Plastic news july 2014 issue

SAY YES TO PLASTICS Volume No. 80

MH/MR/N/200/MBI/12- 14

Issue No. 7

Pages 78

July 2014

Rs. 75.00

P L A S T I C S N E W S

3

J U L Y 2014

P L A S T I C S N E W S

4

J U L Y 2014

CONTENT

IN THIS ISSUE...

15...... AIPMA At Work The Official Organ of The All India Plastics Manufacturers Association Estd. 1945

MH/MR/N/200/MBI/12-14 Volume 80

July 2014 No. 7

Chairman - Editorial Board

Mr. Anandilal Oza

Hon. Editor

Mr. Ajay Desai

Members

Mr. A. E. Ladhaboy Dr. Y. B. Vasudeo Ms. Poorvi Desai

...AIPMA Job Fair Season 2014 ...CIPAD 2014 Global Assembly

Editorial Co-ordination: Padmesh Prabhune, Dhruv Communications,

...Budget Analysis

Mumbai, Tel No: 00-22-2868 5198 / 5049

24...... Company News

Fax No : 00-22-28685495 • email: dhruvpr@vsnl.net Published by Ms. Umaa Gupta on behalf of the owners, The All India Plastics Manufacturers’ Association Plot No. A-52, Road No. 1, M.I.D.C., Andheri (E), Mumbai-400 093. Tel: 67778899 • Fax : 00-22-2821 6390 E-mail : office@aipma.net Website : http://www.aipma.net and printed by her at Dhote Offset Technokrafts Pvt. Ltd., Goregaon (E), Mumbai-400 063.

28...... Features

Annual Subscription Rs. 1,000/-

... Inglass adds to mould specialisation with Ermo acquisition

... Union Budget - Lots of Promises and Anticipations ... Machine makers roll out expansion plans in China ... Kraton builds pilot plant for new polymerization and processing technologies ... ENGEL sets new process integration

Single issue Rs. 75/-

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

... Infiltrator Systems installs world’s largest low-pressure injection molding machine

of formal AIPMA communications no other matter in this journal should

... Chemists develop novel catalyst with two functions

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

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

55...... International News

OFFICE BEARERS Mr. Anandilal Oza President

Mr. Sanju Desai Vice President (West Zone)

Mr. R. K. Aggarwal Vice President (North Zone)

Mr. Rituraj Gupta Hon. Secretary

Mr. Anil Bansal Vice President (South Zone)

Mr. Manoj R. Shah Hon. Jt. Secretary

Mr. Ashok Agarwal Vice President (East Zone)

Mr. Haren Sanghavi Hon. Treasurer

P L A S T I C S N E W S

59...... Business News 63...... Product News 70...... Technology 73...... In the News 75...... Events

5

J U L Y 2014

P L A S T I C S N E W S

6

J U L Y 2014

P L A S T I C S N E W S

7

J U L Y 2014

P L A S T I C S N E W S

8

J U L Y 2014

THE PRESIDENT SAYS

No respite for Plastics inance Minister Arun Jaitley discussed various

Accordingly, cenvat credit will

highlights of the Union Budget for the year

not be permissible after six

2014-15 and stressed how it will help and boost the

months from the date of issue

overall manufacturing industry.

of the invoice.

F

Just to make it clear let us examine Union Budget

The provision for default in

2014-15 proposals pertaining to Petrochemicals /

payment of duty wherein the

Plastics: i)Reduction of the basic Customs Duty on

cenvat credit was not to be

ethane, propane, ethylene, propylene, butadiene and

used and payment was to be

ortho-xylene from 5% to 2.5%. ii) Exempt 4% SAD

made consignment-wise on a daily basis has been

on PVC sheet and ribbon used for the manufacture

replaced.

of smartcards. iii)Exemption from basic customs duty

Moreover from 25-July-2014 onwards, for every

on specified inputs for use in the manufacture of EVA

incoming / outgoing movement of goods from outside

sheets and back sheets. iv)Exemption from Excise duty

the state into the state or from inside the state to

for EVA sheets and solar back sheets and specified

outside state, the consignor / consignee and the

inputs used in their manufacture. v) Exemption of

transporter is required to upload the document called

Polyester stretch fiber and Polyester filament yarn

“e-way bill” in Prescribed form.

manufactured from Plastic Waste and scrap including All this will add to additional expenses. The budget

PET bottles from Excise duty w.e.f. from 29th June

is not favorable for Industry for

2010 to 7th May 2012. vi)Levy prospectively a nominal

Plastic related industries are already suffering

duty of 2% without Cenvat benefit and 6% with Cenvat

from heavy prices of raw materials. The costs of

benefit on such PSF and PFY.

raw materials have doubled within 2 years and has

However, the demand of processing industries

neutralised the exemption of SSI under Central excise.

for reduction and rationalisation of import duties on

Increasing cost of raw materials of petrochemical

plastic raw material, removal of anti dumping duties

products will affect plastic industry adversely.

on PVC resin and injection moulding machines as well as increase in import duties on finished products

The All India Plastics Manufacturers' Association

have not been addressed in the budget presented by

strongly protests that in the current budget there is no

Honourable Finance minister.

relief for plastic processing industry which primarily consists of MSME and hopefully the Government

Also the norms in excise duties have been modified.

addresses our concern at the earliest.

Earlier, the SSI units were required to pay central excise duty on a quarterly basis. The same is being

Anandilal Oza

curtailed from Oct. 2014 and they shall be liable to

president@aipma.net

pay central excise duty on a monthly basis. The time limit for taking cenvat credit has been introduced.

P LLAAS ST ITCISCNSE W N SE W S

9

JJ UU LL Y 2 0 1 4

P L A S T I C S N E W S

10

J U L Y 2014

FROM THE EDITOR'S PEN

Money in Plastics ince the union budget being declared earlier

What I liked was the

this month there have been lots of argument,

thought of Architect, author

for and against it, and most of us are convinced

of Cradle to Cradle and self-

that it is more of a vision or so to say a ‘Hopeful’

styled sustainability guru

budget anticipating things to happen as expected

William McDonough when

by the Finance Minister. The Minister has shown the

he challenged attendees,

outlays but has not shown the specifics. It lacks the

most of them being plastics

‘How’ part. Also the fact remains that with the interim

processors and trade associations, to expand

budget already done by congress this budget is just

their thinking beyond the traditional Rs of “reduce

for remaining 7 months so in a way it has to be a

, reuse, recycle,” and to include “redesign, renew

‘continuous’ budget.

and regenerate.”

S

Plastics are making inroads in fabrics, medical,

As far as Plastic Industry is concerned, it is wanting.

agriculture; you name it and its there. Speakers at the

Also when it comes to Plastics More often than

Plasticity urged attendees to change their mindset —

not, there have been debates about end-of-life

and to help others to the same — when it comes to

problems with plastic results in industry versus the

money and plastic waste.

environmentalist finger-pointing, leading to stalemates and no viable solutions. To have a more realistic

David Katz, entrepreneur and founder of the

approach towards Plastics an event Plasticity was

Plastic Bank, an effort to clean up the planet and

organized by the Society of the Plastics Industry Inc.,

empower the poor simultaneously by creating an

and the American Chemistry Council in New York

international currency exchange using plastic waste,

examining the future of plastics with discussion and

believes there is a perception problem and it’s up

possible collaborations on how to treat plastic as a

to people to change it. Plastic has more pound-for-

resource and not waste.

pound value than steel, said Katz, but it’s up to the industry to remind the rest of the world of that value

This was the third annual event moved to the United

and then capitalize on it.

States for the first time, after an inaugural conference in Rio de Janeiro at the 2012 Rio+20 Earth Summit

I think that is what really needed. We have to stop

and a 2013 event in Hong Kong. A project of the Ocean

thinking about, using the phrase ‘end of life’ with our

Recovery Alliance and the Republic of Everyone,

plastic products. As McDonough rightly said, Let’s

the Plasticity Forum aims to bring together leaders

move on, let’s make it ‘next life, and there lies the

to collaborate to help scale up some of the great

Money.

solutions now coming to market, the organizers say,

Hon. Editor

and to showcase sustainable solutions and market

Ajay Desai

opportunities for transforming all types of plastic “one through seven” into a valuable resource.

P LLAAS ST ITCISCNSE W N SE W S

11

JJ UU LL Y 2 0 1 4

P L A S T I C S N E W S

12

J U L Y 2014

P L A S T I C S N E W S

13

J U L Y 2014

P L A S T I C S N E W S

14

J U L Y 2014

AIPMA AT WORK

AIPMA Job Fair Season 2014 IPMA organized its 2nd edition of Job Fair in June 2014. The job fair organized in June in was divided into four zones viz Chennai, Kolkatta, Delhi and Mumbai under the leadership of the Chairman – Mr. Kishore Sampat, Co – Chairman – Mr. Hiten Bheda and the Members of the Committee – Mr. Mayur K. Shah, Mr. Ashok Mukherjee, Mr. Manish Dedhia, Mr. Mahendra Deshlahra. It was for the first time the Job Fair was held in all our zonal offices In Chennai Office on 7th June, 2014, in Kolkata Office on 14th June, 2014, in Delhi Office on 21st June, 2014 and in Mumbai Office on 28th June, 2014.

A

We had already dicussed about Job fair held at Chennai and Kolkata earlierTIn Delhi Office the Job Fair was held on 21st June, 2014, Mr. G. L. Verma – Delhi Technical University inaugurated the event. More than 100 candidates were interviewed by 7 visiting employers . In all 15 candidates including 3 Accountants were successful.

In Mumbai Office the Job Fair was held on 28th June, 2014, Mr. Anand Oza – President, AIPMA did the Inauguration of Ceremony. Present at the inauguration were Mr. Ashok Mukherjee – Member, Placement Cell, Mr. Hemant Mehta – Managing Committee Member and visiting employer, Mr. Arvind Mehta – Chairman AIPMA Governing Council, Mr. Rituraj Gupta – Hon. Secretary, Mr. Kishore Sampat – Chairman, Placement Cell, Mr. Raja Shah – Chairman, MSME Cell along with the invitees There were 12 visiting employers, 100+ candidates attended interview among them 15 candidates were successfully appointed at the Job Fair. The West Zone enrolled 19+ Student Members.

Mr. Kishore Sampat, Chairman, Placement Cell, Mr. R. K. Aggarwal, VP, North Zone felicitates Mr. G. L. Verma Delhi Technical University.

We thank-you for the support and having Pla cement Cell at both the Zonal offices and we look forward for more events of such nature in those offices in future.

Kishore Sampat Chairman - AIPMA Placement Cell

P L A S T I C S N E W S

15

J U L Y 2014

AIPMA AT WORK

CIPAD 2014 Global Assembly Arvind M. Mehta Chairman – Governing Council AIPMA Past President – AIPMA & Plastindia he CIPAD 2014 Global Assembly was held from 22-24June 2014, at Berlin, Germany. The two days conclave was an excellent opportunity for networking on International Forum wherein Global Association leaders met and presented their papers on various topics, exchange ideas, gathering information, news, and were updated specially from converters and Machinery producers worldover.

1. Redevelopment of AIPMA building.

Representatives from 11 countries i.e. USA, UK, Germany, Italy, Canada, Finland, Switzerland, Mexico, India, Spain and South Africa made their presence felt and it was a unique opportunity to have addressed by leading global speakers. To name some we had

5. Activity – Job Fair, conferences, SME workshop, management upgradation.

T

2. Plastic News (Monthly). a. Bulletin (15 Days).

3. Board Meets every month.

4. AIPMA has its own offices in East, North and South zone offices to cater the needs of all regions.

6. PVI 2017 Mumbai – now UFI approved – very successful - 2013.

7. PVA – 2014 - Sharjah - 28 countries participated. Next PVA 2016 - Sharjah.

1. Willem De Vos - SPE USA – Smart Plastics and Future Technology

8. Product Exhibition under planning for 2015 Mumbai.

2. Remko Koster – Director HIS Chemical (Europe) – over view of the raw material scenario

9. MOU with SPI USA – BPF UK – Assocomoplast Italy and many other countries.

3. Dr. Rudiger Baunemann Director General – Plastics Europe – Raw material scenario in Europe

10. Representation to government of India for pre-budget for taxation streamlining and technology upgradation for modernization of plastic industry. To address Environmental issues- solutions proposed.

4. Dr. Jurgen Bruder –General Director – German Association for Plastics Packaging and Films – Growth status in Germany.

11. All India Association meets including the raw material associations for growth with AIPMA as Convener.

For many India was a country of concern because of downturn in our economy. Our GDP is less than 4%, and corruption level is high. Countries like Germany and Italy they were not able to sell much of their plastic machines in India. According to them we are not amongst the top ten importers of their machines in 2013-14 whereas export to China from Germany was up by 30%. USA was also leading importer in their list. Whereas Europe – USA have a very clear business in mind.

