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Bisphenol-free tickets
- Länstrafiken Jämtland
Market analysis
2011-04-27
Author: Justin Jeffs, Scandinavian Sustainability Consulting
Table of Contents
1 INTRODUCTION..................................................................................................................................1
2 PROJECT APPROACH AND RESOURCING ....................................................................................2
3 MARKET ANALYSIS OBJECTIVES AND SCOPE ............................................................................2
4 LÄNSTRAFIKEN’S REQUIREMENTS................................................................................................2
4.1 CURRENT STATE............................................................................................................................2
4.2 TARGET STATE AND FUNCTIONAL SPECIFICATIONS ..........................................................................3
5 MARKET ANALYSIS...........................................................................................................................3
5.1 THERMAL PRINTING TECHNOLOGY ..................................................................................................3
5.2 WHAT IS THERMAL PAPER? ............................................................................................................4
5.2.1 The Structure of Thermal Paper..............................................................................................5
5.2.2 Choosing the Right Thermal Paper.........................................................................................6
5.3 HISTORICAL DEVELOPMENT OF THERMAL PAPER.............................................................................7
5.4 THERMAL PAPER MARKET SIZE AND APPLICATIONS .........................................................................8
5.5 THE USE OF BISPHENOL A..............................................................................................................9
5.6 INDUSTRY STRUCTURE, TRENDS AND PROFITABILITY .....................................................................10
5.6.1 Industry Structure ..................................................................................................................10
5.6.2 Industry Trends......................................................................................................................11
5.6.3 Industry Profitability ...............................................................................................................13
5.7 THE REGULATORY ENVIRONMENT.................................................................................................14
5.7.1 Regulation in the EU .............................................................................................................14
5.7.2 The US Regulatory Environment and the EPA Assessment ................................................15
5.8 MANUFACTURER/SUPPLIER INTERVIEWS .......................................................................................16
5.8.1 Findings.................................................................................................................................17
6 THE OUTLOOK FOR BISPHENOL-FREE PAPER ..........................................................................19
6.1 PRODUCT ATTRACTIVENESS TO MANUFACTURERS ........................................................................19
6.2 BARRIERS TO DIFFUSION ..............................................................................................................20
7 CONCLUSIONS AND RECOMMENDED NEXT STEPS ..................................................................22
1 Introduction
Although a large number of studies on the toxicity and hormonal activity of BPA in laboratory animals
have been published, there have been considerable discrepancies in outcome among these studies with
respect to both the nature of the effects observed as well as the levels at which they occur (WHO, 2010).
In particular, the effects in some of the research studies were described at dose levels several orders of
magnitude below those at which effects were reported in studies conducted in accordance with standard
test guidelines. This has led to controversy within the scientific community about the safety of BPA and
has resulted in various national authorities taking different risk management actions. The issue has also
received much attention in the media, which has led to a concerned general public.
During the fall of 2010 the Jegrelius Institute for Applied Green Chemistry (Jegrelius) analysed and found
high levels of the suspected endocrine disrupting chemical Bisphenol A (BPA) in ordinary receipts. These
results were in line with studies undertaken elsewhere and have had a major impact in Sweden and other
countries and given rise to a need to find alternatives to receipts that contain BPA.
The research found that those that handle receipts regularly, for example cashiers, may be exposed to
almost twice as much bisphenol A as a normal person. The report concluded that there is a risk that this
exposure may be a health hazard and thus the use of thermal paper that contains bisphenol A should be
minimised.
Analysis showed that Länstrafiken Jämtland (Länstrafiken), a regional transportation company owned by
Jämtland County Council, also had high levels of BPA in their bus tickets. In view of the potential risk to
its employees who handle large quantities of bus tickets, Länstrafiken decided to seek an alternative
solution. Länstrafiken have recently replaced their old thermal paper with a new paper which does not
contain BPA. It is currently unclear what replacement chemical(s) is included in this product or what the
risks of this new paper may be. Furthermore, Länstrafiken have stated an intention to replace their
ticketing machines on all buses from the Summer 2011. As such, a review of the current (or near to)
market offerings has been requested in order that an informed decision can be made during this
procurement.
Länstrafiken and Jegrelius have now formed a cooperation to find a solution and have initiated a project
entitled “Bisfenolfria biljetter - Länstrafiken Jämtland”. This project has four specific objectives:
1. To highlight and give an explanation for the conflicting views and information from industry,
government, scientists and environmental organizations in the risk assessment of BPA.
2. To identify the technology front and the market for BPA-free thermal paper in general and identify
specific products suitable for Länstrafiken’s needs and situation.
3. To undertake a risk assessment of the substitute chemicals for BPA in the alternative products.
4. To build a body of material and knowledge with which to provide further assistance and
cooperation to other companies seeking alternatives to BPA in their receipts.
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2 Project Approach and Resourcing
Jegrelius is responsible for project management and reporting. Lena Stigh and Tomas Östberg have
been assigned by Jegrelius to lead the project and deliver the final report. Justin Jeffs of Scandinavian
Sustainability Consulting has been assigned with responsibility for producing the market analysis.
Activity Responsibility
Problem Description BPA Tomas Östberg
Market Analysis Justin Jeffs
Patent Search and Analysis Lena Stigh
Risk Assessment of Alternatives Lena Stigh/Tomas Östberg
Final Report Lena Stigh
A total of 55 hours have been allocated for the market analysis.
3 Market Analysis Objectives and Scope
The objective of the market analysis is to understand the market potential to procure a suitable BPA-free
product for Länstrafiken. The analysis is global in terms of the general market situation but has a focus on
Sweden and Länstrafiken in respect of product procurement. The analysis has been undertaken in three
stages:
1. A preliminary market analysis based on desk based research
2. Discussions with employees of Länstrafiken to understand the current state situation and future
state desired/required situation.
3. Meetings with the major suppliers of thermal paper to the Swedish market to validate the market
analysis findings and to understand what products are currently available or in the pipeline.
No consideration has been paid to alternative ticketing solutions (eg; SMS, smart phones). Nor has
consideration has been paid to the ticketing infrastructure currently used by Länstrifiken in light of the
plans to change this in the Summer of 2011. Länstrafiken is a member of Svensk Kollektiv Trafik (SKL)
and thus there is an opportunity to utilise the findings of this report as the basis for a wider project on
behalf of other members of this organisation. No specific consideration has been given to the
requirements of SKL in this report.
4 Länstrafiken’s Requirements
4.1 Current State
Länstrafiken’s ticketing infrastructure is provided by FARA ASA, a supplier of IT solutions to the public
transport sector in the Nordic countries. The thermal paper used by Länstrafiken was previously
purchased from FARA but is now purchased from Schades AS, a Danish company whose core business
is the production, sale and distribution of both plain and printed paper rolls, self-adhesive labels and food
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wrap. Schades have production facilities in Denmark, France, Germany and the UK and provide products
to a variety of industries including retail, financial institutions, lotteries, gaming and entertainment,
ticketing, stationary, food and logistics. Schades sell more than 100 million POS rolls and 6 billion labels
every year.
Länstrafiken currently use Jujo’s AP50KS-NP paper which is manufactured in Finland and converted by
Schades. This is a non-topcoated paper developed for direct thermal printing and designed for use in
cash registers, receipts, coupons and point of sale (POS). The paper is produced without phenol
chemisty and has a ten year image stability and printability guarantee. Länstrafiken currently purchase
circa 10,000 rolls each year.
4.2 Target State and Functional Specifications
Länstrafiken wish to purchase a thermal paper which has a better environmental profile than the
previously purchased paper which contained bisphenol A. A contract has recently been signed with FARA
ASA to upgrade the existing ticketing infrastructure for Länstrafiken. This implementation is expected to
be implemented by June 2011. Any replacement paper rolls therefore need to be compatible with this
infrastructure. The volume of rolls purchased is expected to be unchanged from circa 10,000 per year.
The paper rolls should be capable of being pre-printed on the reverse and do not need to be top-coated.
5 Market Analysis
5.1 Thermal Printing Technology
There are two types of thermal printing:
 Thermal Transfer
 Direct Thermal Printing
Thermal transfer printing is where a printer prints an image onto paper (or some other material) by melting
a coating of ribbon so that it stays glued to the material on which the print is applied. It contrasts with
direct thermal printing where no ribbon is present in the process. The main application is to produce
barcode labels for product and shipping identification as the ribbons tend to wear out quickly with other
applications.
Direct thermal printing is the preferred technology for a wide variety of commercial applications including
point of sale receipts, luggage tags, faxes, and labels. In the direct thermal printing process, a printed
image is produced by selectively heating specific areas of coated thermal paper as it is passed over a
thermal print head. The coating undergoes a colour change in the areas where it is heated, producing an
image. This temperature-induced colour change is termed as thermochromism (MacLaren etal, 2003).
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Figure: The direct thermal printing process (Source: Mitsubishi, 2010)
5.2 What is Thermal Paper?
Thermal paper is a special fine paper that is impregnated with a chemical that changes colour when
exposed to heat. It is used in thermal printers and particularly in cheap, lightweight devices such
as adding machines, cash registers and credit card terminals.
The surface of the paper is impregnated with a solid-state mixture of a dye and a suitable matrix. When
the matrix is heated above its melting point the dye reacts with the developer, shifts to its coloured form,
and the changed form is then conserved in metastable state when the matrix solidifies back quickly
enough.
Components of thermal paper include:
 Colour former – Leuco dye that is light/coloured or colourless but will change to a dark colour with
the addition of a proton which opens the lactone ring.
 Colour developer – the weak acid that donates a proton to the colour former, changing it from
light to dark.
 Modifier/sensitizer – can reduce the melting point of the colour former & developer mix.
 Binders – adhere the coating to the paper.
The degree to which the colour-reagents (leuco colour former, acceptor) react is precisely controlled by
special melting point regulators (sensitisers). In this way, various monochrome shades can be created
depending on the amount of energy transferred.
The thermal head in the thermal printer transfers the heat to the thermal paper. A thermal head consists
of a multitude of miniature heating elements distributed along its printing width. Each of these tiny heating
elements is electronically controlled to deliver the right amount of energy at the right time. In this way, the
individual colour points are created which together form the final image – text, graphs, bar codes, etc. A
backing roll ensures that the thermal paper stays in constant contact with the thermal head. A thermal
printer has considerably fewer moving parts than any other printer.
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Figure: A chemical reaction occurs when heat is applied to the paper (Source: Source: EPA, 2010).
Typically the coating will turn black when heated. But coatings that turn blue or red are sometimes used.
While an open heat source such as a flame can discolour the paper, a fingernail swiped quickly across
the paper will also generate enough heat from friction to produce a mark on such paper.
5.2.1 The Structure of Thermal Paper
Thermal paper is made up of a base paper layer onto which various layers of chemical compounds are
added. The layers typically include a protective topcoat, the reactive thermal coat, a foundation pre-coat
and a protective backcoat.
Figure: Cross Section of Top-Coated Thermal Paper. (Source: EPA, 2010)
(i) Topcoat
An optional additional topcoat can be applied to the thermal coat to protect the thermal paper from
mechanical abrasion (e.g. through scratches), chemical influences (e.g. through oils, fats, varnishes or
organic solvents) and other environmental influences (e.g. through high humidity or water). A topcoat on
the front side of the thermal paper also extends the service life of the thermal head of the printer by
reducing or eliminating the transfer of residue from the thermal coating on to the thermal print heads. A
top coat can also focus the heat from the thermal print head on the active coating and provide better
anchorage of flexographic printing inks applied to the thermal paper.
(ii) Thermal Coat
The thermal coat contains the reactive chemicals which react when heat is applied to produce the image
on the paper. The composition of the thermal coat determines the sensitivity of the paper, the image
density, the image preservation and the background density.
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(iii) Pre-coat
The pre-coat prevents heat conduction into the paper thus enabling the energy from the thermal head to
concentrate in the thermal layer in order to produce high-resolution printing. This layer determines the
sensitivity of the paper, the brightness and the image density and guarantees an even and smooth
surface onto which the thermal coat is applied.
(iv) Back-coat
A back-coat is also optional but essential when the reverse side of the thermal paper is exposed to
migrating adhesives (e.g. adhesives which are used in the production of self-adhesive labels) or
plasticizers (e.g. from plastics like PVC). Furthermore, special back-coats prevent the paper
from curling and enable the use of water-based solvents, inks and adhesives.
5.2.2 Choosing the Right Thermal Paper
To ensure optimum printing results, it is essential that the paper is ideally matched to the application for
which it is required and the printer employed. The results of printing may be very different depending on
the printer used or the environment in which the product is used. It is thus always necessary to test the
product compatibility under the typical printing conditions to achieve the best printout for the final use. Key
factors to consider are the paper’s sensitivity, ageing stability, printability and certification by the thermal
printer manufacturers:
(i) Dynamic and static sensitivity
Sensitivity is the decisive factor in the selection of the correct paper. The dynamic sensitivity is particularly
important in the choice of paper for certain printers. The faster a printer works, the shorter the time the
paper is exposed to the elements of the thermal printing head. Therefore, a fast device requires paper
with a higher dynamic sensitivity. If low sensitivity thermal papers are used, the heat applied is insufficient
to create a printed result with the necessary density, which in turn reduces the long-term stability of the
print. The static sensitivity defines the temperature at which the colour reaction in a thermal paper begins.
The static sensitivity value is important when the papers used are employed in high-temperature
environments such as for car park tickets.
(ii) Aging Stability
Developments in recent years mean that it is now possible to buy papers designed to meet different
archiving requirements with the best papers offering upto 25 years without fading.
(iii) Printability
It is possible to buy paper that can be printed on the functional as well as on the reverse side. However, it
is important to consider which printing method is used and ensure that it is compatible with the paper
type. When printing the thermal layer, care must be taken that the machine settings are adapted to the
paper and that the inks selected must always be compatible with the thermal layer, regardless of whether
the thermal side or the reverse is being printed.
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(iv) Certification by printer manufacturers
The paper must be compatible with the thermal printing head used in the printer in order to guarantee a
long service life for the thermal printer and its individual components while achieving a consistently good
printed result. It is therefore important to match the grade of thermal paper to be used to the equipment.
5.3 Historical Development of Thermal Paper
Thermal papers first came to market in the 1960’s. The first papers were developed by NCR Corporation
and 3M. Despite the NCR paper being of inferior quality, whereby the image would fade rapidly, it took a
leading market position over time due to its relative cheapness (Answers.com, 2010). The first thermal
printing head was developed by Texas Instruments in 1965 and the first thermal printer, connected to a
computer terminal, was launched on the market in 1969. During the 1970s Hewlett Packard began
integrating thermal paper printers into its desktop computers and plotters.
In the 1970s and early 1980s, Japanese producers (such as Ricoh, Jujo, and Kanzaki) using similar dye-
based chemistry to that used by NCR, formed partnerships with barcode printer manufacturers (such as
TEC, Sato, and others) and entered the emerging global bar code industry, primarily in supermarkets
(Answers.com, 2010). U.S. producers such as Appleton (NCR's licensee), Nashua Corporation, Graphic
Controls, and others fought to gain market share. Leading pressure-sensitive label producers such
as Avery Dennison became major consumers of direct thermal paper for label applications.
Sales in thermal paper really took off at the end of 1980’s with the launch of fax machines. This resulted
in large investments in production capacity for fax papers. However, in the early 1990’s the fax market
had peaked and began to decrease due to the penetration of laser and inkjet fax machines which did not
suffer from the fading which was common with thermal paper (Fink etal, 2007). Thermal transfer, laser
printing, electro-photography, and to a lesser extent, ink jet printing, began to take market share for
industrial and warehouse barcode applications due to better durability.
In an attempt to protect their investments in thermal paper production capacity, manufacturers were
forced to seek new applications for direct thermal printing. An investment in improved performance and
reliability, including image stability, printability and thermal resistance properties, has led to an increasing
variety of applications. The rapid development in recent years of fast, quiet, reliable thermal printers has
also allowed the speed and accuracy of the printing to improve. The result has been an overall growth in
the market for thermal paper which has more than compensated for the drop in thermal fax paper.
Today, direct thermal printing technology dominates ticket, tag and label printing and is showing steady
growth and diversity. Point-of-sale (POS) is an ever-growing market for thermal printing. Applications
include printing of bank statements and ATM receipts, receipts from credit card payments and ticketing for
lottery, travel, leisure and sports events. The main uses in manufacturing applications are product
labelling, inventory control, tracking, shipping and maintaining of work in progress. Airline luggage tags
and boarding passes as well as medical charts have also become interesting markets for the thermal
printing industry.
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Direct thermal printing has maintained its market penetration and growth due its inherent benefits over
other alternative methods of printing. These can be summarised as follows:
 fast printing and no changing of peripherals
 high image resolution
 very high reliability and durability
 small, compact printing units ideal for handheld devices
 easy handling in applications
 no additional consumables (e.g. toner or inks)
 low running costs – low energy and maintenance
 low noise due to the "non-impact" printing process
 high functionality even under extreme environmental conditions
 no fouling of the print head
 excellent ink receptivity
The traditional drawbacks of thermal paper, such as paper curling and fading of the printed image over
time, are less of an issue today as the ability to add special layers has developed over the last five years.
