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T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
W W W. W E S T E R N P L A S T I C S . O R G D E C E M B E R 2 0 1 3
T H E N E W S L E T T E R O F T H E W E S T E R N P L A S T I C S A S S O C I AT I O NWPA TODAY
F E AT U R E :
WPA SUPPORTS OPERATIONCLEAN SWEEPBY JOHN P ICC IU TO , WPA P R ES I D ENT
Our industry is too often plagued
by images of plastic waste littered
on local beaches. While there is
some debate over the ultimate
responsibility for much of this
waste, there is one aspect of
marine debris that we are respon -
sible to manage, that being
plastic pellets. Plastic pellets
that have spilled at manufactur-
ing facilities or in transit can be
washed down storm drains and
end up on our beaches, in our
oceans and waterways. Although
we have made progress dealing
with this issue, it is a bigger
problem than many realize and
the solution rests solely with us.
To this end, the WPA has recently
signed on as a supporting mem-
ber of Operation Clean Sweep
(OCS) to give our members the
tools to keep resin pellets out
of the environment.
Operation Clean Sweep is an
international program designed
to empower and aid employees
of the plastics industry to keep
resin pellets out of the marine
environment. OCS was created
with the many levels of the resin
plastic business in mind, includ-
ing resin manufacturers, plastic
processors, trucking and rail
companies transporting the pel-
lets, and the plastic machinery
and equipment companies that
use the resin pellets. Operation
Clean Sweep is a simple step to
help strengthen your company’s
sustainability initiatives, safety
record, financial bottom line and
reputation in the community.
Becoming a member of OCS is
simple. Visit www.opclean-
sweep.org and sign the pledge.
You will immediately be able to
take advantage of all of the OCS
tools posted online. These include
customizable checklists for both
employees and managers to con-
duct site and equipment audits.
Also included are posters to hang
around the work place to help
encourage everyone to help
reduce pellet waste. You will
receive an OCS flag, a certificate
of participation and an OCS logo
to highlight your company’s
commitment to sustainability.
WPA is committed to a sustain-
able future. With the involvement
of companies such as yours, we
can keep resin pellets where
they belong: in our plastic
products, not in the ocean.
What are you waiting for? Take
the OCS pledge! •
I N T H I S I S S U E :
Feature Article 1
Operation Clean Sweep 2
Bag Bans 4
Canada 7
Insurance Issues 10
Biodegradability 12
Recycling 16
Sustainability 24
Legislative Issues 29
Member Press Releases 34
Voter Initiative 43
N E X T W PA M E E T I N G :J A N U A RY 7
Resin Forecast 2014
SOCAL MEETING
SEE DETAILS, PAGE 3
Sponsor: Westlake Chemical
John Picciuto, President of the Western Plastics Association
2
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
O P E R AT I O N C L E A N S W E E P :
PAC WELCOMED AS F IRST SUPPORTER MEMBER OFOPERATION CLEAN SWEEPBY PAC , THE PACKAG ING ASSOC IAT ION
The board of directors of the
Packaging Association (PAC) and
the leaders of their PAC NEXT
initiative announced today the
signing of an Memorandum of
Understanding to begin promot-
ing Operation Clean Sweep®
(OCS) to resin pellet handling
operations within their member-
ship. Originated by the Society of
Plastics Inc. (SPI) more than 25
years ago, OCS is now a joint
program of SPI and the American
Chemistry Council (ACC) and is
licensed to the Canadian Plastics
Industry Association (CPIA) to
administer and promote in
Canada. OCS is an environmental
stewardship program that has
been implemented by almost 200
U.S. companies, 70 Canadian
companies, and close to a dozen
international plastics organiza-
tions around the world including
the CPIA.
The global plastics industry is
committed to its role as an envi-
ronmental steward. Ensuring that
spilled resin pellets—the raw
material from which plastic prod-
ucts are made—do not make
their way into local waterways,
lakes or oceans is a priority.
Resin pellet loss can occur in
manufacturing plants where
pellets may be inadvertently
washed down drains or lost
during transportation. The goal
of OCS is to help resin pellet
handlers implement systematic
housekeeping and pellet contain-
ment practices towards achieving
zero pellet loss.
“We’re excited to be working with
SPI, ACC and CPIA to help promote
the OCS program and to ensure
our members engaged in resin
pellet handling sign onto the OCS
program” said James Downham,
PAC President and CEO. “PAC and
PAC NEXT urge all of their mem-
bers who handle resin pellets to
take the OCS pledge to prevent
the loss of resin pellets into the
environment. We all agree that
plastic pellets don’t belong in the
environment, and this program
can help us practice better pellet
stewardship across our industry.”
SPI President and CEO Bill
Carteaux added, “Our organiza-
tion is pleased to have PAC and
PAC NEXT as a supporter to
promote OCS among its member-
ship. Protecting the environment
takes industry cooperation, and
we are delighted to share a pro-
gram that has helped hundreds
of other companies keep resin
pellets out of waterways and
pursue zero waste.”
CPIA President and CEO Carol
Hochu said, “CPIA is delighted
with the support from PAC and
PAC NEXT and looks forward to
working together, building and
expanding upon our current
efforts to enlist more and more
companies into the OCS program.
ACC’s Vice President of Plastics
Steve Russell added, “Industry
collaboration is essential in tack-
ling marine debris, both at home
and globally. PAC’s support of
OCS helps further unite the value
chain on essential best practices
for keeping pellets out of our
waterways.”
The OCS program and manual
contain guidelines to help plant
operations managers reduce
pellet loss to the environment.
The OCS manual and customiz-
able implementation tools are
available online at no cost to
companies wishing to implement
the OCS program. Learn more
about the program and sign
onto the OCS program at
www.opcleansweep.org for
plants operating in the U.S.
and through the CPIA website
www.plastics.ca/ocs for plants
operating in Canada. •Reprinted from the PAC press
release, December 9, 2013.
CA L I FORN IA W I L L HAVEENOUGH DATATO E XAM INE THE P E R ENN IA LARGUMENTS . .
U P C O M I N G W PA P R O G R A M : S O C A L M E E T I N G
JANUARY 7, 2014VIRGIN AND RECYCLED RESIN FORECAST 2014:• Forecast of resin prices and demand with a focus on the North American plastic manufacturing market
• Review of supply/demand and cost trends
• Discussion of how these issues will impact resin pricing
Guest Speakers: Joel Morales from IHS and Kathy Hall from PetroChem Wire
Joel Morales joined IHS in March 2013 as Director of Polyolefins for North America. Prior to joining IHS, Joel managed resin procurementfor Silgan Plastics, a major, blow-molding plastics converter. He brings a processor’s perspective to the organization and will take an activerole in the continued development of the company’s global plastics services. Joel brings a wealth of industry knowledge to IHS through multi-ple stints along the plastics’ value chain. He began his career with polyethylene manufacturer, Solvay Polymers, which later became Ineos, intechnical services supporting Mexico and Latin America before he was moved into field sales. After 5 years at Solvay Polymers, Joel movedinto resin distribution sales as a Product Manager where he managed and sold polyethylene and polypropylene resins into various customersegments. Joel graduated from the Massachusetts Institute of Technology with a B.S. in Chemical Engineering.
Kathy Hall is the Executive Editor of PetroChem Wire, a daily newsletter she created in 2007 to serve the U.S. olefins and polymers marketsby providing useful and clear information about commodity chemical pricing and operations. The company has grown from a staff of oneproducing a single daily report to a staff of nearly 10 who produce three daily reports and several monthly reports. The PetroChem Wireserves as an industry benchmark for U.S. ethylene, propylene, polyethylene and polypropylene and is used by the NYMEX/CME Clearportcontracts for these products.
THANK YOU TO MEETING SPONSOR: WESTLAKE CHEMICALWestlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and building products with headquarters inHouston, Texas. The company’s range of products includes ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVCbuilding products, including pipe and specialty components, windows and fence. For more information, visit www.westlake.com.
.
WHEN:Tuesday, January 7, 2014 5:30 PM Registration & Networking 6:30 PM Program & Dinner
WHERE:Doubletree Hotel13111 Sycamore Drive, Norwalk, CATel: 562.483.2705
* If you require a hotel room for this meeting, contact Doubletree Hotel directly.
COST:RSVP by January 3, 2014WPA Member: $70 / Member Guest: $85First-time Attendee: $85Non-WPA Member: $135
RSVP after January 3, 2014WPA Member: $95 / Member Guest: $105First-time Attendee: $105Non-WPA Member: $150
Walk-ins at the event: Add $10.Cancellation Policy: Cancellations must be made 48 hoursprior to the event. Registration is non-transferable to anotherevent; send a substitute if you are unable to attend. No-showswill be billed.
RSVP today: [email protected]
EVENT SPONSORSHIP:Sponsoring an upcoming WPA program is a great way to increaseyour firm’s visibility to hundreds of decision-makers within our industry.
WPA would like to add your com-pany's name to our prestigious list of supporters! There’s a sponsorshipoption for every need and everybudget.
Contact Laurie Hansen for details onhow your company can market its services and products to key industryprofessionals.
916.930.1938 or [email protected]
Virgin & Recycled Resin
4
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
B A G B A N S :
A CHANCE TO SETTLE THE PLASTIC BAG BAN DEBATEBY L . A . T IMES ED I TOR IA L BOARD
As it does each year, a bill to ban
plastic bags in California will
almost certainly come before the
Legislature in the next session.
Each year, under heavy lobbying
by the makers of such bags—
who say the bill will kill jobs and
wreak other forms of havoc—the
Legislature has folded. State
Sen. Alex Padilla (D-Pacoima),
whose bill in the most recent
session failed by a narrow
margin, has indicated that he
plans to try again.
California has a chance to do
things differently this time, with-
out the endless back and forth
about whether the bans effec-
tively reduce the trash that finds
its way into giant patches of
floating plastic in the oceans,
and without disputed claims that
California companies will go
under. Because this time, it has
the opportunity to replace con-
jecture with facts.
Close to 90 cities and counties in
California have passed bans on
plastic bags. Once the ban takes
effect in the city of Los Angeles,
at the start of the new year, such
bans will cover a third of the
state’s population. Usually, the
bans allow customers to purchase
a paper bag for 10 cents or so;
Padilla’s bill would have done
that as well. This means that
there is now enough information
to study, in robust and real-life
ways, whether fewer bags are
found on the beaches, an indica-
tor of how many make their way
into the ocean. Have cities and
counties lost any jobs as a result
of bag bans? How many?
We actually prefer fees on both
plastic and paper bags. They
have proved effective where they
have been tried—there’s simply a
mental barrier to paying a nickel
for a bag—and they give con-
sumers more convenience and
choice. But a ban on plastic
bags appears to be the next best
choice. It has been our belief that
banning the flimsy carryout bags
with handles will reduce the
environmental toll on the ocean
without significantly harming
employment. (Other plastic bags,
such as those used for produce
or the ones that protect news -
papers from rain, would not be
affected.)
But we are willing to be per-
suaded otherwise by conclusive
data that show plastic bag bans
do more harm than good. So
should industry. Most important,
so should lawmakers in
Sacramento. •Reprinted from the L.A. Times,
November 27, 2013.
CA L I FORN IA W I L L HAVEENOUGH DATATO E XAM INE THE P E R ENN IA LARGUMENTS .
5
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
B A G B A N S :
TOP 8 WAYS GROCERS CAN SURVIVE PLASTIC BAG BANSBY P E T E GRANDE , COMMAND PACKAG ING
All over the country, plastic shop-
ping bags are being outlawed in
grocery stores and other retail
outlets. Fees are being imposed
on all shoppers who do not bring
their own bags. Plastic is no
longer an available option at
the checkout counter except at
stores that carry thicker, certifi-
able reusable plastic bags.
It’s a steep adjustment period for
shoppers when they hit the
checkout line, so here are a few
ways grocers can survive the
switch away from t-shirt style
plastic bags:
1) Have a plan on how to prepare
your customer for this change.
Post signs and counter toppers
that provide your customer with
a clear set of choices for their
carry bags options.
2) Know that initially most
customers will not be happy.
Many of your customers will be
confused by this new policy and
will want to know why.
3) Brief your staff on how to
respond to customers. Create
concise scripts so employees
will know how to best respond.
4) When asked what is the ‘best
choice’ be prepared to answer
with confidence:
a. Paper or Plastic? At the cost
of $0.10 there are only two
choices—one is single-use
and one is reusable.
5) Have a strategy to encourage
reuse and recycling. Showing
your understanding and support
for the ordinance will help put
your customers at ease.
6) Provide your customers fun
strategies to remind them to
bring in their bags. Encourage
customers to keep bags in their
car, by the front door or near
their car keys as a good visual
reminder to take them with them
to your store.
7) Don’t put meat or liquid in
reusable woven or sewn bags.
The reason, the pores in these
bags hold bacteria easily. Gener-
ally, people don’t wash woven
bags, which is why they have
been proven to spread the flu
and other illnesses.
8) Encourage recycling of bags
when they reach the end of their
use. This will help create a
closed-loop system similar to
Europe where as much as 90
percent of all plastic is recycled
and is not buried in a landfill ,
putting you at the center of the
solution as it well positions
your brand.
Bag bans are intended to force
shoppers to change some of
their habits, which puts you and
your business in the cross hairs
of frustration. Using these tips
will hopefully make life easier for
you but especially your customer
—by keeping in mind that not all
bags are created equal. Being a
part of the smarter solution
benefits your business in good-
will and loyalty from your
customers. •Pete Grande is CEO of Command
Packaging and Encore Recycling,
a new venture in Salinas, Calif.,
that will remove 100 million lbs.
of Ag plastic from landfills
annually to create bag ban
compliant plastic bags. More
info at www.smarterbags.com.
BE ING A PARTOF THE SMART E RSO LUT ION BENEF I T S YOURBUS INESS .
6
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
B A G B A N S :
COMMISSION PROPOSES TO REDUCE PLASTIC BAGS USEBY EUROPEAN COMMISS ION
Today the European Commission
adopted a proposal that requires
Member States to reduce their
use of lightweight plastic carrier
bags. Member States can choose
the measures they find most
appropriate, including charges,
national reduction targets or a
ban under certain conditions.