USA Current scenario of plastic industry in USA and Europe is very positive. US Manufacturing has become very competitive. US Plastic Industry is the 3rd largest in US. New investment of $ 9.6 Billion has come on new capital equipment. The demand of plastics is on higher level. The total Plastic export in 2013 was $ 60.1 Billion. Shale Gas production has increased by 440% between 2007 and 2012.

By 2020 they are expecting to employ 2.1 Million jobs.

Before my presentation I had to dispel their fears about Indian economy with change of government in India and new Prime Minister Shri Narendra Modi, who has 14 years of administrative experience and responsible for progress of Gujarat. We Business people can bank upon and we are very hopeful turn around in Indian economy. To give a gist I’ll have list of pointers that I had focused on beginning with highlighting activities of AIPMA. P L A S T I C S N E W S

Refineries are making good profits. No Naptha crude based conversion to polymers now in USA. As per Observation, costing of polymers in USA is as follows:

16

Crude Based Polymers

Gas based polymers

Say Rs. 2

Say Rs. 1

J U L Y 2014

AIPMA AT WORK i.e. polymer produced price in USA is cheaper than Crude based elsewhere. Polymer producers are selling at international prices thus making handsome profits.

produce are PE 24.9%, PP 21.6%, PVC 14.1%, PS 7%, PET 5%, ABS/SAN 4.3% and rest others.

Plastic consumption packaging is 37.4%, Building material is 24.8%, Automotives 8.1%, Agriculture is 6.4%, Houseware 5.2% and rest others.

UK UK GDP expected to grow 3% this year. Manufacturing grew by 1.4%. Business investment grew by 2.7% and unemployment has fallen. Bank Interest rate is 0.5% since last five years.

They export plastic waste to the tune of 18 Lac tons per annum to countries like China, Taiwan, Malaysia, South Korea etc.

Trend of waste recycling in Japan, 80% is utilized – Mechanical recycling (22%), Liquefaction Gasification, Blast Furnace (4%), Densified refuse derived fuel (12%), Incineration with power generation (32%) and incineration with heat utilization facility (10%) and Unutilized (20%) – Incineration without power generation or heat utilization facility (10%) and Landfilling (10%).

They want to drive used plastics from landfill by 2020 and would like to concentrate more on recycling and energy recovery. UK government wants 5P charge for thin plastic carrier bags.

UK is sitting on BIG LAYERS of Shale Gas and it will be very important game changer for UK. Their future is bright.

They are more confident now.

ITALY

GERMANY

Italian machinery export was little lower. Europe 46.4%, North America 9.8%, South America 9%, Africa 5.8% and Asia 16.6%.

In the world production plastics and rubber machines in 2013 Euromap had 40% sales, China 30%, Germany 22.2, Italy 8.1%, US 6.6% and Japan 4.4%.

Amongst the Top Ten markets Germany was no 1, i.e.

14.3%. France 5.7%, USA 5.6%, Poland 4.9%, China 4.7%, Russia 4.7%. In Italy they have 11000 companies and they employ nearly 1,60,000 employees. They expect this year to be better.

They are disturbed because last year they did not sell any machinery of much value to India though there was growth of 30% to China and USA. India does not fall in their list in top ten market last year.

German Plastic Industry – no. of companies – 2640, they employ 315000 people. They are on the growth path.

Packaging grew by 3.5%, construction grew by 2.1%, Medical grew by 2.7%. Most of the companies expect increase in turnover with increase in margin and increase in exports.

CANADA In Canada there is slow but steady growth. Business and consumer confidence improving, higher investments and positive intentions about profits. There are 3170 companies of Plastic processing and employing around 95,000 employees. They have problems for the issues like plastic shopping bags bans and taxes, Vinyl tin stabilizers, phthalates, flexographic emissions etc.

They have very high recycling rate and no issue on bags or there is no discussion on environment as they have been able to solve the problem to 100% recycling.

They would like to divert plastics from landfill, reduce marine debris and increase recycling and energy recovery.

They are working on it.

Old German Parliament Berlin with Adolf Hitler addressing then members of Parliament Present German Parliament Berlin

FINLAND

JAPAN

As country is small but have a good base of plastics.

They are having 580 converters and 12000 employees.

There are Resin producers of PE, PP, EPS etc.

The Japanese economy is on a moderate recovery trend.

Business investment is picking up. Export and industrial production is almost flat. Corporate profits are improving.

They produce plastic raw material 10.6 Million Tons and products nearly same quantity. Their major raw material P L A S T I C S N E W S

Because of the negative publicity brought up problems not solutions. There is weak popularity of industry in general 17

J U L Y 2014

AIPMA AT WORK among young talents. Finland is the right country to make plastic product piloting before going full scale.

28.7%. Automotive and transport 5.5%, Electrical & Electronic appliances 5.8%, Engineering 4.8%, Agriculture 4%, Housewares 2.8%, Medical 1.8% and rest others.

SWITZERLAND

Recycling industry – South Africa recycles 3 Lac tons per annum having 210 recycling companies. They employ 45000 people and recover around 34% of the plastic material. It is one of the highest mechanical recycling country.

Economical recovery is seen. GDP growth is up by 1.9%.

Inflation rate is 0.2% and unemployment rate is 3.2%. Swiss Plastic Machinery export is up by 3%, Injection Moulding Machine 2.2%, Thermoforming Machines 19.1%, Blow Moulding Machines 14.2%, Extruders -6.9% and Moulds for rubber or plastics 14.5%. They export plastic machinery to top 15 countries. India stands 12th whereas Germany is no. 1 and US – No. 2 and China is no. 5 in their list. They are more focused on precision machinery which are one of the best in the world.

SPAIN Though the economy is in bad shape, there is improvement in the sentiment in general that they will have a good year ahead.

SPI – Society of Plastic industry – USA

MEXICO

Activities highlighted

Mexico is an important representative of the plastic industry of South America. Mexican economy fell within instability and low growth. From 1981 to 2013 the country grew at the rate of 2.1% per annum. It has FTA with 43 countries.

1. Annual Programmes – workshops etc.

2. Plastics Champion Meet At Washington DC, Meet congress man etc.

3. Communication and Outreach i.e. with ACC and others.

4. Washington Fly in - 8 Trade Association, 78 Attendees, 92 Meeting To reform outdated Laws.

The Plastic industry in Mexico had a positive performance in 2012. After several years the production grew at 4.8% and consumption at 5.9%. Plastics exports increased at 28%. Their current polymer consumption is 6.41 Million Tons. They had a good growth in Automobile and packaging industry. The polymer consumption is led by PP 22%, PET 14%, PE 9%, PS 10%, PVC 9% and rest others.

5. District wise study of Plastic industry i.e. wages, taxes they pay, employees employed and discussion with the local Member of Parliament.

6. Plant Tours – every 3 weeks alongwith the Congress man.

7. Networking with members Mobile, Web, I phone, I pad etc.

There are 4530 plastic manufacturing companies and they gave employment to 2.20 Lac employees. ANIPAC, their Association is working on training programme that will include eco design of plastics, savings reducing use of materials and savings using renewable energy. They have signed agreement for Marine Litter – Zero Pellets (Operation Clean Sweep).

8. By December 2014 SPI is moving to a much bigger rental space for office in Washington DC near White House area.

All above activities are profit generating or self supporting except core activity funded by SPI. Overall SPI makes profit in all activities.

NPE 2015 slogan - WE MAKE GREAT THINGS

SOUTH AFRICA

HAPPEN

In South Africa the overall GDP growth was 3.8% and manufacturing was 11.6%, Per Capita consumption 27kg of plastics. They have 1800 converters and convert 1.4 Million tons of prime material per annum. The Plastic industry in South Africa employs 60000 people. 55% of polymer goes into packaging. Last year plastic industry grew by 2.2%.

NPE Space – Last NPE 2012 - 106000 Sq.ft. sold. This time it is 30% more and participation by 130 countries.

Visitors – last time 56000 and this time 65000 Overall, all countries are on growth path in Plastic Industry. They are now more optimistic of doing more business with India and they expect Indian Plastic industry to be as good as China.

Plastic Industry market sector – Building & construction 15.3%, Flexible Packaging 25.8% and Rigid Packaging P L A S T I C S N E W S

18

J U L Y 2014

AIPMA AT WORK

Budget Analysis M r. S h a i l e s h S h e t h i s a n Independent Corporate Advisor as well as Member of the Board of Directors of several companies.

Currently he is advising AIPMA in process of transformation through Project Kayakalp.

3

Infrastructure - Entire spectrum from water (infact Panchabhuta) to smart cities.

4

Youth & Women Affairs

5

Significant Emphasis on North Eastern States,J & K. Reforms

1

FDI in Defence from 26 to 49%

2

FDI in Insurance from 26 to 49%

Infrastructure

3

Disinvestment 58000 crs in F.Y. 2015

1

37,800 crs National Highways 8500 kms @ 23 kms per day (of which 3000 crs in North East)

4

Fiscal Deficit Targets

2

11600 crs for 16 New Ports

3

7060 crs for 100 New Smart Cities

4

5000 crs on Agri Warehouses

5

5000 crs for Nabard for Long Term Cedit to Farmers

6

4000 crs for National Rural Infrastructure Development Fund

7

4000 crs for Low Cost Housing

8

3000 crs for Water Scheme for Rural Area

9

2000 crs for clean Ganga Project

4.1% (15), 3.6% (16), 3% (17).

5

GST to be introduced in F.Y. 2015 Industry Drivers

10 1000 crs Strategic Railway Lines 11 500 crs Ultra Mega Solar Power Project 12 15000 km of new Gas Pipelines 13 Revitalizing SEZs'

1

6 new Textile Clusters

2

Redifining MSME by size

3

2 Bio Tech Clusters

4

Investment allowance of 15% for investment above 25 crs upto 31/03/17

5

Leveraging PPP Model

6

PSU's to spend 247000 crs on Capex in F.Y 2015

7

10000 crs for Financing Start-up Firms and MSME sector

8

E-commerce for sale of India manufactured goods 'Online' by overseas portals

1

Not scrapping Retrospective Tax

2

Retargeting not cut in subsidies

3

14 Airports in Tier I and II Cities 15 Diamond Quadrilateral Rail Project

Disappointment

16 Tax Holiday for Power extended till 31/3/17 (for Ten Years from Start) Direct Tax Proposals 1

2 to 2.5 lacs income exempt all citizens

No Scheme to unearth black money in India or stashed Abroad

2

2.5 to 3 lacs income exempt sr. citizens

Indirect Taxes

3

80C limit raised to 1.5 lacs from 1 lac

1

No Significant Changes.

PPF ceiling upto 1.5 lacs from 1 lac

Conclusions

Educational & Medical 1

5 New IIMs; 4 IITs

2

4 new AIMS

3

National Sports Academies

● Big boost to Infrastructure and Manufacturing. ● Ideas are good. Implementation remains to be seen; Modified Governance inspires confidence.

Budget Thrust Visible 1

Entire Agri Value Chain - Farm to Hearth

2

Entire Power Value Chain - Mining to Metering

P L A S T I C S N E W S

● Results will be visible in F.Y 2015. GDP Growth may be at least 6.5 to 7%.

19

J U L Y 2014

AIPMA AT WORK

P L A S T I C S N E W S

20

J U L Y 2014

AIPMA AT WORK

Technology Excellence Award function organized by CIPET associations of India, Polymer manufacturers, all officials of our parent ministry DCPC & some technocrats from abroad.

elhi visit on 17th July 2014 for Technology Excellence Award function organized by CIPET & meeting with Shri Ananth Kumar Hon. Minister for Chemicals & Fertilisers Government of India

D

We i.e. myself & Kailashbhai got the opportunity to have dinner sharing the same table with Hon. Minister Shri Ananth Kumar, Secretary Shri Indrajit Pal, Joint Secretary Shri Avinash Joshi, where we conveyed AIPMA concern for No Post Budget Relief to plastic processing industry, though government has given it.

He asked the details and we gave industry concern of polymer price hike after the budget and our request for reduction in excise & custom duty & to stop import of finished plastic goods under FTAs at NIL duty or nominal duty, which is not considered. He asked both the Secretaries reasons for the same. Both gave their points, but we were able to convey him the processing industry concern very precisely.

It was pleasure to attend Annual 4th National Award function, jointly organised by Department of Chemicals & Petrochemicals & CIPET at Manekshaw Centre, New Delhi.