These layers also allow printing, most notably advertising, to be applied to the back of the paper. Finally,
a range of thermal papers have security measures available to reduce counterfeiting.
5.4 Thermal Paper Market Size and Applications
After 40 years, thermal printing continues to be a resilient, growing, diversified industry. The worldwide
market for thermal paper in 2006 was approximately 845 thousand metric tons valued at $1.5–1.6 billion
at the producer level (Fink etal, 2007). The long term growth rate for thermal paper has been 10% per
annum. Growth rates have been above average in developing countries with China’s growth estimated at
15% p.a. (Fink etal, 2007). According to estimates in Europe, about half of thermal paper is used in point-
of-sale receipts and nearly a third for self-adhesive labels used for things like deli-trays, shipping labels,
and luggage tags (EU Risk Assessment, 2008). The European Thermal Paper Association has indicated
the remainder is used for lottery tickets and FAX paper.
Figure: Applications of thermal paper in Western Europe 2005/6 (source: EU Risk Assessment, 2008)
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5.5 The Use of Bisphenol A
Bisphenol A is one of the world's most widely used chemicals. Commercial production of BPA began in
the 1950’s when large-scale uses for polycarbonate plastic and epoxy resins were developed. The global
consumption of BPA in 2003 was estimated to be approximately 3 million metric tons (SRI Consulting,
2004). It is estimated that 1,150,000 tons per year were produced in the EU in 2005/2006 (European
Chemicals Bureau, 2008).
BPA is mainly used for products which are used in the chemical industry, construction, engineering, iron,
metal, plastics and service industries. Of the total global volume produced, 71% is used in the production
of polycarbonates (thermoplastic polymers) and 25% in the production of epoxy resins (European
Chemicals Bureau, 2008). Polycarbonates are used for example in the manufacture of beverage bottles,
baby bottles, cups, plates and mobile phones. Epoxy resins are used for adhesives, paints, varnishes and
protective covers for cans to stop corrosion.
Figure: Production and use of BPA in Western Europe 2005/6 (Source: European Chemicals Bureau,
2008 )
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Thermal paper benefits from the economies of scale created through the mass production and use of
bisphenol in plastics and resins. It is estimated that 1,890 tonnes of BPA was used in thermal paper in the
EU during the period 2005/6, which is 0.16% of total BPA use in Europe (European Chemicals Bureau,
2008). This was used to make 2.4x109 m2 of thermal paper, equivalent to approximately 168,000 tonnes
of paper.
BPA has been used in thermal paper since the 1960’s due to its known properties as a developer and the
fact that it was widely available and believed to be safe (Toussaint, 2010). As thermal paper became
more established, industry found other chemicals that also worked and in some applications were better
suited. BPA has never got a toehold in higher-end applications due to its relatively low performance (eg;
low tolerance to heat and light) but has remained the primary choice for lower-end applications such as
supermarket and petrol station receipts because it is roughly half the price of alternatives. Even here
some companies are currently using other chemicals.
In spite of the volume of research in existence indicating the potential hazards of BPA, it remains a widely
used developer in thermal printing due to its efficacy, availability, and low cost (Gregory, 1991).
5.6 Industry Structure, Trends and Profitability
5.6.1 Industry Structure
The boom in fax paper in the 1980’s led to a large scale investment in thermal paper manufacturing
capacity. When the fax market began to peak and then decline in the early 1990’s there was significant
overcapacity and fragmentation in the market, particularly in Europe (Lockie, 1998). This overcapacity
forced European producers to look beyond their borders to sell surplus production. Overcapacity also led
to poor profitability in the sector and subsequent market exits from paper convertors. Producer
consolidation was made difficult due to the lack of small producers in the market. One major
manufacturer, Arjo Wiggins of the UK, divested of Appleton following its acquisition in 2000, and
subsequently exited the thermal paper market.
Instead of consolidation, the industry embarked on a strategy of technology development and
differentiation (Lockie, 1998). The result has been a wide range of specialist papers which are high
performance, tailored products for a broad range of uses, built on a common technology requiring cheap
peripherals. Simultaneously, the industry has invested in automation, production excellence and
economies of scale to improve margins. This strategy has enabled the products to be attractive for a
wider range of end-users including retail POS, travel, gaming, medical and financial services.
There are three distinct layers to the supply chain for thermal paper, namely thermal paper
manufacturing, converting and sales/distribution.
1. Manufacturing is defined as both paper production (often from purchased pulp) and finishing. It is
undertaken in large, automated production plans. The manufacturing companies either own or
license the patents for the different chemical formulations necessary to create the various finishes
of thermal paper.
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2. Converting consists of purchasing paper in jumbo rolls and then slitting them to commonly used
sizes for various industries, for example in ATM machines or POS terminals. Converting also
includes printing additional information on to the paper, such as advertising.
3. Trade consists of purchasing the ready-to-use roles from the convertors and redistributing them
to end customers.
Figure: Supply chain for thermal paper (Source: Author)
The manufacturing market is now dominated by a small number of global firms who produce a wide range
of paper products in addition to thermal paper. These include:
 Mitsubishi HiTec Paper
 August Koehler
 Jujo Thermal Ltd
 Appleton
 Kanzan
 Nashua
A more detailed overview of the global manufacturers of thermal paper is included in Appendix 2. Other
firms exist but these are largely sister companies to these manufacturers with a focus on specific markets.
Most of the global firms have some form of Japanese influence with the exception of Koehler of Germany
and Appleton of the US who have remained independent.
There are significant barriers to entry in to the manufacturing market including a large capital investment
in plant and machinery, the development or licensing of patents, the building of supply chains and the
need for a large sales volume to achieve economies of scale.
There are a limited number of convertors of thermal paper in the Swedish market. Two major convertors
are Schades AS from Denmark, who currently supply Länstrafiken, and RollCo Nordic. Details of these
companies are included in Appendix 3.
5.6.2 Industry Trends
Despite the drop off in the 90’s for fax paper the worldwide thermal paper consumption is actually
increasing and is forecast to continue increasing due to two key factors:
 Demand driven by economic growth
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 Technological developments
A driving factor behind the success of thermal paper is the growth in global retail commerce. The
increased use of bank cards in place of cash also increases the need for proof of purchase receipts, often
a regulatory requirement. The low cost of direct thermal technology makes it especially attractive to
developing markets. Furthermore, the reliability, low maintenance demands and the non-dependence on
peripherals makes thermal printing attractive to these markets which typically lack a service and repair
infrastructure (Lockie, 1998).
Secondly, there is an exponential growth in the amount of information that is being printed. More and
more receipts are being used as a vehicle for advertising. POS receipts are now typically double sided,
allowing advertising to be placed on the reverse side, with the front side containing much more than just
the details of the items purchased. These printing processes place extra demands on the thermal paper
and thus the quality of the thermal paper is of increasing importance.
Travel is a growth market for thermal paper. Self-service terminals are increasingly being installed at
airports in particular, but also at other central arrival and departure terminals for rail, ferry and bus. Almost
all of these devices are equipped with thermal printers for tickets, ticket envelopes and baggage tags.
Likewise there is an increasing trend towards printed 2D barcodes as information carriers, away from
magnetic strips (Mitsubishi, 2010).
Direct thermal printing is becoming increasingly popular for portable, mobile applications thanks to the
compact technology used. The increased use of portable POS terminals, in restaurants for example, is
increasing the demand for thermal paper. The increase in the use of portable computers and smart
phones which can connect to these devices will also provide a further market opportunity for thermal
paper.
One of the early problems with direct thermal printing was that the paper would fade and curl with time or
when exposed to heat, light, moisture or chemicals. Recent developments in coatings, both front and
back, have meant that thermal paper can now be bought with a guaranteed ‘non-fade’ lifetime of upto 25
years. Thermal paper with resistance to chemical, moisture and temperature extremes is also widely
available on the market. This durability has increased the range of uses for thermal paper to include, for
example, guarantees, proof of purchase, legal documents, expense reports, tax records and medical
records.
Many types of tickets, especially travel tickets for public commuter traffic, are prone to counterfeiting. In
Germany alone, damages of hundreds of millions of Euros were reported in 2007 (Mitsubishi, 2010). The
thermal paper manufacturers have responded with products which contain a range of security options
including watermarks in the paper, colour inlays, UV-fluorescent fibres and UV-fluorescent security
features under the topcoat
More recently, Ricoh have developed the first rewriteable thermal technology (Ricoh, 2010). This allows
images to be created and deleted through the controlled application of heat. In this way, a single card can
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be pre-printed with basic information and then reprinted with supplementary information specific to the
user. Ticketing is a major potential application of this technology as the users travel period, zones, etc.,
can be changed without the need for the issuance of a new card.
Mobile payment technology, enabled through smart phone technology, is increasingly being used for all
types of transactions, including payments. According to research conducted by Yankee Group and made
public at the Mobile World Congress 2011 in Barcelona, mobile transaction volumes are expected to grow
at a very high rate, with the estimated total value of global mobile transactions rising from USD 162 billion
in 2010 to USD 984 billion in 2014 (ThePaypers, 2010). Mobile banking is also set to become more
mainstream. This trend will undoubtedly have an impact on the number of ATM transactions undertaken
and could result in more paperless transactions in the future, thereby reducing the demand for thermal
paper.
The growth in digital cameras, and more recently high quality cameras built into phones, has had a
significant impact on the printing industry and paper providers overall as fewer prints are now made (Fink
etal, 2007). Similarly, alternative printing technologies such as Dye Diffusion Thermal Transfer (DDTT or
D2T2), inkjet and electrophotographic printing are continuing to develop and are predicted to grow,
particularly for professional and desktop printing. Inkjet is perhaps the closest rival to thermal printing.
However due to the low cost of direct thermal printing relative to inkjet and the simple printing technology
which avoids expensive peripherals, thermal printing is still the preferred choice.
5.6.3 Industry Profitability
The thermal paper industry is dominated by a handful of large manufacturers. Historic oversupply in the
manufacture of thermal paper has led to tough competition and depressed prices in the industry. Despite
the specialisation in end products, margins are tight overall with profitability depending on the cost of raw
materials and strong automation to achieve economies of scale in production. The high cost of plant and
machinery necessitates large sales volumes for manufacturers.
During the financial crisis of 2008 the demand for thermal paper dropped. Due to the large fixed cost base
of manufacturers (a reflection of the high cost manufacturing infrastructure) it is difficult to reduce costs
quickly and as such profitability suffered during this period. More recently demand for thermal paper has
increased to pre-crisis levels across all markets and seems to have reverted back to the long term growth
of 10% per year, led by growth in Asia and Russia (Jujo, 2010). The problematic oversupply versus
demand, a factor of the market for many years, is also predicted to reach a more even balance in the
coming years.
The price outlook is one of increasing prices for thermal paper, typically more than 10% in 2010/11 across
the industry (Jujo, 2010). This is primarily due to the increasing cost of all inputs, in particular freight,
chemicals and especially for wood pulp which almost doubled in price in 2009-10 to reach a nine year
high due to increased demand combined with supply shortages (Jujo, 2010). Further investments in
production capacity are likely to be delayed for the time being thus tightening the spread between supply
and demand further. Investments are however likely in further automation, optimisation and for product
specialisation.
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5.7 The Regulatory Environment
As a substance Bisphenol A is not banned anywhere in the world. Extensive scientific testing and
governmental reviews worldwide have concluded that human exposure to BPA is very low and within the
safety limits set by government authorities. However, recent studies using novel low dose approaches
and examining different endpoints describe subtle effects in laboratory animals at very low concentrations
(EPA, 2010). Some of these low-dose studies are potentially of concern for the environment because the
concentration levels identified with effects are similar to some current environmental levels to which
sensitive aquatic organisms may be exposed.
Regulatory authorities around the world reviewing these low-dose studies have generally concluded that
they are insufficient for use in risk assessment because of a variety of flaws in some of the study designs,
scientific uncertainty concerning the relevance to health of the reported effects, and the inability of other
researchers to reproduce the effects in standardized studies (EPA, 2010).
However, since the low-dose studies do raise questions and concerns, some countries have decided to
restrict the use of BPA-based material in food contact products for small children (ages 0-3) as a
precautionary measure while more data is gathered. Canada is the first country in the world that has
classified BPA as a toxic substance. Bans are also in place in Australia, and a few US states.
5.7.1 Regulation in the EU
In the EU’s 2008 risk assessment for BPA (European Chemicals Bureau, 2008), analysis was undertaken
of the potential health risks from exposure to BPA in the workplace, as consumers, from the environment
and from combined exposures. The assessment concluded that “there is at present no need for further
information and/or testing and no need for risk reduction measures beyond those which are being applied
already. This conclusion applies to the terrestrial and atmospheric compartments, and to secondary
poisoning through the aquatic, terrestrial and marine food chains.” In respect of thermal paper the report
concluded that “Other uses of bisphenol-A, such as in printing inks and thermal paper, are considered to
result in negligible potential for consumer exposure in comparison with the other sources considered and
therefore will not be addressed further in this assessment.”
Research undertaken by a host of European organisations including The Federal Institute for Risk
Assessment (BfR) in Germany, The European Food Safety Authority (EFSA) and the British
Environmental Agency have drawn the same conclusions as the EU risk assessment, namely that there is
no risk to humans from current sources of exposure to BPA (Specialpapper, 2010).
Despite this, France and Denmark have banned BPA in baby bottles. Denmark has taken this one step
further and extended the prohibition to all food products for children up to three years old. Furthermore, a
recent decision by the EU Commission now means that from March 2011 the manufacture of baby
feeding bottles containing BPA in the EU will be outlawed, and from June 2011 the importation and sale
of such bottles will be prohibited (ChemSec, 2010).
In Sweden, the government recently approved the development and implementation of a national action
plan to reduce the presence of toxins in the environment (Swedish Gov, 2010). The Swedish Chemicals
14
Agency (KEMI) has been tasked with developing and implementing this plan whereby hazardous toxins
and chemicals are to be identified, restricted and phased out. Discussions between Jegrelius and KEMI
have confirmed that Bisphenol A in thermal paper is currently outside of the scope of this initiative but that
it could be considered for inclusion if a convincing argument is made.
5.7.2 The US Regulatory Environment and the EPA Assessment
Companies in the USA don’t have to report on the chemicals that they are using to the federal
government, to manufacturers that use their products, or to the public (Schreder, 2010). The Toxic
Substances Control Act (TSCA), which was passed in 1976, gives the Environmental Protection Agency
(EPA) very limited ability to require safety testing of chemicals before they’re used in commerce. Of
approximately 80,000 chemicals used in commerce since 1976 only a few hundred have been tested
while more than 62,000 were grandfathered without any requirement that they be tested or their safety
assessed (Schreder, 2010). Manufacturers introducing chemicals after TSCA’s passage must notify EPA
of the new chemical, but don’t have to test it for health and safety or ensure that the safest chemicals are
used.
Most human exposure to BPA comes from food packaging (Willhite etal, 2008). Food and food additives
are regulated by the US Food and Drug Administration (FDA) and are specifically excluded from the
definition of chemical substance under TSCA (EPA, 2010). In order to assess whether changes are
necessary to the TSCA the FDA is undertaking research on the affects of exposure to BPA on humans.
The FDA is also seeking to strengthen its oversight of BPA so the agency can respond quickly, if
necessary, when more scientific evidence becomes available.
In uses subject to FDA jurisdiction, public concern has led the industry to move towards non-BPA-based
materials in products such as baby bottles, cups, spoons and adult drink bottles, and to explore
alternatives in food can linings. Meanwhile, the U.S. Department of Health and Human Services (HHS)
has provided interim recommendations on how parents and families can reduce exposures to BPA while
additional studies are underway (EPA, 2010).
In March 2010, the EPA released a BPA Action Plan (EPA, 2010). In the launch statement, the agency
clearly indicated that it “does not intend to initiate regulatory action under TSCA at this time on the basis
of human health.” The rationale behind this approach is that the exposure to BPA from sources which sit
under the remit of the EPA are small compared to those sources under the remit of the FDA. The EPA is
working with the FDA to support further research in the area of BPA exposure.
The EPA is however considering two rulemaking actions on the basis of concern for potential risk to the
environment from BPA:
1. Adding BPA to new Toxic Substances Control Act (TSCA) 5(b)(4) Concern List
2. Consider TSCA 4(a) rulemaking to develop data on environmental presence and effects
The first assessment of the EPA’s bisphenol A action plan will focus on finding safer alternatives to BPA
used as a developer in thermal paper. The assessment, entitled “Alternatives to BPA in Thermal Paper
15
Partnership” started in July 2011 and is being led by the EPA’s Design for the Environment project (EPA,
2010). The goal is to facilitate a movement towards safer alternative developers in thermal paper.
The rationale behind looking at thermal paper is twofold. Firstly, the EPA believes that there are BPA
alternatives readily available which may have a better environmental profile than BPA. Secondly, they
point to the fact that thermal paper contains “free-BPA” (ie; it is not chemically bound) which can be easily
released from the paper onto skin when handled.
To implement its goal, a group of key stakeholders has been gathered to identify and develop information
on alternatives to BPA in thermal paper. Members of the project include representatives from a wide
range of stakeholders including manufacturers, convertors, chemical producers, retailers, green chemists,
NGOs and US government officials (see Appendix 3 for a full list of project members). Industry
involvement in the project is voluntary but to date includes representatives from the major global
manufacturers. Both Canada and the EU are represented on the project, with Paolo Castello from the
Joint Research Centre of the European Commission representing the EC.
