plastic news sept 2011

P L A S T I C S N E W S S E P T E M B E R 2 0 1 13

Tech-47/713/MBI/09-11 September 2011Volume 46 No. 09

Hon. Editor Mr. Raju Desai

Associate Editor Mr. Hiten Bheda

Chairman - Editorial Board Mr. Yogesh Shah

Members Dr. T. Biswas Mr. A. E. Ladhaboy

Editorial Co-ordination: Padmesh Prabhune, Dhruv Communications,

Mumbai, Tel No: 00-22-2868 5198 / 5049 • Fax No : 00-22-28685495 email: [email protected]

Published by Ms. Uma Gupta on behalf of the owners,

The All India Plastics Manufacturers’ Association

Plot No. A-52, Road No. 1, M.I.D.C., Andheri (E),

Mumbai-400 093. Tel: 67778899 • Fax : 00-22-2821 6390

E-mail : [email protected]

Website : http://www.aipma.net

and printed by her at Dhote Offset Technokrafts Pvt. Ltd.,

Jogeshwari (E), Mumbai-400 060.

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Views/Reports/Extracts etc. published in Plastics News are those of the

authors and not necessarily of the Editor. Furthermore except for copies of

formal AIPMA communications no other matter in this journal should be

interpreted as views of The All India Plastics Mfgrs. Association.

Mr. Ashok AgarwalVice President

(East Zone)

Mr. Manish DedhiaHon. Secretary

Mr. Mahendra DeshlahraJt. Hon. Secretary

Mr. Kishore SampatHon. Treasurer

OFFICE BEARERS

The Offi cial Organ of The All India Plastics Manufacturers Association Estd. 1945

Mr. Yogesh P ShahPresident

Mr. Jayesh RambhiaVice President (West Zone)

Mr. R. K. AggarwalVice President (North Zone)

Mr. Anil BansalVice President (South Zone)

IN THIS ISSUE...17...AIPMA At Work

26...Company News

34...Environment

...Bad roads.. Why don’t we use plastics for paving?

36...Features...SME IPO CONNECT: “Mind to Market”

...Smart Forvision: A look at the future of electric mobility

...Bio-based plastics to emerge as growth potential

...Despite problems SE Asia plastics sectors continues to grow

...Propylene demand is expected to recover soon

55...International News

65...Business News

70...New Products

72...Technology

77...In the News

CONTENT


THE PRESIDENT SAYS

I have already discussed widely about all the important activities carried out by Team AIPMA.

Further the Launch Function of Poly India 2011, was held on Friday August 26, 2011 at AIPMA House, which was graced by spectrum of dignitries. Poly India 2011 – is being organised by Dept of Chemicals and Petrochemicals, Govt. Of India, Govt. Of Andhra Pradesh along with CIPET and FICCI, to give further boost to the Polymer and Plastic industry in India. The event is supported by AIPMA as well. Madam Neel Kamal Darbari, Joint Secretary, DCPC, Govt. of India, presided over the function as Chief Guest.

We had an opportunity to discuss with her various issues regarding the industry, especially the 12th fi ve year plan and issues relating to Environment.

Friends, AIPMA has drafted an elaborate presentation on the 12th fi ve year plan, where among various other chapters, stressed was given on the major threat of acute scarcity of skilled and unskilled workers in the Processing sector. Formulations and implementation of Strategic plans is the utmost demand of today to match with the projected growth of Plastics by the year 2025. Creation of matching volume of workers and channelizing them to right placement is our prime responsibility, especially in upstream, downstream processing sectors. Training and Testing Centre proposed jointly by AIPMA & CIPET at Daman will certainly fi ll up the gap.

Our earnest request to the Planning Commission as well as our Parent Ministry would be to look into:-

1) National level VAT / GST on primary inputs and products with common policy on inputs tax credit.

2) Progressive Custom Duty Policy.

3) Incentives for sustainable development.

4) Infrastructure

5) Standardization (viz of articles of mass consumption)

6) Export branding

7) Jute Packaging Material Act

8) Edible Oil Packaging

9) Aseptic food packaging (Milk)

10) R e s o u r c e c o n s e r v i n g initiatives and necessary legislation.

11) Agriculture Productivity

12) Power Plants

13) Coastal ICPIRS and SME Hubs.

14) Singapore model of industrialization and support of Government.

15) Land for Industry

During a recent meeting at DCPC it was further emphasized on the need to create following awareness programmes for waste management in mass/general public

a. Education program with young and new generation in schools and colleges.

b. Mass media propaganda / awareness programs be conducted in big way by AIPMA & Associations, in metropolitan as well as in backward / under developed cities, if need be by adopting one city by each association, putting DCPC as the centre where part funding can be requested under 12th Plan fi ve year plan

c. General Education of Public be initiated by organizing Poster programs for major mass religious festivals in co-ordination with local Municipal wards offi ces be done.

d. Hold Public & Media awareness programs on waste collection and recycle of Plastics.

e. To publish booklets & distribute it to the mass, especially in schools.

It is heartening that DCPC appreciated efforts of team AIPMA, and pronounced that Team AIPMA should be the core team for the Processing and Machinery Industry both. AIPMA is reckoned as the fi rst level support for Processors and Machinery Association.

Thanks again and I assure all of you my best services to AIPMA at all times.

Yogesh Shah(President AIPMA)


Dear Friends,


FROM THE EDITOR

By the time this edition of Plastic News will be in your hands Koplas-2011, claimed by the

organizers as ‘Smart World!’ would be perhaps over. The 21st Korea International Plastics Rubber Show KOPLAS 2011 that was held between September 28 to October 01, 2011 at KINTEX, Korea, seems to be a successful event for Korean domestic plastics and rubber manufacturers and suppliers gathered together with leading brands from around the world to be displayed under one roof.

As we know KOPLAS has been an important bridge between Korean and global market and it has been generating the international business since 1981. In the early days of KOPLAS, Korean plastics market was dominated by imported equipment but these days newly developing Korean plastics manufactures are main motive power of the show. Korean plastics technologies integrated with advanced Korean IT and eco-friendly technologies not only pushes the development of innovated technologies and products, but also brings the latest innovations and the most sophisticated plastics technologies.

More than 250 companies from 20 countries all around the world participated, and the organizers are very keen on making KOPLAS to grow as a hub exhibition of plastics and rubber equipment in the North-East Asian region and thus are playing an important role in creating new environment and technologies of this sector.

This exhibition is professionally managed at par with international standards and is one of the best shows of Plastics & Rubber, with world class infrastructure,

fantastic line-up of exhibitors presenting the latest and best innovative technologies of this century.

In its Major step forward KINTEX, w i tnessed f i ve Industry fairs concurrently with KOPLAS-2011, such as Printing Machinery & Equipment Show, Electric Fair, Tool Exhibition, Machinery Fair and Metal Week. It also celebrated the inauguration of its second hall with “Korea Industry fair 2011”, acclaimed to be the largest size with 1000,000 sqm in Korea MICE (Meeting, Incentive, Convention, Exhibition) industry.

All these events will truly provide an enormous opportunities for business and contribution to development & elevated status of the Korean domestic industry, claiming to be the turning point to become the largest worldwide exhibition.

Concurrently with the show conferences and seminars / business meets were also planned at KINTEX Conference Center house.

Friends this four-day event witnessed many bilateral exchange of business, networking, signing of MOUs (two being between AIPMA and the organizers), and has been action packed for team AIPMA at KOPLAS 2011.

Hon. EditorRaju Desai

[email protected]

From the Editor’s Pen….



Constraint To Manufacturing GrowthSevere shortage of availability of manpower is hampering working of industry. Skilled, unskilled,semi skilled manpower is simply not available across country. Shortage is more sever from April to June period.Thousands of machines are not working in night shift as operators are not available. Exporters can not fulfill orders in time & keep asking for longer production time. Wages have increased drastically putting competitiveness under pressure. Even at higher wages availability of manpower is issue.

As old machines are not working to full capacity new machines are not being booked. This affects capital goods industry too. This slow down is affecting actual growth potential of industry. This also has impact on government revenue collection.

Labour shortage affects Risk to life & property, affecting quality of service deliveryThis is not limited to plastic factories, but extends to most walks of life, say shortage of nurses in hospital puts life of patient in danger. Bad quality work by electrician is causes risk of short circuits.

Bad drivers causes risk of road accident.

Shortage in police force affects implementation of law & order.

Bad quality work has to be tolerated due to shortage of manpower.

CauseIndia is home to world’s second highest population,then...

Why such shortage ?

Two major reasons :

1. Fast growth of economy, this is welcome.

2. The Mahatma Gandhi National Rural Employment Guarantee Act 2005

Even when spirit behind scheme was on positive scale it has taken 40000 crore per year, had its un parallel effect on labour market. It has hugely reduced migration to industrial areas.

Whats more is this 40000 crore ends up in not so productive work.

With average two persons in household working under scheme getting about 30000 Rs per year & doing some odd jobs during rest of year, along with subsidized rates for food products available in rural area, poor illiterate person in villages are able to survive and do not aspire for better jobs leading to prosperous life.

MGNREGA scheme gives minimum wages

Does not make workers rise to higher level of training for better jobs is drain on economy.

France has 34 hours per week, now they are going on strike to ask for 29 hours.

So giving doles will spoil work culture & make our country weaker.

Innovative SolutionIf MGNAREGA scheam is diverted to SMEs as incentives to employ more people.

SMEs would add their own funds & instead of 100 days, employment would last 200 days or more.

Advantages of SolutionThis will result in much better quality of work for amount spent as private sector entrepreneur has better infrastructure & management to improve effi ciency compared to what is currently happening in MGNREGA scheam.

So for 40000 crore labour will give rise to additional industrial output worth about 6 lakh crore. Additional revenue generated (Excise, VAT, IT etc.) would be more than 1.5 lakh crore.

workers would be better trained & would be able to rise to higher wage standards within few years.

It would make our industry build higher capacity & competitiveness.

Will increase exportJust giving tax credit which can be offset against direct/indirect tex liability propositional to number of workers employed will do the trick.

Actual giving away money may not be needed.

As most industries are located in rural area , it is not diffi cult for rural folks to come & work there.

This will make our country stronger.

National Manufacturing Policyis envisioning increasing share of manufacturing from 15% to 25% of GDP by 2025.

For this industry has to grow much faster than GDP growth.

This innovation if applied well has potential to make India manufacturing superpower.

Making India a Manufacturing Superpower Some thoughts by Jayesh Rambhia Vice President (west) AIPMA


COMPANY NEWS


Asahi Kasei Plastics Wins “Supplier of the Year” Award

Asahi Kasei Plastics North America, Inc., of Fowlerville,

Michigan, was awarded “Supplier of the Year” by Schneider Electric, of Lexington, KY at their annual North America Supplier Conference in April. Asahi Kasei Plastics was honored by Schneider Electric based in the following criteria: Quality , Logistics , Productivity, Competitiveness, Technical/Process Innovation , Planet Responsibility , Responsiveness”I am honored and grateful to receive this award on behalf of Asahi Kasei Plastics and especially proud of our team in Michigan for their dedication to innovation and customer service,” said John Moyer, president of Asahi Kasei Plastics North America, Inc. “Like Schneider Electric is, we are passionate and positive about or business, customers and people,” continued Moyer. “We strive to create a true sense of partnership with our customers, making it easy for them to do business with us.” Asahi Kasei Plastics provides engineering resins, including Xyron™ modified polyphenylene ether (mPPE), to Schneider Electric for electrical outlets, electrical plugs/switches, fuse box components, control boxes, nozzles, battery cases and photovoltaic (PV) applications. Asahi Kasei Plastics provides customized resin solutions worldwide to multiple markets. The Michigan based company, with over 180 employees, is one of the largest Asahi Kasei facilities outside of Japan and is expanding sales globally, in Canada, Mexico, Brazil, China, India and Europe. Asahi

Kasei Plastics is a leading custom compounder of advanced engineered polymers. Their brands, including LEONA™ and THERMYLON® nylons, THERMYLENE® polypropylenes, TENAC™ acetals and XYRON™ engineering resins, modifi ed PPE and much more, are specially formulated to solve complex engineering problems. Their markets include automotive, commercial transportation, furniture, pool and spa, water treatment, electrical/electronics, and power generation including performance polymers for electric vehicle batteries, solar panels and wind energy applications. Asahi

Kasei Plastics is a wholly owned subsidiary of Asahi Kasei Chemicals Corporation (AKCC). AKCC is a leading producer of high performance e n g i n e e r e d t h e r m o p l a s t i c s , petrochemicals and monomers and performance chemicals. Their product portfolio serves a diverse range of markets including energy, performance coatings, consumer products, home construction & materials, health care and many others. Internationally, Asahi Kasei has over 15.8 billion dollars in annual sales and nearly 30,000 employees.

COMPANY NEWS

South Korea’s SK Global C h e m i c a l C o . i s t o

commence construction of a US$2.4 bln petrochemical plant on Singapore’s Jurong Island. According to reports Output will comprise 4 million tpa of petrochemicals: 2.6 mln tons of output consisting of refined oil including civilian Jet A-1 aircraft jet fuel and liquefied petroleum gas, and the balance 1.4 mln tons including chemicals such as paraxylene and benzene. The new facility, to come online in late 2014, is intended to serve as SK Global Chemical Co.’s production

base in Southeast Asia as well as China’s booming market for refined petrochemical products. SK Global Chemical partnered with SK Gas and SK Engineering and Construction Co. to establish the joint venture to construct the Jurong Island facility and holds a 30% share in Jurong Aromatics Corp. Pte. (JAC), overseeing the project. SK Engineering and Construction Co. also signed a US$950 mln contract with JAC to build the Jurong Island complex as well as agreeing with JAC to transfer the relevant technology to operate the facility.

SK Global to begin construction of US$2.4 bln petrochemical plant in Jurong


COMPANY NEWS

BP and Reliance Industries commence strategic alliance for IndiaReliance Industries Limited

(RIL) and BP have announced the completion of BP’s acquisition of a 30% stake in 21 oil and gas production sharing contracts (PSCs) that Reliance operates in India, including the producing KG D6 block. This signifi cant step will commence the planned alliance which will operate across the gas value chain in India, from exploration and production to distribution and marketing. The completion of the deal delivers one of the largest ever foreign direct investments into India. According to the release the two companies will also form a 50:50 joint venture for the sourcing and marketing of gas in India which will also accelerate the creation of infrastructure for receiving, transporting and marketing natural gas. Mukesh Ambani, Chairman

and Managing Director, Reliance Industries, said “The alliance with BP will boost our efforts to realize the true potential of India’s hydrocarbon reserves. The globally renowned expertise of BP and the in-depth domestic experience of Reliance make for a formidable alliance which will deliver unparalleled value for the country in its pursuit of energy security.” “This is the beginning of what we expect to be a long and successful working partnership with Reliance, building on the strengths of each company,” said Bob Dudley, BP group chief executive. “This major investment is directly aligned with our strategy of creating long-term value by forming alliances with strong national partners, gaining material positions in signifi cant hydrocarbon basins and increasing our exposure

Europe’s largest used Sheet Line dealer adds to extensive

Europe’s largest used Sheet Line dealer- TransXL International

Limited has recently purchased a 1996 2300mm Welex co extrusion sheet line to add to its extensive range of sheet lines currently available for sale Ex Works Swindon. The 2300mm line is ideally suited for the manufacture of ABS, PS, and has spare screws for Polyolefi n materials. With sheet

to growing energy markets.” BP will pay RIL an aggregate consideration of US$7.2 billion, subject to completion adjustments, for the interests to be acquired in the 21 production sharing contracts. Further performance payments of up to US$1.8 billion could be paid based on exploration success that results in development of commercial discoveries. The 21 oil and gas blocks cover approximately 220,000 square kilometres and lie in water depths ranging from 400 to over 3,000 metres. They include the KG D6 block that currently produces about 1.6 billion cubic feet of gas per day (bcf/d), over 40 per cent of India’s total gas production. RIL will remain operator of the PSCs and BP will bring its global deepwater, sub-surface and gas expertise to enhance exploration and development of the blocks.

thickness ranging up to 12mm thickness, the end products would be typically used for thermoforming applications both for the Sanitary and Automotive markets, but can be used in other markets. The line is fitted with a gear pump, thus giving greater quality and dimensional stability to the fi nished product. The line comprises a 150mm single screw extruder, a

GP90 melt pump, ABA coextrusion adaptor, 63mm Welex coextruder, 2200mm wide Verbruggen die 90” (2286mm wide), 3 roll polishing stack in upstack configuration, top and bottom protective film laminating station, 3 zone pumping group, 90” wide 2 roll haul off. 2300mm wide Femas Guillotine for thick PS and ABS. Conveyor and sheet stacker.


COMPANY NEWS

L&T bags orders worth US$889 mln in hydrocarbon sector in AsiaLarsen & Toubro Limited (L&T)

has bagged three orders worth US$889 mln : two from UAE, and one from Thailand.One order is from Abu Dhabi Gas Industries Limited (GASCO) for its Habshan-RuwaisShuweihat (52”/48” dia) Gas Pipeline Project. Valued at around US$189 mln, it involves EPC installation & commissioning of 123 km of the pipeline to be commissioned in 24-26 months. L&T is presently executing several other pipeline projects in GCC countries for major clients such as ADCO, Qatar Petroleum, PDO, etc. The other order is a US$450 mln EPCI project awarded to L&T Hydrocarbon’s

Upstream Business Group from ADMA-OPCO, a subsidiary of ADNOC and a major producer of Oil & Gas for the UAE. The early production project Phase-1 of Nasr & Umm Lulu Field Development Projects includes four wellhead towers and a manifold tower platform, connecting bridges and associated sub-sea pipelines. L&T has in-house engineering, fabrication facilities in three locations including the GCC region at Sohar (Oman) and its own heavy-lift and pipe-laying vessel, LTS-3000. L&T has also been awarded a USD 250 million contract from PTTEP International Limited (PTTEPI), a subsidiary of PTT Public Company

Limited, Thailand for its Zawtika Development Project, Phase-1A. The project to be delivered in 24 months consists of three wellhead topsides and three jackets weighing 7000-8000 MT to be installed in a water depth of 130-150 meters. The scope also includes 21 km of 18” subsea pipelines. The project facilities are part of an overall fi eld development, and will be integrated with other platform facilities in the fi eld.

