Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks; label and narrow web inks; toner; inkjet materials; adhesives for packaging; overprint varnishes; specialty coatings; effect inks; flexographic printing plates; digital artwork file management; color software and brand color management; security inks and coatings; organic colorants for inks, plastics, paints, coatings and cosmetics; liquid compounds for printed circuits, printed electronics, solar modules, and digital inkjet printing; solid compounds for automotive components and glossy interiors as well as industrial, construction and other electrical components; adhesives for commercial and industrial electronics; magnetic tapes for plastic cards; and degasification modules for inkjet printing.

Number of Employees: DIC has more than 20,000 employees worldwide.

Operating Facilities: Sun Chemical has 176 subsidiaries across 63 countries.

Comments: For Sun Chemical’s Chris Parrilli, “opportunities” is the key theme when looking at the company’s prospects.

“I think all markets are opportunities, even the declining markets. With the right approach and value proposition, every market is an opportunity for us,” said Parrilli, who is in his third year as president of Sun Chemical North American Inks.

Sun Chemical is the largest ink manufacturer in North America, and the company did well in 2019, with Sun Chemical holding its own in some declining markets and adding some share in others.

“In 2019, the North American markets performed as we expected,” said Parrilli. “While some are declining and some are mature, the markets continued to demonstrate what we already know about them. However, Sun Chemical did add some share in the markets that we targeted.” There are ink markets, publication inks come to mind, that are declining, but Parrilli observed that there are ways to still grow in these segments.

“The fact that we are in both mature and declining markets is certainly a challenge because we do need to grow,” he said. “So how do we counter that? We introduce new product offerings and pursue bolt-on acquisitions that are compatible with both Sun Chemical and our customers.

“We have started to address redundant capacity by closing non value-added sites while also addressing efficiency and capacity at key manufacturing plants; and we have seen the benefits,” Parrilli noted. “We all strive to have more successful performance than usually attained, but we are satisfied with how we performed and what we were able to accomplish in 2019.”

Parrilli reported that Sun Chemical had a number of highlights in the past year, specifically noting the Maumee, OH site expansion, Sun Chemical’s success at the customer level, and noting that every facet of the business has had some level of strategy deployed.

“We are creating more efficient facilities, for example, expanding our capabilities at our water-based ink facility in Maumee,” said Parrilli. “This is a big opportunity for us.

“The area I’m most proud of is our ability to build our customers’ trust,” he added. “We have signed significant contracts in 2019 and continue to win new business. That’s what it’s all about – earning your customers’ trust, building their confidence, and winning their business by demonstrating that you can deliver on what they need.”

Sustainability is an important area of emphasis for Sun Chemical. For example, the company is highlighting its SunVisto AquaGreen natural-based flexo paper packaging inks. SunPak FSP, Sun Chemical’s food packaging offset inks based on renewable bio-based materials, has been independently tested for its sustainability levels.

Raw materials have been a long-standing concern for the ink industry in general.

“From my perspective, materials are relatively stable. Raw material stabilization helps the ink industry in general,” he observed. “We always have a difficult time moving our material costs to customers, and a stable raw material market, both in cost and in supply, lends itself to predictability, which is beneficial.”

Parrilli noted that Sun Chemical has taken steps to secure its supply chain in case of shortages.

“Our supply chain is robust,” he added. “Our ability to have multiple suppliers where needed is a strategic approach, allowing us access to materials when a situation arises. Certain events, like the coronavirus, may disrupt the supply chain. When these events occur, we simply monitor the situation, create global teams to manage supply, and work hand-in-hand with our customers to deliver on time with a highly consistent product.

Parrilli sees plenty of opportunities ahead for Sun Chemical in 2020 and beyond.

“The opportunities are endless. Whether you’re dealing with flexible or paper packaging, or offset products like commercial sheetfed or coldset for news – everyone is in need of something, whether it is a new product, a new technology, a more effective supply chain, or something else,” he concluded. “We’re confident because we have great people, product, and services to offer in all of our markets.”

“I’m an optimistic person,” Parrilli added. “I do believe we have done a lot of good things over the past couple of years and I expect 2020 to be better than 2019. I’m confident about what we have put in place and that we will continue to drive sales and value for Sun Chemical, DIC and our customers. We are excited about what we think we can accomplish over the next year.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks; label and narrow web inks; toner; inkjet materials; adhesives for packaging; overprint varnishes; specialty coatings; effect inks; flexographic printing plates; digital artwork file management; color software and brand color management; security inks and coatings; organic colorants for inks, plastics, paints, coatings and cosmetics; liquid compounds for printed circuits, printed electronics, solar modules, and digital inkjet printing; solid compounds for automotive components and glossy interiors as well as industrial, construction and other electrical components; adhesives for commercial and industrial electronics; magnetic tapes for plastic cards; and degasification modules for inkjet printing.

Number of Employees: DIC has more than 20,000 worldwide.

Operating Facilities: Sun Chemical has 176 subsidiaries across 63 countries.

Comments: Sun Chemical had an average year in 2018, as the company continues to grow its packaging business while finding opportunities in new markets.

“We were fairly consistent with our expectations,” Chris Parrilli, Sun Chemical North American Inks president, said. “Our core business is more packaging related, and we will continue to see growth in packaging as we continue to invest our money into research and application experts. We continue to see a decline in publication, particularly in coldset, where we see a significant decline. Fortunately, we have specialty areas where we are making good progress.”

While Sun Chemical is growing, raw materials costs and availability remain a concern. Parrilli said that the volatility of costs and supply concerns of major raw materials, from photoinitiators to pigments and even crude oil, is a critical issue that is impacting the bottom line. The higher costs forced Sun Chemical North America to announce price increases on all inks, coatings and consumables twice in 2018, but that didn’t begin to cover the higher costs.

“One caveat is raw material costs,” Parrilli said. “We expected some material increase in 2018, but nowhere did we anticipate the dramatic rise, and it is very difficult to pass those increases along on a timely basis. Our customers believe us, but they have their own struggles.

“The material market is very dynamic,” he added. “The photoinitiators market is unstable. Some pigments will continue to cause us issues because of capacity curtailment, especially pigments and intermediates coming out of China. Crude oil is anyone’s guess. We saw a 50% increase in costs, and they remain volatile. Carbon black is under pressure.”

Parrilli said that the ultimate goal is to maintain critical products for Sun Chemical’s customers, but it is a challenge.

“Our priority is securing our supply and keeping our customers running, and we have been successful at doing that, but that comes at a price,” he noted. “The cost to us has been significant. We were able to recoup some of our cost increases, but it makes us a little uneasy heading into 2019. Certainly, we don’t expect to see the same cost dynamics that we saw in 2018, but we are not sitting here thinking that it will be a relatively calm, stable environment. We are making sure our customers are secure, making it as transparent as possible, looking at our supplier base, long-term supply agreements and opportunities to continue to look at our products, the materials that are in them, and alternatives. Technology is a big part of what we do.”

Higher transportation costs and tariffs are two other issues impacting all industries, and ink companies are no exception. Parrilli noted that higher transportation costs aren’t going to settle anytime soon.

“It is simple supply and demand economics with drivers,” said Parrilli. “The cost increase really surprised me, as it was anywhere from 20% to 30%. You’re trying to cut shipments, and you have to make sure you send the trucks out as full as you can. It really takes significant supply chain planning to put together the most cost-effective method.”

As for tariffs, “We are starting to see the 10% additional cost of materials, and if the tariffs rise to 25%, it would be a significant cost to all of us in the ink industry,” Parrilli observed.

In major personnel news, Myron Petruch was named president and CEO of Sun Chemical as of Jan. 1, 2019. Petruch served as president of Sun Chemical Performance Pigments and GM of the Pigments Products Division since 2008 and was named an executive officer of DIC Corporation, Sun Chemical’s parent company, in 2017. Petruch succeeds Rudi Lenz, who is now vice chairman of the board at Sun Chemical.

