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THE GLOBAL PLASTICS MAGAZINE

A Canon Communications LLC Publication

January 2010

Published Continuously Since 1925

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Next stop: RecoveryYou take the wheel

Tips for keeping your machines running smoothly

Like your current material? Maybe you’ll like it more if it’s greener

Mergers and acquisitions fl ourish in spite of the economy: What should your company do?

Predicting plastics futures

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MODERN PLASTICS WORLDWIDE • JANUARY 2010 3plasticstoday.com/mpw

CONTENTSCOLUMNS

10 As I See It Lead, follow, or get out of the way: It’s your choice Plastics-focused M&A consultant Blaige & Co. says loosening credit in 2010

will mark the return of financial deals, with plenty of strategic action as well.

14 Modern Executive Is now the time for plastic futures? Proven accuracy in price tracking is appealing to OEMs and brand owners

looking to reduce resin price volatility.

PROCESSING TECHNOLOGY

16 Processing Trends Extrusion: Bevy of film development unleashed at in-house fair

Thermoforming: Thermoformer’s photovoltaic roof eliminates the need to

pay peak power rates

Biomaterials: Wheat straw and reclaimed carpet; Ford seeks greener paths

to components . . . and more.

22 Material Thoughts

28 Product Watch

FEATURE

34 Make Every Pellet Count ‘Preventive’ is key to making a maintenance program work for you Yes, saving energy saves some money; but don’t leave the rest of it on the

table by neglecting your machines.

WORLD TOUR

38 Malaysia seeks advanced manufacturing role42 Bioplastics: Coming to an RFQ near you

SPOTLIGHT

50 Y.A. Liew’s ethos emphasizes capabilities Precision engineering firm Polyparts (Ipoh, Malaysia).


J A N U A R Y 2 0 1 0

ON THE COVER

12 Modern Executive 2009 in the rearview, 2010 steers toward growth Recovery will be shaped by the

willingness of consumers

worldwide to spend.

ALSO IN THIS ISSUE

4 Contact MPW4 Web exclusives7 Letter from the editor8 First Look: News & Analysis

46 Countdown to K47 Classifieds49 Calendar of Events49 Advertiser index

18

9

V O L . 8 7 N O . 1

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Online now atplasticstoday.com/mpw

Be all you need to beRather than farm out work, automotive interior components supplier IAC has developed a broad range of competencies, including compounding, blowmolding, and injection

molding, and used them to become the dominant player

in its space. Clare Goldsberry reports on what makes this

company tick.

PLA developments gather speedResearchers around the world are spurring their efforts to develop lower-cost methods of creating polylactic acid, a plastic derived from plant starch. Those efforts hit high gear recently, as reported here.

Breakthrough made with first silicon-on-plastic integration The ability to sinter silicon onto plastic film substrates at tempera-tures of less than 200°C is now within reach. The technology could help thermoplastics find their way into applications such as solar cells and thin-film transistors for liquid crystal displays, which are currently dominated by glass or silicone.

Processor’s development raises the bar for heat-set bottlesDevelopments in blow-molded bottles for heat-set bottles have been a (you guessed it) hot sector of late. Processor Liquid Container recently weighed in with what it calls its ThermaSet line. Improved clarity and less shrinkage are two of the benefits promised.

Custom line helps steel pipe get plastics’ edgeA customized extruder setup supplied by Battenfeld Extrusion Technology enabled this pipe processor to run what he believes may well be “the most powerful hose jacketing extrusion coating line in the world.” Plastics meets steel in this application.

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EDITORIAL

Matt Defosse, Editor-in-Chief

Wow! Almost 400 people were there, and it was a genuinely internation-

al event. There was a note of excitement among the attendees too, a “things are going our way” vibe.

I was so thrilled to see a successful plastics industry event that I did it again: Wow! No, I wasn’t channeling a teen-ager; I was eyeing the attendee list. There were OEMs and brand owners aplenty, representing the packaging industry, of course, as much of the current bioplas-tics’ buzz is in that space, but also car-makers, electronic device manufacturers, and other consumer goods areas. Not too many processors on here, though, I thought; bit of a shame as surely these are the people many processors would like to meet.

As the event progressed and people talked, it became clear the entire bio-plastics arena—be it degradable materi-als, materials sourced from renewably resourced materials (RRM, the new acronym to learn), or some combination of the two—will in the next three to five years grow from its current minor niche status to somewhere between “main-stream niche” (a films processor there coined the term) or “a big wave” (that one from the Coke exec in attendance). OEMs and brand owners were leaning toward the big wave future because sus-tainability—overt sustainability, such as the switch to bioplastics, not just shav-ing another 0.3g off package weight—is what their customers are demanding, they said. It’s something for processors to ponder.

One other point to ponder struck me as a potentially serious threat to plastics. The paper and cardboard industries are waking to the fact they have an intrin-sically sustainable material, one with a well-established and easy-to-use (for consumers) recycling network in most of the world. Throw a biodegradable plastic coating on paperboard cups and you’ve raised the marketing bar pretty high for processors of PS or PP ones.

• • •

It’s a New Year, bringing with it new luck and new opportunities, and as our cover photo indicates, we’ve opted for optimism. Clare Goldsberry’s As I See It interview with Thomas Blaige shares that expert’s insight into M&A in the coming months, explains why M&A has barely slowed during the recession, and offers his advice for processors unsure how to react to this industry’s changing landscape. Tony Deligio’s 2010 forecast feature offers food for thought on where the industry, especially resin pricing and supply, are headed. Our Spotlight article

Those of us who hit the conference

and trade show circuit know that

attendance has been off 25%-50% at

most events for at least the past 15

months. All the more powerful was

the impression made by the 4th an-

nual European Bioplastics conference

in November in Berlin, Germany.

took Stephen Moore to Malaysia, where he met a molder with some very interest-ing insights and plenty of optimism too.

There is, of course, plenty more for you in these pages. Starting in this issue and continuing until October, you’ll find our Countdown to K series. If you like, think of it as our dose of cod liver oil for you. You may not want to swallow our argument. You’ll cite the travel, the cost, the time out of the office: Who can afford that? Our take on the situation: How can you afford not to be at the seminal industry event, the one where you know there will be truly new tech-nology affecting your business? Trust us, it’s good for you, and good fun to boot.

A respected friend recently mentioned he spends considerable effort thanking his customers for their support of his business. What a great way to start 2010, I thought. Thank you for reading our magazine. Your comments and sugges-tions, whether in meetings at trade shows or events, visits to your facilities, or in your calls and notes to us, are the highlight of our job. They are always welcome at [email protected]

Happy New Year, and thank you

MW1001_007 7MW1001 007 7 12/22/09 8:41:55 AM12/22/09 8:41:55 AM



FIRST LOOK

Daily news and features at plasticstoday.com/mpw


NPE trades Windy City for

Magic KingdomIn BriefReliance courts LyondellBasellIndia’s Reliance Industries made a cash bid for global polyolefins leader, LyondellBasell. If the deal reaches fruition, Reliance would become the world’s largest PP supplier.

PMT expandsPlastics Molding Technology Inc. has added 20,000 ft2 to its El Paso, TX facility to accommodate new molding machines and more than 40 recent hires. A dozen molding machines have been added recently.

A. Schulman to buy ICOCompounding giant A. Schulman (Akron, OH) intends to acquire compounder and material supplier ICO Inc. in a $191.4 million stock and cash transaction. For the buyer, the move enables it to expand into the rota-tional molding and masterbatch market.

Tech Mold adds whiteroomTo better facilitate the testing and quali-fication of molds for medical OEMs, Tech Mold, a designer and manufacturer of high-cavitation injection molds, is adding a whiteroom environment to its test facility, initially housing two all-electric presses, both from Arburg.

0%

30%

20%

10%

70%

60%

50%

40%

How do you feel about the decisionto move the next two NPE shows from

Chicago to Orlando?

Good idea; it was time for a changeBad call; Chicago was fine

64%

36%

Part of a discussion on worn screws’ effects on surging at our online Extrusion Forum. Join the conversation at plasticstoday.com/mpw.

“I tend to agree with you that the slow evolution of ‘wear’ is not likely to create a situation where we have good melt pumping on Tuesday, only to have it fall apart on Wednes-day. Screw melt pumping conditions DO change over time with wear, and particularly when aggressive screw and screw tip cooling are employed to ‘throw material around’ in profile tools.”

What you had to say Polling news

After calling Chicago home for 38 years and 14 events, the Society of the Plastics Industry (SPI; Wash-ington, DC) has decided to shift its triennial international plastics show-case, NPE, to the city of Orlando, FL and the Orange County Con-vention Center, citing among other things a cost structure in Chicago that impacted the ability of attendees to visit and exhibitors to participate.

In addition to a venue change, there has been a date shift as well. In 2012, the show will take place from Sunday, April 1 through Thurs-day, April 5, with the educational program beginning on Sunday, and Monday marking the first day of a four-day trade show.

Jim Buonomo of contract manufacturer Nypro, and SPI’s chairman of the board, said SPI’s 2009 operations committee, which consists of 12 SPI member compa-nies and NPE exhibitors, began a review of NPE’s costs in the March/April time frame, considering a new locale due to the escalating price of Chicago’s McCormick Place convention center. Buonomo said their research found that mounting cost pressures were limiting the amount of equipment that exhibitors were willing to run at the show.

“Our industry is very much into feel,

taste, and touch,” Buonomo explained, saying the lack of running machinery didn’t go unnoticed by attendees.

Jim Murphy of Davis-Standard, who is also the vice chair of NPE2012, said that, on the basis of dissatisfaction with Chi-cago, the operations committee began a thorough review of other potential host cities, but in the end it came down to a direct competition between Orlando and Chicago. Ultimately Orlando was chosen as the site for the next two shows in a unanimous vote; SPI’s board and executives affirmed the operations com-mittee vote.

The floor at NPE2009; the show moves to Orlando in 2012.

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FIRST LOOK


Caption

Here are some of the stories you might have missed at plasticstoday.com/mpw:

• Thermoforming: Prent plans new site in Denmark• Stella Plastic acquires Rosti • Teijin breakthrough: First silicon-on-plastic integration • Packaging processor seals exclusive deal for oxo-biodegradable

additives• Blowmolding: Processor’s development raises the bar for heat-set

bottles

These and many more, daily, at plasticstoday.com/mpw. Start your day right; check back often.


New officers at SPI: The Plastics Indus-try Trade Assn., include chairman of the board Chris Keller, president of the Con-air Group. Among others elected were vice chairman Jay Cude (president and CEO, Coeur Inc.), treasurer Fred Dan-

iell (COO, Kureha America Inc.), and secretary Bob Hamilton (group president, Illinois Tool Works).

Steven Bales, president of Bales Mold Service (Downers Grove, IL), died sud-denly on Nov. 18, 2009 in Harlingen, TX, where his company has a facility.He and his brother Mike started Bales Mold Service in 1978 to offer diamond polishing and hard chrome plating for injection molds. The company is well known for engineered coatings and fin-ishes, among other products and services.

Jacob (Jake) Axel was named president, effective Nov. 1, 2009, of the supplier of mold releases and process aid additives of the same name. His father Frank remains with the company as chairman and CEO.

[ On the record ]“What happens when China becomes more costly, which will happen? Do you then move to India, or Vietnam, or Africa, or South Ameri-ca? You will always be on the move!” Y.A. Liew of Polyparts, our Spotlight pro-cessor in this issue (p. 50).

“Probably the biggest difference that we’ve seen on our production floor is the utilization of RJG cavity pressure transducers.” Gary Flattum, executive VP of Venture Plastics, on what technol-ogy development has been the most influential on the company’s business as it enters its 40th year.

“Moving machines, molds, documen-tation isn’t hard. The most compli-cated part is moving the unwritten knowledge.” Christer Landgren, strate-gic account manager at Swedish injection molder Nolato (Torekov, Sweden), on the importance of knowledge transfer.

In December markets were what you would expect—calm—but this month and next could bring the storm. Generally processors work hard to limit the amount of cash tied up in inventory, especially at year’s end, but those who emptied silos last month stand a good chance of paying a painful premium for material this month.

According to spot trading market The Plas-tics Exchange (TPE; Chicago), some North American suppliers were expected to pare back their output last month, only exacerbating the situation if a processor is in need now. Also, favorable feedstock costs (North American polyethylene feedstocks are largely derived from natural gas) mean suppliers there had a natural advantage in export markets, giving them little reason to lower PE prices for domestic custom-ers. Polypropylene (PP) prices in North America returned to almost $0.70/lb levels due to contin-ued tight supply of propylene.

In Asia, price increases for HDPE, LDPE,

and LLDPE were marginal, reported plastics pricing service Polymerupdate (Mumbai, India). December was a wash in terms of pricing, and this month will set the tone for supply and demand, and pricing, for the coming weeks.

For PP in Asia, the story was similar but in fact prices dropped last month. PVC prices across Asia, including China, were firm, reported Polymerupdate, while the price of polystyrene rose in China on the back of a sudden spurt in upstream prices of benzene and SM feedstock. Buying volume was sluggish, however.

In Europe last month, a rise in ethylene feedstock prices, coupled with firmer prices of naphtha and a sudden lift in buying interest, pushed HDPE spot prices higher. Processors of LDPE and LLDPE, who had delayed purchases in hopes prices would drop as they worked off inventory, were caught out as prices held steady or rose. Contract prices of LDPE for December were reportedly about €20/tonne higher than in November, and LLDPE spot prices were up.