The content of the assessment will include evaluating the hazards associated with BPA and the viable,
functional alternatives that act as developers for dyes in this application. Human health and
environmental profiles for each chemical will be based on a review of literature in the public domain,
structure-activity relationship modelling, and, in some cases, proprietary information shared by
stakeholders.
To date the working group have identified a list of seventeen chemicals, aside from BPA, which could be
used instead of BPA, of which thirteen are currently in use to form thermal paper in the U.S., Europe, and
Japan (see Appendix 4). The next milestone, due in April 2011, is to complete a draft evaluation of the
ecological and human health hazards and environmental fate of BPA and alternative developers. The
final report is due by December 2011.
5.8 Manufacturer/Supplier Interviews
In order to validate the findings from the market analysis and to identify suitable bisphenol-free papers,
contact was made with five major manufacturers of thermal paper, two convertors and one supplier:
 Kanzan
 Jujo
 Mitsubishi
 Koehler
 Nashua
 RollCo Nordic (Convertor)
 Schades (Convertor)
 Point (supplier)
It was intended that through meetings with these companies the project could gain input which would help
Länstrafiken to understand the potential alternatives, allow Jegrelius to undertake a risk assessment on
16
the alternatives and to formulate a set of specifications for an ultimate procurement of bisphenol-free
thermal paper.
5.8.1 Findings
In short, the companies contacted either did not respond to direct requests for information or refused to
give information via their convertors/country representatives. Positive meetings and exchanges of
information were achieved via three companies who have relationships with the above manufacturers.
These companies provided useful insight into the structure of the industry, the availability of bisphenol-
free paper and the manufacturers’ positions on BPA-free paper. The following is a summary of findings
from these meetings. The sources of individual comments have been kept confidential.
(i) Availability of Bisphenol-free Paper
Alternative chemicals have been available for many years and have replaced bisphenol in top-coated
papers which are designed for premium products such as lottery and flight tickets which have higher
performance demands. These higher priced products have thus been able to absorb the additional cost of
the alternate chemicals. Due to recent customer demands and increased regulatory investigation
manufacturers have invested significant time and money to develop lower cost non-top coated papers.
There is now a variety of products available on the market although they are typically double the price of
the bisphenol-free alternatives.
(ii) Identifying the Chemical Developers Used
Jujo, the Finnish manufacturer of the paper used by Länstrafiken today, have been unwilling to declare
the chemical developer used in this paper. Other manufacturers have given the same response. A
certificate and detailed specification sheet for Jujo’s paper is included in Appendix 1. The certificate states
that the paper meets all EU regulations regarding chemical contents. Schades also supplies this paper to
other Swedish clients including Skånetrafiken, Kalmar Länstrafik, Jönköpings Länstrafik, ICA, COOP,
H&M, Systembolaget and Ax Foods.
Without the details of the chemicals used it is very difficult to undertake a risk assessment of these
alternative papers. One option suggested is to test the papers using gas chromatography. Reviewing
patents was felt to be a dead-end as manufacturers often do not use the chemicals stated in the patent. It
is common knowledge that some manufacturers such as Appleton have moved to using bisphenol
sulfonate (BPS), a close chemical relative of BPA. BPS has not been studied nearly as extensively as
BPA but in-vitro studies indicate it may also disrupt hormones, with studies indicating it has some
estrogenic and anti-androgenic properties (Kuruto-Niwa etal, 2005). A recent report suggests that BPS is
also more resistant to breakdown in the environment than BPA (Danzl, 2009). It is too early to tell if the
other papers which do not rely on phenol chemistry are any better as their chemical constituents are
either unknown or have not been sufficiently risk assessed.
(iii) The Incentive for Manufacturer’s to Provide Alternatives
Price pressures in recent years have resulted in low profitability and a high investment in automation.
Manufacturers have a well-oiled machine in respect of their manufacturing and distribution supply chain
and are unwilling to disrupt this. Furthermore, changes in the paper can cause problems elsewhere in the
17
supply chain, for example printer compatibility, thus requiring significant testing which increases time and
cost.
It was agreed that client and regulatory pressure are two key levers to force the industry to act.
Regulation does not currently restrict the use of bisphenol in thermal paper. In respect of client demand,
there is currently only a very small demand from convertors for the bisphenol-free alternatives as most
customers still demand the lowest priced products. Manufacturers have therefore not made a significant
effort to market these papers for fear of cannibalizing their market share in what is a fiercely competitive
market.
The current client and product profile of the manufacturers will to a certain extent determine how quickly
they act in response to regulatory pressure/client pressure. Where manufacturers rely heavily on sales of
non-top coated paper they are more exposed to regulatory/client demands for bisphenol-free paper as
top-coated paper is already largely bisphenol-free. Overall it is expected that the market will take many
years to move away from bisphenol, especially in developing markets.
(iv) Client-Led Initiatives
There is a perception that clients in both Sweden and Finland are taking the bisphenol discussion
seriously. Meanwhile clients in Denmark, Norway and Germany are less interested in bisphenol-free
paper. Examples of major retail clients who have changed to bisphenol-free paper are Lidl of Germany
and a variety of Swedish clients including H&M, Ax Foods, COOP and Systembolaget. ICA of Sweden
has stated that they will give their stores the option to purchase bisphenol-free paper rolls however it will
not be mandated.
Following a request from its major clients, including H&M, COOP, Ax Foods and Systembolaget, Schades
recently organised a meeting attended by representatives from these companies in addition to
representatives from The Swedish Chemicals Inspectorate (KEMI) and Jujo Paper. During this meeting
the manufacturer of the developer was disclosed confidentially although the chemical constituents were
not. KEMI have stated that they cannot demand to know the developer used providing that the
manufacturer ensures compliance with EU regulations. KEMI are also not empowered to undertake a risk
assessment of the developer used in place of BPA.
ChemSec (The International Chemical Secretariat), based in Sweden, is bringing together their member
companies to discuss the issue with a view to creating a platform for knowledge and cooperation amongst
its members who include IKEA, B&Q (UK), Boots (UK) and REWE Group (Germany).
(v) Conclusion
It is possible for Länstrafiken to purchase an alternative to the current Jujo paper from Schades, Point
and RollCo Nordic, although the comparison can only be made on price terms. Even paper certified by
Nordic Swan contains BPA. Schades state that they have selected Jujo’s paper as it is the cheapest for
them to buy in of all the papers available on the market.
18
6 The Outlook for Bisphenol-free Paper
In order to assess the outlook for the diffusion of bisphenol-free paper, an analysis of the relative
attractiveness of the product and the barriers to diffusion has been undertaken.
6.1 Product Attractiveness to Manufacturers
There are many factors to consider when evaluating the speed of diffusion for bisphenol-free thermal
paper. At the manufacturing level, these factors may include ease of fabrication, compatibility with other
components of a system, performance advantages, or the ability to earn a greater profit while at the same
time meeting current and future expected regulations. At the user level product performance, compatibility
with existing equipment and cost are the major considerations.
The decision by manufacturers to undertake an investment in diffusing an alternative product will be
determined by the attributes of the product to be diffused (Rogers, 2003). Furthermore, general risk
factors may also have an influence, such as the possibility that economic development may influence the
perceived economic risk that a potential adopter faces in the adoption of a technology.
The factors which determine the speed of diffusion of a new innovation were identified by Rogers as
relative advantage, compatibility, complexity, trialability and observability. These factors along with
general risk factors have been evaluated from the perspective of thermal paper manufacturers to
understand how motivated they may be to embark on such an investment:
‘+’ denotes that the factor is positive in the manufacturer’s eyes
‘-’ denotes that the factor is negative in the manufacturer’s eyes
Attributes Factors
Relative
Advantage
 Allows companies to demonstrate their eco-credentials in the face of growing
criticism and regulation
 The development of new patents can provide competitive advantage in a
fiercely competitive market
 New market with high growth potential for new entrants
 Possible to charge a premium to existing products
 Most clients demand the lowest cost product
 Regulations do not restrict BPA
 Significant Investment has been made in the existing supply chain
 A potential zero-sum gain for existing manufacturers unless higher margins or
greater market share can be achieved
Compatibility  BPA-free alternatives already available on the market and demanded by a
growing number of clients
 Existing knowledge regarding thermal printing is still relevant
 Compatible with chemicals industry efforts to demonstrate eco- credentials in
the face of concerns over growing waste, emissions and pollution
 Potential compatibility issue with printing equipment and inks
Complexity  R&D expenditure needed
19
 Testing will be required to ensure compatibility with the wide range of technical
applications of thermal paper
Trialability  BPA-free papers can be trialed on those customers that demand them.
Observability  Growing market for non-BPA thermal paper
 Increased media and regulatory attention to the problems with BPA
Risk  Uncertainty regarding market potential
 Uncertainty regarding legislative developments
 Admitting liability for current product failings could lead to future litigation
 Cannibalisation of existing market
6.2 Barriers to Diffusion
Despite the availability and potential attractiveness to manufacturers of bisphenol-free paper, there are a
number of barriers which will slow the diffusion of these products.
The first major barrier, which is typical of any industry, is often referred to as path dependency (Arthur,
1989; David, 1985). Path dependence means that present decision-making is affected by previous events
or decisions (Puffert, 2003). The historical events or decisions amplify the initial advantages of an
innovation over time due to ‘learning by doing’ (Arrow, 1962) and ‘learning by using’ (Rosenberg, 1982),
and network externalities (Liebowitz and Margolis, 1995).
The feedback process from markets to technical improvements, creating increasing returns, tends to
create a ‘lock-in’ phenomenon. Technological change can go in multiple directions, but once change is
initiated in a particular direction, it becomes increasingly difficult to change its course (Roehrl and Riahi,
2000).
There are three major sources of path dependency in an established innovation system (Geels, 2004):
1. Rules and regimes (eg; government, regulatory) provide stability by guiding actors’
perceptions and actions.
2. Actors having various (and often vested) interests are embedded in interdependent networks
and mutual dependencies which contribute to stability.
3. There are ‘sunk investments’ (for infrastructure, production lines, skills, etc.) which are
difficult to abandon, there is technical interrelatedness (or compatibility standards) between
various components, and there are increasing returns to the actors with increased use of a
technology due to network externality, i.e. an increase in the number of users increases the
quality, availability and variety of a technology and related products.
In respect of Bisphenol-free paper, it is the manufacturers who need to make changes to their production
processes and invest in sales and marketing of these products. Manufacturers are likely to suffer from
path dependency due all three of the major sources identified above. Firstly, the current regulatory regime
20
tends to favour BPA as it has been significantly tested by regulatory bodies globally and no firm results
regarding damage to human health have been presented. The European Thermal Paper Association
(ETPA), of which the major manufacturers are members, has recently published a statement to this effect
making reference to the various research projects (Specialpapper, 2010). Each of the members of the
ETPA has published this statement on their websites.
Secondly, the members of the supply chain are embedded in interdependent networks. The paper
manufacturers are typically diversified companies who use a wide range of chemicals to manufacture
their products. The blend of these chemicals is a source of competitive advantage to these companies
placing a strong dependency on the chemical industry.
Finally, any end use technology needs to work with the paper inserted into the system. This necessitates
a close relationship between the paper manufacturers and the manufacturers of the end-use technology.
Changing any of the chemical components of the paper will necessitate a round of testing across all the
potential end use technologies, of which there are many.
It is reasonable to expect that current manufacturers will not cannibalise their existing markets unless a
clear customer demand exists which is more profitable over the long term and/or if regulations demand
so. Despite their denials on the risks of BPA, the manufacturers do seem to sense a move towards tighter
regulatory compliance for BPA and have responded by developing BPA-free products. How quickly these
products diffuse will also be determined by client demand and by the attractiveness of the market.
Currently, most clients are still demanding the cheapest option.
The main barriers which will slow the diffusion of bisphenol-free paper can be summarised as follows:
(1) Political, Institutional and Legislative
(2) Economic
(3) Technical
21
Factors
Determining
the Rate of
Innovation &
Diffusion
Current Barriers
Political,
Institutional and
Legislative
 Lack of consensus on BPA lifecycle hazards
 Lack of legislation prohibiting the use of BPA
 Environmental pressures vary considerably according to the geographical
location of a firm's activity
 The “grandfathering” of existing products
 Existing supply chain relationships and technology
Economic  Commitment to new investment by manufacturers
 High barriers to entry for new players
 A BPA replacement programme requires action by the whole supply chain
 Lack of clear, attractive demand
 Historic overcapacity and low profitability
 Limited number of BPA-free vendors and lack of market push towards bisphenol
free paper.
Technical  There are a large variety of thermal paper types for which the new chemical must
meet performance requirements
 Testing required to ensure compatibility with printing devices, inks, etc.
7 Conclusions and Recommended Next Steps
The thermal paper manufacturing industry is an oligopoly characterized by overcapacity and poor
profitability. Bisphenol has been used in thermal paper since the 1960’s and continues to be widely used
in non-top coated papers due its low price and low product performance requirements.
Customers and regulators are increasingly aware of the potential risks of bisphenol which has resulted in
investment by the industry in the development of cheaper bisphenol-free alternatives. Non-BPA
alternatives are available on the market today and manufacturers are in a position to shift their production
and marketing over to non-BPA should it be required. This will however incur cost and risk. While an
attributes analysis shows that there are a number of factors in favour of bisphenol-free alternatives, there
is a concern by manufacturers that they will cannibalise their existing market and lose market share
leading to an overall reduction in profitability.
22
23
In order to increase their marketing of these products, manufacturers need to be motivated through a
clear and attractive customer demand and/or legislation. Regulations in the EU and US do not currently
restrict the use of bisphenol in thermal paper although regulatory attention and testing is increasing.
Media attention to the risks of bisphenol has resulted in action from a number of large Swedish
companies including HM, COOP, Ax Foods and Systembolaget. ChemSec are also engaging their
members, which include IKEA, to increase awareness and share knowledge on potential alternatives.
Overall however, most clients are still demanding the cheaper BPA thermal papers which are typically
around half the price of bisphenol-free alternatives.
At present there is a gap in knowledge regarding the chemical developers used in bisphenol-free papers.
There is also a lack of reliable information regarding the risks and effects of these chemicals. It is
therefore difficult to ascertain whether BPA-free papers do in fact have an improved environment profile.
An example of a failure in this respect is the use of bisphenol S (BPS) in place of bisphenol A, where BPS
is now feared to be more environmentally damaging due to its persistence.
Three suppliers of BPA-free paper to the Swedish market have been identified as potential suppliers to
Länstrafiken. These companies collectively can provide access to the full range of BPA-free products.
The manufacturers will not however divulge which chemicals they use as it is a source of competitive
advantage. Sourcing a thermal paper which is not environmentally harmful cannot be achieved without
knowing its chemical contents. Regulators do not demand that manufacturers divulge the chemicals used,
only requiring that they declare compliance with regulations in the markets in which they are sold. Both
Länstrafiken and Jegrelius are too small by themselves to demand that manufacturers provide details of
their papers for risk assessment purposes.
In conclusion, making a recommendation to Länstrafiken at this time can only be done on price and
performance grounds (ie; which BPA-free paper/convertor is cheapest). In order to realise the objectives
of the project a clear and attractive customer group is required which collectively can engage in dialogue
with manufacturers. It is recommended as a next step that Jegrelius engage as part of a larger initiative,
for example with ChemSec, or indeed initiate a project whereby a larger buyers group can be assembled.
An example could be to bring together the other members of Svensk Kollektiv Trafik to initiate a
nationwide project.
24
References
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Appendix 1 – Certificate and Specification Sheet for the Paper Currently Used by Länstrafiken
26
Appendix 1 Continued – Certificate and Specification Sheet for the Paper Currently Used by Länstrafiken
27
28
Appendix 2: Global Manufacturers of Thermal Paper
Company Contact Details Swedish
Office/Distributor
Enviro. Certificates Activities
Undertaken
Products BPA-Free
Available?
Co. Overview
Mitsubishi
HiTec
Paper
Europe
Mr. Kenneth Elfström
HiTec Media Sverige AB
Tel.: 0046-8960948
Mobile: +46 (70) 513 36 67
Email: kenneth.elfstroem@hit
ecmedia.se
Web: http://www.mitsubishi-
paper.com
Mr. Kenneth Elfström
HiTec Media Sverige AB
Södra Catalinagränd 27
183 68 Täby -
Stockholm
Sweden
 ISO 14001
 FSC
 REACH Compliant
 NORDIC SWAN
 BRC Global
Standard -
Consumer Product
certified
 ISO 9001
 Supporter of the
TWO SIDES
campaign
 Supporter of the
campaign FICTION
AND FACTS
 E2E production
from pulp
production to
finished product
 Patents
licensed and
R&D support
provided by
parent co
Mitsubishi
Paper Mills
Japan
 Sell thermal
paper directly to
converters
 Paper and labels
 Giroform carbonless paper, Jetscript
digital imaging paper and
Thermoscript thermal paper.
