EPA-600/R-95-01 Id
December 1995
SOLVENT-BASED TO WATERBASED ADHESIVE-COATED SUBSTRATE
RETROFIT - VOLUME IV: FILM AND LABEL MANUFACTURING CASE STUDY:
FLEXCON COMPANY, INCORPORATED
By:
Beth W. McMinn
W. Scott Snow
Dan T. Bowman
TRC Environmental Corporation
6340 Quadrangle Drive, Suite 200
Chapel Hill, North Carolina 27514
EPA Contract No. 68-D2-0181
Work Assignment No, 2/017
EPA Project Officer: Chester A. Vogel
Air Pollution Prevention and Control Division
Research Triangle Park, North Carolina 27711
Prepared for:
U.S. Environmental Protection Agency
Office of Research and Development
Washington, DC 20460
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TECHNICAL REPORT DATA ,
(Please read Instructions on the reverse before completing ||| |||]]|||||
mil ii mi mi
T. REPORT NO. 2.
EPA- 600 /R- 95-0lld
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5-180468
4. TITLE AND SUBTITLE
Solvent-Based to Waterbased Adhesive-Coated Sub-
strate Retrofit, Volume IV: Film and Label Manufac-
t uring Case Study: Flexcon Company Incorporated
5. REPORT DATE
December 1995
6. PERFORMING ORGANIZATION CODE
?. AUTHOR{S)
Beth W. McMinn, W. Scott Snow, and Dan T. Bowman
8. PERFORMING ORGANIZATION REPORT NO,
9. PERFORMING ORGANIZATION NAME AND ADDRESS
TRC Environmental Corporation
6340 Quadrangle Drive, Suite 200
Chapel Hill, North Carolina 27514
10. PROGRAM ELEMENT NO.
11. CONTRACT/GRANT NO.
68-D2-0181, Task 2/017
12.SPONSORING AGENCY NAME AND ADDRESS
EPA, Office of Research and Development
Air Pollution Prevention and Control Division
Research Triangle Park, NC 27711
13. TYPE OF REPORT AND PERIOD COVERED
Final; 11/92-6/93
14. SPONSORING AGENCY CODE
EPA/600/13
^UoPooMr7ENTAr^u NOTES APP^D ProJ'ect officer is Chester A. Vogel, Mail Drop 61, 919/
D4i-
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FOREWORD
The U. S. Environmental Protection Agency is charged by Congress with pro-
tecting the Nation's land, air, and water resources. Under a mandate of national
environmental laws, the Agency strives to formulate and implement actions lead-
ing to a compatible balance between human activities and the ability of natural
systems to support and nurture life. To meet this mandate, EPA's research
program is providing data and technical support for solving environmental pro-
blems today and building e science knowledge base necessary to manage our eco-
logical resources wisely, understand how pollutants affect our health, and pre-
vent or reduce environmental risks in the future.
The National Risk Management Research Laboratory is the Agency's center for
investigation of technological and management approaches for reducing risks
from threats to human health and the environment. The focus of the Laboratory's
research program is on methods for the prevention and control of pollution to air,
land, water, and subsurface resources; protection of water quality in public water
systems; remediation of contaminated sites and groundwater; and prevention and
control of indoor air pollution. The goal of this research effort is to catalyze
development and implementation of innovative, cost-effective environmental
technologies; develop scientific and engineering information needed by EPA to
support regulatory and policy decisions; and provide technical support and infor-
mation transfer to ensure effective implementation of environmental regulations
and strategies.
This publication has been produced as part of the Laboratory's strategic long-
term research plan. It is published and made available by EPA's Office of Re-
search and Development to assist the user community and to link researchers
with their clients.
E. Timothy Oppelt, Director
National Risk Management Research Laboratory
EPA REVIEW NOTICE
This report has been peer and administratively reviewed by the U.S. Environmental
Protection Agency, and approved for publication. Mention of trade names or
commercial products does not constitute endorsement or recommendation for use.