“Myron’s background and track record of success make him the outstanding individual for this very important position at Sun Chemical,” said Masayuki Saito, chairman of the board, Sun Chemical. “On behalf of DIC and Sun Chemical, we are grateful to Rudi for his accomplishments and fine work as president and CEO and we wish Myron every success in the future leading Sun Chemical.”

Parrilli noted that 2018 was his first year as president of Sun Chemical North American Inks, and he sees excellent opportunities ahead for the company.

“I am continuing to build our new team and integrate them into our organization,” he noted. “We are looking at how we grow outside of our traditional markets. We are always looking for the right acquisitions to drive growth, and we are continuing to assimilate Joules Angstrom’s people, their application expertise and technology into our organization. Coatings and adhesives are also a great opportunity, which we can match with our ink technologies.

“I am cautiously optimistic,” Parrilli concluded. “The packaging market will continue to grow, and hopefully raw material costs will stabilize. Packaging is our biggest market; Sun Chemical has a very strong market share, and we understand our customers’ needs and continue to deliver on them, whether it is less inventory, less waste, run at faster speed, developing new color technology and various other projects. There is a big effort around sustainability and all that goes with it and I believe we are at the forefront with technologies and solutions for the customer. Our focus is always on the customer.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks; label and narrow web inks; toner; inkjet materials; adhesives for packaging; overprint varnishes; specialty coatings; effect inks; flexographic printing plates; digital artwork file management; color software and brand color management; security inks and coatings; organic colorants for inks, plastics, paints, coatings and cosmetics; liquid compounds for printed circuits, printed electronics, solar modules, and digital inkjet printing; solid compounds for automotive components and glossy interiors as well as industrial, construction and other electrical components; adhesives for commercial and industrial electronics; magnetic tapes for plastic cards; and degasification modules for inkjet printing.

Number of Employees: DIC has more than 20,000 worldwide.

Operating Facilities: Sun Chemical has 176 subsidiaries across 63 countries.

Comments: It was an active year for Sun Chemical, as the company reported a solid year in 2017, with sales holding steady.  Meanwhile, Sun Chemical is under new leadership in North America, and made some interesting acquisitions in key niche markets.

On the leadership front, Chris Parrilli took over as president of Sun Chemical North American Inks from Charles Murray in January 2018. Parrilli has been with Sun Chemical for 38 years and has been a corporate VP for 20 years, running the packaging, publication and industrial divisions at different times. Most recently, Parrilli was heading the packaging business. He noted that the company achieved its objectives for 2017.

“There are markets that continue to decline, but we maintained our market share, or picked up business in the case of commercial printing,” Parrilli said. “We certainly saw the impact of higher raw material costs, as we were unable to move prices up as fast as we would have liked.

“I like where we are positioned in terms of providing value,” he added. “We grew faster than the growth of the market in packaging. We saw really solid growth in 2017 in packaging, even though consolidation is fast and furious among the major packaging converters.”

Sun Chemical and its parent company, DIC Corporation, made a few acquisitions during the past year, picking up technology-rich companies.

In August 2017, they added Joules Angstrom U.V. Printing Inks Corp., a leading manufacturer of UV printing inks in the commercial, packaging and specialty markets. In November, they acquired the proprietary technology of a display solution now called SunMotion from Transitions Digital Graphics, LLC, a leader in creating changeable advertising signage and displays that utilize invisible ink.

In January 2018, Sun Chemical and DIC Corporation, acquired C.T.LAY S.R.L., a specialist in pre-patched holograms, pre-laid overlay plates and lamination plates with security elements, and added Luminescence Holdings Ltd., which makes currency, tax stamp, passports, ID cards, secure documents and brand protection inks, in February 2018.

In particular, Parrilli noted that the addition of Joules Angstrom will boost both companies’ UV offerings.

“Joules Angstrom has great UV technology, and the company has been very successful in the market,” Parrilli said. “Everything we heard about Joules Angstrom from the market was true. They are a very entrepreneurial team, and with the addition, we now have even stronger UV technical capabilities.”

The company has also been active on the R&D front. In one noteworthy addition, Sun Chemical introduced SunBeam Advance EB offset inks and SunCure Advance UV inks for primary and secondary food packaging. The company said that these new inks are compliant with the strictest global standards in the marketplace, including Nestlé food packaging requirements and the Swiss Ordinance.

Higher raw material prices, coupled with supply tightness and stricter environmental regulations among some suppliers, impacted the ink industry during the past year. In particular, titanium dioxide, pigments, feedstocks, carbon black, oils, monomers and solvents have been among those essential ingredients affected, and 2018 is expected to bring more of the same.

In the last few months, Sun Chemical increased prices on offset inks, coatings and consumables worldwide, as well as liquid inks and coatings for flexible packaging globally.

“There were increases we pushed through due to the concerns over titanium dioxide,” Parrilli observed. “Pigments out of China are under regulatory constraints. As we came to the end of 2017, we announced price increases across our entire portfolio. These are all efforts to catch up from the dynamics of the past 18 months, plus more escalating costs we anticipate coming.”

Parrilli sees opportunities ahead for Sun Chemical.

“Heatset is relatively stable, and you still see quite a bit of interest there,” he reported. “Coldset’s drop has been precipitous, and I don’t see that discontinuing. For Sun Chemical, it is about packaging and other channels to market. I think digital will have a bigger role to play in the next 10 years, as consumers will have a more targeted approach to what they are buying. We continue to grow our knowledge and expertise in packaging. Our large packaging customers are looking at how to improve their top and bottom line and are looking at how they can grow. The industrial side is an opportunity for new markets, and it is very exciting.

“In the coming year, I believe markets will be relatively stable, and we are looking for growth above the market level,” Parrilli added. “We want to drive value in what we are providing our customers. Unfortunately, we also expect raw material prices to continue to escalate, and that’s a challenge we’ll have to continue to monitor throughout the year.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks; label and narrow web inks; toner; inkjet materials; adhesives for packaging; overprint varnishes; specialty coatings; effect inks; flexographic printing plates; digital artwork file management; color software and brand color management; security inks and coatings; organic colorants for inks, plastics, paints, coatings and cosmetics; liquid compounds for printed circuits, printed electronics, solar modules, and digital inkjet printing; solid compounds for automotive components and glossy interiors as well as industrial, construction and other electrical components; adhesives for commercial and industrial electronics; magnetic tapes for plastic cards; and degasification modules for inkjet printing.

Number of Employees: DIC has more than 20,000 worldwide.

Operating Facilities: Sun Chemical has 176 subsidiaries across 63 countries.

Comments: The ink industry is seeing some growth, but there are areas such as coatings and printing markets outside of traditional fields such as publication and packaging that are expanding faster.

For Charles Murray, president of Sun Chemical North American Inks, the ability to formulate innovative new products for these growth areas is essential.

“We are not just an ink company,” Murray said. “We manage fluids. Our new product development is yielding benefits, and we continue to grow and develop in other areas outside of packaging and publication.

“The past year was a good year for Sun Chemical,” Murray added. “There was softness in some markets like publication, and that will only continue in that direction. On the packaging side, we developed into some new areas. Our growth in packaging and new business more than offsets the decline in publication, and we are always looking toward bolt-on acquisitions that bring benefits such as new technologies.”

For Sun Chemical, these new technologies – including pigments, conductive inks, inkjet inks, in-mold electronics, coatings and more – are spurring new revenues and markets.

“We are enjoying growth in our Performance Pigment, Advanced Materials and industrial businesses,” said Murray. “In pigments, we are growing in specialty pigments, metallics, automotive, architectural coatings and particularly in cosmetics. In Advanced Materials, printed electronics has yet to show significant growth in terms of dollars, but it is like when the Internet emerged.