Lightweight plastic bags are
often used only once, but can
persist in the environment for
hundreds of years, often as
harmful microscopic particles
that are known to be dangerous
to marine life in particular.
Environment Commissioner
Janez Potocnik said: “We’re
taking action to solve a very
serious and highly visible envi-
ronmental problem. Every year,
more than 8 billion plastic bags
end up as litter in Europe, caus-
ing enormous environmental
damage. Some Member States
have already achieved great
results in terms of reducing
their use of plastic bags. If
others followed suit we could
reduce today's overall con-
sumption in the European Union
by as much as 80%.”
Technically, the proposal amends
the Packaging and Packaging
Waste Directive with two main
elements. First, Member States
are required to adopt measures
to reduce the consumption of
plastic carrier bags with a thick-
ness below 50 microns, as these
are less frequently reused than
thicker ones, and often end up
as litter. Second, these measures
may include the use of economic
instruments, such as charges,
national reduction targets, and
marketing restrictions (subject to
the internal market rules of the
Treaty on the Functioning of the
EU). The high reduction rates
achieved in some EU Member
States, through the introduction
of charges and other measures,
show that results can be achieved
through effective action.
The proposal follows on from
measures taken by individual
Member States and from calls by
EU Environment Ministers on the
Commission to assess the scope
for action at EU level. It comes
after extensive public consulta-
tions that found broad support
for an EU-wide initiative in this
area.
BackgroundThe properties that make plastic
bags commercially successful—
low weight and resistance to
degradation—have also con-
tributed to their proliferation in
the environment. They escape
waste management streams and
accumulate in our environment,
especially in the form of marine
litter. Once discarded, plastic
carrier bags can last for hundreds
of years. Marine littering is
increasingly recognized to be a
major global challenge posing a
threat to marine eco-systems and
animals such as fish and birds.
There is also evidence indicating
large accumulation of litter in
European seas.
In 2010, an estimated 98.6 billion
plastic carrier bags were placed
on the EU market, which amounts
to every EU citizen using 198
plastic carrier bags per year. Out
of these almost 100 billion bags,
the vast majority are lightweight
bags, which are less frequently
re-used than thicker ones. Con-
sumption figures vary greatly
between Member States, with
annual use per capita of light-
weight plastic carrier bags rang-
ing between an estimated 4 bags
in Denmark and Finland and 466
bags in Poland, Portugal and
Slovakia.
For more information:
Click here to link to the draft
proposal and to the study. •Reprinted from European Com-
mission press release, Brussels,
November 4, 2013.
IN 2010 AN ES T IMATED 98 .6B I L L ION P LAS T ICCARR I E R BAGSWERE P LACEDON THE EU MARKE T.
7
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
C A N A D A :
PACKAGING & PRINTED PAPERPROGRAMS ACROSS CANADA:LOOK BACK & LOOK FORWARDBY CANAD IAN S T EWARDSH I P S E RV ICES A L L I ANCE
Businesses participating in Pack-
aging and Printed Paper (PPP)
programs across Canada (also
known as “Blue Box” programs)
have been advocating for a
simpler way to interact with
stewardship programs for the
better part of a decade.
As provincial governments regu-
lated new PPP programs in differ-
ent provinces the business
community responded by creat-
ing a number of stand-alone
provincial stewardship organiza-
tions (SO (Ontario)—2003; EEQ
(Quebec)—2005; MMSM (Mani-
toba)—2010) resulting in
duplication of administrative
investments and a lack of coordi-
nation and sharing of best
practices across provincial juris-
dictions. The fragmentation of
data and management systems
also interfered with the ability to
systematically identify cost driv-
ers and scale up efforts to man-
age or oversee reverse supply
chains for PPP consistently over
a broader geography. Ultimately,
this arrangement has led to
higher costs and a fragmented
experience for Canadian con-
sumers whose recycling services
differ markedly from one province
to another and from one munici-
pality to another.
In the fall of 2012, Canadian
Stewardship Services Alliance
(CSSA) was formed to begin
the process of harmonizing PPP
programs across the country and
to arrest the development of new
stand-alone organizations in
provinces that were at the early
stages of issuing regulations.
CSSA is a national, non-profit
organization, founded by leading
retailers and manufacturers,
bringing together key players to
achieve better recycling perform-
ance. We’re industry-led and
industry-funded, working on
behalf of Canadian businesses
that participate in stewardship
programs, as well as partnering
with provincial stewardship
organizations, provincial govern-
ments, local governments and
waste management companies
to provide recycling and waste
management services, and lead-
ing expertise to nearly 20 million
Canadians. We are proud to
include the following members of
our family of recycling organiza-
tions managed under one admin-
istrative umbrella.
We expect this family to grow as
other provinces such as Alberta
and Nova Scotia (together with
the other Atlantic provinces)
begin to consider new extended
producer responsibility regula-
tory frameworks for packaging
and printed paper.
For our stewards (sometimes
known as “producers”) CSSA
aims to deliver a seamless,
administratively harmonized
service to make it easy and
convenient to discharge your
PPP obligations regardless of
how many provinces you do
business in.
2013 marked the first step in the
journey to deliver a One Window
approach to registration and
reporting for stewards. CSSA
assumed responsibility for the
WeRecycle portal and enabled it
for use by stewards reporting for
MMBC. 2014 will see the further
enhancement of this single sys-
tem to incorporate SO, MMSM,
and MMSW registration, report-
ing and invoice payment. The
fragmentation of data and man-
agement systems was success-
fully arrested. Our national
stewardship services centre
stands ready to assist you with
any question you may have
regarding any of the PPP pro-
grams we administer.
We are also standardizing a
number of stewardship program
features providing for a common
definition of who is an obligated
party, a national list of PPP
(Continued, see page 8)
CSSA WASFORMED TOBEG IN THEP ROCESS OFHARMONIZ INGPP P P ROGRAMSACROSS THECOUNTRY.
8
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
CSSA D I SCUSS ION PAPE R [CONT ’D ]
materials, consistent reporting,
invoicing and audit processes. By
introducing national standards
and developing national bench-
marks to measure program per-
formance, we will be in a better
position to control steward fees
and costs into the future.
Completing the administrative
harmonization process will take
time and there are a number of
areas where we see opportuni-
ties for future improvement. We
look forward to engaging with
stewards and learning more
from you about what makes
an optimal stewardship services
experience.
On the legislative and regulatory
front—harmonization is more
complex and, arguably, a bigger
prize to achieving some of the
results we seek. We will work
with provincial governments to
ensure that regulatory frame-
works are harmonized to the
greatest extent possible and
we will advocate for core issues
in all legislative frameworks.
Provincial and local governments
can be confident that we will
develop program plans that are
consistent across the country in
order to promote predictability
and stability for all our stewards,
consumers and government
stakeholders. As a national
organization with a perspective
that spans provincial borders,
CSSA aspires to stimulate a
different dialogue, and offer
non-partisan, evidence-based
perspectives on the design of
programs, the nature and scope
of regulatory incentives to deliver
desired policy outcomes, and the
best ways for engaging the con-
sumer to maximize participation
and support. •Reprinted from Part 1, CSSA’s
Annual Steward Meeting,
October 31, 2013. Click here
to view the full report.
CSSA AS P I R E S TO S T IMU LAT E A D I F F E R ENT D I A LOGUE ANDOFFE R NON -PART I SAN P E RS P ECT I V ES .
9
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
C A N A D A :
BRIT ISH COLUMBIA EPR FEES 3.5TIMES HIGHER THAN ONTARIOBY ENV I RONMENTA L PACKAG ING INTE RNAT IONA L
Multi Material British Columbia
(MMBC) last week announced
the 2014 fees for its residential
stewardship plan for packaging
and printed paper that are an
average of 3.5 times higher than
Ontario’s—with some signifi-
cantly higher, most notably:
• “steel packaging,” which is
5.06 cents/kg in Ontario com-
pared to 52 cents/kg in British
Columbia
• “other aluminum packaging,”
which is 6.57 cents/kg in Ontario
and 45 cents/kg in British
Columbia
MMBC cited several reasons for
the higher fees:
• British Columbia is a full EPR
program (stewards pay 100% of
the costs) with a much higher
target recycling rate (75%) com-
pared to Ontario (50% and 60%,
respectively)
• The program has higher supply
chain costs due to a number of
factors, including geography,
population density and carbon
taxes
• An existing comprehensive
deposit system for beverage
packaging that runs parallel
to the packaging and printed
paper program, resulting in a
loss of aluminum and PET
revenues
Comparative material fees by
province are available online:
Click to view the report. •Reprinted from EPI News Alert,
October 31, 2013.B LUE BOX F E ESAVERAGE 3 .5T IMES H IGHERIN B R I T I SH COLUMB IA THANIN ONTAR IO .
10
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
I N S U R A N C E I S S U E S :
DO YOU KNOW YOUR EQUIPMENT RISKS?BY TODD S INCOCK , HUB INTE RNAT IONA L
Since your business depends on
equipment to function properly,
to keep it going and to maintain
a revenue stream, a breakdown
could create a potentially devas-
tating financial impact.
Due to sophisticated and rapidly
changing technology, virtually all
of today’s business equipment
contains sensitive and fragile
components that are very sus-
ceptible to damage. The total
cost of a breakdown—the equip-
ment itself, consequential dam-
age, business interruption, and
resulting lost income and cus-
tomers—can be tremendous.
Unfortunately, a standard prop-
erty insurance policy will not
cover these types of losses.
Add it all up and you begin to
see why Equipment Breakdown
coverage makes perfect sense.
Equipment Breakdown coverage
pays for the loss that results
when equipment is damaged by
mechanical breakdown, power
surges, electrical short circuits,
overload, electrical arcing, motor
burnout or centrifugal force—
even if caused by operator error.
What Are the Most Common
Equipment Breakdowns?
Common breakdowns include
production machinery, electrical
systems, air conditioning and
refrigeration, computers and
communication equipment,
boilers, and mechanical
equipment.
Know your coverage, know
your risk. •
THE TOTA L COSTOF EQU I PMENTBREAKDOWNSCAN BE T R EMENDOUS .
11
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
12
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
B I O D E G R A D A B I L I T Y :
FEDERAL TRADE COMMISSIONPROTECTING AMERICA’S CONSUMERSBY M I TCHE L L J . KATZ , OF F ICE OF PUB L IC A F FA I R S
The Federal Trade Commission
today announced six enforce-
ment actions, including one that
imposes a $450,000 civil penalty
and five that for the first time
address biodegradable plastic
claims, as part of the agency’s
ongoing crackdown on false
and misleading environmental
claims.
The plastic cases include a com-
plaint against a company that
markets an additive it claims
makes plastic products
biodegradable and four com-
plaints and proposed consent
orders against companies that
marketed various plastics with
allegedly false and unsupported
claims that their products were
biodegradable. In the civil penalty
case, the FTC filed a complaint
and consent order against a
company for violating a 1994
FTC order that prohibited it from
making unsupported green
claims for its paper plates
and bags.
All of these cases are part of the
FTC’s program to ensure compli-
ance with the agency’s recently
revised Green Guides. The Com-
mission publishes the Guides
to help businesses market their
products accurately, providing
guidance as to what constitutes
deceptive and non-deceptive
environmental claims.
“It’s no secret that consumers
want products that are environ-
mentally friendly, and that com-
panies are trying to meet that
need,” said Jessica Rich, Director
of the Federal Trade Commis-
sion’s Bureau of Consumer
Protection. “But companies that
don’t have evidence to support
the environmental claims they
make about their products erode
consumer confidence and under-
mine those companies that are
playing by the rules.”
Each of the FTC’s plastics matters
and, where appropriate, the
proposed consent order, and
the paper products civil penalty
settlement are detailed below.
ECM Biofilms, Inc. is based in
Ohio and markets its additives
(which allegedly make plastic
products biodegradable) under
the trade name MasterBatch
Pellets. It advertises its additives
on its website and through mar-
keting materials, such as fliers
and brochures that are available
to distributors and manufacturers
that incorporate ECM additives
into their products. According to
the complaint, ECM also issues
its own “Certificates of Biode -
gradability of Plastic Products,”
which ECM allegedly uses to
convince its customers and end-
use consumers that its additive
makes plastic products
biodegradable.
ECM allegedly claimed, for exam-
ple, that “plastic products made
with [its] additives will break
down in approximately nine
months to five years in nearly all
landfills or wherever else they
may end up.” The complaint
alleges that these purportedly
biodegradable plastics do not in
fact biodegrade within a reason-
ably short period of time after
disposal in a landfill. Moreover,
the complaint alleges that ECM
has no substantiation to support
its claims that its additive makes
plastic biodegradable.
The Commission complaint
charges ECM with violating the
FTC Act by misrepresenting that:
1) ECM plastics (plastics made
with ECM additives) are biode -
gradable and will completely
break down within a reasonably
short period of time after cus-
tomary disposal; 2) ECM plastics
are biodegradable in a landfill;
3) ECM plastics are biodegrad-
able in a stated qualified time-
frame; and 4) that various
scientific tests prove ECM’s
biodegradability claims. Finally,
the complaint charges ECM with
providing its customer and inde-
pendent distributors—through
the distribution of its promo-
tional materials—with the means
to deceive consumers. The notice
order attached to the complaint
(Continued, see page 13)
F TC CRACKSDOWN ON M I S L EAD INGENV I RONMENTA LMARKE T INGCLA IMS .
13
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
would, among other things,
prohibit ECM from engaging in
each violation alleged in the
complaint.
The FTC’s complaints against the
following companies charge
them with misrepresenting that
plastics treated with additives
are biodegradable, biodegrad-
able in a landfill, biodegradable
in a certain timeframe, or shown
to be biodegradable in a landfill
or that various scientific tests
prove their biodegradability
claims. The FTC also alleges that
the companies lacked reliable
scientific tests to back up these
claims.
American Plastic Manufacturing
is based in Seattle, Washington,
and was an ECM customer until
at least December 2012. The FTC
alleges that APM advertised its
plastic shopping bags on its web-
site as biodegradable, and sold
them to distributors nationwide.
APM’s marketing materials
claimed that its products were
biodegradable based on the use
of the additives sold by ECM.
