Is in-mold labeling in your cards?

Customers want the superior aesthetics of IML on a wider range of products. But processors ask who will pay for the technology and whether there's enough demand to justify its purchase.

After coming into nearly universal use on wheel-type blow molding machines for making high-volume consumer products, in-mold labeling (IML) is now expanding into the realm of shuttle machines used for small- to medium-volume applications. Consequently, IML is being considered for the first time by a much larger number of custom bottle makers.

This change comes in response to demand from makers of personal-care products and household cleaners. These customers like the superior aesthetics and durability of in-mold film labels vs. post-mold paper labels.

"IML started with large bottles and has moved down in size. It has been an evolution in the market," says Bob Myers, v.p. and technical director at Owens-Brockway Plastics Products in Perrysburg, Ohio. Owens-Brockway started out using IML on wheel machines but now uses shuttles to make IML bottles as small as 8 oz.

For the shuttle blow molder, the question is whether the demand for IML justifies the investment of $50,000 to $200,000 in new labeling equipment and whether enough customers will pay for the higher tool costs, longer molding cycles, and possibly higher scrap rates associated with IML.

Processors may be willing to share part of those extra IML costs with customers in order to attract new business. Possible benefits for the processor include the potential for faster order turnaround for "just-in-time" purchasers. The added costs of IML may also be partially offset by eliminating the labor and processing costs for secondary labeling or silk-screen printing operations performed either in-house or at a job-shop labeling/decorating plant.

Custom bottle maker McKechnie Plastic Packaging (formerly Charter Supply Co.) in Philmont, N.Y., spent $75,000 to modify five dual-sided Bekum shuttle machines for IML capability. "We want to get involved in the new technology and we are making an investment with the thought that the customers will be there," says president Kenneth Janowitz.

The customers are definitely there, according to Mark Juhasz, eastern regional manager at Captive Plastics in Piscataway, N.J. "Our biggest customers want us to have IML capability as an option to bottle decoration. Some customers say they want us to have IML for possible future applications; some say they want it right now."

Note that IML in the United States today is used mostly in extrusion blow molding of HDPE bottles. There may be a few cases of IML in injection-blow and stretch-blow molding of PP and PET. R&D is also under way for PVC.

CUSTOMERS LIKE IT

IML has several inherent benefits. One is that the bottle is molded around the label and encapsulates the label edges, providing a smooth, seamless surface. Some sources refer to this as a "no-label" look similar to screen printing. Transparent plastic labels are much more common than paper in IML, though they are at least 50% more expensive.

They give a glossier appearance and better simulate the effect of printing. What's more, in-mold plastic labels use a heat-activated adhesive that bonds more permanently to the plastic bottle. The result is that in-mold film labels do not peel, curl, or blister like paper labels on shampoo bottles and other personal-care products that are subject to heat and moisture exposure.

In addition, IML offers the processor greater flexibility and manufacturing efficiency than other decorating methods, notes Terry White, procurement specialist at Helene Curtis in Chicago. In-mold labels can have up to 10 colors, while screen printing is generally limited to six.

"We have a definite plan to use in-mold labeling on more products," says White, whose company already labels its 15-oz Vibrance shampoo bottle in-mold. Besides the cosmetic and functional appeal, it allows Helene Curtis to differentiate itself from the competition. In-mold labeling makes for a cleaner looking package." White adds that his company finds IML cost-competitive with other decorating/labeling processes.

John Filiberti, purchasing agent at Benckiser Consumer Products Inc. in Danbury, Conn., sees a productivity advantage from IML Benckiser now has bottles for three lines of products - about 25% of its total - labeled in-mold, vs. none three years ago. Previously, its bottles were custom blow molded and labeled on the filling line. "We had a number of products coming up for redesign and we chose in-mold labeling to improve the efficiency and aesthetics of the packaging," Filiberti says. "We now get a prelabeled bottle into our plant directly from the bottle maker, which saves a processing step, so we can run more bottles through our filling lines." Benckiser uses IML on a range of bottle sizes for its Ultra Cling-Free fabric softener, Lime-A-Way toilet bowl cleaner, and Scrub Free One bathroom cleaner. Filiberti says IML packages are a little more expensive than other labeling methods, but it's worth the cost to get a better-looking bottle with faster filling-line speeds.

"The IML system gives you a more consistent and better-looking package. No one wants a bottle with labeling that is placed incorrectly or with bubbling and puckering. IML has a very high percentage of registration correctness." Filiberti has seen over 98% correct label registration with the IML, vs. a much lower percentage with post-mold pressure-sensitive labels.

EQUIPMENT HAS IMPROVED

Earlier limitations of IML equipment no doubt helped retard the spread of this technology. Early in-mold labeling machines didn't hold onto the labels securely and broke down frequently. Tom Ballay, president of IML equipment supplier Autotec Inc., says the hardware reliability has improved and prices have dropped about 15% in recent years.