Chief Guest Shri Ananth Kumar, Honble Minister for Chemicals & Fertilizers Government of India, Guest of Honour Shri Nihal Chand, Minister of State for Chemicals & Fertilizers were there.

DCPC Secretary Shri Indrajit Pal, Joint Secretary Shri Avinash Joshi, Dr S K Nayak DG CIPET were the host & on the Dias.

This time 319 nominations were received and 69 were selected in the first round. Ultimately 23 were selected.

One of the AIPMA members, Mr. Dave of Dave Technical Services, Mumbai was selected, our congratulations to him.

It was a nice networking. Hon Minister was very clear, ready to hear, help & address our problems. Let us hope for the best.

Arvind M. Mehta Chairman Governing Council AIPMA Past President - AIPMA & Plastindia

PRIVATE

By order of a retained client

EXCELLENT RANGE OF COSMETIC AND PHARMACEUTICAL BOTTLE MOULDS (MAINLY UNUSED)

Secretary Shri Indrajit Pal, in his Mr. R. K. Aggarwal - Vice President - North inaugural speech, Zone - AIPMA, Mr. Arvind Mehta - Chairman highlighted concerns Governing Council - AIPMA, Mr. Kailash Murarka - Chairman Plastivision India of Government of 2017 with Chief Guest Shri Ananth Kumar India i.e. in India, - Hon. Minister for Chemicals & Fertilizers, m a n u f a c t u r i n g Government of India and Mrs. Ananth Kumar. sector today is 15% of GDP, which is the root cause of many problems. New government wants to lift it to 25% of GDP, by which India can grow faster, prosper and this potential is in plastic industry, which can give maximum employment at comparatively low investment as 90% are in SMEs. Per Capita consumption today is 10 kg & by 2020 it is set to be double, so more opportunities.

This unique opportunity also includes 3 multi cavity preform mould sets

LOCATION: Rushock, UK

FEATURING: Unique opportunity to purchase an excellent range of cosmetic and pharmaceutical bottle moulds mainly unused) - IMMEDIATE AVAILABILITY • Generic, own label, industry standard product design and sizes • 230 Blow Moulds, 100ml to 1 litre (numerous modern designs) • Standard product categories, liquid soap, shampoo, The moulds are shower gel, hand creams etc. located in the UK • Primarily twin cavity moulds - 125mm Centres and are immediately • Manufactured for Boots by Beaubury Moulds UK available either • Each mould complete with grippers/masks & blow pins as single units or in • Also available 3 multi cavity preform mould sets for sets/suites Nissei (Injection Stretch) and Jomar (Injection Blow)

Hon. Minister Shri Ananth Kumar said, Petrochemicals touches life of each & every citizen of India i.e. 120 Billion people of India.

He feels 2nd revolution in plastics is Green Development. This is a requirement of country in 21st century, which can be more reused & more recycled. He insisted on Green Plastic Revolution, skill development & setting up of CIPET Centers in each & every state of India, as plastic industry is in all the states.

To view and bid on the lots, visit: international.go-dove.com/en/event-18662 For further information, please contact:

TOM HUTCHINSON

He gave awards to 23 recipients of technology innovations awards selected by the jury. The function was attended by all plastic

P L A S T I C S N E W S

SALE

Telephone: +44 7774652425 tom.hutchinson@liquidityservices.com

21

J U L Y 2014

P L A S T I C S N E W S

22

J U L Y 2014

10

INDIA 2017

International Plastics Exhibition & Conference Where the future of plastic is...

P L A S T I C S N E W S

23

J U L Y 2014

COMPANY NEWS

Dow to Begin Construction on Ethylene ONGC's Production Facility at Freeports petrochemical he Dow Chemical Company is to begin construction of its previously announced worldscale ethylene production facility, representing a prominent milestone in delivering on its strategy to invest in its performance-based portfolio of technology-enabled businesses.

T

This significant investment in Dow’s Texas Operations in Freeport remains on track and on-plan for start-up in H1-2017, and will employ up to 2,000 workers during construction.

“This world-scale ethylene facility is a foundational element in Dow’s strategy to utilize low-cost and advantaged shale gas feedstocks to enable growth in key value-add market-driven businesses,” said Andrew N. Liveris, Chairman and

Chief Executive Officer. “Collectively, Dow’s U.S. Gulf Coast investments serve as an integral component of our global growth strategy, where we are leveraging our first-mover advantage to deliver significant shareholder value, enabling the Company to achieve our near-term $10 billion EBITDA goal and beyond. ”With a nameplate capacity of approximately 1500 KTA, Dow’s new ethylene production facility is part of a multi-billion dollar investment. market competitiveness.” Dow Texas Operations in Freeport is Dow’s largest integrated manufacturing site worldwide and the largest chemical complex in North America.

Honeywell to supply Integrated Controls and Safety Solution to QAFAC oneywell Process Solutions announced that it will supply a new integrated control and safety system for Qatar Fuel Additives Company's (QAFAC) Mesaieed Industrial City plant, 50 kilometers south of Doha. The upgrade will help the plant reduce operating costs and improve efficiencies as it increases production of methanol and MTBE (methyl tertiary butyl ether), a key gasoline additive that reduces tailpipe emissions.

H

Honeywell's integrated control and safety solution, including a new fire and P L A S T I C S N E W S

gas system, will improve automation at the plant, increase cyber security, and enhance operator effectiveness.

QAFAC will also benefit from ongoing long-term services through Honeywell's lifecycle support.

QAFAC, a joint venture between state-backed Industries Qatar, OPIC Middle East, LCY and IOL, plans to become one of the top five international producers of methanol and butane derivatives by 2020. It is also planning to commission an $80 million carbon dioxide recovery project this year to capture 500 tons of CO(2) a day for 24

complex to be ready in Q1-2015 NGC Petro Additions Ltd (OPAL)'s $4 billion integrated petrochemical complex in Dahej (having capacity to produce 1.1 million tonne of ethylene and 400,000 tonne of propylene) is scheduled to be commissioned in the first quarter of 2015.

O

O PA L C h i e f E x e c u t i v e Officer K Satyanarayan said "This complex, located in Dahej Special Economic Zone (D-SEZ), is one of the largest of its kind in the country.” The complex will consist of a dual feed cracker unit and associated facilities with a capacity to produce 1.1 million tonne of ethylene and 400,000 tonne of propylene annually. re-injection into the production cycle.

When added to gasoline, MTBE enhances octane levels to reduce engine knocking. It also helps the gasoline burn more completely, which reduces tailpipe emissions and helps to meet Euro 5 standards.

QAFAC produces MTBE using process technology licensed from UOP, a Honeywell company that is a leading developer of technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries.

J U L Y 2014

COMPANY NEWS

Wison produces 360 million pounds of light olefins using UOP’s MTO process UOP LLC, a Honeywell company, announced that its licensee, China's Wison (Nanjing) Clean Energy Co. Ltd., has produced more than 360 million pounds of light olefins at a plant in Nanjing, China, using UOP's breakthrough methanol-to-olefins (MTO) process technology.

The plant, the first commercialscale facility to use the UOP/Hydro MTO process technology, has been operating since September 2013 and is successfully meeting expectations for the quality and quantity of light olefins, as well as other performance criteria.

The Wison plant, designed by Wison Engineering, the largest private sector chemical engineering, procurement and construction management (EPC) service provider in China, has an annual production capacity of 300,000 metric tpa of ethylene and propylene. UOP provided technology licenses, basic engineering, catalysts, adsorbents, specialty equipment, and technical services for the plant.

The Wison facility is using UOP's Advanced MTO process that combines the UOP/Hydro MTO process and the Total/UOP Olefin Cracking process.

The combination significantly increases yields and feedstock efficiency. The process converts methanol, which can be derived from low-cost raw materials such as coal or natural gas, into ethylene and propylene. Based on proprietary UOP catalysts, the Advanced MTO process provides P L A S T I C S N E W S

high yields with low operating costs.

MTO also offers flexibility in the ratio of propylene to ethylene produced, so operators can adjust plant operations to most effectively address market demands. The Wison plant, designed

by Wison Engineering, the largest private sector chemical engineering, procurement and construction management (EPC) service provider in China, has an annual production capacity of 300,000 metric tpa of ethylene and propylene.

commercial-scale unit built and operated by Total in Feluy, Belgium.

Since 2011, UOP has announced four licenses for MTO technology in China. Shandong Yangmei Hengtong Chemicals Co. Ltd., expected to start up later this year, will use the technology to produce 295,000 metric tons per year of ethylene and propylene, and Jiutai Energy (Zhungeer) Co., is expected to start up in 2015.

UOP provided technology licenses, basic engineering, catalysts, adsorbents, specialty equipment, and technical services for the plant. "This new production facility is an important milestone for the technology, Wison and China, facilitating the coal-tochemicals industry development roadmap in China," said Liu Haijun, senior vice president and executive director of Wison Engineering.

"The close cooperation between Wison Engineering and UOP on the technological front has pushed forward the development of MTO technology and the upgrading of the modern coalto-chemicals industry."

LyondellBasell’s steam cracker in Texas to restart

The UOP/Hydro MTO process technology was successfully demonstrated in a semi-commercialscale unit built and operated by Ineos (then Norsk-Hydro). The TotalUOP OCP process technology was developed jointly by UOP and Total Petrochemicals and demonstrated in an integrated MTO-OCP semi-

The startup activity coincided with a flaring notification left by the company on a community hotline.

The turnaround also includes a planned capacity expansion; the company previously announced plans to increase La Porte's ethylene production capacity to 2.5 billion lb/year.

25

S olefins producer LyondellBasell is in the process of restarting its steam cracker in La Porte, Texas,. The planned turnaround at the cracker, which has an ethylene production capacity of 1.7 billion lb/year, started in late March and was to be completed by June 20, though unforeseen issues pushed the startup procedures to late June.

U

J U L Y 2014

COMPANY NEWS

Sandvik awarded supply contract of PO Foster Wheeler for green field project in China Awarded EPCM andvik Materials Technology has been awarded the contract to supply specialist heat exchanger tubes to a prestigious chemical green field project in Nanjing, China.

SAF 2205™ duplex stainless steel tubes were specified for the project due to the fact they are particularly suitable for use in applications involving highly corrosive conditions.

More than 400 tonnes of duplex tubes, including both straight and U-bend, are to be supplied and installed at a world-scale Propylene Oxide (PO) production plant with the first quantities being delivered in October 2014 and continuing into the first quarter of 2015.

The material offers excellent mechanical strength as well as high levels of resistance to general corrosion and other types such as stress corrosion cracking, and pitting and crevice corrosion.

S

Sandvik is also working closely the engineering team which is providing the technical support for the project and have also attended special technical training sessions at the Zhenjiang tube mill. The production of PO results in a corrosive process environment which can have particularly detrimental effect on carbon steel equipment. Sandvik

Properties of Sandvik SAF 2205 ensure longer life of the tubes, with superior properties to standard stainless steels that have been shown to last for as little as 12 to 18 months in some cases. This in turn means that maintenance time and costs are reduced, with the added benefit of the potential for production downtime being kept to a minimum.

IOCL likely to complete construction of oil refinery at Paradip by year end he construction of oil refinery at Paradip by Indian Oil Corporation Ltd (IOCL) is expected to get completed by the end of this year.

IOCL’s Pradip refinery work has been delayed because of various hurdles including slump in the oil market, land and labour problems.

T

Also there has been a delay in commissioning of the captive power plant and protests over laying of water pipelines from Mahanadi to the plant P L A S T I C S N E W S

site. Originally envisaged to be a 6 Mln tpa refinery at an estimated investment of Rs 8,300 crore, the capacity was later raised to 15-mtpa.

During the meeting Odisha raised the issue of lack of progress on the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) planned to be developed around the refinery with IOCL acting as is the anchor tenant.

26

contract in North Carolina oster Wheeler AG subsidiary of its Global Engineering and Construction Group has been awarded an engineering, procurement and construction management contract by Owens Corning for a new composite materials manufacturing facility in Gastonia, North Carolina.

F

The Gastonia operation will support growing customer demand for glass non-woven products serving the global building materials market.

Non-woven products feature enhanced aesthetics, mold and fire prevention, and corrosion resistance.

However, Foster Wheeler's contract value was not disclosed.

Speaking about the development the company maintined According to the statement the engineering, procurement and early construction work was included in the company’s first-quarter 2014 bookings and the balance of the construction management scope is expected to be released later in 2014.

Foster Wheeler’s scope of work is expected to be completed by the end of 2015.

J U L Y 2014

COMPANY NEWS

Asahi Kasei Chemicals to construct AZP polymer facility in Chiba apanese chemicals producer Asahi Kasei Chemicals has plans to construct a manufacturing facility in Sodegaura, Chiba, to produce AZP optical polymer used in a range of applications, including high-performance displays and various optical components.

