S a plastics '014 08 for web

Off-grid house from

Rhino Plastics8

Lumotech diversi es with non-

automotive lights22

Sync Tooling repairs moulds

33

OFFICIAL PUBLICATION OF THE PLASTICS CONVERTERS ASSOCIATION (PCA) & PLASTICS INSTITUTE OF SOUTHERN AFRICA (PISA)

VOL 12 NR 4 AUGUST / SEPTEMBER 2014 www.saplastics.co.za

CONSUPAQREAPS REWARDSOF SPENDING

Bonus time at Finke Plastics

Compete againstimports exploit

DESIGN

Prominent women in SA plastics industry

Leading the way

SRF INAUGURATES

BOPP FILM PLANTHUGE, SOPHISTICA

TED

Performance expands white, extender

masterbatch range

ARMSAROTATION 2014

SHOW DRAWS INTL AUDIENCE

Flow paths become longer than ever imagined, while the product properties remain virtually unchanged.

Option of reducing wall thickness with the improved flow properties.

Cycle times can almost be cut by 15% to 30% increasing output and saving time and energy.

Use of smaller machines which use less energy.

Larger processing window in terms of temperature and mould filling pressure.

Significantly enhanced stiffness and strength.

Durethan and Pocan are registered trademarks of LANXESS

Give you a reach that stretches farbeyond other materials.

longer flow paths | efficient energy usage

Durethan and Pocan EF (Easy Flow) and XF (Xtreme Flow) Grades

S e p t e m b e r i s c l e a n - u p s a m o n t h

2014

Summit Publishing cct: +27 (21) 712 1408

f: 086 519 6089c: +27 (82) 822 8115

e: [email protected] Suite 42, Private Bag X16,

Constantia 7848, Cape Town, South Africa70 Newton Drive, Meadowridge, Cape Town

www.saplastics.co.za

GAUTENG Lowrie Sharp

t: (011) 793 4691f: (011) 791 0544c: 082 344 7870

e: [email protected]

KZN Lynne Askew

t: (031) 764 2494f: (031) 764 0676

e: [email protected]

Printed by: Tandym Print, Maitland, Cape Town

SA Plastics Composites + Rubber Technology is published six times a year and focuses on these industries in South

and southern Africa. We welcome news, articles, technical reports, information in general and photographs about

events and developments related to the plastics industry. The views expressed in the magazine are not necessarily those of the publisher. Views expressed are not necessar-ily those of the Plastics Converters Association, Institute of

Materials or Association of Rotational Moulders either.

Copyright: All rights reserved.ISSN number: 1684-2855 (ISDS Centre, Paris)

Summit Publishing: CK 9863581/23VAT reg: 4600187902

Plastics Institute of Southern Africa

PET Plastic Recycling South Africa

Plastics Federation of SA

Association of Rotational Moulders of South Africa

Plastics Converters Association

Institute of Materials

Publisher: Martin Wells([email protected])

Editor: Tessa OHara([email protected])

Editorial assistant: Heather Peplow([email protected])

Financial manager: Lisa Mulligan([email protected])

Designer: Jeanette Erasmus Graphic Design([email protected])

Bronwen Moys Blinc Design([email protected])

BY THE WAY . . .

A solar-powered plane featuring PU components for light-weighting made its inaugural ight in June. The Solar Impulse 2 is set to undertake the worlds rst fuel-free circumnavigation of the globe and is a larger, upgraded version of one that ew across America last year. The sun-powered craft ew from

Switzerlands Payerne air eld on 2 June and returned two hours later. The craft was invented by Bertrand Piccard and Andre Borschberg using, as previously reported, PU products from Bayer MaterialScience to reduce its weight. Its cockpit features Bayers lightweight foam insulation system Baytherm Microcell as well as adhesives and coatings from Bayer. The carbon- bre aircraft has a 72m wingspan wider than a Boeing 747 jet yet weighs just 2.3tons.

Astrapak future: Opinions differ THE article in our last issue on the recovery process underway at Astrapak generated various opinions about the potential for success. One supplier suggested the group simply did not have suf cient people to make it through: by people, he meant capable managers. We, as neutral observers of the industry, had suggested several years ago that Astrapak needed at least a dozen high level managers who would be able take over running of the various group converting operations. The kind of person who you could say to: Go and run that extrusion business in Durban and make it pro table ASAP.

Businesses can be turned around with effective management, no doubt, and this is not far-fetched in the Astrapak case, since ALL the group operations were very well run formerly. The companies purchased by Astrapak over the approximate decade while the group ran positively were correctly identi ed as being pro table and successful.

But the problem since is two-fold: when the former owner-managers left (and most of them did after serving out management contracts), a gradual slide started in virtually all cases; and secondly, the type of people needed to run such operations simply dont exist. Such highly capable and motivated individuals are either running their own businesses or are already involved with one of the bigger groups. Here and there you will nd individuals who are capable of such achievements, but they are extremely hard to nd.

Surprising scenario after re at lms supplierA FIRE at a Johannesburg lms suppliers warehouse in June stopped the business dead in its tracks only for it to be bailed out by a customer and a rival (yes, thats correct).

The business has been supplying lms from the Far East for several years and from what weve heard the quality, reliability of supply and prices are hard to beat. At the end of the day, thats what customers pay for (and theres nothing to stop South African lm producers from competing in foreign markets on the same basis).

But a crisis was averted when a rival agreed to step in and supply product, and a customer offered two vehicles to assist with deliveries ... without which the rm would very possibly have been cooked. Good fortune was at hand too, when a delayed container arrived just days after the con agration.

Shock after a re can result in victims under-estimating the hazards of the recovery process, or panicking completely, whereas a helping hand at that moment can go a long way towards calming the process. Thanks are due to the good Samaritans of this scenario. It never pays to kick a man when hes down.

IF YOU HAVE SOMET

HING

TO SAYLook at the b

right side: if you

have some gem of wisdo

m to

impart, please write to us

at

[email protected]

for large injection moulds, extruders, rollers, autoclaves and other processing equipment

s3IMULTANEOUSREADOUTOFTEMPERATUREset-point and actual value

s#LEARARRANGEMENTOFOPERATINGANDindicating elements

s3OLIDSTATERELAY332INSTEADOFheating contactor

s!LLCOMPONENTSEXPOSEDTOWATERAREmade of non-rusting materials, hence long service-life

s!CHIEVESESTIMATEDREDUCTIONINREJECTSANDINCREASEINPRODUCTIVITY

REGLOPLAS

High-performance temperature control units

Type 90 Smart

Temperature control units for water up to 90C

Ui,/*Ui>}V>>V7U}V>>V{7U*V>>Vi]nL>

JENOWILL SERVICES

Type 150 Smart

Temperature control units for oil up to 150C

Ui,/*U"iii>i>xc

Ui>}V>>V>{67U}V>>Vn7J{c

U*V>>Vi]nL>

#ONTACTn7ILLY4SCHOPP 4EL&AX#,ILLY0ARK2AILWAY2D -ONTAGUE'ARDENS#APE4OWNJENOWILL IAFRICACOM

WWWREGLOPLASCOM

AUGUST / SEPTEMBER 2014

Contents

www.rototek.com

ON THE COVER

Find out more at www.saplastics.co.za

VOLUME 12 NR 4

62

68

12

18

24

2632

34

44

46474850

545658

8287

INDUSTRY NEWSSRF inaugurates sophisticated BOPP lm plantConsupaq is reaping the rewards of spending

If import-parity is not the price setting model, what is?

10 recycling projects to receive POLYCO funding support

West African is new supplier forBOPP lms manufacturer Taghleef

Leading the way Prominent womenin South Africas plastics industry

SA pangolin seized in Chinese scrap plastic import

ASSOCIATION NEWSARMSA: Rotation 2014 draws delegates

from around roto worldPLASTICSSA: Local plastics industry commits to

Zero Plastics to Land ll by 2030IOM: Montechs rubber process analyzer

has wide capabilitiesSAPPMA VIII in September

PISA: Golf days around the countrySAVA: Vinyl SA 2014 Conference

DESIGNStreet Shark nabs JEC Americas Innovation Award

JEC Europe 2014: Champions of composites innovations

Compete against imports exploit design

WORLD NEWSSealing the deal for Hong Kong-Zhuhai-Macau Bridge

PVC recycling on the rise in Europe

53

68

71

59

Rototek of Newark, England, is a leader in the area of three-layer rotational moulding thats two skin layers with foam core technology, which is increasingly becoming an area for value-add for rotational moulding manufacturers in South Africa. Martin Spencer of Rototek was the keynote speaker at the recent ARMSA Rotation 2014 conference, during which he gave a number of presentations where he discussed solutions for technical challenges in this area. The Glink basins are roto moulded for a well-known design brand in the United Kingdom, offering several advantages, including the ability to colour readily. Read more on page 35.

WITH August 9 being National Womens Day, its appropriate that we for the first time pay tribute to the women who are buoying our industry!

