NextCycle IML - Brochure EN

Dear reader,

In mold labeling has been the best-in-class sustainable label solution for your PP packaging over the past 30 years. However, as new legislative requirements are being announced and introduced and as brand owners, retailers, packaging converters and consumers’ expectations about (plastic) packaging change, the momentum to up the game of IML rose.

In an ever-evolving packaging landscape, one of the promises we make is to offer you innovative solutions that enable your packaging to be recyclable, reusable or compostable. You reading this brochure is the best proof that we keep our word.

Imagine a label solution that finds the right balance between brand owners, recyclers and consumers, only holding benefits for each. Imagine a label solution that no longer holds a trade-off between looking good on shelf vs. performing well at the recycling plant. Imagine a label solution that contributes to the availability of high-quality food-grade rPP, instead of hindering it.

We proudly introduce NextCycle IML™, an IML solution designed to disrupt the status quo of PP packaging decoration. Holding everything, for everyone, it’s sustainable, good-looking and affordable. It turns imagination into reality.

Imagine your packaging to take part in shaping the future of plastic packaging.

Peter Grugeon, Managing Director MCC Verstraete

And the entire MCC Verstraete team

NextCycle IML™, the fine art of recycling is a publication of MCC Verstraete. The content of this document, including attachment(s) are property of MCC and should be treated as confidential. It cannot be shared with or forwarded to third parties and cannot be published without our prior permission. If you have any questions regarding the use of this document, please email to Gerlind Martens (Marketing) - gerlind.martens@mcclabel.com. Printed on FSC recycled paper.

NextCycle IML™

Opening doors to food-grade rPP through innovation and collaboration

As part of its sustainability strategy, MCC Verstraete is an active member of RecyClass, the cross-industry initiative that is leading the Design for Recycling efforts in Europe. Following RecyClass’ technology approval of NextCycle IML™, we spoke to Fabrizio Di Gregorio, Technical Director of Plastics Recyclers Europe, and Nico Van de Walle, Product & Circular Economy Manager at MCC Verstraete, about why innovation within the framework of RecyClass is crucial for the future of IML packaging.

First of all, please tell us who is RecyClass?

Fabrizio: RecyClass is a non-profit organization working across the value chain on developing standardised testing protocols, design for recycling guidelines, and certification schemes that contribute to the circular journey for plastics. To date, we have more than 70 members representing brand owners, retailers, converters, and raw material producers, supported by a large number of industry and trade associations across Europe.

RecyClass has set up five Technical Committees, one for each type of plastic packaging – HDPE, PP

(where MCC Verstraete is represented as a member of the Advisory Board), PO films, PET, and PS – and they work on the recyclability evaluation protocols, assess innovative technologies and products, and update the Guidelines. There are also taskforces specializing in claims, recycled plastics, sorting, and decoration.

Why is RecyClass so important for the European plastics industry?

Fabrizio: We launched RecyClass with the ambition to close the gap between the plastics recyclers and all other actors in the value chain, because there was,

and still is, a lack of knowledge about recycling and waste management in general for plastics and how the technology works. In particular, RecyClass was set up to support the plastics industry with reliable recommendations that are fact-based and scientifically proven in terms of design for recycling, because it is well known that one of the main issues related to plastic packaging waste is the design.

The Ellen MacArthur Foundation reported in 2018 that at least 50% of plastic packaging on the global market is not recyclable simply because of the design, meaning that if we are not able as an industry to design plastic packaging so that it facilitates sorting and recycling processes, as well as increases the quality of the recyclates, it will remain a huge problem.

RecyClass offers the tools needed to move toward a circular economy for plastics. With the revision of the EU Packaging and Packaging Waste Directive on the horizon, it is more important than ever that we stand together as an industry to meet new challenges through innovation and collaboration.

MCC is known as a pioneer in sustainability and recycling. Why did MCC Verstraete choose to join RecyClass?

Nico: MCC Verstraete is part of RecyClass because we firmly believe that is the best base for supporting current and future legislation. There are many different design for recycling guidelines in different organizations around the world, but RecyClass is leading the way as we can see from the wide-ranging support from members, which include many of the world’s biggest brands and converters.