J

The company has recently developed the AZP optical polymer featuring zero birefringence achieved through novel molecular design. The proposed manufacturing facility is expected to commence operations in Q1-2015. AZP is said to be an

alternative for glass in display screens and enables clearer images and efficient use of light.

With the growth in information technology, TVs, PCs, smart phones and in-car navigation systems increasingly require displays that provide higher definition, efficient use of light and lower power consumption.

The birefringence characteristics of conventional polymers for displays cause some of the light passing through to refract or leak, thereby diminishing contrast and lowering clarity, according to Asahi Kasei Chemicals.

ONGC evaluates merger of ONCG Mangalore Petrochemicals with MRPL NGC is evaluating a proposal to merge ONGC Mangalore Petrochemicals (OMPL) with Mangalore Refinery and Petrochemicals (MRPL).

O

The PSU firm has appointed consultancy firm Deloitte to come up with a fair valuation of OMPL and is expected to p with the valuation and its recommendations by next month.

The petrochemical complex, set up over 442 acre in Mangalore, is expected to be commissioned

by August, after a delay of more than a year. The R5,750 crore-worth petrochemical project is currently promoted by ONGC and MRPL, both of whom hold a total equity of 49%.

P L A S T I C S N E W S

According to reports the PSU firm is in talks with Kuwait Petroleum, Qatar Petroleum and Emirates National Oil Company, among others to sell remaining stake in OMPL. MRPL, a refinery firm, is also a subsidiary of ONGC, where the Maharatna company owns 71.63%.

Also the fact remains another PSU firm, Hindustan Petroleum Corporation, has 16.96% stake in the refiner. The remaining 11.42% is being held by institutions, FII, DII, non-institutions and bodies corporate. In case ONGC decides to go-ahead with the proposal, MRPL would have to seek shareholder approval.

27

New reactor at Nova he new 38 mtr reactor for Nova Chemical Corporation’s expanded polyethylene plant was lifted into place at the Joffre complex. The approximately 280-tonne piece of equipment is at the centre of a billion-dollar expansion of Nova’s polyethylene plant.

T

It joins two existing reactors and is expected to boost total production capacity by 40 percent to approximately 2.5 billion pounds of linear low density polyethylene annually.

The project, which started last spring, is expected to wrap up by mid-2016.

Tianjin Petrochem shuts splitter inopec Corp's Tianjin Petrochemical Corp has shut a condensate splitter for an indefinite period after a connected pipeline was found corroded during a safety inspection.

S

The 1.2 million tpa (30,000 barrels per day) facility was started in April. It may take a year or two to build another one. After the shutdown, Sinopec Tianjin has switched to using more domestically produced naphtha, as well as liquefied petroleum gas (LPG) to make ethylene. It previously imported condensate from suppliers in Australia & Iran.

J U L Y 2014

FEATURES

Union Budget - Lots of Promises and Anticipations inance Minister Arun Jaitley announced the Union Budget earlier this month on Thursday 10, July 2014. Though the budget has no specifics but it does create a Rosy picture. There has been lot of discussion on various forums while many say it is nothing new, some saying they could have done much better. Moreover, some section is of the view this is just a continuous budget and we can expect the so called NDA budget next year. while the government has already said Growing aspirations of people will be reflected in the development strategy of the Government led by the Prime minister Shri Narendra Modi and its mandate of “Sab ka Saath Sab ka Vikas”.

The Current Economic Situation and the Challenges

• Tax to GDP ratio must be improved and Non-tax revenues increased.

• Decisive vote for change represents the desire of the people to grow, Country in no mood to suffer unemployment, inadequate basic amenities, lack of infrastructure and apathetic governance.

Deficit and Inflation

While there have been measures to revive the economy, promote investment in manufacturing, rationalize tax provisions to reduce litigation, address the problem of inverted duty structure in certain areas.

Tax reliefs to individual tax payers.

• First budget of this NDA government lays a broad policy indicator of the direction in which it wish to take this country. Steps announced are only the beginning of the journey towards a sustained growth of 7-8 per cent or above within the next 3-4 years along with macro-economic stabilization.

F

Before jumping to conclusions we need to consider some ground realities as well.

• Challenging situation due to Sub five per cent growth and double digit inflation.

• Continued slow-down in many emerging economies a threat to sustained global recovery.

• Recovery seen with the growth rate of world economy projected at 3.6 per cent in 2014 vis-à-vis in 2013.

• Need to revive growth in manufacturing and infrastructure sectors.

• Decline in fiscal deficit from 5.7% in 2011-12 to 4.5% in 2013-14 mainly achieved by reduction in expenditure rather than by way of realization of higher revenue.

• Improvement in current account deficit from 4.7 % in 2012-13 to year end level of 1.7% mainly achieved through restriction on non-essential import and slow-down in overall aggregate demand. Need to keep watch on CAD. • 4.1 per cent fiscal deficit a daunting task in the backdrop of two years of low GDP growth, static industrial growth, moderate increase in indirect taxes, subsidy burden and not so encouraging tax buoyancy.

• The government is committed to achieve this target. Road map for fiscal consolidation outlines fiscal deficit of 3.6 % for 2015-16 and 3 % for 2016-17.

• Inflation has remain at elevated level with gradual moderation in WPI.

Union Budget 2014-15 proposals pertaining to Petrochemicals / Plastics: i)

Reduction of the basic Customs Duty on ethane, propane, ethylene, propylene, butadiene and ortho-xylene from 5% to 2.5%.

ii) Exempt 4% SAD on PVC sheet and ribbon used for the manufacture of smartcards. iii) Exemption from basic customs duty on specified inputs for use in the manufacture of EVA sheets and back sheets. iv) Exemption from Excise duty for EVA sheets and solar back sheets and specified inputs used in their manufacture. v) Exemption of Polyester stretch fiber and Polyester filament yarn manufactured from Plastic Waste and scrap including PET bottles from Excise duty w.e.f. from 29th June 2010 to 7th May 2012. vi) Levy prospectively a nominal duty of 2% without Cenvat benefit and 6% with Cenvat benefit on such PSF and PFY.

P L A S T I C S N E W S

28

J U L Y 2014

FEATURES • The problem of black money must be fully addressed.

• Bold steps required to enhance economic activities and spur growth in the economy.

Administrative Initiatives • Sovereign right of the Government to undertake retrospective legislation to be exercised with extreme caution and judiciousness keeping in mind the impact of each such measure on the economy and the overall investment climate.

• A stable and predictable taxation regime which will be investor friendly and spur growth.

in tax laws is required to be set up.

• Convergance with International Financial Reporting Standard (IFRS) byAdoption of the new Indian Accounting Standards (2nd AS) by Indian Companies.

• Setting up of Expenditure Management Commission to look into expenditure reforms.

increasing the shareholding of the people in a phased manner.

PSU Capital Expenditure • PSUs will invest through capital investment a total sum of Rs. 2,47,941 crores in the current financial year.

Smart Cities

• Employment exchanges to be transformed into career centres. A sum of Rs. 100 crore provided .

• A sum of Rs. 7060 crore is provided in the current fiscal for the project of developing '100 Smart Cities’

Economic Initiatives Foreign Direct Investment (FDI)

Real Estate

• Government to promote FDI selectively in sectors.

• Incentives for Real Estate Investment Trusts (REITS). Complete pass through for the purpose of taxation.

• Legislative and administrative changes to sort out pending tax demands of more than Rs. 4 lakh crore under dispute and litigation.

• The composite cap of foreign investment to be raised to 49 per cent with full Indian management and control through the FIPB route.

• A modified REITS type structure for infrastructure projects as the Infrastructure Investment Trusts (INVITS).

• Resident tax payers enabled to obtain on advance ruling in respect of their income-tax liability above a defined threshold.

• The composite cap in the insurance sector to be increased up to 49 per cent from 26 per cent with full Indian management and control through the FIPB route.

• These two instruments to attract long term finance from foreign and domestic sources including the NRIs.

• Measures for strengthening theAuthority forAdvance Rulings.

• Income-tax Settlement Commission scope to be enlarged.

• National Academy for Customs & Excise at Hindupur in Andhra Pradesh.

• The subsidy regime to be made more targeted for full protection to the marginalized, poor and SC/ST. • New Urea Policy would be formulated.

• Introduction of GST to be given thrust.

• High level committee to interact with trade and industry on regular basis to ascertain areas requiring clarity P L A S T I C S N E W S

• Requirement of the built up area and capital conditions for FDI to be reduced from 50,000 square metres to 20,000 square metres and from USD 10 million to USD 5 million respectively for development of smart cities.

• The manufacturing units to be allowed to sell its products through retail including E- commerce platforms.

Bank Capitalization • Requirement to infuse Rs. 2,40,000 crore as equity by 2018 in our banks to be in line with Basel-III norms

Irrigation • Rs. 1000 crore provided for “Pradhan Mantri Krishi Sinchayee Yojna” for assured irrigation.

Rural Development • Shyama Prasad Mukherji Rurban Mission for integrated project based infrastructure in the rural areas.

• Rs. 500 crore for “Deen Dayal Upadhyaya Gram Jyoti Yojana” for feeder separation to augment power supply to the rural areas.

• Rs. 14,389 crore provided for Pradhan Mantri Gram Sadak Yojna(PMGSY) .

• Capital of banks to be raised by 29

J U L Y 2014

FEATURES • More productive, asset creating and with linkages to agriculture and allied activities wage employment would to be provided under MGNREGA. • Under Ajeevika, the provision of bank loan for women SHGs at 4% to be extended to another 100 districts.

• Initial sum of Rs. 100 crore for “Start Up Village Entrepreneurship Programme” for encouraging rural youth to take up local entrepreneurship programs .

• Allocation for National Housing Bank increased to Rs. 8000 crore to support Rural housing.

• New programme “Neeranchal” to give impetus to watershed development in the country with an initial outlay of Rs. 2142 crores.

• Backward Region Grant Fund (BRGF) to be restructured to address intra-district inequalities.

Scheduled Caste/Scheduled Tribe • An amount of Rs. 50,548 crore is proposed under the SC Plan and Rs. 32,387 crore under TSP. • For the welfare of the tribals “Van Bandhu Kalyan Yojna” launched with an initial allocation of Rs. 100 crore.

Senior Citizen & Differently Abled Persons • Varishtha Pension Bima Yojana (VPBY) to be revived for a limited period from 15 August, 2014 to 14 August, 2015 for the benefit of citizens aged 60 years and above.

• Acommittee will to examine and recommend how unclaimed amounts with PPF, Post Office, saving schemes etc. can be used to protect and further financial P L A S T I C S N E W S

interests of the senior citizens?

• Government notified a minimum pension of Rs. 1000 per month to all subscriber members of EP Scheme.

Initial provision of Rs. 250 crore.

• Increase in mandatory wage ceiling of subscription to Rs. 15000. A provision of Rs. 250 crore in the current budget.

• EPFO to launch the “Uniform Account Number” Service for contributing members .

• Scheme forAssistance to Disabled Persons for purchase/fitting ofAids andAppliances (ADIP) extended to include contemporary aids and assistive devices.

• National level institutes for Universal Inclusive Design , Mental Health Rehabilitation and a Centre for Disability Sports to be established.

• Assistance to State Governments to establish fifteen new Braille Presses and modernize ten existing Braille Presses.

• Government to print currency notes with Braille like signs for visibly challenged persons.

Women & Child Development • Outlay of Rs. 50 crores for pilot testing a scheme on “Safety for Women on Public Road Transport”.

• Sum of Rs. 150 crores on a scheme to increase the safety of women in large cities.

awareness and help in improving the efficiency of delivery of welfare services meant for women.

• School curriculum to have a separate chapter on gender mainstreaming.

• Drinking Water & Sanitation • 20,000 habitations affected with arsenic, fluoride, heavy/ toxic elements, pesticides/ fertilizers to be provided safe drinking water through community water purification plants in next 3 years • “Swachh BharatAbhiyan” to cover every household with sanitation facility by the year 2019.

Health and Family Welfare • Free Drug Service and Free Diagnosis Service to achieve “ Health For All” • Two National Institutes of Ageing to be set up at AIIMS, New Delhi and Madras Medical College, Chennai.

• A national level research and referral Institute for higher dental studies to be set up.

• AIIMS like institutions inAndhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in UP. A provision of Rs. 500 crores made.

• 12 new government medical colleges to be set up.

• “Crisis Management Centres” in all the districts of NCT of Delhi this year government and private hospitals.

• States’ Drug Regulatory and Food Regulatory Systems to be strengthened by creating new drug testing laboratories and strengthening the 31 existing State laboratories.