Royal Dutch Shell mulls ethylene cracker in AppalachiaRoyal Dutch Shell plans to build

a new world-scale ethylene cracker in the Appalachia region of USA, in a bid to capitalize on its exposure to Marcellus Shale natural gas. Shell owns the natural gas rights for about 700,000 gross acres in the Marcellus, mostly in Pennsylvania. Pennsylvania, West Virginia and Ohio are the three states shortlisted for the cracker location. Shell is well positioned to make such an investment. In Q2-2011, the company posted a 74% year-on-year gain in earnings to US$8 bln with its Shell Chemicals unit posting a 19% increase in earnings to $530 mln. Its debt/

capital ratio at the end of the second quarter was just 12%, providing plenty of fi nancial fl exibility for investment. As the balance of Shell’s production has shifted from crude to natural gas, explains Iain Lo, vice president of new business development and ventures for Shell Chemicals, the company has been seeking opportunities to integrate chemicals with gas. About a year ago, the company was encouraged by the decoupling of gas from crude oil and its purchase of US energy exploration company East Resources. “Marcellus jumped out as a potential opportunity in terms of availability of feedstock,” says Lo.

SERVICES AVAILABLE IN AIPMA HOUSE

• Elegant Auditorium

• Board Room

• Business Centre & Ground Floor Hall

at very nominal tariff for

your business purpose

• Library - Free use of books

and reports available


Dow’s UNIPOL™ technology selected for Qinghai Salt Lake Industry, Co.’s PPThe Qinghai Salt Lake Industry

Co. has selected UNIPOL™ Polypropylene Process Technology from The Dow Chemical Company (Dow) for its new 160 KTA polypropylene (PP) unit. The unit will provide PP as part of Qinghai’s integrated magnesium metal project to produce homopolymers, random copolymers and impact copolymers. Installation at Qinghai Salt Lake Industry Co. is scheduled to start in 2012, with start-up expected in H2-2013. Tracy Cleckler, global commercial director, Dow Polypropylene Licensing and Catalysts business said, “The plastics market in China is expanding and

this new license confi rms the interest in using advanced polypropylene process and catalyst technology to produce differentiated resins for a variety of applications.” Qinghai Salt Lake Industry Co. license is eighth licensee of UNIPOL™ PP Technology overall in China. Qinghai Salt Lake Industry Co. is the largest salt lake resources development enterprise and potassium chloride base in China with a wide range of products including potassium carbonate, potassium nitrate and potassium metal. As part of the magnesium metal project, it will utilize coal as feedstock to produce ethylene and propylene through coal

gasification, then use the ethylene and propylene as feedstock for the polypropylene unit. “With UNIPOL PP Process Technology we are able to meet growing market demand for polypropylene in China,” said the project director of polypropylene for Qinghai. “We have chosen UNIPOL because it’s one of the licensors with the most advanced propylene process techno logy ava i lab le and offers the ability to produce the broadest spectrum of products in the world.” Resins produced by UNIPOLTM Polypropylene Technology from Dow account for 17% of global polypropylene output.

COMPANY NEWS

Siemens to supply core compressor train for China PDH unit

Siemens Energy has received an order from China for the

supply of two gas-turbine-driven axial-fl ow compressors trains for the fi rst propane dehydrogenation (PDH) project in China. The purchaser is Tianjin Bohai Chemical Industry Group Co.; a company specialized in areas of the chemicals sector such as caustic soda, and the organic/inorganic/ref ined chemicals, rubber and plastic processing, and biochemicals industries. Currently, the demand for propylene in Asia is growing very fast. The implementation of PDH projects will facilitate China’s own propylene production and the development of its downstream industries. Siemens will supply two sets of axial- flow

compressors with the largest fl ow rate in the world driven by SGT-700 gas turbines. The plant in Bohua with a 60 mt/year polymer grade is the world’s largest PDH plant to date, utilizing the Catofi n dehydrogenation process developed by the U.S. company Lummus Technology.The new plant will produce propylene, which is a feedstock for the production of plastic. The incoming gas (propane) will be hydrogen-reduced to produce propylene. The Siemens compressor solution for the new plant encompasses two sets of axial fl ow compressors (STC-SX450-6V6), driven by its SGT-700 industrial gas turbines. Auxiliary systems such as control systems, dual fuel system, lube oil unit and

air filter units are also part of the scope of supply. Each compressor has the world’s largest flow rate: more than 700,000 m3/h of air will be compressed from atmosphere to 2.4 bar discharge pressure. The gas turbine is provided with a duel fuel system to operate the gas turbine with natural gas from a pipeline or with the feed gas of the plant, which is mainly propane. “The contract is a milestone for Siemens, and it establishes a very good position for us as a core player with its comprehensive compressor portfolio in the emerging PDH market in China,” said Ralf Kannefass, head of the Turbo Equipment business segment in the Siemens Energy Oil & Gas Division.


Honeywell’s UOP technology selected for propylene, cumene, phenol plant in china

UO P L L C , a H o n e y w e l l company, announced that

it has been selected by Kiangs Hail Chemical Industry Co., Ltd. to provide key technologies to produce propylene, cymene and phenol at its facility in Defang City, Kiangs Province, China.

The facility will use UOP C3 Leveled™ process technology to convert propane to propylene. Additionally, the UOP Q-Max™ and UOP Phenol™ process technologies will be integrated to convert cymene to phenol, a building block for materials such as plastic and nylon. The new units, expected to start up in 2014, will produce 510,000 metric tons of propylene, 473,000 metric tons of cymene and 360,000 metric tons of phenol annually. UOP will provide engineering design, technology

licensing, catalysts, adsorbents, equipment, staff training and technical service for the project.

“The demand for propylene and phenol is growing around the world. In China particularly, many petrochemical producers are investing in new capacity to be able to supply both their domestic and foreign customers,” said Pete Piotrowski, senior vice president for Process Technology and Equipment at Honeywell’s UOP. “This project signifi es our continued commitment toward providing advanced technology solutions that will help meet the growing demand, and we look forward to working with Jiangsu Haili Chemical on this timely initiative.” The Oleflex process uses catalytic dehydrogenation to convert propane to propylene. Compared to competing

Formosa Plastics Group not to invest in Gulei Development Zone

Taiwan-based Formosa Plastics Group (FPG) is not considering

investing in a petrochemical venture in the Gulei Development Zone in southern China’s Fujian Province, as per CNA. As per president of group subsidiary Formosa Chemicals and Fibre Corp., the conglomerate will maintain its focus on its styrene acrylonitrile plant in Ningbo, Zejiang

Province, and is not thinking about joining a reported petrochemical venture init iated by Taiwanese investors in Gulei. Chairman of the Petrochemical Industry Association of Taiwan has inked a framework agreement with China’s Sinopec Group and the Fujian provincial government in August on behalf of some petrochemical companies listed

COMPANY NEWS

PDH processes, Olefl ex technology provides the lowest cash cost of production and the highest return on investment, enabled by low operating and capital costs, high propylene yield and reliability, and maximum operating fl exibility.

The UOP Q-Max process produces high-quality cumene through the alkylation of benzene with propylene. The cumene produced is then processed using the UOP Phenol process to produce high-quality phenol with low feedstock and utility requirements. The Q-Max process is currently used to produce more than 3.5 mln metric tpa of cumene, and the Phenol process is currently used in more than 16 units worldwide with a total installed capacity of more than two million metric tpa.

in Taiwan to set up the Gulei zone. The Gulei petrochemical complex will become operational by 2015, with its refi nery processing 16 mln tpa of crude oil and a naphtha cracker producing 1.2 mln tons of ethylene. Local companies interested in the project include Ho Tung Petrochemical Corp., LCY Chemical Corp., USI Corp. and China Petrochemical Development Corp.


Engel opening India tech centerSchwertberg-based Global

injection molding machine maker Engel Holding GmbH plans to open a technical center and seminar center near the Mumbai International Airport in India. According to the release the center will be used for machine demonstrations, customer trials, pre-production and running mold trials. It will also include an expanded spare parts warehouse. The center will offer training seminars that will lead to qualifi cations for machine operators and maintenance technicians. Jitendra

Devlia, managing director of Engel Machinery India Pvt. Ltd. said “The Indian market for injection moulding is transforming beyond recognition. Issues like maximum product quality, long-term reproducibility, proper mold protection and set-up time optimization are becoming ever more important to our clients. Expansion in India is being driven by strong demand from automotive, packaging, appliance, ag r i cu l tu ra l and cons t ruc t ion customers.”

Eastman opens new subsidiary in India as part of global growth strategyAs part of its global growth

strategy, US based Eastman Chemical Company has opened a new subsidiary, Eastman Chemical India Pvt. Ltd. in Mumbai. Commenting on the move, Mr. Edwin Williamson, Vice President and MD, Asia Pacifi c, said “Over the past few years, China has been our primary growth market but we need, now, to enhance also our presence in India. We are

already present in Mumbai with local employees and technical support, but this new legal status will better enable the company to pursue our growth objectives in India.” “Eastman Chemical India Pvt. Ltd. represents Eastman’s renewed commitment to India and will serve as a platform for adding new talent and pursuing organic growth,” noted Chandrasekharan Krishnan, Country Manager for India.

Maruti Suzuki installs plastic fuel tank in newly unveiled Swift

Maruti Suzuki India Ltd., the leading auto manufacturer,

has installed a plastic fuel tank in the upgraded version of Swift. The surging fuel prices have impacted the sentiments in the automobile market in the country. The local automakers are now working with the

COMPANY NEWS

aim to bring improvement in the fuel effi ciency of the cars by using plastics components. Managing Executive Offi cer for engineering, Maruti Suzuki, I V Rao, said, “We have been using plastic components in our models earlier as well, but [the] upgraded Swift would be the fi rst passenger car

model in our lineup to use the plastic fuel tank.” Moreover, the six-layer tank has helped in reducing the weight of the Maruti Swift by nearly 6 kilograms, which has contributed to a total weight reduction of nearly 30 kg as against the previous models.

Kuwait Petroleum Corp (KPC) has sold over

100,000 tons of ful l -range naphtha for September 10-20 loading at a premium of US$18-19/ton, reflecting a nearly 55-60% increase from its previous sales premiums.Two 50,000 ton cargoes of full-range naphtha were sold each to Arcadia and Itochu. A third cargo was sold to Vitol. KPC had on July 7 sold around 150,000 tons of full-range and light naphtha at premiums of US$11-12/ton to Middle East quotes on a free-on-board (FOB) basis. Thereafter, improved sentiments pushed up cracks for seven straight sessions from August 10 to reach a 3-1/2-month high on Aug. 18 at a $129.25/ton premium. Markets have gathered some strength because of limited European infl ows and also due to temporary short-covering.

KPC sells over 100,000 tons of full-range naphtha at a premium of US$18-19


APPE, one of Europe’s major m a n u f a c t u r e r s o f P E T

preforms and bottles, has won the ‘Beyond the Package’ category of the Greener Package Awards for the company’s initiatives in recycled PET product ion and the 100% remanufacture of the material into packaging applications.“We are

delighted to receive the Greener Package Award accolade,” said Martin Hargreaves, APPE’s general manager. “Over the years, we have consistently demonstrated our commitment to environmental responsibility in many different ways, including our pioneering work in the production of food-grade recycled PET and its

APPE gets packaging award for going above and beyond

ONGC mulls commission of two JV petrochem projects in 2012 and 2013

Oil and Natural Gas Corp (ONGC) plans to commission

two large petrochemicals projects are currently under development through joint ventures in 2012 and 2013, as per Reuters. The petrochem project

COMPANY NEWS

Ford to use soy-based PU foam in headrests

Thai PET resin supplier Indorama Ventures will

build a US$22.4 million PET bottle recycling plant in Nakhon Pathom. With a capacity of 28,500 tonnes/year it will commence by 2012. the company says PET bottles will be collected and recycled to produce high quality resin for making containers for consumer drinks; yarns for premium garments of environmentally-conscious brands and coloured fi bres for automotive and non-woven end applications. Indorama recently launched the ECORAMA brand for its recycled polyester fi bres and yarn products.

Indorama’s Thai PET recycling plant

direct remanufacture into packaging, and the development and subsequent expansion of our Beaune plant. “All of this clearly showcases the major role recycled PET can play in an effective sustainability programme. The award is a fi tting independent endorsement of our achievements to date.”

Ford Motor Co. is taking its use of soybean oil-based foam blends

into another part of the car -- headrests. The Dearborn based automaker was the first major automaker to begin using a soy foam blend when it put it into seats on the 2008 Mustang. It has now used in seats throughout Ford’s vehicle lineup. In 2010, the company began using soy foam blends in headliners.Now Ford will use a foam with 25 percent soy-based content in head restraints in three-quarters of

its vehicles, including the top selling F-150 truck, the Taurus sedan and Explorer sports utility vehicle.Supplier Lear Corp. will make the restraints. The Southfi eld, Mich.-based company was also the development partner on previous soy-based foam parts with Ford.Ford estimates it has cut its use of petroleum-based foam by 3 million pounds per year by adapting to the soy blends made using renewable sources.

at Dahej, being developed by ONGC Petro-additions Ltd (OPAL) is planned for commissioning in 2012. The second by ONGC Mangalore Petrochemicals Ltd (OMCL) is due for commissioning 2013.


Bad roads.. Why don’t we use plastics for paving?

Now-a-days one could easi ly f ind many

articles online / internet discussing various ways of recycling and reusing plastics. Also despite bad roads we keep on cribbing rather than looking out for options. A case in the point is recent developments in Baltimore where in plastic fabrics were used for pavings and one could see the results for themselves.

Most of us are aware plastics couild be also reused for paving as we know that the major cause of roadway deterioration is water beneath the pavement. The source of the water can be either rainfall or irrigation. Water softens the subgrade and typically reduces pavement structural capacity by about 60%. A pavement, which is saturated as little as 10% of the time, will only have 50% of the life of a pavement with a dry base. Most of this water enters through cracks and pores in the pavement.

Paving fabrics have been long recognized as a way to help pavements last longer. A leading cause of pavement deterioration is water intrusion through the pavement. In addition to providing

an effective moisture barrier for pavement, paving fabrics can reduce the need for repetitive maintenance and rehabilitation costs over time. The key benefi ts are reduced crack development and l imited water intrusion.

Paving fabrics are typically a nonwoven, polypropylene fabric used as a water-proofi ng membrane. Applied with and in combination with a liquid asphalt tack coat, this system can be

used under AC overlays and under chip seals. Although paving fabrics have been around since the mid-1960s, like many other technologies these days, they are getting greener.

There are many companies that offers paving fabric say like TenCate Geosynthetics that now offers a paving fabric created with post-consumer throw-away plastic containers. This “green” paving fabric continues to be manufactured with polypropylene,

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Paving fabrics have been recognized as a way to help pavements last longer. In addition to providing an effective moisture barrier for pavement, paving fabrics can reduce the need for repetitive maintenance and rehabilitation costs over time.

Potholes as seen on roads in the city


however, it is blended with waste polyester, which is obtained from recycled plastic bottles. The TenCate fabric is manufactured with up to 25% post-consumer plastic waste. One difference is that the green fabric is heavier than the conventional fabric. This has both benefits and disadvantages:

The standard rate of AC, which is normally .25/gallon, goes up to .27/gallon or .28/gallon. Also there is more ‘meat’ in place fi ghting the moisture penetration that happens with asphalt. Green paving fabrics have an advantage over conventional paving fabrics because it is made from plastic resin. Green paving fabrics are expected to have a higher effectiveness as a waterproofi ng barrier because of

its increased amount of PG asphalt binder applied during placement.

This green stress-absorbing membrane interlayer (SAMI) can be used any where there’s asphalt paving – from roads to a i rpor ts to parking lots. The fabric is manufactured to meet AASHTO M288 paving fabric specifi cations and meets al l the tensile and physical properties necessary.

This fabric can be milled up and used in RAP; it will go through the screening process, just

like any other paving fabric.

I t comes with a two-year guarantee. Installation process f o r g reen pav i ng fabric is the same for a conventional paving fabric, and m e e t s A A S H T O s p e c i f i c a t i o n s . E q u i p m e n t a n d p rocess used fo r installation continues to be same. Recently nearly 20,000 square yards of the green fabric was installed over the surface area of a parking lot in Baltimore, MD.

A typical paving procedure using plastic fabrics

Plastic pavings on roads

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Recent Development on SME IPO:

A new exchange for small and medium enterprises (SMEs),

a Bombay Stock Exchange initiative, would go live in September as it is proposed now (article written in August 2nd week). It will try to target to rope in 500 members in fi rst year, according to an estimate.

SME Exchange has distinct benefi t in terms of listing and other fees which would be about half of what the main board charges. SME IPO / Exchange will help SMEs towards wealth creation by the SMEs, through inclusive economic growth, unleashing valuations and, also, creating wealth for all stakeholders, besides considerable income tax benefi ts and the facility to exit at any point of time.

SMEs with paid-up capital up to Rs 10 crore can come on the SME Exchange, in contrast to the minimum paid-up capital of Rs 10 crore or more for the main board. The listing norms have been simplifi ed. The SME IPO issuer has to take approval of the exchange; an okay from the Securities and Exchange Board of India isn’t required. A copy of the offer document will be sent to SEBI for information. Half-yearly compliance would be required, instead of quarterly. Abridged versions of the annual reports need to be sent to investors instead of the entire one; keeping a copy of the report on the website is suffi cient.

A websi te for a member is compulsory. SMEs with paid-up capital

between Rs 10 crore and Rs 25 crore could choose to get listed at either the main board or the SME Exchange.

The SME Exchange is expected to benefi t SMEs to raise funds and leverage on their share value for the future growth of companies. (information compiled from press notes and media release)

Mind:IPO is a dream for any SME, given

the reputation attached with being a listed company. It is also an important source of funds for expansion projects. Key ingredient to a successful SME

IPO is a strong business model. The company should strive to become one of the key players in the segment in which it is operating in terms of size, relative profi tability, sustainable competitive advantage, etc.