Setting up and maintaining IML systems has become easier with the development of blow molding machines that are better adapted to mounting the labeling hardware. For example, Battenfeld Blowmolding is attempting to acquaint the U.S. market with the merits of long-stroke machines, which have more room available for mounting IML equipment than more commonly used swing-arm shuttle machines (see PT, May '94, p. 64). According to Battenfeld, newer long-stroke European models can carry enough cavities in a single mold to match the productivity of double-sided swing-arm machines with half as many cavities per mold. Battenfeld recently began offering long-stroke models from Hesta (Stahl Blasformtechnik GrabH) and from Willi Muller KG.

Krupp Kautex also recently introduced its long-stroke KBS-1 family to the U.S. And a novel type of long-stroke machine made its debut last year from Graham Engineering. The Techne Graham Model 6000 Twin has dual mold damps side by side on a single carriage. The machine also has a built-in IML station as a standard feature, which provides ample room for easy access.

Meanwhile, Bekum America has had considerable success with IML on its H-Series and BM-704 swing-arm machines (PT, Aug. '94, p. 45).

IMPACT ON CYCLE TIMES

IML caught on first with users of wheel machines for two good reasons. One is that these machines' high-volume applications could readily amortize the cost of IML equipment and molds. The second reason is that molds on wheel machines have "dead time" or idle positions during the wheel's revolution where a label-insertion device could be added without a significant loss in cycle time.

But even wheel users report some cycle-time penalty with IML. Frank Gonzalez, v.p. of manufacturing and engineering at Liquid Container L.P. in Chicago, says his firm's wheel machines must be slowed down a little to accommodate label insertion. "Approximately 50% of the bottles we produce on our wheel machines are in-mold labeled, and our biggest penalty is a 10-15% slowdown in production," Gonzalez says.

But the inherently lower productivity era shuttle machine makes cycle times even more critical. "An extra second or so per cycle is an eternity to the custom blow molder," says a spokesman for the Plastics Machinery Div. of Johnson Controls.

Ballay of Autotec says cycle times can be affected by IML in two ways: the mechanical delay and the process delay. The mechanical delay relates to the speed at which the robot arm or insertion device can place the label in the mold and then retract from the mold area. The process delay results from the additional time required to cool the areas of the bottle that are covered by the label and thus do not come in direct contact with the mold. "The room-temperature label comes into contact with the hot parison, and the label becomes an insulator," explains Bekum regional sales manager Terrence Crossley.

On the other hand, some processors say the in-mold plastic label can increase the top-lead strength of the bottle so that the bottle wall in the label region can be downgauged and thereby require less time to cool. Hubert Misera, president of Blow Molding Technologies, an IML equipment maker, says that depending on the geometry of the label, one can reduce the bottle weight in the label area and double the label weight. Misera says that due to the insulating effect of the label, cooling time can increase by 1 to 2.5 sec with IML if the bottle weight isn't downgauged.

Most makers of IML systems say shuttle blow molding machines experience cycle-time penalties of 0.8 to 1.5 sec. Most processors say a delay of about 1.5 sec or a 10-20% loss in overall productivity can be expected with IML on shuttle machines. The amount of loss depends on the number of cavities and on label and bottle geometry.

Dane Belden, president of Battenfeld Blowmolding, says today's IML equipment is designed to "overlap certain periods of the molding cycle so that labeling occurs concurrently rather than sequentially." The IML system Battenfeld offers on Muller machines reportedly adds nothing to cycle times.

Ballay of Autotec also claims that his company's IML system places the label into the mold in sync with the molds' movement as it shuttles into position under the head, so there is "no mechanical delay." He adds, "But there is a process delay of 1 to 1.5 sec taken up by additional cooling."

Bob McElhany, v.p. of manufacturing technical development at bottle maker Travomatic Corp. in Blue Springs, Mo., says a customized Autotec system on the company's proprietary Travex shuttle machine adds no cycle time to his blow molding process. "We don't lose even a part of a second," McElhany says.

OTHER ADDED COSTS

Molds for IML require vacuum ports to be drilled into the cavity in order to hold labels in place. "The upcharge for IML is about 5% the cost of the mold," according to John Fortenbach, sales manager at toolmaker Heise Industries. That figure is confirmed by E. Dieter Wunderlich, v.p. of FGH Systems, Inc., which also builds and modifies blow molds for IML.

Besides the cost of in-mold label feeders and magazines, preparing a machine for IML can cost up to $75,000, depending on whether IML is part of a new machine or a retrofit.

Another incidental cost of IML can be higher scrap rates. McKechnie Plastics' Janowitz claims that IML can generate more than the 1-2% scrap typical of silk screening, heat-transfer decals, or pressure-sensitive labeling.

Despite all these cost factors, many processors say the cost of IML is fairly competitive with pressure-sensitive labels, heat-transfer decals, and some types of silk screening.

