And they would be correct in thinking that this is TANN’s core product. TANN’s filter tipping paper finds its way onto some of the most well-respected cigarette brands in the world, and the company has not been slow to develop new and exciting innovations to add to its already impressive lineup of tipping paper solutions. In fact, TANN’s Austrian sister company, Dr. Franz Feurstein Gesellschaft, has a long and storied history as specialty paper manufacturers. And TANN Philippines sources all its paper products from Feurstein.

"Feurstein has been an acknowledged expert in the specialty paper industry for many years," Cruz pointed out. "All the products it produces have to undergo exhaustive testing and qualification procedures before delivery to customers."

Since the paper is sourced from Europe, it conforms to European standards, a vital necessity for manufacturers wishing to penetrate this or other markets whose requirements match those of the EU.

"All our tipping paper conforms to TabakVerOrdnung (TVO) German regulations," said Cruz. "Ink and pigments used on tipping paper supplied by TANN Philippines are sourced from manufacturers that have applied for or have been granted certification of compliance with TVO standards. This is good benchmark for a manufacturer seeking compliance with EU regulations. It’s a safe bet that anything TANN Philippines supplies will conform to whatever regulations apply in whatever market they are ultimately intended for."

Asia is not a TVO market, meaning the regulations are less stringent than in Germany and the rest of the EU, so not all manufacturers see the need to follow TVO regulations for some Asia markets. However, all inks and ingredients used by TANN Philippines, such as plasticizers and iron oxide variants are tested and qualified food-grade products. Some customers also specify various chemical additives to the base paper

"Multi-nationals require disclosure of ink constituents, which means we have to be extremely conscious of security issues," said Cruz. "Burn retardant technology is another of TANN’s fields of expertise, and the company has developed a number of solutions to achieve effective burn retardant characteristics, depending on the application. Paper is one approach, printing inks another."

If anyone ever thought tipping paper was a bland and conventional product, TANN has certainly raised the bar in that regard. TANN tipping papers come in all colors, and with any number of variations and options.

For example, textured (embossed) tipping paper lends sophistication and cachet to a cigarette.

"Textured tipping paper allows product differentiation," Cruz said. "Tipping innovations affect customer awareness and lead to product recognition. Textured tipping has a premium cachet, and it can be combined with logo embossing, perforation and other innovations such as hot foil lamination or pearlizing."

In short, the smoker appreciates not only the graphic, if there is one, but also the tactile experience as well, even if they do not understand the complex procedures that go into making the tipping paper in the first place, including sophisticated laser perforation techniques and cigarette maker-friendly properties of the paper itself.

This is an important point that differentiates TANN tipping paper from many others.

"We have run tests and found that there is no significant detrimental attributes negatively affecting runability on standard cigarette making machines," said Cruz.

In fact, conventional TANN tipping paper runs well on all common types of cigarette makers, both the older varieties and newer, more sensitive machines.

"The high quality of paper TANN supplies runs well with old as well as new machines," Cruz stated. "While older machines are generally more forgiving, the new, high-speed machines are more demanding of the paper. Using TANN tipping paper gives operators of newer machines an advantage because TANN paper runs efficiently. TANN also earns an advantage here because the ore new machines that are installed that demand a higher quality of paper, the more sales we can expect to make as not many suppliers can match the consistency of TANN products. In fact, we produce two different types of papers for newer, faster machines. Clearly, it is helpful for us to know the speed and type of machine the product will be used on so we can supply the ideal paper. The customer specifies the design, color and machinery type and we supply the paper. Typically no machinery modifications are required to run TANN tipping paper."

One of TANN’s strengths is its ability to recreate a given product to the same specifications at short notice.

"Multi-nationals typically supply the actual specifications for the tipping paper they want us to provide, identifying certificates, qualifications and processes required. Once we have developed the product, it is approved by the customer and it becomes a product code that can be reordered at any time," Cruz said.

Enhancing this procedure is the fact that TANN is a global enterprise with a strong intra-net. One advantage this brings is that, in the unlikely event that one facility cannot supply a product to a customer’s timeframe, another facility can pick up the slack and deliver on spec and on time.

"There is a cooperative strategy between Europe and the Philippines," Cruz said. "When we commit to a delivery date we are able to be as good as our word. Our headquarters in Austria or other TANN affiliates can step in if there is an emergency. There is a guaranteed continuity of product parameters thanks to our centralized network which provides for overview and reporting procedures so a product can be manufactured at a different location to the same specifications if required."