Transition from Mind to Market:

Once SME p romote rs and management make up their mind for SME IPO, the time starts now, the process begins, the speed depends on the what SME company has achieved so far in terms of market and / or business development, customer

SME IPO CONNECT: “Mind to Market”

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acquisition, quality control, technology empowerment and marketing.

Marketing looks into brand building of products and services, company as a brand, brand equity to customers, suppliers, employees, associates and others, promoters strength – vision, mission path route, employment opportunities, equity or investment ROI, impact of PEST-L and analysis of SWOT, growth opportunities, media, means and methodology applied for best results from strategic and systematic marketing.

Before company approach any PE fund manager in case decide to go for PE fi rst or directly for SME IPO (which is not a diffi cult proposition with SME Exchange around the corner), the above listed transition exercise is must.

Compliance work may be carried along in parallel by the legal and compliance expert. Finally, SME will add value to financial results with value creation in the niche segment and market it is handling – no mass exposure is important during this phase of transition.

Once Value Creation process is duly complete, SMEs can approach BSE SME Platform and through their assistance or otherwise fi nd a merchant banker who will take interest in his proposed IPO.

Remember, it is not so easy for any merchant banker to pick up any project that comes to his desk due to several constraints laid down by SME Exchange and other bodies.

The company should also try to generate awareness about

its products, specialties, relative strengths, upcoming projects, etc. A widely known company tends to get more favorable market response.

Market:The risk is to plan to raise funds

through the IPO channel. Running an IPO is an expensive process. As the company is widely discussed during the IPO process, its market reputation is also at stake.

A major risk therefore is of poor market response. The company’s image also takes a hit if the market reaction is unfavorable. Unlike other IPOs, in case of SME IPO the responsibility is on merchant bankers to fully underwrite the issue and hand holding SME for 3 yrs period besides co-operative business arrangement with market makers.

If the IPO has lower participation, post-issue trading volumes may be low denying the company of many benefi ts which it seeks from an IPO.

A merchant banker brings in experience of the IPO process and pulse of the market. He leads the company through every stage in the IPO process e.g. pre-issue activities such as deciding on valuation, IPO size, proposed capital expense, investor presentation, regulatory approvals, issue related road shows, presentations, networking, positioning of the company and the IPO, logistical support like appointment of collection agents, accepting bids, etc.

Merchant Banker ensures that the issue receives desired market response and the process unfolds smoothly.

The challenge:Marketing challenge for players

towards SME Exchange & SME IPO is - SMEs is to be educated and to convince SME owners to get listed on the SME Exchange and the investors also need to be convinced to invest in the SMEs.

The first step:SMEs must approach a professional

who offers SME IPO specifi c step by step advisory :

(a) Brain storming session with SME promoters and management towards IPO and other options of raising fi nance, Dos & Don’ts

(b) Incubator & Mentoring services for SMEs towards IPO incl. interfacing fi nance and marketing

(c) Branding SMEs for IPO

(d) Strategizing 360 degree, 7 business functions - internal and external marketing and management

(e) Preparing for professional outlook

(f) Systems to make organized approach to everything in day to day business viz. (a)-(f) : Value Creation and Visibility Marketing for SMEs.

Obviously, compliance are looked after by company appointed CA. This is an important phase ranging from few months to couple of years to get the best out of IPO and PE.

By ASHWIN MERCHANT, SME Marketing Expert,

Reach him by email:[email protected] or contact him

on 022-23510752


“With the forvision smart is doing justice to its role as

Daimler’s think tank for urban mobility. We are presenting numerous world premieres that make uncompromising electric mobility possible.

With the clear objective of greatly increasing the zero-emission range we concerned ourselves with all factors that infl uence this on the vehicle. This resulted in completely new concepts and materials in the areas of insulation, reflection, lightweight design and energy management.

In addition to transparent organic solar cells, transparent and energy-saving light-emitting diodes and infrared-refl ective fi lms and coatings, high-performance foams are used for insulation against cold and heat. smart is also setting new standards of lightweight design with the use of the fi rst all-plastic wheels,” says Dr. Annette Winkler, Head of smart. “In conjunction with smart’s revolutionary DNA, we have designed a vehicle that is so unique that we can’t wait to take it out of the research laboratory and

onto the roads!”

“Cars of the future need materials and technologies which reduce energy consumption whilst also increasing the range and level of comfort. Our innovations make a decisive contribution to this,” says Dr. Christian Fischer, Head of BASF Polymer Research. “We are proud to have developed a holistic concept for sustainable urban mobility in cooperation with smart. Together we are presenting a pioneering vehicle which is without parallel.”

Thanks to the combination of smar t ’s au tomot ive exper t i se and BASF’s material and system competence, a vehicle has been created which showcases technologies for sustainable and holistic electric mobility of the future.

The researchers and designers intentionally realised a mixture of visionary materials and technologies in the concept vehicle: some of these are still at a laboratory stage, while others have a realistic chance of entering series production.

Energy efficiency: light and energy from above

The hexagonal transparent areas on the roof of the smart forvision are an eye-catching feature – as the fi rst light-transmitting roof that also generates energy. Transparent solar cells covering the entire roof surface are the technology used here. They are based on organic dyes embedded in a sandwich roof.

The transparent dyes of the solar cells are light-activated. Even in diffused light and poor light conditions, they generate enough energy to power the multimedia components and the three fans that assist with climate management in the vehicle interior.

Say, if the vehicle is standing in the sun the ventilation is permanently operated with the help of these solar cells, thereby keeping the car cool and onecan feel the diffrence. This new photovoltaic technology opens up further effi ciency potential and the energy generated can be used for additional applications in the car.

Smart Forvision: A look at the future of electric mobilitySmart has always been a pioneer in matters of urban mobility and with the smart for two electric drive the company is showing the direction of development in cities around the world. Together with BASF, the largest automotive supplier in the chemical industry, smart is demonstrating its leading role in the use of forward-looking technologies above and beyond the drive system. The joint concept car smart forvision, presented at the 2011 International Motor Show in Frankfurt, combines a futuristic design with technologies relating to energy efficiency, lightweight and temperature management.

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There is an additional new feature under the solar cells: transparent OLEDs (organic light-emitting diodes) illuminate the vehicle interior when the door is opened or a button pressed. When switched off they allow for a clear view outside.

This results in a glass roof effect during the daytime, whilst the areas are pleasantly illuminated without any dazzle at night. Thanks to a free choice of colours the new OLEDs not only offer more design freedom, they also consume less than half as much energy as conventional energy-saving lamps.

Lightweight: different, better, stylish

In the smart forvision a world fi rst leads to a considerable weight reduction and a unique design: the first all-plastic wheel suitable for high-volume production. In its current development status, the wheel developed by BASF from a new high-performance material results in a considerable weight saving of three kilograms per wheel. Unlike conventional polyamide composite materials this new plastic has long reinforcing fi bres which improve its mechanical properties. The result: excellent thermal and chemical stability, dynamic strength, toughness and good continuous operating characteristics. First intensive product tests at smart show the performance capability of the all-plastic wheel and confi rm the potential for possible use in production vehicles.

In addition to the tridion passenger cell, further components such as the doors are made of carbon-fi ber-

reinforced epoxy resin – a high-performance composite material. The use of such materials enables a weight saving of more than 50 percent to be achieved compared with steel, or 30 percent compared with aluminium. Thanks to short hardening times the resin systems from BASF are also suitable for producing larger volumes.

Heating: close to the body and efficient

The multifunctional, comfortable and lightweight seats in the smart forvision offer a unique combination of effi cient temperature management and an energy-saving lightweight design. Here, several innovative products are combined with one another for the fi rst time. A new, lightweight, self-supporting plastic seat shell forms the basis.

Numerous studies have shown that the body only absorbs heat effi ciently through certain contact points. This is why “e-textiles” – thin fabrics with custom-tailored conductive coatings – replace conventional seat heating in the smart forvision. With direct heating close to the body in the middle and lower back area of the seats they provide for a pleasant feeling of warmth. The energy, space and weight-saving e-textile technology is also found in the armrests of the doors and ensures that body contact points sensitive to the cold are also warmed in this area.

The innovations continue with the seat foam, which provides for both comfort and weight savings. The material from BASF is around 10 to 20 percent lighter than other materials

and enables different degrees of hardness to be realised in different areas of the upholstery in a single work operation – resulting in clear ergonomic advantages.

Superabsorbent containing fl eece fabric integrated in the seat greatly enhances seating comfort through its passive climate control. Compared with conventional climate-controlled seats the lightweight seat in the smart forvision does not have the complexity and energy requirement of mechanical ventilation.

Temperature management: heat stays outside

As a large amount of energy is needed to air-condition and heat a vehicle, temperature management was a key focus area for the smart and BASF researchers. A whole package of measures has been implemented in the smart forvision to ensure more effi cient air conditioning of the vehicle. At the same time they make energy-intensive heating of the whole interior superfl uous.

A heat shield that has not been previously used for automotive applications consists of a new kind of infrared-refl ective fi lm from BASF, applied in the windscreen and side windows, protecting the car interior from heating up. Integrated between the panes of the safety glass the metal-free fi lm ensures that the infrared rays are effectively refl ected. Thanks to its high transparency in the visible range it can also be applied to tinted windows and guarantees an unprecedented level of refl ection of sunlight and heat. Unlike metallized films, which are

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already used in some vehicles, the new fi lm refl ects only the infrared rays of the sun. Radio waves that are necessary to use GPS, Bluetooth, mobile phones or toll collection pass through the glass unhindered.

The high-performance foams from BASF fitted in the bodypanels also provide for a pleasant climate inside the car. They keep the vehicle pleasantly cool in summer and also insulate it against the cold in winter. Thanks to their high effi ciency even in a small width, they can be fi tted everywhere in the vehicle. With this innovative insulation system in the smart forvision, the two companies are breaking new ground in the automotive sector.

Cool coatings – cool interior

The in f rared- re f lec t ive and extremely scratch-resistant coatings system covers two important aspects at once. Firstly, it supports the extensive temperature management system and, secondly, the brilliant and high-quality look of the coating underlines the unique design of the smart forvision. The concept vehicle features a white special-effect coating with glass fl akes that create a gleaming metallic look. An important side effect: the colour white reflects heat rays from sun and light particularly well. But even surfaces coated with dark colours stay much cooler thanks to special colour pigments from BASF. They ensure that heat radiation is refl ected rather than absorbed. This leads to a temperature reduction of up to 20 degrees Celsius on the paint surface and of up to approximately four degrees in the vehicle interior.

Futuristic design trendsetter

Painted in pear l whi te and accentuated by the tridion safety cell coated with a copper-coloured liquid metal paint, there is a deliberate connection between the basic structure of the smart forvision and the design of the smart fortwo. Trendy yet high quality – the aluminium flakes in the liquid metal paintwork create a refl ecting surface on the safety cell, changing between light and dark depending on the viewer’s perspective. Both the panels and the cell of the smart forvision are additionally painted with an extremely scratch-resistant clear coat.

The faceted side doors with integrated door openers are a real eye-catcher. Here, plastic is presented in a new, expressive and three-dimensional form; a reinterpretation that is only possible at smart thanks to the consistent use of plastic. The precise facets give the area stability and enable a smaller material thickness to be used. Optimal use is made of the possibilities offered by plastic as a material. In contrast, the front and rear have a softer design with smooth transitions from the doors. Just as the integrated door handle does not need an additional component, the familiar smart air inlet is represented by small hexagons located right on the outer skin.

The je t - l ike rear l ights are reminiscent of small aircraft turbines and give the rear a futuristic and sporty look. Inside the lights, small propellers convey the air from the inside to the outside. In addition to all the light functions needed, transparent stacks

in the form of rings around the lights also show the charge status of the battery during charging.

The headlamps are emphasised by a ring comprising the daytime driving lights and indicator functions. The lights add to the likeable expression of the smart forvision.

Doors open to the futureWith a mix of polygonal surfaces

and organic shapes the interior of the smart forvision builds a bridge to the architectural design handwriting of the exterior. This also applies to the colour concept: a cool white dominates in the interior as well, accentuated by the inner part of the instrument panel in liquid copper. Hexagons in the form of white rubber nubs on a white fl oor are a reference to the design idiom of the overall vehicle, as is the tone-in-tone design of the seat upholstery.

The faceted surface of the side doors is also found on their inside. The polygonal surfaces with integrated armrests and stowage compartments curve into the interior. They are painted in the body colour and feature coloured LEDs. These greet the driver with a light animation when the door is opened and closed with light running from the outside to the inside and also guide him out again. After closing the door the animation changes to unobtrusive ambient lighting.

The elliptical user interface with a copper coloured frame – matching the lightweight tridion – is semi-transparent when switched off. When the vehicle is switched on all cockpit information is then projected onto the transparent surface. The driver uses a touchscreen

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to switch between operating menus.

The white steering wheel that is reminiscent of an aircraft yoke gives the cockpit an additional futuristic look. Function buttons as well as the LED display for the battery charge status are found here.

Forward-looking technologies

The smart forvision not only shows that electric mobility can make emission-free driving possible. At the same time, it also paves the way for

new technologies in the automotive sector. Many of these innovations are based on nano technology, the key to the development of sustainable solutions. Nano materials serve as drivers of innovation in the automotive industry, as they do in the fi elds of construction, energy, healthcare and electronics.

The total of all technologies integrated in the concept vehicle make a perceptible contribution to increasing the range. This is always at the centre of discussions relating to battery-electric driven vehicles.

With maximum energy efficiency, intelligent temperature management and consistent lightweight construction it is possible to increase the range by up to 20 percent - an additional bonus for electric mobility of the future.

Further information from smart is available on the internet:www.media.daimler.com www.smart.com

Further information from BASF is available on the internet:www.basf.com

Daimler and BASF have developed a new concept

vehicle that combines both companies’ ideas for holistic electric mobility. The resulting vehicle is the smart forvision, which has been developed with a special emphasis on energy effi ciency, temperature management and lightweight design. The smart forvision will have its world premiere at the 64th International Motor Show in Frankfurt.

Both Daimler and BASF are engaged in wide-ranging research and development work aimed at getting electric cars on the road and ensuring that electric mobility becomes part of everyday life as soon

as possible. Daimler is embracing the age of electric mobility: it is the fi rst car manufacturer to have released four electric production models, and its smart fortwo electric drive is a pioneer among battery-driven vehicles. BASF, the world’s largest supplier of chemical products to the automotive industry, develops sustainable, environmentally friendly solutions for the energy-effi cient mobility of tomorrow. The two companies have now combined their technological competencies for the fi rst time, developing a forward-looking vehicle concept that offers decisive solutions to the challenges of the future. The new vehicle brings design, lifestyle and technology together to

form a new functional whole.

“In this joint project with Daimler we have successfully developed a holistic approach to urban mobility of the future. This is something we are very proud of. Our research activities make an important contribution to ensuring that electric cars are affordable, environmentally friendly and sustainable,” says Dr. Andreas

Daimler and BASF combine know-how in pioneering vehicle project

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Jointly developed smart forvision concept vehicle would have world premiere at the 2011 International Motor Show in Frankfurt


Kreimeyer, member of the Board of Executive Directors and Research Executive Director of BASF SE.

“The smar t fo rv is ion is an impressive example of what can be achieved when two leading companies from two very different sectors sit down together. It was exciting to see how our developers and designers worked with the researchers at BASF and came up with a joint vehicle concept that provides a meaningful insight into the future of electric mobility,” says Dr. Thomas Weber, Daimler AG board member responsible for Group Research and Development at Mercedes-Benz Cars.

Because it has always set itself apart from other vehicle concepts, the smart was predestined for this joint project. As a result, the smart forvision is the perfect vehicle for showcasing new technologies. The researchers and developers have succeeded in combining no less than five automotive world premieres in the new concept vehicle. Transparent organic solar cells, transparent organic light-emitting diodes, all-plastic wheels, new lightweight body components and infrared-refl ective fi lms and coatings

all help to reduce the vehicle’s energy consumption and so increase its range and practicality.

Energy efficiency State-of-the-art materials and

technologies allow new concepts to be implemented in the electric car that not only save energy, but even generate it. The resulting increase in range contributes to further improving the performance and economy of electric vehicles. The smart forvision features energy-efficient solutions such as power-generating solar cells based on organic-chemical dyes on the roof. Combined together with energy-saving organic light-emitting diodes (OLEDs), the vehicle’s roof, which is covered in solar cells, is not just environmentally friendly, but a real design highlight as well.

One challenge in ensuring the continuing development of electric mobility is sustainably producing and using the power required to drive the cars. Electric mobility is at its most effective in preventing climate change and protecting the environment when the energy required for it is generated highly effi ciently and with minimal CO2

emissions. For this reason BASF is also working on solutions for producing electricity from renewable energies, such as wind and solar power.

Multifunctional lightweight design

The lighter an electric vehicle is, the less drive energy it requires, and the greater its range will be. Making vehicles lighter will therefore be one of the key challenges for electric mobility in the future, and BASF can make an important contribution here. Lightweight design means replacing heavy, metal components with composite plastic materials that offer the same functionality and stability. Weight can be reduced particularly successfully by substituting load-bearing components, for example the chassis, with fi ber-reinforced plastics. Moreover, the smart forvision features the fi rst ever all-plastic wheels suitable for series production, made from the new high-performance material Ultramid® Structure developed by BASF. This material, which is just as stable as metal, can reduce weight by up to 30 percent.

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Comprehensive temperature management

The heating and air conditioning systems in vehicles are major consumers of energy. The amount of energy needed to heat up or cool down the vehicle’s interior can be reduced with the help of a comprehensive temperature management system that uses innovative materials such as polymer fi lms in the windows to reflect thermal radiation, and high-performance insulating materials.

The smart forvision brings together these forward-looking technologies from the chemical industry with a unique mobility concept and distinctive design. Together, the automotive and chemical industries are making a significant contribution to the affordability, environmental friendliness and safety of electric vehicles. In the smart forvision, Daimler and BASF have laid the perfect foundations for effi cient, sustainable, uncompromising electric mobility.