 Thermal paper is produced for the
following industries: Retail,
Entertainment, Transport, Gaming,
Banking, Medical
 OEM approvals for most brands:
Confirm details with Thomas
Grammel
OEM Manager
Tel. +49 461 8695-314
thomas.gramme@mitsubishi-
paper.com
Yes  Locations: Bielefeld +
Flensburg (Germany)
 Production Capacity: 155,000
tonnes/year
 683 employees
 Turnover: 283 million EUR
 Owner: Mitsubishi Paper
Holding (Europe): 81.6 %
Mitsubishi Corporation: 18.4
%.. The European Mitsubishi
Paper group belongs to
Mitsubishi Paper Mills, Tokyo
(MPM)
August
Koehler
Papierfabrik August Koehler
AG · Hauptstraße 2 · D-
77704 Oberkirch
Tel. +49 7802 81-0 ·
Fax +49 7802 81-4330
Email: info@koehlerpaper.co
m
Web:
www@koehlerpaper.com
Via Convertors/
Distributors
 ISO 9001:2008
 ISO 14000 : 2005.
 Information Security
ISO 27001:2005
 Occupational
Health and Safety
OHSAS
18001:2007.
 Paper sourced from
FSC suppliers
 E2E product
development,
manufacturing,
marketing and
sales
 Own more than
100 patents
 Supply papers
to converters in
80 countries
 Fine Papers & Special Papers
 Coloured Papers & Technical Papers
 Thermal Papers
 Carbonless Papers
 Decor Papers
 Full range of end-use direct thermal
labels, tags and tickets.
 Approved by (at least) IBM, Epson,
Seiko, MWCR, Hengstler or Mettler-
Toledo
Yes  200 year old company
 Turnover: 540 million euros
 Sales of 429,000 tons of
paper
 Independent company
 Head office in Oberkirch and
the mills in Kehl and Greiz.
Planning US plant
 Local offices in Europe
(various ex Sweden), US and
China
Jujo
Thermal Ltd
Purchase Dep’t: +358 (0)10
303 2418
Email: jujosales(at)jujotherma
l.com
Web:
http://www.jujothermal.com
Via Convertors/
Distributors
 FSC
 PEFC
 NORDIC SWAN
 ISEGA
 ISO 9001:2008
 ISO 14001:2004
 OHSAS
18001:2007
 E2E product
development,
manufacturing,
marketing and
sales
 Sell thermal
paper directly to
converters
 Manufacturer of direct thermal paper
and one-side-coated self-adhesive
labels.
 Focus on durable thermal papers for
labels, tickets and POS use
 Epson, IBM and SII approved thermal
paper
Yes  Locations: Kauttua, Finland
 230 employees
 Turnover: TBC
 Owned by Nippon Paper
Industries,
Ahlstrom and Mitsui & Co.
Appleton
Papers Inc
825 E Wisconsin Avenue
P.O. Box 359
Appleton, WI 54912-0359
Phone: 01-920-734-9841
Web:
http://www.appletonideas.co
m
Via Convertors/
Distributors
 ISO 14001
 FSC
 E2E product
development,
manufacturing,
marketing and
sales
 Sell thermal
paper directly to
converters
 Manufacture carbonless, thermal,
security papers and Encapsys®
microencapsulated products
 Full range of end-use direct thermal
labels, tags and tickets.
 Wide range of OEM approvals:
http://www.appletonideas.com/Applet
on/en_US/01/pdf/PrinterApplications
GuideandApprovedPapers.pdf
BPS  N.Americas largest producer
of thermal paper
 Plants in Wisconsin, Ohio and
Pennsylvania,
 Employs 2,000 people
 100 percent employee owned.
 Sells carbonless and thermal
products into more than 70
countries
 European distribution centers
in St. Helens, England, and
Utrecht, Netherlands.
29
Company Contact Details Swedish
Office/Distributor
Enviro. Certificates Activities
Undertaken
Products BPA Free? Co. Overview
Kanzan KANZAN Spezialpapiere
GmbH
Nippesstrasse 5
52349 Dueren
Germany
Tel.: +49 2421 5924-0
Fax: +49 2421 5924-19
Email: sales@kanzan.de
Web: http://en.kanzan.de
Bertil Ranerson
BRC Ranerson
Consulting
Moendalsvägen 3
41263 Gothenburg
031 408825
br@brc.as
 ISO 9001
 certified according
to FSC-Chain of
Custody
 DIN EN 71.3 norm
 E2E product
development,
manufacturing,
marketing and
sales
 Sell thermal
paper directly to
converters
 Manufacturer of thermal papers and
other special products, particularly
inkjet papers.
 Four main groups of thermal papers:
KL - Topcoated, KP - Non-
Topcoated, PL - Plotter and KF -
POS/Receipts
 Full range of end-use direct thermal
labels, tags and tickets.
 Wide range of OEM compatibilities.
Yes  315 employees
 Turnover > 100 million Euro.
 95% owned by Oji Paper Co.,
Ltd. which has 20,000
employees achieves an
annual turnover of about
8,000 million Euro
 Production at Neumuehl mill
in Dueren
Ricoh Ricoh Industrie France SAS
(RIF)
144,route de Rouffach,F-
68920 WETTOLSHEIM
COLMAR,France
TEL:+33-389-20-4175
FAX:+33-389-20-4040
Email: virginie_ernst@ricoh-
industrie.fr
Web:
http://www.ricoh.com/thermal
Various Swedish offices
dealing with IT and
office solutions. Head
office:
Sverige
Ricoh Sverige AB
Röntgenvägen 3
P.O. Box 1536
171 29 Solna
Sweden
Tel.: +46 (0)8 734 33 00
Fax: +46 (0)8 734 33 1
 ISO 90001/2
 ISO 14001
 ISO 27001:2005-
Information Security
Management
System (ISMS)
 Thermal paper
manufacturing.
 Manufacturer of thermal papers and
other special products including
rewriteable thermal products
 Full range of end-use direct thermal
labels, tags and tickets
 Range of OEM approvals. Contact
Ricoh for details.
TBC  Total Co. Turnover: 2,016.3
billion yen (Year ended March
31, 2010)
 Total employees: 108,525
 Thermal Paper Production
Plants in Japan, USA, France
and China
Nashua Park Ridge Office
250 S. Northwest Highway
Suite 203
Park Ridge, IL 60068
Phone +1 (800) 323-4265
Web: http://www.nashua.com
tkelley@nashua.com
Via Convertors/
Distributors
 TBC  Paper convertor
and developer
of thermal
paper products
 Full range of end-use direct thermal
labels, tags and tickets.
 Sell IBM thermal POS paper
TBC  Owned by CENVEO, INC.
since 2009
 7 manufacturing locations in
the US.
 Parent company (Cenveo)
has 8000 employees and a
turnover of US 2bn.
NCR 3097 Satellite Boulevard
Duluth, Ga. 30096-5810
USA
+1-937-445-1936
Web: www.ncr.com
Point Transaction Systems
AB
Ljusslingan 4
120 06 Stockholm
Sweden
Phone: +46 8 566 287 00
Fax: +46 8 641 7670
www.point.se
 ISO 9002
 ISO 14000
 Paper convertor
and developer
of thermal
paper products
 Developer of thermal paper solutions
 Full range of end-use direct thermal
labels, tags and tickets
 OEM compatibility dependent on
paper – details available on website
Yes  The original manufacturer of
direct thermal paper
 Turnover: USD4.6 billion
 Employees: 21,500
30
Appendix 3: Convertors/Suppliers of Bisphenol-free Thermal Paper for the Swedish Market
Company Contact Details Products BPA Free? Co. Overview
Schades A/S
(Current Supplier to
Länstrafiken)
Måns Palmqvist, Sales Manager
Sweden and Finland
Muskötgatan 11
254 66 HELSINGBORG
Phone +46 4226 3653
mp@schades.com
www.schades.com
 Small paper rolls and
self adhesive labels for
retail, financial
institutions, lotteries,
gaming and
entertainment,
ticketing, stationary,
food and logistics
 Their products meet all
OEM standards
including NCR, ICL,
ADS, IBM, Omron and
Epson.
 Jujo’s bisphenol
free paper
supplied to LT
today
 Manufacturing plants in
Germany, France, the
UK and Denmark.
 Employees: 200
 Turnover: 82 million
Euros (2008)
 Produce: 100
million POS rolls and 6
billion labels every year
 Owner: Capidea
Managment ApS,
Denmark
Rollco Nordic AB Ellenbergavägen 13
266 32 Munka-ljungby
Martin Walfriedsson, vd
Phone: 042-298020
info@rollconordic.se
 Small paper rolls cash
registers, ticketing,
payment terminals and
ATM machines
 Distribute Nordic Swan
marked rolls
 Can provide
bisphenol free
paper from any of
the five global
manufacturers
 7 employees
 Turnover 20m SEK
Point Transaction
Systems AB
Ljusslingan 4
120 06 Stockholm
Sweden
Bo Danielsson
Phone: +46 8 566 287 00
Fax: +46 8 641 7670
www.point.se
 Electronic payment
systems and
peripherals
 They can provide
BPA free rolls
 Point is the leading
provider of electronic
payment solutions in
Europe focusing on
payment services to
merchants.
 Point is present in 10
European countries.
 250,000 customers
 480,000 payment
installations
 turnover of €
150 Million
Appendix 4: Members of the EPA’s Alternatives to BPA in Thermal Paper Partnership
31
Thermal Paper Manufacturers
Pam Barker, Appleton Papers, Inc.
Mike Friese, Appleton Papers, Inc.
Pete Popovics, Cenveo/Nashua
Jouko Mäkitalo, Jujo Thermal
Mari Koskinen, Jujo Thermal
Fred Paris, Kanzaki
Michael Horn, Koehler Paper
Dirk Keller, Koehler Paper
Bernd Gerecht, Mitsubishi
Takahisa Kato, Mitsubish
Theodore Rice, Mitsubishii
Gary Toussaint, Nashua Corporation
Trevor Kelley, Nashua
Todd Ostrowski, Tighe& Bond
Thermal Paper Converters
Doug Dahrsnin, LabelWorld
Dave Starr, Heartland Label Printers
Andrew Dennison, Heartland Label Printers
Dave Blum, Heartland Label Printers
Jim Check, Heartland Label Printers, Inc.
Mike Rapier, Liberty Paper Products, LLC
Jerry Butler, NCR
Bram van Staalduinen, NCR
Debora Jeske, NCR
Steve Nahm, NCR
Terie Syme, Prestige Label Co.
Stacey MacNeil, UPM Raflatac
Steven Schwartz, RiteMade Paper
Chemical Manufacturers
(Developers and Color-formers)
Steve Aderman, AdChem Technologies
Al Wiedow, BASF
Omi Kapel, BASF
Frank Kearney, ESCO
Robin Heath, Nagase America Corporation
John Wrubel, Nisso America
Toshiyuki Iwama, Nisso America
Tadashi Kawakami, Nisso America
POS OEM Manufacturers
Ron Mateas, Epson
Sal Rizvi, Star Micronics America, Inc
Retailers
Drew Du Bois, Kroger
Jeff Brown, Safeway
Roger McFadden, Staples
Holly Wipf, Target
Zach Freeze, Wal-Mart
Jason Wadsworth, Wegmans
Joe Dickson, Whole Foods
International
Paolo Castello, EC Joint Research Centre
Kate McKerlie, Environment Canada
Green Chemistry Consultants
John Warner, Warner Babcock Institute
Sarah Newsky, Warner Babcock Institute
Manfred Krautter, EcoAid
Trade Associations
Steven Hentges, American Chemistry Council
Erik Lieberman, Food Marketing Institute
John Billings, Food Marketing Institute
David Wagger, ISRI
Sarah Walczewski, Retailer Industry Leaders Association
Trade Unions
Jackie Nowell, UFCW
NGOs
Mark Rossi, Clean Production Action
Michelle Harvey, EDF
Sonya Lunder, EWG
David Andrews, EWG
Sarah Janssen, NRDC
Darby Hoover, NRDC
Brian Penttila, Pacific NW Pollution Prevention Resource Center
Pam Eliason, Toxics Use Reduction Institute
Erica Schreder, WA Toxics Coalition
Government
John Bucher, NIEHS
Kris Thayer, NIEHS
Cherie Estill, NIOSH
Steve Schrader, NIOSH
Mike Babich, CPSC
Vanee Komolprasert, FDA
Gary Ginsberg, Connecticut DPH
Terry Goldberg, NEWMOA
Technical Consultant
Lauren Heine, Clean Production Action
Thermal Paper Manufacturers
Pam Barker, Appleton Papers, Inc.
Mike Friese, Appleton Papers, Inc.
Pete Popovics, Cenveo/Nashua
Jouko Mäkitalo, Jujo Thermal
Mari Koskinen, Jujo Thermal
Fred Paris, Kanzaki
Michael Horn, Koehler Paper
Dirk Keller, Koehler Paper
Bernd Gerecht, Mitsubishi
Takahisa Kato, Mitsubish
Theodore Rice, Mitsubishii
Gary Toussaint, Nashua Corporation
Trevor Kelley, Nashua
Todd Ostrowski, Tighe& Bond
Thermal Paper Converters
Doug Dahrsnin, LabelWorld
Dave Starr, Heartland Label Printers
Andrew Dennison, Heartland Label Printers
Dave Blum, Heartland Label Printers
Jim Check, Heartland Label Printers, Inc.
Mike Rapier, Liberty Paper Products, LLC
Jerry Butler, NCR
Bram van Staalduinen, NCR
Debora Jeske, NCR
Steve Nahm, NCR
Terie Syme, Prestige Label Co.
Stacey MacNeil, UPM Raflatac
Steven Schwartz, RiteMade Paper
Chemical Manufacturers
(Developers and Color-formers)
Steve Aderman, AdChem Technologies
Al Wiedow, BASF
Omi Kapel, BASF
Frank Kearney, ESCO
Robin Heath, Nagase America Corporation
John Wrubel, Nisso America
Toshiyuki Iwama, Nisso America
Tadashi Kawakami, Nisso America
POS OEM Manufacturers
Ron Mateas, Epson
Sal Rizvi, Star Micronics America, Inc
Retailers
Drew Du Bois, Kroger
Jeff Brown, Safeway
Roger McFadden, Staples
Holly Wipf, Target
Zach Freeze, Wal-Mart
Jason Wadsworth, Wegmans
Joe Dickson, Whole Foods
International
Paolo Castello, EC Joint Research Centre
Kate McKerlie, Environment Canada
Green Chemistry Consultants
John Warner, Warner Babcock Institute
Sarah Newsky, Warner Babcock Institute
Manfred Krautter, EcoAid
Trade Associations
Steven Hentges, American Chemistry Council
Erik Lieberman, Food Marketing Institute
John Billings, Food Marketing Institute
David Wagger, ISRI
Sarah Walczewski, Retailer Industry Leaders Association
Trade Unions
Jackie Nowell, UFCW
NGOs
Mark Rossi, Clean Production Action
Michelle Harvey, EDF
Sonya Lunder, EWG
David Andrews, EWG
Sarah Janssen, NRDC
Darby Hoover, NRDC
Brian Penttila, Pacific NW Pollution Prevention Resource Center
Pam Eliason, Toxics Use Reduction Institute
Erica Schreder, WA Toxics Coalition
Government
John Bucher, NIEHS
Kris Thayer, NIEHS
Cherie Estill, NIOSH
Steve Schrader, NIOSH
Mike Babich, CPSC
Vanee Komolprasert, FDA
Gary Ginsberg, Connecticut DPH
Terry Goldberg, NEWMOA
Technical Consultant
Lauren Heine, Clean Production Action
Appendix 5: List of Known or Expected Functional BPA Alternatives for Use in Thermal Paper
32
Appendix 5 (Continued): List of Known or Expected Functional BPA Alternatives for Use in Thermal Paper
33
34
35
JEGRELIUS – INSTITUTE FOR APPLIED GREEN CHEMISTRY
Studiegången 3  SE831 40 Östersund
WWW.JEGRELIUS.SE
We are a section of the Jämtland Regional Council

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Bisphenol-Market-Analysis-Jegrelius

  • 1. Bisphenol-free tickets - Länstrafiken Jämtland Market analysis 2011-04-27 Author: Justin Jeffs, Scandinavian Sustainability Consulting
  • 2.