Pricing summary: Don’t get caught out Brought to you by The Plastics Exchange and Poymerupdate.com

Names in the news View from the field

Smoke, drums, and a light show entertained attendees as W&H unveiled its three-layer Optimex blown film line. More than 1200 went to the event in November. (We did, too; see p. 16 for our report.)

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http://Poymerupdate.com


AS I SEE IT

In spite of the economic downturn, plastics M&A activity in 2009 was as

strong as the record number of transac-tions completed in 2008. Chairman and CEO Thomas Blaige shared his insight into 2009’s activity and his outlook for 2010. Edwin Parkinson, president of Blaige & Co., also participated in the interview.

MPW: Given the downturn and the dif-ficulty in securing financing, the high number of M&A transactions in the plastics industry seems surprising. What drove strong M&A activity in 2009? TB: The drivers in 2009 were somewhat attendant to the economic climate, as this can accelerate opportunities for con-solidation. Many of the drivers that have been apparent for a number of years, however, continue in play—divest non-core portions of the business, orderly transition of a family business that does not have interested family members to take over the reins, opportunistic buys to increase market share or enter into new or complementary markets, geographic diversification, and so on. Also, there are two fundamental market drivers in that the plastics industry is 1) newer and thus

much more fragmented than the gen-eral industrial market, and 2) plastics are benefitting from the migration of metal, glass, and fiber to composite materials.

MPW: Looking at your latest report, there are companies buying a company, and then divesting some of that com-pany’s businesses to another company. Can you comment on what seems to be a huge game of “musical companies”?TB: Actually, it’s not musical companies. It’s a matter of consolidators making strategic moves to strengthen their posi-tion as the economy improves. Those that are strong are in a position to fur-ther their reach, and improve business results through synergies recognized in the newly combined companies.

There’s a perception out there that the economy is slow and therefore there are no deals. With respect to the mega deals that’s true, but with middle-market and strategic deals, it’s not true. Behind the scenes there’s an even more aggres-sive effort for companies to expand their strategic horizons, which is the case for many of the leading companies. Their number one goal is strategic—73% of the activity we see is strategic, not finan-cial. There’s been a significant move toward selectivity by strategic buyers.

MPW: What about financial deal activity?TB: Financial deals—which represent 27% of the M&A activity—largely drive pricing, but with credit so tight, fewer

financial deals are happening. Financial buyers are less selective and will do many deals as long as they can service debt. They don’t necessarily look at delineating between proprietary business vs. custom business. There are so many companies in each niche of the market, and there’s always someone looking for that. Whether it’s a low-margin, high-volume player or a high-margin, low-volume company, there’s a range of busi-ness models out there in each niche. And whether that niche is in raw materials, industrial molding, or rigid or flexible packaging, there are participants that are price oriented and those that are niche oriented. Who are these players? Who would value these types of companies and how do we get the greatest price? That’s what many of these financial buy-ers are looking at. They’re looking to do leveraged deals.

MPW: How are these consolidators impacting the industry? TB: These consolidators are very spe-cific and making strategic moves, such as combining other companies. The ther-moforming sector, for example, con-tinued its 2008 surge into the first half of 2009, with 2008’s activity largely driven by companies seeking to strategi-cally broaden their market and capa-bility portfolios or to vertically inte-grate operations. Sabert Corp., a leading high-end consumer packaging company, acquired the packaging business of Gage

Chicago-based mergers and acquisitions (M&A) advisory and consultant

group Blaige & Co. posits that even a bad market is no reason to forego a good

strategic move.

By Clare Goldsberry

Thomas Blaige founded his company in 2003 after a career that included

serving as managing director at two generalist investment banks. The company

claims to have tracked more than 1500 sector mergers and acquisitions over the

past fi ve years. His fervent plea is that processors come to his fi rm early on for

help with strategy and implementing tactics.

Lead, follow, or get out of the way: It’s your choice

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Executive Q&A with Thomas Blaige

Industries, which consisted of dispos-able CPET dual-ovenable and cold food containers for use in the grocery, food processor, institutional, and dietary meal producer markets. This will enhance Sabert’s product offerings to the market, and position the company for future growth. There are always the leaders and followers, with 20% being the leaders, another 20% the followers, and 60% sitting in the middle with no strategy—the “others.”

MPW: What are processors to do?EP: They need to begin asking the strate-gic questions: How will they proactively pursue their strategy and grow? Will they consolidate with a competitor? They need to grow or they’ll realize attrition. They don’t move sideways. The leaders need to buy and followers need to sell. The others, the 60% in the middle, don’t do anything, and that’s amazing. Unless they do something—think creatively and proactively and develop a strategy as

to where they’ll go over the next year, two years, five years—there will be a slow erosion of their business or a com-plete breakdown when a major customer leaves. The danger is that they get com-placent and things change and they get caught without a strategy. We’ll help them develop a strategy. We’ll spend a lot of time with them and help them. All companies have a core competency, and our expertise is helping companies iden-tify a strategy for their business and put that whole process together.

MPW: What does 2010 look like? TB: We’ll see credit loosening up a bit in 2010. Financial deals will come back and strategic deals will continue next year. The financial crisis has had a sobering effect on family business owners. Previously, many owners of companies thought they could continue to pass the mantle to future gen-erations without worry. Now, many don’t think they can continue indefinitely as a family business in a global environment.

More and more company managers and owners who are trying to make stra-tegic moves through M&A are scared straight. They need to talk to experts and be serious about the future of their business and what they’re going to do, such as, “Let’s try to grow, but if we can’t, we can sell to an attractive suitor at the maximum price through an intel-ligent strategy.” Finding the best buyer at a high price is tough if they get forced into doing a deal when the bank calls the loan. Then they’ll call the first name on the Rolodex, and often pull off a quick (cheap) deal. It’s a little late in the game when the bank cancels their credit line or a major customer leaves, to say “Oh my gosh, we need help!”MPW


Read the full interview, including Blaige’s guidance for small and mid-sized processors in this climate of con-solidation, at plasticstoday.com/mpw.

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http://www.technovel.co.jp



MODERN EXECUTIVE

Most economists now agree that the longest recession the U.S. has

endured since the 1930s bottomed out in June of last year. Before descending to that nadir, however, an ignominious list of lowlights was compiled. • For the first time since World War II, global gross domestic product (GDP) declined in 2009, falling by 2.3%. • North American auto sales dropped to levels last seen in 1982.• Housing starts hit their lowest level since data began being recorded in January 1959.• Some 8.2 million jobs were lost since the recession officially began in December 2007.

The impact on plastics was marked, according to Howard Rappaport, ther-moplastics global practice leader at industry consultant Chemical Market Assoc. Inc. (CMAI; Houston, TX). CMAI estimates that global commodity resin consumption in 2009 totaled around 175 million tonnes, off approximately 8% from 2008’s total consumption of 190 million tonnes.

“From a macro perspective, the indus-try has experienced a contraction in terms of overall demand for most major resins,” Rappaport says. “In the more mature economies of North America and Europe, this has been evident in negative growth between 2008 and 2009. In the emerging economies of Asia, the Middle East, and Latin America, there has been a marked slowdown in demand growth from the higher double-digit rates experi-enced before the economic slowdown.”

V or W

Most economists believe the economy, at least in the United States, reached its bot-tom in June 2009. Going forward, the

question, as we extricate ourselves from the pit we fell into, remains, “Will the climb be steady and unfaltering, result-ing in a V-shaped recovery, or will that upward trend drop once again and result in a W-shaped, double-dip recovery?” For its part, CMAI sees a V more likely than a W in the economy’s future, with some caveats. “If there was a major spike in oil or gas prices in 2010,” Rappaport says, “that may ripple through the resin cost structure and push prices up to uncomfortably high levels, as we saw back in the summer of 2008.”

In determining the shape of the recov-ery, CMAI will consider several key metrics, including the pace and progress of major capacity expansions planned for the Middle East and the willingness of consumers in developed economies to reopen their pocketbooks. On the first point, Rappaport says that while there

have been several plant startup delays, the majority of the investments are forg-ing ahead and are expected to bring new resin capacity to the marketplace over the next 12-18 months.

On the latter point, to this stage the recovery that began in June 2009 has been fueled by government stimulus in developed countries and relatively uninterrupted growth in developing economies like India and China. CMAI and others say, however, that for a meaningful and sustained rejuvenation to occur, consumer spending will be key, particularly in developed markets. The U.S. traditionally makes up 25%-30% of the global economy, with two-thirds of its economy linked to consumers’ pocketbooks.

“One of the most important indica-tors as we emerge from the recession will be consumer spending,” Rappaport says.

By Tony Deligio In the wake of the “Great Recession,” what are plastics’ prospects in 2010?

Given the historic collapse of 2009, it will be by default a year of growth and

one that faces lingering threats as well as opportunities.

2009 in the rearview, 2010 steers toward growth

MW1001_012 12MW1001 012 12 12/22/09 8:45:29 AM12/22/09 8:45:29 AM



“Once the consumer gets back in the game and is more confident in spending his disposable income, this will create more consumption in the major economies of Europe and North America. These two regions will ultimately play a role in the longer-term recovery beyond 2010.”

According to the American Chemistry Council’s (ACC; Arlington, VA) 2009 Year End Situation & Outlook, U.S. con-sumer spending uncharacteristically con-tracted for two years in a row, shrinking by 0.2% in 2008 and 0.6% in 2009. Consumers will begin increased spending again in a limited fashion in 2010, lifting outlays by 1.7%, predicts the ACC, with 2.5% spending growth in 2011. After lifting spending by 1.6% in 2010, busi-ness spending is forecast to accelerate to 5.8% growth in 2011.

Lingering fallout

The difficulties of 2008 and 2009 for the plastics industry have resulted in a stress test of sorts for resin producers, forcing them to address their weaknesses or fall by the wayside. Rappaport describes the result as a “major shakeout,” where companies have not only changed own-ership, but in many cases completely reoriented their business model. The new landscape: The Middle East emerges as a major exporter for several key commod-ity resins; smaller, older, less efficient operations in Europe and North America close; and perhaps even sites in Japan, Korea, and Taiwan could be shuttered,

as the Chinese add domestic capacity to satiate their local needs. “Consolidation will continue,” Rappaport says, “and eventually there will be more assets in the hands of fewer companies.”

On the whole, the ACC reports that after investing $237 billion in new plants and equipment in 2008, the chemical business pared capital spending in 2009 by 3.9% to $228 billion. Going forward, the ACC anticipates a 10.1% increase in 2010 ($251 billion), with $284 bil-lion invested in 2011. Fully 93% of the incremental investment will come in emerging markets from 2009-2014, with “noteworthy gains” expected in China, Africa, and the Middle East.

Those overseas capacity gains and contractions in U.S. production and exports have the ACC forecasting that the United States will run a $1 billion trade deficit in chemicals in 2011. In 2009, the country had a $2.4 billion chemicals trade surplus, with a $3.9 bil-lion surplus forecast for 2010.

GDP to expand in the U.S., globally

CMAI estimates global GDP growth will average between 3.5% and 4% over the next three to five years, with Europe and North America registering between 2% and 2.5%. Countries like China and India will begin to pick up momen-tum and eventually reach annual GDP growth rates of at least 10%-12%.

As the ACC assessed the detritus of 2009, it also attempted to look forward,

admitting that “forecasting at this junc-ture involves considerable uncertainty.” The association report states that the general consensus is the recession is definitely over and 2010 and 2011 will be marked by recovery. After shrinking in 2009, the ACC believes global GDP will grow by 2.8% in 2010 and 3.2% in 2011. U.S. GDP is forecast to expand at a rate of 2.6% in 2010 and 2011 after contracting by 2.3% in 2009. After jumping from 5.8% to 9.3% in 2009, U.S. unemployment is expected to lag the broader recovery and expand to 9.8% next year and still be at 9.3% in 2011.

The ACC cautions that continuing issues in the consumer sector and the need to work through imbalances throughout the economy mean that 2010’s recovery will be less robust than previous cycles, with the outlook for chemistry “some-what muted.”

Resin supply/prices

The massive investment in capacity in the Middle East and Asia could have far-reaching effects in 2010, with world-scale plants coming online at a time when any recovery demand for materials will be nascent at best. Because of this, CMAI is anticipating that operating rates and prices for resin producers could be ane-mic this year. “[CMAI] anticipates resin prices will soften in 2010,” Rappaport says, “which in reality may be good news for some resin buyers and bad news for sellers. The only question mark will be energy and its impact on the cost side of the equation.” The ACC forecasts that after chemical industry operating rates slipped to an average of 70.1% in 2009, they could climb to 78.5% by 2012. It’s an improvement, but still at a level that would suggest reduced margins.

The crucible of 2009, however, has also changed how resin producers oper-ate. “There was a tremendous amount of discipline being exercised by many of the resin producers as they strug-gled with a weakened economy and softer demand,” Rappaport said. “This new discipline provided companies the opportunity to trim out excess cost, lower inventory levels, and recalibrate their business models.” MPW

Machinery outlookAccording to Europe’s association

for plastics and rubber machinery

manufacturers (Euromap), not unex-

pectedly, 2009 marked a sharp drop

in demand after a record 2008. In an

October 2009 press release, Euromap

noted that although its members

began feeling a decline in machinery

demand in the fi nal quarter of 2008,

a 1.2% boost in production and 1.5%

increase in exports lifted the year

to record totals. In 2009, however,

Euromap believed that overall pro-

duction would fall by 22% to a total

value of €13.6 billion. Core machin-

ery, which has a 62.7% share of

Euromap’s business, was expected to

contract by 30%.