There’s a whole push for intelligence and connectivity. Even in your home, appliances will eventually be connected to your smart phones and devices. The technology of tomorrow is exciting.

“In the industrial market, in-mold electronics are seeing a huge interest from manufacturers of white goods and automotive,” he added. “We have produced in-mold printed circuits for automotive roof controls, and it is one-tenth of the cost of the regular assembly. In coatings, we continue to develop opportunities in areas where we can’t sell inks. These technologies start to move across divisions in our organizations.”

In a major acquisition, Sun Chemical acquired the European publication gravure business from Flint Group. Murray noted that the continued decline in the publication gravure market makes consolidation a necessity.

“In publication gravure, we are seeing an 8% to 12% decline in the printing market,” Murray said. “Publishers and printers are consolidating. In a declining industry, if there isn’t consolidation, the decline will occur much quicker. There just isn’t a market for a large number of players. There’s a lot of merger and acquisition activity and consolidation throughout the supply chain, and while it is a necessary and good thing, my concern is whether it will stifle innovation.”

Sun Chemical is adding to its stable of new technologies for packaging inks, beginning with SunUno Solimax, with some innovative projects nearing their debuts.

SunUno Solimax provides high bond strength, is designed for use on numerous substrates and can be used for lamination or surface printing.

“In terms of highlights, in packaging we developed SunUno Solimax, a new range of inks that can be used for lamination or surface printing,” Murray said. “From the printer’s point of view, there is no need to carry two ranges of inks. For lightweighting, we continue to push the packaging industry with our SunBar oxygen barrier coatings.”

Murray is particularly excited about SunScreen, a new system that provides printers real time information while on press.

“We are currently working with major partners on SunScreen, a bespoke technology in which an ink or coating running on press can recognize in real time if it is being printed at the right place and right weight,” he said. “We developed this in our novel device lab in Carlstadt, NJ. With SunScreen, our printers know with confidence they are printing at the right weight and in the right place. No longer will a printer have to reach the end of the roll to see if there is wasted copy.”

Printers, brand owners and consumers alike are concerned about sustainability, and Sun Chemical has developed new liquid inks with high renewable content.

“One area of interest to our customers is environmental packaging, and we are working closely with our customers’ organizations to drive improvements in the areas of renewability, recyclability and sustainability,” said Murray. “We have just developed a range of liquid inks with a very high renewable content, made with natural products. Our renewable inks will be available across our liquid ink platform for a range of technologies.”

The evolution of the packaging market continues, and Murray sees opportunities for Sun Chemical to capitalize on its R&D acumen.

“At the end of the day, I see packaging continuing to evolve,” Murray observed. “Products will move from one form of packaging to another, and we can do things with packaging that could never have been achieved five years ago. For example, we are still waiting for the move to retort packaging in North America that has occurred in Asia and Europe. It is a proven technology, and there is an expectation that it will become widespread when it does become widely accepted in North America.

“The opportunities in the market will always be there,” Murray concluded. “My biggest concern is maintaining our ability to be reactive and responsive to the needs for change. We can never be content. I have a very positive outlook for the next 12 months.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks; label and narrow web inks; toner; inkjet materials; adhesives for packaging; overprint varnishes; specialty coatings; effect inks; flexographic printing plates; digital artwork file management; color software and brand color management; security inks and coatings; organic colorants for inks, plastics, paints, coatings and cosmetics; liquid compounds for printed circuits, printed electronics, solar modules, and digital inkjet printing; solid compounds for automotive components and glossy interiors as well as industrial, construction and other electrical components; adhesives for commercial and industrial electronics; magnetic tapes for plastic cards; and degasification modules for inkjet printing.

Number of Employees: DIC has more than 20,000 worldwide.

Operating Facilities: Sun Chemical has 176 subsidiaries across 63 countries.

Comments: Sun Chemical, a subsidiary of DIC Corporation, is the global leader in printing inks and coatings. The company is constantly creating opportunities in new markets, with an eye on providing its customers with a comprehensive range of products and services, from inks and coatings to organic pigments, flexo plates, packaging design, software and more.

“We did very well in 2015,” said Charles Murray, president, North American Inks for Sun Chemical. “We are striving to grow our packaging business and coatings, and we have developed the widest range of products in our portfolio. We are seeing continuing declines in the publication, commercial and news ink markets. Still, we remain committed to the heatset, news and commercial sheetfed markets.”

In an important acquisition, Sun Chemical entered into a definitive agreement to acquire certain assets and liabilities of Colmar Inks Corporation, an Ontario, Canada-based specialist in inks for paper packaging and corrugated printing. The deal, which is expected to close during the first quarter in 2016, allows Sun Chemical to expand its liquid ink operations in Canada.

“We are always looking for good bolt-on acquisitions where we can acquire good technologies and strong portfolios of products,” Murray added.

In June, Sun Chemical purchased the remaining shares of its South Eastern Europe region JV companies held by the Druckfarben Hellas Group. The initial JV was formed in 2012, and now has annual sales of more than $30 million.

On the pigment side, Sun Chemical announced in June that it will invest $10 million to expand production of its Benda-Lutz metallic effect pigments by more than 40 percent.

In another significant move, Sun Chemical launched its Novel Device Lab, which Murray noted is helping printers become more productive.

“There is a huge amount of interest in the work being done by the Novel Device Lab. Inks and coatings are becoming more advanced all the time, and more technologically advanced equipment is also required now to provide measurements on characteristics such as coating weight and opacity,” Murray noted. “Through our Novel Device Lab, we are developing new equipment to achieve this for our customers.

“For example, packaging requires that the coefficient of friction be specifically controlled,” he added. “The coatings are clear, and presses are running at 2,000 feet per minute. It is hard for the press operator to tell if the coating is at the right thickness. We have developed an invisible taggant for our coatings that can be read by readers at real time press speeds across the entire width of the web.”

Areas such as inkjet, printed electronics, automotive, architectural and industrial coatings are increasingly strong opportunities, and Sun Chemical and DIC are well positioned in these growth areas. Sun Chemical formed its new Advanced Materials Division, allowing DIC and Sun Chemical to expand its product portfolio.

“The Advanced Materials Division allows us to move into new markets that we were never in before,” Murray added. “For example, we were not in plastic cards 18 months ago, and now we are doing well there. We have developed UV offset inks, coatings and specialty features for this business, and plastic cards are a particularly attractive area for conductive inks. It is a good fit, as DIC is the largest supplier of magnetic tapes for plastic cards.”

Inkjet and printed electronics are two of the areas that the Advanced Materials Division is developing.

“Someone said recently that if it is printed today, it will go digital at some point,” Murray noted. “To meet the needs of new markets, Sun Chemical has added SunTex digital textile inks and digital ceramic printing ink to our portfolio. Printed electronics is in its infancy, and every day, new opportunities emerge.”

Murray said that the changing regulatory environment requires companies that can work with the entire supply chain.

“Sun Chemical has a very strong regulatory capability,” he said. “We work with printers and brand owners on regulatory issues. We are global, and we want to be ready for every new regulation going forward, ensuring that we are manufacturing products ahead of the regulatory beat. This is a challenge and an opportunity, as our competitors can’t provide this level of knowledge and experience. It builds trust among the CPGs that someone can offer this level of expertise.”

Like all ink manufacturers, Sun Chemical is paying close attention to raw materials costs.

“Crude oil prices have a lot less impact on our business,” said Murray. “Our raw material prices are still significantly above 2011 levels. Many of our materials are organic and are not impacted by the price of oil, and feedstocks are more impacted by availability than by the cost of crude oil. For raw materials, 2015 was more stable, and I suspect that 2016 will see more stability.”