  • 3. Table of Contents 1 INTRODUCTION..................................................................................................................................1 2 PROJECT APPROACH AND RESOURCING ....................................................................................2 3 MARKET ANALYSIS OBJECTIVES AND SCOPE ............................................................................2 4 LÄNSTRAFIKEN’S REQUIREMENTS................................................................................................2 4.1 CURRENT STATE............................................................................................................................2 4.2 TARGET STATE AND FUNCTIONAL SPECIFICATIONS ..........................................................................3 5 MARKET ANALYSIS...........................................................................................................................3 5.1 THERMAL PRINTING TECHNOLOGY ..................................................................................................3 5.2 WHAT IS THERMAL PAPER? ............................................................................................................4 5.2.1 The Structure of Thermal Paper..............................................................................................5 5.2.2 Choosing the Right Thermal Paper.........................................................................................6 5.3 HISTORICAL DEVELOPMENT OF THERMAL PAPER.............................................................................7 5.4 THERMAL PAPER MARKET SIZE AND APPLICATIONS .........................................................................8 5.5 THE USE OF BISPHENOL A..............................................................................................................9 5.6 INDUSTRY STRUCTURE, TRENDS AND PROFITABILITY .....................................................................10 5.6.1 Industry Structure ..................................................................................................................10 5.6.2 Industry Trends......................................................................................................................11 5.6.3 Industry Profitability ...............................................................................................................13 5.7 THE REGULATORY ENVIRONMENT.................................................................................................14 5.7.1 Regulation in the EU .............................................................................................................14 5.7.2 The US Regulatory Environment and the EPA Assessment ................................................15 5.8 MANUFACTURER/SUPPLIER INTERVIEWS .......................................................................................16 5.8.1 Findings.................................................................................................................................17 6 THE OUTLOOK FOR BISPHENOL-FREE PAPER ..........................................................................19 6.1 PRODUCT ATTRACTIVENESS TO MANUFACTURERS ........................................................................19 6.2 BARRIERS TO DIFFUSION ..............................................................................................................20 7 CONCLUSIONS AND RECOMMENDED NEXT STEPS ..................................................................22
  • 4. 1 Introduction Although a large number of studies on the toxicity and hormonal activity of BPA in laboratory animals have been published, there have been considerable discrepancies in outcome among these studies with respect to both the nature of the effects observed as well as the levels at which they occur (WHO, 2010). In particular, the effects in some of the research studies were described at dose levels several orders of magnitude below those at which effects were reported in studies conducted in accordance with standard test guidelines. This has led to controversy within the scientific community about the safety of BPA and has resulted in various national authorities taking different risk management actions. The issue has also received much attention in the media, which has led to a concerned general public. During the fall of 2010 the Jegrelius Institute for Applied Green Chemistry (Jegrelius) analysed and found high levels of the suspected endocrine disrupting chemical Bisphenol A (BPA) in ordinary receipts. These results were in line with studies undertaken elsewhere and have had a major impact in Sweden and other countries and given rise to a need to find alternatives to receipts that contain BPA. The research found that those that handle receipts regularly, for example cashiers, may be exposed to almost twice as much bisphenol A as a normal person. The report concluded that there is a risk that this exposure may be a health hazard and thus the use of thermal paper that contains bisphenol A should be minimised. Analysis showed that Länstrafiken Jämtland (Länstrafiken), a regional transportation company owned by Jämtland County Council, also had high levels of BPA in their bus tickets. In view of the potential risk to its employees who handle large quantities of bus tickets, Länstrafiken decided to seek an alternative solution. Länstrafiken have recently replaced their old thermal paper with a new paper which does not contain BPA. It is currently unclear what replacement chemical(s) is included in this product or what the risks of this new paper may be. Furthermore, Länstrafiken have stated an intention to replace their ticketing machines on all buses from the Summer 2011. As such, a review of the current (or near to) market offerings has been requested in order that an informed decision can be made during this procurement. Länstrafiken and Jegrelius have now formed a cooperation to find a solution and have initiated a project entitled “Bisfenolfria biljetter - Länstrafiken Jämtland”. This project has four specific objectives: 1. To highlight and give an explanation for the conflicting views and information from industry, government, scientists and environmental organizations in the risk assessment of BPA. 2. To identify the technology front and the market for BPA-free thermal paper in general and identify specific products suitable for Länstrafiken’s needs and situation. 3. To undertake a risk assessment of the substitute chemicals for BPA in the alternative products. 4. To build a body of material and knowledge with which to provide further assistance and cooperation to other companies seeking alternatives to BPA in their receipts. 1
  • 5. 2 Project Approach and Resourcing Jegrelius is responsible for project management and reporting. Lena Stigh and Tomas Östberg have been assigned by Jegrelius to lead the project and deliver the final report. Justin Jeffs of Scandinavian Sustainability Consulting has been assigned with responsibility for producing the market analysis. Activity Responsibility Problem Description BPA Tomas Östberg Market Analysis Justin Jeffs Patent Search and Analysis Lena Stigh Risk Assessment of Alternatives Lena Stigh/Tomas Östberg Final Report Lena Stigh A total of 55 hours have been allocated for the market analysis. 3 Market Analysis Objectives and Scope The objective of the market analysis is to understand the market potential to procure a suitable BPA-free product for Länstrafiken. The analysis is global in terms of the general market situation but has a focus on Sweden and Länstrafiken in respect of product procurement. The analysis has been undertaken in three stages: 1. A preliminary market analysis based on desk based research 2. Discussions with employees of Länstrafiken to understand the current state situation and future state desired/required situation. 3. Meetings with the major suppliers of thermal paper to the Swedish market to validate the market analysis findings and to understand what products are currently available or in the pipeline. No consideration has been paid to alternative ticketing solutions (eg; SMS, smart phones). Nor has consideration has been paid to the ticketing infrastructure currently used by Länstrifiken in light of the plans to change this in the Summer of 2011. Länstrafiken is a member of Svensk Kollektiv Trafik (SKL) and thus there is an opportunity to utilise the findings of this report as the basis for a wider project on behalf of other members of this organisation. No specific consideration has been given to the requirements of SKL in this report. 4 Länstrafiken’s Requirements 4.1 Current State Länstrafiken’s ticketing infrastructure is provided by FARA ASA, a supplier of IT solutions to the public transport sector in the Nordic countries. The thermal paper used by Länstrafiken was previously purchased from FARA but is now purchased from Schades AS, a Danish company whose core business is the production, sale and distribution of both plain and printed paper rolls, self-adhesive labels and food 2
  • 6. wrap. Schades have production facilities in Denmark, France, Germany and the UK and provide products to a variety of industries including retail, financial institutions, lotteries, gaming and entertainment, ticketing, stationary, food and logistics. Schades sell more than 100 million POS rolls and 6 billion labels every year. Länstrafiken currently use Jujo’s AP50KS-NP paper which is manufactured in Finland and converted by Schades. This is a non-topcoated paper developed for direct thermal printing and designed for use in cash registers, receipts, coupons and point of sale (POS). The paper is produced without phenol chemisty and has a ten year image stability and printability guarantee. Länstrafiken currently purchase circa 10,000 rolls each year. 4.2 Target State and Functional Specifications Länstrafiken wish to purchase a thermal paper which has a better environmental profile than the previously purchased paper which contained bisphenol A. A contract has recently been signed with FARA ASA to upgrade the existing ticketing infrastructure for Länstrafiken. This implementation is expected to be implemented by June 2011. Any replacement paper rolls therefore need to be compatible with this infrastructure. The volume of rolls purchased is expected to be unchanged from circa 10,000 per year. The paper rolls should be capable of being pre-printed on the reverse and do not need to be top-coated. 5 Market Analysis 5.1 Thermal Printing Technology There are two types of thermal printing:  Thermal Transfer  Direct Thermal Printing Thermal transfer printing is where a printer prints an image onto paper (or some other material) by melting a coating of ribbon so that it stays glued to the material on which the print is applied. It contrasts with direct thermal printing where no ribbon is present in the process. The main application is to produce barcode labels for product and shipping identification as the ribbons tend to wear out quickly with other applications. Direct thermal printing is the preferred technology for a wide variety of commercial applications including point of sale receipts, luggage tags, faxes, and labels. In the direct thermal printing process, a printed image is produced by selectively heating specific areas of coated thermal paper as it is passed over a thermal print head. The coating undergoes a colour change in the areas where it is heated, producing an image. This temperature-induced colour change is termed as thermochromism (MacLaren etal, 2003). 3
  • 7. Figure: The direct thermal printing process (Source: Mitsubishi, 2010) 5.2 What is Thermal Paper? Thermal paper is a special fine paper that is impregnated with a chemical that changes colour when exposed to heat. It is used in thermal printers and particularly in cheap, lightweight devices such as adding machines, cash registers and credit card terminals. The surface of the paper is impregnated with a solid-state mixture of a dye and a suitable matrix. When the matrix is heated above its melting point the dye reacts with the developer, shifts to its coloured form, and the changed form is then conserved in metastable state when the matrix solidifies back quickly enough. Components of thermal paper include:  Colour former – Leuco dye that is light/coloured or colourless but will change to a dark colour with the addition of a proton which opens the lactone ring.  Colour developer – the weak acid that donates a proton to the colour former, changing it from light to dark.  Modifier/sensitizer – can reduce the melting point of the colour former & developer mix.  Binders – adhere the coating to the paper. The degree to which the colour-reagents (leuco colour former, acceptor) react is precisely controlled by special melting point regulators (sensitisers). In this way, various monochrome shades can be created depending on the amount of energy transferred. The thermal head in the thermal printer transfers the heat to the thermal paper. A thermal head consists of a multitude of miniature heating elements distributed along its printing width. Each of these tiny heating elements is electronically controlled to deliver the right amount of energy at the right time. In this way, the individual colour points are created which together form the final image – text, graphs, bar codes, etc. A backing roll ensures that the thermal paper stays in constant contact with the thermal head. A thermal printer has considerably fewer moving parts than any other printer. 4
  • 8. Figure: A chemical reaction occurs when heat is applied to the paper (Source: Source: EPA, 2010). Typically the coating will turn black when heated. But coatings that turn blue or red are sometimes used. While an open heat source such as a flame can discolour the paper, a fingernail swiped quickly across the paper will also generate enough heat from friction to produce a mark on such paper. 5.2.1 The Structure of Thermal Paper Thermal paper is made up of a base paper layer onto which various layers of chemical compounds are added. The layers typically include a protective topcoat, the reactive thermal coat, a foundation pre-coat and a protective backcoat. Figure: Cross Section of Top-Coated Thermal Paper. (Source: EPA, 2010) (i) Topcoat An optional additional topcoat can be applied to the thermal coat to protect the thermal paper from mechanical abrasion (e.g. through scratches), chemical influences (e.g. through oils, fats, varnishes or organic solvents) and other environmental influences (e.g. through high humidity or water). A topcoat on the front side of the thermal paper also extends the service life of the thermal head of the printer by reducing or eliminating the transfer of residue from the thermal coating on to the thermal print heads. A top coat can also focus the heat from the thermal print head on the active coating and provide better anchorage of flexographic printing inks applied to the thermal paper. (ii) Thermal Coat The thermal coat contains the reactive chemicals which react when heat is applied to produce the image on the paper. The composition of the thermal coat determines the sensitivity of the paper, the image density, the image preservation and the background density. 5
  • 9. (iii) Pre-coat The pre-coat prevents heat conduction into the paper thus enabling the energy from the thermal head to concentrate in the thermal layer in order to produce high-resolution printing. This layer determines the sensitivity of the paper, the brightness and the image density and guarantees an even and smooth surface onto which the thermal coat is applied. (iv) Back-coat A back-coat is also optional but essential when the reverse side of the thermal paper is exposed to migrating adhesives (e.g. adhesives which are used in the production of self-adhesive labels) or plasticizers (e.g. from plastics like PVC). Furthermore, special back-coats prevent the paper from curling and enable the use of water-based solvents, inks and adhesives. 5.2.2 Choosing the Right Thermal Paper To ensure optimum printing results, it is essential that the paper is ideally matched to the application for which it is required and the printer employed. The results of printing may be very different depending on the printer used or the environment in which the product is used. It is thus always necessary to test the product compatibility under the typical printing conditions to achieve the best printout for the final use. Key factors to consider are the paper’s sensitivity, ageing stability, printability and certification by the thermal printer manufacturers: (i) Dynamic and static sensitivity Sensitivity is the decisive factor in the selection of the correct paper. The dynamic sensitivity is particularly important in the choice of paper for certain printers. The faster a printer works, the shorter the time the paper is exposed to the elements of the thermal printing head. Therefore, a fast device requires paper with a higher dynamic sensitivity. If low sensitivity thermal papers are used, the heat applied is insufficient to create a printed result with the necessary density, which in turn reduces the long-term stability of the print. The static sensitivity defines the temperature at which the colour reaction in a thermal paper begins. The static sensitivity value is important when the papers used are employed in high-temperature environments such as for car park tickets. (ii) Aging Stability Developments in recent years mean that it is now possible to buy papers designed to meet different archiving requirements with the best papers offering upto 25 years without fading. (iii) Printability It is possible to buy paper that can be printed on the functional as well as on the reverse side. However, it is important to consider which printing method is used and ensure that it is compatible with the paper type. When printing the thermal layer, care must be taken that the machine settings are adapted to the paper and that the inks selected must always be compatible with the thermal layer, regardless of whether the thermal side or the reverse is being printed. 6
  • 10. (iv) Certification by printer manufacturers The paper must be compatible with the thermal printing head used in the printer in order to guarantee a long service life for the thermal printer and its individual components while achieving a consistently good printed result. It is therefore important to match the grade of thermal paper to be used to the equipment. 5.3 Historical Development of Thermal Paper Thermal papers first came to market in the 1960’s. The first papers were developed by NCR Corporation and 3M. Despite the NCR paper being of inferior quality, whereby the image would fade rapidly, it took a leading market position over time due to its relative cheapness (Answers.com, 2010). The first thermal printing head was developed by Texas Instruments in 1965 and the first thermal printer, connected to a computer terminal, was launched on the market in 1969. During the 1970s Hewlett Packard began integrating thermal paper printers into its desktop computers and plotters. In the 1970s and early 1980s, Japanese producers (such as Ricoh, Jujo, and Kanzaki) using similar dye- based chemistry to that used by NCR, formed partnerships with barcode printer manufacturers (such as TEC, Sato, and others) and entered the emerging global bar code industry, primarily in supermarkets (Answers.com, 2010). U.S. producers such as Appleton (NCR's licensee), Nashua Corporation, Graphic Controls, and others fought to gain market share. Leading pressure-sensitive label producers such as Avery Dennison became major consumers of direct thermal paper for label applications. Sales in thermal paper really took off at the end of 1980’s with the launch of fax machines. This resulted in large investments in production capacity for fax papers. However, in the early 1990’s the fax market had peaked and began to decrease due to the penetration of laser and inkjet fax machines which did not suffer from the fading which was common with thermal paper (Fink etal, 2007). Thermal transfer, laser printing, electro-photography, and to a lesser extent, ink jet printing, began to take market share for industrial and warehouse barcode applications due to better durability. In an attempt to protect their investments in thermal paper production capacity, manufacturers were forced to seek new applications for direct thermal printing. An investment in improved performance and reliability, including image stability, printability and thermal resistance properties, has led to an increasing variety of applications. The rapid development in recent years of fast, quiet, reliable thermal printers has also allowed the speed and accuracy of the printing to improve. The result has been an overall growth in the market for thermal paper which has more than compensated for the drop in thermal fax paper. Today, direct thermal printing technology dominates ticket, tag and label printing and is showing steady growth and diversity. Point-of-sale (POS) is an ever-growing market for thermal printing. Applications include printing of bank statements and ATM receipts, receipts from credit card payments and ticketing for lottery, travel, leisure and sports events. The main uses in manufacturing applications are product labelling, inventory control, tracking, shipping and maintaining of work in progress. Airline luggage tags and boarding passes as well as medical charts have also become interesting markets for the thermal printing industry. 7