Looking forward, Bernhard Merki,

Euromap president and CEO of Swiss

injection molding machinery supplier

Netstal, said his group’s assumption

is that the order decline has bottomed

out, although fi nancing remains an

obstacle due to tight credit. “The

industry expects an upward trend in

time for K 2010 at the latest,” Merki

said, referencing the triennial show

that takes place this year from Oct.

27-Nov. 3 in Düsseldorf, Germany.

Forecast for 2010

MW1001_013 13MW1001 013 13 12/22/09 8:45:35 AM12/22/09 8:45:35 AM



MODERN EXECUTIVE

Among the hallmarks of a success-ful futures contract—a high level of

liquidity, the ability to hedge against vola-tility, and a well-regulated exchange that instills confidence—one particularly vital aspect is that its prices track physical pric-es in the actual marketplace. In this last instance, the London Metal Exchange’s (LME) plastics futures contract, which launched in May 2005, may now have truly arrived. Correspondence between LME prices and physical prices is quite high at this time, reaching 95%-98% in some cases, according to Robert Sheldon, LME’s plastics business manager.

In addition to higher correlation, par-ticularly with its North American prices, another significant impetus has pushed greater adoption of futures. “Volatility is really the reason why people would want to hedge,” Sheldon says, “and the high levels of volatility that we’ve seen since the middle of last year have really highlighted the need for companies to try to manage what is, effectively, an unknown future (excuse the pun). I think it’s really made clear the fact that there is a new phase of price movement and price volatility that the industry hasn’t had to deal with before.”

Sebastian Castelli, director commod-ity derivatives at LME ring-trading mem-ber Société Générale, has seen a similar spike in interest in futures from his customers. “The decision [by Société Générale] to support these markets was made based on real demand coming from the industry itself,” Castelli says. “After a bumpy start, where some radi-cal changes were made to the contracts, demand for risk-management solutions based on the LME sharply increased dur-ing the last 12 months.”

Sheldon verifies that heightened activ-ity, which rose relative to the incredible volatility seen in resin prices, became very evident in 2008 when key commodities

tested record highs and lows in the same calendar year. “We were already seeing greater interest from the first quarter onwards of [2008],” Sheldon says, “but since August/September of 2008, we’ve been seeing greater interest in trying to manage risk, and people seeing the LME as one of the avenues to do that.” Sheldon also says that in a time when money is tight, the ability for a processor to hedge a cost as large as materials great-ly promotes cash-flow management.

OEMs and brand owners

want a hedge

Sheldon says that at this point, the entire plastics value chain—from producers to distributors to processors to end users—is involved in the market, if at varying levels of participation. “We’re prob-ably a little lighter on the supply side,” Sheldon says, “but there are certainly producers actively promoting these tools to their customers.”

Where the LME is seeing greater inter-est, which could ultimately push broader adoption of the contracts and their pric-ing, is at the opposite end of the chain, from participants like retailers, OEMs, and brand owners—so-called consumers

or end users. “The consumers are push-ing back down the chain through their suppliers to the producers,” Sheldon says, “saying they want LME-based pric-ing to bring about stability.”

Société Générale’s Castelli says that progression is typical for a futures contract, with end users showing the most interest because they have the biggest exposure. Often buying raw materials at floating prices, they then sell finished goods at fixed prices over a long period of time.

“In the bullish and volatile environ-ment we have lived in over the last two years, [end users] suffered the most as their margins were squeezed,” Castelli explains. “Producers and converters who are buying and selling at floating prices suffer relatively less, but the rise in price volatility levels over the last few years has made most participants in the plas-tics value chain start seriously consider-ing risk-management tools.” MPW

By Tony Deligio Has plastics pricing started the shift from an at-times opaque index system to a

forward-looking transparent mechanism, with futures at its core?

Is now the time for plastic futures?

The Chicago Mercantile Exchange has its pit; the London Metal Exchange has the “ring.” Starting on Feb. 15, the LME will move price discovery to its LME Select elec-tronic platform instead of open outcry in the ring. This makes it easier for more LME members to be directly involved in price discovery and enables clients to access the market through the members’ own trading platforms.

Resin buying

Go online to read the complete article, including the lessons LME learned with its aluminum contracts and how they shape its work with plastics.

MW1001_014 14MW1001 014 14 12/22/09 8:46:20 AM12/22/09 8:46:20 AM



PASSION FOR INNOVATION

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IN OUR SEARCH FOR CLARITY WE’VE ALTERED OUR HEADS.

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PROCESSING TECHNOLOGY PROCESSING TRENDS


The company premiered a number of film production technology develop-

ments at its open house in late autumn. Christof Herschbach, division manager engineering–extru-sion equipment, told MPW at the event that top on the list of debuts is the company’s Optimex three-layer blown film line.

Despite extrusion trends towards five-, seven-, and nine-lay-er lines, processors still have a need for lines that produce standard, commodity web for such things as auto packaging applications, carrier bags, laminating films, as well as shrink and stretch wrap, says Herschbach. The new unit is designed to “keep it simple” and is intended for the processor who may not need or even want all the bells and whistles on the company’s modular, but more costly, Varex three-layer line. The Optimex is more off-the-shelf than Varex and offers just two three-layer die options in 160- to 315-mm (6- to 12-inch) or 250- to 400-mm (10- to 16-inch) configurations. Extruder com-binations are either 60/70/60.30 L/D or 60/90/60.30 L/D to produce film widths of 1300, 1600, or 1800 mm (51, 63, or 71 inches) or hood production of 2200 or 2600 mm (87 or 102 inches).

W&H sees the “Made in Germany” label on this unit as a big seller to pro-cessors who might typically opt for less

expensive yet also lower-quality competi-tive units. Herschbach admits there is, of course, the danger that processors who might ordinarily opt for a three-layer

Varex line will instead choose the cheaper Opti-mex, but he sees a market for both product lines. Unlike the company’s Basic blown film line introduced back in 1995, which represented a stripped-down machine for a

lower price, the Optimex, says Hersch-bach, is based on a standardized line of high-quality components said to guaran-tee cost-effective manufacturing.

Also new from the company is an inverted, water-cooled blown film extru-sion line, Aquarex, designed to nibble away at the cast film market. It likely won’t com-pete with cast lines on output, but W&H says it promises an amorphous end product with simi-lar or better gloss, haze levels, and mechanical proper-ties (such as dart-drop, puncture, and tear strength). Tem-pered, demineral-ized water quenches the bubble faster than traditional air-

cooled lines. This permits line height to be reduced, a factor expected to appeal to pro-cessors with low plant ceilings. The unit’s haul-off is stainless steel to protect against water corrosion.

Equipped with a Varex module pack-age of extruders, Maxicone die head, and Filmatic T winder, the line can handle three- to nine-layer processing. During the open house W&H was churning out three-layer polypropylene (PP) infusion bag film (20-μm soft PP/13-μm stiffer PP/50-μm soft PP), designed to substitute for similar appli-cations in PVC. All PP materials were from Danish compounder Melitek (Nr. Alslev).

The Aquarex’s output is suitable for sub-sequent upgrading on an MDO (machine direction orientation) stretching unit. W&H unveiled an MDO unit similar to one it first mentioned at K 2007. The new MDO line is said to improve web tensile strength and rigidity while providing better shrink performance. Bumping up gloss and clarity are additional advantages. It features 12 temperature-controlled rollers, 12 lay-on rollers, and two stretching nips. Stretch ratio is to a maximum of 1:12.

H e r s c h b a c h says film stretching offers the potential for processors to use less expensive resins to get a high-quality end product while reducing the use of expensive barrier materials such as nylon or ethylene vinyl alco-hol (EVOH). Lab

By Robert Colvin

EXTRUSION

Bevy of fi lm developments unleashed at in-house fair

First in line to show what visitors to this year’s K 2010 show can expect is

fi lm processing equipment maker Windmöller & Hölscher (W&H, Lengerich,

Germany).

The W&H MDO stretching unit for bar-rier film improves machine direction toughness and transparency of barrier films.

A total of five blown film lines produc-ing a wide line of films, including barri-er and biopolymer web, were featured during the open house.

A Filmex cast film line was demon-strated at W&H’s autumn open house with a 17-layer nano feedblock pro-ducing stretch film suitable for hand- or machine-wrap rolls.

MW1001_016 16MW1001 016 16 12/22/09 8:47:48 AM12/22/09 8:47:48 AM


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PROCESSING TRENDS



tests at W&H show that by offline stretch-ing a 40-μm barrier film, a processor can expect a 30% barrier improvement com-pared to the same film if it is not stretched.

Other innovations shown during the open house included an improved Opti-cool air ring system said to provide high cooling capacity thanks to its double-deck air ring. In winding, W&H was showing its Filmatic N winder used in conjunction with a three-layer Varex blown film line. It can handle films up to 3600 mm (102 inches). A vacuum cutter drum (VSK) enables roll start with no foldback as well as automatic shaft handling. On the cast film side, the company was producing a 17-layer stretch film on its Filmex cast line using eight extruders and a Cloeren (Orange, TX) 2700-mm die with encapsu-lation and a nano-layer feedblock. Nano layers permit combining stiff and soft resins to get improved puncture resistance, better stretch, and downgauging.

INJECTION MOLDING

Thin-walled IML proven for trans-parent PS cups

The next time you are in fl ight, pay

close attention to the polystyrene

cups used by many airlines. They

could soon contain inmold labels.

That, anyway, is now a possibility, as proved by a trio of companies at Fakuma last fall. Injection molding machine man-ufacturer Engel (Schwertberg, Austria),

moldmaker Glaroform (Näfels, Switzer-land), and Beck Automation (Oberengstrin-gen, Switzerland) teamed for a molding cell

Inmold labeling of PS cups, done with transparent PS labels.

THERMOFORMING

Thermoformer’s photovoltaic roof eliminates the need to pay peak power ratesBy Tony Deligio

Thermoforming company Plastic Package has completed the installation

of a specialized cylindrical solar panels array on its roof that will supply the

company with 323,649 kWh of power annually, enough to power 60 homes or

eliminate the need to purchase power during peak periods.

Already using recycled content, biobased materials, and overall less plastic through package redesign, thermoformer Plastic Package Inc. (Sacramento, CA) hopes to further build its “green” standing with the startup of a new 208-kW thin-film solar system that will power the production of 100% postconsumer recycled containers.

Rita Edwards, marketing manager with Premier Power, the company that installed the system, told MPW that Plastic Package took advantage of a tax-free cash grant to help fund the project. This was in lieu of an invest-ment tax credit from the federal govern-ment that is paid by the U.S. Treasury within 60 days of a system going live. In addition, the processor also receives a performance-based incentive from its local utility provider.

Edwards said the system will be used to offset the most expensive power Plas-tic Package buys by eliminating the need to pay peak electric rates. Such rates equate to about one-third of the proces-sor’s total electricity usage. The solar cells are designed to produce 323,649 kWh per year, which is roughly enough to power 60 homes. Edwards says return on investment for the technology is calculated to occur between four and six years.

Saying that plastics converting is not normally thought of as a “green business,” Jim Kaye, Plastic Package’s chairman, explained in a release that his company’s sustainability push is helping it make major strides toward a more environmentally friendly characteriza-tion by using recycled bottles and bio-based materials in its products. “Now that we’ve added solar, we want to let

the community and our clients know, so they can feel comfortable that when they use our packaging, they are part of the sustainable process,” he explained.

Using technology developed by a company called Solyndra (San Fran-cisco, CA) and installed by Premier Power Renewable Energy (El Dorado Hills, CA), Plastic Package says the 208-kW system installed on its roof will initially handle all of its peak demand and reduce its summer peak loads dur-ing the hottest part of the day.

The company also installed a white membrane roof, helping boost the effi-ciency of Solyndra’s cylindrical solar panels. Those panels are able to cap-ture sunlight over a 360° photovoltaic surface, with the technology targeting large, low-slope rooftops, common on commercial buildings.

Started in 1970, Plastic Package vac-uum- and pressure-forms packaging for industries ranging from food to medical, specializing in thin-gauge applications, with sheet thickness from 4-60 mils and draws to 6 inches deep.

These solar panels are able to capture sunlight over a 360° pho-tovoltaic surface, helping California thermoformer Plastic Package elimi-nate the purchase of electricity at peak rates.

MW1001_018 18MW1001 018 18 12/22/09 8:47:53 AM12/22/09 8:47:53 AM




processing PS cups that were inmold-labeled with PS labels.The benefits include offering a one-material package that’s

easily recycled, and also labels that can be as transparent as the cup (or other PS package). Difficult, though, is handling of the PS labels, which generally are thicker and more rigid than standard polyethylene or polypropylene inmold labels. For the molding cell at Fakuma, Italy’s Viappiani supplied the labels.

The cell included an Engel speed 180/55 running Glaro-form’s four-cavity mold at 3.3-second cycles. Shot weight was 41g, with each cup weighing 10.25g and having walls 0.5 mm thick. Using a side handling system, Beck Automation placed the labels and simultaneously removed the completed cups. MD

IMD parts with textile surfaces, no glueA German processor claims a novelty with its process for

thermoforming the semi-fi nished textile-covered parts,

which are then back injection molded to become arm-

rests, headliners, or other similar parts that could see use

in automotive applications. The fabric is laminated to its

backing fi lm in the thermoforming tool and with no need

for adhesives.

Officials at Reiss Kunststofftechnik GmbH (Tettnang, Ger-many) say the process is particularly suitable for processing of high-end parts with surfaces of textiles, foam, or fleece. Parts

can be formed with textile covering their entire sur-face or with only partial covering. A part’s geome-try and complexity is said not to hinder the process.