Currency fluctuations are another area of concern for ink companies. Murray used the Canadian dollar as an example of the challenges that ink companies are facing.

“We do what we can. In terms of currency, the Canadian dollar has been particularly painful, as it is less than 75 cents compared to the US dollar,” he said. “It is a tough situation. The Brazilian real and the Russian ruble are also volatile.”

Murray said he is an optimist by nature, adding that the ink and coatings market offers many possibilities.

“I always remain optimistic,” Murray added. “The reality is that there is no shortage of opportunities in this industry. The packaging industry continues to evolve, and we are constantly developing new markets, whether it is in plastic cards, vinyl flooring, printed electronics inkjet, coatings or many others. I see no end to these opportunities.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, label and narrow web inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, flexographic printing plates, digital artwork file management, color software and brand color management, printed electronics, security inks and coatings, and organic colorants for inks, plastics, paints, coatings and cosmetics.

Number of Employees: More than 8,000 worldwide.

Operating Facilities: Sun Chemical has 250 locations in more than 56 countries.

Comments: Sun Chemical had a strong year in 2014, with the company developing new markets and making gains in the packaging segment. With Sun Chemical’s new emphasis on providing an end-to-end solution for its customers, the company is finding new opportunities for growth.

“Overall, Sun Chemical had a very good 2014 in North America,” said Charles Murray, president of Sun Chemical North American Inks. “While there were ongoing declines in the publications and commercial sheetfed areas, we are seeing solid growth in the packaging markets. We have had growth in all the sectors of packaging including narrow web tag and label, flexible packaging and folding carton as well as seeing growth in our plates and coatings businesses in the U.S. and Canada. This continues to be a primary focus.”

Sun Chemical is looking to be more than just an ink-only company, but rather as a specialist in fluid management, helping customers throughout the printing process.

“Our business is fluid management,” Murray said. “We’re not just an ink company any more. When you look at it like that, the opportunity in the marketplace is enormous and varied.

“We are looking to grow different areas,” Murray added. “We are investing to support growth in packaging, adding new facilities and developing new technologies that are not just inks. We offer flexo plates, specialty and functional coatings. We can design packaging and manipulate the design for all printing processes. Our strategy is to be an end-to-end partner with our customer, but not just with the supply of consumables.”

The Virtual Inplant program is one area where Sun Chemical is working with printers to more efficiently use its materials. With the Virtual Inplant, Sun Chemical has created a way for printers to consistently monitor their fountain solutions to tight specifications to cut down on variables, complications and waste. Real-time digital reports are provided to monitor pH balance, temperature, flow rate and conductivity.

“Our Virtual Implant manages press chemistry, and is receiving huge interest from offset printers,” Murray said. “Reducing cost through waste reduction is a priority in this competitive market.”

Sun Chemical is enjoying growth in its packaging ink business, and the ability to move into other segments is also proving promising. “Our packaging ink business is now a significant part of our revenue, but we don’t want to just be a packaging ink company,” Murray said. “Fluid management allows us to go into other areas.”

One such area is industrial applications, covering a wide range of niche products.

“Our new Industrial Applications Division offers new areas for us, from automotive and white goods applications to vinyl flooring, printed effects on furniture and plastic cards,” Murray said. “DIC is the world’s largest manufacture of magnetic tape for plastic cards. We can add the ink effects, overt and covert security features and provide technologies such as RFID antennas.”

“There are also other areas of the printing industry that are growing,” Murray added. “There is increasing interest in areas such as printed electronics and specialty packaging. The packaging market overall is growing at around 1% – 2%, and there are emerging areas that are providing new opportunities. Digital printing continues to be an area of growth, and one that Sun Chemical continues to expand its presence in globally.”

On the inkjet side, Sun Chemical has also been active. The company entered the aftermarket in North America with its Streamline wide format inks for POP and vehicle and building wraps. Murray noted that Sun Chemical added a customer demonstration facility in Northlake, IL, and has plans to launch textile inks in the coming year.

Regulatory concerns over areas such as food packaging are becoming more commonplace throughout the printing and ink industries, and Sun Chemical is developing solutions for their customers.

“Regulatory issues will always be a part of our business,” Murray noted.

“When you look at formulating products, there are substances that were commonplace five years ago and can’t be used today,” Murray observed. “There are more regulations today, and we have the resources to meet these mandates. We developed Ultra Low Migration inks to meet stricter standards in areas that legislation and brand owners demand.”

Murray noted that the raw material situation has largely stabilized at a high price level, and added that the reduction in the price of crude oil doesn’t necessarily translate to all areas of ink manufacturing.

“The raw material situation in 2014 was more stable that has been in the past, yet costs remain at a higher level for some of the key raw materials,” Murray said. “We never returned to prior levels. There are still areas of volatility that affect our manufacturing – areas such as some resins and solvents have seen inflation.”

Murray added that Sun Chemical’s outlook for 2015 and beyond continues to be optimistic.

“The marketplace is never without challenge,” he said. “Our customers challenge us to provide better products, higher levels of service and lower costs. Our competitors challenge us on various fronts. The raw materials situation and our suppliers challenge us – but that is what keeps us getting better and better as an organization. We are very well positioned to exceed our customers’ expectations. We have a great team in place, we provide a great product and world-class service so we look forward to meeting challenges in the upcoming years.

“We’ve created a business with no shortage of opportunities,” Murray concluded. “We’re on the right track; 2013 and 2014 were good years, and we want to grow in 2015 and beyond. These are exciting times for us.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, label and narrow web inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, flexographic printing plates, digital artwork file management, color software and brand color management, printed electronics, security inks and coatings, and organic colorants for inks, plastics, paints, coatings and cosmetics.

Number of Employees: More than 8,000 worldwide.

Operating Facilities: Sun Chemical has more than 300 manufacturing and service locations worldwide and more than 200 customer in-plant locations in the U.S. alone.

Comments: Sun Chemical had a strong year in sales in 2013, as its emphasis on growth markets such as packaging is paying dividends.

“We saw our plans and strategies for packaging take shape and yield benefits,” said Charles Murray, president, North American Inks for Sun Chemical. “We had strong growth in all sectors of packaging, including narrow web, flexible packaging and folding carton, and significant growth also in our Sun Graphics Division and our coatings operations as well.”

Murray said that Sun Chemical’s success in packaging is due to ongoing efforts in providing innovative products, value-added services and consistent quality to their customers.

“Our strategy is designed to position us for the future, as we are investing in R&D efforts to keep up with our customers’ needs, whether it is faster presses or food packaging regulations becoming more stringent,” Murray added. “We work directly with many global brand owners and CPG companies to meet their needs going forward, as regulations such as the Swiss Ordinance are not limited to North America. We are growing in narrow web, where we are developing unique products. We offer dispenser capabilities for mid-sized converters for narrow web, UV offset and UV flexo, and have added water-based inks as well. We also have other initiatives that provide an all-encompassing value proposition, such as our virtual implant JV, which helps offset printers ensure the ink chemistry remains consistent on press.”

The publication and commercial printing industry is continuing to suffer declines, which is impacting ink manufacturers, including Sun Chemical.

“Our growth in packaging was tempered by continued declines in the publication area, heatset news and commercial sheetfed, which is continuing year to year,” Murray noted. “We need to continue to right size our operations. We closed two of our publication ink operations on the West Coast, as we can’t continue with that level of cost in a declining market. However, we are still committed to the publications market and continue to support our customer base.

“We still wrestle with matters outside of our control,” Murray added. “Currency fluctuations, such as the decline of the Canadian dollar and Brazilian real, become a bit of a roller coaster. Some of our customers pulled out of Canada when the Canadian dollar reached parity with the U.S. dollar, but now the Canadian dollar has declined again.”