About BASFBASF is the world’s leading chemical

company: The Chemical Company. Its portfolio ranges from chemicals,

plastics, performance products and agricultural products to oil and gas. As the world’s largest supplier of chemical products to the automotive industry, BASF is a reliable, competent partner to the industry throughout the value chain, for automotive manufacturers and suppliers and in customer service. BASF offers a wide range of products for use in the automotive industry, from technical plastics, polyurethane and special foams, styrene plastics, paints and fuel additives to catalysts, pigments, coolants and brake fl uids, and chemicals for leather and textiles. BASF posted sales of approximately €63.9 billion in 2010 and had approximately 109,000 employees as of the end of the year. BASF is listed on the stock markets in Frankfurt (BAS), London (BFA) and Zurich (AN). More information about BASF is available online at www.basf.com and in the Social Media Newsroom at newsroom.basf.com.

About DaimlerThe company’s founders, Gottlieb

Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. 125 years later, in the anniversary year 2011, Daimler AG is one of the world’s most successful automotive companies.

With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides its customers with a full range of automotive fi nancial services including fi nancing, leasing, insurance and fleet management. As an automotive pioneer, Daimler continues to shape the future of mobility: the Group applies innovative and green technologies to produce safe and superior vehicles which fascinate and delight its customers. With the development of alternative drive systems, Daimler is the only vehicle producer investing in hybrid drive, electric motors and fuel-cell systems, with the goal of achieving emission-free mobility in the long term. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment. Daimler sells its products in nearly all the countries of the world and has production facilities on fi ve continents. Its current brand portfolio includes, in addition to the world’s most valuable automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner, Western Star, BharatBenz, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges in Frankfurt and Stuttgart (stock exchange abbreviation DAI). In 2010, the Group sold 1.9 million vehicles and employed a workforce of over 260,000 people; revenue totalled €97.8 billion and EBIT amounted to €7.3 billion.

Daimler press contact: BASF press contact:

Eva WieseTel.: +49 (0)711 17-92311Mobile: +49 (0)160 8621617Email: [email protected]

Ian deSouzaTel.: +65 6432 3684Mobile: +65 91195162Email: [email protected]

Shirin EmeeraTel.: +49 (0)711 17-93271Mobile: +49 (0)160 8628055Email: [email protected]

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Bio-based plastics to emerge as growth potential

The market for bio based plastics is still growing and is yet to

grow far more. In fact in the past two decade bio-based plastics have faced renaissance. One should expect more growth in coming years for the simple reason global demand for bio based plastics is now more than 38%, with Europe registering the annual growth rate of 48 %. The article is based on the study done commissioned by European Polysaccharide Network of Excellence (EPNOE) and European Bioplastics.

Today, public concern about the environment, climate change and limited fossil fuel resources are important drivers for governments, companies and scientists to fi nd alternatives to crude oil. Bio-based plastics may offer important contributions by reducing the dependence on fossil fuels and the related environmental impacts. In the past few decades, many new polymers from renewable feedstocks were developed.

For example, starch, i.e. a naturally occurring polymer, was rediscovered as plastic material. Other examples are PLA that can be produced via lactic acid from fermentable sugar and PHAs which can be produced from vegetable oil next to other bio-based feedstocks.

Recent developments in emerging bio-based plastics are spectacular from a technological point of view. Many

old processes have been revisited, such as the chemical dehydration of ethanol which leads to ethylene, an important intermediate chemical which can be subsequently converted into polyethylene (PE), polyvinyl chloride (PVC) and other plastics.

Moreover, recent technology breakthroughs have substantially improved the properties of novel bio-based plastics, such as heat-resistance of PLA, enabling a much wider range of applications. For numerous types of plastics, fi rst-of-its kind industrial plants were recently set up and the optimization of these plants is ongoing. Some of the plant capacities are still rather small when compared to petrochemical plants (capacity of Tianan’s PHA plant is only 2 kt), but others are very sizeable (Dow-Crystalsev’s biobased PE plant is to have capacity of 350,000 tons).

With growing demand for bio-based plastics, it is probably just a matter of time until turnkey plants with large capacities will be commercially available for more bio-based plastics, thereby a l lowing substant ia l ly accelerated growth.

This study estimates the global capacity of emerging bio-based plastics at 0.36 mln tons by the end of 2007. This is approximately 0.3% of the worldwide production of all plastics (dominated by petrochemical

plastics). The current production capacity of bio-based plastics is even smaller compared to “conventional bioproducts”: they represent only 2% of the global production of established bio-polymers (20 tons; comprising cellulose polymers, alkyd resins and non-food starch without starch for fuel ethanol) and only 0.1% of the world paper and board production. However, the market of emerging bio-based plastics has been experiencing rapid growth.

From 2003 to end of 2007, the global average annual growth rate was 38%. In Europe, the annual growth rate was as high as 48% in the same period.

The total maximum technical substitution potential of bio-based polymers replacing their petrochemical counterparts is estimated at 270 tons, or 90% of the total polymers (including fi bres) that were consumed in 2007 worldwide. It will not be possible to exploit this technical substitution potential in the short to medium term.

The main reasons are economic barriers (especially production costs and capital availability), technical challenges in scale-up, the short-term availability of bio-based feedstocks and the need for the plastics conversion sector to adapt to the new plastics. Nevertheless, this exercise shows that, from a technical point of view,

Recent technology breakthroughs have substantially improved the properties of novel bio-based plastics, such as heat-resistance of PLA, enabling a much wider range of applications


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there are very large opportunities for the replacement of petrochemical by bio-based plastics.

The worldwide capacity of bio-based plastics, according to company announcements, will increase from 0.36 tons in 2007 to 2.33 tons in 2013 and to 3.45 tons in 2020. This is equivalent to average annual growth rates of 37% between 2007 and 2013 and 6% between 2013 and 2020. In 2007, the most important products in terms of production volumes were starch plastics (0.15 tons) and PLA (0.15 tons). Based on the company announcements it is projected that the most important representatives by 2020 will be starch plastics (1.3 tons), PLA (0.8 tons), bio-based PE (0.6 tons) and PHA (0.4 tons).

Today, the combined volume of these non-food and non plastics applications of starch and man-made cellulose fi bres is 55 times larger than the total of all new bio-based polymers (approx. 20 tons versus approx. 0.35 tons in 2007). The new bio-based polymers may reach this level in 20-30

years from now. The use of starch for paper production only amounts to 2.6 tons and is hence still six times larger than today’s worldwide production of bio-based plastics. This demonstrates that the production of bio-based products at very large scale is not unprecedented.

First-in-kind production of bio-based plastics in large industrial plants should be seen as a large-scale experimental phase in which the strengths and weaknesses of the various biobased plastics and their production routes become apparent. The experience gained must then be taken into account when the production reaches the steep phase of the S-curve. It will hence take more than two decades from now until meaningful benefi ts such as CO2 emission reduction will be achieved at the macro level. On the other hand, the advantages of slow substitution of petrochemical plastics are that technological lock-in can be more easily avoided and that an optimized portfolio of processes can be implemented, ensuring maximum

environmental benefits at lowest possible costs and minimum social backlash.

Several factors clearly speak for bio-based plastics. These are: the limited and therefore uncertain supply with fossil fuels (especially oil and gas), the related economic aspects, environmental considerations (especially savings of non-renewable ene rgy and g reenhouse gas abatement), innovation offering new opportunities (technical, employment etc.) and rejuvenation in all steps from chemical research to the fi nal product and waste management. Challenges that need to be successfully addressed in the next years and decades are the lower material performance of some bio-based polymers, their relatively high cost for production and processing and the need to minimize agricultural land use and forests, thereby also avoiding competition with food production and adverse effects on biodiversity and other environmental impacts.

Bioplastics with new alternatives have wider applications

Until recently many bioplastics found application in highly

undemanding applications because of their poor mechanical properties. However, recent ly in t roduced materials and additives are leading to development of a new generation of bioplastics that can fi nd application

in much more demanding end-use environments.

Also, upt i l now, companies developing products from biopolymers could use all-natural masterbatches with its limited, expensive and not very process- or light-stable range of colors and additives. Or far more

they could use conventional pigments and functional ingredients and compromise on the environmental friendliness of their product. While the matrix resin might have been compostable or biodegradable, the colorants and additives were not. But new alternatives are now available

Bio plastics allow for the realization of diverse applications within the electronic and household appliances sector


with many of the producers getting innovative and trying to work on developing new compounds.

B iop las t ics producer FKuR Kunststoff GmbH has introduced a wide range of biodegradable, biobased and natural fi bre reinforced compounds that offer a wide range of possibilities. Further developments have been made in the cellulose acetate based Biograde® products. The highlight of this development is Biograde® V 2091 which is a completely transparent injection mouldable grade that has been developed for thin wall parts with long fl ow paths. Along with its high transparency, it stands out due to its smooth and shiny surface. Moreover, especially for thin walled parts, it out performs standard polystyrene (PS) for fl exibility and heat distortion temperature. These properties allow for the realisation of diverse applications within the electronic and household appliances sector.

Clar iant Masterbatches has developed color and performance innovations for plastics packaging. RENOL®-compostable colors and CESA®-compos tab le add i t i ve m a s t e r b a t c h e s i n c o r p o r a t e conventional (non-natural) additives and pigments in a biopolymer carrier resin. Testing of the ingredients, completed in the independent laboratories of OWS nv (Gent, Belgium) determined that the materials can comply with EN 13432:2000 – the widely recognized standard for heavy-metal content and plant-toxicity. The RENOL-compostable product line includes masterbatches based on over 80 different pigments, so color choices are almost unlimited. CESA-

compostable additive masterbatches include UV-stabilizer and antioxidant packages, with more addit ives currently pending review. It has been granted OK Compost certifi cation by AIB Vinçotte. Any product featuring the OK Compost logo can be assumed to comply with the requirements of the EU Packaging Directive (94/62/EEC), which seeks to limit packaging waste. The certifi cate indicates conformity with approved production procedures and guarantees that only colorants and additives that pass strict testing for ecotoxicity are added to the biopolymer carrier resin. These additives give the performance and cost benefi ts and does not change the compostability of products made of the bio-based resins.

Dow Plastics Additives produces Paraloid BPM-520 at its facility in Jurong, Singapore. The additive is said to help improve the impact resistance of opaque, injection molded polylactic acid (PLA) products with minimal effect on heat distortion temperature and stiffness. PLA is derived from cornstarch; its brittle nature means that for many applications, modifi ers are required to improve its impact resistance. It is designed for use with injection molded PLA applications to improve their impact strength at room and sub-zero temperatures, improves impact strength of PLA/PC alloys, has minimal effect on stiffness and heat distortion temperature and is food contact compliant.

PolyOne incorporates the impact modifi er into its OnCap BIO Impact L masterbatches. OnCap BIO L fl ows well for mold fi lling, maintains part stiffness and can be easily colored. The master batch and additive can be used

in compliance with the Commission Regulation (EU) No 10/2011 on plastics materials and articles intended to come into contact with food and with U.S. Food and Drug Administration (FDA) requirements. This is the fi rst supplier to be granted OK Compost certification by AIB Vinçotte for its full range of colorants and additives. Because the PolyOne solutions meet this standard, they are authorized to use the OK Compost label, which identifi es the item as biodegradable in an industrial composting plant. PolyOne has unveiled reSound biopolymer compounds for durable appl icat ions. These innovat ive materials, which incorporate a minimum of 30% bio-derived content by weight, enable manufacturers in the durable consumer products sector to reduce environmental impact of their products while delivering exceptional performance equal to or better than conventional engineering resins. reSound compounds solve this dilemma by providing both a high percentage of renewable content and excellent mechanical properties. With reSound biopolymer compounds, tomorrow’s cars, mobile phones and other durable applications can stand out from the competition with a combination of sustainability and performance. reSound compounds combine high performance engineering thermoplastic resins with bio-derived polymers such as polylactic acid (PLA) for a unique balance of temperature, impact and cost performance, making them ideal candidates for durable applications across a variety of industries. reSound compounds are an excellent choice for applications including consumer durable goods,

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interior automotive components, medical devices and equipment, electronics housings and equipment.

Primary benefits include:• Impact resistance and toughness,

extending product life and maintaining functional and aesthetic integrity

• Temperature resistance, offering improved performance for bio-derived polymers in high-heat and low-temperature applications

• Bio-derived, reducing the carbon footprint at the beginning of the product life cycle

Technology developed by Teknor

Apex Company has eliminated a property tradeoff that until now has limited use of polylactic acid (PLA) in injection molded semi-durable and durable applications requiring impact strength and heat stability, as well as in high-end disposable food service items such as cutlery, coffee lids, and containers for microwavable products.

Compounding innovations by Teknor Apex have overcome an inverse relationship between heat distortion temperature (HDT) and Izod impact strength in PLA, creating a new series of compounds, Terraloy™ BP-34001, that provide up to two times the HDT and up to six times

the impact strength of standard PLA resins. FDA-Compliant Terraloy™ BP-34001 substantially out-performs standard PLA and Yields 28-30% shorter molding cycles than previous ‘enhanced-performance’ PLA resins. They incorporate 10-30% more renewable resource-based content. In property tests, a typical grade in the new series, Terraloy BP-34001D, exhibits a heat distortion temperature of 112°C and Izod impact strength of 135 J/m. By comparison, approximate values for standard PLA are 65°C and 33 J/m. The new compound complies with FDA 21 CFR requirements and has a renewable content of 78%.

Despite problems SE Asia plastics sectors continues to grow

We have been discussing about the acute shortage of

the skilled / unskilled labour across the industry world over. However with the higher economic growth in China and India, Southeast Asia’s plastics industries, it seems to have emerged from recession and is moving towards a healthier curve.

Most of the manufacturers say they’ve emerged out and are in generally good shape, with solid growth. But there are major challenges looming, including infl ation, a slowing world economy and rapidly rising wages that threaten to price some of the former Asian tigers out of the ranks of low-wage countries.

According to a report from the

leading trade publication some plastics fi rms in Thailand are facing up to 45- 50 percent wage increases, both from government plans to boost minimum salaries and from market factors like rising incomes in rural areas. Addressing the media President of the Thai Plastics Industries Association, Krianglit Sukcharoensin said “ Not everyone will see wage spikes like that.

In Bangkok, where salaries are higher than elsewhere in the country, wage pressure is less but still present. Though executives say rising wages are accompanied by labor shortages many of the companies maintained that they were facing the crisis of the increase of labor rates. Needless to say the labour shortage has become the problem for most of the players in

the industry. One of the manufacturers said that his 600-employee company needs another 200 workers to meet demand for its toothbrushes and other household items, including from Japan, its major export market. “We have a very serious labor shortage,”

It is also lerant that many of the industry groups in Malaysia and Thailand, which has Southeast Asia’s largest plastics sector, are investing in education and upgrading efforts.While the government approved a fi ve-year, 720 million baht ($24 million) last year plan to create the Plastics Institute of Thailand, dedicated to workforce and industrial upgrading and technology development, the Malaysia Plastics Manufacturers Association received a 3 million ringgit ($1 million)

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Even with the shortage of labour and the problem of increased wages plastic manufacturers in Malaysia, Bangkok, Thailand are anticipating growth this quarter


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Propylene demand is expected to recover soon

Most propylene derivatives suffered a downturn as a

result of the global economic recession during 2008-2009. Asian markets recovered fi rst in 2009, followed by the rest of the world in 2010. All of the derivatives performed strongly in 2010, due to a variety of infl uences ranging from economic growth to changes in manufacturing trends and agricultural factors as per Nexant’s recently published report on ChemSystems. Demand growth in 2011 has benefi tted from the ongoing gradual economic recovery in Western economies, but has been undermined to some extent by fluctuating demand in Asia. Propylene availability has been squeezed from both sides. Rapid consumption growth has coincided with a signifi cant decrease in production capability in North America, resulting from the switch to lighter steam cracker feedstocks.

The resulting tightness in the propylene market has increased U.S.’s propylene values relative to ethylene, and relative to propylene prices in

other regions. High prices and physical shortages of propylene have limited the participation of U.S. producers in derivative exports markets, although exports have recovered signifi cantly since the downturn in 2008. High global operating rates and prices for most propylene derivatives allowed signifi cant inter-regional trade in 2010. The increase in U.S. propylene values will become increasingly important over the next business cycle when these export markets themselves become temporarily oversupplied as a result of the major capacity development now underway.

Polypropylene demand improved in 2009, led by a strong recovery in Asia while markets such as North America and Western Europe declined. The year 2010 was stronger globally however, as all regions increased, despite a slight slowdown in Asia. The global dynamics of the industry are in fl ux, with a major surge of new capacity in the Middle East now on-stream, but heavy capacity addition in Asia still underway. While producers in North

America traditionally had a competitive advantage conferred by their relatively low propylene price, this situation has now reversed. The acrylonitrile market grew strongly in 2010. Fibre demand was strong due to record cotton prices, and the robust carbon fi bre market resulting from growing usage in mass-produced applications.

Demand into HMDA/nylon also benefitted from the cotton effect. Demand for ABS generated very strong demand growth for acrylonitrile in this sector, mainly due to a strong recovery in the automotive and electrical/electronic markets. Other end applications such as polyacrylamide also continue to perform well.

Market growth is increasingly focussed in Asia while the western markets suffer from lower consumption growth and increasing propylene costs. Global capacity has been largely stable since 2004 as shutdowns in the United States have been offset by small additions in Asia. Propylene oxide faced a massive impact from the

government grant in January to set up its own training program.

Experts maintain that “In the past, Thailand could consider that we were a labor-intensive country, but not anymore,” Energy costs are also becoming more important, which prompted Krauss-Maffei to

show its AX series of all-electric presses at the show, Yodprechavigit said.Officials from Italian auxiliary equipment maker Moretto SpA said plastics processing executives visiting them were concerned about losing competitiveness from rising wages, and are talking technology upgrades.

“They are worried and they are going in the direction of automation,” said Jan Wauschkun, the Bangkok-based agent for Moretto and managing director of Terramar Engineering & Machinery (Thailand) Co. Ltd. “For us, it is only good.”