• A sum of Rs. 100 crore is provided for “Beti Bachao, Beti Padhao Yojana”, a focused scheme to generate

• 15 Model Rural Health Research Centres to be set up for research on local health issues concerning rural

30

J U L Y 2014

FEATURES population.

Information Technology

young, to own houses.

• A national programme in Mission Mode to halt the deteriorating malnutrition situation in India to be put in place within six months.

• Pan India programme “Digital India” to with an outlay of Rs. 500 crore to be launched.

• Mission on Low Cost Affordable Housing anchored in the National Housing Bank to be set up.

Education

• Programme for promoting “Good Governance” to be launched .A sum of Rs. 100 crore provided.

• A sum of Rs. 4000 crores for NHB from the priority sector lending shortfall with a view to increase the flow of cheaper credit for affordable housing to the urban poor/EWS/ LIG segment is provided

School Education • Government would strive to provide toilets and drinking water in all the girls school in first phase. An amount of Rs. 28635 crore is being funded for Sarv ShikshaAbhiyan(SSA) and Rs. 4966 crore for Rashtriya madhyamic Shiksha Abhiyan (RMSA).

• A School Assessment Programme is being initiated at a cost of Rs. 30 crore.

• Rs. 500 crore provided for “Pandit Madan Mohan Malviya New Teachers Training Programme” to infuse new training tools and motivate teachers.

• Rs. 100 crore provided for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses.

Higher Education • Jai Prakash Narayan National Centre for Excellence in Humanities to be set up in MP. • Rs. 500 crore provided for setting up 5 more IITs in the Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala.

Information and Broadcasting • Rs. 100 crore allocated for 600 new and existing Community Radio Stations.

• Film & Television Institute, Pune and Satyajit Ray Film & Television Institute, Kolkata re proposed to be accorded status of Institutes of national importance and a “National Centre for Excellence in Animation, Gaming and Special Effects to be set up.

• Rs. 100 crore is provided for Kisan TV, to disseminate real time information to the farmers on issues such as new farming techniques, water conservation, organic farming etc.

Minorities • A programme for the up gradation of skills and training in ancestral arts for development for the minorities “Up gradation of Traditional Skills inArts, Resources and Goods” to be launched.

• An additional amount of Rs. 100 crores for Modernization of Madarsas.

Urban Development

Agriculture

• Vision of the Government is that 500 urban habitations to be provided support for renewal of infrastructure and services in next 10 years through PPPs

• Government to establish two moreAgricultural Research Institute of excellence inAssam and Jharkhand with an initial sum of Rs. 100 crore.

• Present corpus of Pooled Municipal Debt Obligation Facility facility to be enlarged to Rs. 50,000 Crore from Rs. 5000 crore.

• An amount of Rs. 100 crores set aside for “Agri-tech Infrastructure Fund”.

• Rs. 100 crore provided for Metro Projects in Lucknow and Ahemdabad.

• 5 IIMs in the States of HP, Punjab, Bihar, Odisha and Rajasthan.

Housing

• Simplification of norms to facilitate education loans for higher studies.

• Extended additional tax incentive on home loans shall be provided to encourage people, especially the

P L A S T I C S N E W S

• Slum development to be included in the list of Corporate Social Responsibility (CSR) activities to encourage the private sector to contribute more.

31

• Rs. 200 crore provided to openAgriculture Universities inAndhra Pradesh and Rajasthan and Horticulture Universities in Telangana and Haryana.

• A scheme to provide every farmer a soil health card in a Mission mode will be launched.

J U L Y 2014

FEATURES • Rs. 100 crore has been provided for this purpose and additional Rs. 56 crores to set up 100 Mobile Soil Testing Laboratories across the country.

• To meet the vagaries of climate change a “National Adaptation Fund” with an initial sum an amount of Rs. 100 crore will be set up.

• Asustainable growth of 4% inAgriculture will be achieved.

• Technology driven second green revolution with focus on higher productivity and including “Protein revolution” will be area of major focus.

• To mitigate the risk of Price volatility in the agriculture produce, a sum of Rs. 500 crore is provided for establishing a “Price Stabilization Fund”.

• Central Government to work closely with the State Governments to reorient their respective APMC Acts.

• Sum of Rs. 50 crores provided for the development of indigenous cattle breeds and an equal amount for starting a blue revolution in inland fisheries.

• Transformation plan to invigorate the warehousing sector and significantly improve post-harvest lending to farmers.

Agriculture Credit • To provide institutional finance to landless farmers, it is proposed to provide finance to 5 lakh joint farming groups of “Bhoomi Heen Kisan” through NABARD .

• A target of Rs. 8 lakh crore has been set for agriculture credit during P L A S T I C S N E W S

2014-15.

priority by 31 December this year.

• Corpus of Rural Infrastructure Development Fund (RIDF) raised by an additional Rs. 5000 crores from the target given in the Interim Budget to Rs. 25000 crores .

• Allocation of Rs. 5,000 crore provided for the Warehouse Infrastructure Fund.

• “Long Term Rural Credit Fund” to set up for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks with an initial corpus of Rs. 5,000 crore.

• Amount of Rs. 50,000 crore allocated for Short Term Cooperative Rural Credit .

• Sum of Rs. 200 crore for NABARD’s Producers Development and Upliftment Corpus (PRODUCE) for building 2,000 producers organizations over the next two years.

Food Security • Restructuring FCI, reducing transportation and distribution losses and efficacy of PDS to be taken up on priority.

• Government committed to provide wheat and rice at reasonable prices to the weaker sections of the society.

• Government when required will undertake open market sales to keep prices under control.

Industry • Central Government Departments and Ministries to integrate their services with the e- Biz -a single window IT platform- for services on 32

• Rs. 100 crore provided for setting up a National Industrial Corridor Authority.

• Amritsar Kolkata Industrial master planning to be completed expeditiously.

• Master planning of 3 new smart cities in the Chennai-Bengaluru Industrial Corridor region, viz., Ponneri in Tamil Nadu, Krishnapatnam inAndhra Pradesh and Tumkur in Karnataka to be completed.

• Perspective plan for the Bengaluru Mumbai Economic corridor (BMEC) and Vizag- Chennai corridor to be completed with the provision for 20 new industrial clusters.

• Development of industrial corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanization will be accelerated.

• Proposed to establish an Export promotion Mission to bring all stakeholders under one umbrella.

• ApprenticeshipAct to be suitably amended to make it more responsive to industry and youth.

Micro Small and Medium Enterprises (MSME) Sector • Skill India to be launched to skill the youth with an emphasis on employability and entrepreneur skills.

• Committee to examine the financial architecture for MSME Sector, remove bottlenecks and create new rules and structures to be set up and give concrete suggestions in three months.

J U L Y 2014

FEATURES • Fund of Funds with a corpus of Rs. 10,000 crore for providing equity through venture capital funds, quasi equity, soft loans and other risk capital specially to encourage new startups by youth to be set up.

• Rs. 50 crore is provided to start a Pashmina Promotion Programme (P-3) and development of other crafts of Jammu & Kashmir.

• Corpus of Rs. 200 crore to be set up to establish Technology Centre Network .

• An institution to provide support to mainstreaming PPPPs called 4PIndia to be set up with a corpus of Rs. 500 crores.

• Definition of MSME to be reviewed to provide for a higher capital ceiling.

• Programme to facilitate forward and backward linkages with multiple value chain of manufacturing and service delivery to be put in place.

• Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit.

• A nationwide “District level Incubation and Accelerator Programme” to be taken up for incubation of new ideas and necessary support for accelerating entrepreneurship.

Infrastructure

Shipping • Rs. 11635 crore will be allocated for the development of Outer Harbour Project in Tuticorin for phase I. • SEZs will be developed in Kandla and JNPT. • Comprehensive policy to be announced to promote Indian ship building industry.

Inland Navigation • Project on Ganges called “ Jal Marg Vikas’ to be developed between Allahabad and Haldia.

Textiles

New Airports

• Rs. 50 crore is provided to set up a Trade Facilitation Centre and a Crafts Museum to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi.

• Scheme for development of new airports in Tier I and Tier II Cities to be launched.

• Sum of Rs. 500 crore for developing a Textile mega-cluster at Varanasi and six more at Bareilly, Lucknow, Surat, Kutch, Bhagalpur and Mysore.

• Rs. 20 crore to set up a Hastkala Academy for the preservation, revival, and documentation of the handloom/handicraft sector in PPP mode in Delhi.

P L A S T I C S N E W S

• Work on select expressways in parallel to the development of the Industrial Corridors will be initiated.

For project preparation NHAI shall set aside a sum of Rs. 500 crore.

Roads sector • Sector needs huge amount of investment along with debottlenecking from maze of clearances.

Energy • Rs. 100 crore is allocated for a new scheme “Ultra-Modern Super Critical Coal Based Thermal Power Technology.”

• Comprehensive measures for enhancing domestic coal production are being put in place.

• Adequate quantity of coal will be provided to power plants which are already commissioned or would be commissioned by March 2015.

• An exercise to rationalize coal linkages to optimize transport of coal and reduce cost of power is underway.

New & Renewable Energy • Rs. 500 crores provided for Ultra Mega Solar Power Projects in Rajasthan, Gujarat, Tamil Nadu, Andhra Pradesh and Laddakh.

• Rs. 400 crores provided for a scheme for solar power driven agricultural pump sets and water pumping stations.

• Rs. 100 crore provided for the development of 1 MW Solar Parks on the banks of canals.

• An investment of an amount of Rs. 37,880 crores in NHAI and State Roads is proposed which includes Rs. 3000 crores for the North East.

• A Green Energy Corridor Project is being implemented to facilitate evacuation of renewable energy across the country.

• Target of NH construction of 8500 km will be achieved in current financial year.

Petroleum & Natural Gas

33

• Production and exploitation of

J U L Y 2014

FEATURES Coal Bed Methane reserves will be accelerated.

• Possibility of using modern technology to revive old or closed wells to be explored.

• Usage of PNG to be rapidly scaled up in a Mission mode.

• Proposal to develop pipelines using appropriate PPP models.

Mining • Changes, if necessary, in the MMDR Act, 1957 to be introduced to encourage investment in mining sector and promote sustainable mining practices.

Financial Sector Capital Market • Ongoing process of consultations with all the stakeholders on the enactment of the Indian Financial Code and reports of the Financial Sector Legislative Reforms Commission (FSLRC) to be completed.

• Government in close consultation with the RBI to put in place a modern monetary policy framework.

Following measures will be taken to energize Capital markets: • Introduction of uniform KYC norms and inter-usability of the KYC records across the entire financial sector.

Banking and Insurance Sector Banking • Time bound programme as Financial Inclusion Mission to be launched on 15 August this year with focus on the weaker sections of the society.

• Banks to be encouraged to extend long term loans to infrastructure sector with flexible structuring.

• Banks to be permitted to raise long term funds for lending to infrastructure sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending (PSL).

• RBI to create a framework for licensing small banks and other differentiated banks.

• Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force.

• Six new Debt Recovery Tribunals to be set up.

• For venture capital in the MSME sector, a Rs. 10,000 crore fund to act as a catalyst to attract private Capital by way of providing equity , quasi equity, soft loans and other risk capital for start-up companies with suitable tax incentives to participating private funds to be established.

• Introduce one single operating demat account

Insurance Sector

• Uniform tax treatment for pension fund and mutual fund linked retirement plan

• The pending insurance laws (amendment) Bill to be immediately brought for consideration of the

P L A S T I C S N E W S

34

Parliament.

• The regulatory gap under the Prize Chits and Money Circulation Scheme (Banking) Act, 1978 will be bridged.

Small Savings • Kissan Vikas Patra (KVP) to be reintroduced.

• A special small savings instrument to cater to the requirements of educating and marriage of the Girl Child to be introduced.

• A National Savings Certificate with insurance cover to provide additional benefits for the small saver.

• In the PPF Scheme, annual ceiling will be enhanced to Rs. 1.5 lakh p.a. from Rs. 1 lakh at present.

Defence and Internal Security • A further sum of Rs. 1000 crore to meet requirement for “One Rank One Pension”.

• Capital outlay for Defence increased

by Rs. 5000 crore including a sum of Rs. 1000 crore for accelerating the development of the Railway system in the border areas.

• Urgent steps would also be taken to streamline the procurement process to make it speedy and more efficient.

• Rs. 100 crore is provided for construction of a war memorial in the Princes Park, which will be supplemented by a War Museum. I am allocating a sum of Rs. 100 crore for this purpose.

• Rs. 100 crore is provided to set up

J U L Y 2014

FEATURES a Technology Development Fund for Defence.