"Indonesia is an interesting market for TANN," sad Cruz. "The company has been supplying products to the kretek market for over 25 years now. TANN has gained a lot of experience serving the kretek market through TANN Austria’s experience, so transferring the technology from there to the Philippine facility was a simple process for us."

Should the business indicate the necessity, TANN would be willing to invest in a new line producing sweetened tipping papers if the market is assured, according to Cruz. But, as the title of the article suggests, TANN Philippines is a lot more than just a paper and ink provider. In fact it supplies a broad range of sophisticated solutions for cigarette makers.

Tear tape is 0ne example. The facility added a self-adhesive tear tape line, recently, using primary reels supplied by its German counterpart. The Philippine facility does secondary slitting and can add micro-printed text and graphics to the finished product for marketing or security purposes.

"We can react faster to our regional customers’ requirements," Cruz pointed out. "We are not talking about container loads when we think of tear tape, and shipping costs are an important consideration for a manufacturer looking to enhance a product with sophisticated tear tape solutions. We supply micro-printed tear tapes for marketing, and we collaborate with our customers to develop marketing initiatives. Again, as we are in the same time zone as the rest of Asia, we can offer faster, more efficient development and delivery of tear tape solutions. We are flexible with regards to timing and order volumes, we can develop and deliver high quality solutions rapidly and efficiently," Cruz said, adding that "in the relatively short time the tear-tape line has been operational, the product it produces has come to be considered as the standard industry benchmark in the Asia market because it is known to be effective for the task it is intended for. We are already delivering security tear tape solutions to premier brands in the region."

TANN tear tape is an effective solution for several scenarios, including: security, aesthetic appearance, marketing, and product tracking.

"We even have double-sided tear tape available, which is used by some manufacturers for competitions," said Cruz.

Other products include printed inner liner, which TANN has researched and developed through close consultation with its customers, and for which TANN Austria has identified paper grades and appropriate machines.

"Paper inner liner is more environmentally benign," Cruz pointed out. "Aluminum inner liner, which is more commonly used by manufacturers, is more expensive than paper solutions. And as it is the BOPP, not the inner liner, that ensures freshness and moisture retention, there is every reason to consider using paper inner liner, particularly as it can easily be employed as a marketing tool. Whatever message or graphic is required can be incorporated into the design, giving paper inner liner a real edge over aluminum."

For example, any ink fumes that may escape from the strict quarantine they are subjected to in the facility’s hi-tech ink storage and distribution system are captured before they can enter the atmosphere. A state-of-the art regenerative thermal oxidizer facility recycles waste, burning it to produce energy which is then recycled into the plant. "The more we produce, the less energy we require," Cruz stated proudly. Clearly, TANN Philippines is a company with a conscience.

Firstly, design and packaging, branding and brand extensions and marketing initiatives are all seeing growth, and this presents a unique opportunity for TANN. "We react quickly to customer demand," said Cruz. "We respond fast to customer queries, developing new designs which we can turn around quickly as our location is ideal for speedy delivery to our Asia clients. We enjoy close cooperation with TANN Austria, so, for example, we might receive a request in the morning to develop a design, this can be passed on to Austria by the afternoon and be ready for approval the following morning."

Secondly, there is a growing demand for more product innovations, not only in the design of cigarettes but also in the flavor and filter attributes, such as menthol and charcoal for example. TANN’s many years of experience with sweetened tipping papers for kretek, among others, gives it an edge in this respect, and the company has the equipment and expertise to supply-high end specific requirements.

"We are seeing movements in Korea and Japan, for example," Cruz confided. "In Korea the old 1mg benchmark has been replaced by the demand for 0.5mg products, and there is speculation that a 0.3mg cigarette may be the next trend, demanding even higher porosity in filters. We have the equipment and the expertise to supply this."

Logistically, being situated in the Philippines gives TANN an added advantage.

"The commitment from our customers was pivotal in the decision to invest in the Philippines," concluded Cruz. "We are approaching full capacity now, thanks to our customers’ support and trust and future expansion, linked to further growth in production, is certainly on the cards." Clearly so, and as TANN Philippines has already bought the plot of land adjacent to its factory it has both the potential and the resources to continue growing.