This document is available to the public through the National Technical Information
Service, Springfield, Virginia 22161.
ii
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ABSTRACT
FLEXcon Company Incorporated (FLEXcon), a pressure-sensitive adhesive (PSA)
coater, was selected for a site visit to collect information on the pollution prevention
opportunities and barriers associated with waterbased adhesives. The purpose of the visit to
FLEXcon was to gather information on its product manufacturing processes and to identify and
discuss, with input from the plant personnel, any opportunities for preventing emissions related
to the use of solvents and solvent-based adhesives. Specific objectives of the trip were to collect
information necessary to characterize FLEXcon's market profile, plant layout, manufacturing
supplies, manufacturing process profile, environmental issues, and waterbased adhesive coating
experience, as well as the limitations of water-based adhesive coatings and opportunities for
waterbased adhesives at FLEXcon. This case study includes six chapters. Chapter 2 includes
the market profile and overall plant description. Chapter 4 discusses environmental issues
associated with process conversion. Chapter 5 describes FLEXcon's waterbased adhesive
formulation experience. Finally, Chapter 6 identifies the opportunities for future use of waterbased
and other adhesives at FLEXcon.
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TABLE OF CONTENTS
Chapter Page
Abstract i i i
List of Figures v
Acronyms vi
Conversion Factors v i i
1 INTRODUCTION 1-1
1.1 Background 1-1
2 MARKET PROFILE AND PLANT DESCRIPTION 2-1
3 GENERAL PROCESS DESCRIPTION 3-1
3.1 Raw Materials 3-1
3.2 Manufacturing Process Profile 3-2
3.2.1 General Process Description 3-2
3.2.2 Adhesive Storage and Transfer 3-2
3.2.3 Film Coating and Laminating 3-2
3.2.4 Finishing Operations (Topcoat Application, Slitting, and
Sheeting) 3-5
3.2.5 Differences Between Waterbased and Solvent-based Processes .... 3-6
4 ENVIRONMENTAL ISSUES .4-1
5 WATERBASED FORMULATION EXPERIENCE . 5-1
5.1 Waterbased Adhesive Use . 5-1
5.2 Limitations of Waterbased Adhesive Coatings 5-2
6 OPPORTUNITIES FOR WATERBASED AND OTHER ADHESIVES AT
FLEXCON . 6-1
iv
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LIST OF FIGURES
Number Page
3-1 Coating Line Operation 3-3
3-2 Adhesive Application Equipment 3-5
v
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ACRONYMS
BACT Best Available Control Technology
EPA U.S. Environmental Protection Agency
FLEXcon FLEXcon Company Incorporated
IR infrared
MEK methyl ethyl ketone
PSA pressure-sensitive adhesive
SIC Standard Industrial Classification
VOC volatile organic compound
vi
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CONVERSION FACTORS
To Convert Prom
To
Multiply by
LENGTH
feet (ft)
meters (m)
inches (in)
MASS OR WEIGHT
pounds (lb)
pounds (lb)
tons
tons
VOLUME
gallons (gal)
gallons (gal)
gallons (gal)
gallons (gal)
liters (1)
TEMPERATURE
Fahrenheit (°F)
Celsius (°C)
meters (m)
feet (ft)
centimeters (cm)
kilograms (kg)
tons
pounds (lb)
kilograms (kg)
liters (1)
cubic inches (in3)
fluid ounces (oz)
cubic meters (m3)
gallons (gal)
Celsius (°C)
Fahrenheit (®F)
0.3048
3.281
2.54
0.454
0.0005
2,000
907.2
3.785
231
128
0.00379
0.2642
subtract 32,
then multiply by 0.5556
multiply by 1.8,
then add 32
vi i
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CHAPTER 1
INTRODUCTION
1.1 Background
As part of the overall effort by the U.S. Environmental Protection Agency (EPA) to
identify pollution prevention opportunities associated with manufacturing entities, EPA is
currently assessing the potential for waterbased adhesive coatings as replacements for solvent-
based adhesive coatings in the adhesives-coated and laminated substrate industry, TRC
Environmental Corporation (TRC) is supporting EPA in this effort by investigating the
manufacturing barriers and opportunities associated with process conversions to waterbased
adhesives under Work Assignment Number 1/017, EPA Contract Number 68-D2-0181.