CHAMP, located in Marlborough,
Massachusetts, also was an ECM
customer and advertised on its
website that its plastic golf tees
were biodegradable. CHAMP sold
the tees both online and in brick
and mortar stores throughout
the United States. The company’s
marketing materials claimed that
the ECM additive made its prod-
ucts biodegradable.
Clear Choice Housewares, Inc.
based in Leominster, Massachu-
setts, was a customer of an addi-
tive manufacturer called Bio-Tec
Environmental. Clear Choice sold
what it claims are biodegradable,
reusable plastic food storage
containers on its website, as well
as in retail stores nationwide.
Clear Choice’s marketing materi-
als claimed its products were
biodegradable based on the
application of a Bio-Tec product
called Eco Pure. The FTC alleges
that Clear Choice made false and
unsubstantiated claims that Eco
Pure made its products “quickly
biodegradable in landfills.”
Carnie Cap, Inc., based in East
Moline, Illinois, incorporated
Eco-One, an additive manufac-
tured and marketed by Ecologic,
into its plastic rebar cap covers.
Carnie Cap advertised the caps
on its website and sold them
through various distributors
nationwide. It claimed, with no
qualification, that the Eco-One
product makes it plastic rebar
cap covers “100 % biodegrad-
able.”
The proposed consent orders
settling the FTC’s complaints are
essentially the same. They pro-
hibit the four companies from
making biodegradability claims
unless the representations are
true and supported by compe-
tent and reliable scientific
evidence. Consistent with the
Green Guides, the companies
must have evidence that the
entire plastic product will com-
pletely decompose into elements
found in nature within one year
after customary disposal
(defined as disposal in a landfill,
incinerator, or recycling facility)
before making any unqualified
biodegradable claim.
For qualified claims, the compa-
nies must state the time required
for compete biodegradation in
a landfill or the time to degrade
in a disposal environment near
where consumers who buy the
product live. Alternatively, the
companies may state the rate
and extent of degradation in a
landfill or other disposal facility
accompanied by an additional
disclosure that the stated rate
and extent do not mean that
the product will continue to
decompose.
The proposed consent orders
also make it clear that ASTM
D5511 (a test standard commonly
used in the additive industry)
cannot substantiate unqualified
biodegradable claims or claims
beyond the results and parame-
ters of the test, and that any test-
ing protocol used to substantiate
degradable claims must simulate
the conditions found in the
stated disposal environment.
AJM Packaging Corporation
manufactures paper products,
including paper plates, cups,
bowls, napkins, and bags, for
sale throughout the United
States. Based in Bloomfield Hills,
Michigan, the company touts it-
self as a “leading manufacturer
of these products,” and refers to
its lunch bags and Green Label
paper plates as national brand
leaders.
According to the FTC, through its
recent marketing practices, AJM
violated a July 19, 1994, Commis-
sion consent order that barred
it from representing that any
product or package is degrad-
able, biodegradable, or photo -
degradable unless it had
competent and reliable scientific
evidence to substantiate the
(Continued, see page 14)
F TC CHA L L ENGES DECEP T I V E B IODEGRADAB L E C LA IMS [CONT ’D ]
THE F TC WORKSFOR CONSUMERSTO P R EVENTF RAUDU L ENT, D ECEP T I V E ANDUNFA I R BUS INESSP RACT ICES .
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T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
claims. The order defines the
terms “competent and reliable
scientific evidence,” as well
as what constitutes a “product
or package,” including plates
and bags.
Despite the terms of the order,
AJM began making new environ-
mental claims for a number of its
papers products, including
claims that they were “biode -
gradable,” “compostable” or
both. AJM made these claims for
some of its most popular prod-
ucts, including Nature’s Own
Green Label and Gold Label
papers plates, AJM lunch bags,
AJM grocery bags, and Bio-Save
Lawn & Leaf Bags. The packaging
for AJM’s paper plates also
prominently stated that they are
“recyclable.”
Based on this conduct, the FTC’s
complaint charges AJM with vio-
lating the 1994 order by failing
to have competent and reliable
evidence to substantiate claims
that: its products will biode-
grade within one year when dis-
posed in a landfill; its products
will compost in a safe and timely
manner in a home composting
pile; and its paper plates are
recyclable.
In settling the FTC’s current com-
plaint, AJM agrees to vacate the
prior Commission order and
enter into a new order that con-
tains new language and defini-
tions that reflect updates to the
Green Guides that were finalized
last year. Specifically, the up-
dated order bars AJM from mak-
ing unsubstantiated claims that a
product or package is biodegrad-
able, compostable, recyclable, or
offers an environmental benefit
and requires AJM to disclose
information needed to qualify
certain green claims to avoid
deception.
The court order also requires AJM
to pay a $450,000 civil penalty
for violating the 1994 order and
enjoins AJM from violating the
new order. The FTC can seek
additional penalties if AJM vio-
lates the new order in the future.
Green Marketing Consumerand Business EducationThe FTC recently released several
business and consumer educa-
tion resources designed to help
users understand its Green
Guides and environmental mar-
keting in general. These include:
1) “Environmental Claims – Sum-
mary of Green Guides,” a four-
page summary of the changes
in the Guides; 2) “The Green
Guides,” a video explaining high-
lights of the changes; 3) a new
page on the FTC Business Center,
with links to legal documents,
the Guides and other “green”
content; 4) a Business Center
blog post; and 5) related con-
sumer information.
In addition, the FTC today posted
a new blog for consumers to help
them understand the issues sur-
rounding biodegradable plastics
claims in order to make informed
purchasing decisions. The post,
“Green Claim Check,” can be
found on the FTC’s website. The
Commission also has new infor-
mation for businesses, “Grading
your degradability claims: The
latest for green marketers.”
The Commission VotesThe Commission vote to issue
the administrative complaint
against ECM Biofilms was 4-0.
The case will be heard before an
administrative law judge at the
FTC, with the proceeding sched-
uled to begin on June 18, 2014.
The Commission vote to accept
the consent agreement packages
containing the proposed consent
orders for public comment in
each of the four biodegradable
plastics cases was 4-0. The FTC
will publish a description of the
consent agreement packages in
the Federal Register shortly. The
agreements will be subject to
public comment for 30 days,
beginning today and continuing
through November 29, 2013,
after which the Commission
will decide whether to make the
proposed consent orders final.
Interested parties can submit
written comments electronically
or in paper form by following the
instructions in the “Invitation to
Comment” part of the “Supple-
mentary Information” section.
Comments in paper form should
be mailed or delivered to: Fed-
eral Trade Commission, Office of
the Secretary, Room H-11, and
600 Pennsylvania Avenue, N.W.,
Washington, DC 20580. Com-
ments also can be filed electroni-
cally: Click here to access the
links from FTC website.
The Commission vote approving
the complaint against AJM was
5-0, with former Chairman Jon
Leibowitz and former Commis-
sioner J. Thomas Rosh participat-
ing. The vote to approve the
stipulated final order was 4-0.
The complaint was referred to
the Department of Justice and
then back to the FTC. The FTC
filed the complaint and stipu-
lated order in the U.S. District
Court for the District of Columbia
on October 1, 2013.
NOTE: The Commission author-
izes the filing of a complaint
when it has “reason to believe”
that the law has been or is being
violated, and it appears to the
Commission that a proceeding
is in the public interest.
NOTE: The Commission refers
a complaint to the DOJ for filing
when it has “reason to believe”
that the law has been or is being
violated and it appears to the
Commission that a proceeding
is in the public interest. The
order has the force of law when
approved and signed by the
district court judge.
The Federal Trade Commission
works for consumers to prevent
fraudulent, deceptive, and unfair
business practices and to pro-
vide information to help spot,
stop, and avoid them. To file a
complaint in English or Spanish,
visit the FTC’s online Complaint
Assistant or call 1-877-FTC-HELP
(1-877-382-4357). The FTC enters
complaints into Consumer Sen-
tinel, a secure, online database
available to more than 2,000 civil
and criminal law enforcement
agencies in the U.S. and abroad.
The FTC’s website provides free
information on a variety of con-
sumer topics. Like the FTC on
Facebook, follow us on Twitter,
and subscribe to press releases
for the latest FTC news and
resources. •Reprinted from FTC press release,
October 29, 2013. Click here to
view the online report.
F TC CHA L L ENGES DECEP T I V E B IODEGRADAB L E C LA IMS [CONT ’D ]
15
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
B I O D E G R A D A B I L I T Y :
FTC CRACKS DOWN ONBIODEGRADABIL ITY CLAIMSBY J E R EMY CARRO L L , P L AS T ICS NEWS
The U.S. Federal Trade Commis-
sion has taken aim at five plastics
companies, alleging they used
false or misleading claims of
biodegradability. But one of
those companies plans to fight
the charges, saying it will win in
the long run.
In an announcement of the
action, the FTC said ECM
BioFilms Inc., American Plastic
Manufacturing, CHAMP, Clear
Choice Housewares Inc. and
Carnie Cap Inc. all made claims of
their plastic being biodegradable
which were unsupported, the
agency said. All but ECM
BioFilms have agreed to a
consent agreement.
ECM BioFilms, based in
Painesville, Ohio, claims that
plastic products manufactured
with the company’s additives will
biodegrade in biologically active
environments after more than a
year. The company uses an aster-
isk on its marketing materials
when using the word “biodegrad-
able,” pointing to the fact that it
will take longer than a year for
the material to biodegrade in
landfills.
According to FTC's latest Green
Guides, a company is allowed to
market a product as biodegrad-
able without a qualifier if the
product breaks down in less than
a year. FTC does not have guide-
lines on how to market products
with a qualifier, the company
alleges.
“We believe fully that we’re going
to win in the long run,” ECM
BioFilms President Robert
Sinclair said in an interview
with Plastics News.
He said the company has inde-
pendent tests that show the
products biodegrade in atmos-
pheres that mimic landfills. A
previous notice on its products
said it would biodegrade in nine
months to five years.
“[The FTC] can’t get themselves
around it. They are going against
the science,” Sinclair said.
The FTC alleges that the company
misrepresents that plastics made
from the additives are biodegrad-
able and will completely break
down “within a reasonably short
period of time,” that the plastics
will biodegrade in a landfill and
that scientific tests prove ECM’s
claims.
The complaint says ECM should
be prohibited from making the
claims.
Two of the other companies
named by FTC, American Plastic
Manufacturing and CHAMP, are
customers of ECM. American
Plastic Manufacturing sold
plastic shopping bags that were
marketed as biodegradable and
CHAMP sold plastic golf tees
marketed as biodegradable,
FTC alleges.
Clear Choice Housewares and
Carnie Cap are facing similar
allegations. FTC said Clear Choice
Housewares was a customer of
another additive manufacturer,
Bio-Tec Environmental, and mar-
keted “biodegradable” plastic
food storage containers. Carnie
Cap used an additive manufac-
tured and marketed by Ecologic
for its plastic rebar cap covers,
which claimed was “100 percent
biodegradable,” FTC alleged.
All of the companies are not
facing a financial penalty,
but agreed to stop using the
marketing.
FTC said the action is to ensure
compliance with the agency’s
Green Guides.
“It’s no secret that consumers
want products that are environ-
mentally friendly, and that com-
panies are trying to meet that
need,” said Jessica Rich, director
of the FTC’s Bureau of Consumer
Protection, in a statement. “But
companies that don’t have evi-
dence to support the environ-
mental claims they make about
their products erode consumer
confidence and undermine those
companies that are playing by
the rules.”
FTC has scheduled a hearing for
ECM in June. •Copyright © 1995-2013 Crain
Communications Inc. All Rights
Reserved.
F TC CRACKSDOWN ON M I S L EAD INGENV I RONMENTA LMARKE T INGCLA IMS .
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T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
R E C Y C L I N G
RECYCLING OF HDPE BOTTLESTOPS 1 BILL ION POUNDS IN2012BY J ENN I F E R K I L L INGER , AMER ICAN CHEM I S T RY COUNC I L
Plastic bottle recycling by con-
sumers increased 161 million
pounds in 2012, edging up 6.2
percent, to reach nearly 2.8 bil-
lion pounds for the year, accord-
ing to figures released jointly
today by the Association of Post-
consumer Plastic Recyclers (APR)
and the American Chemistry
Council (ACC). The recycling rate
for all plastic bottles rose 1.6 per-
cent to 30.5 percent for the year.
The 23rd annual National Post-
Consumer Plastics Bottle Recy-
cling Report marks the twenty-
third consecutive year that Amer-
icans have increased the pounds
of plastic bottles returned for
recycling. The number of pounds
of used bottles collected in the
United States has grown each
year since the industry survey
began in 1990.
During 2012, the collection of
high-density polyethylene
(HDPE, #2) bottles—a category
that includes milk jugs and bot-
tles for household cleaners and
detergents—rose 45.3 million
pounds to top 1 billion pounds
for the first time, helping to
boost the recycling rate for HDPE
bottles from 29.9 to 31.6 percent.
“We are very encouraged by the
steady growth in plastic bottle
recycling,” said Steve Alexander,
executive director of APR. “Used
plastics are valuable materials,
and recyclers rely on all of us to
make sure these resources make
it into a recycling bin.”
“Thanks to increased consumer
access to recycling programs and
growth in single-stream collec-
tion—whereby consumers place
all recycled materials into a single
bin—plastics recycling is one of
the easiest things we can do to
benefit the planet,” added Steve
Russell, vice president of plastics
for American Chemistry Council.
“In the United States, we have
the capacity to recycle more used
plastics than we are currently
collecting, and innovative manu-
facturers are using these materi-
als in new and exciting ways.
Each of us can help by doing our
part to get more used plastics
into a recycling bin,” Russell
said.
Alexander and Russell offered
three simple tips to help con-
sumers recycle more of their
plastic bottles:
• Bring it back. If you empty a
plastic bottle on-the-go, bring it
back to a bin.
• Recycle all plastic bottles.
Today, recyclers collect all types
of plastic bottles, regardless of
the number, or resin identifica-
tion code, printed on the bottom.
• Don’t forget about caps! Recy-
clers want both caps and bottles,
so please remember to twist
caps back on bottles after use.
