ECB considering plastic notes
Just as Europeans are getting used to their new euro notes, Belgian chemical maker UCB is already looking forward to printing the euro’s next print run on plastic.
Best known for its hayfever drug Zyrtec, UCB is trying to persuade the European Central Bank (ECB) and other monetary authorities to print their next batch of bank notes on plastic rather than paper.
More than 20 countries have switched to the polymer substrate called polypropylene for one or all of their bills in the last six years. Some, like Northern Ireland, have used it for a commemorative note.
Others -- Australia, New Zealand, and Romania -- have gone entirely plastic. More than three billion of these springy, sturdy bills are estimated to have been printed since UCB formed a joint venture with Australia’s central bank in 1996 to help it export the substrate to other countries.
The venture, Securency, the world’s sole maker of this kind of note, has seen annual production at plants in Australia, Belgium and Britain almost quadruple since it was formed.
“We are getting bigger customers and repeat customers,” said Bart Bosma, UCB’s business development manager for the product in Europe.
“We have customers in practically every continent.” Securency has also started to branch out into land titles, share certificates, and other kinds of permanent documents.
“The market potential is gigantic,” said KBC Securities analyst Jacques Humbert.
“The fact that they have managed to displace paper in some countries is a good indication.” OPP, or biaxially oriented polypropylene, the technical name for the polymer, reflects UCB’s aim at being a leader in niche markets, like allergy drugs, cellophane, and special resins.
Based in Brussels, UCB claims to be the world’s sixth largest maker of OPP, which is also used for bottle labels and wrapping materials.
The polymer note, developed by Australia in 1980s, is not without its detractors.
Bank Degroof analyst Christophe Van Vaeck has lost patience with UCB boasting it as a promising product, describing it as marginal to UCB’s main business: making drugs.
“It’s a promise that they have repeated over the last few years,” said Van Vaeck.
“For me, it’s a curiosity.”
Securency boasts that polymer notes last four times as long as their paper equivalent. They resist dirt, water, and sweat. They are hard to tear. They also resist germs, so a cashier with a runny nose is less likely to pass on a cold to a customer when handing back change.
In Romania, the first European country to use the technology for all its money, people have been enthusiastic about the new bills since they first got their hands on them in 1999.
“These notes are great,” said Doina Roman, a Bucharest business accountant.
“You can put them through the washing machine and they come out looking like new.”
The difficulty in counterfeiting a polymer note is probably its greatest selling point. Regardless of the currency or denomination, each note sports a transparent window in one corner, making it next to impossible to copy.
