Profile: Intertape Polymer Group Inc (ITP.TO)
Intertape Polymer Group Inc. (Intertape), incorporated on December 22, 1989, operates in the specialty packaging industry. The Company is a manufacturer of tape products in North America and is engaged in the development, manufacture and sale of a variety of paper and film based pressure sensitive and water activated tapes, specialized polyolefin films, woven fabrics and packaging systems for industrial use and retail applications. The Company’s products include carton sealing tapes, including Intertape pressure-sensitive and water-activated tapes; industrial and performance specialty tapes, including masking, duct, electrical and reinforced filament tapes; Exlfilm shrink film; Stretchflex stretch wrap, engineered coated fabric products, and flexible intermediate bulk containers (FIBCs). The Company offers solutions to a range of end-markets, including food and beverage, consumer, industrial, building and construction, oil and gas, water supply, automotive, medical, agriculture, aerospace and military applications. During the year ended December 31, 2011 Intertape launched its tensilized polypropylene pressure sensitive tape, which removes from many surfaces, including painted metals, stainless steel, ABS plastic and fiberglass. The product was designed for temporary holding applications of appliances and electronics. During 2011, Intertape introduced a new aluminum foil tape designed primarily for heating, ventilation and air conditioning (HVAC) applications.
Tapes and Films
The Company products include Intertape pressure sensitive and Central water-activated carton sealing tapes; industrial and performance specialty tapes, including paper, duct, electrical and reinforced filament tapes; Exlfilm shrink film and StretchFLEX stretch wrap. Its tape and film products are manufactured and sold under Intertape brands, including Intertape, Central, Exlfilm and StretchFLEX to industrial distributors and retailers, and are manufactured for sale to third parties under private brands. The Company has introduced a line of Intertape brand Double-Coated Tapes in phases, the first of which began in June 2010, which introduced three double-coated tissue tapes and three double-coated polyester tapes. These technical products are used in a number of applications, including corrugated splicing, gasket attachment, plastic housing and component assembly, nameplates, interior and exterior trim attachments and lens bonding. The Company’s products are also convertible for a variety of applications requiring die cuts and custom parts.
In December 2010, the Company established a local distribution facility near Flensburg, Germany, to service its European customers with pressure sensitive tapes, including the Intertape-branded products: masking tapes, filament tapes, flatback tapes, aluminum foil tapes, double coated tapes, cloth duct tapes, as well as electrical and electronic grade tapes. In addition, Central brands of water activated tapes were stocked in the distribution center. In 2011, tapes and films accounted for 85% of the Company’s revenue. The Company’s tape and film products consist of four main product groups: Carton Sealing Tapes, Industrial & Specialty Tapes, Films and Protective Packaging. Carton sealing tapes are sold primarily under the Intertape and Central brands to industrial distributors and retailers, as well as to third parties under private brands. The Company also sells the application equipment required for the dispensing of its carton sealing tapes.
Hot melt carton sealing tape is a polypropylene film coated with a synthetic rubber adhesive, which offers a range of application and is used in carton sealing applications. Acrylic carton sealing tape is a polypropylene film coated with an aqueous, pressure sensitive acrylic adhesive, which is suited for applications where performance is required within a range of temperatures from less than 40°F(4°C) to greater than 120°F(49°C). Natural rubber carton sealing tape is a polypropylene film coated with natural rubber adhesive. This tape is suited for conditions involving hot, dusty, humid or cold environments. Typical uses include moving and storage industry applications, as well as packaging and shipping. Water-activated carton sealing tape is manufactured using a filament reinforced kraft paper substrate and a starch based adhesive that is activated by water. Typical end-use markets include fulfillment centers, mail order operations, furniture manufacturers and the apparel industry. The Company produces eight primary industrial and specialty products: paper tape, flatback tape, duct tape, filament tape, stencil products, electrical tape, double-coated tape, and foil tape.
Paper tape is manufactured from a crepe paper substrate coated with a natural rubber or a synthetic rubber adhesive. Paper tape is used for a variety of performance and general purpose end-use applications. Product applications include paint masking (consumer, contractor, automotive, aerospace and marine), splicing, bundling/packaging, and general light duty applications. Flatback tape is manufactured using a smooth kraft paper substrate coated with a natural rubber/SIS blended adhesive. Typical applications for flatback tape include printable identification tapes, label products and carton closure. Duct tape is manufactured from a polyethylene film that has been reinforced with scrim and coated with natural/synthetic rubber blend adhesive or speciality polymer adhesives. Duct tape is primarily used by general consumers for a range of applications. Duct tapes are also used in maintenance, repair and operations, in the heating, ventilation and air conditioning markets, construction and in the convention and entertainment industries.
Filament tape is a film or paper adhesive tape with fiberglass strands or polyester fibers embedded in the adhesive. Primary applications for filament tape include appliance packing, bundling and unitizing, and agricultural applications. Stencil products are manufactured from a calendared natural/synthetic rubber blended substrate with an acrylic adhesive. Stencil products are used in applications within the sign and monument manufacturing markets to protect a surface where sandblasting is required. Electrical and electronic tapes are manufactured from a number of different substrates, including paper, polyester, glass cloth and a variety of adhesive systems that include rubber, acrylic and silicone adhesives. Double-coated tapes are manufactured from a paper, foam, or film substrate and are coated on both sides with a variety of adhesive systems. Double-coated tapes also use a release liner made from paper or film that prevents the tape from sticking to itself. Double-coated tapes are used to join two dissimilar surfaces. The Company’s double-coated tape products are used in the manufacture and regripping of golf clubs, with smaller sales to the carpet installation and the graphics industries.