This year’s survey of plastic bot-
tle recycling also found that the
collection of polypropylene (PP,
#5) bottles rose to nearly 47 mil-
lion pounds, an annual increase
of 7.2 percent, with 73 percent of
that material processed domesti-
cally as PP, rather than mixed
with other resins. Domestic
processing of postconsumer PP
bottles increased 14 percent to
reach 43.5 million pounds. Al-
though PP caps and non-bottle
containers are widely collected
for recycling in the United States,
these data are released in a
separate report on recycling non-
bottle rigid plastics, which will be
released in the coming weeks.
Together, polyethylene tereph-
thalate (PET, #1) and HDPE bot-
tles continue to make up over 96
percent of the U.S. market for
plastic bottles with polypropy-
lene bottles comprising half of
the remaining 4 percent.
Exports of HDPE bottles rose 30
million pounds to 201 million
pounds in 2012, while imports of
postconsumer HDPE decreased
by 35 percent to 33.1 million
pounds, which, combined with
increased collection and exports,
resulted in slightly lower pur-
chases for U.S. reclamation
plants.
(Continued, see Rates, page 18)
THE R ECYC L INGRATE FOR A L LP L AS T IC BOT T L E SROSE 1 .6 P E R -CENT TO 30 .5P E RCENT FORTHE Y EAR .
17
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
R E C Y C L I N G
BEVERAGE CONTAINER RECYCLINGSTRUGGLES TO GAIN GROUNDBY BOBBY E L L IO T T, R E SOURCE R ECYC L ING
A new study on beverage con-
tainer recycling in the U.S. indi-
cates sales of beverage containers
continued to ascend between
2000 and 2010, but recycling rates
barely budged during the decade.
The solution? A national deposit
program, says the Container Recy-
cling Institute (CRI), which pre-
pared the report and cited the
effectiveness of 11 statewide
programs (this includes Delaware,
which no longer has a redemption
program, but did in 2010) in aiding
otherwise disappointing recycling
figures.
Released late last week, “Bottled
Up: Beverage Container Recycling
Stagnates (2000 – 2010)” states
that in 2010 our “national wasting
rate” reached 63.1 percent.
According to the study, approxi-
mately 153 billion of the 243
billion beverage containers sold
during the year were either “land-
filled, littered or incinerated.”
Accordingly, the recycling rate in
2010 was 36.9 percent, up from
2000’s rate of roughly 33 percent.
Those figures represent both
traditional and non-traditional
containers. Non-traditional
containers are defined by CRI
as including gable-top cartons,
aseptic drink boxes and foil
pouches. Traditional containers
include refillable and one-way
glass bottles, PET and HDPE
plastic bottles and steel and
aluminum cans.
The recycling rate of traditional
containers was 39.6 percent in
2010, increasing less than one per-
centage point from the 2000 rate.
While a CRI press release infers
that, between 2000 and 2010,
“the rate at which we recycled the
empty containers declined,” it is
worth noting that the national
recycling rate declined only when
compared with recycling rates dur-
ing the 1990s. During that decade,
container recycling rates were con-
sistently higher than current levels
and hit an all-time high of roughly
54 percent in 1992. Between 2000
and 2010, recycling rates, though
leaving much to be desired, in-
creased incrementally.
As the study points out, relatively
unchanged recycling behavior
over the period coincided, some-
what paradoxically, with increased
access to curbside recycling pro-
grams championed by the bever-
age industry and a vigorous
nationwide campaign to increase
recycling awareness. Recycling
rates for the containers, after inch-
ing above the 50 percent mark in
the early 1990s, dropped between
1995 and 2004, while a period of
slight growth occurred between
2005 and 2010.
According to the report, several
obstacles have stood in the way
of increasing recycling sufficiently,
including a major industry switch
from aluminum cans to PET con-
tainers, which have a significantly
lower recycling rate. The study
also points to the rise of out-of-
home consumption and the lack
of substantial legislation as major
hindrances to upping recycling
activity.
“Recycling rates have stagnated in
large part due to a dramatic in-
crease in consumption of these
beverages, especially at busi-
nesses and in public spaces where
recycling bins are scarce,” CRI
president Susan Collins said in the
press release. “Another key factor
in the decline in recycling rates is
the unwillingness of state legisla-
tures to enact effective recycling
policies, especially new or ex-
panded container deposit laws.”
On an economic level, the scrap
value of beverage containers
entering the waste stream in 2010
was an estimated $3.8 billion. Just
$1.6 billion worth of the material
was recycled – about 42.1 percent
of the possible value of the scrap
material.
Sales of traditional bottles and
cans grew by 22 percent between
2000 and 2010 “partly due to U.S.
population growth of 9.6 percent
during the period,” the study
states. Americans consumed a
whopping 784 beverage contain-
ers per person in 2010, easily
surpassing 2000's average of 629
beverage containers per capita.
Sales of plastic bottles led the
charge, with sales of those
(Continued, see Bottle, page 18)
DUR ING THE’90S CONTA INERR ECYC L INGRATES WERECONS I S T ENT LYH IGHER THANCURRENT L E V E L S .
18
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
BOTT L E R ECYC L ING [CONT ’D ]
products increasing from 8.4
billion units sold in 2000 to 42.6
billion in 2010.
According to the study, container
recycling during the decade did
see a positive impact from the 11
deposit programs in place by the
end of 2010. Those programs
reported recycling rates for con-
tainers covered under law of 66
to 96 percent, outperforming the
rest of the country’s rate (roughly
30 percent). In addition, deposit
program states accounted for 46
percent of all recycling in 2010,
despite accounting for just 28
percent of the U.S. population.
Arguing that “beverage container
recycling must dramatically in-
crease across the country,” the
study proposes a national deposit
program modeled after the
statewide programs. The study
notes that “if a very modest 5-cent
deposit were placed on all carbon-
ated and non-carbonated bever-
ages throughout the U.S., a 75
percent recycling rate would be
achieved across the board.”
“Several states are interested in
introducing legislation for a con-
tainer deposit system,” Collins
told Resource Recycling. “Of
course, a national container
deposit system would have supe-
rior environmental benefits, and
would also create a more uniform
system for consumers.” •Reprinted from www.resource-re-
cycling.com, November 7, 2013.
The full 2021 report National
Post-Consumer Plastics Bottle
Recycling Report is available on
the “Reports and Publications”
section of ACC’s website
(www.americanchemistry.com)
and on APR’s website
(www.plasticsrecycling.org).
Data on PET recycling referenced
in the report were separately
funded and published by APR
and the National Association for
PET Container Resources (NAP-
COR). A separate report, entitled
2012 Report on Post-Consumer
PET Container Recycling Activity,
is available on APR’s website.
The survey of reclaimers in the
study was conducted by Moore
Recycling Associates, Inc.
Resources for municipal
recyclers are available at:
www.allplasticbottles.org and
www.recycleyourplastics.org. •Reprinted with permission.
R ECYC L ING RAT ES [CONT ’D ]
CALRECYCLE F ILM RECYCLINGThe California agency in charge
of overseeing a state law requir-
ing retailers to collect plastic
bags and film for recycling says
it has no funds to properly track
the impact of the law.
Despite the abundance of raw
data available to the agency, Cal-
Recycle has not been able to an-
alyze the information since
2009, when the recycling rate of
plastics bags reached 3 percent.
“Work on the program at this
point consists of a few weeks of
data entry by entry-level staffers
when the reports come in during
the spring,” CalRecycle
spokesman Mark Oldfield told
the Associated Press.
Last year lawmakers renewed
the program through 2020, but
did not provide Oldfield’s team
with additional funding to help
with data analysis.
Each year retailers in the state
are required to provide CalRecy-
cle with data, including how
many pounds of plastics bags
were purchased during the year
and how many pounds of bags
were returned for recycling.
According to information
obtained by the AP, California
retailers purchased 62.3 million
pounds of bags in 2012, down
from 107.4 million pounds in
2008. In addition, a total of 4
million pounds of bags and 27
million pounds of mixed bags
and plastic film were reportedly
returned for recycling in 2012.
Without proper follow-up on the
data, however, a 2012 recycling
rate for plastic bags cannot be
generated, leaving the state with
little sense of whether the ex-
tended program is working.
Even without recycling rates,
Mark Murray, executive director
of Californians Against Waste,
told the AP there wasn’t much
reason to believe plastic bag
recycling had increased signifi-
cantly. “I’m not sure having state
bean-counters counting recy-
cling that’s not happening is all
that useful,” he said.
As local bag bans have gained
steam throughout the state, a
potential statewide ban on plas-
tic bags could be taken up as a
viable alternative to the current
program, which does not require
state retailers to charge con-
sumers for plastic bags.
In August, CalRecycle forecasted
that its beverage counter recy-
cling program, hampered by out-
of-state fraud and high recycling
rates, would be insolvent by
March 2015. •Reprinted from www.resource-
recycling.com, November 1,
2013.
19
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
CALRECYCLE GRAPPLES WITH CASHSHORTFALLThe beverage container recycling
program in America’s most pop-
ulous state is running an operat-
ing deficit of about $100 million,
and state officials are looking
at a number of ways to balance
the books.
CalRecycle is undertaking a wide
range of regulatory and pro-
grammatic changes to address
the deficit, reports Jose Ortiz,
the agency’s deputy director. For
one, the agency eliminated the
payment system for commingled
loads of materials delivered to
redemption centers. Also, as a
result of a variety of enforcement
efforts, the volume of containers
coming into California by truck
from out of state has dropped
dramatically, CalRecycle says.
However, the agency says it is
looking into other fraud avenues
—the possibility of containers
being railroaded into the state,
for instance, or coming via rural
side roads. According to some
estimates, eliminating program
fraud would balance the
agency’s books.
Tentative projections suggest
CalRecycle will likely run out of
cash in 2015. If that occurs, state
officials will reduce programs.
One idea is to have all programs
take a proportional reduction,
while another plan calls for
specific programs to be targeted
for budget cutbacks. “It’s hard
to make these decisions,” says
Ortiz. “It’s a bit of a Rubik’s
Cube.” •Reprinted from www.resource-
recycling.com, November 7,
2013.
20
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
R E C Y C L I N G
‘T IS THE SEASON FOR HOLIDAYWASTE REDUCTION TIPSBY ME L INDA BE E R , CA L R ECYC L E
It’s the most wonderful time of
the year, but the weeks between
Thanksgiving and New Year’s Day
are notorious for high volumes of
waste. More than 1 million tons
of additional waste is generated
each week nationwide during
this period.
“There are many festive ways to
reduce, reuse, and recycle during
the holiday season without cutting
back on the good cheer,” CalRecy-
cle Director Caroll Mortensen said.
“CalRecycle proposes some new
traditions to reduce holiday waste
that will help protect the planet
and save money, while teaching
our kids about environmental
stewardship.”
If you dream of a green Christmas,
celebrate using the following tips:
• Precycle and freecycle before
you hit the mall. Take an inventory
of things you no longer use, and
donate those old toys and clothing
to a thrift store. Even if the clothes
can no longer be worn, thrift
stores will generally sell them to
textile recyclers. Only got $20 in
your pocket? A thrift shop is also a
great place to find fantastic and
unique Christmas gifts on the
cheap. Frugal shopper Max Wong
provides some great gift ideas.
• Remember to bring reusable
bags on your shopping trips.
• Consider gift bags or baskets,
which can be used year after year,
or a reusable bag instead of wrap-
ping paper. Feeling crafty?
Earth911 has 11 clever, creative,
and cheap ideas to make your
gifts shine.
• Rechargeable batteries are truly
a gift that keeps on giving to run
those holiday toys and gadgets.
They greatly reduce the amount of
hazardous waste that harms the
environment when thrown away,
which is not only naughty, but
illegal. Visit CalRecycle for more
information, including how to
safely dispose of batteries.
• If Santa deemed you nice and
you scored a new flat-screen,
tablet, smart phone, or other
electronic gadget, make sure to
responsibly e-cycle your old tech-
nology. Many nonprofits will
accept working cell phones and
computers. If they don’t work, be
sure to dispose of them safely,
and remember it is illegal to throw
them in the trash due to the toxic
materials they contain. Check out
eRecycle.org for reuse and recy-
cling drop-off locations for cell
phones, e-waste, and batteries.
• Rather than mailing paper
holiday cards, consider sending
e-cards or an e-newsletter. CalRe-
cycle really likes the social options
that Mashable offers in its “four
ways to replace Christmas cards
with social media.”
• Food for thought: Thirteen per-
cent of landfill waste is food and
an estimated 36 million tons of
food waste went to U.S. landfills
in 2011. Err on the side of Scrooge
when crafting your menus—it’s
good for the waist, and preventing
waste. Also, remember that food
scraps can go into green waste
bins and will be composted or
transformed into energy sources
instead of ending up in landfills,
creating methane and carbon
dioxide gases.
• Remember to treecycle! Christ-
mas trees are commonly turned
into mulch, or chipped and used
for playground material, hiking
trails, paths, and walkways. They
can also be used for beachfront
erosion prevention, lake and river
shoreline stabilization, and fish
and wildlife habitat. Ask your local
Christmas tree grower about
programs near you, check out
CalRecycle’s page, or visit Earth
911 for additional information on
Christmas tree recycling programs.
• Make your New Year’s resolution
to practice the “three Rs” every
day: Reduce, reuse, and recycle!
For more ideas, please see CalRe-
cycle’s Holiday Waste Reduction
page. •Reprinted from Cal Recycle press
release: www.calrecycle. ca.gov,
December 10, 2013.
THER E A R E MANYFES T I V E WAYS TOREDUCE , R EUSEAND R ECYC L EDUR ING THEHOL IDAYS .
21
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
R E C Y C L I N G
WPA MEMBER OFFERED REDUCEDPRICE ON RECYCLING REPORTBY P LAS T ICS NEWS
A new analysis of the North
American plastics recycling
market by Plastics News can help
guide business decisions in 2014.
The report, titled “Plastic Recy-
cling Market Review and Outlook
2014 – North America – Post-
Consumer and Post-Industrial,”
offers an in-depth analysis of the
plastics recycling market for
North America, including discus-
sions of market conditions,
opportunities, threats and strate-
gies implemented by leading
post-consumer and post-indus-
trial material recyclers.
The report uses charts and
graphs to provide insight into key
market indicators, including:
• Resin pricing trends over five
years for both virgin and recycled
material.