We believe that the scientific approach and the high testing standards of RecyClass are the best in the world, and that this lays the foundation for innovation for a circular economy for plastic packaging. With its rigorous approvals process, it also adds value for the whole industry and in the end for the consumer.

And in regard to Design for Recycling, what are the current challenges for packaging decoration and specifically for PP packaging?

Fabrizio: First of all, decorations can affect the sorting process, because it can hamper correct identification by the near infrared (NIR) technologies in the sorting line. Secondly, packaging decoration can impact the recycling process. There are so many different types

of applications, from self-adhesive labels, wraparound labels and in mold labels to shrink sleeves. So, we are talking about various facestocks, inks, varnishes and adhesives that can all negatively affect recycling if not properly designed. But of course, decoration is a necessary part of packaging, so the goal is to find solutions that balance the function of the decorations with the packaging recyclability: it means to have solutions ensuring the packaging remains fully detectable by the NIR technology and doesn’t contaminate the recycled plastic.

Nico: For MCC Verstraete, it is about making sure that you create mono-material solutions to ensure correct sortability without any loss of materials. Today there is a trade-off between brand owners and recyclers. Brand owners want a lot of decoration to make their packaging stand out on the shelf, whereas from a design for recycling standpoint, often decoration is creating limitations when it comes to recycling. These two forces are pulling the rope in opposite directions, so to speak. Our ambition is to create innovative solutions, like NextCycle IML™, that eliminate that trade-off for the benefit of all parties.

As a mono-material solution, would you agree that standard PP IML packaging has already set the benchmark as the best-in-class solution?

Fabrizio: Yes indeed, the PP Technical Committee of RecyClass has tested standard PP IML packaging according to our sorting and recyclability testing protocols, confirming that even though traditional IML labels cannot be separated from the PP container, there are advantages over other types of labels or

Nico Van de Walle Product & Circular Economy Manager at MCC Verstraete

“

I see that NextCycle IML™ offers two main benefits to brand owners, because it allows them to balance their marketing needs with recyclability demands. At the same time, they can play an active role in preparing waste streams for the production of high quality, natural or colored plastic recyclates.”

Fabrizio Di Gregorio, Technical Director at Plastics Recyclers Europe

decoration, because as a mono-material solution, it can be sorted with very high efficiency.

And when it comes to the recycling process, the results are very good, in particular when the amount of printing is limited and the ink chemistry is non-bleeding. If the inks bleed, the technology is considered as noncompatible because they contaminate the washing water, which is recirculated in the system causing the inks to spread throughout the process. Another advantage is that IML labels are welded to the container, so there is no glue involved.

For the available colored PP waste stream, the assessment was positive and an endorsement of full compatibility of standard IML technology was given where the weight of the printing inks represents less than 1%. When they constitute above 1% of the total weight, they have limited compatibility with recycling. Even so in both cases, there is compatibility with the colored PP stream. This, however, is not the case for the transparent, or natural, PP waste stream as the inks, even when below 1%, still cause too much discoloration of the rPP. For this reason, standard IML technology has been classified as having low compatibility with the transparent rigid PP stream.

What are the main benefits of NextCycle IML™ and to what extent do you think this innovation will disrupt the market?

Fabrizio: I see that NextCycle IML™ offers two main benefits to brand owners, because it allows them to balance their marketing needs with recyclability demands. At the same time, they can play an active role in preparing waste streams for the production of the high quality, natural or colored plastic recyclates that they

will need by 2030 when the legislation on the content of recycled plastic in packaging comes into force.

Nico: As a next generation solution for sustainable rigid PP packaging, NextCycle IML™ labels are uniquely designed to separate from the container during the mechanical recycling process, while staying securely fastened with no impairment to its fusing properties during its lifecycle including when the packaging is stored in damp and cold conditions.