Outside of packaging, Sun Chemical has staked out leading positions in a number of growth areas, including its Graphic Arts business, where it provides one-stop service for its customers. The company invested $5 million into its new 25,00 square foot plant in Concord, CA, including an Esko HD CDI laser imager, a MacDermid LUX laminator and DuPont’s DigiFlow/DigiCorr systems as well as the ESKO Digital Flexo Suite (DFS) pin mounting system. The company also upgraded its operations in Maumee, OH.

“Our Graphic Arts business is doing well,” Murray said. “It’s not just about ink anymore. Our new plant in Concord, CA helps customers from the design concept to platemaking, and we also have a similar operation in Maumee, OH.”

Inkjet is another strong area of growth for Sun Chemical.

Printed electronics is a developing market, and Sun Chemical’s long-standing relationships with brand owners and consumer packaging goods (CPGs) companies is leading to opportunities in this field.

“Brand owners and CPGs have a huge amount of interest in the security and promotional aspects, as this technology provides opportunities to grow sales through customer interaction,” Murray noted. “But it is still in its infancy, and because of our partnerships with brand owners, we are in the forefront of this field. We have a wide portfolio and the scale of manufacturing, and our outlook is very favorable in both the short and long term.”

Sun Chemical had numerous highlights of note this past year, most notably in Latin America. The company welcomed Fernando Tavara as its president of Sun Chemical Latin America. Tavara, who was most recently vice president of sales at Sun Chemical Latin America, is responsible for all of Sun Chemical’s Central and South American and Caribbean ink business. He replaces Gregory Lawson, who retired at the end of 2013.

In January 2014, Sun Chemical Group Coöperatief UA purchased the remaining shares held by Inversiones Mundial (Grupo Mundial) in their Colombian joint venture companies Tintas SA and Sinclair SA.

With annual sales of more than $100 million, the Tintas/Sinclair Group sells inks and related graphic arts products primarily to the packaging market in the Andean region of Latin America, covering Colombia, Ecuador, Peru and Venezuela.

In addition, Sun Chemical Performance Pigments opened its new state-of-the-art pigment dispersions manufacturing facility and on-site technical service labs in Rio de Janeiro, Brazil, in August 2013.

Murray said that Sun Chemical has improved its raw material position, particularly with the 2012 addition of Benda-Lutz Werke GmbH, a leading manufacturer of metallic effect products based in Austria, as Sun Chemical can now internalize its vacuum metallized pigment supply. However, there remains concern with other key ink ingredients.

“In 2013, we saw a higher level of stability in raw materials, although it still sits at higher prices,” Murray said. “We are not seeing the high spikes as we did before, but we are also not seeing reductions either. There are still challenges such as TiO2, but high stocks in the supply chain have helped to keep prices stable. Oil always has a bearing on us, as we can’t switch from one type to another. We are keeping a close watch on TiO2 as well as feedstocks for pigments, where we are seeing prices escalate, and the volatility of gum rosin is always a concern.”

Overall, Murray said Sun Chemical is looking ahead to further overall growth in 2014.

“For 2014, we are continuing to strengthen our core businesses, growing in packaging while anticipating a further decline in publication,” Murray concluded. “We want our growth to outpace the general GDP. We are looking confidently to 2014 and beyond as our plans are bearing fruit.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, label and narrow web inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, flexographic printing plates, digital artwork file management, color software and brand color management, printed electronics, security inks and coatings, and organic colorants for inks, plastics, paints, coatings and cosmetics.

Number of Employees: More than 8,000 worldwide.

Operating Facilities: Sun Chemical has more than 300 manufacturing and service locations worldwide and more than 200 customer in-plant locations in the U.S. alone.

Comments: Sun Chemical had a comparable year to 2011, as the company continued to recover volume in all of its sectors, but the company continues to face the same challenges as it moves ahead.

In particular, Charles Murray, president, North American Inks for Sun Chemical, noted that the publication and commercial sheetfed markets continue to struggle, adding that the shift in the publications market has been drastic. “Sales in this market have not recovered to pre-recession levels and we don’t expect that they will,” Mr. Murray said.

By contrast, Mr. Murray reported that Sun Chemical enjoyed moderate growth in 2012, led by flexible packaging, and the company is working with brand owners and major packaging groups to provide solutions for specialized packaging. He added that Sun Chemical will continue to see growth in the flexible packaging segment, particularly in value-added packaging, as the market moves toward functional and sensory packaging. He believes that further growth will come from the narrow web, tag, and label businesses, as well as the folding carton segment.

To meet the needs of their customers, Sun Chemical is investing in manufacturing, processes and products, despite the challenging economy.

In July, Sun Chemical Performance Pigments acquired Benda-Lutz Werke GmbH, a leading manufacturer of metallic effect products based in Austria. The acquisition allows Sun Chemical to purchase 100% of the shares, assets and business from Benda-Lutz and would expand its product portfolio in metallic effects. With the acquisition, Sun Chemical adds production facilities in Austria, Poland, Russia and the U.S. to accompany its aluminum pigment manufacturing site in China, forming the basis of a new global Metallics Business Unit as part of Sun Chemical’s Performance Pigments Division.

The company also opened two major new facilities. In June, Sun Chemical reinforced its commitment to customers in Montreal and the Province of Quebec with the opening of its new 50,000 square foot state-of-the-art ink manufacturing plant in Laval, a $3.1 million (CAD) investment designed to provide stronger customer service, improve efficiency and reduce costs.

The new facility consolidates four manufacturing plants located in Ottawa, Quebec City and two buildings located in the Montreal suburbs of Boucherville and Anjou.

Also in 2012, Sun Chemical invested $9.1 million to build a brand new printing ink manufacturing plant in San Bernardo, Chile, a suburb of Santiago. Primarily a manufacturer of packaging inks, the facility is expected to produce 10,500 tons of inks annually that serve its principal domestic customers as well as other locations across South America, including Brazil and Argentina.

Sun Chemical received numerous honors this year. In September, Sun Chemical’s UK and Ireland Customer Service Center, based in Trafford Park, was awarded the 2012 Customer Service Excellence Award by the British Printing Industries Federation (BPIF). The BPIF awards are intended to reward and showcase the most innovative and creative companies across the print media spectrum and are recognized as the benchmark for business acumen in the print sector.

Other honors went to Edward Pruitt, Sun Chemical’s chief procurement officer, as the “2012 Man of the Year” by the Metro New York Printing Ink Association. Moe Rahmeh, a technical manager for Sun Chemical in the Dallas/Fort Worth region, received the 2012 National Association of Print Ink Manufacturers (NAPIM) Printing Ink Pioneer Award, which honors longevity and service in the print industry, committee work, technical contributions and service to associations.

In terms of raw materials, Mr. Pruitt noted that while Sun Chemical has not experienced this year the widespread shortages and allocations that plagued the industry two years ago, the raw material supply chain is a continuing concern to Sun Chemical.

“A sharp uptick in demand from the emerging markets or developed economies could quickly put products like titanium dioxide, nitrocellulose, carbon black and some pigments in very tight inventory positions,” Mr. Pruitt said. “We also need to be mindful of the potential impact of global weather conditions on such raw materials as gum rosin, ethanol and vegetable oils.

“In general, at Sun Chemical we see a continuation of the current moderation trend in the raw materials market this year,” Mr. Pruitt added. “This outlook is based on the assumption that the tepid economic performance that is being seen in North America, Europe and in Asia will continue for the last quarter of this year. The great wild card here is the price of oil, which has regained strength. If prices do not retrench, it will start to drive the cost of oil and petrochemical derivatives upward.”

Sun Chemical launched a number of new products this year. In July, Sun Chemical was awarded an InterTech Technology Award, one of the highest honors in the printing industry, for its SunPak LMQ (low migration quality) products. Awarded annually by the Printing Industries of America, the InterTech Award recognizes the development of unique and innovative technologies that are predicted to have a significant impact on the graphic arts and related industries.