• Resin production trends over
five years for post-consumer and
post-industrial waste.
• The impact of crude oil prices
on recycled resin.
• Recycled rates for U.S., Europe,
Latin America and Asia.
The 43-page report, in easy-to-
use PDF format, reviews 26 lead-
ing recyclers and 15 equipment
manufacturers, assessing their
business strategies, challenges
and production outlook.
Experts also provide perspectives
from industry thought leaders
regarding their views on industry
trends, supply and demand out-
look and global growth initia-
tives. These Q&A interviews
include:
• Dr. Mike Biddle, founder and
president, MBA Polymers Inc.
• Scott Mouw, director, North
Carolina Division of Environmen-
tal Assistance and Outreach
• Doug Ritchie, owner, Star
Plastics
The report contains information
on companies that prospered in
2013 as well as some that were
not so successful.
There is also an update on
changes to the chasing arrows
recycling symbol that some
believe will cost them money
when molds have to be changed.
Plastics recycling markets are
complex and this report can help
leaders understand the trends
and make the best decisions for
their businesses.
The report regularly sells for
$499, but Western Plastics Asso-
ciation members can take advan-
tage of a discounted price of
$349 by ordering through this
special URL available only to WPA
members: www.plasticsnews.
com/recyclingreport-wpa.
Need more details about the
report? Visit www.plasticsnews.
com/section/store. •
WPA MEMBERSCAN TAKE ADVANTAGE OFA D I SCOUNTEDPR ICE OF $ 349 .
22
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
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24
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
S U S TA I N A B I L I T Y :
SC JOHNSON RELEASES 2013SUSTAINABIL ITY REPORT, HIGHLIGHTS PROGRESS ON ENVIRONMENTAL IMPACT BY SC JOHNSON
SC Johnson released its 2013
annual public sustainability
report today. The report shares
the latest information on the
company’s ongoing work to
achieve its 2016 environmental
goals by using more renewable
energy, cutting greenhouse gas
emissions, minimizing landfill
waste and developing innovative
products that use fewer resources
and require less packaging. SC
Johnson has reduced its global
manufacturing waste by 62 per-
cent and increased its use of re-
newable energy to 30 percent in
pursuit of these goals*.
“This report showcases our com-
mitment to sustainable develop-
ment and to serving the greater
good,” said Fisk Johnson, Chair-
man and CEO of SC Johnson. “As
a family company that has been
around for 127 years, we have
always believed that we have
both an opportunity and an obli-
gation to better the communities
in which we operate. We are con-
stantly challenging ourselves to
find ways to reduce our environ-
mental footprint while continuing
to produce the high-quality prod-
ucts that consumers expect and
deserve.”
SC Johnson’s commitment to
sustainability is shared across all
divisions of the company—it is
focused on making a positive
impact at every stage of product
development. This starts with
responsible supply chain decisions
and continues long after the
purchase date since many of its
products feature recyclable pack-
aging. The company’s investment
in helping consumers make
green choices through continu-
ous education and authentic
engagement brings this commit-
ment full circle.
Sustainability Initiatives Show-
case Commitment to People,
Planet and Products
Starting with its supply chain, SC
Johnson renewed its investment
in 2013 with the U.S. Agency for
International Development
(USAID) and the Norman Borlaug
Institute for International Agricul-
ture at Texas A&M University.
Together, SC Johnson and its
partners hope to strengthen and
expand the capacity of local
farming cooperative organiza-
tions in Rwanda and to further
increase production and quality
of the pyrethrum (py) they farm—
a natural insecticide used in well-
known products such as Raid®
and Baygon®.
Through Green Choices and
@GreenChoices—SC Johnson’s
website and Twitter account that
provide eco-friendly tips and
resources—the company engages
with consumers on how to
increase sustainable behaviors
such as recycling and saving
energy. SC Johnson launched
several products on the Green
Choices Marketplace this past
year that offer consumers easy
ways to reduce their environmen-
tal impact. Products include the
Smart Twist® cleaning system,
a refillable system for concen-
trated cleaners, and Ziploc®
Brand Compostable Bags for
use in commercial composting
programs.
SC Johnson recognizes the impor-
tant role that companies play
both individually and with indus-
try partners in advancing sustain-
able development. The company
sponsored the Regeneration
Roadmap, an initiative by Globe -
Scan and SustainAbility, to create
an integrated and comprehensive
plan for sustainable develop-
ment for the next generation.
The Roadmap focuses on the
ways that the private sector can
improve its overall sustainability
strategy, increase its credibility
and deliver results at greater
speed and scale.
In its efforts to serve the greater
good, the company invests in
disease prevention programs in
Southeast Asia and Africa and
(Continued, see page 25 )
FOR MORE THAN20 YEARS , SCJOHNSON HASSE T F I V E - Y EARGOALS TOGU IDE I T S A P P ROACH TOSUSTA INAB I L I T Y.
25
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
provides ongoing support to
local residents. In 2012/2013, SC
Johnson launched a comprehen-
sive campaign in Kuala Lumpur,
Malaysia, that included a Face-
book alert campaign, an educa-
tion competition for 100 schools
and a community dialogue with
expert panelists. The company
was able to reach thousands of
families and leveraged influential
media outlets to amplify the
dengue prevention dialogue. SC
Johnson also collaborates with
the Bill & Melinda Gates Founda-
tion in the fight against malaria.
SC Johnson continues to make
life better for communities
around the world through its
many philanthropic contribu-
tions. It has donated $3 million
in product donations to those in
need, including victims of Hurri-
cane Sandy. The company is also
committed to expanding the arts,
and it pledged $5 million to the
Smithsonian’s National Museum
of American History in Washing-
ton, D.C. to assist in the develop-
ment of the “American Enter prise”
exhibition as well as a state-of-
the-art conference center. The
center will serve as a venue for
educational outreach.
2013 SC Johnson Sustainability
Report Highlights
For more than 20 years, SC
Johnson has set five-year goals
to guide its approach to sustain-
ability, and it shares progress
and results on a regular basis.
Highlights include:
Smaller Footprint: SC Johnson
has invested in 10 major renew-
able energy initiatives around the
world over the last decade. With
the installation of two new 415-
foot-tall wind turbines at its
largest global manufacturing
facility, the company cuts 6,000
metric tons of greenhouse gas
emissions annually.
Less Waste: SC Johnson has recy-
cled roughly 8.5 million pounds
of waste at its largest global
manufacturing facility in Mt.
Pleasant, Wis., and seven SC
Johnson sites are now zero
landfill**.
Better Lives: For years, SC John-
son has educated Filipinos about
fighting dengue with its Baygon®
and OFF! ® products. Through its
work, the company has reached
1.65 million households, visited
more than 4,000 communities
and conducted more than 1,500
dengue educational caravans
in the Philippines.
Winning Products: SC Johnson’s
newest concentrated cleaners—
also available on the Green
Choices Marketplace—feature a
63 percent reduction in plastic
compared to a standard spray
bottle. The company has also
saved 900,000 pounds of resin
globally by using new Mr
Muscle® bottles.
To minimize waste, SC Johnson
encourages readers to view the
2013 sustainability report at
www.scjohnson.com/report. •*Global waste reduction is meas-
ured against a 2000 baseline,
and renewable energy is meas-
ured against a 2011 baseline.
**SC Johnson defines zero land-
fill as elimination of materials
sent to landfill through reuse and
recycling and, ultimately, without
the use of incineration.
ENV I RONMENTA L IMPACT [CONT ’D ]
26
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
S U S TA I N A B I L I T Y :
THE COCA-COLA COMPANY ANDFORD UNVEIL FORD FUSION ENERGI WITH PLANTBOTTLETECHNOLOGY INTERIOR • PlantBottle Technology™ from
The Coca-Cola Company is
applied for the first time beyond
PET packaging as part of the
interior fabric of a Ford Fusion
Energi plug-in hybrid research
vehicle
• The Fusion Energi research
vehicle uses PlantBottle
Technology for seat cushions,
seat backs, head restraints, door
panel inserts and headliners
• Fabric made from PlantBottle
Technology consists of up to 30
percent plant-based materials,
showing the broad potential of
two global consumer icons to
leverage renewable materials to
help replace petroleum and other
fossil fuels used for traditional
PET fabric
The Coca-Cola Company and Ford
Motor Company are fueling more
sustainable design by collaborat-
ing on a first-ever interior fabric
made from the same renewable
material used to produce Coca-
Cola’s PlantBottle Technology™
packaging.
The two companies today
unveiled a Ford Fusion Energi
plug-in hybrid vehicle with Coca-
Cola PlantBottle Technology
interior fabric surfaces covering
seat cushions, seat backs, head
restraints, door panel inserts and
headliners. The research vehicle
marks the first time PlantBottle
Technology is applied beyond
packaging, and affirms a joint
commitment by two global
consumer icons to develop inno-
vative new products produced
from renewable materials.
“By using PlantBottle Technology
in a plug-in hybrid, Ford and
Coca-Cola are showing the broad
potential to leverage renewable
materials that help replace petro-
leum and other fossil fuels, re-
ducing the overall environmental
impact of future vehicles,” said
John Viera, global director of
sustainability and vehicle
environmental matters at Ford.
The collaboration also demon-
strates the positive influence
that comes from combining two
of the most recognizable and
respected brands in the world.
The Cola-Cola Company and Ford
Motor Company together reach
billions of consumers in more
than 200 countries on six
continents.
The Ford Fusion Energi research
vehicle will be on display later
this month at the Los Angeles
Auto Show.
The idea behind the vehicle was
launched last year when Ford
and Coca-Cola research teams
came together to explore innova-
tion opportunities in more
sustainable products. Both
companies use PET, a durable,
lightweight plastic also known
as polyethylene terephthalate, in
a variety of products including
plastic bottles, fabrics and car-
pets. This provided a natural
opportunity to bring together
both recyclable and renewable
technologies.
Since The Coca-Cola Company in-
troduced PlantBottle Technology
to the market in 2009 as the first-
ever recyclable PET plastic bottle
made partially from plants, more
than 18 billion PlantBottle pack-
ages have been distributed in 28
countries resulting in more than
400,000 barrels of oil saved. If
PlantBottle interior fabrics were
migrated across the majority of
U.S. Ford models, it would dis-
place nearly 4 million pounds of
petroleum-derived materials, as
well as save the equivalent of
295,000 gallons of gasoline and
6,000 barrels of oil.
“This collaboration with Ford
demonstrates that PlantBottle
Technology can be applied any-
where PET plastic is traditionally
used, but with a lighter footprint
on the planet,” said Scott Vitters,
general manager, PlantBottle
packaging platform, The Coca-
Cola Company. “We are pleased
to share this technology with
(Continued, see page 27)
FORD MOTORCOMPANY ANDCOCA -COLACOMPANY AREFUE L ING MORESUSTA INAB L E DES IGN.
27
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
Ford, and look forward to contin-
uing to expand the application of
PlantBottle Technology.”
The PlantBottle-Fusion Energi
initiative is also encouraged by
the World Wildlife Fund, which
advises companies to look for
alternatives to fossil fuels.
“The Coca-Cola Company and
Ford Motor Company partnership
is a great example of how collab-
orations can help scale up posi-
tive changes to benefit the
environment,” said Erin Simon,
manager, business and industry,
packaging and material science,
World Wildlife Fund. “This atypi-
cal partnership is a great model
for other businesses to follow,
and can have a measurable
impact on critical environmental
issues.”
Building upon the success of
PlantBottle Technology, Ford has
been able to produce the first-
ever fiber that can be woven into
durable, automotive-grade PET
fabric from PlantBottle material.
Fusion Energi, a plug-in hybrid
version of Ford’s global midsize
car, was determined to be the
perfect vehicle on which to test
out the material.
Fusion Energi is Ford’s most fuel-
efficient sedan. It boasts an EPA-
rated total range of up to 620
miles and can drive up to 21
miles in electric-only mode—
which could help save customers
an estimated $6,850 in fuel costs
compared with an average new
car over the course of five years.
It offers the latest generation of
SmartGauge® with EcoGuide,
designed to monitor and influ-
ence driving behavior to improve
vehicle efficiency and help drivers
get the most from their car.
PlantBottle Technology material
integration builds on the current
2014 Ford Fusion’s environmental
innovations—innovations that
showcase a variety of more
sustainable materials throughout
the car, including:
• Sound-absorbing denim mate-
rial equivalent to more than two
average-sized pairs of blue jeans
in the car’s carpet liner
• Material equivalent to 38.9
clear-plastic 16-ounce recycled
bottles in select cloth-seat
Fusion models
• About 31,250 soybeans in the
foam found in Fusion seat cush-
ions. Today, Ford uses soy foam
in every vehicle built in North
America. Since its first applica-
tion in 2007, the use of soy foam
by Ford has reduced petroleum
production by more than 5 mil-
lion pounds and carbon dioxide
emissions by 20 million pounds
annually. •
SUS TA INAB L E DES IGN COL LABORAT ION [CONT ’D ]
TH I S ATY P ICA LPARTNERSH I P I SA GREAT MODE LFOR OTHER BUS INESSES TO FO L LOW.
29
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
L E G I S L AT I V E I S S U E S :
“BIODEGRADABLE” LABELING IN CALIFORNIABY CA L I FORN IANS AGA INST WASTE
As BPI members know, California
state law (Senate Bill 567, Public
Resources Code Sections 42355-
42358) limits “compostable”
claims to products that are BPI
certified or products which meet
ASTM D6400/D6868 Standard
Specifications. The same law pro-
hibits the term “biodegradable”
on plastic products and their
associated marketing material,
regardless of whether or not they
have BPI certification or meet
ASTM D6400/D6868.
It’s important to distinguish
between the two popular market-
ing terms—“biodegradable” and
“compostable.” “Compostable”
claims can be verified by ASTM
standard specifications that are
tied to pass-fail standards. Other
ASTM standards exist but are
Guidance documents or Test
Methods rather than Standard
Specifications, and provide no
pass/fail criteria. As an example,
ASTM D5511 is frequently refer-
enced on products and/or mar-
keting material. ASTM D5511 is
a Test Method for determining
anaerobic biodegradation of
plastic materials under high-
solids Anaerobic Digestion condi-
tions. This tells one how to run
the test but not anything else.