The various sector associations which have emerged in the industry over the past decade-plus a few years have in most cases opted for female managers. But it wasnt simply a case of appointing women to brighten things up a bit: these people have had to be smart to deal with wide-ranging challenges.

The women who have been tasked with managing PETCO, POLYCO, PSPC; SAPPMA, SAPRO and SAVA (as well as the rebranding of the umbrella body Plastics|SA) have had to take responsibility for the full representation of their various materials public image as well as other tasks. Were grateful for what theyre doing, and stylishly too. Read about the roles the vari-ous ladies play on page 26-30.

No winners from strikeThere wont be any winners from the recent metal-workers strike but, from our perspective, there will be one guaranteed result, and that unfortunately is that more workers will lose their jobs. That was the direct outcome of the 2011 edition of the labour protest several thousand lost their jobs then. And now were seeing a repeat of that. So we have a badly polarised position what is proving dif cult to change.

Import-parity situationSome in the industry are unfortunately celebrat-ing the somewhat poetically set R543-million ne that the Competition Commission hit Sasol with for anti-competitive behaviour in sales of polypropylene. Our research revealed a very different and complex

COM

MEN

T

picture, however. Until a few years ago, both the local polyole ns manufacturers, Safripol and Sasol, had import protection for HD, LD and PP. It was during this era that an aggressive anti-Sasol attitude developed in the industry and even awareness of the fact that import duties were a standard feature in many countries around the world, covering many varied products, did not deter these individuals.

Since the phasing out of duties in 2010, however, the polymer importers have not been able to compete with Sa-sols prices, and their best op-portunities to sell have come when Sasol or Safripol have had production problems and not been able to supply. See on pages 12-13.

Plastic scrap exports are dodgyThe fact that local recyclers cannot compete with Chinese buyers when it comes to purchasing plastic scrap should raise alarm bells. Why? Simple arithmetic actually: the present value of collected plastic material ranges from R2500-4000 a ton, but the ton of collected pangolin scales intercepted in a shipment of PET scrap (ex-SA) by customs of cials in Hong Kong recently had an estimated value of R5-million. The latter gure may be in ated, but would vastly exceed the value of the entire container of scrap of about R70,000. In 2011 a shipment containing a large number of rhino horns was intercepted too, not surprisingly also hidden in bales of PET containers. We appreciate the diligence of the Hong Kong of cials, using x-ray detecting devices. See our story on this unsavoury situation on page 32.

There wont be any winners from the strike

THIS ISSUE

Martin Wells, Publisher

Sector association appointments not just window dressing

Women are buoying our industry

Design to ght importsMike Wythe of the Tshwane University of Technologys 3-Dimensional Design unit is keeping his nger rmly on the design button! In his column this issue Mike says exploiting design is one way to compete against imports. See pages 58-9

Lamellae fruit bowl from Snapp Design www.snappdesign.com

Rock 1 kayak from Rototek of the UK; Fondue Slippers from Tokyo designer Satsuki Ohata are created by dipping a foot mould in liquid PVC; automotive suspension springs made of glass bre-reinforced polymer for Audi AG (about 40% lighter than the steel alternative); Chinas growing rail industry is making major use of Makrolon polycarbonate from Bayer; Hydra ner cosmetic range from Consupaq of Durban; Polyplastic and Owens Corning developed a new grade of glass bre-reinforced PP for use in washing machine tubs

SRF Flexipack has commissioned its state of the art BOPP lm manufacturing line in Cato Ridge, KZN, a US$65-million investment which constitutes one of the biggest ever ventures in the South African plastic converting market.

The ultra-modern plant is the rst BOPP manufacturing site built outside of India by SRF Flexipak, which is part of SRF Group (formerly Shri Ram Fibres), one of Indias largest and oldest chemical and industrial dynasties.

The 18-month construction project was completed in November. Phase one of SRFs long-term strategy is to install up to four lm lines on the site.

The ergonomically-sound factory includes a new ve-layer coextrusion plant and an imposing 150m-long and 8.7m-wide Brckner BOPP lm line, complemented by a top-of-the-range 2.8m Applied Materials metalliser, a Kampf rewinding and slitting hall and a world-class warehouse terminal. Also on site is a central service building, an administration building and canteen all sized to cater for

the proposed expansion to four lines.Manufacturing operations are carried

out by a 160-strong workforce, supported by highly-experienced management and sales teams.

As African economies grow, and as transport and distribution infrastructures improve, more and more multinational brand owners are recognising the potential for packaged food production in Africa. In turn, theyre asking packaging convertors to deliver sophisticated exible packaging solutions that offer excellent barrier properties for extended shelf life and are easy to transport, said Grant Page, SRF Flexipaks country head.

With its rst-world infrastructure and stable economy, South Africa is the perfect base for SRF to implement its African growth strategy. Local BOPP lm demand stands at 31,000 tons/annum.

This line has the capacity to extrude 80 tons/day, providing local and export markets with consistent quality, high-clarity lm, produced using the worlds foremost equipment and processes, said Page.

Production commenced in late November and has run smoothly since day one.

From the very rst mill roll, the 8.7m-wide line has been producing high-quality ve-layer plain and coextruded lms between 15 and 40 microns in line with local convertor demand, he added.

Flexibility, stability, speed and superior lm qualityCombining the process know-how of SRF and Brckner, the BOPP line incorporates a direct uff recycling system and Brckners well-proven TDO heat recovery technology, which allows for considerable energy savings.

Every aspect of the fully-automated

SA Plastics: Why has SRF group invested in South Africa and why is the plant situated in Cato Ridge?Grant: For several reasons: rstly, theres a gap in local BOPP market, which, until now, has largely relied on imports. However, we have a very good supply chain here; Sasol and Safripol are producing in excess of three hundred kilo tons of polypropylene per annum; and theres a growing need for the lm. Secondly, SRF are experienced in doing business locally as we already have a technical textiles business in PE, so we havent jumped into the unknown. The decision was to base the factory in KwaZulu Natal as almost 55% of our customers are based in Durban. Also, the EThekwini Municipality has earmarked Cato Ridge to be a dry port. Containers will be

railed and stored here to reduce congestion at the port. Theres lots of land available in the area, as well as a constant supply of electricity.SA Plastics: SRF Flexipack has entered into a regional market where there is already one manufacturers also constitutes a chuck of

Im more than con dent that weve made the right move. We have invested in the best-of-breed with the Bruckner line, as well as created a plant designed for ef ciencies. The local operation is managed according to the successful Indian model. So, with Indian expertise, this regions great infrastructure and local young talented staff,

we have a winning formula. In fact, right now, we have a signi cant share of the market. Were also currently working toward our ISO certi cation, which will put us out on top.SA Plastics: I: Is the intention to supply the

!"your view is the potential for sales of these

"#

Africa has de nitely been part of the logic in building the plant here. We have an existing customer base into Africa from our Indian plants, we are currently focusing on the SA market but will expand our reach shortlySA Plastics: Besides standard packaging

$

#used in the signage markets?

Perfect base for SRF group to implement its African growth strategy

We talk to Grant Page, Country Head of SRF Flexipack, about the groups new venture in Africa

6 AUGUST / SEPTEMBER 2014

SRF inaugurates huge, sophisticated BOPP lm plant

Members of the SRF team at the commissioning of the huge line in Cato Ridge earlier this year

New SRF plant no longer need to resort to exports!

AUGUST / SEPTEMBER 2014 7

We currently supply two primary markets: the packaging market with a heat sealable range between 15-40 microns, and the tape and textile market with product thats not heat sealable. The bulk of our demand is for these products and hence our current focus. However, our line has the capability to produce 1280 microns and we have recent experience with Bio lms in India therefore we can expand into these areas as the demand materializes. The site has been built to accommodate four lines in various permutations between BOPP and polyester and well eventually look at further investment, but right now we need to bed down with what we have.SA Plastics: %industrial group: does SRF Flexipack enjoy &$$$advantages from SRFs international activities?

Absolutely! The New Delhi-based company is quite diverse, supplying four core markets, ranging from chemicals to textiles. The synergy

comes in from the packaging lms division, which essentially processes BOPP and BOPET. The reason we ramped up so quickly was because of the collaboration we have with the group. The companys total quality management philosophy is driven across the group, which, obviously, includes us.SA Plastics: '&&&have extensive manufacturing experience from &&(#)$#&(#*$$$are the particular strengths of the team youve +$

Life has ways of going in circles my experience with Nampak has perfectly moulded me as the team leader for a BOPP lm manufacturer, and the rm relationships I made with colleagues and clients back then are paying dividends now. Essentially, were a commodity supplier, but our unique selling point is that we can accommodate even small customisations for local converters so they dont

have to resort to imports. The team we have assembled in Cato Ridge is a mixture of SA youth and Indian BOPP experience this has generated a unique culture of energy and enthusiasm I have no doubt this team will deliver excellence.