  • 11. Direct thermal printing has maintained its market penetration and growth due its inherent benefits over other alternative methods of printing. These can be summarised as follows:  fast printing and no changing of peripherals  high image resolution  very high reliability and durability  small, compact printing units ideal for handheld devices  easy handling in applications  no additional consumables (e.g. toner or inks)  low running costs – low energy and maintenance  low noise due to the "non-impact" printing process  high functionality even under extreme environmental conditions  no fouling of the print head  excellent ink receptivity The traditional drawbacks of thermal paper, such as paper curling and fading of the printed image over time, are less of an issue today as the ability to add special layers has developed over the last five years. These layers also allow printing, most notably advertising, to be applied to the back of the paper. Finally, a range of thermal papers have security measures available to reduce counterfeiting. 5.4 Thermal Paper Market Size and Applications After 40 years, thermal printing continues to be a resilient, growing, diversified industry. The worldwide market for thermal paper in 2006 was approximately 845 thousand metric tons valued at $1.5–1.6 billion at the producer level (Fink etal, 2007). The long term growth rate for thermal paper has been 10% per annum. Growth rates have been above average in developing countries with China’s growth estimated at 15% p.a. (Fink etal, 2007). According to estimates in Europe, about half of thermal paper is used in point- of-sale receipts and nearly a third for self-adhesive labels used for things like deli-trays, shipping labels, and luggage tags (EU Risk Assessment, 2008). The European Thermal Paper Association has indicated the remainder is used for lottery tickets and FAX paper. Figure: Applications of thermal paper in Western Europe 2005/6 (source: EU Risk Assessment, 2008) 8
  • 12. 5.5 The Use of Bisphenol A Bisphenol A is one of the world's most widely used chemicals. Commercial production of BPA began in the 1950’s when large-scale uses for polycarbonate plastic and epoxy resins were developed. The global consumption of BPA in 2003 was estimated to be approximately 3 million metric tons (SRI Consulting, 2004). It is estimated that 1,150,000 tons per year were produced in the EU in 2005/2006 (European Chemicals Bureau, 2008). BPA is mainly used for products which are used in the chemical industry, construction, engineering, iron, metal, plastics and service industries. Of the total global volume produced, 71% is used in the production of polycarbonates (thermoplastic polymers) and 25% in the production of epoxy resins (European Chemicals Bureau, 2008). Polycarbonates are used for example in the manufacture of beverage bottles, baby bottles, cups, plates and mobile phones. Epoxy resins are used for adhesives, paints, varnishes and protective covers for cans to stop corrosion. Figure: Production and use of BPA in Western Europe 2005/6 (Source: European Chemicals Bureau, 2008 ) 9
  • 13. Thermal paper benefits from the economies of scale created through the mass production and use of bisphenol in plastics and resins. It is estimated that 1,890 tonnes of BPA was used in thermal paper in the EU during the period 2005/6, which is 0.16% of total BPA use in Europe (European Chemicals Bureau, 2008). This was used to make 2.4x109 m2 of thermal paper, equivalent to approximately 168,000 tonnes of paper. BPA has been used in thermal paper since the 1960’s due to its known properties as a developer and the fact that it was widely available and believed to be safe (Toussaint, 2010). As thermal paper became more established, industry found other chemicals that also worked and in some applications were better suited. BPA has never got a toehold in higher-end applications due to its relatively low performance (eg; low tolerance to heat and light) but has remained the primary choice for lower-end applications such as supermarket and petrol station receipts because it is roughly half the price of alternatives. Even here some companies are currently using other chemicals. In spite of the volume of research in existence indicating the potential hazards of BPA, it remains a widely used developer in thermal printing due to its efficacy, availability, and low cost (Gregory, 1991). 5.6 Industry Structure, Trends and Profitability 5.6.1 Industry Structure The boom in fax paper in the 1980’s led to a large scale investment in thermal paper manufacturing capacity. When the fax market began to peak and then decline in the early 1990’s there was significant overcapacity and fragmentation in the market, particularly in Europe (Lockie, 1998). This overcapacity forced European producers to look beyond their borders to sell surplus production. Overcapacity also led to poor profitability in the sector and subsequent market exits from paper convertors. Producer consolidation was made difficult due to the lack of small producers in the market. One major manufacturer, Arjo Wiggins of the UK, divested of Appleton following its acquisition in 2000, and subsequently exited the thermal paper market. Instead of consolidation, the industry embarked on a strategy of technology development and differentiation (Lockie, 1998). The result has been a wide range of specialist papers which are high performance, tailored products for a broad range of uses, built on a common technology requiring cheap peripherals. Simultaneously, the industry has invested in automation, production excellence and economies of scale to improve margins. This strategy has enabled the products to be attractive for a wider range of end-users including retail POS, travel, gaming, medical and financial services. There are three distinct layers to the supply chain for thermal paper, namely thermal paper manufacturing, converting and sales/distribution. 1. Manufacturing is defined as both paper production (often from purchased pulp) and finishing. It is undertaken in large, automated production plans. The manufacturing companies either own or license the patents for the different chemical formulations necessary to create the various finishes of thermal paper. 10
  • 14. 2. Converting consists of purchasing paper in jumbo rolls and then slitting them to commonly used sizes for various industries, for example in ATM machines or POS terminals. Converting also includes printing additional information on to the paper, such as advertising. 3. Trade consists of purchasing the ready-to-use roles from the convertors and redistributing them to end customers. Figure: Supply chain for thermal paper (Source: Author) The manufacturing market is now dominated by a small number of global firms who produce a wide range of paper products in addition to thermal paper. These include:  Mitsubishi HiTec Paper  August Koehler  Jujo Thermal Ltd  Appleton  Kanzan  Nashua A more detailed overview of the global manufacturers of thermal paper is included in Appendix 2. Other firms exist but these are largely sister companies to these manufacturers with a focus on specific markets. Most of the global firms have some form of Japanese influence with the exception of Koehler of Germany and Appleton of the US who have remained independent. There are significant barriers to entry in to the manufacturing market including a large capital investment in plant and machinery, the development or licensing of patents, the building of supply chains and the need for a large sales volume to achieve economies of scale. There are a limited number of convertors of thermal paper in the Swedish market. Two major convertors are Schades AS from Denmark, who currently supply Länstrafiken, and RollCo Nordic. Details of these companies are included in Appendix 3. 5.6.2 Industry Trends Despite the drop off in the 90’s for fax paper the worldwide thermal paper consumption is actually increasing and is forecast to continue increasing due to two key factors:  Demand driven by economic growth 11
  • 15.  Technological developments A driving factor behind the success of thermal paper is the growth in global retail commerce. The increased use of bank cards in place of cash also increases the need for proof of purchase receipts, often a regulatory requirement. The low cost of direct thermal technology makes it especially attractive to developing markets. Furthermore, the reliability, low maintenance demands and the non-dependence on peripherals makes thermal printing attractive to these markets which typically lack a service and repair infrastructure (Lockie, 1998). Secondly, there is an exponential growth in the amount of information that is being printed. More and more receipts are being used as a vehicle for advertising. POS receipts are now typically double sided, allowing advertising to be placed on the reverse side, with the front side containing much more than just the details of the items purchased. These printing processes place extra demands on the thermal paper and thus the quality of the thermal paper is of increasing importance. Travel is a growth market for thermal paper. Self-service terminals are increasingly being installed at airports in particular, but also at other central arrival and departure terminals for rail, ferry and bus. Almost all of these devices are equipped with thermal printers for tickets, ticket envelopes and baggage tags. Likewise there is an increasing trend towards printed 2D barcodes as information carriers, away from magnetic strips (Mitsubishi, 2010). Direct thermal printing is becoming increasingly popular for portable, mobile applications thanks to the compact technology used. The increased use of portable POS terminals, in restaurants for example, is increasing the demand for thermal paper. The increase in the use of portable computers and smart phones which can connect to these devices will also provide a further market opportunity for thermal paper. One of the early problems with direct thermal printing was that the paper would fade and curl with time or when exposed to heat, light, moisture or chemicals. Recent developments in coatings, both front and back, have meant that thermal paper can now be bought with a guaranteed ‘non-fade’ lifetime of upto 25 years. Thermal paper with resistance to chemical, moisture and temperature extremes is also widely available on the market. This durability has increased the range of uses for thermal paper to include, for example, guarantees, proof of purchase, legal documents, expense reports, tax records and medical records. Many types of tickets, especially travel tickets for public commuter traffic, are prone to counterfeiting. In Germany alone, damages of hundreds of millions of Euros were reported in 2007 (Mitsubishi, 2010). The thermal paper manufacturers have responded with products which contain a range of security options including watermarks in the paper, colour inlays, UV-fluorescent fibres and UV-fluorescent security features under the topcoat More recently, Ricoh have developed the first rewriteable thermal technology (Ricoh, 2010). This allows images to be created and deleted through the controlled application of heat. In this way, a single card can 12
  • 16. be pre-printed with basic information and then reprinted with supplementary information specific to the user. Ticketing is a major potential application of this technology as the users travel period, zones, etc., can be changed without the need for the issuance of a new card. Mobile payment technology, enabled through smart phone technology, is increasingly being used for all types of transactions, including payments. According to research conducted by Yankee Group and made public at the Mobile World Congress 2011 in Barcelona, mobile transaction volumes are expected to grow at a very high rate, with the estimated total value of global mobile transactions rising from USD 162 billion in 2010 to USD 984 billion in 2014 (ThePaypers, 2010). Mobile banking is also set to become more mainstream. This trend will undoubtedly have an impact on the number of ATM transactions undertaken and could result in more paperless transactions in the future, thereby reducing the demand for thermal paper. The growth in digital cameras, and more recently high quality cameras built into phones, has had a significant impact on the printing industry and paper providers overall as fewer prints are now made (Fink etal, 2007). Similarly, alternative printing technologies such as Dye Diffusion Thermal Transfer (DDTT or D2T2), inkjet and electrophotographic printing are continuing to develop and are predicted to grow, particularly for professional and desktop printing. Inkjet is perhaps the closest rival to thermal printing. However due to the low cost of direct thermal printing relative to inkjet and the simple printing technology which avoids expensive peripherals, thermal printing is still the preferred choice. 5.6.3 Industry Profitability The thermal paper industry is dominated by a handful of large manufacturers. Historic oversupply in the manufacture of thermal paper has led to tough competition and depressed prices in the industry. Despite the specialisation in end products, margins are tight overall with profitability depending on the cost of raw materials and strong automation to achieve economies of scale in production. The high cost of plant and machinery necessitates large sales volumes for manufacturers. During the financial crisis of 2008 the demand for thermal paper dropped. Due to the large fixed cost base of manufacturers (a reflection of the high cost manufacturing infrastructure) it is difficult to reduce costs quickly and as such profitability suffered during this period. More recently demand for thermal paper has increased to pre-crisis levels across all markets and seems to have reverted back to the long term growth of 10% per year, led by growth in Asia and Russia (Jujo, 2010). The problematic oversupply versus demand, a factor of the market for many years, is also predicted to reach a more even balance in the coming years. The price outlook is one of increasing prices for thermal paper, typically more than 10% in 2010/11 across the industry (Jujo, 2010). This is primarily due to the increasing cost of all inputs, in particular freight, chemicals and especially for wood pulp which almost doubled in price in 2009-10 to reach a nine year high due to increased demand combined with supply shortages (Jujo, 2010). Further investments in production capacity are likely to be delayed for the time being thus tightening the spread between supply and demand further. Investments are however likely in further automation, optimisation and for product specialisation. 13
  • 17. 5.7 The Regulatory Environment As a substance Bisphenol A is not banned anywhere in the world. Extensive scientific testing and governmental reviews worldwide have concluded that human exposure to BPA is very low and within the safety limits set by government authorities. However, recent studies using novel low dose approaches and examining different endpoints describe subtle effects in laboratory animals at very low concentrations (EPA, 2010). Some of these low-dose studies are potentially of concern for the environment because the concentration levels identified with effects are similar to some current environmental levels to which sensitive aquatic organisms may be exposed. Regulatory authorities around the world reviewing these low-dose studies have generally concluded that they are insufficient for use in risk assessment because of a variety of flaws in some of the study designs, scientific uncertainty concerning the relevance to health of the reported effects, and the inability of other researchers to reproduce the effects in standardized studies (EPA, 2010). However, since the low-dose studies do raise questions and concerns, some countries have decided to restrict the use of BPA-based material in food contact products for small children (ages 0-3) as a precautionary measure while more data is gathered. Canada is the first country in the world that has classified BPA as a toxic substance. Bans are also in place in Australia, and a few US states. 5.7.1 Regulation in the EU In the EU’s 2008 risk assessment for BPA (European Chemicals Bureau, 2008), analysis was undertaken of the potential health risks from exposure to BPA in the workplace, as consumers, from the environment and from combined exposures. The assessment concluded that “there is at present no need for further information and/or testing and no need for risk reduction measures beyond those which are being applied already. This conclusion applies to the terrestrial and atmospheric compartments, and to secondary poisoning through the aquatic, terrestrial and marine food chains.” In respect of thermal paper the report concluded that “Other uses of bisphenol-A, such as in printing inks and thermal paper, are considered to result in negligible potential for consumer exposure in comparison with the other sources considered and therefore will not be addressed further in this assessment.” Research undertaken by a host of European organisations including The Federal Institute for Risk Assessment (BfR) in Germany, The European Food Safety Authority (EFSA) and the British Environmental Agency have drawn the same conclusions as the EU risk assessment, namely that there is no risk to humans from current sources of exposure to BPA (Specialpapper, 2010). Despite this, France and Denmark have banned BPA in baby bottles. Denmark has taken this one step further and extended the prohibition to all food products for children up to three years old. Furthermore, a recent decision by the EU Commission now means that from March 2011 the manufacture of baby feeding bottles containing BPA in the EU will be outlawed, and from June 2011 the importation and sale of such bottles will be prohibited (ChemSec, 2010). In Sweden, the government recently approved the development and implementation of a national action plan to reduce the presence of toxins in the environment (Swedish Gov, 2010). The Swedish Chemicals 14
  • 18. Agency (KEMI) has been tasked with developing and implementing this plan whereby hazardous toxins and chemicals are to be identified, restricted and phased out. Discussions between Jegrelius and KEMI have confirmed that Bisphenol A in thermal paper is currently outside of the scope of this initiative but that it could be considered for inclusion if a convincing argument is made. 5.7.2 The US Regulatory Environment and the EPA Assessment Companies in the USA don’t have to report on the chemicals that they are using to the federal government, to manufacturers that use their products, or to the public (Schreder, 2010). The Toxic Substances Control Act (TSCA), which was passed in 1976, gives the Environmental Protection Agency (EPA) very limited ability to require safety testing of chemicals before they’re used in commerce. Of approximately 80,000 chemicals used in commerce since 1976 only a few hundred have been tested while more than 62,000 were grandfathered without any requirement that they be tested or their safety assessed (Schreder, 2010). Manufacturers introducing chemicals after TSCA’s passage must notify EPA of the new chemical, but don’t have to test it for health and safety or ensure that the safest chemicals are used. Most human exposure to BPA comes from food packaging (Willhite etal, 2008). Food and food additives are regulated by the US Food and Drug Administration (FDA) and are specifically excluded from the definition of chemical substance under TSCA (EPA, 2010). In order to assess whether changes are necessary to the TSCA the FDA is undertaking research on the affects of exposure to BPA on humans. The FDA is also seeking to strengthen its oversight of BPA so the agency can respond quickly, if necessary, when more scientific evidence becomes available. In uses subject to FDA jurisdiction, public concern has led the industry to move towards non-BPA-based materials in products such as baby bottles, cups, spoons and adult drink bottles, and to explore alternatives in food can linings. Meanwhile, the U.S. Department of Health and Human Services (HHS) has provided interim recommendations on how parents and families can reduce exposures to BPA while additional studies are underway (EPA, 2010). In March 2010, the EPA released a BPA Action Plan (EPA, 2010). In the launch statement, the agency clearly indicated that it “does not intend to initiate regulatory action under TSCA at this time on the basis of human health.” The rationale behind this approach is that the exposure to BPA from sources which sit under the remit of the EPA are small compared to those sources under the remit of the FDA. The EPA is working with the FDA to support further research in the area of BPA exposure. The EPA is however considering two rulemaking actions on the basis of concern for potential risk to the environment from BPA: 1. Adding BPA to new Toxic Substances Control Act (TSCA) 5(b)(4) Concern List 2. Consider TSCA 4(a) rulemaking to develop data on environmental presence and effects The first assessment of the EPA’s bisphenol A action plan will focus on finding safer alternatives to BPA used as a developer in thermal paper. The assessment, entitled “Alternatives to BPA in Thermal Paper 15