For the purposes of this report, the term "solvent" is used to refer to volatile organic
compound (VOC) containing materials used as carriers for adhesive solids and as cleaning agents
in the adhesive coating process. Common examples of solvents used in these ways are methyl
ethyl ketone (MEK), toluene, cyelohexanone, and acetone, although a number of other organic
liquids are used in these capacities as well. Although water is a solvent, for the purposes of
clarity these other VOC containing liquids are referred to as solvents in this report.
FLEXcon Company Incorporated (FLEXcon), a pressure-sensitive adhesive (PSA) coater,
was selected for a site visit to collect information on the pollution prevention opportunities and
barriers associated with waterbased adhesives. The purpose of the visit to FLEXcon was to
gather information on its product manufacturing processes and to identify and discuss, with input
from the plant personnel, any opportunities for preventing emissions related to the use of solvents
and solvent-based adhesives. Specific objectives of the trip were to collect information necessary
to characterize FLEXcon's market profile, plant layout, manufacturing supplies, manufacturing
process profile, environmental issues, and waterbased adhesive coating experience, as well as the
limitations of water-based adhesive coatings and opportunities for waterbased adhesives at
FLEXcon.
This case study includes six chapters. Chapter 2 includes the market profile and overall
plant description. Chapter 3 provides a general process description. Chapter 4 discusses
4
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environmental issues associated with process conversion. Chapter 5 describes FLEXcon's
waterbased adhesive formulation experience. Finally, Chapter 6 identifies the opportunities for
future use waterbased and other adhesives at FLEXcon.
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CHAPTER 2
MARKET PROFILE AND PLANT DESCRIPTION
FLEXcon began operating one coating plant in Spencer, Massachusetts in 1955. Five
plants in the Spencer area have been added since that time as increased capacity has been
required. Additional production facilities are located in Connecticut and Minnesota and have just
started in Nebraska. Warehousing facilities are located in six different locations throughout the
Unites States and Canada. FLEXcon operates within Standard Industrial Classification (SIC)
code 3081 (Unsupported Plastics Film and Sheet). In 1993, FLEXcon had approximately
$220,000,000 in sales. Overall, the company has been experiencing sales growth at a steady rate
of ten percent per year.
FLEXcon employs approximately 1,100 people company wide. Of those, 800 are located
in the Spencer complex including 600 production staff. Normal operating schedules are two
12-hour shifts per day seven days per week. FLEXcon has over 15 coating lines in Spencer and
more than 20 company wide. Spencer alone has approximately 570,000 square feet (53,000
square meters) of production space. FLEXcon considers its annual throughput to be confidential,
so the volume of products manufactured was not obtained during the facility visit. FLEXcon
manufactures six main categories of pressure-sensitive products: graphic films, packaging labels,
electronic printing labels, microembossed films, medical films and labels, and custom-
performance products,
FLEXcon is a batch operation producing thousands of film constructions on its coating
lines. The company coats various types of films and many of its end-products require high
performance standards such as humidity and corrosive resistance. For these reasons, FLEXcon
considers itself a high performance (specialty) pressure-sensitive film manufacturer.
FLEXcon's Spencer complex is composed of six plants. Some plants are coating plants
and others are finishing plants. These six plants differ in age, capacity, and end-products
manufactured. Plant #4 was toured during TRC's facility visit.
FLEXcon's experience with waterbased adhesives began 20 years ago with existing
equipment designed for solvent-based coating. A dedicated waterbased coating line was
purchased in 1987. Since then, four new coating machines have both water and solvent
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capabilities using Best Available Control Technology (BACT). The two new lines in Nebraska
also have dual capabilities.
FLEXcon made an effort to convert some of its solvent-based coating lines to waterbased
in 1983. This effort, which is discussed in Section E, was abandoned shortly after its inception.
FLEXcon's current waterbased product lines are not replacements for solvent-based products, but
are new product lines aimed at different market segments. While waterbased product lines have
been growing at an annual rate of 30 to 35 percent per year in the last few years, waterbased
adhesives currently account for approximately 25 to 50 percent of FLEXcon's operations (by
volume).