Direct lamination of the textile to a backing film is done in the tool as the film is thermoformed. After this, the semi-finished parts are punched and trimmed, and

then ready for use in inmold decoration (IMD). Reiss automates the handling, forming, and binding of the textile to the plastic sheet dur-ing thermoforming; it says this brings both economic and quality (haptic) advantages vs. other direct-lamination procedures.

Reiss has been processing the laminated thermoformed parts for some years, but only struck gold with use of these in IMD late last year, when the process was first used commercially for an auto-motive part. Further development has resulted in a metal surface finish on insert molded parts. New is that customers requiring a small to medium-sized order of parts can ask for enhancement of the insert film via an individual silk screening of the extruded film. The printed films are then suitable for thermoforming and can be back injection molded. With use of a transparent film, the printed design can be protected and, because it is on the back of the film, offers depth to the appearance of a part. MD

Reiss performs inmold decorating with fabric on automotive parts.

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PROCESSING TRENDS



BIOMATERIALS

Wheat straw and reclaimed carpet; Ford seeks greener paths to componentsFord is taking a two-pronged approach to greener car components: applying bio-based materials, including wheat

straw, and upping the amount of recycled content in its vehicles, turning postconsumer carpet into nylon cylinder

head covers.

In two announcements in November, automotive OEM Ford Motor Co. showed progress in its efforts to build a “sustain-able materials portfolio”—offering details first on nylon cylinder head covers recov-ered from postconsumer carpet, and sec-ond on storage bins that use wheat straw to fortify polypropylene (PP).

Automotive supplier Dana Holding Corp. (Maumee, OH) is molding the reclaimed nylon into cylinder-head cov-ers for Ford’s 3.0-liter Duratec engine, which is used in the 2010 Fusion and Escape. Called EcoLon, the nylon was created in conjunction with compound-er Wellman Engineering Resins (John-sonville, SC), which helped Dana test, develop, and supply the material. Well-man grinds used nylon carpeting into fiber and takes it back to its resin stage through a proprietary process.

In addition to resource reuse, the com-ponents boost Ford’s green cred through weight and thereby fuel savings. The nylon cylinder-head covers are nearly 20% lighter than aluminum diecast ver-sions. The components are part of a module-based sealing system Dana sup-plies for the Ford Fusion and Escape pro-grams that also includes the engine cover, gaskets, fasteners, baffle/air-oil separator, and isolators. Dana developed, tested, and

is manufacturing the cylinder head covers at its Composite Seal-ing Center in Paris, TN.

Ford applies postcon-sumer recycled resins from sources as disparate as deter-gent bottles, tires, and battery casings in a variety of compo-nents, including aerodynamic, splash and radiator air-deflector shields. Through these efforts, it estimates that between 25 million and 30 million lb of plastic are diverted from landfills.

According to Wellman, a number of automotive components currently in production utilize its EcoLon material, including fans, shrouds, interior/exterior door handles, radiator support and fascia brackets, and more. The cam covers are new this year, and radiator end tanks, carbon canisters/brackets, air-intake man-ifolds, and even oil pans utilizing EcoLon are currently under development.

The wheat-straw-reinforced third-row storage bins of the 2010 Ford Flex were developed by the automaker, academic researchers, and compounder A. Schulman (Akron, OH). The compos-ite material contains 20% wheat straw bio-filler, which reportedly allows the application to conserve 20,000 lb/year of petroleum by displacing plastic, while reducing annual carbon dioxide emis-sions by 30,000 lb.

Ellen Lee, technical expert in Ford’s plastics research group, told MPW that the natural fiber, which is supplied by Canadian firm Omtec (Mississauga, ON), is mixed with PP. The wheat straw composite was originally proposed to Ford by the University of Waterloo in Ontario as part of the Ontario BioCar Initiative, a multi-university effort among the universities of Waterloo, Guelph, Toronto, and Windsor. Lee said Omtec’s

proprietary process cleans, chops, and dries the wheat straw so that it can be compounded. The parts themselves are molded by International Automotive Components (IAC; Dearborn, MI).

A. Schulman’s lab was used to create a composition that not only was odor-less, but also met industry standards for thermal expansion and degradation, rigid-ity, moisture absorption, and fogging. Ford says that less than 18 months after the initial proposal was made to Ford’s Biomaterials Group, the wheat-straw-reinforced plastic was approved for the Flex, which is produced at Ford’s Oakville (ON) assembly complex. As for feedstock supply, the carmaker says wheat straw, which is the byproduct of growing and processing wheat, is typically discarded, with Ontario, for example, having 30 mil-lion tonnes available at any given time.

Lee says the company sees a great deal of potential for other applications utiliz-ing the filler due to wheat straw’s impact on mechanical properties, particularly its ability to offer a lightweight means to greater stiffness. Use of the composite in center console bins and trays, interior air registers and door trim panel compo-nents, and armrest liners is already under consideration by Ford.

The automaker’s sustainable materials portfolio also includes soy-based polyure-thane seat cushions, seatbacks, and head-liners; postindustrial recycled yarns for seat fabrics; and postconsumer recycled resins for underbody systems. TD

Auto supplier Dana Holding worked with compounder Wellman Engineering Resins to

develop a line of reclaimed nylon

that’s seeing use in underhood applications,

including these cylinder-head covers for

Ford’s 3.0-liter Duratec engine.

The third-row storage bins of the 2010 Ford Flex utilize a 20% wheat-straw-filled polypropylene, with the biomass increasing flexural modulus with a lim-ited addition to part mass.

MW1001_020 20MW1001 020 20 12/22/09 8:48:09 AM12/22/09 8:48:09 AM


PROCESSING TRENDS


PROCESSING TECHNOLOGY C O R P O R A T E P R O F I L E

M -

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MW1001_021 21MW1001 021 21 12/22/09 9:23:21 AM12/22/09 9:23:21 AM

http://www.macroeng.com



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MATERIAL THOUGHTSPROCESSING TECHNOLOGY

New developments

RESINS & COMPOUNDS

PolyOne reformulates healthcare solutionsThe Trilliant HC line of engineered compounds showcased at the Compamed show in Düsseldorf, Germany (Nov. 18-19) reflects the company’s efforts to focus on healthcare customers’ perfor-mance needs in challenging medical applications.

The Trilliant HC portfolio specifically addresses performance characteristics within the context of healthcare application and regulatory requirements (USP Class VI, ISO 10993, FDA), and is produced in accordance with the U.S. Food & Drug Administration’s current Good Manufacturing Practices (cGMP) for medical devices.

According to Stephen Schlegel, healthcare marketing manager, PolyOne Specialty Engineered Materials, in response to ques-tions from MPW, “The technology platforms in the Trilliant HC portfolio were developed previously for a broad range of applica-tions under several different brand names—Edgetek, Stat-Tech, Lubri-One, and Gravi-Tech, for example. But rather than newly marketing them for medical applications under the Trilliant HC brand, we have reformulated the compounds and the process steps so that we can provide a solution to healthcare customers’

critical requirements. The additional development includes using USP Class VI raw materials, FDA-compliant colorants and addi-tives, processing according to cGMP standards, and formulation lockdown. These steps mean that Trilliant HC materials are for-mulated differently and carry a ‘brand promise’ that correspond-ing non-HC grades do not.”

PolyOne says that among the critical performance areas target-ed by the line are X-ray shielding and radiopacity (high-specific-gravity compounds for lead replacement in X-ray shielding and weight balancing for surgical equipment, along with production of radiopaque materials); structural performance (high-strength and -stiffness compounds for metal substitution); electrical conductiv-ity (conductive and dissipative materials); thermal conductivity (insulating as well as conductive forms); high lubricity (reduction of force needed to move gears, pumps, switches, and buttons, and extension of device life); and flame retardance (available in various polymer systems, and in halogenated or nonhalogenated forms). Schlegel says that lots can be as small as 50 lb (22 kg). PolyOne, Avon Lake, OH, USA; www.polyone.com

Sticky stuff: Double the adhesion for TPE to HDPE Thermoplastic elastomer (TPE) compounds with double the adhesive strength of stan-dard TPEs when overmolded onto HDPE are new from this custom compounder.

The super-sticky grades will be avail-able in the company’s Medalist range of medical-grade elastomers, a reflection of the North American medical device mar-ket’s broad adoption of multishot injection molding as a way to eliminate assembly.

In a 180° peel adhesion test that com-pared HDPE samples overmolded with an HDPE-bonding Medalist TPE and samples with one of the company’s own standard hydrogenated styrenic block copolymer (HSBC) TPEs, the median adhesion, or peel strength, of the Medalist TPE was twice as great as that of the HSBC—42.086 lb per linear inch compared to 21.412. In addi-tion, the variation in peel strength among different test samples was less than half as great with Medalist as with HSBC.

According to the company, the new grades will not only provide stronger bonds to HDPE but also exhibit less variation in bond strength. The new com-

pounds officially debut at the MD&M West show next month in California. Teknor Apex, Pawtucket, RI, USA;

www.medalistmd.com

Plastics make moves in automotive, airline seatingRecent discussions make clear that engi-neering thermoplastics potentially could shake up the airline and automotive seating industries, as developments speed ahead in

a bid to replace more metal in these high-volume applications.

The most vivid example was displayed by plastics supplier BASF at the Fakuma

trade show last October. The company highlighted the use of a number of its materials in the new Opel Insignia OPC passenger car, including components in the vehicle’s front seats. Opel worked with Tier One supplier Recaro on the seating.

The seats are made of two of BASF’s Ultramid polyamide (PA) materials and its Neopolen expanded polypropylene (EPP) foam. BASF assisted with its Ultrasim simulation software in the design of the seat pan, backrest shell, and crossbar. The plastic parts are replacing steel frames.

The seat pan is molded of Ultramid B3ZG8, a stiff PA6 that ensures high ener-gy consumption values. Ultramid B3G10 SI was specified for the freestanding backrest shell as well as in the crossbar. The insert for the backrest shell is made of Neopolen P 9225 K (EPP), energy-absorbing foam that also covers edges and serves as a mod-ule carrier for motors and seat components such as the spinal column support.

Prototypes of the seats were shown back in October 2007 at the K trade show, with the same trio (Opel, Recaro, and BASF) involved.

One company working closely,

Opel’s Insignia seating makes use of BASF materials.

MW1001_022 22MW1001 022 22 12/22/09 9:01:49 AM12/22/09 9:01:49 AM

http://www.polyone.com

http://www.medalistmd.com



New developments


MATERIAL THOUGHTSC O R P O R A T E P R O F I L E

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New developmentsPROCESSING TECHNOLOGY

MATERIAL THOUGHTS

though not exclusively, with BASF, spe-cifically of late on development of fiber-reinforced polyethersulfone (PES) com-pounds, is PlastiComp (Winona, MN). One of PlastiComp’s customers recently developed airline seating using one of these PES-based compounds in which those parts passed the 16G crash test (other seating components not made of the fiber-reinforced PES did not pass). Airline seating still is largely metal. If some of the airline developments even-tually move into automotive seating, “it could be a game changer,” reckons Stan Verbraak, business development manager for PlastiComp Europe GmbH (Steenbergen, the Netherlands).

Verbraak says many of the company’s most recent developments have been with carbon-fiber-reinforced compounds. The price of these fibers has dropped as sup-ply has increased, making them a more viable economic option. Also, although glass is still offered in more tow sizes, carbon-fiber suppliers are expanding their product range.

Carbon fiber is more difficult to work with than glass or aramid, he notes, as the rovings are more difficult to open and impregnate. Poor carbon-fiber wet-out leaves loose fibers that can float in a facility and even short-circuit electrical systems. “So you need to get it [the com-pounding] right,” he notes.

Beyond seating, opportunities could appear in military applications, sports and leisure products, and more; replace-ment of metal EMI (electronic magnetic impulse) shielding also is possible.

At the IAA automotive trade show in September, Tier One supplier Johnson Controls (Boeblingen, Germany) revealed its new seating concept, the Synergy-Seat, which it hopes to bring to market in 2012. The seats, slimmer than stan-dard seating so that rear passengers have about 5 cm more legroom, make heavy use of recycled plastics, especially PP. The amount of PUR foam in the seats has been reduced and is based on bio-polyols. An MPW editor who sat in it said it seemed fine, but would need a long roadtrip to pass final judgment on its comfort. The seats weigh up to 30% less than comparable current ones.

BASF, Ludwigshafen, Germany,

www.basf.com; PlastiComp, Winona, MN,

USA, www.plasticomp.com

Long-term PC prospects remain positiveWhile the global recession might have dented polycarbonate (PC) demand sub-stantially, the impact was apparently less severe than on other materials, and long-term growth rates double that of GDP growth are expected, according to Günter Hilken, global head of the Bayer MaterialScience polycarbonates business.

Speaking to MPW via a video call from Guangzhou, China, where he was officiating at the inauguration of the company’s latest Color Competence and Design Center, Hilken recalled that in early 2009 the company mothballed 300,000 tonnes/year out of its global capacity of 1.3 million tonnes/year of PC capacity in North America and Europe. Since then, 100,000 tonnes/year have come back onstream. “We will bring the remainder back online in coming years as demand recovers,” he said.

Hilken adds that although demand from one of the key applications, opti-cal media, had peaked, “We expect only a moderate decline going forward, but solid growth in auto, IT, and electronics is anticipated. We definitely see continued growth at double the GDP growth rate.”