Through SB 567, the California
state legislature has ruled that
“biodegradable” claims are
inherently misleading—if given
enough time essentially every-
thing will break down. The term
“biodegradable” on its own is
vague and can be seen as disin-
genuous as it includes no param-
eters, particularly if there is no
reference to a timeframe or con-
ditions/environment (compost,
marine, soil). An ACC-funded
study by the APCO Insights
research firm indicated that con-
sumers believe “biodegradable”
to mean something will harm-
lessly and fully degrade in any
environment within 12 months.
Thus the Federal Trade Commis-
sion recently revised its Green
Guidelines (US Code Regula-
tions, Section 260.8 (c)) to state:
It is deceptive to make an un-
qualified degradable claim for
items entering the solid waste
stream if the items do not com-
pletely decompose within one
year after customary disposal.
Unqualified degradable claims
for items that are customarily
disposed in landfills, incinera-
tors, and recycling facilities are
deceptive because these loca-
tions do not present conditions
in which complete decomposi-
tion will occur within one year.
California’s plastics environmen-
tal labeling law protects con-
sumers from false end-of-life
claims in the market, while also
helping keep contaminants out
of the recycling and compost
streams. Californians Against
Waste (CAW) sponsored the
state’s labeling law and is help-
ing with its enforcement.
In 2011, and using CAW’s infor-
mation, the state Attorney General
sued three companies, Enso,
Aquamantra, and Balanced Water
for false biodegradability and
recyclability claims. By early
2013, all three parties had
reached settlements with the
Attorney General’s office by pay-
ing fines and agreeing to remove
wrongfully labeled products.
They also agreed to provide
notices of the lawsuit to cus-
tomers, with Balance stating
that it “is not able to substantiate
its claims that the bottles…are
biodegradable.” Aquamantra and
Balance are no longer producing
water bottles from Enso resin, an
additive-based plastic manufac-
turer. In this case, the enforce-
ment efforts originated from the
office of the state Attorney Gen-
eral, but enforcement of the
labeling law can also come from
local District Attorneys (DAs) in
California.
As a reminder, even products
which have BPI certification or
meet ASTM D6400/D6868 are
subject to this law. You can
reduce your chances of being
sued by the CA Attorney
General’s office or local DAs
by omitting claims of biodegrad-
ability on your products and
marketing material. •Reprinted from BPI/CAW press
release.
THE CA L I FORN IAL EG I S LATURE HAS RU L ED‘ B IODEGRADAB L E ’C LA IMS ARE INHERENT LY M IS L EAD ING.
30
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
L E G I S L AT I V E I S S U E S :
CALIFORNIA SALES TAX EXEMPTION UPDATEBY DOROTHY ROTHROCK , CA L I FORN IA MANUFACTURE RSAND T ECHNOLOGY ASSOC IAT ION
The second discussion paper on
the proposed sales and use tax
exemption (STE) regulation has
been released by the California
Board of Equalization (BOE).
Click here for the analysis and
other general information.
The purpose of this regulation is
to implement and explain the
new STE created by AB 93 (Stats.
2013, Ch. 69) and SB 90 (Stats.
2013, Ch. 70), which provides for
a partial exemption from sales
and use tax on certain manufac-
turing and research & develop-
ment equipment sales and
purchases. The partial exemption
applies to qualifying sales and
purchases made on or after July
1, 2014 and before July 1, 2022
up to $200 million a year per
company.
BOE staff recommendations for
this second draft include the
following:
• Expand the definitions provided
in RTC section 6377.1 to include,
where appropriate, definitions
from Sales and Use Tax Regula-
tion 1525.2, Manufacturing
Equipment, and Franchise and
Income Tax Regulations 17053.49
et seq. regarding the Manufactur-
ers’ Investment Credit (MIC).
• Define “primarily engaged” to
mean 50 percent or more of
gross revenues are derived from
qualifying manufacturing or
research and development
activities in the preceding finan-
cial year.
• Clarify that sales and purchases
of quality assurance testing
equipment and manufacturing
aids may qualify for the partial
exemption.
• Allow for the issuance of a
blanket partial exemption
certificate.
• Provide a separate partial
exemption certificate for con-
struction contractors to provide
to suppliers.
• Clarify that the $200 million
cap is not pro-rated for the
period July 1, 2014 to December
31, 2014, or for the period Janu-
ary 1, 2022 to June 30, 2022.
BOE staff will present a final ver-
sion of the regulation to the BOE
Business Taxes Committee on
April 22, 2014. In preparation,
they continue to meet with
“interested parties” to discuss
needed changes to or suggestions
for the regulation. The comment
period for this second draft ends
Thursday, December 19th. Any
manufacturer that has concerns
with the proposed language
should share their thoughts
with the BOE staff.
CMTA remains fully engaged
as an interested party in this
process and is taking the lead
on behalf of manufacturers
statewide.
GO-Biz workshops on CACompetes Tax CreditLast July, the Governor’s package
for economic development was
passed during budget negotia-
tions that established not only
the sales tax exemption for
manufacturing equipment and a
hiring credit, but also the “Cali-
fornia Competes Tax Credit,” The
CA Competes Credit is an income
tax credit available to businesses
that want to expand, relocate or
stay and grow in California.
The California Manufacturers &
Technology Association worked
closely with Go-Biz (one of
CMTA’s manufacturing champi-
ons) and the legislature to enact
this package to make California
more competitive for new manu-
facturing growth.
(Continued, see page 31)
CMTA I S TAK INGTHE L EAD ON BEHA L F OF MANUFACTURE RSS TAT EW IDE .
31
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
The Governor’s Office of Business
and Economic Development (GO-
Biz) will negotiate agreements
for the credit with approval
coming from a newly created
“California Competes Tax Credit
Committee,” consisting of the
State Treasurer, the Director
of the Department of Finance,
the Director of GO-Biz, one
appointee from the Senate,
and one appointee from the
Assembly.
The tentative amount of credits
that can be allocated by GO-Biz
in fiscal year 2013-2014 is $30
million. In 2014-15 this jumps to
$150 million and in 2015-16
through 2017/18 it is $200
million in each fiscal year.
GO-Biz anticipates beginning to
accept applications during the
first quarter of 2014. In prepara-
tion, they will hold public work-
shops to provide an overview
of the enacting legislation to
discuss the draft regulations
and receive feedback from the
community.
About CMTA:
The California Manufacturers &
Technology Association (formerly
the California Manufacturers
Association) works to improve
and enhance a strong business
climate for California’s 30,000
manufacturing, processing and
technology based companies.
Since 1918, CMTA has worked
with state government to develop
balanced laws, effective regula-
tions and sound public policies
to stimulate economic growth
and create new jobs while safe-
guarding the state's environmen-
tal resources. CMTA represents
600 businesses from the entire
manufacturing community—an
economic sector that generates
more than $200 billion every
year and employs more than 1.2
million Californians. •Reprinted with permission.
SA L ES TAX U PDATE [CONT ’D ]
GO -B I Z W I L LHOLD PUB L ICWORKSHOPS TO P ROV IDE ANOVERV I EW OFTHE ENACT INGLEG I S LAT ION.
SAVE THE DATE: SOCAL MEETING
MARCH 18—NORWALK DOUBLETREEENERGY: what you need to know about new prices, increased efficiencies, and global warming
32
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
Laurie Hansen, Executive and Legislative Director forWestern Plastics Association
THE NEX T L EG I S LAT I V E S ESS ION WI L LB EG IN ON J ANUARY 6 .
L E G I S L AT I V E I S S U E S :
CALIFORNIA LEGISLATURE WILLBE BACK IN SESSIONBY LAUR I E HANSEN , WPA L EG I S LAT I V E D I R ECTOR
The annual session of the Califor-
nia Legislature will begin January
6, 2014 and all bills that didn’t
make it through the process in
2013 could be up for considera-
tion in early January. This in-
cludes several bills that would
affect WPA member companies.
For example, SB 405 by Senator
Alex Padilla would ban plastic
carryout bags, and require a fee
on paper carryout bags. This bill
failed to pass the Senate floor
last year, and is eligible for
“reconsideration.” This means
the bill can be brought up on the
Senate floor, reconsideration can
be granted, and the bill in its
current form can be voted out of
the Senate. Then the bill would
go over to the Assembly and
continue through the legislative
process. We don’t know at this
time what the outcome will be,
but Senator Padilla has until the
end of January to bring this bill
up on the Senate floor for recon-
sideration.
Other bills of extreme interest
include EPR (Extended Producer
Responsibility) legislation deal-
ing with plastics and marine
debris, AB 521 by Assemblyman
Mark Stone. This topic has been
heard in several interim hearings
that Stone has convened during
the legislative recess.
In addition, SB 529 by Senator
Mark Leno, which would require
that all fast food packaging and
bags be either recyclable or
compostable, will also be back
for consideration.
With the Legislature continuing
to focus energy on issues dealing
with plastics, we also expect
many new bills that will be intro-
duced and considered between
now and next September, when
the Legislature again adjourns
for the year.
WPA will update you on existing
bills and new bills as they are
introduced during 2014. See WPA
Bill Watch List for the bills that
“carry over” to 2014, page 33. •
2013 END OF SESSION BILL S IGNINGThe following story was taken
from the Sacramento Bee back
in October when Governor Jerry
Brown was in the process of
signing bills that the Legislature
passed during 2013. It offers
an interesting perspective and
insight into California’s Governor
and the way he addresses public
policy. [Click here for the full
story.]
From Sacramento Bee: Gov.
Jerry Brown was reviewing bills
in the courtyard outside his
Capitol office one day this
month when, during a break, he
lamented the time required by
“these damn bills” and sug-
gested his inclination to sign
many more of them was waning.
The economy, global warming
and water and high-speed rail
infrastructure all demanded his
attention, he said.
“Those are all big issues,” Brown
said, “and then on top of that
you have the endless desire of
the Legislature for more and
more activities or interventions
or spending or law.”
As Brown looked over to a table
where a stack of bills and his
advisers were waiting, he remarked
on the Legislature’s “pent-up
desire” and said, “Going forward,
there could be more ‘No’s.’”
In the following days the Demo-
cratic governor would veto legis-
lation to ban the sale of certain
semi-automatic weapons and to
make some drug crimes “wob-
blers.” He vetoed 12 bills on
Saturday, including a measure to
extend the statute of limitations
for some sex abuse victims, and
on Sunday he vetoed 18 more.
But for all his complaints about
the deluge of legislation, by the
time Brown finished acting on
this year’s legislation, he had
accommodated the Democratic-
controlled Legislature on all but
about 11 percent of the bills it
sent him.
The final count for the year,
according to the Governor’s
office: 800 regular session bills
signed, 96 rejected.
Over the course of his career,
the third-term governor has now
signed more than 13,500 regular
session bills.
After the final bills were
dispatched on Sunday, Brown’s
press office posted a photo-
graph on Twitter of Brown’s
desk. The chair was empty, a
pen left behind.
“Festina Lente,” the tweet said,
or “make haste slowly.” •
33
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
WPA BILL WATCH L ISTBAGS
AB 158 (Levine) Solid Waste: Single-use Carry Out Bags. Two Year Bill – will be considered in January 2014
The bill would, on and after July 1, 2016, ban single use plastic bags.
SB 405 (Padilla) Solid Waste: Single-use Carry Out Bags. Two Year Bill – will be considered in January 2014
Bans single use plastic bags.
SB 700 (Wolk) Natural Resources: Parks: Carryout Bags. Two Year Bill – will be considered in January 2014
Would require a retail establishment, as defined, to collect a charge of $.05 for each single-use carryout bag provided to a customer. The bill
would require the retail establishment to retain $.005 of that charge and would allow a retail establishment to retain an additional $.005 if
the retail establishment credits the consumer no less than $.05 for each carryout bag provided by the consumer for packaging his or her
purchases, and meets other requirements. This bill contains other related provisions and other existing laws.
MARINE DEBRIS
SB 529 (Leno) Recycling: Fast Food Facilities. Two Year Bill – will be considered in January 2014
This bill would enact the Plastic and Marine Pollution Reduction, Recycling, and Composting Act and would define terms for the purposes of
that act. This bill contains other related provisions.
AB 521 (Stone) Extended Producer Responsibility: marine plastic pollution. Two Year Bill – will be considered in January 2014
Would require the Department of Resources Recycling and Recovery, by June 1, 2014, in coordination with the Ocean Protection Council and
the State Water Resources Control Board, to adopt regulations to implement the bill. The department would be required, by July 1, 2014, in
consultation with the council and the state water board, to adopt a list that specifies those items, or categories of items, that the department
finds are the major sources of marine plastic pollution and, therefore, would be a covered item for purposes of the bill, and to revise the list,
as specified. This bill contains other related provisions and other existing laws.
SALES TAX EXEMPTIONS
AB 1021 (Eggman) Alternative Energy: Recycled Feedstock. Two Year Bill - will be considered in January 2014
Would expand projects eligible for the sales and use tax exclusion to include projects that process or utilize recycled feedstock, as defined,
that is intended to be reused in the production of another product or soil amendment, but would not include a project that processes or uti-
lizes recycled feedstock in a manner that constitutes disposal, as defined.
34
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
M E M B E R P R E S S R E L E A S E :
BASF AND HERITAGE PLASTICSFORM STRATEGIC PARTNERSHIPBASF announced today that it
has formed a strategic manufac-
turing partnership with Heritage
Plastics, Inc. to produce ecovio®
certified compostable products
in North America.
The partnership enables BASF
to begin manufacturing ecovio
biopolymers outside of Europe
to better serve its customers
and to further focus on growth
in the rapidly developing North
American market.
Production of ecovio will begin
September 2013 at the Heritage
facility in Picayune, Mississippi.
BASF’s ecovio products represent
a broad range of compounded
polymer solutions with biobased
content, which offer excellent
processability and physical
properties along with worldwide
certified compostability.
“At BASF, we strive to find new
ways to offer our customers the
best solutions for their evolving
needs,” said Juergen Keck, Vice
President Global Business Man-
agement Biopolymers. “Our part-
nership with Heritage Plastics
allows us to respond efficiently
to a growing market and pass
along numerous benefits to our
customers in North America.”
