planned that a further 5,000m² will be ready in 2015. In the first stage, the Chongqing factory of Shanghai Eltete will manufacture about 5,000 tonnes of transport packaging material.

The main customers include the electronics industry and its contract manufacturers. In the near future, the region will produce almost 50 % of the world’s laptop computers. Chongqing is one of China’s four municipalities with the status of a province – the others are Peking, Shanghai and Tianjin. Chongqing’s purpose is to lead the development of China’s western part, so China’s Central Government is investing large sums there. Another interesting fact is that Chongqing plans to build ‘direct railway connections’ to the port of Rotterdam in Holland and to Rangoon in Burma. Like many other projects in China, these projects are mammoth in scale and you can only wonder at them.

The city of Chongqing is also a port city, because from there it is possible to transport containers and cargo along the Yangtse River to the ports on the Yellow Sea and on to the Pacific Ocean, and soon there will also be direct rail connections to the Atlantic and Indian Oceans. The preliminary estimate of the time taken to travel by rail from Chongqing to Rotterdam is 20 days, but the date for the completion of the railway has not yet been announced.

Shanghai Eltete, a subsidiary of Eltete TPM Group which manufactures transport packaging materials, already has five subsidiaries in China, and the new factory will be the company’s first production plant in Western China. A significant volume of industry has already moved and is still moving from the Shanghai region inland, because of labour shortage, growing labour costs and the rapid increase in general cost levels in the area of Shanghai. “The establishment of the Chongqing factory has nothing to do with transferring production. We are aiming to be local in a very large market area in inland China.

Through the new factory, it will be possible to localise the production of transport packaging materials, which will help business to grow on the back of many global customers. In Chongqing, we are confident that we can achieve a turnover of about RMB 50 million (€6.2 million) fairly quickly, and certainly by 2015,” says Bo Österman, CEO of Eltete TPM Group.

Eltete TPM Ltd has concluded a contract in the Middle East with the Retrapac investment group based in Dubai to spread production of cartonboard pallet technology (Paper Roll-to-Paper Pallet technology, see attachment) and APPA cartonboard pallet manufacture (Automatic Paper Pallet Assembly) to the areas of the Gulf states (GCC), the Levant, Iraq, Iran and North Africa.

In the first phase of the contract, a locally-owned Eltete Middle East cartonboard pallet and packaging material factory will be established in Dubai to meet the demand from the United Arab Emirates market. Cartonboard pallet production will be targeted at, for example, in the area of the Dubai Logistics City air freight terminals and for the logistical needs of industry operating in its vicinity. Dubai is a logistical and spare parts centre for many major international companies, from which they can serve their customers with JOT deliveries. Bo Österman, Managing Director of the Eltete TPM Ltd Group, reckons that the Logistics City airfreight terminal project alone will create the need for the production of many millions of APPA cartonboard pallets during 2012 and 2013. In air freight traffic, a significant minimisation of cargo weight can be achieved even with small volumes, which means a reduction in CO2 emissions and direct financial savings for customers.

The Dubai-based Retrapac investment group and Eltete TPM have agreed to start up their first factory in Dubai, UAE, in 2012, after which additional plants will be delivered to Saudi Arabia, Egypt and Iran in 2012 and 2013. By 2016, a total of 10 APPA cartonboard pallet factories will have been set up in MENA (Middle Eastern and North African) countries. As the project progresses, the plan is also to establish local APPA factories in Iraq and Pakistan as well as several in North African countries.

Eltete TPM is spreading its APPA cartonpallet factory technology globally and believes that it can develop the first-ever global carton pallet standard, as a result of which local and economical manufacture and availability can be achieved. The total value to Eltete TPM of the machinery and equipment deliveries for this project is €20-25 million.

The project will be carried out in stages between 2012 and 2016 and will significantly strengthen Eltete TPM’s global position as a supplier of transport packaging materials, turn-key solutions and technology. ”We know and we can see that something big will come out of this. We believe that, from this ‘Paper Roll-to-Paper Pallet’ concept, we can develop a worldwide standard for cartonboard pallet production, which will be known as ‘the Eltete APPA pallet’, and through this we will sell these factories all over the world,” adds Managing Director, Bo Österman. ”In certain projects, we ourselves are involved either as an operator or a strategic partner.