Commenting on the influence of pub-licly announced capacity additions from the likes of Sabic Innovative Plastics and the joint venture of Mitsubishi Chemical and Sinopec, Hilken said, “The global market is in the range of more than 3 million tonnes and growing. If you do the math, additional capacity can be absorbed within one to two years, but it does depend on individual actions of suppliers.”

While acknowledging that PC precur-sor bisphenol A (BPA) continues to have a prominent, negative profile in the main-stream press, Hilken said, “Very clearly, BPA is one of the most evaluated materi-als in the chemical industry. . . . Based on the principles of sound science, if you use products made from BPA, in the appro-priate way, they are safe to use.” Bayer MaterialScience, Leverkusen,

Germany, www.bayerbms.com

Rhodia introduces new materials for fuel containment jobsWith strict regulation of gasoline vapor emissions already in place, and even stricter rules for some applications set to take effect in 2011, polyamide sup-plier Rhodia bets new grades, part of its Technyl PA6 range, could be the answer to some processors’ concerns. Not only will the materials, as mono-layer fuel cans or small gas tanks for offroad vehi-cles and the like, satisfy stricter emissions limits, but they also can be readily pro-cessed on standard extrusion blowmold-ing machinery, with optimum results returned if a PA-specific screw is used.

Alan Dubin, business development manager in the supplier’s Cranbury, NJ

offices, says the as-yet unnamed materials also can be run on multilayer blowmold-ing machinery, and on existing molds.

Rhodia has offered similar materials outside North America for some time. The two new materials now being introduced to the North American market have been improved upon, especially in terms of their cold impact strength, which he said has been tested down to at least -20°C “and can probably go lower.” Scrap from blowmolding can be ground and reintro-duced into the process with no loss of barrier performance, he added. Experience in production applications and in indus-trial trials has shown no cycle time loss vs. high-density polyethylene.

Most jerry cans and small fuel tanks for motorcycles, lawn mowers, snowmo-biles, and other vehicles are made on mul-tilayer extrusion blowmolding machinery with between three and six layers used. Barrier layers of ethylene vinyl alcohol may be embedded between polyethylene

Processors of small fuel tanks such as this one can benefit from the new materials.

MW1001_024 24MW1001 024 24 12/22/09 9:01:59 AM12/22/09 9:01:59 AM

http://www.basf.com

http://www.plasticomp.com

http://www.bayerbms.com



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New developmentsPROCESSING TECHNOLOGY

MATERIAL THOUGHTS

layers, for instance, or fluorination can be used to provide a vapor barrier.

According to Rhodia, the two grades offer gasoline permeation performance on fuels like E10 that exceeds that of existing blowmolding materials like HDPE and PBT, and equals or exceeds multilayer material solutions. Rhodia is now in the final stages of product optimization and prototype testing on a number of new applications. Dubin says the supplier is still in the process of characterizing the new grades’ processing windows, but that results so far point to significantly wider processing windows than standard PA6.

Testing by an external North American lab and on customer parts has proven the ability of these materials to meet or even exceed permeation regulations from CARB (California Air Resources Board) and the U.S. EPA, meaning processors can satisfy permeation performance requirements without investing the $3 million-$6 million a multilayer blow-molding machine might cost. Processors also need not send parts out for fluorina-tion, another means of improving a part’s permeation performance. The materials may also be injection molded and can be hot plate and vibration welded.Rhodia, Cranbury, NJ, USA, www.rhodia.us

ADDITIVES & FILLERS

Songwon opens Middle East, Africa headquarters in BahrainKorean additive supplier Songwon Industrial Co. Ltd. has opened its Middle East and Africa headquarters in Bahrain, saying demand for its core products in the region is growing rapidly as it becomes “one of the most important markets for us,” according to Jongho Park, chairman and CEO of Songwon Industrial. The new regional facility, which also includes recently established local warehouses, will be led by Peter Fleming, who was named sales director Middle East and Africa effective Nov. 24. Fleming’s prior experience includes stints with Chemtura, where he led its Asia-Pacific business, as well as at Polysar, which was acquired by Bayer. Most recently Fleming worked as a management consultant at Oriental

Pacific Consulting PTE Ltd.The move into the region continues

the company’s efforts to expand its geo-graphic reach. In May 2009, it announced the creation of a new Japanese subsid-iary, Songwon Japan KK. Last January, the company added two new distributors in India: Jayvee Organics Private Ltd. and Qualichem Specialties Private Ltd. Songwon supplies antioxidants, light sta-bilizers, UV light absorbers, heat stabiliz-ers, plasticizers, lubricants, surface coating agents, polyurethane, alkyl phenols, biphe-nol, flocculants, and other chemicals. Songwon Industrial Co. Ltd., Ulsan,

South Korea, www.songwonind.com

Royal Blue pigments get that desired effectLumina Royal Blue and Lumina Royal Exterior Blue pigments are said to be of use in creating eye-catching effects for standard and high-end products. The

industrial version of the pigment can be used to visually enhance mobile devices, consumer electronics, appliances, sport-ing goods, and cosmetic and personal care packaging. The exterior version of the pigment is coated with the supplier’s chrome-free surface treatment (CFS) for improved durability in applications that require humidity resistance and excellent adhesion, such as automotive, coil, and powder coating applications.

Royal Blue is the first high-chromaticity effect pigment being launched as part of the company’s extension to its Lumina effect pigment portfolio. BASF, Florham Park, NJ, USA,

www.basf.us/luminaroyal

Bio-based modifi er provides FR, enhanced propertiesA group of patent-pending bio-based polymer modifiers reportedly enhance flame retardancy and add flexibility to otherwise rigid plastic products. Jemini 100 is the first in a line of nonhalo-gen flame-retardant additives that are RoHS, WEEE, and REACH compli-ant. Described as an “agri-derived liq-uid,” Jemini 100 modifiers are ignition resistant, thermally stable up to 280°C, and allow high loadings of fillers in compounds, many of which cannot be processed without the addition of a modifier.

Bill Hamilton of Jemini developer JJI Technologies told MPW that he couldn’t divulge the exact composition of Jemini 100, but said that more than 90% of it is derived from naturally occurring sub-stances. “While it is not a flame retardant itself, it does not add to the fuel load like other polymer modifiers, which are min-eral based,” Hamilton explains.

While mineral-based flame retardants can impact physical properties, making compounds brittle in some instances, Jemini 100 is said to improve elongation, flex modulus, and impact resistance due to its plasticizing effect. The Jemini line was originally developed as a way to impart superior flexibility to nonhalogen flame-retarded polypropylene wire and cables, without compromising the flame rating or other key properties.

Hamilton says the modifiers have thus far been used with PE and PP, with the liquid injected directly into the barrel, although JJI believes it could also be added at the feedthroat. Letdown ratios have ranged from 2%-5%, depending on the application and desired result, whether it’s process improvement or enhanced magnesium hydroxide flame-retardant performance.

Speaking to MPW in early November, Hamilton said Jemini 100 was at that time in the final stages of commercialization. Several companies were using it in scale-up situations involving highly filled materials such as magnesium hydroxide, he added. JJI Technologies, Painesville, OH, USA,

www.jji-technologies.com

Checkmate: New pigment outperforms current interference blue effect pigments.

MW1001_026 26MW1001 026 26 12/22/09 9:02:07 AM12/22/09 9:02:07 AM

http://www.rhodia.us

http://www.songwonind.com

http://www.basf.us/luminaroyal

http://www.jji-technologies.com


Cool TO-THE Touch™

MW1001_027 27MW1001 027 27 12/22/09 9:02:19 AM12/22/09 9:02:19 AM


http://www.tempco.com


PRODUCT WATCHPROCESSING TECHNOLOGY

INJECTION MOLDING

Mold-Masters introduces new hot runner temperature control at Euromold

Mold-Masters’ new TCUs debuted last month.

Mold-Masters launched its new TempMaster K-Series hot runner temperature controls at the Euro-Mold event (Dec. 2-5) in Frankfurt, Germany. Made possible in part by the company’s recent (Octo-ber 2009) acquisition of PMS Systems, the company describes the modular controls as compact and economical, especially for hot runners with a high number of temperature zones (up to 240).

Benefits include a proven design borne out by an installed base that’s been in the field for 10 years, plus an easy-access design for simplified service. The unit has a full-color 10.4-inch touch-screen control, which includes the latest software improvements. Dirk Echtermeyer, VP sales Europe at Mold-Masters, said this system will prove reliable and economical for any applications with 60 or more control zones. Mold-Masters Ltd., Georgetown, ON, Canada, www.moldmasters.com

Haitian shifts European HQ to Germany; Mercury’s risingAcknowledging that Germany is the conti-nent’s leading machinery market, and tak-ing a pronounced step into the backyard of its leading competitors, the world’s most prolific manufacturer of injection molding machinery is shifting its European HQ from Italy to Germany.

From June 2010, Haitian Europe will operate in Germany. The move is designed to help Haitian capture more of the Ger-man market, it says, with both its Haitian-brand machines as well as with its high-end Zhafir machinery, which is designed and assembled in Germany and wholly owned by Haitian and its management. This is something of a switch from the company’s announced strategy when it formed the Zhafir business unit; at that time it said the Zhafir presses most likely would be mar-keted only into Asia. But market interest prompted the change, say officials.

Zhafir Plastics Machinery is based in Ebermannsdorf, Germany. Haitian Europe will be based near Nuremberg, about two hours from Ebermannsdorf.

Haitian Europe is one of parent com-pany Haitian International’s five regional offices worldwide and for years has been based in Italy, a layover from when the company was a Haitian distributor owned by Italian management. Eric Taveau, gen-

eral manager of Haitian Europe, said, “After all, Germany is the largest and most significant European market. The advan-tages of positioning yourself as close as possible to the client are clear. By relocat-ing our place of business we are guarantee-ing optimum sales and service support.”

The Zhafir facility recently expanded its assembly capacity, and the parent company predicts its Venus series of all-electric machines will find favor in Europe’s molding community. Haitian already has a market-leading presence in Turkey, it says, and also sells well in some Eastern European countries. Zhafir expects to start assembly of a high-end all-electric molding machine, to be called the Mercury Series, at the site in Eber-mannsdorf this year. Haitian, Ningbo, China, www.haitian.com

Coinjection allows barrier caps, closures in one stepAfter hinting at the capability at NPE2009, coinjection technology spe-cialist Kortec Inc. will formally introduce a system to injection mold one-piece barrier caps and closures, potentially eliminating the need for closure manu-facturers to add butyl rubber discs or aluminum seals after molding of thermo-plastic closures Kortec says the caps and closures will better preserve food and beverage freshness and be less expensive

to produce than traditional two-piece closures.

Russell Bennett, VP of sales and mar-keting at Kortec, told MPW that at this point, the company has not undertaken any performance testing of the caps. “We really are at the early stages of our devel-opment work,” Bennett said, “but it is showing a lot of promise from the perspec-tive of capability to place the barrier in the

cap.” The current target markets for the technology are those served by two-piece closure systems, including plastic caps with aluminum heat-sealed foil. “That naturally leads us to sterilized or pasteur-ized foods and juices, vitamin-enriched beverages, and hot-filled foods,” Bennett said, adding that Kortec plans to work with cap makers to test efficacy. Initially,

These polypropylene caps feature a thin, coin-jected layer of EVOH for barrier, resulting in one-piece, one-step closures that could replace two-piece systems on the market today.

MW1001_028 28MW1001 028 28 12/29/09 9:55:25 AM12/29/09 9:55:25 AM

http://www.moldmasters.com

http://www.haitian.com


Place


Innovation & Optimization

plasticstoday.com/mpw MODERN PLASTICS WORLDWIDE • JANUARY 2010 29

EVOH has been applied as the barrier material, but others are on Kortec’s “radar for evaluation,” according to Bennett.

Kortec has branched out from its mul-tilayer, barrier polyethylene terephthalate (PET) preform business to extend its coin-jection technology to new markets, most recently thin-wall containers. In terms of the benefits of its latest offering, Kortec says multilayer caps, when used in con-junction with multilayer containers, extend the protection of product freshness across the entire package. Kortec also points out that packaging manufacturers can now look at Kortec as a single-source supplier that can provide the know-how and tech-nology for an entire barrier package.Kortec, Ipswich, MA, USA, www.kortec.com

EXTRUSION

New blown fi lm lines use a single air ringNew from this company, formed last summer through the fusion of Kiefel

Extrusion and Reifenhäuser’s blown film division, is a cooling concept for blown film extrusion lines based on a cooling ring that can be adjusted in height. The “counter cooling process” used for this air ring design means that the cooling

air is not only conveyed upward to the air lips, as is the case in conventional air rings, but also downward to an addi-tional air exit. As a result, only one air ring is needed to achieve stabilization of the film bubble.

The manufacturer says the end result includes not only higher output but—depending on the film structure—also improved film with regard to proper-ties such as transparency, gloss, and strength.

In related news, Reifenhäuser has completed its move to a new 10,000-ft2 North American headquarters in Dan-vers, MA, closing its previous office in Ipswich, MA, as well as newly acquired Kiefel Inc.’s Hampton, NH site. All but one Kiefel employee was transferred to the new building, which was renovated to accommodate the company. Kiefel Tech-nologies, the thermoforming division still held by Brückner, remains in Hampton. Reifenhäuser Kiefel Extrusion, Worms,

Germany; www.reifenhauser-kiefel.com

PET sheet system eliminates crystallization, dryingA polyethylene terephthalate (PET) sheet system precludes drying and provides

New cooling concept for blown film extrusion lines.

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Place


Innovation & OptimizationPRODUCT WATCH

crystallizing and then drying PET not only takes time, but also requires more energy, equipment, and plant space.

