Shortage of Paper Endangers Rebound of Graphic Industry World-Wide (whattheythink.com)

After three years of hard fought legislative sessions, the Great Lakes Graphics Association is pleased to announce that the Illinois Graphic Arts sales tax exemption has finally been restored. Because of GLGA’s efforts in Springfield, the Graphic Arts sales tax exemption became part of the Illinois Manufacturing Machinery and Equipment exemption. The amendment was part of the Illinois state budget bill, which was approved on July 6, 2017, by a state Senate vote overriding a veto by the Illinois governor. The law now establishes a permanent sales tax exemption for graphic arts and printing equipment, which at a minimum is equal to $6,254 for every $100,000 spent on covered equipment. Graphic arts equipment is defined in Illinois as “graphic arts machinery and equipment, including repair and replacement parts, … and includes chemicals acting as catalysts [that] effect a direct and immediate change upon a graphic arts product.” The exemption was effective July 1, 2017. Click Read More below for more of the story.

Sun Chemical has collaborated with HP to launch sustainable flexible packaging produced with HP’s Indigo digital press and Sun Chemical’s new solventless lamination solution SunLam. Due to its fast-curing, ultra-low monomer and solvent-free properties, SunLam can help brands improve their sustainability and expand the circular economy. As part of the partnership, Sun Chemical and HP developed stand-up pouches printed on HP’s Indigo 25K digital press using monomaterial polyethylene (PE) and polypropylene (PP) substrates, and laminated with Sun Chemical’s SunLam solution. The all-PP pouch was certified by Germany’s Institute Cyclos-HTP after being successfully tested for a recyclability rate of 96%.

Revenues decreased by $83.1 million, or 11.8%, from $705.8 million in the first quarter of 2020 to $622.7 million in the corresponding period of 2021. This decline is mainly attributable to lower volume in the Printing Sector due to the impact of the COVID-19 pandemic and the sale of the paper packaging operations, which occurred toward the end of the first quarter of the previous year. This decrease was partially mitigated by the solid organic growth in revenues in the Packaging Sector and the revenues generated by the acquisition of Artisan Complete Limited in the Printing Sector. Operating earnings increased by $6.4 million, or 15.7%, from $40.8 million in the first quarter of 2020 to $47.2 million in the first quarter of 2021. The increase in operating earnings is explained by the organic growth in the Packaging Sector. In addition, in the Printing Sector, initiatives to optimize operational efficiency and the Canada Emergency Wage Subsidy offset a majority of the decrease in volume. Net earnings attributable to shareholders of the Corporation increased by $21.3 million, from $6.4 million in the first quarter of 2020 to $27.7 million in the first quarter of 2021. This increase is mostly explained by the income tax expense related to the sale of the paper packaging operations in the first quarter of 2020, higher operating earnings and the decrease in net financial expenses resulting from a reduction in net indebtedness and a lower weighted average interest rate.