The launch of SRF Flexipack is a positive story for South Africa. The business model has proven to be sound; we are now manufacturing $60 million worth of product that was previously imported; weve invested $65 million in equipment; and weve created employment, including 160 direct jobs going forward and at least 200 indirect ones through contractors. It was an easy decision for me to become part of this exciting venture.

process is designed to maximise up-time, yield and raw material ef ciency. This ensures exibility, production stability, fast product changes and, ultimately, superior lm quality, said Page.

Other plant design highlights include water run-off to a holding dam, air conditioning along speci c sections of the line, a production process with 100% reusable internal waste and a pallet recycling programme. Overseeing production quality is a professionally-staffed laboratory, featuring cutting-edge testing facilities.

Ludwig Eckart, COO of Brckner Maschinenbau, supplier of the BOPP extrusion line, said The African packaging industry is developing very positively, partly with two-digit growth rates. With a modern infrastructure and stable economy, South Africa is the perfect base for SRF to implement its African growth strategy.

INDUSTRY NEWS

www.srf.com

This line has the capacity to extrude 80 tons/day,

providing local and export markets with consistent quality, high-clarity lm,

produced using the worlds foremost equipment and

processes, says Grant Page, SRF Flexipaks country head

The massive 5 layer Bruckner machine, which includes 2.8m metaliser, giving the

option to produce clear, metallised and white lms, is situated in a 150m-long hall, making it one of the largest plants in the industry in

South Africa

CONSUPAQ, a division of the Astrapak Group, is reaping the bene ts of several recent investments. Celebrating a decade of producing tubes this year, the company has become a leading manufacturer of plastic extruded tubes for the South African cosmetics market.

Aligned with Astrapaks major restructuring programme to cement the Groups position as the packaging manufacturer of choice, Consupaqs recent capital spending has hugely extended its capabilities. The company produces a range of extruded tubes of various sizes for different applications; thin-wall jars, thick-wall, glass lookalike cosmetic jars; and custom products for the high end cosmetic, personal care and medical sectors. Its portfolio of clients includes most of the major brands in the personal care sector.

Late last year it acquired a new hybrid tube printer capable of combining screenprinting with exographic printing technique applied directly on to tubes, a rst in Africa. This allows Consupaq to offer the market the best of both printing technologies high de nition image printing combined with bold screen printing of text.

This is particularly imperative, explains Consupaq general manager Robin Rigney, in order to keep their customers abreast with international trends. Besides that, its what todays customer wants. The demand for high de nition graphics and the ability to print life-like images on tubes is growing. These printing techniques have great potential to increase the perceived value of tubes, which is a great marketing tool for brands and manufacturers, says Rigney. We have been able to take the tube market to a whole new level with this technology.

The positives coming out of Astrapaks restructuring are growing from strength to strength, and we are bene tting from the capital investment theyre putting in to achieve that, he comments. Two years ago, the company invested in bi-injection moulding technology; again, a rst in Africa for the personal care market that resulted in an import substitution for one of its major clients.

Through this investment we brought new innovation into the sector, as well as providing an import substitution; both

hugely bene cial, says Rigney. The bi-injection

technology allows Consupaq to mould two different materials or two different coloured materials simultaneously.

A third major investment was the acquisition of a multi-layer extrusion blow moulding machine that has opened up new avenues for ideas, innovation and markets.

In addition to these investments, we are certi ed compliant with ISO 22000 and PAS 223, says Rigney. Although we focus on the personal care and household segment, we went for the top end food safety accreditation to bene t our clients and explore new markets. It underpins our commitment to provide leading edge innovation to meet the most discerning requirements of the

WHAT started as a venture making refuse bags from recycled material in Dimbaza in the 1980s and gradually evolved into the production of sophisticated agricultural lms nally owered for Rhino Plastics recently when it put it all together in the development of a fully sustainable, off-grid house concept.

House Rhino at the Crossways Farm Village near Port Elizabeth is testament

to Rhino Plastics MD Brian van Niekerks ceaseless search for sustainable and environmentally-friendly construction solutions.

The pioneering green house is not just off-grid from an electrical perspective: it is self-suf cient in terms of its water and ef uent requirements too, using the latest technologies, materials and capabilities. The latter is really the key aspect in the

project: Van Niekerk has applied his mind to every aspect of the development.

Main features include: roof-mounted solar photo-voltaic with

a bank of zero-maintenance batteries charged by two inverters, giving the house autonomy;

water sustainability achieved through rainwater harvesting (with 30,000 litres of storage tanks);

INDUSTRY NEWS8

A

UG

US

T /

SE

PTE

MB

ER

201

4

Consupaq is reaping the rewards of spending

Consupaq has been a constant Gold Pack Award winner since 2005, with products such as the Lucid range for cosmetic house, Annique

Totally off-grid house from Rhino Plastics

The house at Crossways Farm Village near Jeffreys Bay includes 1) photo-voltaic (PV) system; 2) invertor/MPPT/Battery for PV system; 3) solar geyser; 4) at plate solar panel for hot water; 5) heat pump for geyser hot water; 6) heat pump for under oor; 7) heat pump for under oor cooling and swimming pool heating; 8) heat storage tank for under oor heating and cooling; 9) indirect S-solar panels for under oor heating and cooling; 10) bio-gas digester; 11) bio-rock ef uent treatment plant; 12) sump; 13) tank and ozone treatment; 14) rain tank with ozone treatment; 15) under oor heating and cooling; 16) methane gas to stove and re place;) 17) water & energy/saving showerheads; 18) LED lights; 19) double-glazed doors & windows; 20) polycarb roo ng; 21) polycarb skylights; 22) roof garden; 23) chimney for passive cooling; 24) irrigation system; 25) aqua garden system; 26) dampseal plastic water proo ng membrane; 27) enviro-Tuff roo ng insulation; 28) bulk ceiling insulation; 29) invertor DC pool pump; 30) ozone pool sterilization

New hybrid tube printer, new bi-injection moulding technology, new multi-layer extrusion blow moulding machine, ISO accreditation

JUST BRIEFLY


construction with Aruba bricks, which offer better insulation; and

the use of numerous recycled materials, such as WPC decking.Rhino Plastics itself provided most

of the plastic pipe and lm (some of it produced from recycled material) while its subsidiaries Rhino Energy Solutions provided the PV panels and infrastructure; Rhino Water provided

the water harvesting system (including the sourcing of the roto moulded tanks); Rhino Greenbuilding coordinated the architectural design; Rhino Lighting supplied the LED solutions; Rhino AgriVantage provided the biological nutrients; and Ecola Plastics produced several of the recycled materials used.

markets that we serve.Consupaqs journey began in 1997 and

has grown to become a major packaging supplier to the local personal care and cosmetic market. In 2005, Astrapak became a 60% partner; it purchased the balance of the shares three years later. Today, the company follows a lean manufacturing principle, is housed in a 8000m facility in Durban, has a sales of ce in Johannesburg and a staff complement of over 150.

Its in-house design facility keeps a keen eye on global design trends to ensure a consistent pipeline to innovation and maintain its competitive edge with

international markets. It is so successful that Consupaq has been a constant Gold Pack Award winner since 2005.

After this current round of investments, we have signi cantly increased the value of our asset base, says Rigney, who reveals that more capital spending will be made later this year. Watch this space.

www.consupaq.co.za

The positives coming out of Astrakpaks restructuring are growing from strength to strength, and we are bene tting from the capital investment theyre putting in to achieve that, says Consupaqs general manager, Robin Rigney

Consupaqs new hybrid tube printer is capable of combining screenprinting with exographic printing technique applied directly on to tubes, a rst in Africa

House Rhino Brian van Niekerk of Rhino Plastics has put years of experience and know-how to work in the development of the totally off-grid house near Port Elizabeth. Here we see the man with the battery bank from the roof mounted photo-voltaic panels. The dwelling, seriously, is able to function fully without mains power, and even features under oor heating for the winter months to boot

www.rhinoplastics.co.za

www.crosswaysfarmvillage.co.za

CompositesSA createdAN association for the composites industry, CompositesSA, was established on 21 July 2014 at the of ces of the Department of Trade and Industry in Pretoria in a meeting attended by stakeholders from industry and government.

CompositesSAs interim committee is aiming to: develop a constitution, organisational model,

list of members and nancial model; organize the industry into sector speci c

composite forums; provide industry input to the DTIs Composites

Strategy and the 10-year Composites Roadmap; assist industry with accessing DTI incentives.

Dr Kjelt van Rijswijk was elected as the interim-CEO; Tim van der Steene (Tag Yachts) will chair the Marine and Wind Energy Composites Forum; Shenton Botes (NCS Resins) will chair the suppliers forum, and a chairman for the Aerospace & Defense Composites Forum is to be elected at the rst forum meeting.

This is a big step for our industry as we now have established a mechanism to formally and of cially provide industry input to our Governments composite strategy, said Van Rijswijk. Looking forward to taking the next steps, big and small, to grow the South African composites industry.