With the new technology, a blender combines postconsumer or industrial flake PET with virgin pellets from each component’s blender hopper in one step. Once blended, the resin is vacuum con-veyed to the feedthroat of the MRS extruder for processing without having to crystallize or dry the material.

Gneuss says the operations of its MRS extruder are comparable to the vent section of a single- or twin-screw extruder, in which melt-stream degassing occurs under precise vacuum control. In the case of the MRS, however, the degas-sing section is much larger, surpassing the surface exchange of a twin screw by 25 times and a single screw by 50 times, making it possible to remove moisture

and volatiles in the melt stream more efficiently.

Among the reported advantages to be gained, a more moderate vacuum level can be applied, enabling processors to use less expensive and easier-to-maintain vacuum equipment. In addition, the melt undergoes low shear and thermal stress; strong pressure buildup can eliminate the need for a gear pump; and overall less energy and space are required. FDA approval for processing PET bottle flakes is pending.

In addition to the blender loader hop-per and the MRS, the system includes a Gneuss RSFgenius melt-stream filter, an inline viscometer, an online X-ray gaug-ing system, a roll stand with independent roll-speed control, and a turret winder

Davis-Standard and Gneuss have joined forces and equipment for a PET sheet system that can extrude PET without having to crystallize and dry the material.

throughputs of 2000 lb (900 kg) per hour with lower overhead compared to nonvented extrusion processes. Utilizing Davis-Standard LLC (D-S; Pawcatuck, CT) engineering, project management, and winding with a Multi Rotation Sys-tem (MRS) extruder from Gneuss Inc., the collaborative result aims to replace single-screw extruders currently used to

process postconsumer or industrial flake PET.

In the conventional setup, moisture and volatiles must be removed through drying so that the polymer chain doesn’t break down during the melt phase. In order to be dried, the feedstock must be crystallized to withstand elevated tem-peratures. Gneuss and D-S point out that

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PRODUCT WATCHPROCESSING TECHNOLOGY

for 48-inch-diameter rolls weighing more than 5000 lb (2200 kg). The system utilizes D-S’s Epic closed-loop winder control. The system was engineered so that finished sheet can be fed directly into a thermoformer shaping trays for use with fresh food items like strawberries and tomatoes. Davis-Standard LLC, Pawcatuck, CT, USA, www.davis-standard.com;

Gneuss Inc., Matthews, NC, USA, www.gneuss.com

ASSEMBLY & JOINING

Multiple welds, one machine, and a happy carmakerAssembly and joining machinery manufacturer Forward Tech-nology has custom-built a unit for carmaker Ford that will be used to drive more efficient manufacturing on some of its soon-to-be-introduced full-size pickup trucks and SUVs. The project and machine developed for the OEM performs multiple welds on one machine, with a single operator, for a job previously requiring at least two of each.

The challenge was to help Ford integrate its HVAC duct-work into the vehicles’ consoles. Console size has increased as more amenities are integrated: cup holders, of course, but also coin slots for spare change, and large storage compart-ments, plus auxiliary power plugs (12V) and even, increas-ingly, power inverters (110V) for charging laptop computers or other equipment.

These consoles mount directly to the floor of a vehicle, which reduces the amount of floor space for airflow (heating and air conditioning) between the front and rear seating area. Forward Tech’s welding unit helped Ford to tap into the main HVAC unit in the dash and divert some of that air to the rear seating area through the console. The main console housing (a single molding) has channels molded in (passenger and driver side) that can be used for airflow. In order to channel the air properly, side panels are needed to enclose these channels. Since these ducts are on both the passenger and driver side of the console, this requires two separate welding operations.

Usually such an operation would require two welding units plus operators, or one welding unit with frequent tool changes. Forward Tech’s answer, says Doug Grabinger, project manager at the company, was to accommodate both welds simultaneously by designing a holding fixture for the main console housing that was positioned between the normal right- and left-hand jaws of the company’s vertical hot plate welder, Model VH-1445.

Explains Grabinger, “We then designed our typical nest-ing fixture for each side panel. Of course, this also required doubling up on the heat platen to be able to melt both sides of the console housing as well as both side panels. While this did require enlarging our standard welder to accommodate this large application, our in-house design, fabrication, and machining capabilities allow us to do that with ease. Ulti-mately, our customer ended up with one piece of equipment that requires one operator and produces one fully welded assembly per cycle.” Forward Technology, Cokato, MN, USA, www.forwardtech.com

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Make every pellet count

P rocessing machinery that is main-tained properly typically means decreased energy consumption,

increased productivity, better part qual-ity, and reduced downtime, giving the equipment greater availability. While few people think of machine maintenance as connected to “sustainable production,” a recent Aberdeen Group survey on the latter showed there is a direct correlation between how well a processor maintains his equipment and how well his company looks on its bottom line.

Operational efficiencies and overall costs to manufacture are tied closely to processing equip-ment. Paul Caprio, president of KraussMaffei (Florence, KY), which manufactures injection molding, extrusion, and polyure-thane processing machinery, says while KraussMaffei’s customers are concerned with energy consumption, the issue remains secondary to precision and output. “Even though energy sav-ings is a buzz word, quality parts and high productivity are what count on the manufacturing floor,” says Caprio. “Our customers are more attuned to making the machine run better.”

That said, Caprio adds that many customers are getting rid of older injection molding machines that tend to consume more energy—particularly hydraulics—and replacing them with new or newer machines that have more energy-efficient motors and pump systems.

Aberdeen Group’s Sustainable Produc-tion report revealed that its “Best-in-Class”

respondents are integrating sustainable features across their operations, “taking into consideration information related to energy, emissions, product, process, and employee safety—while optimizing pro-duction, maintenance, and engineering processes.” One example the report cited is including energy as one of the factors,

in addition to asset condition, to monitor when scheduling maintenance.

Who will handle your maintenance?

Machine maintenance always has been recognized as critical to quality parts and high productivity, but one thing that has changed, notes KraussMaffei’s Caprio, is the greater reliance on machine OEMs to supply that maintenance.

“There’s no question that over the past two years, the customer base is absolutely relying on the machine manu-facturer to handle the preventive mainte-nance on the equipment,” says Caprio. “Many processors have gotten so lean in laying people off and other cost-cutting

measures that they’re not doing machine maintenance in-house. One of the safety valves KraussMaffei offers is planned regular checkups, quarterly, semi-annu-ally, or annually.”

His firm is not alone; maintenance and service programs at most processing machinery manufacturing firms used to

play second fiddle to new equipment sales, but now often are almost as important as a source of revenue.

The transition at both processors and their suppliers is not entirely negative, since it gives each good reasons to pay closer attention to machine maintenance programs. That may be more important than ever now, notes Jimmy Langsdon, president of Columbia Machine Works Inc. (Columbia, TN), whose business specializes in machinery maintenance and repair, including injection molding machinery. He

notes that many times, especially when the economy is slow, companies get too lean.

“A lot of people make the mistake of cutting their maintenance budget when dollars get tight,” says Langsdon. “This is the worst thing you can do. Keeping your machinery in tip-top shape is the most important thing to your business.”

So important is it, in fact, that Scott Paulson, president of Paulson Training (Chester, CT), which offers courses for plastics processors, says his company has integrated machine maintenance into a variety of its injection molding training programs. “Maintenance is part of the efficiency equation. Maintenance affects downtime—which is a killer—so it’s

Lack of maintenance on processing equipment can cost a company a lot in energy,

processing inefficiencies, and downtime. The fl ip side, proactive maintenance, is almost

purely positive and can pay big dividends in the long run.

By Clare Goldsberry

‘Preventive’ is key to making a maintenance program work for you

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Make every pellet count

vitally important,” Paulson says. “We have a [training] pro-gram on machine maintenance and how efforts in this area can increase efficiency.”

Langsdon says the primary problem he sees with molding machine maintenance is the tendency to cut obvious corners. “We see a lot of molding machine failures due to poor lubrication, either a lack of lubrication or dirty lubricant,” he comments. “When we rebuild injection molding machines, common things we see are those bearings that are worn out due to lack of lubrication.”

Andy Routsis, president of A. Routsis Assoc. Inc. (Dracut, MA), which provides online plastics processing skills develop-ment and training, agrees with Langsdon’s comments and adds that the problem is persistent, even with all-electric machines. “All of them have toggle clamps,” notes Routsis. “We have a program for training machine maintenance personnel, and I cover the things that aren’t typically covered in the OEM’s maintenance manual.”

There’s definitely a huge payoff in maintaining processing machinery, and often it’s the areas that people don’t think about that can cause the biggest problems, like lubrication. “They don’t lubricate the machine properly—that’s always a prob-lem. Another big one is leveling, particularly in the larger-size presses like a 400-ton running an 8-second cycle—that machine is rockin’ and rollin’,” emphasizes Routsis, who recommends a bubble level or digital level, or better yet a laser level, to check the level of a machine and to re-level it periodically.

Simple steps make big differences

Another problem that arises on new equipment has to do with the laws regarding shipping a machine. “The machinery maker will do a run-off to test all the functions of the machine before shipping to make sure it’s running correctly,” explains Routsis. “One of the things it must do by law is empty the machine of oil. From the run-off, you get a lot of chafings from the rubber hoses—they fill up with oil—and it leaves the grit. Before refill-ing the machine with oil, pull the tank plate, wipe out the tank, and then swap out the filters. Most people figure it’s a new machine, so why do they have to do that? But it’s important.”

Routsis also recommends checking the platens for simple flatness, something that he finds rarely done. “Take a 12-inch or 36-inch steel ruler and lay it across the stationary platen by the locating ring,” he suggests. “If you see a gap between the platen and ruler, you know it’s not flat.”

Additionally, he adds, check the movable platen sup-ports. The reinforcements on the platens should be cast, not machined. “You want the give,” says Routsis. “We talk all about these things in the maintenance training course. It’s always something basic that fails.” MPW

plasticstoday.com/mpwWhen is the best time to perform PM? Is it worth it to do an efficiency audit? Find answers to these questions and more as this article continues at plasticstoday.com/mpw.

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Business, Strategies & MarketsA S I A - P A C I F I C

WORLD TOUR

High on the list of moves made is the East Coast Economic Region

(ECER) located along the relatively underdeveloped eastern shore of penin-sular Malaysia. The initiative’s objective is to create 560,000 new jobs via cumu-lative investment of around $35.5 billion through 2020. A fair proportion of this investment will be in manufacturing, and plastics processing is not missing out.

Natural gas resources in the area attracted raw material suppliers to the region even before ECER was mooted, and already polyethylene, PVC, acrylic, polyacetal, polyester, and PBT are avail-able locally from Malaysian and global suppliers such as joint venture Toray BASF (Kuantan), Japan’s Polyplastics (Tokyo), and Eastman Chemical (King-sport, TN).

Next on the agenda is further devel-opment of the Kertih Polymer Park.

Phase I of the park spans an area of 90 hectares, with Phase II set to occu-py another 50 hectares. Eventually, the devel-opers are targeting rev-enue of approximately $600 million and cre-ating 7000 jobs at the park. Investing compa-nies can enjoy incen-tives such as a 10-year income tax exemption, and Mohd Fadzil Abdul Latif, branding manager at park developer ECER Development Council, says, “Processors from all over the world can enjoy these benefits. We welcome any investment from abroad.” Further, processors will not be without technical support, with leading local resin supplier Petronas

(Kuala Lumpur) locating an R&D and technology center within the park.

One of the first investors in the park was Malaysian wire and cable producer Hi Essence Cable (Puchong), which has invested around $25 million in a manu-

Sensing an urgent need to climb the technology tree amid intense competition

from its ASEAN neighbors and other Asian countries, Malaysia has unveiled a

series of initiatives to expand investment and attract more advanced manufac-

turing activity.

By Stephen Moore

Malaysia seeks advanced manufacturing role

Prestige’s Tan (right) with director Travis Tan: Medical is a promising segment for plastics in Malaysia.

More stretch capacity for Malaysia Malaysia’s Evermal Industry (Johor) has taken delivery of its second stretch fi lm line,

this time a state-of-the-art 650-m/min unit from SML Extrusion Technology (Lenzing,

Austria). The new line employs a W4000 turret winder for winding of machine rolls

onto 3-inch shafts up to a roll diameter of 420 mm. The majority (80%) of Evermal’s

production is machine rolls, whereas an estimated 50% of Malaysian stretch fi lm pro-

duction is hand rolled. The line also features an inline recoStar basic repelletizing unit

from Starlinger (Vienna).

Gerald Ausweger, chief representative of SML’s Far East Regional Office, says

the stretch fi lm line processes 1400 kg gross of polyethylene every hour at 17 μm

fi lm gauge, of which 250 kg is recovered scrap that is fed back in its entirety with no adverse effect on fi nal fi lm properties. “You

could even use 80% recycled material in the three core layers with no gelling occurring,” he says. Virgin material would only be

required for the outer layers.

Speaking at the recent M-Plas show, Ausweger also revealed that SML systems were now capable of producing 2-inch hand

rolls with gauge down to 8 μm. Standard gauge is 14-15 μm. The 8-μm stretch fi lm typically incorporates a 40% core layer, two

20% sandwich layers, a 10% slip layer, and a 10% cling layer. Production speed is up to 450 m/min.

SML’s Ausweger: Stretch film contin-ues on its downgauging trend.

MW1001_038 38MW1001 038 38 12/22/09 9:07:26 AM12/22/09 9:07:26 AM


Let be your guide.

First, MPW provides our publication in a digitally delivered format so youcan receive it right at your computer desktop and help save a tree. Just visitplasticstoday.com/subscribe to change to digital delivery.

