Through close collaboration, CCL Secure Ltd (“CCL”) and Rolling Optics have succeeded in integrating Rolling Optics’ unique 3D technology into CCL’s process of manufacturing polymer banknotes. The product being launched is called CINEMATM and it enables the complete integration of Rolling Optics’ security effects as early on as during the first stage of manufacturing the banknote substrate. This is exemplified through the manufacture and launch of a “House Note”, a banknote without a country and with neutral motifs featuring the CINEMATM effect.
With about 80 percent of the market, CCL is the world’s biggest producer of polymer banknotes and currently supplies 24 countries with polymer banknotes in over 140 denominations. Today CCL produces about 4 billion banknotes a year, having produced, in overall terms since starting in 1989, more than 60 billion banknotes by the end of 2018.
With countries like Canada and the UK among the customers recently switching from paper banknotes to polymer ones, more countries are expected to follow suit. CCL is the leading actor in the transformation of the banknote market, whereby polymer substrate and hybrid substrate are replacing traditional paper banknotes. Polymer banknotes are regarded as being more sustainable and environmentally-friendly, as well as being more hygienic and difficult to copy than paper banknotes.
Rolling Optics has been collaborating with CCL Secure (previously Innovia Security) since 2015. An agreement between Rolling Optics and CCL provides CCL with a non-exclusive license to integrate Rolling Optics’ technology into banknotes, with Rolling Optics obtaining a royalty for each manufactured and sold banknote featuring its 3D technology.
This partnership with CCL is of strategic significance to Rolling Optics, paving the way for significant long-term opportunities in the High Security business sphere. As regards 2020, however, this collaboration is expected to have a limited impact on Rolling Optics’ turnover and results.
The greatest acknowledgment a new technology can get in the security industry is being integrated into banknotes. This is a sector with long development and sales cycles, but now we’re there. The first limited-edition commercial banknote, a commemorative banknote featuring Rolling Optics’ technology, is expected to be issued within a year. Following that, we expect the first high-volume commercial banknote to be launched over the coming years. The banknote market in itself is a sector in long-term decline, in step with other payment solutions emerging. However, numbers of banknotes are expected to increase globally and we thus believe that this segment will be generating significant revenues for Rolling Optics for many years to come, says Axel Lundvall, CEO of Rolling Optics.