Plastomark represents Styron; West African sells Styron PS materialsAN ARTICLE in our last issue about the Pulse polycarbonate/ABS blends from Styron, used for high-standard automotive interior components, incorrectly stated these materials are supplied by West African Group. The engineering grade materials are in fact supplied by Plastomark. This is a result of the fact that Ravago group, which is the owner of Plastomark, is the global distributor for Styron. Ravago (headquarters in Belgium) is an international materials supply and logistics group with several contracts in place with global material manufacturers.

Styron is a global scale supplier of various engineering plastics and emulsion polymers (latex and rubber) with revenue of a whopping $5.3-billion in 2013. The business was part of Dow group until 2010, and has practically accelerated its core activities since being hived off.

Besides the PC/ABS blends, Styron manufactures various other resins including ABS, polycarbonate, polypropylene and the Styron polystyrene materials. With the exception of the Styron PS materials, Plastomark is the supplier of all these materials.

West African Group is the agent for Styrons general purpose and high-impact polystyrene materials in South Africa, and this relationship has been in play for more than a decade.

www.styron.com

THE CSIRs Biocomposites Centre of Competence is conducting research into a variety of natural bre materials with the intention of commercializing these as sustainable alternatives for the reinforcement of composite structures.

Research has focused on agave, ax, hemp, kenaf, sisal and even pineapple and soya. Previously the bre tended to be gathered after the harvest of the fruit or crop, but more recently, due to the greater value now attached to naturally sourced materials, the cultivation of crops for the sole purpose of bre extraction has become a reality. This is partly due to the desire of global brands such as Mercedes Benz and Coca Cola to develop green sustainable material alternatives.

According to Andy Radford of the CSIR Biocomposites Centre in Port

Elizabeth, the potential value of the natural bre is far greater once its suitability for use as a composite reinforcement is proven. Several natural bre crops have been developed as non-woven fabrics, but use as composite bre offers a substantially better return for farmers.

A further potential advantage is that no till farming practices are preferred, which is a signi cant cost saving for the farmer.

The challenge at present is to determine the right cultivars and most suitable quality of the various plants, as well as where in the country and what times of the year are most suitable for optimum cultivation. It was found for instance, with hemp, that bre from the younger plant stalks achieved a higher tensile performance, whereas

previously it was considered that the bre extracted after the second year growth was preferable.

The Biocomposites Centre is operating out of the former textiles development centre in Summerstrand, Port Elizabeth, which possesses of arguably the foremost textiles testing apparatus in southern Africa. Radford and his team are hence able to conduct comprehensive development tests.

Its a challenging process, however, as farmers require tangible evidence of potential earnings before putting seed down. One such project at Winterton in KZN did not yield positive results in the rst year, but there is ironically a strong possibility the project will produce very good returns down the line. Andy Radford: [email protected]

Biocomposites Centre looks at potential of green, sustainable plant products

www.csir.co.za

INDUSTRY NEWS

In this non-wovens application, a blend of 25% hemp-25% ax was thermo compression moulded with polypropylene to create a rear door panel for a Mercedes C Class vehicle. Now the CSIR is proposing to use these and other natural bres, chopped into various lengths, as long- bre composites

Fibre from some unlikely sources is showing potential, in this case from pineapple stems. The researchers have found that the bre is most suitable a year after the actual fruit has been harvested. The Biocomposites Centre is dealing with this and other surprising ndings

Fibre from plants such as kenaf, hemp, sisal, ax, cotton and agave offer different characteristics

10

AU

GU

ST

/ S

EP

TEM

BE

R 2

014

Researchers zone in on natural bre reinforcement solutions

Dr Andy Radford is involved in the development of natural bres for commercial use, as reinforcement for composites, operating out of the well-equipped Biocomposites Centre in Summerstrand, Port Elizabeth

JUST about everyone in the industry, one imagines, is trying to get the best prices for the materials, products or services he or she sup-plies. By best, read highest. The market, however, does not simply allow you to get what you want. Until a few years ago, both the local polyolefins manufacturers, Safripol and Sasol, had import protec-tion for HD, LD and PP. It was during this era that an aggressive anti-Sasol attitude developed in the industry and even awareness of the fact that import duties were a standard feature in many countries around the world, covering many varied products, did not deter these individuals.

Since the phasing out of duties in 2010, however, our research suggests that the polymer importers have not been able to compete with Sasols prices.

The consensus in the industry is that import-parity pricing is the standard and that the given price for any globally available material on any day is the global price specifically, the price at which the material can be landed in a country at. In South Africa, prices for commodity polyolefins are set in the Far East, specifically China, and prices for materials produced in South Africa or supplied by importers follow this cue.

But is there universal agreement in this regard?We refer to the matter of the fine imposed on Sasol by the

Competition Commission for anti-competitive behaviour, due to its pursuance of import-parity pricing.

We asked a number of South Africas top polymer suppliers if there are alternatives to the existing price-setting model. Here we publish the replies of the respondents: with some of the questions we supply only what in our view is the most interesting reply; in others we supply the replies of several.

Is there an alternative to import-pricing for polymer, and if so, how would such a mechanism function?WOLFGANG RAFFALSKY (PLASTOMARK): Not to my knowl-edge, all commodities (not just polymers) are priced on a global basis.

DICK COATES (MBT): I would argue that the price is not set in the Far East. In our view, import parity pricing is just one of a number of inputs that is taken into account by the producer when setting the price of a product. Others are mark up over cost, reward on the investment made, what the market will bear, what price can you get elsewhere, whats the competitors price and whats the price on co-produced products. There may be others: petrochemicals markets are complex arenas and the relative contribution from any of these inputs will vary from time to time.

At the end of the day, the producer has to reward his investment. If he cant reward the investment already made, the next investment will be in something else, somewhere else, where he can make the reward.

MIKE REX (GLOBAL COMMODITY ANALYSTS): In my view there are two important issues with commodity pricing for plastics converters and their downstream markets. These are

achieving the correct price level for the given product in its market;

dealing with the price volatility that results from short to medium-term supply and demand economics and long-term cyclicality which are both characteristic of these markets.

The dif culty comes in when we try to de ne the correct price level. Each player in a market will have their own approach to decid-ing how this correct price should be calculated. In the South African context, the import parity price has been broadly established as the price a buyer would have to pay for the material if he or she elected to source the material from an international supplier rather than purchasing it from a local manufacturer.

Import parity pricing in South Africa has become an emotionally charged topic. Historically, in some instances, the local petro-chemical producers were nanced, subsidised and supported with taxpayers money. Buyers were not permitted to import the type of materials manufactured locally without express permission from the governments Department of Trade and Industry. If such permission was granted it was usually only done with the approval of the pro-tected local producer. Local producers held all the power. Over and above this, import duties were applied to provide further protection for the local producers.

Given that buyers were unable to source material from anybody but the local manufacturer, it is no surprise that the market became very suspicious of the way prices were set. Local manufacturers seemed able to set their prices wherever they chose. In order to defend their often criticized but completely unassailable position, the term import parity pricing was used. The problem was, and to a certain extent still is, that the manufacturers were the ones de ning and calculating the so-called import parity price. Each market had its own power-brokers controlling their own interpretation of import parity pricing.

In my opinion, polymer buyers should insist on import parity pricing. However, the import parity price used in such a situation must be calculated by an independent party in an equitable, reliable, sustainable and professional way. The manufacturers in any given

market cannot be batsman, bowler and umpire in this game. This type of price information is avail-able in South African rand/metric tonne terms for each of 14 commodity polymers. The information is also available in indexed format to make it as accessible and relevant to the smaller players, as it is to the bigger players.

The indices are calculated relative to base pric-es in August 1998. This is a signi cant reference point in commodity markets because it represents

a natural cyclical pricing low which was strongly in uenced by the Asian currency crisis at that time. This pricing information is some-times referred to as fair value pricing to avoid the strong emotions associated with the term import parity pricing.

Price smoothing techniques are also available to eliminate the alarming volatility experienced by South African markets due to the Rand/Dollar exchange rate and uctuating international polymer prices.

INDU

STRY

NEW

S


Import parity pricing is just one of a number

of inputs taken into account by the

producer when setting the price of a product

We talk to some of SAs top polymer suppliers

CHOOSE THE NUMBER ONE.

High capacities have never been as easy to achieve as with the new INTAREMA. Counter Current technology makes it possible. Because the extruder handles more material in a shorter time. And this means for you: constant, top throughput within a considerably larger temperature range. For more productivity, exibility and process stability.

Relloy S.A. (Pty) Ltd / 27 Mopedi Road Sebenza / Evendale, 1609 / GautengTel: +27 11 452 3724 / [email protected] www.relloy.co.za

Efficiency at the fore.

IINNNNNTTTTAAAARREMMAThe neww ssysystttemee gggenneration from E EREMA.


Dick Coates of MBT, Wolfgang Raffalsky of Plastomark and Mike Rex of Global Commodity Analysts participated in the interviews, in which the polymer price setting scenario is analysed (MBT and Plastomark are among the top suppliers of polymers in South Africa; GCA is an analyst of the polymer supply market and price trends)

In your experience, what is the standard in other countries?COATES: Its a global business. If you cant make an adequate

reward by producing and selling in one country, you go and pro-duce it and sell it elsewhere.

