Periodic Reporting for period 1 - APS (On-site and On-demand Flexible Packaging System)
Reporting period: 2019-08-01 to 2019-12-31
"The APS project by Agil Packaging System, S.L. (AGILPACK) was approved within the call for SME Instrument H2020, H2020-SMEInst-2018-202-1, Call 2019-05-07.
There are important drawbacks on the use of Expanded Polystyrene (EPS) as actual packaging system for large white line appliances. It is a costly process, and major appliances manufacturers need to reduce the packaging costs because it does not add value to their customers. EPS packaging is expensive because the process consumes lots of energy, it is necessary to use costly moulds for packaging parts forming, and there are high transport and storage costs (it is a very low-density material). EPS technology is mature and there is little room for improvement, so appliance manufacturers need to find new packaging technology solutions that are cheaper, more flexible and more environmentally sustainable.
EPS packaging currently presents serious difficulties to be recycled due to transportation high cost (98% “air"" is transported) and the need for specific recycling plants. In fact, EPS is recycled only 22% Worldwide and 32% in Europe.
Furthermore, there is a growing legislative pressure to reduce or eliminate EPS, because it is a non-viable solution in a near term. European Parliament approved in Oct/2018 (Dir. 2018/852 Amendments to Dir. 94/62/EC) the ban of single-use plastic items from EU in 2021 including fast-food containers made of expanded polystyrene (EPS).
The new packaging concept devised by AGILPACK, in terms of product, is based on the creation of three-dimensional solid pieces that emulate EPS pieces but that will be created from one or more layers of bubbles made from multilayer plastic film.
In addition, with regard to process innovation, the APS system integrates the manufacturing of the packaging at the end of the production line of the appliances manufacturers, supplying in real-time and on demand. This allows clients total flexibility.
The overall objective of the Project has been to confirm the business strategy, business model, intellectual property and marketing strategies of the company to enter into the international packaging sector for appliances.
The project has been developed accordingly to the work schedule set in five months, finishing at 31/12/2019."
There are important drawbacks on the use of Expanded Polystyrene (EPS) as actual packaging system for large white line appliances. It is a costly process, and major appliances manufacturers need to reduce the packaging costs because it does not add value to their customers. EPS packaging is expensive because the process consumes lots of energy, it is necessary to use costly moulds for packaging parts forming, and there are high transport and storage costs (it is a very low-density material). EPS technology is mature and there is little room for improvement, so appliance manufacturers need to find new packaging technology solutions that are cheaper, more flexible and more environmentally sustainable.
EPS packaging currently presents serious difficulties to be recycled due to transportation high cost (98% “air"" is transported) and the need for specific recycling plants. In fact, EPS is recycled only 22% Worldwide and 32% in Europe.
Furthermore, there is a growing legislative pressure to reduce or eliminate EPS, because it is a non-viable solution in a near term. European Parliament approved in Oct/2018 (Dir. 2018/852 Amendments to Dir. 94/62/EC) the ban of single-use plastic items from EU in 2021 including fast-food containers made of expanded polystyrene (EPS).
The new packaging concept devised by AGILPACK, in terms of product, is based on the creation of three-dimensional solid pieces that emulate EPS pieces but that will be created from one or more layers of bubbles made from multilayer plastic film.
In addition, with regard to process innovation, the APS system integrates the manufacturing of the packaging at the end of the production line of the appliances manufacturers, supplying in real-time and on demand. This allows clients total flexibility.
The overall objective of the Project has been to confirm the business strategy, business model, intellectual property and marketing strategies of the company to enter into the international packaging sector for appliances.
The project has been developed accordingly to the work schedule set in five months, finishing at 31/12/2019."
The first activity has been an international market research, where it has been studied the market for packaging in the white line and small appliances subsectors, with a client focus approach and studying the value proposition for the different target customer profiles, and the needed activities and calendar phases for international deployment.
The second activity has been the action plan to create a commercialization and technical service support. We have had the support of specialized entities like ICEX, Regional Government of Navarra PIN Service and experts in internationalization and competitive intelligence. The general and specific goals have been defined as well as the alliances, communication, human resources, sales force and price strategies. Finally, a detailed action plan with specific activities and dates and a list of KPIs to check progress have been drawn.
The third activity has been a technical one, advancing in the development of the different modules of our industrial level pilot line to manufacture the prototypes of the large and small appliances packaging sets. In parallel we have defined the plan for testing, including our internal tests as well as the preliminary external tests to be carried out in the plant lines of the collaborating launch clients.