Internal Security • Rs. 3000 crore is provided in the current financial year for modernization of state police forces.

• Adequate allocation forAdditional CentralAssistance for Left Wing ExtremistAffected districts..

• Rs. 2250 crore provided to strengthen and modernize border infrastructure.

• Rs. 990 crore allocated for the socio economic development of the villages along the borders.

• A sum of Rs. 150 crore ear-marked for the construction of Marine Police Station, Jetties and for the purchase of boats etc.

• Rs. 50 crores provided for construction of National Police Memorial.

Culture and Tourism • Rs. 200 crore provided to build the Statue of unity(National project).

• Facility of Electronic TravelAuthorization (e-Visa) to be introduced in phased manner at nine airports in India.

• Countries to which the Electronic Travel authorisation facility would be extended would be identified in a phased manner.

• Rs. 500 crore provided for developing 5 tourist circuits around specific themes.

• Rs. 100 crore provided for National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD).

P L A S T I C S N E W S

• Rs. 200 crore provided for National Heritage City Development andAugmentationYojana (HRIDAY).

• Rs. 100 crore provided for Archaeological sites preservation.

• Sarnath-Gaya-Varanasi Buddhist circuit to be developed with world class tourist amenities to attract tourists from all over the world.

• Water Resources and cleaning of Ganga • Rs. 100 crore provided for Detailed Project Reports for linking of rivers.

• Rs. 2037 crores provided for Integrated Ganga Conservation Mission “NAMAMI GANGE”.

• Rs. 100 crore provided for Ghat development and beautification at Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and Delhi.

• NRI Fund for Ganga will be set up.

Science and Technology • Government to strengthen at least five institutions as Technical Research Centres.

• Development of Biotech clusters in Faridabad and Bengaluru.

• Nascent agri-biotech cluster in Mohali to be scaled up. In addition, two new clusters, in Pune and Kolkata to be established.

• Global partnerships will be developed under India’s leadership to transform the Delhi component of the International Centre for Genetic Engineering and Biotechnology (ICGEB) into a world-leader in life sciences and biotechnology.

35

• Several major space missions planned for 2014-15.

Sports and Youth Affairs • Rs. 200 crore provided for upgrading the indoor and outdoor sports stadiums in Jammu and Kashmir Valley to international standards.

• Rs. 100 crore provided for sports university in Manipur.

• India to start an annual event to promote Unique sports traditions in the Himalayan region games.

• Rs. 100 crore provided for the training of sports women and men for forthcomingAsian games.

• A “Young Leaders Programme” with an initial allocation of Rs. 100 crore to be set up.

North Eastern States • Rs. 100 crore provided for development of organic farming in North Eastern States.

• Rs. 1000 crore provided for development of rail connectivity in the North Eastern Region.

• To provide a strong platform to rich cultural and linguistic identity of the North-East, a new 24x7 channel called “Arun Prabha” will be launched.

Andhra Pradesh and Telangana • Government committed to addressing the issues relating to development of Andhra Pradesh and Telangana in the AP Re-organization Act, 2014. Provision made by various Ministries/Departments to fulfill the obligation of Union Government.

J U L Y 2014

FEATURES NCT of Delhi • Rs. 200 crore for power reforms and Rs. 500 crore for water reforms to make Delhi a truly World Class City.

• Rs. 50 crore provided to solve the long term water supply issues to the capital region.

creation in Health and Education, Rural Roads and National Highways Infrastructure, Railways network expansion, clean energy initiatives, development of water resources and river conservation plans.

• Construction of long pending Renuka Dam to be taken up on priority.

• Total expenditure of Rs. 17,94,892 crore estimated. O Gross Tax receipts of Rs. 13,64,524 crore estimated. O Net to centre of Rs. 9,77,258 crore estimated.

Andaman and Nicobar Island and Puducherry

• Fiscal deficit of 4.1% of GDP and Revenue deficit of 2.9% estimated.

• Rs. 150 crore provided to tide over communication related problems of the Island. O Rs. 188 crore to Puducherry for meeting commitments for Disaster preparedness. Displaced Kashmiri Migrants

• New Statement to separately show plan allocation made for North Eastern Region.

• Rs. 500 crore provided to support displaced Kashmiri migrants for rebuilding their lives.

• Allocation of Rs. 53,706 crore for North East Regions.

• Allocation of Rs. 50,548 crore under SCSP and Rs. 32,387 under TSP. • Allocation for women at Rs. 98,030 crore and for children at Rs. 81,075 crore.

• Himalayan Studies • Rs. 100 crore provided to set up a National Centre for Himalayan Studies in Uttarakhand.

Budget Estimates • Mandate to be fulfilled without compromising fiscal consolidation.

• Non-plan Expenditure of Rs. 12,19,892 crore with additional provision for fertilizer subsidy and Capital expenditure for Armed forces.

• Rs. 5,75,000 crore Plan expenditure – increase of 26.9 per cent over actuals of 2013-14.

• Plan increase targeted towardsAgriculture, capacity

P L A S T I C S N E W S

Tax Proposals • Ambitious Revenue Collection Targets in Interim Budget. Proposed tax changes factored in the Budget Estimates 2014-15 • Measures to revive the economy, promote investment in manufacturing, rationalize tax provisions to reduce litigation, address the problem of inverted duty structure in certain areas. Tax reliefs to individual tax payers.

Direct Taxes Proposals • Personal Income-tax exemption limit raised by Rs. 50,000/- that is, from Rs. 2 lakh to Rs. 2.5 lakh in the case of individual taxpayers, below 36

the age of 60 years. Exemption limit raised from Rs. 2.5 lakh to Rs. 3 lakh in the case of senior citizens.

• No change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc.

• The education cess to continue at 3%.

• Investment limit under section 80C of the Income-taxAct raised from Rs. 1 lakh to Rs. 1.5 lakh.

• Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs. 1.5 lakh to Rs. 2 lakh.

• Conducive tax regime to Infrastructure Investment Trusts and Real Estate Investment Trusts to be set up in accordance with regulations of the Securities and Exchange Board of India.

• Investment allowance at the rate of 15% to a manufacturing company that invests more than Rs. 25 crore in any year in new plant and machinery. The benefit to be available for three years i.e. for investments upto 31.03.2017.

• Investment linked deduction extended to two new sectors, namely, slurry pipelines for the transportation of iron ore, and semi-conductor wafer fabrication manufacturing units.

• 10 year tax holiday extended to the undertakings which begin generation, distribution and transmission of power by 31.03.2017.

• Income arising to foreign portfolio investors from transaction in

J U L Y 2014

FEATURES securities to be treated as capital gains.

• Concessional rate of 15% on foreign dividends without any sunset date to be continued.

• The eligible date of borrowing in foreign currency extended from 30.06.2015 to 30.06.2017 for a concessional tax rate of 5% on interest payments. Tax incentive extended to all types of bonds instead of only infrastructure bonds.

• Introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.

• Introduction of range concept for determination of arm’s length price in transfer pricing regulations.

• To allow use of multiple year data for comparability analysis under transfer pricing regulations.

• To remove tax arbitrage, rate of tax on long term capital gains increased from 10% to 20% on transfer of units of Mutual Funds, other than equity oriented funds.

• Income and dividend distribution tax to be levied on gross amount instead of amount paid net of taxes.

• In case of non deduction of tax on payments, 30% of such payments will be disallowed instead of 100%.

opened during the current financial year to promote excellence in service delivery.

• Net Effect of the direct tax proposals to result in revenue loss of Rs. 22,200 crore.

Indirect Taxes Proposals • To boost domestic manufacture and to address the issue of inverted duties, basic customs duty (BCD) reduced on certain items.

• To encourage new investment and capacity addition in the chemicals and petrochemicals sector, basic customs duty reduced on certain items.

• Steps taken to boost domestic production of electronic items and reduce our dependence on imports.

These include imposition of basic customs duty on certain items falling outside the purview of ITAgreement, exemption from SAD on inputs/ components for PC manufacturing, imposition of education cess on imported electronic products for parity etc.

• Colour picture tubes exempted from basic customs duty to make cathode ray TVs cheaper and more affordable to weaker sections.

• To encourage production of LCD and LED TVs below 19 inches in India, basic customs duty on LCD and LED TV panels of below 19 inches reduced from 10% to Nil.

• Government to review the DTC in its present shape and take a view in the whole matter.

• To give an impetus to the stainless steel industry, increase in basic customs duty on imported flat-rolled products of stainless steel from 5% to 7.5%.

• 60 more Ayakar Seva Kendras to be

• Concessional basic customs duty

P L A S T I C S N E W S

37

of 5% extended to machinery and equipment required for setting up of a project for solar energy production.

• Specified inputs for use in the manufacture of EVA sheets and back sheets and flat copper wire for the manufacture of PV ribbons exempted from basic customs duty.

• Reduction in basic customs duty from 10% to 5% on forged steel rings used in the manufacture of bearings of wind operated electricity generators. Exemption from SAD of 4% on parts and raw materials required for the manufacture of wind operated generators.

• Concessional basic customs duty of 5% on machinery and equipment required for setting up of compressed biogas plants (BioCNG).

• Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5 per cent basic customs duty and 2 per cent CVD to eliminate all assessment disputes and transaction costs associated with testing of various parameters of coal.

• Basic customs duty on metallurgical coke increased from Nil to 2.5% in line with the duty on coking coal.

• Duty on ship breaking scrap and melting scrap of iron or steel rationalized by reducing the basic customs duty on ships imported for breaking up from 5% to 2.5%.

• To prevent mis-use and avoid assessment disputes, basic customs duty on semi- processed, half cut or broken diamonds, cut and polished diamonds and coloured gemstones rationalized at 2.5%.

J U L Y 2014

FEATURES • To encourage exports, pre-forms of precious and semi-precious stones exempted from basic customs duty.

• Duty free entitlement for import of trimmings, embellishments and other specified items increased from 3% to 5% of the value of their export, for readymade garments.

• Export duty on bauxite increased from 10% to 20%.

• For passenger facilitation, free baggage allowance increased from Rs. 35,000 to Rs. 45,000.

• To i n c e n t i v i z e e x p a n s i o n o f processing capacity, reduction in excise duty on specified food processing and packaging machinery from 10% to 6%.

• Reduction in the excise duty from 12% to 6% on footwear of retail price exceeding Rs. 500 per pair but not exceeding Rs. 1,000 per pair.

• Withdraw concessional excise duty (2% without Cenvat benefit and 6% with Cenvat benefit) on smart cards and a uniform excise duty at 12%.

• To develop renewable energy, various items exempted from excise duty.

• Exemption to PSF and PFY manufactured from plastic waste and scrap including PET bottles from excise duty with effect from 29th June, 2010 to 7th May, 2012.

• Prospective levy of a nominal duty of 2% without Cenvat benefit and 6% with Cenvat benefit on such PSF and PFY. • Concessional excise duty of 2% without Cenvat benefit and 6% with Cenvat benefit on sports gloves.

• Specific rates of excise duty

P L A S T I C S N E W S

increased on cigrettes in the range of 11 per cent to 72 per cent.

• Excise duty increased from 12% to 16% on pan masala, from 50% to 55% on unmanufactured tobacco and from 60% to 70% on gutkha and chewing tobacco.

• Levy of an additional duty of excise at 5% on aerated waters containing added sugar.

• To finance Clean Environment initiatives, Clean Energy Cess increased from Rs. 50 per tonne to Rs. 100 per tonne.

Service Tax • To broaden the tax base in Service Tax, sale of space or time for advertisements in broadcast media, extended to cover such sales on other segments like online and mobile advertising. Sale of space for advertisements in print media however would remain excluded from service tax. Service provided by radio-taxis brought under service tax.

• Services by air-conditioned contract carriages and technical testing of newly developed drugs on human participants brought under service tax.

• Provision of services rules to be amended and tax incidence to be reduced on transport of goods through coastal vessels to promote Indian Shipping industry.

• Services provided by Indian tour operators to foreign tourists in relation to a tour wholly conducted outside India to be taken out of the tax net and Cenvat credit for services of rent-a-cab and tour operators to be allowed to promote tourism.

38

• Service tax exempted on loading, unloading, storage, warehousing and transportation of cotton, whether ginned or baled.

• Services provided by the Employees’ State Insurance Corporation for the period prior to 1st July 2012 exempted, from service tax.

• Exemption available for specified micro insurance schemes expanded to cover all life micro-insurance schemes where the sum assured does not exceed Rs. 50, 000 per life insured.

• For safe disposal of medical and clinical wastes, services provided by common bio- medical waste treatment facilities exempted.

• Tax proposals on the indirect taxes side are estimated to yield Rs. 7525 crore.