Sun Chemical’s SunPak LMQ products help address the risk brand owners face in packaging, where compounds from materials in the packaging structure can migrate into the food product or the surrounding environment. SunPak LMQ inks exhibit very low odor, off-flavor and migration levels, and offer a comprehensive solution to brand owners and converters who are looking for ways to address migration concerns for food, pharmaceutical and tobacco applications.

Sun Chemical retired its SmartColour brand from the marketplace and transferred all current customer licenses to the new PantoneLIVE eco-system from X-Rite/Pantone. PantoneLIVE licensees can take advantage of Sun Chemical’s intellectual property in the field of digital color communication.

In July, Sun Chemical launched the SunUno Solimax multi-purpose ink system. Suitable for both surface and reverse print applications on a number of the commonly used flexible packaging substrates, Solimax will maximize print run efficiency while simplifying overall print production. It is suitable for both flexo and gravure printing. In September, Sun Chemical launched SunLit Crystal, an “all-in-one” universal sheetfed offset process ink set.

SunJet, the inkjet ink division of Sun Chemical, launched its JetStream PCO Oil-based HD Black ink for Seiko Instruments Inc. printheads. The JetStream PCO HD Black has been developed with high performance pigment and drop spread control technology to meet the needs for high contrast and high definition printing demanded in applications such as bar coding, stock identification and decoration.

During Labelexpo Americas 2012, SunJet also launched EtiJet LM UV, its new low migration UV curing ink range for the digital label market, suitable for all types of piezo printheads. All of the ink components appear on the European positive lists, Swiss Ordinance and EuPIA, and the inks do not use materials specifically excluded in the Nestle list, meaning the inks meet the highest industry standards for food packaging.

In July, Sun Chemical launched Streamline ESL HPQ and Streamline Ultima HPQ, designed for use in wide and super-wide format printers using high-quality solvent-based inks.

During Labelexpo Americas 2012, Sun Chemical featured its Solaris System, a complete line of inks and coatings designed to meet all the printing needs of all narrow web and packaging printers. The full range includes products for virtually all narrow web applications from self-adhesive and in-mold labels to wrap arounds, shrink sleeves, tubes and food and pharmaceutical packaging.

At SuperCorr, Sun Chemical showcased its SunVisto Advantage line of water-based inks. Specifically developed to be pH stable for corrugated printers who want a consistent press run without monitoring or adjusting pH levels, the inks offer consistent color strength, longer press runs without maintenance and reduced plate washing during a press run. Also at SuperCorr were SunVisto Hydroking PHS water-based inks.

At INFO*FLEX 2012, Sun Chemical highlighted SunSpectro Sunsharp solvent-based inks. Developed for high-speed, wide web flexo presses for bread bags and frozen food packaging, SunSpectro Sunsharp inks are high gloss, resistant to water, fats and oils, and formulated for low odor and low viscosity for enhanced color strength. Developed for flexographic printing on polyethylene film, SunSpectro Sunsharp HR solvent-based inks provide moderate heat resistance of up to 350 degrees, maintain excellent gloss and are suitable for printing on items such as plastic bags, shampoo bottles and milk containers.

Sun Chemical highlighted its anti-counterfeiting solutions to help brand owners ensure the integrity of their packaging. Sun Chemical offers a variety of security ink solutions including an infrared coding solution called Verigard, a security system that adds a small quantity of taggants, or chemical markers, to inks, varnishes or coatings for use in any print process on any substrate.

In October, Sun Chemical demonstrated its Vitrocure UV curing ink from the SunVetro range at Glasstec 2012 in Dusseldorf. The SunVetro range of inks prints bright and strong colors that would be difficult to achieve with inorganic inks.

During the SNEC 2012 PV Power Expo and the European Photovoltaic Solar Energy Conference and Exhibition, the Sun Chemical Electronic Materials division showed how photovoltaic manufacturers can save money by taking advantage of Sun Chemical’s unique one-stop shop offering, including a broad range of metallization solutions for both additive and subtractive processes as well as module materials for use in the crystalline silicon (c-Si), thin film, printed electronics, and other emerging markets.

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, label and narrow web inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, flexographic printing plates, digital artwork file management, color software and brand color management, printed electronics, security inks and coatings, and organic colorants for inks, plastics, paints, coatings and cosmetics.

Number of Employees: More than 8,000 worldwide.

Operating Facilities: Sun Chemical has more than 300 manufacturing and service locations worldwide and more than 200 customer in-plant locations in the U.S. alone.

Comments: The printing industry witnessed many of the same trends in 2011 as in previous years: the publication and commercial side suffered declines, while packaging and digital enjoyed growth. For Sun Chemical, 2011 saw similar growth and declines in these markets.

“Overall, Sun Chemical had a comparable year to 2010 in that it continued to recover volume in all sectors,” said Charles Murray, president, North American Inks, Sun Chemical. “However, many of the same challenges that Sun Chemical and our industry in general faced in 2010 continued to persist in 2011 and early 2012.”

Mr. Murray noted that the publication and commercial sheetfed markets have struggled in recent years.

“The commercial sheetfed market continues to struggle as companies cut back on their marketing collateral and other printing needs,” Mr. Murray said. “The publication printing market, including newspapers worldwide, struggled considerably in 2011. In both of these cases, the movement to Internet and other electronic alternatives as well as consolidation have been the key drivers for the continued downturn. The market shift in the publications market has been drastic. Sales in this market have not recovered to pre-recession levels and we don’t expect that they will.”

Mr. Murray said that Sun Chemical has seen moderate growth in the packaging market, and he expects to see similar growth in 2012.

“Sun Chemical will continue to see growth in the flexible packaging segment, specifically value-added packaging, as the trend in the market continues to move towards functional and sensory packaging,” Mr. Murray noted. “The packaging market faces different challenges than other market segments, such as migration in Europe, and the push toward smaller package size, recyclability and other efforts to reduce the impact of packaging on the environment, but these challenges are great opportunities for growth at Sun Chemical. We’re working with brand owners and major packaging groups to provide them with solutions for specialized packaging of the future.

“Source reduction, a smaller number of packaging layers, along with a decrease in packaging size, continue to be ways consumer packaged goods companies are looking for support in their sustainability efforts,” Mr. Murray added. “Additionally, biodegradable and recyclable flexible packaging materials are currently being favored by some retailers and brand owners. Sun Chemical anticipates further growth opportunities from these key areas as companies position themselves as being ‘green.’ Additional growth will come from the narrow web, tag, and label printing segment as well as the folding carton segment.

“Our customers are relying on Sun Chemical to maintain an intense focus on value and cost, and we’re doing this by making significant investments in manufacturing capabilities and products, despite the difficult economic times,” Mr. Murray said. “We see these updates to our manufacturing capabilities as an investment in our customers. It is another way to live up to our goals and promise as a company to provide our customers with quality, service and innovation. We will continue to raise our focus on the customer by helping them grow their businesses and succeed. That means working for our customers everyday as a partner.”

Felipe Mellado, Sun Chemical’s chief marketing officer, said Sun Chemical had a number of notable highlights during the past year.

“In today’s challenging economy, our customers need a partner who can help them find ways to reduce costs; a partner that understands the challenges they are facing and provides solutions,” Mr. Mellado said. “This is what we are striving to accomplish at Sun Chemical, and the past year is replete with examples of how Sun Chemical is partnering with customers.”

For the seventh consecutive year, the Brazilian Association of Graphic Arts (ABIGRAF) named Sun Chemical the “Best Printing Ink Supplier” in Brazil at the Fernando Pini Awards ceremony.

In February 2012, Sun Chemical released its 2011 sustainability report, which expands on its established data-driven metrics by showcasing how the company’s leadership in sustainability is helping customers adapt and be more eco-efficient.