2-2
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CHAPTER 3
GENERAL PROCESS DESCRIPTION
3.1 Raw Materials
FLEXcon uses three main raw materials in its pressure-sensitive film production; release-
coated liners, Films, and coatings. The release-coated liners are either paper or polyester. Some
of these liners are purchased pre-coated while others are coated at its Connecticut facility and
shipped to Spencer. No release coatings are applied in the Spencer facility. The various films
used for its customers' converting operations include vinyl, polyester, acrylic, acetate,
polyethylene, polypropylene, and polystyrene. Specific films used for products are determined
by the end-use requirements of FLEXcon's customers.
Three types of coatings are used at FLEXcon: a release coat, an adhesive coat, and a
topcoat. Nearly all of FLEXcon's end products use each coating, although a topcoat may not be
required for some customers. To manufacture pressure-sensitive films, a solvent-based or
waterbased adhesive is first coated on the release liner, dried/cured, then laminated (transfer-
coated) to a film. FLEXcon currently uses approximately 30 solvent-based adhesives and 10 to
15 waterbased adhesives. The adhesive coating must provide the necessary adhesion to the
expected end-use substrates for film. FLEXcon officials estimated that the company coats 4,000
to 5,000 gallons (15,100 to 18,900 liters) of adhesives per week. Most of FLEXcon's waterbased
adhesives are solvent-free (i.e., no VOC), although a few contain solvents to allow for better
performance and easier application. FLEXcon considers the composition of its coatings to be
confidential.
A relatively thin layer of topcoat is normally added to FLEXcon's films to raise the
surface energy of the film and assist its customers in converting (mainly printing) operations.
Most of FLEXcon's topcoats are waterbased materials, although they normally contain some
solvent.
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3.2 Manufacturing Process Profile
3.2.1 General Process Description
FLEXcon has three general steps in its pressure-sensitive film manufacturing: adhesive
storage and transfer, film coating and laminating, and finishing operations (topcoat application,
slitting, and sheeting). Adhesives are brought into each plant and stored until transferred directly
to the coating line. Adhesive coatings are then applied to a release liner, dried or cured, and then
laminated to their respective films. Following lamination, the film is re-wound and transferred
to another coating line for topcoat application and finally to finishing operations. The topcoat
operation may be bypassed if not required by the customer.
3.2.2 Adhesive Storage and Transfer
FLEXcon does not formulate its adhesives onsite, but instead works closely with its
adhesive suppliers to develop the best possible formulations for its applications. Waterbased
adhesives are brought into the plant in 275-gallon (1,040-liter) tote bins. After coating, these
containers are cleaned with water by production personnel and then reused by the supplier. The
wastewater generated in this cleaning is treated at an onsite treatment unit before it is released
to the sewer. Solvent-based adhesives are delivered in 55-gallon (208-liter) drums and stored
near the waterbased adhesives. Other coatings are delivered, stored, and transferred in a similar
manner to the adhesives.
3.2.3 Film Coating and Laminating
A typical coating line operation at FLEXcon is illustrated in Figure 3-1. The basic
elements of the process are substrate unwind, coating application, drying/curing, lamination
(transfer coating), and wind-up. Initially, release-coated paper or polyester is delivered in roll
form to the coating line and unwound into the coating head. FLEXcon employs reverse roll
coating heads which are composed of a metering roll, applicator roll, and back-up roll. Typical
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To Thermal Oxidizer
or Atmosphere
Adhesive
Evaporated Solvent
Face
Stock
or Water Vapor \
/ f \ \
Substrate
Adhesive Application
(Coating Head)
Drying Se Curing
(Oven)
Lamination
Sc Rewind
Finishing Operations
(Sheeting it Die—cutting)
Rnlshed
Product
Figure 3-1. Coating Line Operation
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Flush Bottle
U>
Doctor Blade
Metering Roll
Adhesive
Dams
Substrate Film
/Application
I Roll
Back-
Waste Collection Tray
5 Gallon
Waste Can
From
Adhesive Container
Figure 3-2. Adhesive Application Equipment
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adhesive application equipment for FLEXcon is shown in Figure 3-2. Adhesives are delivered
to the respective coating lines and pumped into an enclosed trough with dams located on both
sides. Solvent-based adhesives employ diaphragm pumps, while waterbased adhesives use air
cylinder pumps. Adhesive is picked up by the applicator roll and subsequently reduced in
thickness by squeezing through the gap between the applicator roll and the metering roll. The
metering roll is constantly wiped clean of adhesive by the doctor blade to provide a consistently
smooth surface for contacting the adhesive layer. The applicator roll then transfers the adhesive
layer to the substrate, which is travelling in the opposite direction. A back-up roll supports the
substrate during the application process. This coating method is termed reverse roll coating.