Second, we’ve launched a new e-newsletter, Greening of an Industry, to helpplastics industry professionals keep up with the myriad of subjects relatedto sustainability.

Just visit plasticstoday.com/newsletters to subscribe.

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Business, Strategies & MarketsA S I A - P A C I F I C

WORLD TOUR

facturing facility. Latenfield Pipe Indus-tries, meanwhile, has ploughed close to $12 million into its PVC pipe processing operation there, while FMD Polypipes Industry is spending $6 million on its pipe extrusion operation.

ECER also plans to develop the Pekan Automotive Industrial Park, positioning it as a manufacturing, assembly, and R&D hub. Around $1.2 billion in invest-ment is targeted. Malaysia recently par-tially liberalized its automotive sector. It now allows 100% foreign ownership and offers a 10-year tax break, training and research grants, and excise duty exemption for assemblers and manufac-turers of hybrid and electric vehicles and components. The luxury vehicle segment has also been liberalized.

Malaysia is also aggressively develop-ing South Johor’s Iskandar zone, which is home to various manufacturing and petrochemicals activities. The govern-ment expects it to create 800,000 jobs and attract around $100 billion in invest-ment over 25 years. Key economic activi-ties currently found in the zone include general manufacturing, chemicals and chemical products. Besides development of manufacturing, investment in infra-structure there is set to boost demand for plastics processing.

Local electronics expertise

Electronics also remains a strong com-ponent of Malaysia’s manufacturing sector, contributing significantly to the country’s manufacturing output (30%), exports (56%), and employment (29%). “There is still a lot of commitment to the electronic and electrical indus-

try in Malaysia,” says Tan Wee Ming, managing director of processor Prestige Dynamics Industries (Penang). “While we are in fact a quite mature industry, we can handle sophisticated production and fast turnarounds with our expertise built up over many years that may not be possible in China.” In Tan’s view, Malaysia can provide low volumes, speed, and high technology, while China

is better suited to high volumes.Prestige Dynamics is also a strong

player in the power tool segment, where its particular forté is two-shot molding of housings. “We work together with one of our key customers to develop tool-ing,” says Tan. Not resting on its laurels though, Prestige Dynamics is increasing its role in the medical segment, which currently accounts for 10% of turnover.

For example, the processor currently ships around 200 oxygen dispenser hous-ings per month to a medical device man-ufacturer in Europe. “We can compete with local [European] molders because we can build the tool for half the price,” says Tan. Prestige is also leveraging its two-shot molding prowess in the medi-cal sector, but standards are much more stringent than electronics or power tools. “You have to guarantee 20 years of color stability, for example,” says Tan. His company, and others in the country, say they welcome the challenges. MPW

Riches from recycled resin in a tough economic environment

Amid a challenging business environment in Malaysia, fi lm processors are turn-

ing to advanced recycling solutions for in-house scrap to improve their bottom

lines, according to NGR (Next Genera-

tion Recyclingmaschinen GmbH; Feld-

kirchen, Austria). Having just opened

a regional office in the ASEAN nation,

chief representative Walter Schmedler

says local fi lm processors are look-

ing for every available opportunity to

trim costs, and this means utilizing

in-house scrap to the fullest. Leading

Malaysian stretch fi lm producers Thong

Guan Industries (Ipoh) and BP Plastics

(Johor) are among users of NGR’s recy-

cling machines, as are blown fi lm processing giants Klang Hock Plastic Industries

(Selangor) and Daibochi Plastic (Melaka).

Speaking at the recent M-Plas show in Kuala Lumpur, Malaysia, Schmedler said,

“We installed our fi rst recycling machine in Malaysia fi ve years ago, and since then

our user base has expanded and we’ve been getting repeat orders.” The E:Gran

machine, with capacity of 10-50 kg/hr, is popular for edge trim recycling, while higher

recycling capacities are provided by the vendor’s A:Gran and S:Gran machines.

“With quality of the product sufficient to go straight back into high-end fi lm prod-

ucts, processors are fi nding they can pay back their investment in 12 months,” noted

Schmedler. “Without our systems, the best they could hope for was to offload the trim

as bargain basement scrap.”

NGR’s Schmedler says Malaysia pro-cessors appreciate the cost-saving potential of high-quality recyclate.

Kertih Polymer Park targets investment globally.

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Business, Strategies & MarketsE U R O P E

WORLD TOUR

Hidden in the new material hoopla is that much of the real bioplastics

excitement surrounds materials that are just “greener” versions of polyolefi ns,

polyamides, or other thermoplastics. OEMs and brand owners are making clear

they intend to specify these materials.

It is difficult for many processors to get excited about bioplastics, which many

have filed away as a group of materials little is known about except their price (high) and their properties (water and heat resistance? Set your sights low). Oh yes, and limited capacity means they are tough to find even if you do want them.

But negative perceptions are bound to dissipate in the next two to five years as vast supply enters the market, as the body of knowledge on processing these materi-als increases, and as additives suppliers and compounders busily work on improv-ing their mechanical properties. Based on recent announcements, the European Bio-plastics trade group estimates production capacity of bio-based plastics will increase from 360,000 tonnes in 2007 to about 2.3 million tonnes by 2013.

The pace of development also is so rapid that a processor who tested, for example, polylactic acid (PLA) just two years ago, and was disappointed, probably needs to revisit the material. “If you’ve tried these materials before and failed, try again,” urged Andy Sweetman, global marketing manager of sustainable technol-ogies at Innovia Films, a €400 million/year (about $600 million/year) films processor,

as well as chair-man of the Euro-pean Bioplastics’ board of direc-tors. He made his comments at the European Bioplastics con-ference in Ber-lin, Germany in November. The conference drew a global audience of 380, a significant feat in a recession where conference and trade show attendance has plunged.

Improve what’s already there

But even for processors who understand-ably get lost in the bioplastics’ acronym soup—PLA, PHB, PHA, and all of the rest—there is little need to wait for some of the most interesting developments, which focus not on developing new materials but instead on lessening the environmen-tal impact of the materials that processors and their customers already purchase and use, such as polyethylene, polypropylene, and polyamide. Also speaking at the con-

ference was Hans-Josef Endres, a professor at the University of Applied Sciences & Arts in Han-nover, Germany, who said indus-try’s research and development efforts should therefore focus on “improving

what’s now available,” specifically citing “the Braskem approach.”

Braskem, the giant Brazilian plastics and chemicals supplier, is Latin America’s largest plastics supplier and a fast-growing force on the global stage. As reported previ-ously, the supplier is hard at work improv-ing the process to derive ethanol from sugarcane; ethanol, converted to ethylene, forms the basis for polyethylene (PE).

Rui Chemmes, director of Braskem’s PE operations, also speaking in Berlin, said the ethanol-based polyethylene has exactly the same characteristics as PE derived from petroleum. Plus, he added, it is nine times as efficient to derive ethanol from sugarcane as from corn, and 4.5 times as efficient compared to ethanol derived from sugar beets.

“Sugarcane is a 4m-high plant” that grows quickly and with little assistance, he explained. Other environmental ben-efits include its work as “a real vacuum cleaner of carbon dioxide.” One pound of petroleum-based PE releases 2.5 kg of carbon dioxide to the atmosphere, he said, whereas the same amount of

By Matt Defosse

Bioplastics: Coming to an RFQ near you

Capacity is expected to triple in the next three years.

The European Bioplastics event drew almost 400 attendees, including representatives of major OEMs and brand owners.

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Business, Strategies & MarketsE U R O P E

WORLD TOUR

sugarcane-based PE captures that same amount of the gas.

Chemmes said the supplier has devel-oped low-density, linear low-density, and high-density polyethylene grades from the ethanol, and even a polypropylene, though this last as yet has only been achieved on a lab scale. This year the company will start a 200,000-tonnes/year-capacity plant for PE, he said, add-ing quickly that this smaller facility is “just a start.” According to Chemmes, the next facility will be capable of output of 1 million tonnes or more annually. “We want to be mainstream” with these materials, not a niche, he stated.

Soon after the event, carton-creating giant Tetra Pak tasked Braskem to supply it with high-density polyethylene (HDPE) derived from sugarcane for closure mold-ing. Starting next year, Braskem will begin supplying Tetra Pak with 5000 tonnes/year of the “green” HDPE, a volume Tetra Pak says is a bit more than 5% of its annual HDPE requirement. Linda Bernier, direc-tor of corporate PR at Tetra Pak, told MPW that the company injection molds some of its closures but also buys them on the market, and has not yet decided who will process the Braskem material.

That beverage company in Atlanta

Five thousand tonnes is barely a drop in the plastics market ocean, but there is a huge consumer-driven wave en route that will drive demand much higher, very quickly, predicted Cees van Dongen, a senior mem-

ber of The Coca-Cola Co.’s global Environ-ment, Health & Safety Council. In a panel discussion at the conference, he elaborated, saying, “We expect a big wave. We think commodity plastics will be substantially replaced by bioplastics,” with consumers driving the shift. While acknowledging that change already is swift, “The wave will increase in both height and speed” in the coming years, he added.

Probably no brand owner will make as big a splash as Coke, which, like Tetra Pak, intends to start by replacing some of its petroleum-based thermoplastics with plastics sourced from renewable materi-als. In a project that entered the market in the past weeks, the beverage bottling giant began a limited trial in western North America and Denmark, replacing up to 30% of each bottle’s polyethylene terephthalate (PET) with material sourced from renewable resources.

Van Dongen said the program is the first along a path to greater sustainability. In the U.S., about 30% of the bottles’ weight will be made from mono-ethylene glycol (MEG) derived from sugarcane and molasses; in Denmark the percent-age of plant-derived MEG will be half that but those bottles will include 50% postconsumer recyclate (PCR). He said there is not enough PCR-PET available in the western United States for use in these bottles, as most of the PET collected in that part of the U.S. is exported to Asia.

MEG and purified terephthalic acid (PTA) are the building blocks of PET.

Ethanol derived from sugarcane will be fermented to create the bio-MEG, he explained. According to Coke, the Plant-Bottles will be the first beverage bottles that include content derived from renew-able resources that still can be recycled in standard PET recycling streams.

The beverage bottler’s goal is to use 2 billion of the bottles by the end of 2010, in a variety of products but including its flagship Coca-Cola band. Future launch-es are being planned in other markets, including Brazil, Japan, and Mexico, and for China’s Shanghai Expo in 2010.

Based on total tonnage, about 55% of Coke’s packaging is PET, Dongen said. Because PET bottles’ design has already been nearly optimized to limit weight, and because the material’s manufacture is the most negative aspect of the material from an environmental viewpoint, the best way to limit the environmental impact of PET bottles is to replace the PET, he said. The PlantBottles are indistinguishable from standard PET bottles, he added. The goal, he said, is to develop feedstocks suitable for 100% bio-based PET.

However, Dongen said Coke sees little future for the current crop of biode-gradable bioplastics as primary beverage packaging. “For the next five to 10 years, we don’t see biodegradable plastics as an option for our bottles,” though the com-pany is looking closely at their use for sec-ondary and tertiary packaging, he said.

What do all of these developments mean for processors? Change can be con-fusing, but it also is notorious for creating opportunities. The examples above are in packaging, but in fact just as much development is under way in increasing the renewably resourced material content in plastics destined for durable goods. It seems a bright future awaits processors able to track and take advantage of the many developments. MPW

Use the search tool at plasticstoday.com/mpw, keyword “bioplastics,” to find dozens of recent articles, includ-ing more on that Coke project, on the conference, and on a Korean team’s recent announcement of an improved means to produce PLA.

Innovia’s Andy Sweetman: If you’ve tried bioplastics before but were disappointed, it’s time to try again.


MW1001_044 44MW1001 044 44 12/22/09 9:10:22 AM12/22/09 9:10:22 AM






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COUNTDOWNTOK

It seems a bit early to think about a trade show taking place this October, but as

persons who have attended know, the K is not just any trade show. Without a plan—if you invest in plane fare and a hotel room but not in planning your time on the show floor—you will be lost. With at least some semblance of a plan, you have good odds of finding and learning about the leading-edge developments that will define the industry for the coming decade and separate processors in the black from those in the red.

That is where we want to help. Our Countdown to K series is designed to help with your planning to make the most of your atten-dance both at the show and even around town (the downtown isn’t sometimes called “the world’s longest bar” for nothing). In this series, starting now and extending to our October issue, we’ll offer you tips based on our years of attending the show. We’ll throw out questions you prob-ably should have answered in your head before you make the trip. And, of course, we’ll highlight the technology you can

expect to find there.

S u c c e s s in the plas-tics process-ing industry depends in large part on two pillars: making and developing good contacts, and being able to apply technology. The

K show has proven time and again a great place to find and befriend the former and to learn about the latter.