REX: Polymer, and indeed any other commodity material, can only be sold at below substantiated import parity price on an on-going basis if that market is subsidised by some third party. Poly-mer producers need to reward the substantial capital they invest in their manufacturing plants. Market cyclicality delivers alternating periods of pro t and loss for these producers.

The detractors of commodity producers focus on the signi cant pro ts and ignore the considerable losses that characterize these markets. If producers in a given region are required, for whatever reason, to sell below the ruling market prices at any given time they will be compromising their ability to remain in the business further down the track.

In my opinion there are no circumstances which would justify selling polymer at below sub-stantiated import parity prices to all, or even part of the South African market. If the IDC, the DTI or any other third party wants to subsidise polymer pricing to South African converting companies, then those subsidising partners would have to source the polymer materials at market related prices and cover the cost of the subsidies themselves.

We all know the mess that can result from poorly thought out subsidies. Every market needs to be able to wash its own face in the long run. It is pointless subsidising businesses which will inevi-tably close down the moment those subsidies are removed. There is no long-term future for polymer convertors who require ongoing subsidies to justify their existence in the South African market.

What circumstances could justify selling at prices below the import parity level?

COATES: Perhaps the producer is overstocked, perhaps he wants to encourage the use of a polymer to replace a traditional material in a certain product? But in both these cases the sustainability of the discounted price is limited by the return on his investment.

RAFFALSKY: I dont think there could be any justi cation; ultimately such forced pricing would lead to the demise of the local polymer producers and then one would have to rely on international

supplies anyway.REX: Polymer, and indeed any other commodity material, can only

be sold at below substantiated import parity price on an on-going ba-sis if that market is subsidised by some third party. Polymer producers need to reward the substantial capital they invest in their manufactur-ing plants. Market cyclicality delivers alternating periods of pro t and loss for these producers.

Detractors of commodity producers

focus on the signi cant pro ts and ignore the considerable losses

that characterize these markets


INDUSTRY NEWS

The detractors of commodity producers focus on the signi cant pro ts and ignore the considerable losses that characterize these markets. If producers in a given region are required, for whatever reason, to sell below the ruling market prices at any given time they will be compromising their ability to remain in the business further down the track.

In my opinion there are no circumstances which would justify selling polymer at below substantiated import parity prices to all, or even part of the South African market. If the IDC, the DTI or any other third party wants to subsidise polymer pricing to South Afri-can converting companies, then those subsidising partners would have to source the polymer materials at market related prices and cover the cost of the subsidies themselves.

We all know the mess that can result from poorly thought out subsidies. Every market needs to be able to wash its own face in the long run. It is pointless subsidising businesses which will inevi-tably close down the moment those subsidies are removed. There is no long-term future for polymer convertors who require ongoing subsidies to justify their existence in the South African market.

There appears to be the view that supplying polymer at lower cost would be an advantage for new converting operations: is there logic in that?

REX: There is no logic in this. None whatsoever. Lower polymer prices to the market will provide established players with lower prices as well. New entrants will nd it just as dif cult to establish themselves against existing experienced and estab-lished players. Many of our plastics converting sectors are already signi cantly over-traded. Newer players are always going to nd it extremely dif cult to get a foothold in these established markets.

For any business to succeed it needs sustainable competi-tive advantages which separate it from the crowd. Raw material pricing cannot be a contributing factor in this scenario. As far as I know, any form of tiered pricing in a market is considered an uncompetitive business practice.

RAFFALSKY: That view is misguided. Polymer prices in South Africa have been driven by international prices since the mid 1980s, yet plastics consumption has grown in leaps and bounds (in line with the rest of the world). Converted products still enjoy duty protection while there is no duty on polymers; thus local converters have every chance to fend off nished goods imports. Growth (from arti cially low prices) could only come from exports, but potential here is, however, limited due to South Africas logisti-cal disadvantage to all three major markets.

COATES: To a degree. But the converters themselves have to be world class to take advantage of the subsidy, otherwise you are asking the polymer producer to subsidise downstream inef- ciency. If energy prices rose to such an extent that vinyl window frames started to become more viable, then discounting the polymer price to selected converters for a limited period of time to hasten market penetration would be perfectly logical. What is probably not logical is for the producer to have to give a feel good discount which merely translates to a new luxury vehicle in the converters parking lot.

Sasol appears to be charged with exporting polymer at lower prices (speci cally into Africa and to Brazil) and hence potentially disadvantaging local convertors: is exporting of polymer at a lower rate than that achieved in a polymer manufacturers home market a reality in the industry inter-nationally? And, if so, is this a sustainable strategy?

RAFFALSKY: It has been standard practise for decades that domestic prices in the various regions are higher than the corresponding export offers. One just has to consult the weekly price monitor publications (such as Platts) to see that; thus Sasols pricing policy is in line with its peers around the globe. Sasol has in the past three years plus charged signi cantly less than they could have in terms of import parity in essence, their prices appear to have been a compromise between import parity and export netbacks. The low level of imports on polypropylene proves this.

The fact therefore is the opposite of what they are being charged with i.e. local converters are bene tting from Sasols pricing. Forcing Sasol into selling at export netbacks in South Africa would not only effect the economics of their operation, but essentially of the other two polymer producers as well, and essentially kill off any further investments in the long run therefore we would have the demise of local polymer production and what would we end up with? The local converters would then have to pay full import parity, like they do on everything else, from polystyrene to ABS to PU etc.

COATES: As a generalisation, many chemicals and polymer producers export their products at prices lower than the domestic price in the country of production. This is called dumping and is quite common.

The challenge comes when dumped product is imported into a country that has domestic production itself of the identical product. If the dumped product: undercuts the producer in the country to which the goods are

exported; the producer in the country to which the goods are exported,

demonstrable harm; and the imports of dumped product can be shown to be the

cause of the harmthen World Trade Organisation (WTO) rules

allow for the imposition of a counterveiling antidumping duty on the offending exporter. If there are a number of exporting offenders, then a blanket antidumping duty may be imposed on all product of that type originating in that country.

Is it sustainable? Well, lets look at a hypothetical case of an LDPE producer who

makes 200ktpa and sells it at R20/kg into a domestic market of say 175ktpa. He has to run his plant at out so he has two options of what to do with the surplus 25ktpa. These are: sell 25ktpa at R17/kg into the export market, nish and klaar; sell the 25ktpa at R17/kg into the domestic market, but this

can only be done IF, by using the R2/kg discount, he can develop a new market for this tonnage and this tonnage is sold ONLY into this new application.

If, as I suspect the Great South African Government would like, he is forced by legislation to sell this tonnage into his existing, fully subscribed market at R17/kg, then the WHOLE 175ktpa will be devalued by R3/kg and the manufacturer still has the problem of what to do with the extra 25ktpa surplus to the domestic market requirements and the whole investment case is jeopardized.

You end up with the case that the Great South African Government sets the price in the market and no petrochemical producer will invest billions of US$ under this scenario. What is really scary is that the Great South African Government is trying to do this RETROSPECTIVELY!

Forcing Sasol into selling at export

netbacks in South Africa would

essentially kill off any further investments

mmm$YWhij$Ye$pW

E D A N B : G H 9 > K > H > D C

E _ _ ]] IE IEkhM_dd_d]

POLYCOs strategy for 2014-2015 will focus on supporting the entire recycling industry value chain by growing volumes of separation, collection and sorting, recycling and end-use demand for polyole n plastics.

POLYCO presented its strategy for growth for 2014-2015 at its AGM in Midrand recently during which POLYCO chief executive of cer Mandy Naud, said the organisation would invest R10-million over the next year to address current areas of constraint in the recycling industry and in line with the associations project categories.

POLYCOs goal is simple: to create an organised and committed network of packaging converters united in their commitment to Extended Producer Responsibility by way of the voluntary industry-recycling levy. To use the funds paid by the convertor members to grow the tonnages of post-consumer packaging polyole n plastics being recycled or diverted from land ll. In doing so, we aim to meet the targets set in the Paper and Packaging Industry Waste Management Plan, as submitted by industry to government, Naud explained.

Through its Project Support Business model, POLYCO will focus its attention on supporting the entire recycling industry value chain by growing volumes of separation, collection, sorting, recycling and end-use

demand for polyole n plastics.We are committed to achieving

the objective of sending zero plastic packaging waste to land ll by 2030 and will therefore be playing a very active role supporting the implementation of a wide variety of different projects that will help us achieve this goal, said Naud.

POLYCO will also be actively supporting reclamation of energy projects in order to extract green energy from the non-recyclable polyole n plastics and other waste materials currently going to land ll sites.

Through waste bene ciation processes such as incineration, pyrolysis and gasi cation, a diversion of 440 000 tonnes of polyole n packaging materials could be diverted from land ll by the year 2030, she explained.