Prior to product changeover at FLEXcon, all relevant coating equipment is cleaned to
remove residue from the previous adhesive. Pumps, pipes, troughs, and coating heads are
cleaned with either solvent or water. Troughs are lined with plastic which is removed and
replaced during product changeover. Changeover times vary depending on the coating type
changed. Waterbased to waterbased or solvent-based to solvent-based changes typically require
less than one hour. Sometimes solvent-based to solvent-based changeovers require little or no
cleanup. Waterbased to solvent-based changes (and vice versa) typically require one to two
hours.
After adhesive application, the coated substrate is sent through a gas-fired oven for drying
or curing, FLEXcon stated that most of its ovens are used for drying only; however, a few
solvent-based adhesives are also cured. Oven exhaust is located at the end of the oven where
evaporated carrier is either incinerated (for solvent-based adhesives) or released to the atmosphere
(for waterbased adhesives). Once dried, a solvent-based product typically contains less than 0.5
percent solvent by weight, while a dried waterbased product contains less than 0.5 percent water
by weight. Upon drying/curing, the adhesive is transfer-coated to film via lamination with nip
rollers and either sent to a topcoat applicator or to other finishing operations.
3.2.4 Finishing Operations (Topcoat Application, Slitting, and Sheeting)
Topcoat application employs mainly waterbased coatings which -contain some solvent.
Prior to topcoat application, the laminated film may be corona pre-treated to raise its surface
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energy, allowing for easier topcoat application and easier printing for customers. The topcoat
operation employs a gravure coating head which coats a relatively thin layer of topcoat as
compared to adhesive (typically four to twelve ten-thousandths of an inch). The topcoat
application line is schematically similar to an adhesive coating line, although the coating line and
oven are significantly shorter in length.
In finishing operations at FLEXcon, the large rolls of product are first cut into smaller
rolls on slitting machines. These smaller rolls are then either sheeted or sent directly to the
backing department. FLEXcon estimates that it ships approximately 30 to 40 percent of its
product in sheet form and the remainder in roll form.
3.2.5 Differences Between Waterbased and Solvent-based Processes
The coating processes and machinery used at FLEXcon to coat waterbased and solvent-
based adhesives are very similar, although there are some significant differences. Since
FLEXcon has not converted any of its coating lines from solvent-based to waterbased adhesives,
the relative differences discussed in this section are based on operating lines that have dual
coating capability.
A significant difference between solvent-based and waterbased adhesive-coated product
manufacturing at FLEXcon is that waterbased adhesives are not well suited for short production
runs due to the amount of time and excess substrate required to start-up a waterbased product.
Waterbased adhesives need closer control of process variables and coater conditions must be
optimum before process speeds can be increased. Solvent-based adhesives are well suited for
short runs since they have greater processing latitude.
In general, waterbased adhesives at FLEXcon allow faster line speeds due to the lower
coating weights required with waterbased adhesives. Waterbased adhesive solids content is
generally higher than solvent-based adhesives, so waterbased adhesives have lower coating
thicknesses. Solvent-based adhesives are often coated in the range of two to three one-
thousandths of an inch thick while waterbased adhesives can be one to two one-thousandths of
an inch thick at application. The lower coating weights and faster line speeds allow FLEXcon
to lower its end-product cost to customers for waterbased products. FLEXcon officials noted the
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company's waterbased coating lines are currently operating at maximum line speed with reverse
roll coating technology. In order to increase line speeds, FLEXcon will have to switch coating
methods to gravure or slot die.