Finally, and very openly, we’ll build some excitement around the event and encour-age your attendance at it. Though we like to believe that reading our global cov-erage—in our daily, weekly, and monthly digital newslet-ters or in our monthly flag-ship magazine—is enough to keep you up-to-date, we

know that seeing is believing. You will never see more of the best of this industry in one place than at the K. MPW

Dateline: Oct. 27, 2010Düsseldorf, Germany

Basic K 2010 facts

Who: More than 200,000 attendees and 3000-plus exhibitors

What: World’s largest plastics trade show

When: Oct. 27-Nov. 3

Where: Düsseldorf, Germany

Why: Soak up more plastics-related info in one place at one time than is possible anywhere else

More info: Go to www.k-online.de

MPW: Official publisher of the K 2010 Show Daily newspaper

9 months

MW1001_046 46MW1001 046 46 12/22/09 9:11:10 AM12/22/09 9:11:10 AM

http://www.k-online.de


CLASSIFIED ADVERTISINGFor information Contact: Cheryl Ackerman (516) 496-8891 • Fax (516) 496-8762 • [email protected]


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MW1001_047 47MW1001 047 47 12/22/09 11:21:20 AM12/22/09 11:21:20 AM




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Professional Services

TIME-CRITICAL CONFIDENTIAL PROBLEM SOLVING SINCE 1973• CHEMICAL ANALYSES

AND CHARACTERIZATION

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• PLASTICS

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Machinery for Sale/Wanted

$2,000,000 Inventory

Call Ed Makepeace

Ph: 603-889-7233 (USA) [email protected]: 603-889-7300 (USA) 100 MACHINES IN STOCK

Injection MoldersBlow Molders

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• Lenticular Design & Cylinder Engraving •Cylindrical Extrusion/Embossing/Casting

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Concave/Convex, Faux, etc. • 1-5 Multi AxisCNC Diamond Turn/Mill – 42” OD x 177”

Email: [email protected] /www.JacoTech.comPhone: 630-467-0900 / Fax: 630-467-0901105 E. Irving Park Rd. Itasca, Illinois 60143 USA

Jacobsen Lenticular Tool & CylinderEngraving Technologies (JacoTech)

Modern Plastics WorldwideClassified Advertising

Are you looking to get worldwide recognition and

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We give you the best bang for yourbuck.

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516 496 8891

Buying and Selling Quality,Used Plastics Machinery

www.hunterplastics.com100 Pratts Junction Rd., Sterling, MA 01564

Ph: 978-422-8222Fax: 978-422-8223

Solid Waste Management ProductsREQUIRED pre-owned blow/injection

moulds in excellent working condition forsolid waste containers, trash cans, bins, etc

from 200 ltr - 3200 ltr capacity.

Also required suitable blow/injection mould-ing machines to operate the above moulds.

Contact : email : [email protected]

MW1001_048 48MW1001 048 48 12/22/09 11:21:24 AM12/22/09 11:21:24 AM


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ADVERTISER INDEXCALENDAR OF EVENTS COMPANY PAGE

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Adsale Exhibition Services Ltd. 36Arburg GmbH + Co KG BCBattenfeld Extrusionstechnik GmbH 43, IBCCanon Communications LLC Trade Events 30Exair Corp. 5, 23Fong Kee International Machinery Co. Ltd. 37InnoPlast Solutions Inc. 33Korea E+EX Inc. 6Leistritz Extrusionstechnik GmbH 35Macro Engineering & Technology Inc. 21Messe Düsseldorf GmbH 32Reifenhäuser GmbH & Co. KG Maschinenfabrik 41Struktol Co. of America 45Technovel Corp. 11Tempco Electric Heater Corp. 27Univar USA IFC, 25, 29Vecoplan LLC 31Weima America Inc. 17Windmöller & Hölscher 15Zambello Riduttori Group 19

Extrusion Monthly and e-Weekly:Free newsletters from MPW to help you get the

information your business needs.

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MODERN PLASTICS WORLDWIDEUPCOMING DIRECTORIES

MEDICAL

February 2010

Contact Iris TopelTel: +1 718-478-8104 Fax: +1 718-478-8105

[email protected]

JANUARY7-10 International CES (Consumer Electronics Show), Las Vegas, NV Consumer Electronics Assn. | +1 301-694-5243 [email protected]; www.cesweb.org

9-12 PlexpoIndia 2010: 5th National Plastics & Packaging Exhibition

Ahmedabad, Gujarat, India Gujarat State Plastics Manufacturers Assn. +91 79-2657-9204 [email protected]; www.plexpoindia.com

12-14 Automotive News World Congress, Detroit, MI Automotive News | +1 313-446-0326 [email protected]; www.autonews.com

19-22 International Builders Show, Las Vegas, NV National Assn. of Home Builders | +1 847-940-2393 [email protected]; www.buildersshow.com

26-29 Interplastica, Moscow, Russia Messe Düsseldorf North America | +1 312-781-5180 [email protected]; www.mdna.com

27-28 Managing SVHCs under REACH and

Understanding & Implementing CLP, Brussels, Belgium iSmithers | +44 1939-250383 [email protected]; www.ismithers.net/conferences

FEBRUARY1-2 BIOMEDevice Europe, Pharmapack, Paris, France Canon Communications LLC +1 310-445-4200 www.canontradeshows.com

9-11 Plastec West, MD&M West, Electronics West,

Pacific Design & Manufacturing, WestPack, ATX West,

Green Manufacturing Expo West, Anaheim, CA Canon Communications LLC +1 310-445-4200 www.canontradeshows.com

16-18 Thermoplastic Concentrates 2010, Phoenix, AZ Applied Market Information LLC +1 610-478-0800 [email protected]; www.amiplastics-na.com

21-24 International Polyolefins Conference 2010, Houston, TX Society of Plastics Engineers +1 713-829-9226 [email protected]; www.spe-stx.org/polyolefinsconference.htm

MARCH2-3 Plastics Recycling Conference 2010, Austin, TX Resource Recycling Inc. | +1 503-223-1305, ext. 118 [email protected]; www.plasticsrecycling.com

5-9 Taipei Plas, Taipei, Taiwan Taiwan External Trade Development Council +866 2-2725-5200 www.taipeiplas.com.tw

8-10 Global Plastics Environmental Conference (GPEC) 2010

Orlando, FL Society of Plastics Engineers +1 203-740-5452 www.4spe.org

8-10 Plastics Modification via Additives, Compounding & Coatings

Atlanta, GA InnoPlast Solutions +1 973-446-9531 www.innoplastsolutions.com

14-16 International Home & Housewares Show 2010, Chicago, IL International Housewares Assn. +1 847-692-0100 www.housewares.org

APRIL19-22 Chinaplas 2010, Shanghai, China Adsale Exhibition Services Ltd. | +852 2516-3374 www.chinaplasonline.com

26-28 Emerging Trends in Plastics Packaging, Atlanta, GA InnoPlast Solutions +1 973-446-9531 www.innoplastsolutions.com

plasticstoday.com/mpwSeminars, symposiums, webinars—there’s more at plasticstoday.com/mpw. Just click on Events.

MW1001_0TXT49 TXT49MW1001 0TXT49 TXT49 12/30/09 1:31:16 PM12/30/09 1:31:16 PM




http://www.cesweb.org


http://www.plexpoindia.com


http://www.autonews.com


http://www.buildersshow.com


http://www.mdna.com


http://www.ismithers.net/conferences

http://www.canontradeshows.com

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http://www.amiplastics-na.com


http://www.spe-stx.org/polyolefinsconference.htm


http://www.plasticsrecycling.com

http://www.taipeiplas.com.tw

http://www.4spe.org


http://www.housewares.org

http://www.chinaplasonline.com





http://plasticstoday.com/newsletters


SPOTLIGHT

Liew goes further in classifying his

company as a precision engineer-

ing fi rm that just happens to be in

plastics, rather than a processor of

precision plastic components. “Nowa-

days, a customer typically wants to

reduce its number of vendors, so we

try to do as much as we can, includ-

ing design and fabrication of injection

molds, and qualifying and sourcing

metal or rubber components for sub-

sequent assembly,” he explains. “We

get involved deeply with nonplastic

components, and we have to ensure

we have a capable supply network.”

In-house, Polyparts operates 25 injec-tion machines from Arburg, Demag, Fanuc, and Nissei. All are equipped with hardened screws and barrels for the run-ning of engineering plastics containing up to 40% glass fiber. Secondary processes handled include cleanroom spray paint-ing, pad printing, ultrasonic cleaning and welding, and assembly. Key indus-tries served include consumer electronics, industrial electronic components, office automation, computer peripherals, and automotive electronics.

Liew remains sanguine regarding competition from China, and this despite Malaysia’s electronics industry having suf-fered at the hands of OEMs that have

shifted manufactur-ing facilities to the Mainland. “China probably has com-panies with similar

capabilities to us, but they are just as expensive,” he says. “Utility and logistics costs are higher, and the [local currency] Renminbi is also strong,” he also notes. “Chinese processors are also losing a lot of their government incentives, coming to be subject to more regulations, and they now face minimum wage requirements.”

Backing up his claims with substance, Liew says several European clients, includ-ing manufacturers of customized telecom-munications equipment, solar and heating controls, and micromotors, have desig-nated Polyparts as their Asia-Pacific supply hub for specialized components that are shipped to Thailand, Singapore, China, and sometimes even the United States. “They view us as a strategic vendor with a good logistics advantage,” he says.

Liew notes that multinational custom-ers, wherever they are in the world, want to find suppliers who can delivery consis-tently, and not just pass the initial qualifica-tion test. Customers also want reassurance that if they consign a mold for low-volume runs, it will be looked after. “We handle runs of 500 or 1000 as long as it fits in with our core capabilities,” says Liew.

The Malaysian business culture is also a plus, according to Liew, who says, “Our business culture is close to what Western companies are accustomed to,

and this is a major trust builder.”Liew says 100% of Polyparts’ produc-

tion ends up offshore, either as direct exports or indirect exports comprising part of finished product exports. This presents challenges in ensuring that part quality is not compromised in any way. “We have to make our components as durable as pos-sible and ensure that we have full control over our processes,” he says. “We cannot afford to have problems when the part is halfway around the world.”

Polyparts has never considered ventur-ing overseas in search of lower labor costs and a broader footprint. “What happens when China becomes more costly, which will happen?” he asks. “Do you then move to India, or Vietnam, or Africa, or South America? You will always be on the move!” Liew explains that his company’s “global footprint” entails exhibiting at the K and Hannover shows rather than hav-ing a factory footprint. “If your priority is chasing low labor costs, you lose sight of your real competencies,” he says.

Polyparts prefers to look inwards to find its true capabilities, and recognizes the need to continually innovate in terms of technology, quality management sys-tems, and business processes. Says Liew, “My definition of innovation is more than just technical capabilities. It also includes the way you go about doing business. It’s about building confidence with your customers.” MPW

Stephen Moore • [email protected]

O N P O L Y P A R T S

Serving as an all-round service provider, from tool design through to subassembly, with an accent on processing engineering thermoplastics, has placed the processor in good stead when it comes to retaining clients and expanding business amid com-petition from lower-cost neighbors.

Malaysia

Ku

Kua

Kota Ba

Hat Yai

Ipoh

e Town

Sadao

Kuala LJ

Ipoh, Malaysia

Y.A. Liew’s ethos emphasizes capabilities

MW1001_050 50MW1001 050 50 12/22/09 9:12:58 AM12/22/09 9:12:58 AM



Battenfeld Extrusion GroupGlobal: 5 production sites on three continentsand a worldwide sales network– Everywhere close by.

Competent: Extruders and complete, modularextrusion lines, perfectly matching components– Everything from a single source.

Solution driven: Flexible, customized solutionsfor pipe, profile, film and sheet extrusion– Our know-how for your success.

ideas

BattenfeldExtrusionstechnik GmbHKönigstraße 53D-32547 Bad OeynhausenPhone +49 (0) 5731 242-0Fax +49 (0) 5731 [email protected]

Battenfeld Extrusion

American MaplanCorporation823 S. By-Pass, P.O. Box 832USA - McPherson, KS 67460Phone +1 620 241 6843Fax +1 620 241 [email protected]

Kabra Extrusiontechnik Ltd.

“Kolsite House”, Veera Desai Road,Andheri (West), Mumbai - 53, IndiaPhone +91 22 2673 4822 25/6695 2681Fax +91 22 2673 5041/6695 [email protected]

B+C Extrusion Systems (Foshan) Ltd.2 Jinxiang Road, Daliang, Shunde,Foshan, Guangdong, PRCP.C.: 528300Phone +86 757 2238 0112Fax +86 757 2238 [email protected]

MW1001_051 51MW1001 051 51 12/22/09 3:36:48 PM12/22/09 3:36:48 PM


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ww

w.a

rbur

g.co

m

ARBURG GmbH + Co KGPostfach 11 09 · 72286 Lossburg /GermanyTel.: +49 (0) 74 46 33-0Fax: +49 (0) 74 46 33 33 65e-mail: [email protected]

| (BR) Brasil: ARBURG Ltda. · Tel.: +55 (11) 5643 7007 · [email protected] | (CN) China: ARBURG (Shanghai) Co., Ltd. · Tel.: +86 (0) 21 5488 8866 · [email protected] | ARBURG Machine & Trading (Shenzhen) Co., Ltd. · Tel.: +86 (0) 755 8343 3750 · [email protected] | (HK) Hong Kong: ARBURG (HK) Ltd. · Tel.: +852 (2) 886 3007 · [email protected] | (MX) Mexico: ARBURG S.A. de C.V. · Tel.: +52 55 5363 7520 · [email protected] | (MY) ARBURG Sdn Bhd · Tel.: +60 (0) 3 5636 6213 · [email protected] | (SG) Singapore: ARBURG PTE LTD. · Tel.: +65 6778 8318 · [email protected] | (US) USA: ARBURG, Inc. · Tel.: +1 (860) 667 6500 · [email protected] |

High performance. The new ALLROUNDER H machines. Perfect for energy-efficient,

cycle-time optimised thermoplastics processing. Clamping units with servo-electric precision. Injection

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Fast: servo-electric clam - ping unit

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MW1001_052 52MW1001 052 52 12/22/09 9:13:17 AM12/22/09 9:13:17 AM










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