Through the partnership, BASF
will draw upon years of com-
pound manufacturing experience
at Heritage Plastics, marrying
that with the innovative chem-
istry of ecovio. ecovio will be
exclusively marketed and avail-
able for purchase from BASF,
while maintaining a production
partnership with Heritage.
“Combining our experience and
expertise with BASF’s to broaden
the production of ecovio prod-
ucts was a natural fit,” said Paul
Lewis, President of Heritage
Plastics. “Both companies are
focused on helping customers
achieve success by providing
them the best in product quality,
as well as exemplary service and
support on a global scale.”
By expanding manufacturing of
ecovio products in North America,
BASF will supply the highest
quality, premium compostable
products while also improving
delivery flexibility, increasing
reaction speed to market needs,
enhancing product availability
and providing more customiza-
tion for new applications. ecovio
products have been available
commercially in the United States,
Canada and Mexico since 2007,
with production taking place in
Germany.
Learn more about ecovio® from
BASF, at www.ecovio.com. •P RODUCT ION OF ECOV IO W I L L B EG IN INSE P T EMBER ATTHE HER I TAGEFAC I L I T Y IN M I SS I S S I P P I .
35
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
M E M B E R P R E S S R E L E A S E :
EMERALD PACKAGING MARKS50TH YEAR IN BUSINESS WITHEXPANSION OF MANUFACTURINGFACIL IT IESEmerald Packaging, one of the
largest flexible packaging manu-
facturers on the West Coast and
one of the biggest suppliers of
produce packaging in the country,
today announces the purchase of
a 120,000 square foot building
adjacent to its existing facility.
This addition will facilitate the
creation of a 270,000 square
foot Emerald campus enabling
expanded production, including
increased lamination capacity, a
third laser perforation/scoring
unit, pouch-making equipment
and new printing capacity, and
both digital and traditional
flexography.
“This expansion opens up many
exciting possibilities including a
move into pouch making and
digital printing, a process that
allows us to go from computer
to press without printing plates.
This significantly increases speed
to market and flexibility,” says
Kevin Kelly, Chief Executive
Officer of Emerald.
“Emerald continues to invest in
innovation, our employees and
the infrastructure needed to
ensure we remain a leader in the
flexible packaging industry with
unique products that meet the
changing needs of our cus-
tomers. This investment and
expansion in our manufacturing
footprint is our largest yet and
will result in the addition of
approximately 20 jobs in the
next year. We are proud to be
contributing to the growth of
Union City,” continues Kelly.
Work on the new facility has
begun with production expected
to ramp up in the first quarter
of 2014. •
TH I S E X PANS IONOPENS UP MANYEXC I T ING POSS I B I L I T I E S .
36
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
M E M B E R P R E S S R E L E A S E :
MIREX MT TECHNOLOGY TRANSFERS PRECISION TO POLISHING STACKS
Inspired by the precision and
high level of automation of mod-
ern CNC machine tools, Reifen-
häuser Cast Sheet Coating has
developed the MIREX MT, a new
polishing stack technology that
outperforms by far all state-of-
the-art polishing stacks with
regard to reproducibility and sus-
tainability. The new patent pend-
ing polishing stack technology is
the first and only system in the
market that combines modern
digital technique with sophisti-
cated mechanical engineering
The MIREX MT product range
allows film producers to adjust
the polishing nip more precisely
by a factor of 10. In contrast to
other polishing stacks, nip
adjustment of the MIREX MT can
be adjusted fully automatically,
even during running production.
In the past, the line had to be
stopped for manual adjustment
of the correct nip on a trial and
error basis. MIREX MT works at
the push of a button and the set
data is 100% reproducible.
The high level of automation has
a positive effect both on the film
quality and production cost. Due
to the uniform thickness profile
over large web widths, producers
are able to obtain film of consid-
erably improved precision while
saving raw material. Thanks to
the automatic adjustment, set-up
times are only a quarter of the
time needed in the past. The
amount of waste can be reduced
by 75%, depending on the
production conditions.
When it comes to sustainability,
the new MIREX MT technology
outperforms all other polishing
stacks available in the market.
Hydraulic systems are completely
dispensed with so that the pol-
ishing stack developed by Reifen-
häuser Cast Sheet Coating is
suited for clean room production.
Film producers can benefit from
triple savings in energy: no need
for hydraulic pumps in permanent
operation, improved efficiency of
roll drives, no energy-intensive
adjustment of the nip.
As Helmut Meyer, responsible
developing engineer, puts it:
“Forget what you know about
polishing stacks. With MIREX MT
we have completely changed the
current state-of-the-art technology
and chosen a different approach.
Our courage paid off: In the past,
it was hardly conceivable what
the new polishing stacks were
able to accomplish with regard
to precision, automation, and
reduction of production cost.”
MIREX MT combines the roll
set-on system and the nip adjust-
ment system forming a mecha-
tronic drive unit. The angular
position of the first polishing roll
can be varied by 30 degrees
using a X-Y adjusting device.
Individual drives arranged on
both sides of the roll facilitate
axle crossing of the first two rolls
—a prerequisite for a uniform
film thickness profile. Reifen-
häuser Cast Sheet Coating has
optimized the existing roll drives
by combining several low-back-
lash planetary gearboxes with
servomotors and torsion-resis-
tant couplings.
MIREX is available in three
designs, depending on applica-
tion, film thickness and produc-
tion capacity: Smart, Standard
and High Quality.
Smart: Less challenging applica-
tions (PS/PP) and low to medium
output of maximum 1.200 kg
per hour
Standard: Medium to higher
capacities selectable in three
steps from 1,000 to 3,000 kg
per hour.
High Quality: Ensures high
performance for specific applica-
tions in terms of output, speed
and different film thicknesses
and film properties.
Reifenhäuser Cast Sheet Coating
presented the new MIREX MT
polishing stack for the first time
at the resent K show in Düssel-
dorf. •
THE H IGH L E V E LOF AUTOMAT IONHAS A POS I T I V EE F F ECT ON F I LMQUA L I T Y ANDPRODUCT IONCOST.
37
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
M E M B E R P R E S S R E L E A S E :
DOW CHEMICAL RECEIVES ENVIRONMENTAL AWARDThe Dow Chemical Company,
was presented with an Award for
Environmental Excellence at the
environmental conference
hosted by state trade associa-
tions CMTA, CICC and IEA in San
Diego on November 5th.
In 1989, The Dow Chemical
Company purchased 450 acres
of property adjacent to its Pitts-
burg, California, manufacturing
facility to serve as an environ-
mental buffer zone between the
site and rapidly expanding resi-
dential construction. The prop-
erty included a 175 acre tidal
wetlands and a 25 acre fresh -
water beaver pond.
Several Dow employees recog-
nized the beauty and abundance
of the property and made plans
to develop the resources. Today,
some thirty employees, retirees,
and community members who
comprise the Dow Wetlands Envi-
ronmental Team, WET Team, have
for over two decades performed
a labor of love restoring and
enhancing the property.
WET Team members routinely
plant native species of trees,
shrubs and wildflowers. To
irrigate the native oak trees, the
WET Team installed an iconic
windmill from the movie set of
the film “The Unforgiven.” They
constructed a viewing platform
and numerous wild bird nesting
boxes, installed docks, and
added a recycled water irrigation
system. Other enhancements
have included nesting site im-
provements for migrating birds,
and most recently a new 1/2-mile
nature trail through the tulles
and forest.
On any given Friday you can find
WET Team volunteers building
trails and wildlife habitat, or bat-
tling invasive water plants. But it
doesn’t stop there—Dow and the
WET Team have developed a
strategic partnership program
thanks to effective collaboration
with several local organizations,
including: the Lindsay Wildlife
Museum, the Earth Team, com-
prised of high school students
in Contra Costa County who have
a passion for the environment;
the Antioch High School Environ-
mental Academy, and the Los
Medanos College Chemistry and
Environmental Sciences Classes,
that use the Wetlands as their
outdoor laboratory. Every year,
the WET Team organizes an
Environmental Fair, and invites
some 450 fourth-grade students
to visit the wetlands. •DOW’S ‘WET ’T EAM ROUT INE LYP LANTS NAT I V ET R E ES , SHRUBS &WI LD F LOWERS .
38
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
M E M B E R P R E S S R E L E A S E :
NATUREWORKS AWARDS CONTRACT FOR ITS NEWINGEO™ PRODUCTION FACIL ITY
NatureWorks announced today
that Jacobs Engineering Group,
Inc. (NYSE:JEC) has been
awarded the engineering design
contract for the company’s next
world-scale Ingeo™ production
plant in Southeast Asia.
Jacobs, headquartered in
Pasadena, Calif., is one of the
world’s largest and most diverse
providers of technical, profes-
sional, and construction services
with extensive experience in
polymer and chemical plant
design and construction.
“Jacobs’ front-end engineering
design work will include major
equipment design and is the next
stage of what is a multi-year proj-
ect that will move into detailed
engineering design, procure-
ment, construction, and plant
start-up,” explained Steve Bray,
Director of Manufacturing and
Engineering, NatureWorks.
The company noted that these
phases of the project collectively
may require three years for com-
pletion, with Thailand currently
targeted as the preferred plant
location.
Jacobs Group Vice President
Chris Nagel stated, “We’re
delighted to continue our part-
nership with NatureWorks as
they expand support to their
clients in the Asia Pacific region
and increase their global prod -
uction efforts.”
Officials did not disclose the
contract value, but noted that
the project is expected to be
executed primarily out of Jacobs’
Greenville, South Carolina, office.
Ingeo is made from locally abun-
dant renewable plant materials,
not oil. In 2002, NatureWorks
became the first company to pro-
duce a biopolymer at world-scale
quantity. In 2013, NatureWorks
expanded its flagship Blair
facility to an annual total Ingeo
capacity of 150,000 metric tons,
and located its first Asia Pacific
regional headquarters in
Bangkok, expanding its team of
senior commercial, managerial,
and technical personnel to
enhance support of Ingeo
customers throughout the
region.
A sampling of current Ingeo
products can be found online in
NatureWorks’ Ingeo LookBook.
For more information about
NatureWorks and Ingeo, visit
www.natureworksllc.com.
The international Ingeo users’
forum “Innovation Takes Root”
will be held February 17-19, 2014,
in Orlando, Florida. •INGEO I S MADEF ROM LOCA L LYABUNDANT, R ENEWAB L EP LANT MATE R I A L .
39
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
M E M B E R P R E S S R E L E A S E :
LYONDELLBASELL GRANTSSPHERIZONE L ICENSE FOR PP PLANT IN CHINA
LyondellBasell today announced
that CNOOC Oil and Petrochemi-
cals Co. has selected the Lyondell
Basell Spherizone technology for
a 400 KT per year polypropylene
(PP) plant planned to be built at
Huizhou, China.
“LyondellBasell Spherizone tech-
nology can deliver a wide range
of high-quality PP products with
low resource and energy con-
sumption and we are pleased
that CNOOC has again selected
our technology for their new
facility,” said Bob Patel, Lyondell-
Basell Senior Vice President,
Olefins and Polyolefins for
Europe, Asia, International, and
Technology. “This is the fourth
polyolefins process technology
we have licensed to CNOOC and
its joint venture, building on a
relationship that spans more
than 10 years.”
Spherizone offers a multi-zone
circulating reactor process
providing an economical and
efficient method of manufactur-
ing a wide range of high-quality
polypropylene and novel poly-
olefins resins all on a single-line
with capacities of up to 500 KT
per year. Low manufacturing and
investment cost make Spheri-
zone very attractive in the market
place. Since the launch of the
Spherizone process in 2004,
more than 3.5 million tons of
capacities have been licensed.
In addition to the Spherizone
process, the LyondellBasell
portfolio of licensed polyolefin
technologies and associated
technical services is comprised
of:
• Spheripol – leading polypropy-
lene technology for the produc-
tion of homopolymer, random
and heterophasic copolymers.
• Metocene PP – technology for
the production of specialty
polypropylene products using
single-site catalyst systems.
• Lupotech – the leading high-
pressure tubular and autoclave
process technologies for the pro-
duction of low density polyethyl-
ene (LDPE) and ethylene vinyl
acetate (EVA) copolymers.
• Hostalen – a low-pressure
slurry process for the production
of high-performance multimodal
high density polyethylene
(HDPE).
• Spherilene – flexible, gas-
phase process technology for
the production of linear low
density polyethylene (LLDPE),
medium density polyethylene
(MDPE) and HDPE.
About LyondellBasell
LyondellBasell is one of the
world’s largest plastics, chemical
and refining companies and a
member of the S&P 500 Index.
LyondellBasell (www.lyondell-
basell.com) manufactures prod-
ucts at 58 sites in 18 countries.
We participate in the entire
petrochemical value chain, from
refining to specialized petro-
chemical product end uses. We
are the largest producer of
polypropylene and polypropy-
lene compounds; a leading
producer of propylene oxide,
polyethylene, ethylene and
propylene; a global leader in
polyolefins technology; and a
producer of refined products,
including biofuels. Additionally,
LyondellBasell is a leading
provider of technology licenses
and a supplier of catalysts for
polyolefin production.
We manufacture products and
develop technologies that im-
prove the quality of life for peo-
ple around the world. Our
products are the basic building
blocks used to manufacture
countless everyday goods such
as personal care products, fresh
food packaging, lightweight
plastics, construction materials,
automotive components, durable
textiles, medical applications,
biofuels and many others. With
the help of LyondellBasell materi-
als, thousands of products are
made safer, stronger, more af-
fordable and more reliable. •
TH I S P RO J ECTBU I L DS ON A R E LAT IONSH I PTHAT S PANSMORE THAN 10 Y EARS .
40
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
M E M B E R P R E S S R E L E A S E :
K2013: A SUCCESSFUL SHOWLEAVES WINDMÖLLER &HÖLSCHER OPTIMISTIC
The K proved once again to be
positive and productive for Wind-
moeller & Hoelscher. The company
received enthusiastic feedback
from customers regarding new
technologies presented at the
booth as well as at the simul-
taneous in-house Expo at com-
pany headquarters in Lengerich.