MCC Verstraete created NextCycle IML™ to give brand owners more freedom in terms of decoration and design while still allowing the container and label to be recycled in the existing PP waste stream. This is a new disruptive concept which will facilitate the production of high purity, and potentially food grade, rPP without the need to change any aspect of the current mechanical recycling process.

NextCycle IML™ has been granted Technology

Approval by RecyClass. What does that mean for converters, brand owners, recyclers and even for the end consumer?

Fabrizio: RecyClass-approved technology enables brand owners to fulfil both their own sustainability objectives and also comply with regulations. When using for example the approved NextCycle IML™ technology to receive official product approval for the final packaging, they can put the recyclability class and the RecyClass logo on the product.

Fabrizio Di Gregorio Technical Director at Plastics Recyclers Europe

And because the RecyClass Certification Scheme is the strictest worldwide, consumers know that they can rely on the recyclability claims from the brand owner.

Why does the industry need to continue innovating and how do you envisage the evolution of IML in terms of recyclability?

Fabrizio: At the end of the day, increased recyclability will become compulsory in Europe by 2030. It is already the clear intention of the legislators that a minimum rate of recycled plastics in packaging will become mandatory and that could be between 20% and 30%.

This will apply to all plastic packaging applications meaning rigids, flexibles, polyolefin, and others like polyester, whether they are food contact or not. So, we need innovation to scale up the production of rPP to allow brand owners to meet those targets.

Another way to increase the quantity of rPP is to improve the quality and we can do that by dividing the plastics into more waste streams. In most EU countries, there are currently only two plastic waste streams: one for colored including white and one for transparent materials. Standard IML labels affect the transparent stream negatively, but this stream is the most valuable as transparent rPP can replace virgin materials, so we need to increase the efforts in this area by implementing

solutions where the label can be separated out. Looking further ahead, the ambition is also to divert white plastics as a separate stream for the same reason.

Nico: Looking at the test results for transparent or natural standard PP IML packaging, there was a noticeable discoloration of the pellets, which turned greyish or green, depending on the pigments used in the artwork, because the IML labels don’t separate in the recycling process. As a consequence, the technical committee decided it was low compatible with the waste stream. This would be the same for a purely white plastics waste stream. In both cases, our NextCycle IML™ technology overcomes these problems.

We strongly believe that mechanical recyclers need to be able to produce enough affordable high-quality and potentially also food-grade rPP, so brands can comply with the regulations cost-effectively. With only chemical recycling, I don’t think we will have enough affordable volume by 2030, which is another main driver for introducing NextCycle IML™ to the market.

In summary, MCC Verstrate’s collaboration with RecyClass is moving the market forward with truly sustainable solutions with NextCycle IML™ opening the door for creating food-grade packaging with recycled polypropylene.

Use the RecyClass online tool to check how NextCycleIML™ helps to make your packaging fully circular: recyclass.eu/tool

“

This technology is promising because it behaves like a separable label at recycling. Thus, it preserves the quality of the packaging body (clear or white PP) by transferring the decoration (inks and lacquers) to a component of the packaging that can be automatically removed at the recycling step. As the NextCycle Technology is today only available as a white label, label coverage should be limited to enable the transparent packaging to be oriented to the clear or transparent PP stream (as any other label).”

Coralie Rambaud, R&D Project Manager, eco-design at PAPREC Plastiques

Introducing NextCycle IML™

The next generation in mold labels

The latest in a series of market-leading innovations from MCC Verstraete, NextCycle IML™ adds significant recycling benefits to the already established recognition of IML as the most sustainable and efficient decoration process for rigid plastic packaging. Developed to enable brand owners meet the targets for recycled content in plastics packaging as set out in the forthcoming legislation and any other regional

regulatory requirements, NextCycle IML™ comes with full Technology Approval from RecyClass.

“MCC Verstraete is committed to a sustainability strategy with a clear vision and mission, continuing to set higher standards for a sustainable future for IML in anticipation of more market regulation. NextCycle IML™ is a completely new concept which promises to disrupt the rigid PP packaging and recycling industry

by enabling high purity, and potentially even foodgrade, rPP to be derived from mechanical recycling,” said Nico Van de Walle, Product & Circular Economy Manager. “This is an important new milestone not just for MCC Verstraete, but for the entire rigid PP packaging industry.”