The 2011 sustainability report cites specific examples of how Sun Chemical’s products, services and projects are helping customers improve their environmental impact. For example, the report highlights Sun Chemical’s leadership role in low migration technology.

Other products and services mentioned in the report that have helped customers become more eco-efficient include SunGraphics SunLite In-Position Printing Plates for corrugated carton printers; the Sun Chemical Dispenser Program for the commercial and label, narrow web market; the SunMag Synergy ink/fount emulsion system for publication printers; and SunClean/SunWash cleaner and wash technology for heatset printers.

All three sustainability reports, along with the “Carbon Footprint Report 2010,” which outlines the results from nine independent environmental analyses focused on quantifying the carbon footprint of its product lines, are available to customers and can be requested online at www.sunchemical.com/company/sustainability.

Together with Sun Branding Solutions, its packaging brand lifecycle management agency, and its parent company DIC Corporation, Sun Chemical gave visitors at Interpack 2011 first-hand insight into its packaging print solutions that allow brands to stand out in terms of sensory appeal and functional performance, as well as compliance.

Sun Chemical demonstrated its ability to support all parts of the packaging development workflow from pack design concept through to press, conversion and brand launch.

Sun Chemical’s special effects portfolio as well as its latest range of lamination adhesives and low migration ink and coating solutions for the food packaging industry were all introduced to brand owners at the show, as was Sun Chemical’s Best Practice Guide to Food Packaging Printing.

At BrasilPlast 2011, Sun Chemical introduced a new range of ink and coating solutions for South American flexo and gravure converters, which can be used on a variety of plastic substrates to provide sustainability, brand differentiation, low migration solutions, lightweighting and variable data printing on packaging.

Among the products introduced at the show were ECHO water-based flexo inks, for use primarily on high- and low-density polyethylene or plastic grocery bags; SunInspire, a broad portfolio of high-impact special effects for every packaging substrate and print technology on the market today; SunBar Oxygen Barrier Coatings, which are designed to replace or enhance current oxygen barrier technologies used with a variety of flexible packaging films; and SunLase, an advanced color-change ink designed for inline patch printing and then subsequent marking with laser technology.

Originally designed for commercial and folding carton printers, the Sun Chemical Dispenser Program, which helps customers decrease their overall ink spend by up to 45 percent, expanded to serve customers in the narrow web tag and label market. It allows printers to mix only the inks they need, reduce their inventory and waste, improve color-matching consistency, and significantly decrease total operating costs.

In December 2011, the Sun Chemical Dispenser Program won a bronze medal in the category of the most environmentally progressive printing technology at the first annual Canadian Printing Awards held during the Graphics Canada trade show. To date, selected customers in Canada that participated in the Sun Chemical Dispenser Program have seen their spot color ink inventories reduce by approximately 20 percent.

In September 2011, Sun Chemical launched SunLit Titan, a new sheetfed ink system. SunLit Titan is a very high speed, fast drying ink range, which will allow printers to accelerate and optimize their workflow at two stages of the process. One-sided printed sheets dry within minutes, which allows almost immediate turnover for reverse print.

The Titan-effect is enabled by the introduction of innovative patented raw materials leading to an ultra fast setting as well as fast and thorough oxidative drying. Printers can also benefit from the fact that the application of a water-based coating is not required. The new range can be successfully applied across a variety of substrates. It is best suited for use in small to medium print runs.

Sun Chemical launched a number of new narrow web ink solutions at Labelexpo Europe 2011. SolarFlex Lightning White is a brand new ultra high opacity UV flexo white for maximum hiding power, and it works equally well with high volume channeled and standard aniloxes.

SolarFlex Nova SL is a low odor ink system based solely on Nestlé’s “positive-list” of photoinitiators and features excellent UV flexo performance properties, which allows quick make-ready and efficient printing. SunCure Starluxe is a UV offset product range designed to provide the highest print quality to labels and packaging. The series has been proven to offer reliable and robust press performance on a range of papers, plastics and metallized substrates at the highest print quality. The SolarScreen Colours range has been upgraded for higher speed rotary screen printing without loss of definition for increased productivity.

Raw material costs and supply issues continued to be concerns in 2011, and while there was some headway made on some key raw materials, there are likely to be challenges ahead in 2012.

“In 2011, we saw a continuation of many of the same raw materials supply issues and cost pressures that featured prominently in 2010,” said Ed Pruitt, Sun Chemical’s chief procurement officer. “Rosin, solvents (particularly in Europe), acrylics, energy cure resins, carbon black, titanium dioxide, nitrocellulose, phthalocyanine pigments and Violet 23 pigments all faced at various times tight to short supply, during 2011. The drivers for these supply issues and cost pressures were the same factors we wrestled with in 2010, i.e., increased demand from developing markets, feedstock issues, supply limitations, and environmental and regulatory constraints in India and China.

“As we look ahead to 2012, we expect to see continuing improvement in the availability of many raw materials, but we also expect to see volatility and continuing pressure from oil and petrochemical-derived products, titanium dioxide and other commodities exposed to global supply/demand swings,” Mr. Pruitt added.

Mr. Mellado anticipates further challenges ahead for printers, and said that Sun Chemical is always ready to partner with its customers.

“Whether it is costs, sustainability requirements or compliance issues, the challenges our customers are facing are more challenging than ever and we don’t expect that to stop in 2012 and beyond,” Mr. Mellado said. “These challenges our customers have faced have required a change in the way they do business. We recognize these challenges at Sun Chemical, and we’re transforming with the industry by doing our part to help customers thrive in this dynamic business environment by providing a comprehensive and consistent offering of world-class products and services, delivering consistently on our promises with strong technical and customer service and offering breakthroughs in ink technology that will ultimately save our customers money.”

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, label and narrow web inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, color software and brand color management, printed electronics, security inks and coatings, and organic colorants for inks, plastics, paints, coatings and cosmetics.

Number of Employees: More than 9,500 worldwide.

Operating Facilities: Sun Chemical has more than 300 manufacturing and service locations worldwide and more than 200 customer in-plant locations in the U.S. alone.

Comments: For the ink industry, 2010 was a year marked by two key trends. On the sales side, for the most part, the printing industry had a slight comeback during 2010 compared to 2009 levels. However, higher raw material costs and supply issues created major challenges.

Charles Murray, president, North American Inks, Sun Chemical, said that the improvement in most printing markets was good news for the company. “It seemed like the economy enjoyed somewhat of a recovery last year,” Mr. Murray said. “Overall, Sun Chemical has recovered volume in all sectors compared to 2009. That being said, 2010 presented tremendous challenges for Sun Chemical and for our industry in general.”

In 2010, Sun Chemical named Mr. Murray president of North American Inks, a role which gives him responsibility over all of Sun Chemical’s North American ink business. Mr. Murray brings 27 years of industry experience and knowledge to the position, and most recently worked as the managing director and corporate vice president of Sun Chemical’s business in the UK, Ireland and Nordic markets since 2004. For at least five consecutive years, Mr. Murray has appeared as one of Print Week’s “Power 100,” a list of the most powerful people in print in the UK. He ranked #33 on the list in 2010.

“The commercial sheetfed market continues to struggle as companies show their reluctance to increase their spend on marketing collateral and other printing needs,” Mr. Murray noted. “The publication printing market, including newspapers, worldwide struggled considerably in 2010. In both of these cases, the effect of the general economic downturn has been exacerbated by a movement to online advertising and publishing and other electronic alternatives, as well as consolidation. The market shift in the publications market has been drastic and has not recovered to pre-recession levels, and we don’t expect that they will.”

On the other hand, Mr. Murray noted that the packaging side is enjoying growth.