Another difference between the production of solvent-based and waterbased
adhesive-coated product is oven operation. The temperature configuration for waterbased
materials is generally flat throughout the oven zones at a temperature of approximately 250°F
(125°C). Solvent-based adhesives' oven temperatures range from an initial zone temperature of
100°F (38°C) to a final zone temperature of approximately 200°F (94°C). In addition,
waterbased adhesives employ infrared (IR) heaters located in the oven zones to assist in
evaporating the water carrier. The IR heaters are not used for solvent-based adhesive coatings.
Finally, located at the oven exit is a system designed to re-moisturize the waterbased-coated
paper substrates to reduce curl and ease laminating, topcoating, and finishing operations.
FLEXcon reported that clean-up operations are much more difficult with waterbased
adhesives. Clean-up time, labor requirements, and wastewater generation are substantially greater
for waterbased adhesives than for solvent-based adhesives.
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i^jnunkir jl JL/Xv
ENVIRONMENTAL ISSUES
There are significant differences among the environmental impacts associated with
waterbased and solvent-based adhesive coating. The most important environmental impacts
associated with solvent-based adhesives are evaporation, incineration, and disposal of solvents.
For waterbased adhesives, the most important environmental issues are the disposal of waste
adhesive and adhesive-coated paper.
FLEXcon uses a number of solvents in its solvent-based adhesives. Toluene, MEK, ethyl
acetate, heptane, isopropyl alcohol, and xylene are all used in various adhesives. Solvent-based
adhesives arrive at FLEXcon pre-formulated in 55-gallon drums. The adhesives are kept in a
drum storage room in the drums until transferred to the coating head. A pump is connected
directly to the drum of adhesive, and piping is run directly into the coating head to transfer
adhesive. This technique allows for very limited evaporation of solvent into the plant
atmosphere.
The coating heads on all machines are fully enclosed and are ventilated to the oven's
oxidizers. Oven vapors are also ventilated to the oxidizers which have an estimated destruction
efficiency of 98 percent. FLEXcon estimated that, due to improved emission controls, its annual
solvent emissions are approximately 180 tons, down from approximately 1,350 tons at its
maximum in the 1980s. These figures are for emissions controlled by thermal oxidation.
There are significant operating costs associated with FLEXcon's oxidizers. Natural gas
is the main cost. The oxidizers operate at 1400°F. FLEXcon must also constantly monitor and
report the performance of its oxidizers. Monitoring and reporting costs, while not easily
quantifiable, are considered by FLEXcon to be significant costs of producing solvent-based
adhesive-coated products.
FLEXcon produces some solvent wastes from the coating process which must be disposed
of as hazardous wastes. These wastes are stored in 55-gallon drums onsite until disposal by an
off-site contractor. While production levels of solvent-based adhesive-coated materials have
increased over the years, the volume of hazardous waste generated by FLEXcon has remained
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relatively constant. There are significant efforts to reduce and/or recycle waste. FLEXcon is a
member of EPA's 33/50 Program.
Waterbased adhesives also have significant environmental costs associated with use.
FLEXcon produces waterbased adhesive waste in its manufacturing process which is treated by
FLEXcon's wastewater treatment system. This waste is generated during cleaning operations,
including coating head cleaning and waterbased container cleaning. FLEXcon also generates
solid waste because some unusable coated paper is generated during setup of waterbased
adhesive-coated product runs.
To process waterbased adhesive wastes, FLEXcon runs the waste through its on-site
wastewater treatment system which removes water and concentrates the waste into a solid sludge.
The wastewater treatment system is capable of processing 50 gallons (760 liters) of untreated
waterbased adhesive waste per hour. The system operates by first adding lime to the wastewater
to raise its pH. The wastewater is then acidified to force the solids out of the sludge in a
diatomaceous earth filter. The recovered water can then be re-used in cleaning operations. Both
concentrated sludge and waste-coated paper are shipped to a municipal incinerator.
FLEXcon officials indicated that the volume of wastewater sludge and waste-coated paper
produced by waterbased adhesives is approximately one-half the volume of hazardous solvent
waste it produces with solvent-based adhesives, FLEXcon estimated that the total annual disposal
cost of the sludge and solid waste is much less than the total annual disposal cost of its
hazardous solvent wastes.