• 24X7 customs clearance facility extended to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods to facilitate cargo clearance.

• ‘Indian Customs Single Window Project’ to facilitate trade, to be implemented.

• The scheme of Advance Ruling in indirect taxes to be expanded to cover resident private limited companies. The scope of Settlement Commission to be enlarged to facilitate quick dispute resolution.

• Customs and Central Excise Acts to be amended to expedite the process of disposal of appeals.

Hopefully the Finance Minister is able to implement his vision and perhaps we see revival of strong economy.

J U L Y 2014

FEATURES

Machine makers roll out expansion plans in China The Chinese injection moulding machine market has undergone a transformation where more hightech machines are being produced domestically. This trend was started by foreign machine makers that are now on an expansion drive, as observed at the recent Chinaplas 2014 show.

More locally made machinery In 2013, China’s total consumption of plastic machinery (excluding parts) was valued at RMB49 billion, compared to RMB49.3 billion in 2012. Of this, imports constituted 23%, compared to 27% the previous year, while local machinery produced was 77%, over the 73% from 2012, according to China Plastics Machinery Industry Association (CPMIA).

Meanwhile in 2013, imports of machinery from countries like Japan, Germany, Taiwan and Italy were all down, against 2012 data, with the exception of South Korea.

China’s processing market grew by 14.3% reaching USD304 billion in 2013. Hence, the domestic market constitutes the largest sales market for Chinese plastics machinery makers and grew by 12% or a value of RMB42 billion in 2013.

China’s largest injection moulding machine maker Haitian International Holdings also recorded higher domestic sales of 18.8% in 2013. But according to Helmar Franz, the company’s Chief Strategy Officer, who was speaking at a media briefing, a slower growth of 5% is expected for 2014, with more challenging times expected.

Full speed ahead for Engel and Demag China

expected there is no letting up in plans for expansions.

Austria-headquartered Engel Holding is setting up a 22,000 sq m production plant in Changzhou, Jiangsu, through its 100%-owned subsidiary, Wintec Engel Machinery.

With 100 employees, the plant is targeting a capacity of 300 machines/ year.

The core target market will be China, as well as processors in Southeast Asia, South Korea, Taiwan, and India.

“Wintec will appeal to processors looking for relatively standardised machines with a limited range of options,” said CEO Peter Neumann, speaking at a media briefing. He also said with Engel’s market share of 11% in Asia, “there is room for growth.”

Wintec will target the large commodity applications segment and will supply machines that will be different to Engel’s product range, offering reduced modularity and a smaller range of options. With the reduced complexity and specifications, the firm says it will be able to offer more competitive prices and with short delivery times.

Taiwan, South Korea and China. “We are entering a segment competing with Asian machines and not Western machines; the price value correlation will show that it is worthwhile for customers to invest in a Wintec machine rather than an Asian one,” said Neumann, adding that all the parts will be made locally, except for the controls that will come from Europe.

Engel already operates a facility in Shanghai for producing large machines. “The reason why we decided to start a second facility is to focus on three main applications: white goods; automotive and technical parts,” added Neumann. Wintec is also establishing a completely independent sales and service structure in China.

Another European supplier that already has a facility in China and is on an expansion mode is Demag Plastics Machinery (Ningbo), a 100% subsidiary of Sumitomo (SHI) Demag.

It recently broke ground on a EUR7 million facility, located around 10 km

Basically, it intends to capture the market share currently occupied

by Asian suppliers from

Even with the slower growth P L A S T I C S N E W S

39

J U L Y 2014

FEATURES from its existing plant in Ningbo. With a built-up area of 12,330 sq m, the plant will come on stream in July 2015. It is expected to have a production capacity of up to 1,000 machines/year from its current capacity of 650 machines/year.

Christian Blatt, CEO of KraussMaffei China. In view of this, the firm has inaugurated a second production hall at a current facility in Haiyan. With this expansion, the production space has been doubled to 22,000 sq m.

equipment in 2009 and reaction process machinery in 2011. “We have a strong market presence in China with three strong brands: KraussMaffei, KraussMaffeiBerstorff and Netstal,” added Blatt.

Stephan Greif, CEO Demag China, said that since its establishment in 1998, Demag Ningbo has been operating on rented production sites.

The new facility will be the company’s first own site and is expected to boost the company’s global growth.

Its target is to produce 300 machines/year and it has already produced 50 machines at the Haiyan plant it set up last year, which “is still at the ramping up stage”, said Blatt, during a media briefing. It is producing the MX series, in a range of 8503,200 tonnes, for the Asian market, targeting the automotive, packaging and electronics sectors.

Subsidiary company PET machine maker Netstal is also considering assembling machines in China, said CEO Hans Ulrich Golz, adding that a local operation would be set up to replicate the Switzerland facility.

Swiss-made Netstal machines have been sold in China for 11 years.

Demag Ningbo is currently producing the Systec C machine series, which is available with clamping forces of between 50-1,000 tonnes. In July 2015, additional machine series are planned to enhance the product portfolio in China.

The company also envisages increasing its exports, currently at 25%. In addition to local processors, Demag Ningbo supplies markets in Southeast Asia, the Middle East and Latin America.

KraussMaffei and Milacron expand their facilities Another machine maker that is reaping the bountiful growth is Germany-based KraussMaffei. “China is the fastest growing market (growing at a double digit growth) for us,” said

Using optimised production processes, the output times are shortened by almost half, which is welcome news for customers, explained Blatt. Added to this are the time and cost advantages since there is no need to transport items from Europe, along with a faster availability of spare parts and a service package that is tailored to meet local needs, emphasised Blatt.

When asked if other types of machines will be produced, Blatt said the GX series would “come later”.

Shown at Chinaplas was a new GX Spinform, with cube form technology on a swivel platen machine. It was demonstrating the production of a PP/ LLDPE push-pull closure in a cycle time of 6.4 seconds.

KraussMaffei has been present for more than 13 years in the Chinese market. It started off producing extrusion machinery in 2006, adding on rubber

P L A S T I C S N E W S

40

To s t r e n g t h e n i t s p r e s e n c e further, Netstal has now opened a demonstration and training centre, with test facilities, at the Haiyan plant.

It houses a fully electric 220-tonne Elion machine, which demonstrated production of blood collection tubes during the new plant inauguration. As a demonstration plant for the beverage industry, Netstal also installed a complete PET-LINE system with cooling and drying units back in September 2013. Moreover, in order to offer its customers better local service, it will also stock up spare parts for the market.

US-based Milacron also announced that it is doubling the capacity of its China factory to produce 950 injection J U L Y 2014

FEATURES moulding machines/year, and will start manufacturing extrusion and blow moulding equipment at a later stage.

Milacron President/CEO Tom Goeke was quoted as having said that the first phase would comprise the production of hybrid machines followed by machine models that are currently manufactured in the US and India and Europe.

The investment of up to US$5 million in its Milacron Plastics Machinery (Jiangyin) facility in Jiangsu province will open in July, and aims to tap more heavily into growth in China, Goeke said.

The company already produces the Elektron all-electric series in China and will expand the range from 30 tonnes to up to 650 tonnes clamping force. Servo-driven versions of its hydraulic Maxima series are also being manufactured at the current facility. It will also begin exporting the Chinamade Elektron series to the US, even though the growth of the Chinese facility is primarily driven by the local Chinese market, which accounts for about 80% of sales, according to Goeke.

Meanwhile, the demand for allelectric machines is growing in China, with 18,821 units sold in 2012 (according to research firm Interconnection). Hence, Milacron is banking on the growth to expand its small market share in allelectrics to more than 10%.

Arburg sells more to local processors But not all foreign machine makers are in a hurry to set up local production

P L A S T I C S N E W S

in China, resorting instead to expanding support services.

German machinery maker Arburg operates two subsidiaries in Shanghai (since 2004) and Shenzhen (set up in 2006) that sell made-in-Germany machinery.

Against the growth of the domestic processing sector and the requirement for higher technology, the company has witnessed a changing trend.

“While customers were mainly global players to begin with, around 80% of our customers are now local businesses who are increasingly using our high-tech machines,” said Max Man, Managing Director of Arburg China, adding that the focus is on the booming packaging and medical technology industries.

Another milestone last year was the opening of its machine warehouse in Shanghai. A range of electric, hybrid and hydraulic Allrounder machines are available and can be adapted to specific customer requirements as required. “This helps us achieve extremely short delivery times, making us faster than local providers,” claimed Man. At Chinaplas, Arburg displayed its Allrounder series, hybrid machine and a vertical model. It also had product and sector-specific machine configurations for the key industries in China such as packaging, medical technology and electronics as well as the production of IML packaging and syringe barrels with short cycle times and the processing of Hotmelt material.

Chinese machinery makers cashing in

In view of the growing demand, Arburg is expanding its premises in Shenzhen to provide more support.

“We will move into our new 1,250 sq m premises, affording us significantly more room in which to offer our customers even better support. The showroom alone measures 200 sq m, providing space to demonstrate three sets of Allrounders. Furthermore, there’s a machine stock room with capacity for up to seven Allrounders; to allow instant order delivery,” explained Man. 41

Haitian is opening two new plants in Ningbo, said Franz at the media briefing. The 120,000 sq m plant for the company’s production of fully electric machines has started up while the second 150,000 sq m-plant for largesize two-platen machines will start up next year.

The new facilities are required since demand for Haitian’s machinery is growing, having delivered 27,000 machines in 2013, compared to 22,000 units the previous year. It boasted 13.7% higher turnover of US$1.2 billion in 2013. The export business also grew by 3.6% and also set a new peak of US$340 million. Especially positive in 2013 were higher sales in Southeast Asia, Middle East, Africa, and US.

J U L Y 2014

FEATURES Its best seller continues to be the servohydraulic Mars series, of which it has sold 100,000 over the past six years, said Franz. In the fullyelectric sector, Haitian subsidiary Zhafir Plastics Machinery is seeing continuing success with the Venus series, having sold 1,000 machines last year.

At Chinaplas, Zhafir also presented its new electric Zeres machines, based on electric technology and equipped with an integrated hydraulic unit.

Other new exhibits from Haitian were

high-performance two-platen Jupiter model with clamping force from 1,0001,600 tonnes.

a high-performance version of the Mars with 170-480 tonnes clamping force for thinwall packaging and a

Meanwhile, to cater to its clientele in Qingdao another machinery maker, Ningbo Haitai Machinery is targeting the opening of its second facility by the end of this year, said a spokesperson.

Haitai currently operates from a 150,000 sq m facility in Ningbo where it produces about 20 different models.

It also exports around 70% of its machine output.

Kraton builds pilot plant for new polymerization and processing technologies raton Performance Polymers, a producer of styrenic block copolymers (SBCs) and other engineered polymers, has opened its new Kraton Innovation Center in Belpre, OH. This pilot facility allows Kraton to manufacture a wide range of SBC-type materials in quantities ranging from 25 kilograms to 50 metric tons.

K

A company spokesperson toldPlasticsToday that the facility will target completely new markets - "this is a development plant for new polymers and will be solely for new development products." The facility and its process equipment broadens the company's abilities in polymeric chemistry by reportedly leveraging unique, less traditional monomers and building blocks to meet customer needs and create innovative applications.

This new ability to generate developmental polymer and processing

P L A S T I C S N E W S

technologies also opens the door to applications and industries where traditional SBCs were unable to participate.

As the first asset of its kind built by Kraton, the pilot plant is located within the company's flagship commercial manufacturing facility in Belpre. This allows the new facility to capitalize on the existing plant's technical skills, talents and infrastructure. Its bridges the gap between laboratory and full-scale production of products within the development cycle, enhancing the company's ability to deliver developmental polymers in customizable quantities in 'record' time. It will reduce reliance upon Kraton's commercial manufacturing plants for test runs, resulting in fewer type changes and improved utilization of its manufacturing facilities.

"By making this additional

42

investment in innovation, we are accelerating our time to market and improving our supply chain capabilities, which enables us to meet the needs of our global customers. This new facility has garnered significant interest on the part of those customers and our development partners around the world," said Kevin Fogarty, president and CEO of Kraton. "It also underscores our long-term commitment to the MidOhio Valley and its economic growth."

Combined, the new pilot facility and the existing Belpre manufacturing plant employ nearly 600 employees and contractors, making Kraton one of the largest employers in the Mid-Ohio Valley area. Additionally, the modular design of the new pilot plant allows room for future expansion, and it is able to capitalize on the technical skills and product feedstocks of its on-site manufacturing plant.

J U L Y 2014

FEATURES

ENGEL sets new process integration n collaboration with HummelFormen and KVT Bielefeld, Engel sets the path for a new kind of process integration. The "joinmelt" process supports hot gas welding directly in the mold. Besides cost savings, it is said that the new process also improves part quality and functional safety.