Addressing areas of constraint in recyclingPOLYCO will be investing R10-million over the next year to address current areas of constraint in the recycling industry and in line with the associations project categories below. We are expecting the POLYCO 2013 funded collection projects to result in an additional 4200 tes of polyole n recyclate being available to South African recyclers per annum, Naud said. 1 Strategic Growth and Development Projects, which aim to increase the economically viable collection and recycling of post-consumer polyole ns. These projects focus on optimising the use of existing collection and recycling infrastructure and

help to facilitate its establishment where it does not exist. They are required to deliver substantial growth in tonnes of material separated, collected, sorted and recycled (over 5000 tons p/a). 2 Supply Chain Ef ciency Projects will support new or existing initiatives that contribute to the signi cant growth of sustainable, on-going collection and sorting of polyole n plastics (between 1200 and 2400tpa). These projects focus on optimising the supply chain within the collection and recycling industry to maximise the growth in tonnes separated, collected, sorted and recycled, by addressing current supply chain constraints. 3 Waste Bene ciation Projects focus on supporting technology development projects that are aimed at the extraction of value from the polyole n plastic packaging and other waste material currently going to land ll. These include incineration and pyrolysis. 4 End-use Development/ Research and Development Projects will focus on promoting the use of polyole n recyclate in a range of consumer product applications with the aim of replacing virgin or other materials. 5 Visible Consumer Projects initiatives do not necessarily involve signi cant volumes, but promote and contribute to the visible recycling of polyole ns. The annual report can be downloaded at

Actively supporting energy reclamation projects to extract green energy

Jeremy presented Robin Olbrich and Eddie Wallace of Astrapak with the groups membership certi cate

Philip de Weerdt was also elected as the new vice-chairman of POLYCO. Here Philip receives Nampaks membership certi cate

Members of the POLYCO board at the AGM in May included George Blackwood (POLYCO business support manager); Jeremy Mackintosh (chairman); Mandy Naud (POLYCO CEO);

Eddie van Os (Unilever); Robin Olbrich (Astrapak); Bronwyn Durham, Philip de Weerdt (Nampak) who was elected as vice-chairman, and Annab Pretorius (SAPRO). Bernhard

Mahl, Anton Hanekom and Neelin Naidoo (POLYCO Board members) were absent when the photograph was taken

16

AU

GU

ST

/ S

EP

TEM

BE

R 2

014

to invest R10-million to address constraints in recycling

www.polyco.co.za

!""#

$%'()% +/0+ 2/ 4/

056448;/+5+64+0/+4

POLYCO has selected 10 applicants to receive support funding for their projects that will have a direct impact on the growth of separation, collection and sorting of post-consumer polyole ns.

We received 56 applications for support following our rst Call for Proposals that went out on 23 March this year, explained Mandy Naud, CEO of POLYCO. Each one of these submissions was carefully evaluated against the funding support criteria and a short-list of 10 applicants was recommended by the Project Evaluation Committee to the POLYCO Board for approval.

The nal step in the process saw POLYCO visiting each of the short-listed applicants at their premises, where a further in-depth review was conducted to gain additional information and to understand their businesses better. The Project Evaluation Committee then reviewed the feedback from all 10 applicants and rated them against the agreed criteria, some of which included source of the waste, volume growth, employment opportunities created, location - waste hotspot or not, and rand per ton investment effectiveness.

The proposed funding support for each short-listed applicant was presented to

the POLYCO Board on 15 July and total funding support of just under R4 million was unanimously approved.

We are thrilled with the nal list of successful applicants who are our newest POLYCO partners. These support projects cover all the key geographical areas in South Africa and will generate an additional 16 000 tons of post-consumer polyole n collections over the next three years, as well as create 340 potential new employment opportunities in the industry, Naud said.

Next stepsPOLYCO is interested in supporting the

Successful applicants receive just under R4 million support funding for separation, collection and sorting projects

INDUSTRY NEWS

Paul Ranto Paul Ranto is based in the Eastern Cape and currently services the Butterworth area. With POLYCOs support in the form of trailers and cages, Paul will be expanding into collections from neighbouring towns to enhance polyole n collection volumes from this previously under-serviced geographic region


InWaste GreenEliran Moses of InWaste: This is a dream come true for us and we are truly honoured to be partnering with POLYCO. We see this as only the beginning of taking our business to where we want it to go. The Moses family

started their recycling operation ve years ago and has grown their business. They now run a 100% vertically integrated operation, by collecting, recycling and producing products made from recycled polyole ns. With POLYCOs funding support, InWaste Green will install new equipment in their Tembisa buyback centre and will t cage conversions to their trucks to enable them to signi cantly grow post-consumer polyole n collection and recycling volumes

Mpact RecyclingUshan Naidoo of Mpact Recycling: We are ecstatic about being awarded POLYCOs support funding. There is a big need for recycling projects in rural KwaZulu-Natal, and this is hopefully the rst of many more to come in the region where job creation is desperately needed, and has the potential to grow polyole n collection volumes in the area. Mpact Recycling has a successful and established model of buyback centres around South Africa. POLYCO will partner with them in the KZN region with the establishment of a new buyback centre www.mpact.co.za

10 recycling projects

The successful applicants

VerigreenPOLYCOs funding will enable us to grow the network and reach our goal of empowering 500 super mamas. We envision that the branded trucks will be like moving billboards that helps us to spread the message of how we are empowering women and helping communities in the process, says Thina Maziya of Verigreen, pictured here in the centre of her team of super mamas. Recently re-launched and re-branded Verigreen (previously known as Izaka Plastics), is a 100% vertically integrated collector, recycler and product manufacturer of polyole n drawstring bags. Verigreen has launched their Super Mama project whereby they plan to empower the woman breadwinners in the family to be able to earn a living wage through the collection of polyole n packaging. With POLYCOs support, Verigreen will be tting cages to their trucks to maximize the collections from their Super Mama network of collectors www.verigreen.co.za

mechanical recycling of post-consumer polyole n plastic packaging and to this end has just released its second Request for Proposals. This call for recycling support proposals covers three distinct categories:1. Strategic growth and development

projects (large-scale, new recycling projects of above 2400tpa aimed at substantially increasing the mechanical recycling volumes of post-consumer polyole n plastics).

2. Supply chain ef ciency projects (smaller projects of between 800 and 1200tpa aimed at maximizing the sustainable growth in production

volume of mechanically recycled polyole n plastics).

3. End-use development/Consumer projects (smaller projects focused on increasing the number and visibility of products that are manufactured from recycled polyole n polymers, with the aim of replacing virgin material and other material types).

The deadline for submissions is Friday, 29 August. Companies interested in partnering with POLYCO and apply for support funding can download the project criteria document and application guidelines from


Mandy Naud, CEO of POLYCO

The Recycling Incubator (TRI)TRI has been established to implement the separation-at-source programme in conjunction with the recently commissioned Bon Accord Recycling Centre (BARC) in Pretoria. The initial phase targets 60 000 households in the surrounding feeder areas and has signi cant potential for the growth of separated collection volumes across all material waste streams, not only polyole n materials. POLYCOs funding support will be in the form of operational equipment to optimise TRIs collection capabilities which will increase the availability of post-consumer recyclate for mechanical recyclers

www.polyco.co.za

MyWasteMyWaste owner, Mark Gibson: POLYCOs funding is a hand-up, not a hand-out. We have big dreams, but cannot do it on our own. Thanks to partners such as POLYCO who are willing to invest in our projects, we are able to increase traf c to our website and offer an even better service to our users. MyWaste has been operating for 10 years, offering a free website service for all buyback centres or recyclers in South Africa. With POLYCOs support, the website will be further developed to become an education and consumer awareness platform on material identi cation, drop off locations, green product directories and green calendar events. It also offers the facility to be able to send educational messages and material requirements to the buyback

centres and recyclers to encourage collection volumes of speci c material types www.mywaste.co.za

TWK RecyclingGeorge Blackwood of POLYCO congratulates Jo Kearney of TWK Recycling. Based in Grabouw in the Western Cape, TWK Recycling is a 100% BEE organisation originally formed as part of an entrepreneurial development programme. It has developed into a robust, community-supported initiative. POLYCOs funding support will be in the form of equipment to establish three depots which will be used for collection and sorting of material in Greyton, Genadendal, Riviersonderend and Caledon. Support will also be provided for a trailer and granulator in order to service the outlying towns and reduce the logistic costs www.twkrecycling.co.za

to receive POLYCO funding support

MyPlas Contracted CollectorsWalter Jordaan and Johann Conradie (pictured here) of MyPlas. POLYCO will be providing equipment funding support to three contracted scrap plastic collectors in rural Limpopo, Northern Cape and Western Cape supplying to Myplas, to facilitate the collection and granulation of new sources of material for supply to their recycling operation. Myplas facilitated the applications from three of their rural collectors. The bene t of supporting contracted collectors is that there is a direct link between the growth in tons collected and the tons recycled

INDUSTRY NEWS

FINKE Plastics in Port Elizabeth is under new ownership, with father-and-son team Anthony and Chris Bonus having purchased the business.