4-2
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CHAPTERS
WATERBASED FORMULATION EXPERIENCE
5.1 Waterbased Adhesive Use
FLEXcon began production of a waterbased adhesive-coated product approximately 20
years ago, using existing equipment. FLEXcon experimented with a large number of waterbased
adhesive coatings before selecting two products to introduce in 1984. Since 1984, FLEXcon has
steadily increased the number of waterbased adhesive-coated products it manufactures.
FLEXcon uses a total of approximately 50 adhesive-coating formulations in manufacturing
its products. Approximately ten of these are waterbased adhesives, while the remainder are
solvent-based adhesives. Waterbased adhesive-coated product sales currently account for
approximately 25 to 50 percent of FLEXcon's total annual sales by unit area.
Five of FLEXcon's 19 adhesive coating machines in the Spencer, Massachusetts plant are
capable of coating waterbased adhesive formulations.
The first step in the 1984 conversion process was to find two waterbased adhesives that
could approach the performance of two of the largest solvent-based adhesives. End use
performance of these products was initiated for existing applications. FLEXcon manufactured
these two waterbased adhesive-coated products and offered them to its clients as alternative
products to solvent-based adhesive-coated products. Since waterbased adhesive-coated products
were less expensive to produce than competing solvent-based adhesive-coated products, FLEXcon
was able to offer the waterbased adhesive-coated products at lower prices. However, the
waterbased adhesives did not perform at expected levels and thus did not receive a positive
response from clients.
FLEXcon's production of waterbased product has risen at a 25-percent annual rate in the
last few years. However, almost all of FLEXcon's increases in waterbased production have been
due to new products, not replacements for solvent-based adhesive-coated products.
FLEXcon is currently exploring a conversion of some of its solvent-based products to
waterbased adhesives. FLEXcon personnel indicate three primary factors for considering this
conversion. First, a waterbased adhesive has been found which meets the required performance
5-1
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levels. Second, waterbased adhesive-coated products are much less expensive to produce than
solvent-based products. Third, the process speeds for waterbased products are higher. These
three factors give waterbased adhesive-coated products a market advantage over solvent-based
adhesive-coated products. However, despite lower production costs, some waterbased adhesive-
coated products exhibit lower profit margins due to the intense competition that has developed
in the waterbased adhesive coating market.
FLEXcon is not currently contemplating any additional waterbased adhesives as
replacements for current solvent-based adhesives. However, the company actively pursues
improvements in waterbased adhesives that will allow it to develop new products to expand
waterbased adhesive usage in the future.
5.2 Limitations of Waterbased Adhesive Coatings
FLEXcon personnel indicated that significant adhesive performance issues must be
addressed before waterbased adhesives can be fully utilized in its market segments. According
to FLEXcon, there are currently no waterbased adhesive formulations that can match the total
performance requirements of FLEXcon's clients. The main limitations of waterbased adhesives
are:
1. Lower peel strength than solvent-based adhesives at room temperatures.
2. Lower sheer strength at high temperatures.
3. Less flexibility in adhesion to a broad range of substrates.
4. Lower tolerance to humidity changes.
5. Limited products that can be used for direct skin contact.
Many of FLEXcon's products are exposed to relatively extreme temperature and humidity, rain,
and ultra-violet radiation. Its products are used in direct skin contact applications, high stress
conditions, and low energy surface applications. FLEXcon manufacturers adhesive-coated
products for use in the electronics industry, which must meet rigorous performance standards.
FLEXcon's adhesive products designed for medical applications must also meet exacting
5-2
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performance characteristics. The current spectrum of available waterbased adhesive coatings does
not encompass the breadth of environmental conditions to which FLEXcon's products are subject.
In the remainder of this section, difficulties in the processing of waterbased adhesives arc
discussed. While these difficulties are significant when considering waterbased adhesive use at
FLEXcon, it should be noted that the most important factor which limits waterbased adhesive use
at FLEXcon is lower performance characteristics.
FLEXcon's market profiles complicate total conversion to waterbased adhesives.
