An Improved, Common Sense Approach to Sleeve-Style Paperboard Packaging

SmartBlank™

On-Site “Side Seam” Gluing

SmartBlank™ On-Site “Side Seam” Gluing

SmartBlank™ On-Site “Side Seam” Gluing

Side Seam Gluing Malnove SmartBlank™

“Technology Summary Narrative”

Technology Presentation

Technical Specification Sheet

SmartBlank™ On-Site “Side Seam” Gluing

On-line side seam gluing is not new!!! It has been in place and has been routinely and consistently used by many companies for many years. Why??? It’s simple. It saves money!!! The companies who do it, don’t do it for fun and frolic. They do it because it provides “repeatable and sustainable” savings.

SmartBlank™ On-Site “Side Seam” Gluing

SmartBlank™ On-Site “Side Seam” Gluing

If we are saying this is a good idea, and all the above very bright people have in effect said the same thing, then why doesn’t everyone in the industry exercise this advantage?

Simple…there was never a machine design that made sense from the standpoint of size/footprint nor was it affordable. Side Seam Gluing Equipment in use by the aforementioned companies is converting equipment and not packaging equipment.

The equipment in use is massive, and can easily run 90,000/hr. and can run shadow boxes to sleeve style pizza cartons (fairly irrelevant). What we have installed and are offering is a “packaging machine attachment”. This offers a significant distinction and one that the consumer products companies can indeed use.

SmartBlank™ On-Site “Side Seam” Gluing

Malnove has compiled a list of supply chain cost components that prove the savings others have enjoyed for years. The savings are “repeatable and sustainable”. Even if Malnove only enjoys a portion of the business, the customer enjoys the savings across all cartons that run over the equipment.

Malnove has driven the design of the equipment, so it is extremely compact and extraordinarily economical. We have (2) domestic suppliers and (1) offshore supplier.

Malnove has (5) successful installations and orders for (3) more at the present time.

Malnove has the expertise to survey each setting, and then recommend the best layout solution.

SmartBlank™ On-Site “Side Seam” Gluing

Malnove has the staff to install, train operator’s on proper operation and carry spare parts and service such installations as a matter of our long-standing practice to service what we sell. We guarantee it!

Malnove has the expertise to provide the customer with the metrics related to all savings, including “the guaranteed increase in productivity”. This is important. The savings is often 2 to 3 times the savings we can pass along related to conversion, packing and freight and material handling alone.

Our customer’s and prospect’s Engineering and Operations associates (who are exposed to this idea for the first time) may not ask, but surely will question how the equipment interface to the cartoner works. We have a short video of a side seam gluer operating at 550 cartons per minute feeding an existing Bartelt CM cartoner. Pay particular attention to the simple “chimney” where the carton transfer takes place.

What Can Malnove SSG Offer?

Significant, Recurring ROI Simplified Plant Logistics Improved Packaging Machine Reliability,

Operating Consistency and Productivity Better Worker Conditions

Fully Automated Cartoning Has Only Been Around for About 60 Years. 1st Twenty Years were dominated primarily by flat cartons or pre-glued,

hand set-up cartons. Last 40 years have been predominantly end-load applications.

– It’s estimated that today approximately 70% of total folding carton tonnage is dedicated to sleeve style.

Why? Evolution to simplify end-user’s operation.– Established mindset prior to availability of current technology. (e.g.

Advanced Gluing Systems, PLC controls, Photo-Optics, etc.)

Why?Pros and Cons – Top-Load

Advantages - Flat Blanks– No pre-gluing costs– Ship flat on pallet

Higher Shipment Density, No Shipping Cases, Reduced Freight

– Easier to Load through the “Largest Panel/Largest Opening“ when required by inconsistently-shaped or malleable products (although at slower speeds)

Disadvantages – – Even though Top Load cartons

have the Flat Blank advantage, they’re not as economical as sleeve styles when it comes to material usage.

– Top Load operations require turning the cartons to seal a 3rd panel, after product has been loaded. This limits speeds, increases individual machine components and makes the operation more complex.

SmartBlank™ Material Economy

SmartBlankSmartBlank™™ = “The Best of Both Worlds”Flat Blanks AND Board Economy.

Pros and Cons – End-Load

– Disadvantages – Standard End Load cartons

require the additional cost of gluing, off-site, and loose case loading for shipping (=added cost and volumes).

Additional volume necessitates added shipping & handling costs and storage expense. Creates susceptibility to aging, warpage, and inconsistent handling.

– Advantages – Consumes less paperboard. Can be handled on a single

unified packaging system, typically at significantly higher speeds than top-load.

Facilitates simplified automatic loading, or insertion, of pre-contained or controllable products.

Product Loading

Simple “Slide-In” Loadingvs.