The unexpected Bonus came about quite unexpectedly: Chris Bonus, having completed his toolmaking apprenticeship, hired space from the former owner of the business, Martin Finke, in 2010 in an arrangement which suited both parties. Finke, a German toolmaker, had wanted to retire but a previous sale of the company in 2007 had hit the rocks and he had been obligated to return to production. Having Chris as unof cial production manager suited Finke.

Then Chris father, Anthony, who had been in the automotive manufacturing sector with General Motors for close to 40 years, was offered a package in 2013 and decided, well, to take it and join his son in the business.

Fortunately for the Bonuses, they have different but complimentary skills: Chris handles the design, toolmaking and production tasks while Anthony runs the accounts and sales activities. Bonus snr has also, unexpectedly, found himself doing deliveries lately, nipping around PE. But keeping it in the family is a good outcome for the Bonus team at this stage. They are continuing with the products developed by Martin Finke over the years and are planning to grow the business only slightly. The company uses conveyors on most of its machines, which is literally a

further Bonus.Logistics experience built up Anthony, who spent 39 years

at GM, is a big asset for the company, particularly with prioritizing orders, enabling Chris to focus on production.

Martin Finke has meanwhile moved down the coast to J Bay with his family and Dachshunds (the ultimate in German engineering!), and is enjoying the more relaxed environment. Finke Plastics, phone 041 581 1173

Its Bonus time at Finke Plastics

Father-and-son team Anthony and Chris Bonus are now at the helm at Finke Plastics in Walmer Dunes Industrial Estate, Port Elizabeth. The company

operates a bank of Arburg injection machines, up to 180 tons clamp force, and produces a range of automotive, packaging and technical components.

Finke Plastics has ISO 9001 accreditation

New chapter for PE injection moulding business

[email protected]


THE Performance Colour Systems boys are at it again, with continued investment in extruder capacity for the South African market.

After a two-year stint in the Western Cape, technical director, Riccardo Di Blasio has found his way back to Johannesburg and the heart of the Performance Colour Systems organisation. Riccardos team has purchased an innovative white masterbatch extruder to supplement existing growth, speci cally for high-end white masterbatch applications and to support the ever expanding calcium carbonate business within sub-Saharan Africa.

As more of our partners are being placed under margin pressure they are coming to us for ways of making a difference, said Riccardo. Premium titanium dioxide pigments are used to reduce customer dose rates, and in certain non-critical applications, the need for additional use of extender

masterbatch is also growing.It is important that we continue to

provide our customer base with relevant products, and this investment is part of that process. Our business partners have made us who we are today and listening to their feedback is critical, he added.

Strong leadership & topnotch technical teamThe PCS team has grown from strength to strength and now consists of a ve-man executive committee at the head of the organisation.

With the addition of Barry Shaw to the Cape Town team, technical expertise is not just a phrase thrown around within the exciting Performance Colour Systems team. Barry has a long history within the colorant and additive market and his move

to join PCS permanently and relocate to the Western Cape is testament to the drive from within to assemble the best technical team available. Barry took up his role at PCS in the rst quarter of this year.

The gap in leadership in the Cape Town of ce caused by Riccardos relocation to the Johannesburg head of ce will be lled by Jared Khoury. As the new branch manager, Jared will drive continued technical improvement and commercial growth within the Cape Town market. Originally from PCS in Durban, Jared unfortunately remains an ardent Sharks supporter!

The PCS team has a strong group of leaders within its organisation and appears to be an exciting business to be a part of. Well done to all involved.

World-class setup and continued investment in extruder capacity

The new line for the production of white masterbatch and calcium carbonate ller at the Performance Colour Systems (PCS) factory in Meadowdale, Johannesburg, with PCS commercial manager Shaun Bouwer, Lurika van Staden, sales and marketing manager and Liaan Swanepoel, PCS production manager

Lumotech of Uitenhage is in the process of taking its skills at lighting component and re ector production into markets outside of the automotive sector, where it has long been a leader. The company, formerly known as Hella SA, is using its core skills of injection moulding, vacuum metallizing and particularly in-plant assembly to produce a range of factory lights as well as street lights, both

new markets for the business. Seen here is an energy-ef cient warehouse aisle light that is suitable for factories. The light offers signi cant electricity savings, says the manufacturer. The cover is produced in PP and the re ector in polycarbonate; the individual facet orientation of the re ector captures as much of the lamps output as possible and re-directs it in carefully calculated zones as required

Performance expands range of white and extender masterbatch

www.performance.co.za

Lumotech diversi es with non-automotive lights

INDUSTRY NEWS

22 AUGUST / SEPTEMBER 2014 www.lumotech.co.za

When you get right down to the root of the meaning of the word success you nd it simply means to follow through. CFW Nichol

Our 4 divisions:s-ASTERBATCHs0IGMENTSs0ASTES05206#s,IQUIDS0/0%4

consistencyin

Contact us:www.performance.co.zaGAUTENG: Tel: + 27 11 961 2700 | Fax: + 27 11 961 2799 | Cnr. Koornhof & Essex Roads, Meadowdale Ext. 1, 1401 CAPE TOWN: Tel: + 27 21 928 2800 | Fax: + 27 21 931 9088 | 5 Linus Road, Beaconvale Industria, Parrow 7500 DURBAN: Tel: + 27 31 701 1202 | Fax: + 27 31 701 2296 | Reed Place Maxmead Ind. Park Unit 22, Pinetown 3620 EAST LONDON: Tel: + 27 43 736 2076 | Fax: + 27 43 736 2036 7 | Reitz Avenue, Green elds, East London

Colour Conversations: should you wish to subscribe to our monthly newsletter, please contact Lurika [email protected]

colourExcellence

WEST African Group is the new agent for Taghleef Industries in South Africa. This follows WAGs recent purchase of the Taghleef agency in South Africa from Flexible Packaging & Exporting Agency.

Taghleef Industries lms were introduced into South Africa in 2001 by the late Tony Robertse, as the agent for Al Khaleej Polypropylene Oman (KAPLOM) at the time. Marilyn Robertse took over the AKPP Agency in 2003, and in 2006 Taghleef Industries was formed

following the merging of AKPP, Dubai Poly Films and Technopack Eqypt. Over the past 11 years, Ti Films has carved a reputation in the industry for quality, service, reliability and has grown to become the largest importer of BOPP lms into South Africa.

Based in Dubai, Taghleef Industries operates nine production sites globally. With such an international footprint, coupled with its expertise in development and innovation, Ti has established itself as a leader in the BOPP industry worldwide. It has capacity of

approximately 410,000 tpa of BOPP and CPP lms; it is the largest supplier of imported BOPP lm into South Africa.

INDUSTRY NEWS

BOPP Packaging Solutions (BPS) will trade as division of West African Intl


Duncan Brown is business unit

manager for BPS (BOPP Packaging

Solutions), the new West African Group

subsidiary

West African is new supplier for BOPP lms manufacturer Taghleef

WAG has now formed a new division, BOPP Packaging Solutions (BPS), which will trade under the umbrella of West African International to handle sales and distribution of the Ti lms. The company is being run by Duncan Brown, BPS business unit manager, and assisted by Angela Van Maasdyk.

Both were most recently involved

at Flexible Packaging &

Exporting Agency.The dynamics of the

BOPP market in South Africa has changed and

by plugging into the WAG distribution infrastructure (nine warehousing facilities in South Africa plus one in Zimbabwe), together with WAGs healthy resources, BPS is in a strong position to service

customers on a stock-and-sell basis, in local currency, as well as servicing the needs of direct indent supply to customers, said Brown.

The wide product portfolio, production capacity and expertise in product development of Ti suggest BPS will be readily able to supply the various specialised BOPP lm grades now being used and ef ciently service the growing market.

www.ti- lms.com

www.westafricangroup.co.za

West African Group has formed a new division, BOPP Packaging Solutions (BPS), to handle sales and distribution of the Ti Films.

The wide product portfolio, production capacity and expertise in product development of Ti suggest BPS will be readily able to

&$$&$$#


See review on the Middle East BOPP industry on p80

Prominent women in South Africas plastics industry

Leading the way


THE industry has long been mainly male-dominated, but surprise surprise! the scenario has changed to the point where the industrys image is now being, well, more attractively presented.

FEAT

URE

Rod WannenburghTapeTown Productionscell: +27 82 900 [email protected]

Our leading ladies enjoyed a morning at Mangwanani Spa at Zevenwacht wine estate. Thanks to the following for helping make the experience memorable:

Mangwanani at ZewenwachtTel: +27 21 903 7427Cell: +27 82 314 [email protected]

Delanie Bezuidenhout, CEO Southern African Vinyls Association (SAVA)

Business philosophyLive in such a way that if someone spoke badly of you, no one would believe it. Treat your reputation as if it were more valuable than gold. Always help others out, and never speak badly about other people.