FLEXcon manufactures adhesive-coated products for six general market segments, which are
discussed in Section 2 of this report. FLEXcon manufactures over 10,000 end products in these
six market segments which are sold to a broad assortment of clients. As detailed in Section 3
of this report, FLEXcon employs a batch manufacturing system. This system allows a wide
variety of products to be manufactured, and gives FLEXcon the capability to produce a relatively
small number of products in a short time.
While the batch manufacturing system is necessary for FLEXcon to satisfy its clients'
often time-critical production requests, it does not favor use of waterbased adhesives. FLEXcon
must spend more time and materials to engage a run of waterbased adhesive-coated product than
is required for a run of solvent-based adhesive-coated product. A waterbased adhesive-coated
product must be run at least approximately 2,500 yards (2,300 meters) in substrate length to
allow FLEXcon to make a profit on the production run. For solvent-based adhesive-coated
products, production runs of approximately 250 yards (230 meters) may be performed profitably
and without complications.
There are two factors that cause longer production times with waterbased adhesives. First,
waterbased adhesives require additional equipment cleaning time. When waterbased adhesive-
coated products are manufactured, more time is required to clean the coating head and other
equipment than when solvent-based adhesive-coated products are manufactured. Occasionally,
one solvent-based adhesive can be switched to another on the coating line without extensive
cleaning. However, when switching from one waterbased adhesive to another, the coating head
must be cleaned thoroughly. In addition, the coating heads must always be cleaned thoroughly
when switching between waterbased and solvent-based adhesives.
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The second factor causing longer production times with waterbased adhesives is that these
adhesives take some time to equilibrate on the substrate during a production ran. As a result,
a portion of coated paper must be wasted before the coating head produces marketable products.
For solvent-based adhesive coated products, a 50-yard (46-meter) production run is possible
without coating problems.
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CHAPTER 6
OPPORTUNITIES FOR WATERBASED AND OTHER ADHESIVES AT FLEXCON
For FLEXcon to adequately service the needs of its current client base, it must continue
to use solvent-based adhesives. For most high-performance applications, there are no available
substitutes for solvent-based adhesives. Waterbased and hot melt adhesives are currently better
suited for lower performance applications. Radiation-cured adhesives can achieve high
performance levels, but have a limited flexibility. Two-part reactive adhesive coatings are also
limited in current applications.
Although FLEXcon personnel noted that it would currently be impossible to eliminate
solvent-based adhesive use without drastically altering its client base and market segments, there
are many opportunities available for waterbased adhesive use at FLEXcon in the future. As the
performance characteristics of waterbased adhesives continue to improve, new markets are
becoming accessible. FLEXcon continually searches for these new markets in which to sell
waterbased adhesives. FLEXcon does not see similar opportunities for solvent-based adhesives.
For FLEXcon, sales of solvent-based adhesive-coated products have stayed fairly constant. As
a result, FLEXcon is increasing production of waterbased adhesive-coated products while
maintaining current production levels of solvent-based adhesive-coated products.
In addition to sales of waterbased adhesives aimed toward new applications in existing
markets, FLEXcon hopes to expand into new market segments. There may be further
opportunities for conversion of current FLEXcon products (like shelf labels) from solvent-based
to waterbased adhesives in the future. Many of FLEXcon's products have performance
characteristics that cannot be matched with current waterbased adhesives. However, there may
be solvent-based adhesives used at FLEXcon which could be replaced with a combination of
waterbased adhesives. If the performance needs and market requirements of all FLEXcon's
current solvent-based adhesive-coated products were analyzed, it is possible that some candidates
for replacement would be found.
In the future, there will be more opportunities at FLEXcon to use waterbased adhesives
with both current products and new products. Other adhesive technologies, like radiation-cured
and two-part reactive adhesives. might also achieve performance breakthroughs allowing for
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additional replacement of solvent-based adhesives, A key factor for a radiation cured system
would be a breakthrough in cost for radiation sources and the lowering of toxicity in the
chemicals. FLEXcon personnel predicted that performance levels of these various adhesive
technologies might be high enough to warrant replacement of many high-performance solvent-
based adhesives within ten years. As the performance and marketability of waterbased and other
adhesives continue to increase, FLEXcon personnel believe that the company will be able to
achieve significant conversions from solvent-based adhesives.
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