“Over the Wall” or “Drop-In” Loading.

Simple Integrated Operation,Higher Speeds

Independent Pick-and-Place,Constrained Speeds,

Higher Machine Costs

Everything’s Changed

SmartBlank™ offers the all the operational benefits of FRESH sleeve-style cartons With the Economy of Flat Blanks

On New or Existing Cartoners

SmartBlank™ Carton Cost Savings

Equivalent SmartBlank Flat Blanks Typically cost 5% - 10% Less from the Converter.

Due to:– Elimination of Gluing Operation and Glue– No Need for Special Collating– Reduced or Eliminated Casing Costs– Reduced Pallet Count and Prep Time

SmartBlank™ Freight Reduction

Usually a 25 – 40% reduction in pallet count with the implementation of SmartBlank technology.

Flat Cartons can be stacked right on the pallet, without as many (or any) cases.

Consider the long-term, compounding and measurable economic benefits of our SmartBlank™ technology.

10%+ Total Supply Chain Savings 25 - 40% Reduction in Freight Costs 25 - 40% Reduction in Pallets and Related

Warehouse Storage Space 90% Reduction in Material Handling and Labor

Required to Load Material on the Packaging Line 15% Expected Packaging Productivity Gain Projected ROI of Less Than 18 Months

Other Savings?

Downtime and Lost Production due to Inconsistent Handling of Variously Aged Cartons

Maintenance Personnel Demands Worker Injuries (Insurance Considerations) Manufacturer’s Field Service Calls Environmental Issues - Less Waste (Corrugated/Dunage)

It’s Not All About Speed; It’s All About Productivity and Uptime…

Efficiency Reliability Run-Time Hi-Speed Straight-Line Gluers are Converting Systems, and are

Over-Kill (too fast, over-sized and over-priced for the purpose)

SmartBlank™ is a “Packaging System-Based Solution”

Speed – Cartons per Minute

Lin

es

in

Op

era

tio

n100 Cartons per Minute

50 100 150 200 250 300 350

SmartBlank™ – The System.

SmartBlank™ System Specifications

Simplified Universal Cartoner “Attachment” Extremely Compact Footprint “Waist-Level” Operation and Loading High Capacity Flat Blank Magazine Wide Size Range with Instant Adjustability

– 5” x 5” to 30” x 30” Blank Sizes– .010 - .036 pt. paperboard

Integrated Pressurized Hot-Melt System with pattern controller

Servo-Driven Blank Feeder Speeds to 400 CPM

SmartBlank™ System Options

- Bar Code Reading

- Vision Systems

- Defect Detection and Removal

- EAS Tag Application

- Security Label Application

- Overt and Covert Anti-Counterfeiting

- Item Level RFID Tag Application

- ATIP HP, Markem Smartlase, Flint Xaar Ink Jet Printing for SKU Reduction

- Touch Screen Controls and MMI

SmartBlank™ System Layout

SmartBlank™Side Seam Gluer WithRight AngleTransfer

Continuous Motion Horizontal Cartoner

Rule of Thumb to Calculate the Required System Operating Speed

T-A-M-I-A-M-A-YT-A-M-I-A-M-A-Y Ten-A-Minute-Is-A-Million-A-Year 100 Cartons per Minute, Single Shift = 10,000,000 Cartons/Year

Easy Implementation

If you’re already running pre-glued sleeves, there’s no need to change carton style, features or printing materials.

The Carton is Exactly the Same, without the pre-gluing. The only change is to the packing and palletizing specifications.

Smart Blank Testimonials

“Malnove has developed a great concept with their Smart Blank platform. It allows you to bring cartons into your plant in the flat. This allows you to not only fold the carton inline with cartoning, but also apply EAS source tags and potentially print variable data on the carton. It is also is fully scalable to item level RFID integration.”

Jim Colby, Global Packaging Manager, Hewlett Packard

“The primary reason we have been a long-term supporter of Malnove, is their commitment to joint process improvement. They are always willing to work with us to reduce our supply chain costs. The new Smart Blank gluer is a great example of how you can truly partner with a supplier to reduce costs. We also have seen significant productivity gains after we installed this system.”

Mark Kronenwetter Engineering Manager, Osram Sylvania Division of Siemens.

“McKee Foods three Swiss Cake Rolls lines each have their own Malnove Side Seam Gluer. These three lines are our most efficient, lowest cost lines in the entire company.”

Don Hudson, Mechanical Engineer, Corporate Engineering Packaging Group, McKee Foods

Malnove Packaging and Packaging Solutions

10500 Canada Drive

Jacksonville, Florida 32218

770-466-8882

800-874-3974

904-696-1649 Fax

email: Smart.Blank@malnove.com

www.malnove.com