What got you to this key position?Ive always had a passion for the environ-ment and even when I was in the SA Navy, I tended to gravitate towards projects that focused on protecting our marine environ-ment. As CEO of SAVA my key focus is on guiding the South African PVC industry towards greater product stewardship. It is important to harness your con dence and believe in your abilities. Success doesnt come without effort you have to go the extra mile every day and make no exceptions! You also have to be alert and be keyed in to your environment to ensure that you dont miss opportunities. And ulti-mately you have to persevere. Successful people also fail, but as times get hard,

their stamina does not wane. You have to develop a willingness to work through the challenges you encounter along the way.

What do you draw on for inspiration and motivation?The feeling and intention that I can make a difference is probably my greatest motivator. I want to know that I contributed in a way that will make a sustainable impact or will leave a lasting legacy towards an industry, organisation or for future generations.

Challenges and opportunities?Product stewardship is a powerful concept that challenges all companies to take responsibility for the products they make and consume. Through strategic lead-ership over the past four years SAVA have combined the principles of shared responsibility, lifecycle thinking, awareness, innovation and supply chain communica-tions in the PVC industry and embarked on

the journey to achieve the key commitments of the SAVA product stewardship programme (PSP). Our challenge for 2014 and beyond is to ensure greater repre-sentation and participation throughout the PVC value chain on all aspects of product stewardship.

Lessons you have for other women coming up through the ranks?You dont have to be a man in a mans world to succeed. You can be proudly woman! It is important to strike the right balance between work and family life without the guilt. Be con dent and most importantly be prepared whenever you go into a meeting. The value of good written and oral communication cant be under-estimated. If youre passionate about your career, it will make putting time and effort into it pleasurable, not a chore.

LiLiLiLiLifefefefefe iiii isssss lililililikekekekeke aaaa a cccc camamamamamerererereraaaa.a..... FFFF Focococococususususus oooo onnnnn whwhwhwhwhatatatatatsssss iiii impmpmpmpmppororororortatatatatantntntntnt,, , cacacacacaptptptptptp ururururureeeee thththththeeeee gogogogogog ododododod tttt timimimimimeseseseses,, ,dedededededevevevevevevelolololololopppppp frfrfrfrfrfromomomomomom ttttt thehehehehehe nnnnn negegegegegegatatatatatativiviviviviveseseseseses aaaaa andndndndndnd iiiii iffffff ththththththinininininingsgsgsgsgsgs ddddd donononononontttttt wwwww wororororororkkkkkk ououououououtttt,t,t, ttttt takakakakakakeeeeee ananananananototototototheheheheheherrrrrr shshshshshshotototototot!!!!!!

The unexpected change came about over the last decade or so largely as a result of the emergence of the various sectorial as-sociations, which in turn had been prompted by the need for the industry to self-regulate. Self-regulation was originally adopted as a strategy to avoid State environmental protec-tive ruling, with the plastic bag legislation of 2002 being fresh in the minds of many.

Virtually all the new sectorial asso-ciations formed since then have opted for female management. But the appearance of PETCO (for the PET sector), POLYCO (poly-

ole ns sector); the PSPC (Polystyrene Pack-aging Council); SAPPMA (Pipe Manufactur-ers); SAPRO (plastics recyclers), SAVA (for the PVC/vinyls sector); and the rebranding of the umbrella body Plastics|SA (formerly the Plastics Federation) was not simply a window-dressing exercise: the women who have been tasked with managing these enti-ties have had to take responsibility for the full representation of their various materials public exposure.

Here we look at what these women do and how they go about it.

Leading ladies Back: Adri Spangenberg, director of the Polystyrene Packaging

Council; Mandy Naude, CEO of the Polyole n Recycling Company and Monya Vermaak, marketing and communications

executive, PlasticsSA. Front: Delanie Bezuidenhout, CEO of the Southern

African Vinyls Association and Kirtida Bhana, training executive at PlasticsSA.

Unfortunately not present for the photo are Annab Pretorius, South African Plastics

Recycling Organisation and Cheri Scholtz, CEO of the PET Recycling Company

Annab Pretorius, South African Plastics Recycling Organisation (SAPRO)

HaHaHaHaHardrdrdrdrd wwww worororororkkkkk alalalalalwawawawawaysysysysysy pppp ppayayayayayysssss ofofofofoff!f!f!f!f!

Business philosophyGet the job done!

What got you to this key position in the plastics industry? I found myself without a job after I resigned from PlasticsSA (then the Plastics Federation of SA) and PCA. I always enjoyed the challenges of extrusion. As raw materials, recycled material is a fascinating family on its own. Some recycling surveys during my time at the Plastics Federation brought me in close contact with the recyclers and I knew that they were in urgent need of some formalised structure. On top of this, I like to put my nose in other peoples business and the recycling industry gave me the opportunity to still be involved with many of the other industry sectors. Putting all of this together gave me the opportunity to work with plastics entrepreneurs on a technical basis as well as an industry interaction level.

What do you draw on for inspiration and motivation?A smiling face somewhere in a factory and a handshake and the words you taught me, long ago; a product on a shop shelf that Ive seen in rough make-up somewhere in a coffee shop discussing the most suitable material and process; a phone call that says you wont remember, but you assisted us long ago, can you help again? A courier at the gate with owers and a

note that says, It worked! When it ies, I y!

What do you see as the biggest challenges facing you/your organisation?Combining my hobbies (what hobbies!), my young son, my husband and my only other social interest (volkspele) with a very challenging career! For SAPRO, the challenges lie in doing what we as recyclers have been doing for decades, but doing it better!

What do you view as the greatest opportunities facing you/your organisation?The world and his brother are on the green bandwagon and if we cant pull the momentum towards mechanical recycling and reap the bene ts now, we never will! The brand owners, retailers, consumers and even the plastics industry are ripe for recycling. SAPRO members need to get in there quickly with better quality and lots of it.

Lessons you have for other women coming up through the ranks?Stay true to yourself, believe in yourself and grind it hard work always pays!

Business philosophyFocus on three things: What can you be the best in the world at; what are you passionate about, and what drives your companys economic engine. By consistently focusing your strategy and ongoing business activities where these three areas intersect you will turn your business from a good busi-ness to a great business. (Based on Jim Collins book From Good to Great)

What got you to this key position? The knowledge and experience Ive gained during my 25-year career: From market development manager engaging with the total textile value chain, to business manager responsible for a manufacturing operation and global export sales, to supply chain manager responsible for logistic operations and procurement, and nally to divisional manager for a national food ingredients distribution business focused on repositioning strategy to improve pro tability and build a professional brand. The POLYCO CEO position requires every one of these skills and experience.

What do you draw on for inspiration and motivation?The vision of zero waste to land ll for the future, where waste is recycled to create a circular economy and what cant be recycled is bene ciated to create energy or fuel. As a mother of three daughters, my motivation comes from the fact that I want to be a strong role model for them and show them that if we are passionate about what we do, we can achieve great things and can make a positive difference in the world.

Challenges & opportunities?Challenges include signing up all remaining converters to pay the voluntary recycling levy to raise suf cient funds for the support of projects to achieve the IWMP targets. To develop close working relationships with the brand owners and retailers to encourage then stipulate sustainable supplier practices like EPR commitment. The Zero Plastics to Land ll by 2030 strategy will require a partnership approach by everyone in the value chain to increase current recovery and recycling rates. Also, stimulation of suf cient end-use demand to consume the increased recycled tonnages over the next 5 years.

Opportunities include the ability to fund projects that will grow plastics recycling in SA to achieve the IWMP target of 35% by 2019. This means a growth of 80 000 tons of recycled polyole ns. Another is to support reclamation of energy projects and target the non-recycled plastics to achieve zero plastic to land ll by 2030.

Lessons you have for other women coming up through the ranks?Always be true to yourself and your values. Bring your passion to the role and empower the people around you. Dont be afraid to have a voice it is important to be heard if you have something valid to contribute. Get involved and be open to learning, nothing earns you more credibility than speaking from experience. Be professional in everything you do as it builds your personal brand and credibility.

Mandy Naude, chief executive of cer of the Polyole n Recycling Company (POLYCO)

27

GeGeGeGeGettttt inininininvovovovovolvlvlvlvlvededededed aaaa andndndndnd bbbb beeeee opopopopoppenenenenen tttt tooooo lelelelelearararararnininininingngngngngg.. NoNoNoNoNothththththinininininggggg g eaeaeaeaearnrnrnrnrnsssss yoyoyoyoyoy uuuuu momomomomorerererere crcrcrcrcrcrededededededibibibibibibililililililitititititityyyyyy ththththththanananananan sssss spepepepepepeakakakakakakinininininingggggg frfrfrfrfrfromomomomomom eeeee expxpxpxpxpxpererererererieieieieieiencncncncncnceeee.e.e.


FEATURE

ThThThThTheeeee wawawawawayyyyy y inin

Documents

S a plastics '014 08 for web