  • 19. Partnership” started in July 2011 and is being led by the EPA’s Design for the Environment project (EPA, 2010). The goal is to facilitate a movement towards safer alternative developers in thermal paper. The rationale behind looking at thermal paper is twofold. Firstly, the EPA believes that there are BPA alternatives readily available which may have a better environmental profile than BPA. Secondly, they point to the fact that thermal paper contains “free-BPA” (ie; it is not chemically bound) which can be easily released from the paper onto skin when handled. To implement its goal, a group of key stakeholders has been gathered to identify and develop information on alternatives to BPA in thermal paper. Members of the project include representatives from a wide range of stakeholders including manufacturers, convertors, chemical producers, retailers, green chemists, NGOs and US government officials (see Appendix 3 for a full list of project members). Industry involvement in the project is voluntary but to date includes representatives from the major global manufacturers. Both Canada and the EU are represented on the project, with Paolo Castello from the Joint Research Centre of the European Commission representing the EC. The content of the assessment will include evaluating the hazards associated with BPA and the viable, functional alternatives that act as developers for dyes in this application. Human health and environmental profiles for each chemical will be based on a review of literature in the public domain, structure-activity relationship modelling, and, in some cases, proprietary information shared by stakeholders. To date the working group have identified a list of seventeen chemicals, aside from BPA, which could be used instead of BPA, of which thirteen are currently in use to form thermal paper in the U.S., Europe, and Japan (see Appendix 4). The next milestone, due in April 2011, is to complete a draft evaluation of the ecological and human health hazards and environmental fate of BPA and alternative developers. The final report is due by December 2011. 5.8 Manufacturer/Supplier Interviews In order to validate the findings from the market analysis and to identify suitable bisphenol-free papers, contact was made with five major manufacturers of thermal paper, two convertors and one supplier:  Kanzan  Jujo  Mitsubishi  Koehler  Nashua  RollCo Nordic (Convertor)  Schades (Convertor)  Point (supplier) It was intended that through meetings with these companies the project could gain input which would help Länstrafiken to understand the potential alternatives, allow Jegrelius to undertake a risk assessment on 16
  • 20. the alternatives and to formulate a set of specifications for an ultimate procurement of bisphenol-free thermal paper. 5.8.1 Findings In short, the companies contacted either did not respond to direct requests for information or refused to give information via their convertors/country representatives. Positive meetings and exchanges of information were achieved via three companies who have relationships with the above manufacturers. These companies provided useful insight into the structure of the industry, the availability of bisphenol- free paper and the manufacturers’ positions on BPA-free paper. The following is a summary of findings from these meetings. The sources of individual comments have been kept confidential. (i) Availability of Bisphenol-free Paper Alternative chemicals have been available for many years and have replaced bisphenol in top-coated papers which are designed for premium products such as lottery and flight tickets which have higher performance demands. These higher priced products have thus been able to absorb the additional cost of the alternate chemicals. Due to recent customer demands and increased regulatory investigation manufacturers have invested significant time and money to develop lower cost non-top coated papers. There is now a variety of products available on the market although they are typically double the price of the bisphenol-free alternatives. (ii) Identifying the Chemical Developers Used Jujo, the Finnish manufacturer of the paper used by Länstrafiken today, have been unwilling to declare the chemical developer used in this paper. Other manufacturers have given the same response. A certificate and detailed specification sheet for Jujo’s paper is included in Appendix 1. The certificate states that the paper meets all EU regulations regarding chemical contents. Schades also supplies this paper to other Swedish clients including Skånetrafiken, Kalmar Länstrafik, Jönköpings Länstrafik, ICA, COOP, H&M, Systembolaget and Ax Foods. Without the details of the chemicals used it is very difficult to undertake a risk assessment of these alternative papers. One option suggested is to test the papers using gas chromatography. Reviewing patents was felt to be a dead-end as manufacturers often do not use the chemicals stated in the patent. It is common knowledge that some manufacturers such as Appleton have moved to using bisphenol sulfonate (BPS), a close chemical relative of BPA. BPS has not been studied nearly as extensively as BPA but in-vitro studies indicate it may also disrupt hormones, with studies indicating it has some estrogenic and anti-androgenic properties (Kuruto-Niwa etal, 2005). A recent report suggests that BPS is also more resistant to breakdown in the environment than BPA (Danzl, 2009). It is too early to tell if the other papers which do not rely on phenol chemistry are any better as their chemical constituents are either unknown or have not been sufficiently risk assessed. (iii) The Incentive for Manufacturer’s to Provide Alternatives Price pressures in recent years have resulted in low profitability and a high investment in automation. Manufacturers have a well-oiled machine in respect of their manufacturing and distribution supply chain and are unwilling to disrupt this. Furthermore, changes in the paper can cause problems elsewhere in the 17
  • 21. supply chain, for example printer compatibility, thus requiring significant testing which increases time and cost. It was agreed that client and regulatory pressure are two key levers to force the industry to act. Regulation does not currently restrict the use of bisphenol in thermal paper. In respect of client demand, there is currently only a very small demand from convertors for the bisphenol-free alternatives as most customers still demand the lowest priced products. Manufacturers have therefore not made a significant effort to market these papers for fear of cannibalizing their market share in what is a fiercely competitive market. The current client and product profile of the manufacturers will to a certain extent determine how quickly they act in response to regulatory pressure/client pressure. Where manufacturers rely heavily on sales of non-top coated paper they are more exposed to regulatory/client demands for bisphenol-free paper as top-coated paper is already largely bisphenol-free. Overall it is expected that the market will take many years to move away from bisphenol, especially in developing markets. (iv) Client-Led Initiatives There is a perception that clients in both Sweden and Finland are taking the bisphenol discussion seriously. Meanwhile clients in Denmark, Norway and Germany are less interested in bisphenol-free paper. Examples of major retail clients who have changed to bisphenol-free paper are Lidl of Germany and a variety of Swedish clients including H&M, Ax Foods, COOP and Systembolaget. ICA of Sweden has stated that they will give their stores the option to purchase bisphenol-free paper rolls however it will not be mandated. Following a request from its major clients, including H&M, COOP, Ax Foods and Systembolaget, Schades recently organised a meeting attended by representatives from these companies in addition to representatives from The Swedish Chemicals Inspectorate (KEMI) and Jujo Paper. During this meeting the manufacturer of the developer was disclosed confidentially although the chemical constituents were not. KEMI have stated that they cannot demand to know the developer used providing that the manufacturer ensures compliance with EU regulations. KEMI are also not empowered to undertake a risk assessment of the developer used in place of BPA. ChemSec (The International Chemical Secretariat), based in Sweden, is bringing together their member companies to discuss the issue with a view to creating a platform for knowledge and cooperation amongst its members who include IKEA, B&Q (UK), Boots (UK) and REWE Group (Germany). (v) Conclusion It is possible for Länstrafiken to purchase an alternative to the current Jujo paper from Schades, Point and RollCo Nordic, although the comparison can only be made on price terms. Even paper certified by Nordic Swan contains BPA. Schades state that they have selected Jujo’s paper as it is the cheapest for them to buy in of all the papers available on the market. 18
  • 22. 6 The Outlook for Bisphenol-free Paper In order to assess the outlook for the diffusion of bisphenol-free paper, an analysis of the relative attractiveness of the product and the barriers to diffusion has been undertaken. 6.1 Product Attractiveness to Manufacturers There are many factors to consider when evaluating the speed of diffusion for bisphenol-free thermal paper. At the manufacturing level, these factors may include ease of fabrication, compatibility with other components of a system, performance advantages, or the ability to earn a greater profit while at the same time meeting current and future expected regulations. At the user level product performance, compatibility with existing equipment and cost are the major considerations. The decision by manufacturers to undertake an investment in diffusing an alternative product will be determined by the attributes of the product to be diffused (Rogers, 2003). Furthermore, general risk factors may also have an influence, such as the possibility that economic development may influence the perceived economic risk that a potential adopter faces in the adoption of a technology. The factors which determine the speed of diffusion of a new innovation were identified by Rogers as relative advantage, compatibility, complexity, trialability and observability. These factors along with general risk factors have been evaluated from the perspective of thermal paper manufacturers to understand how motivated they may be to embark on such an investment: ‘+’ denotes that the factor is positive in the manufacturer’s eyes ‘-’ denotes that the factor is negative in the manufacturer’s eyes Attributes Factors Relative Advantage  Allows companies to demonstrate their eco-credentials in the face of growing criticism and regulation  The development of new patents can provide competitive advantage in a fiercely competitive market  New market with high growth potential for new entrants  Possible to charge a premium to existing products  Most clients demand the lowest cost product  Regulations do not restrict BPA  Significant Investment has been made in the existing supply chain  A potential zero-sum gain for existing manufacturers unless higher margins or greater market share can be achieved Compatibility  BPA-free alternatives already available on the market and demanded by a growing number of clients  Existing knowledge regarding thermal printing is still relevant  Compatible with chemicals industry efforts to demonstrate eco- credentials in the face of concerns over growing waste, emissions and pollution  Potential compatibility issue with printing equipment and inks Complexity  R&D expenditure needed 19
  • 23.  Testing will be required to ensure compatibility with the wide range of technical applications of thermal paper Trialability  BPA-free papers can be trialed on those customers that demand them. Observability  Growing market for non-BPA thermal paper  Increased media and regulatory attention to the problems with BPA Risk  Uncertainty regarding market potential  Uncertainty regarding legislative developments  Admitting liability for current product failings could lead to future litigation  Cannibalisation of existing market 6.2 Barriers to Diffusion Despite the availability and potential attractiveness to manufacturers of bisphenol-free paper, there are a number of barriers which will slow the diffusion of these products. The first major barrier, which is typical of any industry, is often referred to as path dependency (Arthur, 1989; David, 1985). Path dependence means that present decision-making is affected by previous events or decisions (Puffert, 2003). The historical events or decisions amplify the initial advantages of an innovation over time due to ‘learning by doing’ (Arrow, 1962) and ‘learning by using’ (Rosenberg, 1982), and network externalities (Liebowitz and Margolis, 1995). The feedback process from markets to technical improvements, creating increasing returns, tends to create a ‘lock-in’ phenomenon. Technological change can go in multiple directions, but once change is initiated in a particular direction, it becomes increasingly difficult to change its course (Roehrl and Riahi, 2000). There are three major sources of path dependency in an established innovation system (Geels, 2004): 1. Rules and regimes (eg; government, regulatory) provide stability by guiding actors’ perceptions and actions. 2. Actors having various (and often vested) interests are embedded in interdependent networks and mutual dependencies which contribute to stability. 3. There are ‘sunk investments’ (for infrastructure, production lines, skills, etc.) which are difficult to abandon, there is technical interrelatedness (or compatibility standards) between various components, and there are increasing returns to the actors with increased use of a technology due to network externality, i.e. an increase in the number of users increases the quality, availability and variety of a technology and related products. In respect of Bisphenol-free paper, it is the manufacturers who need to make changes to their production processes and invest in sales and marketing of these products. Manufacturers are likely to suffer from path dependency due all three of the major sources identified above. Firstly, the current regulatory regime 20
  • 24. tends to favour BPA as it has been significantly tested by regulatory bodies globally and no firm results regarding damage to human health have been presented. The European Thermal Paper Association (ETPA), of which the major manufacturers are members, has recently published a statement to this effect making reference to the various research projects (Specialpapper, 2010). Each of the members of the ETPA has published this statement on their websites. Secondly, the members of the supply chain are embedded in interdependent networks. The paper manufacturers are typically diversified companies who use a wide range of chemicals to manufacture their products. The blend of these chemicals is a source of competitive advantage to these companies placing a strong dependency on the chemical industry. Finally, any end use technology needs to work with the paper inserted into the system. This necessitates a close relationship between the paper manufacturers and the manufacturers of the end-use technology. Changing any of the chemical components of the paper will necessitate a round of testing across all the potential end use technologies, of which there are many. It is reasonable to expect that current manufacturers will not cannibalise their existing markets unless a clear customer demand exists which is more profitable over the long term and/or if regulations demand so. Despite their denials on the risks of BPA, the manufacturers do seem to sense a move towards tighter regulatory compliance for BPA and have responded by developing BPA-free products. How quickly these products diffuse will also be determined by client demand and by the attractiveness of the market. Currently, most clients are still demanding the cheapest option. The main barriers which will slow the diffusion of bisphenol-free paper can be summarised as follows: (1) Political, Institutional and Legislative (2) Economic (3) Technical 21
  • 25. Factors Determining the Rate of Innovation & Diffusion Current Barriers Political, Institutional and Legislative  Lack of consensus on BPA lifecycle hazards  Lack of legislation prohibiting the use of BPA  Environmental pressures vary considerably according to the geographical location of a firm's activity  The “grandfathering” of existing products  Existing supply chain relationships and technology Economic  Commitment to new investment by manufacturers  High barriers to entry for new players  A BPA replacement programme requires action by the whole supply chain  Lack of clear, attractive demand  Historic overcapacity and low profitability  Limited number of BPA-free vendors and lack of market push towards bisphenol free paper. Technical  There are a large variety of thermal paper types for which the new chemical must meet performance requirements  Testing required to ensure compatibility with printing devices, inks, etc. 7 Conclusions and Recommended Next Steps The thermal paper manufacturing industry is an oligopoly characterized by overcapacity and poor profitability. Bisphenol has been used in thermal paper since the 1960’s and continues to be widely used in non-top coated papers due its low price and low product performance requirements. Customers and regulators are increasingly aware of the potential risks of bisphenol which has resulted in investment by the industry in the development of cheaper bisphenol-free alternatives. Non-BPA alternatives are available on the market today and manufacturers are in a position to shift their production and marketing over to non-BPA should it be required. This will however incur cost and risk. While an attributes analysis shows that there are a number of factors in favour of bisphenol-free alternatives, there is a concern by manufacturers that they will cannibalise their existing market and lose market share leading to an overall reduction in profitability. 22
  • 26. 23 In order to increase their marketing of these products, manufacturers need to be motivated through a clear and attractive customer demand and/or legislation. Regulations in the EU and US do not currently restrict the use of bisphenol in thermal paper although regulatory attention and testing is increasing. Media attention to the risks of bisphenol has resulted in action from a number of large Swedish companies including HM, COOP, Ax Foods and Systembolaget. ChemSec are also engaging their members, which include IKEA, to increase awareness and share knowledge on potential alternatives. Overall however, most clients are still demanding the cheaper BPA thermal papers which are typically around half the price of bisphenol-free alternatives. At present there is a gap in knowledge regarding the chemical developers used in bisphenol-free papers. There is also a lack of reliable information regarding the risks and effects of these chemicals. It is therefore difficult to ascertain whether BPA-free papers do in fact have an improved environment profile. An example of a failure in this respect is the use of bisphenol S (BPS) in place of bisphenol A, where BPS is now feared to be more environmentally damaging due to its persistence. Three suppliers of BPA-free paper to the Swedish market have been identified as potential suppliers to Länstrafiken. These companies collectively can provide access to the full range of BPA-free products. The manufacturers will not however divulge which chemicals they use as it is a source of competitive advantage. Sourcing a thermal paper which is not environmentally harmful cannot be achieved without knowing its chemical contents. Regulators do not demand that manufacturers divulge the chemicals used, only requiring that they declare compliance with regulations in the markets in which they are sold. Both Länstrafiken and Jegrelius are too small by themselves to demand that manufacturers provide details of their papers for risk assessment purposes. In conclusion, making a recommendation to Länstrafiken at this time can only be done on price and performance grounds (ie; which BPA-free paper/convertor is cheapest). In order to realise the objectives of the project a clear and attractive customer group is required which collectively can engage in dialogue with manufacturers. It is recommended as a next step that Jegrelius engage as part of a larger initiative, for example with ChemSec, or indeed initiate a project whereby a larger buyers group can be assembled. An example could be to bring together the other members of Svensk Kollektiv Trafik to initiate a nationwide project.