The K reaffirmed its position as
the world’s leading forum for the
plastics industry, proving that ex-
hibiting is well worth the effort.
While the total number of visitors
to K 2013 was roughly the same
as at previous shows, Wind-
möller & Hölscher noted higher
traffic in the booth on most days
than in the past. The professional
staging of the new VAREX II
blown film line played a major
role in this. “With this system,
W&H sets a new standard in
blown film extrusion,” says Man-
aging Director, Peter Steinbeck,
commenting on responses from
customers on the futuristic
design of the new line.
The company was particularly
pleased with the many new rela-
tionships that were formed. The
Expo set its own attendance
records, with over 800 visitors
from 64 countries. In earlier days,
some projects were decided on
the spot. Since this has long not
been the case, W&H was aston-
ished by the number of sales that
were made at the show. Addition-
ally, many substantive requests
as well as intensive discussions
and negotiations with customers
from around the world have
given the company reason to
be optimistic about post-show
business.
To build suspense and attract
visitors to the booth, W&H pro-
moted the unveiling of its new
blown film line, known before the
show as “E-24.” Expectations
were high. Many visitors found
walking through the “experience
tunnel” to the new VAREX II line
to be jaw dropping. The line’s
minimalistic and elegant design
combined with its increased
output, higher energy efficiency,
improved ergonomics and main-
tainability made a big impression.
The VAREX II was shown produc-
ing a 5-layer, 2200 mm wide, 40
micron shrink film at 1000 kg/hr
using the MAXICONE P die, which
was specially designed for work-
ing with polyolefin.
The new and innovative ARCTIS
air ring played a significant role
in the line’s performance. It has
a new air supply, which cools film
faster thus increasing output.
Its unique integral design also
allows for greater accessibility
to the die.
The new design was carried over
to the FILMATIC S II winder,
which produced perfectly wound
rolls at the show.
Progress was also evident in the
new automation system. Aside
from the well-known modules
EASY-CHANGE (autopilot for
size changeovers), PROFILE
BOOSTER (accelerated line start-
up) and PURGE ASSIST (auto-
matic purging of extruders and
die), W&H unveiled EASY-WIND
for optimum roll quality and EN-
ERGY MONITORING for display-
ing energy usage of all line
components. The established ISP
module for the collection and
storage of all production para -
meters has been extended in the
new PPC (Production Planning
and Control) module, a new
feature permitting decentralized
job preparation and in conjunc-
tion with an ERP system, such
as SAP. Order specifications and
product formulations can be
directly transmitted from the on-
site ERP system to the extrusion
line, without the operator having
to enter any order data locally.
W&H also presented a second
blown film line at the K: the
OPTIMEX. The OPTIMEX was
launched in 2009 for the middle
segment. The 1800 mm OPTIMEX
line demonstrated the
(Continued, see page 41)
W&H WAS AS TON ISHED BYTHE NUMBER OFSA L ES MADE ATTHE SHOW.
41
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
production of gusseted stretch
hood film for transportation load
stability, clearly conveying the
message that W&H continues to
develop its 3-layer portfolio for
modest budgets as it furthers its
market position.
The in-house EXPO in Lengerich
offered a supplemental, in-depth
look at W&H technology. Visitors
were able to not only see
machines for film production,
but also printing presses and
converting machine, giving a
comprehensive picture of the
entire process chain.
Altogether, six extrusion lines
were run at the Expo. They in-
cluded, four blown and two cast
film lines, all running different
products. In addition to a VAREX
II (producing 3-layer film), the
FILMEX cast film line, configured
specially for stretch film, ran a
300 mm, 33-layer, 12 micron
Super Power stretch film for load
stability at speeds of 600 m/min
and with a net output of 1200
kg/h. Fully automatic small roll
job changes were made on the
newly developed FILMATIC
PS winder.
The printing lab attracted visitors
with demonstrations of the
MIRAFLEX CM 10 and VISTAFLEX
CL 8 flexographic presses as well
as the HELIOSTAR SL/SE 8
gravure press. An additional
MIRAFLEX AM 8 was used to
demonstrate the COREMATIC for
automatic small roll handling.
For manufacturers of sacks made
from heavy-duty films and woven
polypropylene fabrics, W&H
offered a special treat: two
tubers from the POLYTEX range
as well as the CONVERTEX and
CONVERPINCH bottomers—all
for robust packaging of building
materials and pet food. •
WINDMOE L L E R & HOE L SCHER [CONT ’D ]
42
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
P L A S T I C S T O D AY:
GLOBAL PLASTICS SUMMIT: THE MULTIPLIER EFFECT OFSHALE GAS BY HEATHER CA L I ENDO, P LAS T ICS TODAY
Looking beyond terms such as
“renaissance” and “revolution,”
plastic packaging producers
believe the industry is in prime
position to size a big opportunity
due to a shale gas advantage.
“One clear benefit is the addition
of numerous jobs,” Dow Chemi-
cal’s Greg Jozwiak, commercial
VP for North America packaging,
said at the inaugural joint SPI/
IHS Global Plastics Summit in
Chicago.
For instance, a 1% growth in PE
requires 28 plastic processing
lines. He said 4.5% PE growth
would equate to 770 KT lb of
resin processed at a convertor,
which can create 1400 new direct
line jobs.
A new IHS study projects U.S.
shale energy development to be
responsible for a 10% increase in
production for the plastics indus-
try and will be responsible for
adding close to 15,000 jobs by
2020.
Another potential impact of shale
gas: material substitution. That
term was referenced several
times during the day and Jozwiak
believes it presents an address-
able market opportunity in pack-
aging for PE.
The packaging industry was a
$173 billion industry in 2012,
with about paperboard account-
ing for $57 billion. PE in packag-
ing was reportedly $12.3 billion.
Trends supporting the conver-
sion to plastics include light-
weighting, food preservation,
convenience features and waste
reduction, Jozwiak said.
“My perspective is that shale gas
presents an opportunity to col-
laborate and innovate for growth
—to reshore the manufacturing
of film bags; replace traditional
material in packaging and export
finished goods,” he said. “We
have the opportunity to build up
the industry beyond the will of
the existing market.”
Impact to the convertorScott Farmer, executive VP of
global purchasing of packaging
giant Berry Plastics, believes
lower cost ethane drives innova-
tion, investment and new jobs.
“Shale gas is very important to
us as we are primarily a North
American producer,” he said.
“Resin represents the largest
part of all our cost of packaging
—about 70%.”
The advantages of a lower cost
resin will allow plastic packaging
to grow into spaces occupied by
other substrates. Farmer also
believes that lower costs will
bring jobs back to the U.S. and
help drive innovation.
“What if we could convert 20% of
the volume in the North American
market to plastics?” he asked.
“This would result in about 167
billion units a year.”
Assuming the average weight
is 10 grams, he said this would
equate to 3.7 billion lb of PE.
An average cracker and PE plant
being added at 2 billion lb would
create more than 300 jobs in the
economy, Farmer said. The im-
pact of 2 billion lb to the conver-
tor is about 14,000 jobs.
“That’s big numbers in job
creation," he said. "Jobs created
with the lower cost PE unleashes
the power of the convertor to
gain market share." •Reprinted from www.plasticsto-
day.com, November 5, 2013.
LOWER COSTE THANE DR I V ESINNOVAT ION,INVES TMENTAND NEW JOBS .
43
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
V O T E R I N I T I AT I V E :
WASHINGTON STATE VOTERSREJECT GMO INIT IATIVEBY PAME LA BA I L E Y, GROCERY MANUFACTURE RS ASSOC.
Yesterday, Washington State
voters rejected I-522, a proposal
that would have required food
and beverage products made
with genetically modified food
ingredients (GMOs), with 55%
voting against the proposal and
45% voting for it.
I-522 was a complex and costly
proposal that would have misled
consumers, raised the price of
groceries for Washington families
and done nothing to improve
food safety.
This is an important development
in our effort to provide consumers
with a wide array of safe and
affordable food and beverage
choices. Genetically modified
food ingredients (GMOs) are
safe, good for the environment,
reduce the cost of food and help
feed a growing global population
of seven billion people.
Because a 50-state patchwork of
GMO labeling laws would be con-
fusing and costly to consumers,
GMA will advocate for a federal
solution that will protect con-
sumers by ensuring that the FDA,
America’s leading food safety
authority, sets national stan-
dards for the safety and labeling
of products made with GMO
ingredients. Our country’s label-
ing laws have been—and should
continue to be—based on health,
safety and nutritional content.
We will continue to oppose indi-
vidual state efforts to impose
mandatory labeling of products
made with GMO technology, as
well as advocate for the safe and
effective use of this important
technology to increase the food
supply while lowering cost. And
we will continue to engage in an
informative dialogue with our
consumers on the safety, preva-
lence and benefits of that tech-
nology. •Reprinted from Grocery Manu -
facturers Association press
release, November 6, 2013.
GENET ICA L LYMOD I F I ED FOODINGRED I ENTSARE SA F E , GOOD FOR THEENV I RONMENTAND R EDUCE THE COST OFFOOD .
SAVE THE DATE: SOCAL MEETING
MARCH 18—NORWALK DOUBLETREEENERGY: what you need to know about new prices, increased efficiencies, and global warming
44
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
V O T E R I N I T I AT I V E :
WASHINGTON STATE VOTERSREJECT GMO LABELINGBY E L I ZABE TH WE I S E , USA TODAY
Washington state voters on
Tuesday rejected an initiative
that would have required foods
containing genetically engineered
ingredients to be labeled.
The vote was 54.8% opposed to
labeling and 45.2% in favor of
it. Had it passed, Initiative 522
would have made the state the
first in the nation to require
such labeling.
The initiative was the most
expensive in state history,
though it was largely fought
by out-of-state interests.
The “No on 522” campaign set a
record for fundraising, bringing in
$22 million in donations accord-
ing to The Seattle Times. Just
$550 came from Washington
residents, according to the news-
paper. The top five contributors
were the Grocery Manufacturers
Association, Monsanto, DuPont
Pioneer, Dow AgroSciences and
Bayer CropScience.
The largest donor to the pro-
labeling campaign were Califor-
nia-based Dr. Bronner’s Magic
Soaps and the Center for Food
Safety in Washington, D.C.
However the initiative garnered
almost 30% of its funding from
individuals in Washington state,
the Times reported.
Food industry ads claimed that
the initiative would raise food
prices. Labels would mislead
consumers into thinking that
products that contain genetically
engineered ingredients are
“somehow different, unsafe or
unhealthy,” said Brian Kennedy
of the Grocery Manufacturers
Association, a food industry
group based in Washington, D.C.
The “Yes on 522” campaigns
emphasized consumers’ right to
know what’s in their food.
The Washington initiative was
part of an ongoing national fight
by those opposed to genetically
engineered crops to push for
labeling. A similar, bruising $37
million battle in California in 2012
went against labeling advocates.
The final vote was 51.4% opposed
and 48.6% in favor.
“Sooner or later, one of these is
going to pass. It’s only a matter
of time. At some point the industry
is going to get tired of pouring
this kind of money into these
campaigns,” said Marion Nestle,
a professor of nutrition at New
York University.
She said she doesn’t believe
there’s anything dangerous
about genetically engineered
foods but is concerned about
corporate control of the food
supply.
Genetically engineered crops
have a gene from another plant
inserted into them to give them
some ability they didn’t have
before.
There are two common genetic
modifications. One is for herbi-
cide tolerance: Plants are given a
gene that protects them from
harm when a farmer sprays them
with herbicides to kill weeds. The
other is a gene from a soil bacteria
called Bacillus thuringiensis that
allows plants to produce their
own insecticide.
A huge proportion of commodity
crops grown by U.S. farmers are
genetically engineered: 97% of
the nation’s sugar beets, 93% of
the soybeans, 90% of the cotton
and 90% of the feed corn for
animals, according to the 2013
figures from the Department
of Agriculture.
About 60% of the papaya grown
in the United States, all in Hawaii,
has been genetically engineered
to allow it to withstand the ring -
spot virus, which virtually wiped
out papaya production in the
islands in the 1980s, according
to the International Service for
the Acquisition of Agri-biotech
Applications.
Very small amounts of geneti-
cally engineered zucchini, yellow
squash and sweet corn are also
sold in the United States.
The Food and Drug Administra-
tion does not require foods con-
taining genetically engineered
ingredients to be labeled because
it considers them “functionally
equivalent” to conventionally
grown crops. •Reprinted from www.usatoday.
com, November 6, 2013.
WASH INGTONSTATE IN I T I AT I V EWAS PART O F AN ONGOINGNAT IONA L F IGHT.
T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T
W PA L E A D E R S H I P F O R 2 0 1 3 :
OFFICERS JOHN P ICC IU TO , P R ES I D ENTH Mueh l s t e i n & Co .
K EV IN K E L LY, V ICE P R ES I D ENTEme r a l d P a c k ag i n g
M ICHAE L HA I L F INGER , T R EASURE RINX I n t e r n a t i o n a l I n k Co .
CHANDL E R HADRABA , S ECRE TARYB r ad l e y P a c k ag i n g S y s t em s
BOARD OF DIRECTORS BRUCE CART E R G r ea t Ame r i c a n P a c k ag i n gMARK DAN I E L S H i l e x P o l y Compan yS T EVE DES PA IN R e i f e n ha u s e rCOL IN F E RN I E We s t e r n Con co r d M f g .ROGER HEWSON Windmoe l l e r & Hoe l s c h e rRAY HUFNAGE L P l a s t i c E x p r e s sS T EVEN JONES J a t c o , I n c .PAT R ICK MONTOYA New G r e e n Da yS T E PHEN SCHROEDER S i gma P l a s t i c s G r o upDAVE SHEW MAKER He r i t a g e Bag
WPA TODAY published by:
Western Plastics Association1029 J St., Suite 300Sacramento, CA 95814
916.761.2829 Cell916.930.1938 [email protected]
Editor: Laurie Hansen
Disclaimer: Western Plastics Association (WPA) does not endorse or recommend other than those officially endorsed byWPA, any individual or companythat is mentions in this newsletter.Any business conducted is between the member and the individual or company. Any state-ments made in this newsletter arethose of the authors and do notnecessarily reflect the views ofWPA or its Board of Directors.
@2013 Western Plastics Association