Foil tapes are manufactured using aluminum and a variety of adhesive systems. These tapes have application in various industries, including aerospace, transportation, HVAC and industrial. The Company primarily produces two film product lines: Exlfilm Shrink Film and StretchFLEX Stretch Wrap. Exlfilm shrink film is a specialty plastic film, which shrinks under controlled heat to conform to a package’s shape. Exfilm is used to package paper products, consumer products, such as bottled water, toys, games, sporting goods, hardware and housewares and a variety of other products. Fibope produces a range of shrink film products for sale in the European Community. Stretch wrap is a single or multi-layer plastic film that can be stretched without application of heat. It is used industrially to wrap pallets of various products. Air pillows are manufactured from polyethylene film and are inflated at the point of use with an air pillow machine. The Company markets both traditional polyethylene, as well as oxo-biodegradable, air pillow products. The Company has added a biodegradable film to its iCusion air pillow protective packaging products. Air pillows are used as packaging material for void fill and cushioning applications.
The Company competes with 3M Co., Shurtape Technologies LLC, Vibac Group, Sekisui TA Industries Inc., Evotape SpA, Monta, Holland Manufacturing Co. Inc., Cantech, tesa tape inc., Berry Plastics Corp., TaraTape, Inc., Nitto Denko, Avery Dennison Corp., Scapa Group plc, Avery Dennison Corp., Sealed Air Corp., Bemis Co. Inc., Sigma Plastics Group, Pliant Corp., AEP Industries, Inc., Pregis Corp., Sealed Air Corp., Storopack, Inc., Free-Flow Packaging International Inc. and Polyair Inter Pack Inc.
Engineered Coated Products
The Company is engaged in the development and manufacture of industrial packaging, protective covering, barrier and liner products utilizing engineered coated polyolefin fabrics, paper and other laminated materials. Its products are sold primarily direct to end users in a number of industries, including lumber, construction, food, paper, and agriculture. Its engineered coated products are categorized in six markets: building and construction, agro-environmental, consumer packaging, specialty fabrics, industrial packaging, and FIBCs. In 2011, engineered coated products accounted for approximately 15% of the Company’s sales. The Company’s building and construction product group includes protective wrap for kiln dried lumber and a variety of other membrane barrier products, such as roof underlayment, house wrap, window and door flashing and insulation facing, which are used directly in residential and commercial construction. The Company also supplies packaging over-wrap sleeves for unitizing multiple bags of fiberglass insulation. Intertape’s lumber wrap is used to package, unitize, protect and brand lumber during transportation and storage. The product is available in polyethylene or polypropylene coated fabrics and polyethylene films printed to customer specifications. Lumber wrap is produced at the Company’s plants in Langley, British Columbia, and Truro, Nova Scotia.
The Company has developed a range of Agro-Environmental products, including membrane structure fabrics, bags for packaging processed cotton, fabrics designed for conversion into hay covers, grain covers, landfill covers, oil field membranes, and canal and pond liners. NovaShield is a polyolefin fabric used as the outer skin layer for flexible membrane structures. The Company sells the NovaShield fabrics to membrane structure manufacturers who design, fabricate, and install the structures. Its AquaMaster line of oil pit linens and geomembrane fabrics is used as irrigation canal liners, golf course and aquascape pond liners, and in aquaculture operations. Woven coated polyolefin fabrics are used in the construction of poultry houses in the southern United States. These products are primarily produced at the Company’s plant in Truro, Nova Scotia. The Company’s consumer packaging products include ream wrap, form, fill and seal packaging, deli wrap, and other coated and laminated products.
The Company’s specialty fabric product category consists of a variety of specialty materials designed for applications or specific customers. Products and applications of specialty fabrics include fabrics designed for conversion into pool covers, field covers, disaster relief materials, protective covers and construction sheeting, brattice cloth for mine ventilation, underground marking tapes, salt pile covers and industrial packaging. The Company primarily produces these products at its Truro, Nova Scotia, plant. The Company’s metal wrap is used to protect coils of steel and aluminum during transit and storage. The Company also manufactures paper mill roll wrap for newsprint, specialty, and fine papers and custom designed fabrics for dunnage bags, which are used to fill space in a shipping container or to position the contents in a container. The production of the dunnage bag fabrics are primarily produced at the Company’s Truro, Nova Scotia, facility while paper packaging products are produced at the Company’s Langley, British Columbia, facility. FIBCs are flexible, semi-bulk containers generally designed to carry and discharge 1,500 to 3,500 pounds of dry flowable products, such as chemicals, minerals and dry food ingredients. The Company has supply lines with integrated bag manufacturers in India, China and Mexico.
The Company competes with Interwrap, Inc., Fabrene Inc., Mai Weave LLC, Alpha ProTech, W.R. Grace, Inland Tarp and Covalence Specialty Materials Corp.
Intertape Polymer Group Inc
2nd Floor, 9999 Cavendish Blvd
SAINT-LAURENT QC H4M 2X5