“In the packaging market, we have seen some growth in 2010, although it was very moderate and tempered by the economic recession, and we expect to see similar moderate growth in 2011,” he noted. “The packaging market faces different challenges than other market segments, such as the drive towards low migration inks in Europe, and the push toward smaller package size, recyclability and other efforts to reduce the impact of packaging on the environment, but these challenges are great opportunities for growth at Sun Chemical. We’re working with brand owners and major packaging groups to provide them with solutions for their packaging needs of the future.

“In all cases and markets, our customers are relying on Sun Chemical to maintain an intense focus on value and cost,” Mr. Murray added. “We will continue to raise our focus on the customer by helping them grow their businesses and succeed. That means working for our customers everyday as a partner to further improve our performance on the essentials of our business such as quality, service and innovation in ways that drive productivity or enhance value.”

In particular, flexible packaging is proving to be a successful opportunity for Sun Chemical.

“Sun Chemical will continue to see growth in the flexible packaging segment, specifically value-added packaging, as the trend in the market continues to move towards functional and sensory packaging,” said Michelle Hearn, director of marketing, North American Inks. “Source reduction, a smaller number of packaging layers, along with a decrease in packaging size, continue to be ways consumer packaged goods companies are looking for support in their sustainability efforts. Additionally, biodegradable and recyclable flexible packaging materials are currently being favored by some retailers and brand owners. Sun Chemical anticipates further growth opportunities from these key areas as companies position themselves as being ‘green.’ Additional growth comes from the narrow web, tag, and label printing.”

Raw material costs and supply issues have become an increasing concern for ink manufacturers. Edward Pruitt, chief procurement officer for Sun Chemical, said that 2010 was an extraordinary year in terms of raw material challenges.

“Arguably, the chemical industry has not seen a year of similar supply shortages and tightness in over two decades,” Mr. Pruitt said. “Among the many products under varying degrees of pressure, we would highlight rosin resin, specialty pigments, energy cure resins, acrylic resins, titanium dioxide, nitrocellulose and some additive resins.”

Mr. Pruitt said that the factors driving these supply issues fall largely into three areas.

“First, we have seen our suppliers experience a large number of unexpected feedstock issues,” he explained. “An example would be the global shortage of acrylic acid for energy cure and acrylic resin producers. The second factor would be a surge in demand that occurred largely in the first and second quarter as businesses refilled their pipelines and addressed sharply higher demand from the developing regions. The third factor would be the general tautness in supply that resulted from the many cost and working capital actions taken by the chemical industry last year during the height of the recession.”

Sun Chemical is relying on its pipeline of new products and services to help its customers move forward in these difficult times.

“In today’s challenging economy, our customers need a partner who can help them find ways to reduce costs; a partner that understands the challenges they are facing and provides solutions,” said Felipe Mellado, chief marketing officer. “This is what we are striving to accomplish at Sun Chemical, and 2010 is replete with examples of how Sun Chemical is partnering with customers. In today’s ‘green’ environment, our customers and the marketplace are looking for much more than the standard sustainability rhetoric. They want to know what their suppliers are doing to improve their sustainability performance and we responded with very specific metrics.”

In December 2009, Sun Chemical released its first sustainability report, which provides data-driven performance measurement for seven key sustainability metrics to help customers and consumers understand the company’s environmental impact. Sun Chemical issued a similar report in November 2010, the “Carbon Footprint Report 2010,” which outlines the results from nine independent environmental analyses focused on quantifying the carbon footprint of its product lines.

The analyses focused on greenhouse gas (GHG) emissions associated with the product manufacturing and distribution phases, or the “gate-to-customer gate” lifecycle of Sun Chemical’s products. The analyses covered six of the Sun Chemical product lines, totaling nine products representing approximately 90 percent of the products it offers.

The company also recently released its 2010 Sustainability Report, updating its environmental performance.

“Through a defined road map, our sustainability policy pushes us as a company to improve the eco-efficiency of our processes and products,” said Michel Vanhems, sustainability leader, Sun Chemical. “This sustainability report not only provides our key sustainability metrics for 2010, it also gives numerous examples of Sun Chemical sites across the globe that reduced their environmental footprint or improved employee safety. These significant achievements motivate us to further strengthen our program while maintaining our customer-centric focus.”

At FESPA in Munich, Germany, Sun Chemical unveiled new global brand names to describe its screen inks for promotional, digital and industrial printing. The global brand names – SunPromo for indoor and display materials, SunCure for UV offset inks for display and commercial printing, Streamline for digital inkjet inks for display graphics, SunDisc for screen and offset inks for optical disks, SunCarte for screen and offset inks for plastic cards, SunHytek for screen inks for plastic components and in-mold decoration, SunVetro for screen inks for decorative and container glass, SunPoly for screen inks for plastic containers, and SunPad for pad printing inks – were developed to help sheetfed customers better recognize the Sun Chemical brand and easily identify the inks they need.

Additionally at FESPA, Sun Chemical introduced SunPromo Universal inks, a versatile multi-purpose UV curing screen ink system that can be successfully applied across a wide range of substrates, offering standardization to match offset print collateral. Since promotional campaigns often involve printing similar graphics on a range of different materials, SunPromo Universal screen inks are especially designed for printing indoor and short-term outdoor displays, offering a single ink system that enables brands to match the color and appearance between the different substrates.

Sun Chemical also launched SunHytek CXX inks at FESPA, a uniquely developed range of formable inks for 3D appliqués. The CXX ink series is the first to be specifically formulated for 3D automotive fascias. With consistent formability, the inks can withstand the necessary elongation.

At Labelexpo Americas 2010 in September, Sun Chemical announced its partnership with EskoArtwork was extended to further integrate access to the Sun Chemical SmartColour database in a workflow where EskoArtwork pre-production tools and GMG proofing solutions are combined. This collaboration among three industry leaders offers a deeper, more integrated end-to-end color workflow in the label and packaging industries. SmartColour, a database of real ink-on-substrate color results, including leading brand-owner color specifications, saves time and money by eliminating the need to fingerprint spot colors on production presses in order to obtain accurate color results on proof.

At Graph Expo 2010 in October, commercial printers learned how to decrease their overall ink spend by up to 46 percent by participating in the Sun Chemical Dispenser Program. Designed for commercial printers to manage what has typically resulted in an overabundance of spot color inventory and to reduce the possibility of having the wrong spot color, the Sun Chemical Dispenser Program can decrease a printer’s overall ink spend by up to 35 percent when blending the inks in-house and up to 46 percent if blended inks are purchased.

“At Sun Chemical, we recognized that many printers frequently end up with more spot color inks than they need that just sit on their shelves,” Mr. Mellado said. “So we offered an answer that not only allows printers to mix the exact amount of spot color they need, but saves them a significant amount of money and ensures the right spot color is mixed.”

Sun Chemical displayed its commitment to the food package printing market through the grand opening of its new state-of-the-art manufacturing plant in Frankfurt, Germany in March.

The plant was built using clean room and HACCP directives to ensure that the best possible standards are adopted in manufacturing of Sun Chemical inks. Representing a significant investment, the new facility is dedicated to the highest level of cleanliness and utilizes the world’s most advanced technology to create high-quality sheetfed packaging inks.

Overall, Mr. Mellado said he expects that 2011 will be a challenging year for Sun Chemical and the ink industry as a whole.

“The cost of raw materials will be a major part of the challenge this industry will face,” Mr. Mellado said. “Although Sun Chemical has taken steps to better meet the needs of its customers and offset these costs, we cannot control the factors facing the raw material printing ink market supply chain.

“Sun Chemical wants to continue being known as the company that is truly a partner with its customers. To be able to achieve this, our customers have to know that we are here to help them with their problems,” Mr. Mellado added. “We’re optimistic that Sun Chemical’s investments in quality, service and innovation will help our customers succeed. In the current challenging market conditions, our solutions are designed to help customers operate more efficiently without sacrificing quality or service to their customers.”