According to a report published by Nexant’s on ChemSystems the demand for propylene and its related compounds would increase once again or would recover so to say for various reasons.


economic crisis as due to its exposure to sectors such as consumer goods, construction and automotive uses. Propylene oxide was among the fi rst of the products to recover in 2009, and producers struggled to keep pace with growing demand in 2010, partly due to limited availability of propylene feedstock. Recent introduction of HPPO technology by BASF, Dow and Evonik Industries has prompted these producers to invest in the production of propylene oxide in emerging markets.

As we know like propylene oxide, the phenol market collapsed during 2008-2009, being heavily exposed to the construction, automotive and electronics industries in its principal derivatives. Demand for phenol rebounded again during the economic recovery in 2010. Cumene availability was extremely short, partly due to propylene shortages in the United States, and phenol production globally was restricted as a result. Several BPA

and polycarbonate developments in China and other developing markets in Asia have driven phenol demand growth, and accelerated development of phenol capacities in a number of countries. Most capacity development is concentrated in Asia Pacifi c, where both demand growth and feedstock availability are strongest. The cumene market usually behaves in tandem with phenol, as cumene production is almost entirely used for phenol production. Most new cumene/phenol production is integrated, and only one of the current slate of phenol projects globally is to be based on purchased cumene. T

There is a substantial merchant market for cumene in North America, Western Europe and East Asia that is mostly operated through long term supply agreements. Acrylic acid is one of the propylene derivatives that suffered least during the global economic slowdown as it has a diverse range of applications, which collectively

have comparatively little exposure to economic cycles. Acrylic demand into acrylate esters is the most volatile due to its exposure to the construction market while demand into SAP shows steady growth, supported by improvement in standard of living and increasing SAP usage in new applications.

Usage in the water treatment sector etc. does not tend to fl uctuate. The strong growth profi le for acrylic acid production has promoted a rapid development in both developed and developing markets. Capacity is also expected to develop in new markets such as Brazil and India.

Demand for isopropanol fell sharply during 2008-2009 with a small recovery in 2010. Its recovery was subdued by exposure to the construction industry which remains weak in Western markets, and the ongoing replacement of isopropanol and its derivatives with water-based systems which produce less VOC emissions.

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California Legislature fails to pass the bill banning EPS takeout containers

According to report the Senate Bill 568, which would have

gone into effect statewide Jan. 1, 2016, would have applied to PS cups, bowls, trays, containers and clamshells. It would have been the fi rst statewide ban on PS packaging in the U.S.The bill was placed in the inactive fi le Sept. 8, meaning it could surface again in

2012. It had passed the Senate in May. Bill’s sponsor, Sen. Alan Lowenthal, D-Long Beach said “I am disappointed we were not able to get SB 568 off the Assembly fl oor this year.The money and effort spent to kill this bill was too great to overcome. We simply ran out of time.”

Both Pact iv Corp. and Dart

Container Corp., which have PS plants in the state, had argued that the ban would have resulted in a loss of jobs in California. Likewise, the California Chamber of Commerce had placed the bill on its list of job-killing legislation.

“We’re very pleased that the Assembly realized that SB 568 was bad policy and that it wouldn’t have reduced

A measure that would have banned expanded polystyrene takeout packaging in California has been put on hold for lack of vote in the state Assembly.


litter and that it would hurt businesses and that it would jeopardize the good recycling strides we’ve made,” said Michael Westerfi eld, corporate director of recycling programs for Dart.

Dart, which is the largest global producer of PS foam cups in the U.S., does not make school food-service trays, but began recycling them two years at the urging of a distributor that sells PS lunch trays to roughly 80 percent of the schools in Southern California and collects them for recycling at a rate of roughly 1 million a month.

This past May, it opened a wash-and-dry line at its plant in Corona, California, to better recycle dirty PS at that site. The line has the capacity to clean slightly more than 3 million pounds of PS foam a year. Dart also has PS foam drop-off centers at all 13 of its plants in the U.S., and at its plant in Mexico City, and helped expand the number of California cities that recycle PS foam to 43.

Dart compacts the foam into 45-lound bricks and ships them to Timbron International Inc. in Stockton, Calif., to make interior moldings, and to Nepco Industrial Co. Ltd. to make high-end picture frames at its plant in Chino, Calif.

The American Chemistry Council also was involved in the debate.

“When legislators learned more about ... the bill’s impact on jobs and the state budget, support for the ban faded,” said Keith Christman, managing director of plastics markets for Washington–based ACC. “An economic analysis for similar legislation in 2009 [done by Keybridge LLC

for ACC and Pactiv] concluded that California would lose nearly $1.4 billion in output, $335 million in earnings and close to 8,000 jobs.

“And that doesn’t even include the impact on the Department of General Services budget, state enforcement costs and the untold millions of dollars it would have cost schools that use plastic foam lunch trays,” Christman added. “The state focus should be improving opportunities to recycle, not banning valuable products.”

“The battle over this bill is not done,” said Miriam Gordon, the San-Francisco-based California director of Clean Water Action. “It is poised to be heard on the Assembly fl oor next year.

“This is a match-up of David vs. Goliath,” she said. “Despite massive spending and efforts of well-funded chemical and plastic groups [and] despite the paltry budgets over organizations like mine, we moved this bill way further than any of the three previous polystyrene ban bills in the California Legislature.”

“With increases on the cost of oil driving up the price of polystyrene, and demand for sustainable food packaging increasing 17 percent each year already, companies like Dart and Pactiv are already responding by offering lines of sustainable food packaging,” Gordon said. “Are we going to let the manufacturing of the alternatives continue to move to China, or are we going to attract more manufacturers of alternatives to California by making this state the nexus of demand for sustainable packaging? It largely depends on the outcome of SB 568 [and that] won’t be

determined until the 2012 legislative year.”

Environmentalists also argue that a ban is needed because PS packaging is a major source of litter along coastlines, and in rivers and oceans.

“Our investigation of the debris fl owing from urban Los Angeles streets to the [Los Angeles and San Gabriel] rivers found that, in terms of the number of pieces of debris, 71 percent were foam,” research scientist Charles Moore said in a study released Aug. 31 by the Algalita Marine Research Foundation. Moore founded the Long Beach-based, nonprofi t foundation in 1994.

Forty-three cities and three counties in California have bans on PS takeout packaging. More than three-quarters of those communities are in the area between the Monterey Peninsula and San Francisco, and most of them are coastal communities.

The bans represent a combined area that accounts for less than 10 percent of the state’s population.

Further up the coast, there are bans in Seattle; Portland, Ore.; and Issaquah, Wash.

The proposed bill had included an exemption from the ban for communities that could demonstrate a 60 percent recycling rate for PS food containers.

In addition, school districts would have had an additional 18 months to comply, and also could have been exempt from the ban if they established a PS recycling program with a 60 percent recycling rate.

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Plastic three-wheelers taking shape in EuropeThree-wheelers are a popular

mode of transport in Asian countries like India, the Philippines and Thailand. Taking a cue from this low-cost form of transportation, Austrian motorcycle producer KTM, along with the Austrian Institute of Technology and industrial design fi rm Kiska, has introduced an all-electric three-wheeler. While the Asian three wheelers are mainly used as low-cost taxis, in Europe, their intention is very much different! Known as E3W, the two-seater comes with a 20 hp electric motor and draws power from a lithium-ion battery pack. Plastics have been used extensively in the body, allowing

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Hurricane Irene triggers flooding at New Jersey’s L-E-M Plastics

L- E - M , a f a b r i c a t o r a n d distributor of plastic products

in Wallington, N.J., was devastated by fl ooding caused by Hurricane Irene. Pietrowitz’s business was hit Aug. 28 with 4 feet of water during the storm, and was fl ooded again Aug. 30 when the Passaic River crested. She said the company had prepared for the storm by putting whatever they could atop tables and cabinets. “Everything that was not bolted down was fl ipped over. We had a very large compressor that was affi xed to a pallet and now it is on its side. The water was pretty ferocious,” she said.L-E-M staff began to clean up the plant Aug. 29, before water started to pour into the building. The fi rm is about 400 feet from the Passaic, but the river crest caused a backfl ow of the town sewer system.

She said cleanup is very expensive, and she doubts that L-E-M will able to use the 7,500-square-foot building again. For now, they are salvaging what they can, and Pietrowitz is optimistic about rebuilding her company, which her father started 37 years ago.Suppliers and even competitors have offered help, and “we plan on fulfi lling our responsibility to our employees and customers,” she said. L-E-M is still shipping products, but there’s a lot of work ahead, Pietrowitz added. The company telephone works, and she’s developing plans for the future of the nine-employee company.“We’ve been through this with Hurricane Floyd fi ve years ago, and the building has been hit by a fi re, but we went through it,

but this is the worst,” she said. Irene, a hurricane that became a tropical storm further north, caused havoc in the U.S. with wind and rain from North Carolina to Vermont. Lots of areas are still dealing with fl ooded rivers and broken roads or bridges.

Vermont molders Mack Molding Co, Inc. and GW Plastics Inc. showed their tenacity while weathering the wind and rain from the tropical storm. Mack’s main plants in Arlington are fine, according to communications director Julie Horst. The plants are in operation, but she noted that the fi rm’s Cavendish site did close for some cleanup due to fl ooding from the Black River.

GW’s facilities ran through most of the weekend of the storm, according to Larry Bell, its vice president of business development and marketing. He said in an email that “the GW Plastics Bethel and Royalton, Vt., plants were able to run through the weekend due to the tremendous dedication of our associates.”

The Bethel plant lost power Aug. 28 and Royalton elected to shut down to safeguard its employees, he said. When power was restored Aug. 29, the plants began startup procedures. Washed-out roads have hampered the ability of people to get to Bethel, he said.

for a lightweight body that means the E3W weighs just 500 kg, which allows for a range of 100 km on a full charge. It is also 230 kg lighter than Daimler’s Smart Fortwo city car.the three-wheeler is designed to be practical and to be able to tackle inter-city commute with minimum environmental impact. However, with its stylish exteriors and Lamborghini-inspired scissor doors, the E3W is seen as a rival to the Renault Twizy and a far cry from the three wheelers that exist in Asia! According to reports, KTM says it is looking at a production run from 2013 starting at around £4,500.


INTERNATIONAL NEWS

Sinopec, Fujian govt, Taiwan consortium to build petrochemical complex

Sinopec Group, the Fujian provincial government and

a Taiwan consortium have signed a framework agreement to build a US$4.5 bln petrochemical complex in Fujian, as per Reuters. The complex, to be located in Gulei of Zhangzhou city, has been initially designed to have crude refi ning capacity of 16 mln tps (320,000 bpd) and ethylene production capacity of 1.2 mln tpa. The project needs government approval. If approved, the

project would be the largest investment by Taiwan in the oil sector in mainland China. It would also be the third major refinery in Fujian province after a 240,000 bpd joint venture by Sinopec, Saudi Aramco and ExxonMobil and a 240,000 bpd refi nery planned by China’s Sinochem Corp. The Taiwan consortium comprises four companies -- China Petrochemical Development Corp , Ho Tung Chemical Corp , LCY Chemical Corp and USI Corp , who

would conduct feasibility studies on the Fujian project, but the investment requires government permission and approval from the companies’ board of directors. Taiwan currently bans petrochemical fi rms from setting up strategic facilities such as naphtha crackers and refi neries in political rival China, though downstream production such as for plastics is allowed.

Rotomolding giant Toter enters custom molding

Toter Inc., a major rotational molder of roll-out carts with

its headquarters plant in Statesville, N.C, is getting into the custom-molding business. Toter offi cials said in a release that the company will help design custom-molded parts and will make customs compounds. Toter President Jeff Gilliam said the company has formed Toter Custom Solutions in response to requests for custom work. Until now, Toter made only its own product lines. “We’ve seen demand in the past for it. We’ve just never contemplated custom until now,” he said. “We think it’ll be a good growth area for Toter.” Toter is tied with toymaker Step2 Co. LLC as the largest North American rotomolder. Both had 2010 sales of $145 million. Toter, is a division of Wastequip Inc., which makes large commercial waste containers and trash compactors. Toter

also runs two other plants, both in Acuña, Mexico. That large size gives Toter clout when buying polyethylene and other resins — cost savings it can pass on to custom-molded jobs as well. Gilliam said custom rotomolding will help Toter spread its business around. City governments are the main customers for the roll-out carts, and Toter offi cials tout the durability of the rotomolded products.“We think it’s a good opportunity just to diversify our revenue base,” Gilliam said. “Our intent is a long-term commitment to [custom molding].”Gilliam said Toter already has enough capacity with its 18 rotomolding machines to handle its own products and the custom work. The company could add more shifts as the custom business grows, he added.“Toter is the leader in rotational molding, which allows customers to leverage our considerable design

experience, purchasing power and production capacity,” he said.On the custom-compounding side, Toter offers both micropellets or powder. The company, which does its own pelletizing, also blends in recycled material from its own waste carts that are retired by governmental customers, and from stretch film, which Toter buys on the open market, Gilliam said. Toter uses micropellets to mold its trash carts. Gilliam said micropellets work well to make custom granite color blends. The company will run the custom-molding operations as a business unit distinct from its proprietary carts. “It has to be treated as a separate business,” Gilliam said. “There are characteristics of custom molding that are different from our core product.”


German district to use BASF’s rubbish bags A German district is set to use

rubbish bags made of BASF’s compostable plastic Ecovio FS after a successfully three month trial. Ecovio FS is made of bio-based Ecofl ex FS and PLA, obtained from corn starch In April, the district of Bad Dürkheim gave 65,000 households 10 bags made of the material. Consulting company IBK-Solutions then monitored then analysed the compost at an organic composting plant and surveyed the residents about their use of the bags. According to IBK-Solutions, the bags did not affect the quality of the compost (density, content of water and salt, pH value, nutrients and percentage

of organic matter) and the plastic degraded completely. In addition, almost 90% of the residents which took part in the trial said they were satisfi ed with the bags. “In the latest three-month project, we wanted to find out whether the residents are satisfi ed with the Ecovio bags,” Jens Hamprecht, responsible for global strategy and innovation management in BASF’s specialty plastics business unit, said in a statement. “It was also important for us to ensure that the very high quality of the compost in the Bad Dürkheim district is retained when the residents use the Ecovio bags.”

Asian plastics groups step up battle against ocean litter

According to the story published in a leading industry forum

Asia’s plastic industry groups say they want to step up involvement to combat ocean litter and marine debris from plastics, as part of a global effort by launched earlier this year by the industry in North America and Europe. While the Asian groups did not detail any specifi c new initiatives, industry officials at an annual gathering of business associations in Bangkok on August 30, said they would develop regional strategies and form an Asian cluster, with groups from India, Japan, Malaysia and possibly Australia taking the lead.

The Asian industry is under increasing pressure on litter, including bans on plastic bags like one enacted earlier this year in India, and its needs more information about what has worked elsewhere and could be adapted in Asia, said Callum Chen, secretary-general of the Asia Plastics Forum, which organized the Bangkok meeting.

“Governments and NGOs single out plastic as a punching bag,” Chen told the forum. “If we do not do something drastic and very quickly, it will lead on to other things. If I think plastic bags are not my problem, I am wrong. It will go up the value chain.”

The global effort launched in March with a declaration signed by 47 industry associations, including PlasticsEurope, the Canadian Plastics Industry Association and two chief groups in the United States, the American Chemistry Council and the

Society of the Plastics Industry Inc. Wilfried Haensel, executive director of Brussels-based PlasticsEurope, addressed the Asian groups in a private session August 29.

In an interview on the sidelines of the APF meeting Aug. 30, Haensel said it was too early to discuss specifi c plans in Asia but he said, as an example, that the Operation Clean Sweep program to control pellet litter and waste at factories in the United States could be brought to Asia. The Asian groups said they would work on the priorities identifi ed by the global effort, including:

• D e v e l o p i n g p u b l i c - p r i v a t e partnerships aimed at preventing marine debris,

• Work ing wi th the sc ient i f i c community to better understand the problem and possible solutions,

• Enforcing existing litter laws, and strengthening recycling and energy recovery programs.

Haensel said the plastics groups plans to meet next in mid-November in Dubai to discuss further steps. Chen, who also is CEO of Malaysian molder Lee Huat Plastics Industries Sdn. Bhd., said the declaration has been signed by industry groups in India, Japan, Malaysia and the Philippines, and he said Vietnam, Thailand and Indonesia are also likely to join.He said he hoped the remaining countries in the 12 member APF would participate

INTERNATIONAL NEWS


LG Group to produce plastics in Russia

LG Group, South Korean’s industrial conglomerate,

is considering producing plastics and petrochemical products in the Russian city of Dzerzhinsk, the country’s centre of petrochemical production. The new plant may focus on manufacturing products from LG Chem, a petrochemical unit of LG Group. These include products made of ethylene, propylene, ABS plastics and PVC. The products will be marketed and distributed in Russia by Tosol-Sintez, one of Russia’s largest producers of high-quality automobile chemical products, based in Dzerzhinsk. The Russian branch of LG Chem was established in 2004.

Japan’s rising automobile production to result in rubber, polypropylene shortage

Rising automobile production in Japan is likely to lead to

material shortages according to some experts. Concerns over shortage of synthetic rubber and polypropylene are growing as major Japanese automakers plan to increase production from October 2011 to March 2012. While Toyota Motor and seven other major manufacturers of passenger cars project a 2% y-o-y increase

in global output in the six months, with major hikes planned in Japan. Bridgestone ,Japan’s tire maker, has notified automakers that orders for passenger car tires seems likely to exceed the company’s domestic output capacity-leading to a shortage of an estimated 500,000 tires (about 5% of orders received this year). An increase in run rates is unlikely as Bridgestone is already operating it’s seven domestic

plants making passenger car tires 24*7. PP, used a key feedstock to produce autoparts and bumpers, is also facing supply dearth, as major producers struggle to keep up pace with demand. Inventories are running low at Japan Polypropylene’s 640,000 tpa PP plant in Kashima, scheduled for regular maintenance from the end of this month through mid-October.