IML AIDS RECYCLING

When switching to IML, bottle makers prefer polyolefin film labels to paper because the label can be recycled and reground into the scrap stream. On the other hand, paper labels must be separated by one of two costly options: Cut out the label area of the bottle wall or soak the paper off in a chemical bath.

However, bottles reground whole with their film labels most probably will have to be relegated to the middle layer of a three-layer coextrusion. That's why molders advise that an IML system should be set up so that any labels dropped by the handling device do not get mingled with the bottle trim scrap.

WHAT VOLUME IS REQUIRED?

Custom blow molders say IML equipment is competitive in price with post-mold labeling/decorating systems, but they won't buy it if there isn't enough demand for the equipment to operate continuously.

Gonzalez of Liquid Container says mold and label tooling changes take longer with IML, which can result in more machine downtime with short production runs. Silgan Plastics, which is highly experienced with IML, says it can run the process economically on orders as low as 250,000 units. But most processors say they require orders of 2 million to 8 million units/yr to make IML practical.

Currently, all of the demand for IML comes from the customers that have proprietary or "special" molds, the bottle makers say. Custom blow molders say IML is not economical for bottles made from "stock" molds. They use stock molds to produce unlabeled bottles, which they inventory until any of a number of customers orders them, at which time they are decorated. Custom blow molders refuse to inventory labeled bottles, because they could get stuck with them if the customer wants to change the design of his label or doesn't want them right away.

RELATED ARTICLE: COSTS OF AN IML SYSTEM

Here's what you can expect to spend to set up a new dual-sided shuttle blow molding machine with an in-mold labeling system for eight mold cavities. (Estimates by FGH Systems.)

Capital Investment

* Two transfer systems

* Four label magazines

* Two placer heads

* Controls

* Installation (by OEM)

Total = $175,000

IML Operating Costs (with Straight-Line Depreciation):

* 6000 hr/yr for 5 yr $5.80/hr

* Interest (@ 10%) 0.58

* Utilities (electricity + air) 0.25

* Additional mold venting (8 cavities-$2000) 0.07

* Maintenance (mold vents + IML system) 1.00

Total = $7.70/hr

Production Rates:

* 15-sec cycle without IML = 1920 bottles/hr

* 16.5-sec cycle with IML = 1745 bottles/hr

Production Costs:

* Without IML $75.00/hr

* With IML $75.00 + $7.70 = $82.70/hr

Production Costs/1000 Bottles:

* Without IML $39.00

* With IML $47.39

Difference = $8.39/1000 bottles Cost Increase = 21.5%

Note: This comparison is for IML vs. an unlabeled bottle. The costs of post-mold labeling must also be considered.

RELATED ARTICLE: Who Supplied IML Systems?

IML requires a label-storage magazine and a robotic device to pick labels from the magazines and place them in the molds (which must be equipped with vacuum ports). Most systems are air-driven, though some have electric serve motors.

There are two main independent suppliers of IML equipment in North America - Autotec and Blowmoulding Technologies - whose labelers can work with many types of shuttle machines.

Bekum, which has the most IML-equipped shuttle machines in North America, works with Autotec and Avery Dennison. Bekum says about 50% of the shuttle machines it sells in the U.S. now come with IML.

Several blow molding machine builders offer proprietary IML systems. These include Johnson Controls, Graham Engineering, Tahara Machinery, Automa, Magic North America, and Krupp Kautex. Battenfeld offers a servo-actuated IML system for its Muller machines. For its B&W machines, FGH Systems offers a German-built labeler or IML systems from Autotec and Blowmoulding Technologies.

RELATED ARTICLE: FOR MORE DETAILS ON ITEMS IN THE ARTICLE, USE READERS' SERVICE CARD

Automa S.p.A., Columbus, Ohio Autotec Inc., Sylvania, Ohio Battenfeld Blowmolding Machines Inc., Boonton. N.J., Bekum America Corp., Williamston, Mich. Blowmoulding Technologies Inc., Mississauga, Ont. FGH Systems Inc., Denville, N.J. Graham Engineering Corp., York, Pa., Heise Industries Inc., East Berlin, Conn. Johnson Controls Inc., Manchester, Mich. Krupp Kautex, Edison, N.J. Magic N. America, Markham, Ont. Tahara Machinery, distrib. by Kanematsu USA Inc., Arlington Heights, Ill.,

IML Label Sources:

Alvin Press, N.Y.C. Avery Dennison, Cincinnati CCL Label, Sioux Falls, S.D. Engraph Label Group, Coldspring, Ky. Epsen Hillmer Graphics, Omaha, Neb. J.W. Fergusson & Sons, Richmond, Va., Master Graphics, N.Y.C. Multi-Color Corp., Cincinnati Owens-Illinois Labels Inc., Bardstown, Ky. Quality Assured Label Inc., Hopkins, Minn. Seneca Printing and Label Inc., Franklin, Pa. Steinhauser Inc., Newport, Ky.