Addressing the bottleneck NextCycle IML™ technology will help resolve the current bottleneck by enabling recyclers to provide large quantities of improved quality rPP to meet the growing demand. Engineered for mechanical recycling, the innovation has already been classified as “fully compatible with the existing European industrial recycling processes for PP containers” by RecyClass, the cross-industry initiative from Plastics Recyclers Europe which evaluates the recyclability of plastic packaging.

Today, the majority of food-grade rPP comes from chemical recycling, but this process is quite expensive and lacks the volume to meet the market need for foodgrade rPP as this continues to increase exponentially. Secondly, chemical recycling is not always recognized as recycling which could cause problems in the future, and there are still many ongoing discussions around the overall environmental impact. In contrast, mechanical recycling offers the potential to improve and increase rPP output with NextCycle IML™, at lower cost and without any changes to the process.

Meeting the challenge

The challenge for the Product Innovation Team was to devise a new product that built on the excellent recycling properties of standard IML, which has been the best-in-class solution for rigid plastic packaging for over 30 years.

Standard IML decoration uses polypropylene (PP) label material which is printed on an offset press before being fused onto a PP container during the molding process. As a mono-material solution, IML packaging can be sorted and recycled very easily, making it so far one of the most environmentally friendly solutions on the market.

“IML has always been ahead of its time because it can be recycled in the normal waste streams; this has been the case for decades, but we are searching for more sustainable solutions for the future, such as NextCycle IML™, because we know that we have to do even better for our customers and for the planet,” said Nico.

With the NextCycle IML™ technology, mechanically recycled transparent IML packaging can be turned into transparent rPP, white NextCycle IML™ packaging into white rPP. Put simply, the company has found an innovative way to ensure that a fully decorated IML packaging can be mechanically recycled without any impact of the IML label on the rPP, without any additional investment needed from neither the recycler nor the packaging converter.

“The biggest challenge in this development was to create the perfect adhesion that will simultaneously allow the label to stay securely on the container during the product’s lifecycle right through to waste sorting but will then also release easily once it enters the grinding process,” explained Benedict Huysman, Product Innovation Manager at MCC Verstraete.

So how does it work?

“One of the main benefits of NextCycle IML™ is that the consumer does not have to get actively involved but can simply recycle the PP container in the usual way,” continued Benedict. “All the action happens at the recycling plant, where the NextCycle IML™ printed label separates automatically and fully from the PP container during the grinding process.”

All post consumer packaging waste that enter the MRF are sorted according to type to ensure the purity of the end product. At the recycling plant the sorted packaging waste is grinded and at this very moment, the NextCycle IML™ label automatically detaches from the packaging. Once the flakes have been washed and dried in the normal way, the lighter label flakes are separated from the heavy fraction container flakes using air elutriation. These clean container flakes are collected and extruded into clean rPP pellets which are used for for final rPP compounding and eventually new packaging. The label flakes as part of the light fraction can still be recycled as part of the colored rPP stream or send for chemical recycling. So all elements of the initial packaging are being recycled in practice without any material losses or residue.

Another critical aspect of NextCycle IML™ is that the offset-printed decoration is done with special nonbleeding printing inks, which avoids problems with the water becoming contaminated during the washing process.

As the ultimate validation, NextCycle IML™ has been granted RecyClass Technology Approval which means it has been tested under authorized lab conditions according to established protocols and deemed to be fully compatible with EU rigid PP recycling streams. The RecyClass approval covers colored, including white, and rigid PP packaging.

And what is the outcome?

Packaging decorated with NextCycle IML™ can be recycled via the established mechanical method without any modifications. Vitally, the outcome is ‘clean’ rPP that enables the potential to produce food-grade rPP, which is a huge achievement and the start of a new era in sustainability for IML. For brand owners, the better quality rPP will support them in achieving

Benedict Huysman, Product Innovation Manager at MCC Verstraete

recycled content targets and could offer the potential to be awarded bonuses within the future modulated EPR schemes.