The fourth activity has been the adaptation of the IP strategy at international level, which has been carried out in two steps. The first step has been devoted to update the IP strategy regarding potential new patents, possible patent infringements, surveillance strategy as well as the countries to extent our patents. The second step has been the initiation of the process to apply for a new patent regarding plastic welding technology.
Our fifth and final activity has been updating the business plan as well as the 2020-2026 financial economic scenarios. We have updated our company claim (“APS Packs Better), reassured the clients’ needs (by visiting many of them), assessed the potential markets by countries, made financial projections for both small and large appliances, profit & losses statements prediction from 2020 up to 2026, updated our business canvas, and calculated our financial needs and financial sources including the scenario of having an EIC Accelerator Grant.
The second activity has been the action plan to create a commercialization and technical service support. We have had the support of specialized entities like ICEX, Regional Government of Navarra PIN Service and experts in internationalization and competitive intelligence. The general and specific goals have been defined as well as the alliances, communication, human resources, sales force and price strategies. Finally, a detailed action plan with specific activities and dates and a list of KPIs to check progress have been drawn.
The third activity has been a technical one, advancing in the development of the different modules of our industrial level pilot line to manufacture the prototypes of the large and small appliances packaging sets. In parallel we have defined the plan for testing, including our internal tests as well as the preliminary external tests to be carried out in the plant lines of the collaborating launch clients.
The fourth activity has been the adaptation of the IP strategy at international level, which has been carried out in two steps. The first step has been devoted to update the IP strategy regarding potential new patents, possible patent infringements, surveillance strategy as well as the countries to extent our patents. The second step has been the initiation of the process to apply for a new patent regarding plastic welding technology.
Our fifth and final activity has been updating the business plan as well as the 2020-2026 financial economic scenarios. We have updated our company claim (“APS Packs Better), reassured the clients’ needs (by visiting many of them), assessed the potential markets by countries, made financial projections for both small and large appliances, profit & losses statements prediction from 2020 up to 2026, updated our business canvas, and calculated our financial needs and financial sources including the scenario of having an EIC Accelerator Grant.
AGILPACK reinvents Major Appliance Packaging System (refrigerators, washing machines, etc.) worldwide, replacing EPS with a new on-site manufactured packaging concept based on Bubble wrap Film that provides better technical, economic and environmental characteristics.
The technical feasibility of the business project has been achieved, since the first pre-prototypes for both large and small appliances packaging sets are available and internally tested. The strength of our packaging solution has been corroborated by external tests carried out by a reference laboratory.
The advantages for clients of APS packaging system compared to actual conventional EPS one are 30% lower cost (less plastic and energy used for manufacturing), production flexibility (no moulds are required and parts are custom-made, on-site and on demand) and better sustainability and carbon footprint (20% raw plastic consumption reduction, less energy consumed in manufacturing and material transportation, recycling and reusing are eased).
AGILPACK wants to demonstrate that our APS packaging system:
- Generates a business with high returns: revenue of €24.7 million in 2025 and €40.5 million in 2026.
- Positions our company as leaders in the substitution of EPS packaging for a much more sustainable one.
- Helps to substantially reduce the CO2 footprint as well as incrementing the profitability of appliances companies.
As a final remark, we would like to stress that APS proposal complies with the following European Union and United Nations Sustainable Development Goals (SDGs):
- Goal 9: Industry, Innovation and Infrastructure.
- Goal 12: Responsible consumption and Production.
- Goal 13: Climate Action.
- Goal 17: Partnerships to achieve the Goal.
The technical feasibility of the business project has been achieved, since the first pre-prototypes for both large and small appliances packaging sets are available and internally tested. The strength of our packaging solution has been corroborated by external tests carried out by a reference laboratory.
The advantages for clients of APS packaging system compared to actual conventional EPS one are 30% lower cost (less plastic and energy used for manufacturing), production flexibility (no moulds are required and parts are custom-made, on-site and on demand) and better sustainability and carbon footprint (20% raw plastic consumption reduction, less energy consumed in manufacturing and material transportation, recycling and reusing are eased).
AGILPACK wants to demonstrate that our APS packaging system:
- Generates a business with high returns: revenue of €24.7 million in 2025 and €40.5 million in 2026.
- Positions our company as leaders in the substitution of EPS packaging for a much more sustainable one.
- Helps to substantially reduce the CO2 footprint as well as incrementing the profitability of appliances companies.
As a final remark, we would like to stress that APS proposal complies with the following European Union and United Nations Sustainable Development Goals (SDGs):
- Goal 9: Industry, Innovation and Infrastructure.
- Goal 12: Responsible consumption and Production.
- Goal 13: Climate Action.
- Goal 17: Partnerships to achieve the Goal.