Recycling shows signs of being streets aheadStreet signage across the UK

could be set for a new lease of life thanks to Leeds plastics recycling specialist, Sustainable Options, a division of Barkston Plastics. The company, which is based in Riverside Place, claims to have identified a gap in the market for heavy-duty plastic signage. Speaking to one of the industry publications the fi rm said there has been “massive interest” from a number of local authorities and talks are now in progress with potential customers. Marketing manager at Sustainable Options, Jo Dell, said: “The recycled plastic signs we have developed are perfect for use with Britain’s inclement weather, and the rigours of modern society, because they are rot proof, rust proof, chemical proof and vandal proof, graffi ti just wipes off them.

“If you look around, thousands of

signs across the country are either rusting, bent, or just rotting. We realised there was a huge opportunity and got our research and development department to produce a range of pilot products.

“Interest at the various trade exhibitions we attended, was massive, part icular ly f rom publ ic sector authorities, so we have now moved to full scale production and have great hopes for this product range.” The news signs are predicted to last fi ve times longer than wood and are more durable than metal, according to the company.

“They are also attracting interest from the private sector,” added Dell. “A company which rents out cottages by the sea has bought a range of signs because they withstand the rigours of salty water brilliantly.”

INTERNATIONAL NEWS


Consumer Goods Forum publishes sustainable packaging guidelines

The Consumer Goods Forum, a global trade organization that

includes both brands and retailers, has unveiled its Global Protocol on Packaging Sustainability. The aim of the protocol, formulated with support from the packaging industry, is to help companies reduce the environmental impact of their packaging by providing a common language to address a range of business questions about pack design and usage. The 74-page protocol was formulated by a diverse group of retailers and manufacturers, aided by packaging material suppliers and packaging manufacturers and led by a steering team that included representatives from Walmart, Target,

Tesco, Kraft Foods, Procter & Gamble, Nestlé and Unilever. It is based on earl ier packaging sustainabil i ty guidelines developed by the European Organisation for Packaging and the Environment (Europen). Philip Clarke, CEO of retailer Tesco plc, said: “We’re working hard with our suppliers to minimize the impact of our packaging on the environment. Having a common language will allow us to have the right conversations with our diverse supply chain.“We can then work with suppliers to reduce the environmental impact of packaging whilst making sure it still does the essential job it needs to do to protect the products we sell.”

Recycling plant at Akron to convert plastic to oilGreenstar Recycling plans

to construct a single-stream recycling processing facil i ty in Akron, which the company said will serve as a hub for recycling and recovery activities in the area. According to the released the recycling facility, expected to be operational in eight to 10 months, will cost up to $8 million and will convert an empty 195,000-square-foot hangar at Akron Fulton International Airport into a facility to process recyclables. The release further added that “This facility will allow Akron to continue to offer its businesses and residents the convenience of single stream recycling – eliminating the need to pre-sort recyclables – while growing its local economy with new investment and a minimum of 45 new green jobs. The facility also will convert mixed plastics into synthetic crude oil, which will be handled by Cleveland-based Vadxx Energy LLC through a joint venture with Houston-based Greenstar. Vadxx intends to turn 12,000 tons of plastic into 80,000 barrels of oil annually.

Plastics firms named Indiana Companies to Watch

Three plastics fi rms -- DeKalb M o l d e d P l a s t i c s , I n d y

Composite Works Inc. and Scorpion Protective Coatings Inc. -- were recently honored with Indiana Companies to Watch awards.The awards, presented by the Indiana Economic Development Corp., its Small Business Development Center network, Purdue University and the Edward Lowe Foundation, recognize the state’s privately held businesses that employ six to 150 full-time employees and have between $750,000 to $100 million in annual

sales or capital.

Companies are judged based on growth, job creation and innovation. A total of 43 companies were honored this year.DeKalb is a Butler, Ind.-based structural foam molder. Indy Composites is an Indianapolis-based manufacturer of carbon fiber and fiberglass composites. Scorpion Protective Coatings is a Cloverdale, Ind., based manufacturer of polyurethane coatings and spray systems

INTERNATIONAL NEWS


Chinese car market to consume more plastics

The year 2009 was a watershed one for the Chinese car industry

when it became the largest in the world says new report titled “China Automotive Plastic Parts Industry Report, 2011-2015,” Ireland-based by Research and Markets. The report also says that last year, Chinese passenger car components market reached a value of RMB58.2 billion ($9.09 billion) and is expected to increase to RMB85.12 billion in 2015. An increasing amount of plastics is also being used in car manufacture,

Mikron and Profine to share window extrusion technology in US , Europe

Mikron Industries Inc. and Profine International Profile

Group GmbH will share technologies, in a partnership between vinyl window extruders in the United States and Europe. The cooperation agreement covers technology only and does not include the companies selling each other’s window profi les According to the release, the partnership “provides a framework to share technologies aimed at driving revenues in global markets, enhancing product offerings and sharing best practices, which can improve processes, productivity and costs.

with the average use of plastics in mid-grade sedans now around 130 kg/unit. In Europe and the US the use of plastics is higher at an average of more than 150 kg per car, compared to ten years ago when the average use of plastics per car was only about 60 kg.

M e a n w h i l e , C h i n a - b a s e d manufacturers of automotive plastics parts like NBHX, JNMPT, Shuanglin and Shunrong are increasing their market share and their use of advanced technology.

INTERNATIONAL NEWS


Lanxess invests in glass fiber

Specialty chemicals company Lanxess AG is investing

15 million euros to expand glass fi ber capacity at its plant in Antwerp. According to the release the project is the latest in a series of investments -- some previously announced this year -- that total 90 million euros. The projects new polyamide compounding facilities in the United States and India, as well as the expansion of upstream production facilities for caprolactam (35 million euros) and glass fi ber, both used in its semi-crystalline products (SCP) business unit, in Antwerp. The company is considering investing in a compounding site in an unspecifi ed South American country but is yet to make a fi nal decision.In terms of existing plants, Lanxess is investing 10 million euros each in plants in

Hamm-Uentrop, Germany, and Wuxi, China, to increase capacity. In Wuxi, Lanxess has added a third line to increase compounding capacity to 60,000 metric tons per year, up from 20,000 metric tons per year in 2005. Automotive applications is an important market area for Lanxess, accounting for around 50 percent of sales of semi-crystalline product compounds (20 percent go to electrical and electronics applications).One recent automotive innovation was frontends, made from a glass fi ber-reinforced PA6 and metal hybrid, which are 40 percent lighter than conventional all-steel front ends. Hartwig Meier, head of semi-crystalline products and application development, said there are now 60 million hybrid front ends on more than 70 car models, including the new 2011 Mercedes Benz

A- and B-Class cars. The company has also developed an all-plastic front end for the new Audi A8 car, comprising formed polyamide composite inserts made from continuous fi ber reinforced “organic sheet.” Lanxess overall sales had increased by 40.8 percent to 7.1 billion euros in 2010 and by 23 percent in the second quarter of 2011, thanks to both “strong” pricing and volume growth.

BUSINESS NEWS

Demand growing for plastic labelsPaper wil l remain the

leading stock for the label industry, but it will continue to lose market share to plastics for according to a new report from Freedonia Group Inc. Plastic will account for more than one-quarter of U.S. label shipments in 2015. The report says Plastic will gain popularity due to its aesthetic and performance advantages over paper, as well as a broad shift in favor of plastic packaging. Plastic labels are used in pressure sensitive, heat-shrink, stretch sleeve, in-mold and thermal transfer labels, each of which Freedonia expects to grow “at a healthy rate. Total U.S. label shipments are forecast to rise 4.8 percent annually to $20 billion in 2015.

Chatterjee asked to submit detailed project report on proposed polymer park in Bengal

Industries minister of the state of Bengal has asked Purnendu

Chatterjee to submit a detailed project report on proposed polymer parks which would require 300 acres. It was in the end of May that Haldia Petrochemicals Ltd (HPL) proposed three polymer parks in Haldia, Panagarh and Kharagpur in Bengal and devised a marketing strategy to overcome the volatility of commodity petrochemical cycle. Each polymer park is to be spread across 100 acres,

and will comprise units making plastic products. With this, Haldia is expected to be in a position to raise sales in East India to levels upto 50% of its output from the current 20%. The WBIDC and the Haldia Development Authority possess the land for the parks. The company had identifi ed eight projects and has already started work on two. The company has enough land within the existing HPL complex to take up the projects.


BUSINESS NEWS

Sonoco Plastics to Develop New Rigid Plastic Container Plant in Ohio One of the largest diversifi ed

global packaging companies, will be developing a new rigid plastic container operation in the new Beauty and Home Care campus in New Albany, Ohio. The new plant is expected to be operational by the end of the second quarter of 2012. According to Rodger Fuller, vice president of Rigid Paper and Plastics, Sonoco will build a 120,000-plus square-foot plant and install several PET injection stretch blow-molding and injection molding lines to produce packaging and components for personal care products. Total cost of the plant building and equipment is projected to be approximately $15 million and the operation will employ approximately 60 new workers. Sonoco Plastics also operates a food-grade, blow-molding and injection molding

plant in Columbus, Ohio, which was expanded in 2011.

Steve Gendreau, Sonoco Plastic’s division vice president and general manager, blowmolding, said the new plant is being developed to produce containers and components for personal care products for Mast Global, the sourcing and logistics division of Limited Brands. Limited Brands represents some of the Beauty and Home Care industries most recognizable premium brands with Victoria’s Secret, Bath and Body Works, Pink, LaSenza, and Henri Bendel. Initially, Sonoco’s new plant will produce products for Limited Brands’ Bath and Body Works stores. “Sonoco Plastics is a leader in designing and producing innovative, customized rigid plastic packaging for some of

the largest personal care brands in North America. We look forward to expanding our offering through this new state-of-the-art facility and hope to further grow this operation in the future.”he said. Sonoco Plastics is a leading manufacturer of monolayer and multilayer blow-molded bottles and jars, thermoformed cups and trays and engineered molded and extruded containers, spools and trays. The Company has 28 plastics operations in the United States, Canada, Mexico, Ireland, Netherlands and Germany.

Haldia Petrochemicals in talks with Reliance to mull market segregation

Haldia Petrochemicals Ltd (HPL) is in talks with

Reliance Industries Ltd for market segregation, and is also trying to enhance its focus on markets in East India by widening its product range with the inclusion of low-density polyethylene (LDPE).

“Fundamentally we are trying to move the market to the east and try selling less in the west. By selling in the west we lose US$60/ton because of freight charges. We are the market leader in the east with 50% market share. Why not increase it to 80%?” HPL managing director P.S. Bhattacharyya is reported to have said.

Limited LLDPE demand from saturated and matured markets of North America The matured markets of North

America and Europe have experienced saturation levels of polyethylene l inear low density (LLDPE) and the demand from these regions has been quite limited in the recent years.

As per a report by Merchant Research & Consulting Ltd., capacity additions are restricted on these markets, some of the producers even had to limit activities and run closures at a number of facilities. The demand however was not left behind

altogether driven by the emerging markets of Asia-Pacifi c and Eastern Europe. Before the crisis period of 2008-2009 the global demand growth rate stood at 6-7% pa. Accounting for approximately 42% of the world LLDPE demand, Asia-Pacifi c will lead the consumption and the demand is projected to increase globally by annual 4-4.5% in the coming five years. Furthermore packaging and construction industries are forecast to be most lucrative in terms of demand for LLDPE.


India puts duty on some PVC films from China

India’s Finance Ministry has placed a defi nitive anti-dumping

duty on certain PVC fi lms imported from China. The revenue department placed a duty of $ 0.034 per kilogram on PVC flex fi lm produced and exported by Heytex Technical Textiles (Zhangjiagang Co. Ltd.), China. It also placed a duty of $0.441 per kg. on fi lm from Zhejiang Yuli Plastic Co. Ltd. The levy, which took effect July 30, will be valid for fi ve years. Directorate General

of Anti-Dumping Duties, a Commerce Ministry agency, concluded that Indian manufacturers had suffered a material injury on account of dumping of the product by Chinese suppliers. PVC fi lm sheet impacted by the duties are used in advertising signage, billboards, tarpaulins and other applications. Some products including PVC rigid film, cotton/canvas tarpaulins, self-adhesive vinyl, one way vision fi lm, and mesh banner/fabric are not covered.

BUSINESS NEWS

No PCPIR in West Bengal The new state government

in West Bengal has decided to scrap the proposed petro leum, chemicals and petrochemicals investment region (PCPIR) on Nayachar island in Bengal’s East Midnapore district on environmental grounds. The government has decided not to allow a chemical hub in the state because of threat of air and land pollution and a threat to livelihood of fi shermen. The government will take a call on the proposed ecotourism project, power plant and Polypark at Nayachar, to replace the ecotourism project.

China’s polymer imports rise in JulyAccording to data from Chinese

customs, China’s polymer imports rose 15.8% month over month in July, as per ChemOrbis, and 0.9% year on year (yoy). Homo-PP, PP copolymer and LDPE posted strong year over year gains, while imports of PVC and PS were down (yoy). Homo-PP imports jumped 24% month over month in July to reach 331,000 tons. When compared with July 2010, homo-PP imports increased 11.5%. South Korea (81,539 tons), India (49,690 tons), Saudi Arabia (44,728 tons), Taiwan (40,966 tons) and the United Arab Emirates (20,423 tons) were the largest homo-PP exporters to China in July. Imports of Indian homo-PP shot up 84.8% from June, pushing India from the fourth largest homo-PP exporter to China in June to the second largest exporter in July. Imports of PP copolymer also posted strong yoy gains, rising 20%

month over month and 27.7% when compared with July 2010 to reach 60,000 tons. China’s largest sources of imported PP copolymer in July were South Korea (20,810 tons), Singapore (14,367 tons), Saudi Arabia (5,066 tons), Taiwan (5,008 tons) and Thailand (4,419 tons). LDPE imports rose 22.7% month over month in July to reach 119,000 tons. The July import fi gure was also 38.4% higher when compared with the import fi gures from July 2010. LLDPE imports gained 17% from June and 4.9% from July 2010 to reach 172,000 tons while HDPE imports gained 7.3% from June but fell 3.5% from July 2010 to reach 251,000 tons. South Korea was the largest HDPE exporter to China in July with 49,731 tons while Saudi Arabia led all LLDPE exporters to China with 38,650 tons. Iran was the largest LDPE exporter to China in July with exports of 25,108 tons. PVC imports to China

were fl at from June at 60,000 tons in July. China’s July PVC imports were down 36.2% when compared with July 2010 and marked the lowest PVC import fi gure for July reported in the past ten years. Taiwan (18,221 tons), the United States (16,377 tons) and Japan (15,956 tons) combined to account for nearly 85% of all PVC imported to China in July. China imported 81,000 tons of PS in July, an increase of 11% from June but a drop of 10% when compared with July 2010. The largest PS exporters to China in July were Taiwan (25,660 tons), South Korea (17,827 tons) and Hong Kong (16,068 tons), with these three countries combining to account for nearly 75% of all PS imports to China.


NIPC inks US$400 mln contract for construction of ethylene pipeline

Na t i o n a l I r a n i a n Petrochemical Company

has inked a US$400 mln contract for the construction of the Central Ethylene Pipeline with the Islamic Revolutionary Guards for Construction, KCH. Khatamolanbia Construction Headquarter will realize the project with Chinese fi nancing in EPCF mode within 30 months, Fars news agency reported. The pipeline will transport 1.3 mln CM of ethane and 1.04 mln tpa of ethylene from Parsian Refi nery to 5 petrochemical complexes for processing.

S Korea-Kazakhstan signs agreement on power plant, petrochemical complex

South Korea and Kazakhstan has agreed on two US$4 bln

projects for constructing a thermal power plant and a petrochemical complex in the Central Asian nation. The thermal power plant is expected to generate about 7% of Kazakhstan’s electricity needs.

A meeting between the two heads of states fructifi ed into signing of an agreement which confirmed South Korea’s 70% stake in a US$4 bln project to build a coal-fi red power plant in Balkhash. Korea Electric Power Corp (KEPCO) and Samsung C&T currently hold a 35% stake each in

the project to build a 1,320-megawatt plant.

In addition, LG Chem, South Korea’s largest chemical company, signed a deal worth US$4 bln with Kazakhstan Petrochemical Industries (KPI) to develop a large petrochemical complex in Atyrau with capacity to produce 840,000 tpa of ethylene and 800,000 tpa polyethylene. Export-Import Bank of Korea signed an agreement with Kazakhstan Petrochemical Industries, LG Chem Ltd. and Korea Trade Insurance Corp. to help fi nance the project.

Sonoco-Alcore invests in European Mills Sonoco-Alcore S. a. r. l., a wholly

owned subsidiary of Sonoco , one of the largest diversifi ed global packaging companies, is making multi-million dollar investments in three of its European uncoated recycled paperboard (URB) mills to improve their energy efficiency, product range and environmental performance. The projects will be completed during scheduled downtime in August and September 2011. According to Adam Wood, division vice president and general manager of Sonoco-Alcore, “These investments are part of a continuing program to improve the product quality and cost

competitiveness of our European mills, which are the largest producers of coreboard in Europe. Our commitment to sustainabi l i ty and customer satisfaction are at the forefront of our thinking during our capital planning process.” “Our Cirie (TO), Italy, mill will benefi t from a new DCS, a new energy-from-biogas system, and CHP upgrades and we are improving our effl uent treatment system,” said Dino Kiriakopoulos, director of Sonoco-Alcore’s European Operations. “Our investment in Cirie continues our 2010 capital investment efforts, which are focused on lowering energy costs and continuing to be good stewards of the

environment.” Kiriakopoulos said that Sonoco-Alcore also will be making additional investments at its Kilkis, Greece, and Nordhorn, Germany, mills this summer. “At Kilkis, we will be installing a new high-efficiency boiler, heat recovery system and drive upgrades that will signifi cantly lower energy costs and provide some capacity expansion. At Nordhorn, we are upgrading our refi ning and press sections to further reduce the steam and electricity consumption for each tonne of the high quality specialty board produced there.”

