Leftech opens US foil operation

Argentina-based Leftech’s foray into foil distribution, which began in 2019 and which L&L wrote about in December 2020, has proved such a success that the company has since set up a second dedicated facility in its native country, founded an operation in Brazil, and – at the beginning of this year – opened a site in Florida to expand the business throughout Latin America and the Caribbean, and ultimately serve the US market. 

This latest move comes despite Leftech’s Buenos Aires factory ceasing production for three months after it was ravaged by a fire in December. 

Leftech is the Latin America distributor for Japanese water-wash flexo plate manufacturer Toyobo and CtP equipment from China-based Amsky. 

CEO Martin Fraire began to investigate the foil market in 2018, identified a gap in his local market, and installed a dedicated foil slitter from Chinese company Hansoar Machinery in Leftech’s Buenos Aires facility the following year. 

The move was quickly vindicated. ‘We had a great reception from the market in Argentina,’ says Fraire. ‘Hot foil in particular is important for the wine label market here.’ Demand soon outstripped supply, so Leftech added a second slitter in Buenos Aires to increase capacity and installed a third in a new dedicated slitting center in Mendoza in 2022. 

‘Mendoza has a concentration of big label converters specializing in the wine sector, so it made sense to open a foil slitting center there,’ explains Fraire. ‘We can slit and deliver to local converters on the same day.’ 

Rapid growth meant that by 2023 Leftech was the second-largest importer of foils to Argentina, only just behind market leader Kurz. Foils rose to represent 30 percent of Leftech’s overall business – and closer to 40 percent in Argentina, according to Fraire – in just three years. 

‘We installed very efficient equipment, so we were able to disrupt the market quickly,’ says Fraire. ‘The Hansoar Machinery slitter can run at up to 500m/min, though we usually run it at 300m/min. It is much more efficient than the machinery used by some of our competitors – indeed, two of the main ones have since installed the same machine. 

‘I already had great relationships with all the leading converters in Argentina, thanks to working in the label industry for many years, which was also a big advantage.’ 

Soon after establishing the foil operation in Argentina, Fraire saw the potential in doing the same in neighboring Brazil. 

‘As in Argentina, the foil market in Brazil is dominated by a small number of international suppliers, who generally serve the country’s label converters from distribution centers in São Paulo,’ says Fraire. ‘I decided to open a facility in the south of the country – close to Brazil’s emerging wine industry in the “Sierra Gaúcha”, and home to several leading label converters.’ 

The site in Brazil was swiftly established, equipped with another Hansoar Machinery slitter, but the pandemic and recruitment issues delayed its full operation, which Fraire believes will begin properly this year. 

Opportunity 

Leftech’s latest venture is the opening at the beginning of this year of a slitting center in Florida, with three staff and again equipped with a Hansoar Machinery slitter. The new operation took 18 months to plan and launch. Fraire’s primary motivation is to better serve the rest of Latin America – which he says is easier from Florida than from Argentina or Brazil. 

Many distributors like to import and sell on. We prefer to get involved, to get our hands dirty, and to add value

‘It is easier to serve the Bolivian market, for example, from Florida than it is from Argentina,’ he says. ‘The Florida site will help us serve Central America, the Caribbean and northern South America – countries such as Colombia, Venezuela and Ecuador. Brazil and Argentina, plus Paraguay and Uruguay, will be handled by the local facilities.’ 

‘Though the initial target is converters in Latin America, we are also looking to sell to companies in Florida and some nearby states. We might target more of the US market in the future,’ he says.  

Cold foil represents 60 percent of the volume of Leftech’s foil business, with hot foil the remainder. ‘There is a big opportunity for cold foil in offset packaging production – toothpaste packaging is an example,’ says Fraire. ‘It is a more environmentally friendly product compared to laminating carton and adding a metalized finish. And more economic too: you can apply it in-line during production in the same pass.’ 

Fraire admits that he did not expect to be serving the wider Latin American region within such a short space of time. ‘It was the reaction from the market that led us to realize the level of opportunity not just in Argentina but across the whole region,’ he says. ‘We are from a country where there are regular financial crises – we are used to seeing an opportunity and moving quickly. Our company has a regional culture: we have been selling Toyobo plates and platewashing equipment around the region for 20 years, so our network was already in place. 

‘Many distributors like to import something and simply sell it on. We prefer to get involved, to get our hands dirty, and to add value to the supply chain with a customized product.’