  • 27. 24 References Arrow, K. J., 1962. The economic implications of learning by doing, Review of Economic Studies, 29: 155-73. Danzl, E., Sei, K., Soda, S., Ike, I. and Fujita, M., Biodegradation of Bisphenol A, Bisphenol F and Bisphenol S in Seawater, Int. J. Environ. Res. Public Health 2009, 6, 1472-1484 David, P.A., 1985. Clio and the economics of QWERTY, American Economic Review, 75: 332-337. European Chemicals Bureau, 2008. Updated European Risk Assessment Report of 4,4’-isopropyldenediphenol (Bisfenol A). European Commission, 2010. Joint Research Center, I.f.H.a.C.P., European Chemicals Bureau, European Union Risk Assessment Report, 4,4’-Isopropylidenediphenol (Bisphenol-A). 2010: Oxfordshire Gregory, P. High-technology Applications of Organic Colorants; Plenum Press: New York, 1991. Kuruto-Niwa, R., R Nozawa, T Miyakoshi, T Shiozawa, and Y Terao, Estrogenic activity of alkylphenols, bisphenol S, and their chlorinated derivatives using a GFP expression system. Environmental Toxicology and Pharmacology, 2005. 19: p. 121-130. Liebowitz, S.J., Margolis, S.E., 1995. Path dependence, lock-in and history, Journal of Law, Economics, and Organization, 11: 205 226. MacLaren, D.C., White, M.A. J., 2003. Material Chemistry, 2003, 13, 1695-1700 Puffert, D., 2003. Path dependence, EH. Net Encyclopedia, edited by Robert Whaples, June 10, 2003. Roehrl, R.A. and Riahi, K., 2000. Technology dynamics and greenhouse gas emissions mitigation: a cost assessment, Technological Forecasting and Social Change, 63(2-3): 231-261. Rogers EM. 2003. Diffusion of innovations. 5th ed., New York: Free Press. Rosenberg, N., 1976. Perspectives on Technology. Cambridge University Press, Cambridge. Schreder,E., 2010. On the Money: BPA on Dollar Bills and Receipts. Washington Toxics Coalition. SRI Consulting, 2004. Chemical Economics Handbook, August 2004 Toussaint, G., 2010. BPA in thermal paper use history, Nashua Corporation. p. 2. Willhite, C.C., G.L. Ball and C.J. McLellan. 2008. Derivation of a bisphenol A oral reference dose (RfD) and drinking-water equivalent concentration. J. Toxicol. Environ. Health B Crit. Rev. 11: 69-146
  • 28. 25 Internet Sources Answers.com, 2010. Thermal paper. Downloaded from http://www.answers.com/topic/thermal-paper-1 on the 5th February 2010 ChemSec, 2010. European Commission: EU Ban on Bisphenol A in Baby Bottles Next Year. Downloaded from http://www.chemsec.org/news/news-2010/652-european-commission-eu-ban-on-bisphenol-a-in-baby-bottles-next-year on the 5th February 2010 EPA, 2010. Bisphenol A (BPA) Action Plan Summary. Downloaded from http://www.epa.gov/opptintr/existingchemicals/pubs/actionplans/bpa.html on the 5th February 2010 Fink, U., Hajduk, F., Shimosato, J., Yang, W., 2007. Imaging Chemicals and Materials, SRI Consulting. Downloaded from http://www.sriconsulting.com/SCUP/Public/Reports/IMAGE000/ on the 5th February 2010 Jujo, 2010. CEO’s Business Outlook. Downloaded from http://www.jujothermal.com/news/Latest_news/?id=44 on the 5th February 2010 Lockie, 1998, Hot on the trail of thermal paper, Downloaded from http://findarticles.com/p/articles/mi_qa5371/is_199803/ai_n21420389/?tag=content;col1 on the 5th February 2010 Mitsubish, 2010. Thermal Papers. Downloaded from http://www.mitsubishi- paper.com/en/specialpapers_thermoscript_start.html on the 5th February 2010 Ricoh, 2010. What is RECO-View Thermal Rewritable? Downloaded from http://www.ricoh.com/thermal/product/tr/ on the 12th February 2010 Specialpapper, 2010. ETPA Statement. Downloaded from http://www.specialpapper.se/admin/UploadFile.aspx?path=/UserUploadFiles/BPA/ETPA_BisA_statement_eng.pdf on the 12th February 2010 Swedish Gov, 2010. Downloaded from http://www.sweden.gov.se/sb/d/14350/a/162834 on the 12th February 2010 ThePaypers, 2010. Global mobile transaction value to near USD 1 trillion by 2014 – research Downloaded from http://www.thepaypers.com/news/mobile-payments/global-mobile-transaction-value-to-near-usd-1-trillion-by-2014- research/743415-16 on the 12th February 2010 WHO, 2010. Joint FAO/WHO Expert Meeting to Review Toxicological and Health Aspects of Bisphenol A Downloaded from http://www.who.int/foodsafety/chem/chemicals/BPA_Summary2010.pdf on the 5th February 2010
  • 29. Appendix 1 – Certificate and Specification Sheet for the Paper Currently Used by Länstrafiken 26
  • 30. Appendix 1 Continued – Certificate and Specification Sheet for the Paper Currently Used by Länstrafiken 27
  • 31. 28 Appendix 2: Global Manufacturers of Thermal Paper Company Contact Details Swedish Office/Distributor Enviro. Certificates Activities Undertaken Products BPA-Free Available? Co. Overview Mitsubishi HiTec Paper Europe Mr. Kenneth Elfström HiTec Media Sverige AB Tel.: 0046-8960948 Mobile: +46 (70) 513 36 67 Email: kenneth.elfstroem@hit ecmedia.se Web: http://www.mitsubishi- paper.com Mr. Kenneth Elfström HiTec Media Sverige AB Södra Catalinagränd 27 183 68 Täby - Stockholm Sweden  ISO 14001  FSC  REACH Compliant  NORDIC SWAN  BRC Global Standard - Consumer Product certified  ISO 9001  Supporter of the TWO SIDES campaign  Supporter of the campaign FICTION AND FACTS  E2E production from pulp production to finished product  Patents licensed and R&D support provided by parent co Mitsubishi Paper Mills Japan  Sell thermal paper directly to converters  Paper and labels  Giroform carbonless paper, Jetscript digital imaging paper and Thermoscript thermal paper.  Thermal paper is produced for the following industries: Retail, Entertainment, Transport, Gaming, Banking, Medical  OEM approvals for most brands: Confirm details with Thomas Grammel OEM Manager Tel. +49 461 8695-314 thomas.gramme@mitsubishi- paper.com Yes  Locations: Bielefeld + Flensburg (Germany)  Production Capacity: 155,000 tonnes/year  683 employees  Turnover: 283 million EUR  Owner: Mitsubishi Paper Holding (Europe): 81.6 % Mitsubishi Corporation: 18.4 %.. The European Mitsubishi Paper group belongs to Mitsubishi Paper Mills, Tokyo (MPM) August Koehler Papierfabrik August Koehler AG · Hauptstraße 2 · D- 77704 Oberkirch Tel. +49 7802 81-0 · Fax +49 7802 81-4330 Email: info@koehlerpaper.co m Web: www@koehlerpaper.com Via Convertors/ Distributors  ISO 9001:2008  ISO 14000 : 2005.  Information Security ISO 27001:2005  Occupational Health and Safety OHSAS 18001:2007.  Paper sourced from FSC suppliers  E2E product development, manufacturing, marketing and sales  Own more than 100 patents  Supply papers to converters in 80 countries  Fine Papers & Special Papers  Coloured Papers & Technical Papers  Thermal Papers  Carbonless Papers  Decor Papers  Full range of end-use direct thermal labels, tags and tickets.  Approved by (at least) IBM, Epson, Seiko, MWCR, Hengstler or Mettler- Toledo Yes  200 year old company  Turnover: 540 million euros  Sales of 429,000 tons of paper  Independent company  Head office in Oberkirch and the mills in Kehl and Greiz. Planning US plant  Local offices in Europe (various ex Sweden), US and China Jujo Thermal Ltd Purchase Dep’t: +358 (0)10 303 2418 Email: jujosales(at)jujotherma l.com Web: http://www.jujothermal.com Via Convertors/ Distributors  FSC  PEFC  NORDIC SWAN  ISEGA  ISO 9001:2008  ISO 14001:2004  OHSAS 18001:2007  E2E product development, manufacturing, marketing and sales  Sell thermal paper directly to converters  Manufacturer of direct thermal paper and one-side-coated self-adhesive labels.  Focus on durable thermal papers for labels, tickets and POS use  Epson, IBM and SII approved thermal paper Yes  Locations: Kauttua, Finland  230 employees  Turnover: TBC  Owned by Nippon Paper Industries, Ahlstrom and Mitsui & Co. Appleton Papers Inc 825 E Wisconsin Avenue P.O. Box 359 Appleton, WI 54912-0359 Phone: 01-920-734-9841 Web: http://www.appletonideas.co m Via Convertors/ Distributors  ISO 14001  FSC  E2E product development, manufacturing, marketing and sales  Sell thermal paper directly to converters  Manufacture carbonless, thermal, security papers and Encapsys® microencapsulated products  Full range of end-use direct thermal labels, tags and tickets.  Wide range of OEM approvals: http://www.appletonideas.com/Applet on/en_US/01/pdf/PrinterApplications GuideandApprovedPapers.pdf BPS  N.Americas largest producer of thermal paper  Plants in Wisconsin, Ohio and Pennsylvania,  Employs 2,000 people  100 percent employee owned.  Sells carbonless and thermal products into more than 70 countries  European distribution centers in St. Helens, England, and Utrecht, Netherlands.
  • 32. 29 Company Contact Details Swedish Office/Distributor Enviro. Certificates Activities Undertaken Products BPA Free? Co. Overview Kanzan KANZAN Spezialpapiere GmbH Nippesstrasse 5 52349 Dueren Germany Tel.: +49 2421 5924-0 Fax: +49 2421 5924-19 Email: sales@kanzan.de Web: http://en.kanzan.de Bertil Ranerson BRC Ranerson Consulting Moendalsvägen 3 41263 Gothenburg 031 408825 br@brc.as  ISO 9001  certified according to FSC-Chain of Custody  DIN EN 71.3 norm  E2E product development, manufacturing, marketing and sales  Sell thermal paper directly to converters  Manufacturer of thermal papers and other special products, particularly inkjet papers.  Four main groups of thermal papers: KL - Topcoated, KP - Non- Topcoated, PL - Plotter and KF - POS/Receipts  Full range of end-use direct thermal labels, tags and tickets.  Wide range of OEM compatibilities. Yes  315 employees  Turnover > 100 million Euro.  95% owned by Oji Paper Co., Ltd. which has 20,000 employees achieves an annual turnover of about 8,000 million Euro  Production at Neumuehl mill in Dueren Ricoh Ricoh Industrie France SAS (RIF) 144,route de Rouffach,F- 68920 WETTOLSHEIM COLMAR,France TEL:+33-389-20-4175 FAX:+33-389-20-4040 Email: virginie_ernst@ricoh- industrie.fr Web: http://www.ricoh.com/thermal Various Swedish offices dealing with IT and office solutions. Head office: Sverige Ricoh Sverige AB Röntgenvägen 3 P.O. Box 1536 171 29 Solna Sweden Tel.: +46 (0)8 734 33 00 Fax: +46 (0)8 734 33 1  ISO 90001/2  ISO 14001  ISO 27001:2005- Information Security Management System (ISMS)  Thermal paper manufacturing.  Manufacturer of thermal papers and other special products including rewriteable thermal products  Full range of end-use direct thermal labels, tags and tickets  Range of OEM approvals. Contact Ricoh for details. TBC  Total Co. Turnover: 2,016.3 billion yen (Year ended March 31, 2010)  Total employees: 108,525  Thermal Paper Production Plants in Japan, USA, France and China Nashua Park Ridge Office 250 S. Northwest Highway Suite 203 Park Ridge, IL 60068 Phone +1 (800) 323-4265 Web: http://www.nashua.com tkelley@nashua.com Via Convertors/ Distributors  TBC  Paper convertor and developer of thermal paper products  Full range of end-use direct thermal labels, tags and tickets.  Sell IBM thermal POS paper TBC  Owned by CENVEO, INC. since 2009  7 manufacturing locations in the US.  Parent company (Cenveo) has 8000 employees and a turnover of US 2bn. NCR 3097 Satellite Boulevard Duluth, Ga. 30096-5810 USA +1-937-445-1936 Web: www.ncr.com Point Transaction Systems AB Ljusslingan 4 120 06 Stockholm Sweden Phone: +46 8 566 287 00 Fax: +46 8 641 7670 www.point.se  ISO 9002  ISO 14000  Paper convertor and developer of thermal paper products  Developer of thermal paper solutions  Full range of end-use direct thermal labels, tags and tickets  OEM compatibility dependent on paper – details available on website Yes  The original manufacturer of direct thermal paper  Turnover: USD4.6 billion  Employees: 21,500
  • 33. 30 Appendix 3: Convertors/Suppliers of Bisphenol-free Thermal Paper for the Swedish Market Company Contact Details Products BPA Free? Co. Overview Schades A/S (Current Supplier to Länstrafiken) Måns Palmqvist, Sales Manager Sweden and Finland Muskötgatan 11 254 66 HELSINGBORG Phone +46 4226 3653 mp@schades.com www.schades.com  Small paper rolls and self adhesive labels for retail, financial institutions, lotteries, gaming and entertainment, ticketing, stationary, food and logistics  Their products meet all OEM standards including NCR, ICL, ADS, IBM, Omron and Epson.  Jujo’s bisphenol free paper supplied to LT today  Manufacturing plants in Germany, France, the UK and Denmark.  Employees: 200  Turnover: 82 million Euros (2008)  Produce: 100 million POS rolls and 6 billion labels every year  Owner: Capidea Managment ApS, Denmark Rollco Nordic AB Ellenbergavägen 13 266 32 Munka-ljungby Martin Walfriedsson, vd Phone: 042-298020 info@rollconordic.se  Small paper rolls cash registers, ticketing, payment terminals and ATM machines  Distribute Nordic Swan marked rolls  Can provide bisphenol free paper from any of the five global manufacturers  7 employees  Turnover 20m SEK Point Transaction Systems AB Ljusslingan 4 120 06 Stockholm Sweden Bo Danielsson Phone: +46 8 566 287 00 Fax: +46 8 641 7670 www.point.se  Electronic payment systems and peripherals  They can provide BPA free rolls  Point is the leading provider of electronic payment solutions in Europe focusing on payment services to merchants.  Point is present in 10 European countries.  250,000 customers  480,000 payment installations  turnover of € 150 Million
  • 34. Appendix 4: Members of the EPA’s Alternatives to BPA in Thermal Paper Partnership 31 Thermal Paper Manufacturers Pam Barker, Appleton Papers, Inc. Mike Friese, Appleton Papers, Inc. Pete Popovics, Cenveo/Nashua Jouko Mäkitalo, Jujo Thermal Mari Koskinen, Jujo Thermal Fred Paris, Kanzaki Michael Horn, Koehler Paper Dirk Keller, Koehler Paper Bernd Gerecht, Mitsubishi Takahisa Kato, Mitsubish Theodore Rice, Mitsubishii Gary Toussaint, Nashua Corporation Trevor Kelley, Nashua Todd Ostrowski, Tighe& Bond Thermal Paper Converters Doug Dahrsnin, LabelWorld Dave Starr, Heartland Label Printers Andrew Dennison, Heartland Label Printers Dave Blum, Heartland Label Printers Jim Check, Heartland Label Printers, Inc. Mike Rapier, Liberty Paper Products, LLC Jerry Butler, NCR Bram van Staalduinen, NCR Debora Jeske, NCR Steve Nahm, NCR Terie Syme, Prestige Label Co. Stacey MacNeil, UPM Raflatac Steven Schwartz, RiteMade Paper Chemical Manufacturers (Developers and Color-formers) Steve Aderman, AdChem Technologies Al Wiedow, BASF Omi Kapel, BASF Frank Kearney, ESCO Robin Heath, Nagase America Corporation John Wrubel, Nisso America Toshiyuki Iwama, Nisso America Tadashi Kawakami, Nisso America POS OEM Manufacturers Ron Mateas, Epson Sal Rizvi, Star Micronics America, Inc Retailers Drew Du Bois, Kroger Jeff Brown, Safeway Roger McFadden, Staples Holly Wipf, Target Zach Freeze, Wal-Mart Jason Wadsworth, Wegmans Joe Dickson, Whole Foods International Paolo Castello, EC Joint Research Centre Kate McKerlie, Environment Canada Green Chemistry Consultants John Warner, Warner Babcock Institute Sarah Newsky, Warner Babcock Institute Manfred Krautter, EcoAid Trade Associations Steven Hentges, American Chemistry Council Erik Lieberman, Food Marketing Institute John Billings, Food Marketing Institute David Wagger, ISRI Sarah Walczewski, Retailer Industry Leaders Association Trade Unions Jackie Nowell, UFCW NGOs Mark Rossi, Clean Production Action Michelle Harvey, EDF Sonya Lunder, EWG David Andrews, EWG Sarah Janssen, NRDC Darby Hoover, NRDC Brian Penttila, Pacific NW Pollution Prevention Resource Center Pam Eliason, Toxics Use Reduction Institute Erica Schreder, WA Toxics Coalition Government John Bucher, NIEHS Kris Thayer, NIEHS Cherie Estill, NIOSH Steve Schrader, NIOSH Mike Babich, CPSC Vanee Komolprasert, FDA Gary Ginsberg, Connecticut DPH Terry Goldberg, NEWMOA Technical Consultant Lauren Heine, Clean Production Action Thermal Paper Manufacturers Pam Barker, Appleton Papers, Inc. Mike Friese, Appleton Papers, Inc. Pete Popovics, Cenveo/Nashua Jouko Mäkitalo, Jujo Thermal Mari Koskinen, Jujo Thermal Fred Paris, Kanzaki Michael Horn, Koehler Paper Dirk Keller, Koehler Paper Bernd Gerecht, Mitsubishi Takahisa Kato, Mitsubish Theodore Rice, Mitsubishii Gary Toussaint, Nashua Corporation Trevor Kelley, Nashua Todd Ostrowski, Tighe& Bond Thermal Paper Converters Doug Dahrsnin, LabelWorld Dave Starr, Heartland Label Printers Andrew Dennison, Heartland Label Printers Dave Blum, Heartland Label Printers Jim Check, Heartland Label Printers, Inc. Mike Rapier, Liberty Paper Products, LLC Jerry Butler, NCR Bram van Staalduinen, NCR Debora Jeske, NCR Steve Nahm, NCR Terie Syme, Prestige Label Co. Stacey MacNeil, UPM Raflatac Steven Schwartz, RiteMade Paper Chemical Manufacturers (Developers and Color-formers) Steve Aderman, AdChem Technologies Al Wiedow, BASF Omi Kapel, BASF Frank Kearney, ESCO Robin Heath, Nagase America Corporation John Wrubel, Nisso America Toshiyuki Iwama, Nisso America Tadashi Kawakami, Nisso America POS OEM Manufacturers Ron Mateas, Epson Sal Rizvi, Star Micronics America, Inc Retailers Drew Du Bois, Kroger Jeff Brown, Safeway Roger McFadden, Staples Holly Wipf, Target Zach Freeze, Wal-Mart Jason Wadsworth, Wegmans Joe Dickson, Whole Foods International Paolo Castello, EC Joint Research Centre Kate McKerlie, Environment Canada Green Chemistry Consultants John Warner, Warner Babcock Institute Sarah Newsky, Warner Babcock Institute Manfred Krautter, EcoAid Trade Associations Steven Hentges, American Chemistry Council Erik Lieberman, Food Marketing Institute John Billings, Food Marketing Institute David Wagger, ISRI Sarah Walczewski, Retailer Industry Leaders Association Trade Unions Jackie Nowell, UFCW NGOs Mark Rossi, Clean Production Action Michelle Harvey, EDF Sonya Lunder, EWG David Andrews, EWG Sarah Janssen, NRDC Darby Hoover, NRDC Brian Penttila, Pacific NW Pollution Prevention Resource Center Pam Eliason, Toxics Use Reduction Institute Erica Schreder, WA Toxics Coalition Government John Bucher, NIEHS Kris Thayer, NIEHS Cherie Estill, NIOSH Steve Schrader, NIOSH Mike Babich, CPSC Vanee Komolprasert, FDA Gary Ginsberg, Connecticut DPH Terry Goldberg, NEWMOA Technical Consultant Lauren Heine, Clean Production Action
  • 35. Appendix 5: List of Known or Expected Functional BPA Alternatives for Use in Thermal Paper 32
  • 36. Appendix 5 (Continued): List of Known or Expected Functional BPA Alternatives for Use in Thermal Paper 33
  • 37. 34
  • 38. 35 JEGRELIUS – INSTITUTE FOR APPLIED GREEN CHEMISTRY Studiegången 3  SE831 40 Östersund WWW.JEGRELIUS.SE We are a section of the Jämtland Regional Council