“We are convinced that NextCycle IML™ ’s excellent value proposition and the positive contribution it makes to the circular economy mean that this solution will gradually replace standard IML with Europe as first mover market,” said Nico. “We have fixed the roof before it starts raining so to speak, because there is no doubt that future legislation will demand even more content of rPP in food packaging applications. This is MCC Verstraete optimizing IML technology because we take our responsibility very seriously and support the market any way we can.”

In conclusion, Benedict added, “This is an incredibly important innovation and a big accomplishment for everyone involved in bringing it to market. We are now working to expand the portfolio to offer the NextCycle IML™ technology for all our look&feel options, because we believe that we have the best future-proof IML solution for the circular economy.”

“ The consumer doesn’t have to get actively involved but can simply recycle the PP container in the usual way. All the action happens at the recycling plant, where the NextCycle IML™ printed label separates automatically and fully from the PP container during the grinding process.

NextCycle IML™: A milestone in the closed loop for food-grade rPP

Polypropylene is one of the most dominant polymers in the packaging industry. As brands pledge to reduce the environmental impact of their packaging, the demand for recycled content in plastic packaging continues to rise.

Brands and retailers need to take a ‘Design for recycled content approach’ if we are to make a sizeable shift in the plastic circular economy. As such we need packaging designed for the plastic circular economy and investment in the latest technologies to produce high quality recyclates. This will mean using rPE or rPP when possible. Better still, using it in preference to virgin.

Dedicated to finding a solution to turn post-consumer packaging into circular recycled polypropylene, MCC Verstraete became part of the NEXTLOOPP project. NEXTLOOPP is developed by Nextek, an independent consultancy that provides technological solutions to the challenges of the plastic recycling. The NEXTLOOPP project’s goal is to close the loop on post-consumer polypropylene in order to produce

Prof. Edward Kosior, Managing Director at Nextek

food-grade material, by improving current sorting and decontamination processes to increase economic efficiency.

This seamlessly coincides with the recent launch of NextCycle IML™ “MCC Verstraete’s NextCycle IML™ innovative technology is the product of in-depth research into mono-material IML packaging that is fully recyclable.

Their ground-breaking intelligent in-mold labels allow for best in class recycling of decorated mono-material IML packaging. By meshing the unique innovative IML solution with the state-of-the-art sorting and decontamination process developed by Nextek Ltd, we are now able to demonstrate that fully decorated PP IML packs can be recycled into food-grade rPP that can be turned back into new food IML packaging.

This is a major milestone in MCC Verstraete’s quest to increase the availability of affordable high-quality food-grade mechanically recycled PP,” says Prof. Edward Kosior, Managing Director at Nextek.

In the Borealis Circular Sustainable Cascade model, the highest priority is put on Advanced Mechanical Recycling. Several innovation projects are in progress to further enhance mechanical recycling of products using feedstock based on post-consumer recyclate (PCR). The NextCycle IML™ innovation is a breakthrough, which allows to make major steps towards an upgraded mechanically recycled polypropylene (rPP). This can be seen

“

as a new step towards making the impossible – possible! We are in the right process flow of launching in the near future advanced mechanically recycled PP approved for food packaging.”

Peter Voortmans, Global Commercial Director Consumer Products at Borealis Group

Taking up responsibility with NextCycle IML™

As a food packaging producer, SPIES is very aware of its environmental responsibility and has always been a sustainability frontrunner in its industry. “Food waste prevention is high on the agenda, but on another level, we engage ourselves to be in the driver’s seat in cocreating fully recyclable and circular economy proof packaging. The need is high, and time is ticking. We’re taking up responsibility for the environment and our customers, moving forward with different technologies that pave the way for food-grade rPP, ” says Guido Pöhls, Head of R&D at SPIES Packaging.

No complexity

“One of the challenges we have – or should I say: had - to tackle is separating the inks and colors from

the container during the recycling process, in order to attain high-purity rPP. The NextCycle IML™ technology has given us the means to do so.