In total, we have 21 transport packaging material plants in different parts of the world, and in the future each one will become engaged in APPA pallet production. This business is interesting because many APPA pallets will be sold once it is possible to manufacture them very locally. At the moment we have many projects ongoing all over the world, and this has become a pretty global business.”

2012

• Upakovka 2012, 24.-27.1.2012, Moscow, Russia, Hall 2.1, Stand 21B02
• Feira de Embalagem do Brasil, 24.-27.4.2012, Sao Paolo, Brazil, Hall 01 Stand C48
• Hispack, 15.-18.5.2012, Barcelona, Spain, Hall 2 Stand E781
• Rosupak, 18.-22.6.2012, Moscow, Russia, Stand E781
• FachPack, 25.-27.9.2012, Nürnberg, Germany, Hall 9, Stand 333
• Pakkaus 2012, 26.-27.9.2012, Helsinki, Finland, Stand 3b6
• ScanPack, 23.-26.10.2012, Göteborg, Sweden, Stand c02:02

Pakkaus 2011, Helsinki, Finland

Interpack 2011, Dusseldorf, Germany

Interpack packaging exhibition, which is held every 3 years in Germany, was this year one of the most successful ever in its 53-year history as the world’s most important trade fair for the packaging sector and related processing industries. 2,700 exhibitors from 60 nations and 166,000 visitors (100,000 from abroad) showed clearly that the overriding theme is sustainability in today’s packaging.

For Eltete TPM the exhibition was very successful as well, we got interesting new leads from all parts of the world. Interpack has also been a great meeting point to see our existing customers.

• Our whole stand was made with our own products; D-board, profiles, displays etc. The hits of the show were definitely carton pallets and honeycomb board from our new production in Finland. Also The Box which is an alternative to wooden or plywood boxes was one of the most popular products of this exhibition.
• Great interest was shown to Eltete Engineering advanced technology solution APPA- the Automatic Paper Pallet assembly line, which makes local paper pallet production possible anywhere in the world.
• DeMill, a member of the Eltete Group exhibited their 100 % recyclable design and graphic industry products in our combined stand.

We have seen an increasing interest to environmentally friendly packaging materials. It is clear that packaging decision makers are looking for sustainable materials which comply with their company environmental policy.

• EU government regulations are leading the way to a greener future.
• Our visitors are satisfied to always find new innovative products in our stand. This is something that everyone is looking for, new ideas.
• Multinational companies are committed to work with our company also due to the fact that our international network can cover all locations.

We thank all our customers and new contacts for visiting our stand. It has been a great pleasure to see the genuine interest in our products and the understanding of our concept and slogan the 3R – Reduce, Replace, Recycle. We are happy to be able provide you our products and services from our global sales network.

Eltete TPM is taking part in the Nord Stream pipeline Project by supplying FramePack®‐solution for transport elements used in the protection of gas pipe elements. French‐owned Eupec Pipecoatings S.A., in charge of coating and logistic services, is using this solution in their coating plants in Finland and Germany. Eltete Packaging Profiles are being used in warehousing to stack pallets and optimize the use of space.

The palletized product itself is a silicon cap, which will be placed at both ends of the 12‐meter pipe element during transportation to the assembly location. In total approximately 202,000 pipe elements will be concreteweight coated by Eupec, doubling the weight of the pipe up to almost 25 tonnes, ensuring the stability of the pipeline on the seabed. Around 40% of pipes will be coated in Kotka (Finland) and 60% in Mukran (Germany). The anticipated total capital cost of the Nord Stream Project is € 7.4 billion. The first of two parallel 1,224 km long pipelines is scheduled to for completion in 2011, the second one in 2012.

Eltete TPM has developed and produced this cost‐effective, ecological and 100 % recyclable packaging solution, which is highly suitable for the project in its concern for the environment. Eltete transport packaging products are being used as part of the logistic chain worldwide. The company currently has 21 production plants in 15 countries, which makes Eltete an interesting cooperation partner.

We thank all our clients and new contacts for visiting our stand. It has been a great pleasure to see the genuine interest in our products and the understanding of our concept and slogan the 3R – Reduce, Replace, Recycle. We are happy to be able provide you our products and services from our global sales network.