BUSINESS NEWS


Eastman acquires plasticizer maker Scandiflex to expand in Latin America Eastman Chemical Company

have announced acquisition of Scandifl ex do Brasil S.A. Indústrias Químicas , a manufac tu re r o f plasticizers located in Mauá, São Paulo, Brazil. The acquired Scandifl ex plasticizer business and manufacturing capabilities are now part of Eastman’s P e r f o r m a n c e C h e m i c a l s a n d Intermediates (PCI) segment. Terms of the transaction were not disclosed. With 2010 sales revenue of US$54 mln, Scandiflex’s manufacturing capabilities and customer relationships in Brazil will enable Eastman to accelerate growth of its PCI segment’s non-phthalate plasticizer business in the Latin America region. In addition to regional diversification of both

sales and manufacturing, Scandifl ex also brings several complimentary non-phthalate products to Eastman’s broad portfolio of plasticizer products. “This acquisition is an important next step in our global growth strategy and positions us to grow as demand increases in Latin America for non-phthalate plasticizer products,” said Ron Lindsay, executive vice president, performance chemicals and intermediates and fi bers. “I am confident that Scandiflex’s strong customerconnect and reputation as a reliable supplier in the Latin America market will provide us additional opportunities for future growth in this fast expanding region.”

Fire at a PetroChina subsidiary Dalian Petrochemical

A fire broke out at a major petrochemical refi nery in the

northeastern Chinese city of Dalian. This is the second fi re in two months at PetroChina subsidiary Dalian Petrochemical. The fi re is reported to have occurred in a diesel tank containing 800 tons of fuel. The blaze was caused by an explosion in a pipeline linking two fuel tanks. TAs per another report, the fi re was triggered by leak in a distillation device at the Dalian Petrochemical Company. No one died or was injured in the accident, which the company said had not caused pollution to the sea or the air.

Dalian was the site of China’s biggest known oil spill, when a pipeline explosion put at least 1,500 tons (461,790 gallons) of oil into the sea in July 2010.

Sigma Plastics buys another blown film line

N.J.-based Sigma Plastics Group has purchased its

fourth Varex high-output blown film line from Windmoeller & Hoelscher Corp. for its FlexSol Corp. packaging subsidiary headquartered in Pompano Beach, Fla. According to the release, the 87-inch-wide, fi ve-layer line will be installed FlexSol’s Nashville, Tenn., plant and is intended to make coextruded film for food packaging.

BUSINESS NEWS

Novatec ‘s MVP and UVP series for high-vacuum polymer conveying application Baltimore-based Novatec Inc.

has introduced MVP and UVP series of vacuum pumps for high-vacuum polymer conveying applications. The company said that these pumps generate higher-vacuum levels at a modest price premium compared with traditional positive-displacement pumps. High-vacuum technology is an alternative to increasing line size, which reduces pressure drop and increases energy

use.MVP and UPV convey more material over longer distances -- up to 1,000 feet or more –- compared with conventional pumps, with the same size of line. They are designed to eliminate plugged conveying lines, starved machines and insufficient throughput capacity. Spiral-flow pump technology substant ial ly minimizes sound emission vs. positive displacement pumps, so there is no need for noise-reduction blankets.


NEW PRODUCTS

Eco-friendly soy based diapers and other absorbent cost competitive productA chemistry to make diapers

and other absorbent products f r iendl ier to the envi ronment-with the aim of making them cost competitive, has been developed by scientists at Battelle. The next step is to commercialize this new, green innovation- an idea that uses soybean meal to replace a third of the petroleum products currently found in such items. Soybeans are about 20% oil, 70% soybean meal and 8% hulls. Soybean meal is mainly used for animal feed and is the part Battelle scientists use to convert to the SAP. Diapers and other materials that absorb liquids are effective because of hydrogels,

which are known to scientists as super absorbent polymers (SAPs)-petroleum-based acrylic acid materials that can absorb hundreds of times their weights in liquid. The idea is to use soy meal to replace 33% of the acrylic acid-based SAPs, keeping the same absorption rate-200 to 300 times its own weight-and, perhaps most importantly, maintaining a comparable price point. “We believe that everyone wants to be environmentally friendly, but they want products that perform exactly the same as their oil-based counterparts without costing more,” said Marty Toomajian, President of Battelle’s Energy, Environment and

Material Sciences Global Business. “That is what we are trying to do with this new innovation. The aim is to replace a portion of the petroleum-based product with a sustainable one and work to make it cost effective.” The market for SAPs today is about 1.6 million tpa, with personal care items making up the vast majority-diapers account for 83% of that market. Even a modest penetration of the market could mean a large replacement of oil-based products with a renewable, sustainable replacement, reducing the need for dependence on foreign oil while helping American farmers.

Conair cascade mixing technology blender Conair Group said cascade

mixing technology used in its TrueWeight continuous blender provides a homogenous blend even when additives must be dosed in very small quantities, such as extrusion applications that need a highly accurate blend of ingredients that can be dissimilar. The new blenders can be confi gured to handle up to six different components in throughput ranges up to 3,000 pounds an hour.

Ingredient hoppers and dispensing augers can be sized to deliver any amount up to the maximum, or just a quarter of a pound. Metering accuracy is within half a percent of the set point, depending on the material, Conair said. “What makes this gravimetric continuous blender different from

batch blenders is that all ingredients are dispensed simultaneously at the desired rate,” said Alan Landers, product manager. “Different materials fl ow together out of the blender and into the extruder or a holding bin.”

Batch blenders dispense ingredients one at a time into a mixing chamber, where they are combined by mechanical agitation. But the cascade method of mixing is better for materials with different particle sizes and bulk densities, according to Conair, based in Cranberry Township, Pa., near Pittsburgh.

Two standard confi gurations are available: a stand-mounted unit that dispenses blender material into a holding bin, or a machine-mounted version.

NBE ‘s automated pallet operations

Holland based National Bulk Equipment Inc. is

offering a complete bulk-bag fi lling system that allows a single operator to process up to 20 bags weighing 4,500-pound each -- or 90,000 pounds of dry bulk material per hour The NBE equipment includes automated pallet introduction and metering of mater ia l , precis ion bag weighing, and automated fi lled-bag accumulation conveyors. A single menu-driven control screen, designed and built by NBE, centralizes system wide operations.


BSG’ s new software for twin-screw film extrudersGe r m a n a u t o m a t i o n

supplier Bruckmann Steuerungstechnik GmbH has developed an additional software module for direct extrusion lines. The company said the software is designed for twin-screw co-extrusion lines used for film extrusion. That equipment usually uses conveyors and feeders in combination with two extruders. A double screen changer/melt pump assembly is installed downstream of the extruders, and both lines converge at a fl at die. BSG’s software controls the complete extrusion line from one operator control panel, maintaining a consistent material throughput at the die, even during screen changing. The software has been already installed on a PET thermoforming line in Turkey.

Japan’s first packaging film using biomass polyethylene Japan’s f irst f i lm for use in

packaging materials that uses biomass polyethylene (PE) has been developed by Toppan Printing Co., Ltd. Full-scale sales will be launched from August 2011. The new product is a fi lm that partially uses a raw material derived from sugarcane and has a biomass ratio of up to 40% (ratio by weight). While using a raw material derived from plants, the fi lm retains the same

performance as existing fi lms in terms of properties such as shock resistance and ease of tearing. This product is being used for standing refi ll pouches for items such as hair care products.

This product achieves a reduction in the use of conventional feedstock by replacing oil-based linear low-density polyethylene (LLDPE) with a fi lm that partially uses LLDPE derived from sugarcane.

NEW PRODUCTS

Viva in-mold labeling processTopline Products Co. Inc., a

Wayne, N.J.-based packaging maker, has teamed with tube injection molder Viva Healthcare to market tubes with in-mold labeling, targeting the personal-care and cosmetics markets. Viva created the process which, according to Topline, combines

decorating and molding of PP tubes, embedding photograph-quality artwork in eye-catching graphics that cover the entire surface of the tube, even the crimp area. “The gravure-printed labels can be combined with EVOH or an aluminum foil barrier to offer great shelf impact and excellent

Nuplex acquires Acquos’s Masterbatch business Nuplex Industries has entered

into an agreement to acquire Acquos’ Masterbatch business, one of Australia’s leading providers of concentrated pigments and additives (known as ‘masterbatch’) to the plastics industry. The transaction is subject to ACCC approval. If approved, Nuplex expects the transaction to make a positive contribution to its 2012 financial year, earnings per share. Nuplex will make a further

announcement once the ACCC has made its decision. Emery Severin, CEO of Nuplex said “Culamix, our own colour and additive masterbatch business, has built its reputation based on fl exible and responsive customer service. Acquos’s Masterbatch business has an extensive technical portfolio and global best-practice processes, which if acquired would complement our existing operations in this market.

product-protection properties, all at a very competitive cost,” said Topline President Charles Chang. By the end of this year, Viva Healthcare will have equipped a dozen injection presses with IML in its factories in China and Canada. Each plant can produce 3.6 million tubes per month.


TECHNOLOGY

University Professor suggests arsenic removal by flaked PET bottlesA simple and inexpensive method

to extract deadly arsenic from drinking water using plastic bottles could dramatically improve health in underdeveloped nations, reports a research team at Monmouth University (MU), West Long Branch, New Jersey, USA.

With almost 100 million people in developing countries exposed to dangerously high levels of arsenic, and unable to afford complex purifi cation technology, MU’s Professor Tsanangurayi Tongesayi has described arsenic removal by fl aked PET bottles coated with cysteine, an amino acid found in dietary supplements and foods.

The work was reported at the 242nd National Meeting & Exposition of the American Chemical Society, a major scientifi c meeting with 7,500 technical papers, held on 1 September.

Tongesayi commented: “Dealing with arsenic contamination of drinking water in the developing world requires simple technology based on locally available materials. “Our process uses fl akes from plastic beverage bottles. When the fl akes are coated with cysteine and stirred into arsenic-contaminated water, they work like a magnet – the cysteine binds up the arsenic. Remove the plastic and you have drinkable water.” He described laboratory tests of the purifi cation method on water containing 20 parts per billion (ppb) of arsenic, twice the safe concentration set by the US Environmental Protection Agency for drinking water. The water was rendered drinkable, with 0.2 ppb or less arsenic – more than meeting the federal standard.

The method is straightforward enough for people without technical skills to use, said Tongesayi. It can

use discarded plastic bottles available locally, and applying the cysteine is simple. Tongesayi is seeking funding or a commercial partner for development and commercialisation. He reported that the technology also has the potential for removing other potentially toxic heavy metals from drinking water.

Odourless, tasteless, and colorless, arsenic may enter drinking water supplies from natural deposits in soil and rock, or from agricultural and industrial sources. Symptoms of arsenic poisoning include thickening and discolouration of the skin; stomach pain, nausea, vomiting, and diarrhea; vision loss; and numbness in hands and feet. Arsenic has also been linked to cancers of the bladder, lungs, skin, kidney, nasal passages, liver, and prostate.

Dow’s ‘PASCAL’ Technology for higher energy efficiency Do w P o l y u r e t h a n e s , i n

cooperation with Cannon SpA, will offi cially launch PASCAL™ Technology. PASCAL™, a new po lyure thane foam insu la t ion technology that improves energy effi ciency of refrigerators and freezers by up to 10%, was fi rst featured in household refrigerators and freezers by Haier and is now commercially available to appliance manufacturers. Combining a proprietary polyurethane foam specifi cally formulated for this

application, PASCAL™ Technology doubles the effi ciency of insulation while continuing to provide thermal conductivity and adhesion—qualities that distinguish polyurethane from alternative types of insulat ion. PASCAL™ is just one of the innovative solutions spurred by Dow’s commitment to addressing the world’s most critical challenges, including the need to conserve energy. The technology incorporates vacuum equipment from Cannon SpA, during the insulation

process to bypass the deficiencies of standard insulation. The vacuum, paired with a hydrocarbon blowing agent, allows PASCAL polyurethane foam to fit into the small spaces traditional insulation might miss, especially in modern designs, and also mold to the contours of the appliance, reducing the amount of energy lost during consumer use. The resulting system can also decrease the insulation reactivity time from a standard of about fi ve to three minutes.


Eco-friendly polymer-based ‘nano intumescent’, to be utilised as flame retardants New flame retardant coating

developed with water-based ingredients is much less toxic to humans than the so-called ‘halogenated’ or ‘brominated’ flame retardants used in the past, and they are more environmentally friendly. It has great potential for use as fl ame retardants on clothing and other materials in order to avoid some of the disadvantages of existing products. Flame retardants are used on cotton, the most popular fabric in the world, because it can catch fi re easily and burns rapidly with a hot fl ame. Flame retardants make it more diffi cult for fabrics to ignite, make them burn slower and make fabrics self-extinguish when the fl ame is removed. That margin of safety is especially important for clothing fires, which can cause severe and disfi guring injuries. Flame retardants allow time to remove the clothing or put out the fl ames. People are concerned about the potential toxicity of fl ame

retardants that are currently used on a variety of products. The research team from Texas A&M University, turned to a technology termed “intumescence,”- long used to fi reproof exposed interior steel beams in buildings. At the fi rst lick of a fl ame, intumescent coating swells up and expands like beer foam, forming tiny bubbles in a protective barrier that insulates and shields the material below. This work is the fi rst demonstration of a polymer-based ‘nano intumescent’. The material is “nano,” or ultra-small, built up from layers of alternating positively and negatively charged polymers so thin that almost 50,000 would fi t across the width of a human hair. Because these layers are so thin, the polymer liquid seeps deep into cotton fabric and onto each individual cotton fi ber. Existing fl ame retardants, in contrast, simply settle on fiber bundles like armor and slow the spread of fl ames, but the fabric still burns and turns

black. When the new nano coating is exposed to a fl ame, it expands slightly and stops the fi re from igniting and burning the fabric — which remains white, except for the small area where the cotton directly touches the fl ame. The new fl ame retardant addresses public concerns about the potential toxicity of fl ame retardants now used on a variety of products, especially children’s pajamas and the foam inside children’s car seats and toys, and pointed out that the water-based polymers used in the nanocoating are much less toxic to humans than other flame retardants used today. The nano coating is deposited in alternate layers of positively and negatively charged polymers; swapping one of those polymers out for a different one in the recipe could offer similar anti-fl ammable protection while making the fabric softer.

Teijin launches radiation-fluorescent plastic

Teijin Chemicals Ltd. will begin supplying a low-cost radiation-

fluorescent plastic by the end of September. Scintirex, developed with Kyoto University Nuclear Reactor Research Institute and the National Institute of Radiological Sciences in Japan, is designed to be used as a scintillator, the core material used in radiation detectors and some

medical equipment. Tokyo-based Teijin Chemicals says Scintirex will help to reduce the total cost of radiation detectors by slashing the production cost of scintillators to one-tenth or less of current levels.The material is also superior to conventional scintillators in terms of luminescence, refractive index and density, and because it is a polyester resin, offers easier

moldability, according to the company. “Conventional scintillators are made with special plast ic containing fl uorescent agents,” Teijin said in a statement. “A low-cost alternative that enables the production of inexpensive radiation detectors has long been sought. Scintirex now answers this need.”

TECHNOLOGY


Innovative process of overmolding polymer insertss A surprising array of forms,

textures, colors and special effects for the packaging of perfumes and cosmetics has been made possible by the innovative use of DuPont™ Surlyn®. Surlyn® 3D overmolding - the innovative process of overmolding polymer inserts with Surlyn® - will also take a prominent position at the DuPont stand with the presentation of new design concepts in Surlyn® 3D that help achieve greater packaging differentiation. Used in the caps, closures and containers of many leading cosmetic and perfume brands, Surlyn® is frequently specified for its unique combination of design freedom, glass-like clarity, functional performance, appeal ing tact i le properties and ease of production. A recent and striking application of Surlyn® is provided by the 50 ml and 100 ml bottles for a new male and female fragrance from Cesare Paciotti, produced under license by Weruska & Joel s.r.l. of Turin, Italy. The distinguishing hallmark of the Paciotti brand, best known for its high quality shoes, is a sparkling dagger – an emblem that has been faithfully

reproduced in the caps molded from Surlyn® PC2000 by G. Candiani S.r.l., of Tradate, Italy, a company with many years of experience in luxury cosmetic packaging. “The challenge of this design was to have the dagger, made of PC/ABS, perfectly suspended in the center of the solid Surlyn® cap,” explains Mr. Carlo Candiani, owner of G. Candiani. “We considered no other material beyond Surlyn® for the cap itself, as it remains unique for the production of thick parts with a clear, glass-like quality without sink marks or voids.” As will be refl ected by the commercial applications and prototypes on display at the DuPont booth, the perfume and cosmetic packaging industry’s increasing familiarity with Surlyn® 3D overmolding technology is leading to the development an increasing number of colours, textures, shapes and sizes for the inner and outer containers of perfume, personal care and make-up products. Surlyn® 3D – the D’s standing for Design, Decoration and Depth – involves the overmolding of a single or multilayer polymer inner container with glass-like transparent,

highly-durable Surlyn® resins. Its core benefi t is the greater design freedom offered by the creation of inner and outer containers in different shapes and with a range of visual effects – from crystal transparency, coloured translucence to frosted effects. Its use of polymers and unique production process enable the simple and cost-effective decoration of both the inner and outer containers’ surfaces, which remain protected without the need for additional coatings or varnish. The creative freedom provided by Surlyn® is appreciated and adopted in the production of fragrance caps and closures, cosmetic jars, bottles and bottle casings, opening up many new design possibilities to combine function with aesthetics. Surlyn® offers the transparency of glass, without the weight and fragility, whilst it can also be frosted, faceted or fi nished to obtain special effects, or colored to create elegant translucency. Its warm and sensual touch is coupled with functional benefi ts such as toughness, absence of chipping and breaking and good chemical resistance.

Plastic Technologies Inc (PTI) is developing a lightweight

foamed polyethylene terephthalate (PET) container blow moulding process available for the dairy applications through both stock and custom options. This process has

TECHNOLOGY

PTI develops PET container blow moulding process for dairy applications

been unveiled in 2009 and it is based on MuCellV Technology. This process has the potential to bring up to 50% improvement in ultraviolet (UV) barrier when compared to monolayer PET or HDPE dairy bottles. The fi rst stock container is 300 ml and also features

a tall, square profi le. The capability targets milk, drinkable yoghurt’s, and also specialty dairy products. It is ideally suited to those with organic positioning, who aim for package performance.