Our R&D team tested MCC Verstraete’s NextCycle in mold labels extensively. We examined the technology with containers of different grades of polypropylene and with different label designs, all showing good results. The good news is that we can use these innovative labels without special new technology from our end. We can process them like we process standard IML labels today,” adds Guido.

Preparing for the future SPIES Packaging is an active member of the HolyGrail2.0 project. To both create the sustainable

Germany-based SPIES Packaging thrives on its innovative perspective on packaging solutions, driven by the vision to establish a real, working circular economy where plastics are acknowledged as a valuable, sustainable packaging resource. No wonder the company’s R&D team was thrilled to dive into NextCycle IML™’s features.

Images: © SPIES Packaging

packaging of the future for its customers and the recycling process of the future for the plastics industry, they’ve been exploring the possibilities of combining Digital Watermarks with NextCycle technology. “This is a textbook example of how we move forward with different technologies to get that high-quality recycled resin for new packaging the industry needs so desperately. But it’s not just in our hands. We need all parties from across the value chain to get to that circular economy for plastics!”

NextCycleIML™ is a RecyClass approved technology. Preparing for the future, SPIES Packaging has the intention to apply for the letter of compatibility for its range of NextCycleIMLTM equipped packaging.

“ The good news is that we can use these innovative labels without special new technology from our end. We can process them like we process standard IML labels today.”

Guido Pöhls, Head of R&D at SPIES Packaging

Aiming for food-grade

A powerful statement by Mark Roberts, Berry CPI’s Circular Value Chain Director in charge of accelerating and delivering circular economy growth. Part of industry-leading packaging manufacturer Berry Global, Berry CPI creates high-quality packaging solutions for the cosmetic, pharmaceutical, food and technical industries.

Berry is known as a pioneer in the development of sustainable plastic packaging. They set high standards and even stricter sustainability targets for their product range, aiming at 100% reusable, recyclable or compostable packaging by 2025.

No downgrading

“In mold labeling has always been in our decoration scope as it is linked to light weighting packaging, which is a method to minimise carbon footprint. Compared to other decoration methods, IML also reduces the amount of rejects and changeover time,” says Mark.

“As we aim to achieve closed loops for the resin of our products with mechanical recycling, we were triggered to look into the possibilities of NextCycle IML™. Decoration often disturbs the recycling process and reduces the quality of the recycled material, especially when combining transparent packaging decorated with IML it is difficult and sometimes impossible to achieve light colours. The NextCycle IML™ technology looks promising on that front, as it enables us to separate the decorated

light fraction from the undecorated rigid fraction. This means the main part of the plastic can be recycled without downgrading.”

Production & recyclability test at scale Mark and his team were among the first packaging converters to test the NextCycle IML™ technology.

“We tested NextCycle IML™ at scale in our production site in Blackburn. The changeover between a standard IML and the NextCycle IML™ did not present any problems. The amount of rejects was lower compared to standard IML, but this may be caused by the thicker film of the NextCycle test labels. Next, we tested the recyclability at our recycling facility Plasgran at Wimblington and achieved a white rPP using only dry mechanical recycling methods.

In conclusion, we can state that we would recommend NextCyle IML to our customers in circumstances where sustainability is a priority. The technology enables to reuse the injection moulded part of the packaging without downgrading, and contributes to closed loops for the resin originating from the on-site rejects (PIR), or from standard mechanical recycling facilities (PCR). Using innovative recycling installations, like our new Plasgran recycling site at Leamington Spa, it will only support our goal of providing recycled

food grade rPP to the market!”

“NextCycle IML™ enables closed loops for the resin originating from the on-site rejects (PIR), or from standard mechanical recycling facilities (PCR).

Using innovative recycling installations, it will only support our goal of providing recycled food-grade rPP to the market.”

“ The NextCycle Technology will only support our goal of providing recycled food-grade rPP to the market!”

Mark Roberts, Circular Value Chain Director at Berry CPI