WPC the new option for new spirit levelIt seems that Wood-plast ic

composite (WPC) is the new options for making spirit levels. G e r m a n y - b a s e d B a y e r i s c h e Maßindustries (BMI) is using profi les made by NaturinForm, a wood-plastic composite (WPC) profi le producer also based in Germany, for its Polywood spirit level – the fi rst housed in WPC. BMI said it looked for a material that provide the consistent and smooth surface necessary for the strict measurements for spirit levels - 0.5mm/m for flat positions and 0.75mm/m for rotated positions.

Acco rd ing t o t he re l ease , NaturinForm design and development manager Bernd Motschenbacher, the company achieved the smooth surface by using a fi ner wood fi bre and a symmetrical profile contour,

as well as an enhanced extrusion calibration process. And the cooling of the extruded WPC profi le ensures that it does not warp in storage, says Motschenbacher. The Polywood spirit level is made from an insulating, non-conductive WPC material so can withstand exposure to voltages of up to 1,000 volts. It is suitable for use in Zone 1/21 and Zone 2/22 explosion-protection environments, such as in coal mines. BMI says its Polywood spirit level is warm to touch and resistant to soiling. The company produces the cutouts for the spirit bubbles and says there is unrestricted visibility of the horizontal spirit bubble, as there is no separate edge around the recess, as there is in conventional spirit levels.The Polywood spirit levels are available in lengths of 40cm, 60cm

and 80cm. They join a range of spirit levels made by BMI that also include models housed in ABS for smaller mini and pocket models and glass fi bre reinforced ABS for a torpedo-shaped spirit level, as well as standard aluminium versions up to 100cm. NaturinForm was founded by its managing partner Horst Walther, who invested €1m in the former Poly-Pro-Tec (PPT) company’s WPC production facilities and product diversifi cation in 2009, bringing PPT out of insolvency. Aside from spirit levels, BMI products also include ABS, glass fi bre reinforced ABS or PA, PVC, metal and wooden extending rulers, as well as retracting tape measures enclosed in ABS and two-component ABS/elastomer soft-touch housings.

TECHNOLOGY

EREMA Plastic recycling systems offer high quality, reduced CO2 emissions, power

EREMA plastic recycling systems have been able to complete

the high-quality processing of plastic waste, through their plastic recycling systems making a valuable contribution to sustainability. Since the beginning of last year, EREMA’s customers have not only had the benefi t of high recycled pellet quality, they have also been able to considerably reduce CO2 emissions, power consumption and, as a result, production costs through ecoSAVE® technology. ecoSAVE®

is a complete package of design and process engineering measures that reduce energy consumption by up to 10%. These measures include the use of high-quality energy-saving components such as high-performance motors, for example. With its ecoSAVE® technology, EREMA places the emphasis on continuous quality improvement and enhanced customerbenefi ts.

The process of continuous energy optimisation through ecoSAVE® will

continue with additional technical advancements in 2011, too. To reduce losses through heat radiating to the outside and optimise thermal output even further, melt filters on new recycling systems will now feature added insulation. Effective and very robust insulation materials are used in the fi eld of pelletising to prevent heated elements from losing heat into the cooling water. These extras are included in all EREMA plastic recycling systems as added value at


RequiredSecond Hand Working ConditionPlastic Injection Moulding Machineof 80 tons to 130 tonsand 180 tons to 300 tons.

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no additional charge and enable plant operators to reduce production costs and optimise energy consumption even further also in future.

Bes ides op t im i sed ene rgy requirements, the systems featuring ecoSAVE® technology also stand out through their user-friendliness and operational reliability. The optionally

available process control system gives the plant operator information on current energy requirements, thus enabling active energy optimisation throughout the ongoing production process.

With ecoSAVE® technology EREMA once again confi rms its expertise in addressing and fulfi lling both technical

and economic requirements that face end users. EREMA attaches prime importance to research and development to ensure that its plastic recycling technology will continue to remain the leading standard worldwide. The focus is always on the basic principle of protecting resources and handling them responsibly.

Invicta Plastics developes Cardia biohybrid

Leicester based injection molder Invicta Plastics Ltd. is set to

unveil a range of products made from a low carbon polymer material that will shake up the sustainable packaging market. Invicta will launch the products made from Cardia biohybrid resin that can reduce a product’s carbon footprint by up to 50 percent.The masterbatch is based on Dent Corn - a by product from the animal feed industry – and is blended with traditional polyolefi ns. Also as it is produced from waste material no extra carbon is used to grow it, as can be the case with other polymers based on renewably sourced materials.

Plastribution was appointed in March as the UK sole distributor.

Invicta marketing manager Pragash Suntharamoorthy said: “We think this will appeal more to customers because it doesn’t lose the properties of a standard based material but dramatically reduces carbon footprint We are working with Cardia as well. It’s quite revolutionary because there are a lot of materials out there that are renewably sourced.

He further added that the material can go through mainstream plastic recycling up to four times and doesn’t need to go through a special process like some other ‘green’ polymers.

Invicta has three product divisions – point of sale, drinks promotions and

contemporary bar ware; education; and contract molding. The family fi rm’s clients include multinationals Diageo, Coca-Cola Co., and Procter & Gamble Co., which have been invited to speak at the offi cial launch next month.

TECHNOLOGY


IN THE NEWS

Thai IRPC to shut all plants for maintenance for 40 days from mid-November

Thailand’s IRPC Pcl plans to shut all of its plants for major

maintenance for 40 days from mid-November to late December, as per Reuters. The company operates Southeast Asia’s biggest integrated petrochemical complex, and schedules a major shutdown for maintenance every three years. The petrochem major plans gradual shut down of each of its plants by restarting operations at one to offset loss of production

Healthy demand for HDPE injection and blow moulding grades in SE AsiaPlayers in Southeast Asia

report that demand for HDPE injection and blow moulding has been healthy despite disappointing demand for other PE products, as per ChemOrbis. Comparatively strong demand for HDPE injection and blow moulding was attributed to tight supplies within the region. This has driven traders generally uninterested in securing fresh PE cargoes to express interest for these two grades.

Traders in Vietnam reported that they are actively seeking HDPE injection and blow moulding cargoes as local availability is tight amid a good number of inquiries for these grades. Traders are showing little

interest in other PE as PE supplies are generally sufficient within the country, especially for LLDPE film. One trader is considering purchasing some offers received for Philippine HDPE injection and blow moulding this week, although they continue to negotiate with their suppliers in hopes of securing some discounts on their deal price. An Indonesian producer raised HDPE injection prices to the local market by US$10/ton, but left prices for other HDPE grades unchanged and reduced LLDPE fi lm prices by US$30/ton. A Southeast Asian producer who reported selling some HDPE injection to Vietnam earlier in the month expressed a

higher sell idea for HDPE injection to the Indonesian market. The producer commented that their offers for other PE products are stable this week owing to limited buying interest for most PE products. In Malaysia, a distributor reported to have reduced September availability to the domestic market as they continue to focus on clearing out their back orders for HDPE injection and blow moulding. Domestic HDPE blow moulding is currently trading with a premium of around MYR100-110/ton ($33-37/ton) when compared with HDPE fi lm while HDPE injection is trading at an even larger premium of around MYR300-400/ton ($100-134/ton) when compared with HDPE fi lm.

at the closed ones. Also, no major impact is expected on sales due to sufficient stockpiling by IRPC. The plan that will effectively lead to an actual shutdown of 30 days, will reduce Q4 refi ning output to an average of 140,000 bpd, down by 30,000 bpd from normal output levels for the October-December period, and down from 160,000-170,000 bpd in Q3. The petrochemical complex has an annual capacity of about 924,000 tons.

Ahmedabad Municipal Corporaion to further study rules onplastics ban

Though the Ahmedabad Municipal Corporation

(AMC) has framed draft rules to ensure an effective plastic ban, it will further study similar rules in various Indian cities. The AMC has also organised a meeting of experts and manufacturers to secure feedback on how to implement the ban. The AMC team that is preparing the draft proposal, is examining the rules in Hyderabad, Mumbai and Kolkata.


Growing Pipeline industry feels the need for protective coatings

Pipeline operators are renewing and repairing existing pipes

and laying new pipelines to secure energy and water supplies across the world. There are also new applications upcoming including carbon dioxide sequestering. Alongside this there is intense international interest in pipeline integrity as Oil, gas and water are being transported under very hostile conditions including extremes of temperature and pressure from subsea to deserts and arctic environments. The steel pipelines carrying these materials have to be protected from both the exterior and from interior corrosive factors in the fl uid that is being transported. This is carried out using techniques such as cathodic protection and polymeric coatings. For example, DuPont has engineered internal coatings for downhole production tubes. Adhesion of coatings is vital: Dow Coating Materials has novel technology to improve coating with fusion-bonded epoxy (FBE). Quality control is critical in this industry and there are case studies from leading companies. Gazprom Vniigaz is studying the standards of pipe coating in the northern sections of the Yamal-Europe gas pipeline and the Safa Rolling and Pipe Mills company has been comparing testing protocols for cathodic disbondment. In the operating area, Statoil has been examining the temperature performance of polyurethane fi eld joints. For subsea insulation, Total Exploration and Production is looking for wet thermal

insulation coatings and suitable qualifi cation methods. This is also an area of interest to Trelleborg Offshore, which supplies custom coating thermal insulation systems. Exova is in the business of testing coatings including subsea performance.

In the Middle East, Borouge has been assisting in applying a 3-layer polyethylene coating to protect the mega Ras al Zour to Riyadh water pipeline. Across the world in Malaysia Petronas has worked on the development of a toughened 3-layer PP coating system and the leading Indian company, Welspun, has studied the advantages of a PE coating and epoxy compared to cement. For rehabilitation in the fi eld, Kleiss has a viscoelastic material and Trenton has methods to help prevent corrosion in carrier pipes.

Field joint coating systems are critical to integrity and it can be hard to attain the factory applied levels of sealing. The Nederlandse Gasunie has innovations in fi eld coating for the new Dutch gas pipelines, while CANUSA has a novel automated system to control fi eld applied coating. In Finland, Gazprom has been using a new fi eld joint coating system developed by KWH Pipe Technology on the Mantsala-Situntio natural gas pipeline. In a development with Total, Ifremer has tested a new polymer for deep sea fi eld joint coatings. In addition, Berry Plastics has studied the requirements for fi eld joints for 3-layer PP coated

pipes. Pipe coating system suppliers have been examining the needs of the industry and Bredero Shaw has produced new equipment for mobile pipeline coating. Pipeline operators are looking for more robust, durable protection and the latest research on this subject including new pipe coating materials that are expected to be presented at Pipeline Coating 2012.

India and Saudi Arabia to resume talks on PP anti-dumping levies

Saudi Arabia and India plan to resume talks in

September to discuss lifting of an anti-dumping levy imposed on the kingdom’s polypropylene (PP) exports. Failure to reach an agreement in previously held bilateral negotiations has attached increased importance to the next round of talks. India decided on anti-dumping duties on PP imports from Saudi Arabia, Oman and Singapore. A notifi cation by India’s Ministry of Finance, Department of Revenue stated that the duty tariff will be levied for a period of fi ve years from the start of the provisional anti-dumping duty imposed by the government on 30 July 2009.

IN THE NEWS


India’s first school made with composite materials

DSM has helped opening of India’s fi rst school made with

composite materials The school, situated in the village of Kusgaon, Pune, is a demonstration of DSM’s commitment to using its bright science in both Life Sciences and Materials Sciences to create brighter lives today and for generations to come. Made of composite materials, its lightweight and modular nature means it can be built by four non-skilled workers without the need for any specialist equipment, saving time, money and impact on the local environment compared to 5 to 6 months for traditional schools made

Global markets seeing lower offers for American PVC

Several major global markets have been seeing lower offers

for American PVC recently, mainly attributed to globally thin buying interest towards fresh, long distance import cargoes, as per ChemOrbis. PVC buyers from China managed to purchase US origin cargoes with weekly decreases of US$20-30/ton on CFR China basis. The overall demand for import materials, however, is considered to be soft, with traders complaining of a difficulty in deal conclusion these days. In Italy, offers for American PVC k64-65 cargoes for

end-September/early-October delivery were reported almost US$20-25/ton below August levels, according to a trader. However, the current euro/USD parity rate at above 1.41 is holding the euro based prices on DDP Italy basis mostly steady compared to last month. US origin offers at the end of last month did not meet with much interest from Italian buyers who were scouting for some discounts for domestic cargoes. Italy may see further reductions in offers for US origins in the coming weeks due to slightly lower offers for this origin in the Egyptian and Turkish

IN THE NEWS

markets, especially if European producers concede to some discounts on their initial September prices, which were rolled over from August. In the Turkish market, September k67-68 and k70 offers for American PVC were reported US$20-40/ton lower on CFR Turkey basis as buying interest inside Turkey remains sluggish following the extended holidays. In the nearby Egyptian market, where US origin is the main import supply source, a converter was offered US PVC at a price which indicates US$10-45/ton decreases from the pre-holiday levels.

from concrete. Its excellent mechanical properties and attractive design have also created a safe, strong, well-insulated and inspirational learning environment.

As the world’s biggest producer of vitamins and micronutrients, DSM has also formulated a nutrition program that will help the students attain their full academic potential. It has been calculated by the Copenhagen Consensus think tank that achieving adequate micronutrient levels in its population can impact a country’s GDP by as much as 2%.

Kolkata bans less than 40 microns plastic carry bags, cups and plates, packets

Kolkat ta has banned plastics bags and gutka

packets. According to the release with effect from September 9, 2011, Kolkatta bans plastic carry bags less than 40 microns thick, all plastic cups and plates along with plastic packets of gutkha and pan masala. Experts say the environment department seems to appear serious about enforcing the law with the help of Kolkata Police’s enforcement branch.


Sipchem postpones shutdown of its VAM plant

Sa u d i I n t e r n a t i o n a l Petrochemical Company

(Sipchem) has delayed shutdown plans for its 330,000 metric tpa vinyl acetate monomer (VAM) plant in Jubail, as per Platts. As per original plans, the company had scheduled to shut the plant for 15-20 days in August or September to replace the plant catalyst, and then postponed the shutdown to September or October. The shutdown is postponed to Q4-2011, as the plant’s catalyst continues to work above expectations. Operations at Sipchem’s plant have a major impact on Indian and Southeast Asian markets, being the only VAM plant in the Middle East, while India has none and Southeast Asia has only one 170,000 tpa plant run by Celanese in Singapore. The shutdown of the plant will result in an impending loss of around 13,500-18,000 tons of VAM output.

UK’s BG Keen on buying Stake in ONGC’s KG Basin Block

Britain’s BG is keen to expand its exploration portfolio in India

and is eyeing stakes in ONGC’s deep water block and considering investment in and LNG terminal, but the company wants natural gas prices to be freed from government on control.According to reports Walter Simpson, head of BG India, said his company was keen to pick up a stake in one of ONGC’s oil and gas blocks in the Krishna Godavari Basin, which is

adjacent to Reliance Industries gas –rich D-6 block. ONGC plans to produce 25-30 million standard cubic meters per day of gas from the block by 2016-17. It is also learnt that the company had sent ONGC a proposal detailing their interests in packaging up an equity stake in their Krishna- Godavari DWN 98/2 block about a year back. They are awaiting ONGC’s response as of now and continue to remain very keen to partner in the block.

IN THE NEWS

The Santa Cruz County Board of Supervisors, U.S unanimously

voted to ban the use of plastic bags and place a 10-cent fee on paper bags that will increase to 25 cents after the ban is in effect for one year. The measure approved on September 13, require approval at a

second reading to be held later this month. If approved, it bans giving out plastics bags at all restaurants, supermarkets and convenience stores in unincorporated areas of the county. There are some exceptions in the proposal. For example, restaurants would be permitted to give customers

Santa Cruz County Board of Supervisors approves of plastic bags ban, fee on paper bags

one free paper bag for any food they end up taking home. In addition, those on public-assistance programs would not be charged for paper bags.

HUL and Bharati encourages plastics recycling

Indian consumer goods companies in India are launching an initiative

to encourage plastics recycling. Mumbai-based Hindustan Unilever Ltd. and Bharti Retail are sponsoring the “Go Recycle” initiative at 31 Easyday and Easyday Market retail

stores. The project’s goal is to reduce packaging waste and to educate consumers to practice responsible consumption.Consumers who bring in empty plastic bottles and pouches will receive coupons for discounts on fi ve Hindustan Unilever brands.


Prasad Group of Companies ................................................................................................................ cover

Madhu Machinaries ....................................................................................................................inside cover

Anupam Heaters..........................................................................................................................................1

Polymechplast .............................................................................................................................................2

CONAIR India. .............................................................................................................................................4

Ferromatik Milacron. ....................................................................................................................................5

Flamingo ......................................................................................................................................................6

KABRA Extrusion.........................................................................................................................................8

Panchal Plastic Machinery. ..........................................................................................................................9

ACS Auxiliaries India Pvt. Ltd. ..................................................................................................................10

Reliance Polymers.....................................................................................................................................12

JOMSONS .................................................................................................................................................13

Plast India ..................................................................................................................................................14

LOHIA ........................................................................................................................................................15

Swastik Sales Corporation ........................................................................................................................16

Plastivision ................................................................................................................................................24

RR Plast ...................................................................................................................................................51

GMS Plastics ............................................................................................................................................52

JKP Masterbatches ...................................................................................................................................53

Merit Polyplast. ..........................................................................................................................................54

Super Graphic Industries ...........................................................................................................................60

Prayag Polytech Pvt. Ltd. .........................................................................................................................61

FITCO. .......................................................................................................................................................62

Vora Packaging. ........................................................................................................................................63

Multifl ow.....................................................................................................................................................64

Manan Enterprise ......................................................................................................................................64

Bombay Chemical .....................................................................................................................................81

TAGMA .............................................................................................................................. Inside back cover

KMG Business Technology .......................................................................................................... Back cover

No. Tech-47/713/MBI/09-11RN. 22731/72

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