I

While Hummel-Formen employs 250 people at two facilities and is specialized in injection and compression molds for plastics with weights of up to 100 tons. Its service portfolio covers everything from product development through to sample making under volume production conditions. The company KVT Bielefeld is specialized in the development and production of plastics welding machines for use in various industries from automotive and domestic appliances through

to telecommunications and medical technology.

Oil lines and reservoirs are typical examples for hollow composite parts which are conventionally produced using a multi-stage process. In the first stage, the two part halves are injection molded and then, in a second process step outside of the molding machine, they are welded together.

This multi-stage process usually requires concessions to part quality.

The commonly used vibration welding can lead to flashes along the welding seam. Ultra small particles, so-called "flitter," may appear and peel away, leading to the damage of further functional parts. Using the hot gas welding process would allow a clean and homogenous welding seam, but this process requires absolute planeparallel joining areas which injection molded parts do not always offer. There is usually a certain degree of warpage during the cooling phase and ejection of the part.

The "jointmelt" process The "jointmelt" process combines everything in one: injection molding is followed by the welding process, inside the molding machine, without the need to remove the two Injection molding is followed by the welding process halves of the part as without needing to remove the two halves of the part in an an intermediate step. intermediate step. (photo: Engel)

P L A S T I C S N E W S

43

This solution, for which a patent is pending, promises potential savings, especially in the automotive industry.

It removes the need for additional welding equipment, and part removal and re-insertion are no longer needed, as the finished product can removed directly out of the mold.

For this process, both halves of the component are injected simultaneously into a single mold. After the cooling phase, the mold is opened; with one half of the part staying in the left half and the other in the right half of the mold. The movable left half of the mold is now positioned so that both parts are opposite each other in the welding position. The heating element is positioned between the cavities and the edges of the component halves are heated. The mold then closes, and the two parts are bonded so that the finished part can be removed when the mold re-opens.

Improving quality and functional safety Besides the savings potential achievable due to the integration of two manufacturing steps previously performed in sequence, the new process also helps to improve the quality and functional safety of the parts. The fact that both product halves remain fixed in the mold during the welding process avoids issues with warping, and considerably reduces the time to market. The process creates a clean and thin weld which is particularly strong and achieves a superior quality to welds created by legacy techniques with respect to bursting pressure.

J U L Y 2014

FEATURES According to the company, this new technology is suitable for all thermoplastic materials.

The process developers also see potential for the processing of glass fiber reinforced polyamides as fluid distributing parts for use in engine compartments. In current molding practices these components have always had a visible bulge at the joint, making them prone to friction and reducing the service life of other functional parts, such as the valve tappets. As there is no bulge with the "joinmelt" process, there is additional savings of material and weight. Yet another benefit becomes apparent early in the development phase of new products: freedom of choice with respect to part geometry, as there is no need to take a specific welding

direction into account.

Teamwork with specialists from welding and mold technology Engel developed this new technology in cooperation with two partner companies. The injection molding machine manufacturer has taken responsibility for developing both the machine technology The joinmelt method shows potential when and the software for controlling processing glass-fiber-reinforced polyamides for the integrated process workflow. leading components in the engine compartment, Hummel-Formen in Lenningen such as oil separators. (Photo: KVT Bielefeld) applied for a patent for hot project and holds a patent for hot gas gas welding in the injection mold and welding in a protective atmosphere has contributed its mold technology to ensure a particle-free and highly know-how to the collaborative project. stable weld.

KVT Bielefeld was responsible for the welding technology in the "joinmelt"

Inglass adds to mould specialisation with Ermo acquisition talian specialist in lighting application moulds/hot runners Inglass has acquired Ermo, a French company that manufactures multicavity high precision moulds. This transaction will lead Inglass to a further diversification process development of its activities from the automotive sector that is prevalent today.

I

Ermo will benefit from the global presence of Inglass that is present in more than 50 countries at international level with local branches and two production plants in Italy and in China (Hangzhou) and the third opening soon in the US, as well as its strong presence in the Asian market.

P L A S T I C S N E W S

Ermo's multi-cavity mould specilisation will allow Inglass to achieve a broader customer portfolio, improving the supply of mould products with a wider variety of solutions.

The sharing of knowledge and organisational arrangements will also allow to offer the best support, regardless of the project complexity and location, say the firms.

Ermo was founded in 1979 by the current Chairman and shareholder Jean Yves Picherau. Today the company operates in Europe with five production plants located in France and Poland.

44

Under the transaction terms, Inglass will acquire the 100 % stock of AURCA, the holding company which owns approximately 83.25% of Ermo, together with a further portion of shares of Ermo equal to 11,7%.

Following the acquisition of the majority, in accordance with current legislation, Inglass will launch a tender offer to acquire the remaining capital of Ermo aimed at the company delisting.

Inglass and Ermo will jointly represent a group of 800 employees and an expected turnover of EUR110 million in 2014.

J U L Y 2014

FEATURES

Infiltrator Systems installs world’s largest low-pressure injection molding machine

By Clare Goldsberry he world's largest low-pressure injection molding machine, designed and constructed by Infiltrator Systems at the company's Winchester, KY, manufacturing facility, took five months to engineer and nine months to build.

T

However, today the machine is producing the Infiltrator IM 1530 Septic Tank product line being molded in a mold designed and built by Franchino Mold and Engineering of Lansing, MI. The mold installed in the press weighs 420,000 lbs. and molds a 15-foot long, 245-lb. polypropylene tank half, which the company claims is the world's largest molded part.

The mold is built with aluminum core and cavity, housed in a steel mold base in what is known as a "hybrid mold" and took more than 10,000 man-hours to

build. The cavity work was done using multiple Tarus 5-axis mills with table sizes of 114" x 120." It also contains the largest hot runner manifold system in operation in the world, explained Todd Phillips, VP of Franchino, which specializes the design engineering and manufacturing of very large molds to produce products that challenge the limits of injection molding. "This is the largest mold we've made to date," Phillips told PlasticsToday.

Franchino previously created what is now the world's second largest mold, Infiltrator System's IM-1060 tank in a mold to produce a part weighing 160 lbs.

Bryan Coppes, VP of engineering at Infiltrator Systems, said, "Rounding out the successful IM-Tank product line was a high priority for Infiltrator.

Franchino is our largest tooling vendor and with their experience with our other large-part molds it made them the right choice for this project."

Coppes told PlasticsToday that the company's success with its 1000-gallon septic tanks led the market to demand tanks in a 1500-gallon size.

Infiltrator is the world's largest septic products company. Molding a tank this large required a 6,000-ton lowpressure injection molding machine.

"We brought in a lot of resources to help us redesign and engineer a press to make it suitable for our needs," Coppes explained. Infiltrator molds its own product and parts requirements in-house, and also has a number of regular injection molding presses to mold its other products.

Each shot is a mirror image of itself with a cutout in the top for tank access. "Other than that the tanks are symmetrically the same," said Coppes. One half has gaskets and the halves are sealed together. The parts handling and finishing stations utilize what Infiltrator believes is the largest six-axis robot in the world.

Franchino has many years (16-18) of experience with building aluminum and hybrid aluminum and steel tooling for very large parts. Phillips said that some of those molds the company built have one to two million shots on them, a testament to the longevity of aluminum tooling in many large-part molding applications.

P L A S T I C S N E W S

45

J U L Y 2014

FEATURES Phillips noted that the biggest challenge was the logistics involved in delivering the mold. After the mold was built, it was disassembled and placed on a fleet of 15 trucks for shipping from Lansing, MI, to Winchester, KY. A team of moldmakers was then sent to Kentucky to re-assemble the mold on Infiltrator's plant floor.

"This was one heck of an undertaking," Phillips said.

Coppes added that the ability to mold septic tanks of this size "opens up a lot of doors" for the company in this marketplace.

He noted that there is more demand for polymer septic tanks as replacements for concrete tanks because of the greater strength of the polymer tanks as well as the ease of installation and the fact that no large equipment is required.

Chemists develop novel catalyst with two functions hemists have made a decisive step towards more costefficient regenerative fuel cells and rechargeable metal-air batteries. They developed a new type of catalyst on the basis of carbon, which can facilitate two opposite reactions: electrolysis of water and combustion of hydrogen with oxygen. A catalyst of this kind might make the storage of wind and solar energy and the manufacture of cost-efficient batteries, for example for electric cars, possible.

C

Chemists at the RuhrUniversität Bochum have made a decisive step towards more costefficient regenerative fuel cells and rechargeable metal-air batteries.

They developed a new type of catalyst on the basis of carbon, which can facilitate two opposite reactions: electrolysis of water and combustion of hydrogen with oxygen. A catalyst of this kind might make the storage of wind and solar energy and the manufacture of cost-efficient batteries, for example for electric cars, possible.

The team published their report in the

P L A S T I C S N E W S

"International Edition" of the journal Angewandte Chemie.

Switching from electrolysis to combustion When energy is supplied, the so-called bi-functional catalysts can split water into hydrogen and oxygenreferred to as electrolysis. They can then store the energy in the chemical bonds of the thus formed hydrogen.

The same catalysts can also have their polarity reversed to become fuel cells; they combust hydrogen with oxygen to water, generating electricity at the same time. So far, researchers have been using noble-metal catalysts for this purpose. However, these catalysts have the disadvantage of being either good for electrolysis or good for combustion, but not for both.

Carbon-based catalysts The novel catalysts from Bochum are made from manganese-oxide or cobalt-oxide nano particles which are embedded in specially modified carbon, into which the researchers 46

have integrated nitrogen atoms in specific positions. The team headed

by Prof Dr Wolfgang Schuhmann and Prof Dr Martin Muhler from the Faculty of Chemistry and Biochemistry analysed the catalysts using a number of spectroscopic and electrochemical methods. They have thus determined which properties are essential for bifunctionality.

"Irresistibly simple" to manufacture In a previous publication in the "Journal of the American Chemical Society," the researchers from Bochum described another approach for manufacturing bi-functional carbon catalysts. To this end, they had "cut open" carbon nanotubes by applying thermal energy and oxygen, thus rendering the catalyst particles embedded therein usable. "This method is irresistibly simple," says Martin Muhler. Compared to noblemetal catalysts, the production would be highly cost-efficient.

J U L Y 2014

Taipei International Plastics & Rubber Industry Show

FEATURING : 䢴Plastics & Rubber Processing Machinery 䢴Injection Molding Machinery 䢴Blow Molding Machinery 䢴Extruders 䢴Printing Machinery

Organizers :

．Auxiliary Equipment ．Molds & Dies ．Parts & Accessories ．Raw Materials ．Semi-finished & Finished Products ．3D printer

Taiwan External Trade Development Council

Taiwan Association of Machinery Industry

No.5, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.) Tel:886-2-2725-5200 Fax:886-2-2725-1959 www.taiwantradeshows.com.tw www.taitra.org.tw plas@taitra.org.tw

No. 110 Hwai Ning St., Taipei, Taiwan, (R.O.C.) Tel:886-2-2349-4666 Fax:886-2-2381-3711 www.tami.org.tw tami@tami.org.tw

P L A S T I C S N E W S

47

SEPT

TWTC NANGANG Exhibition Hall

Co-organizers :

Taiwan Rubber & Elastomer Industries Association Taiwan Plastics Industry Association Petrochemical Industry Association of Taiwan Taiwan Synthetic Resins Manufacturers Association

J U L Y 2014

P L A S T I C S N E W S

48

J U L Y 2014

P L A S T I C S N E W S

49

J U L Y 2014

P L A S T I C S N E W S

50

J U L Y 2014

P L A S T I C S N E W S

51

J U L Y 2014

P L A S T I C S N E W S

52

J U L Y 2014

P L A S T I C S N E W S

53

J U L Y 2014

P L A S T I C S N E W S

54

J U L Y 2014

INTERNATIONAL NEWS

Egyptian PET converters concerned over new government food rations n Egypt, there had been talk regarding the government’s plan to rearrange its food rationing program.

These expectations materialized during past weeks when the government decided to gradually stop the financial support that they are providing to citizens for food supplies. Edible oil was one of the main foods that were given to the people through this subsidy program.

I

The Egyptian government had been assigning each family with a certain amount of oil per person at a lower price than the actual market level. As of last week, this subsidy program was changed. Financial support that was previously measured in kilos or packets is now going to be offered on Egyptian pound equivalent basis. Meanwhile, prices of the subsidies will be lifted to the current market levels and people will be able to choose whatever food subsidy they need on a monthly basis rather than choosing between only oil, rice or sugar.

Following this development, Egyptian players anticipated that demand for oil subsidies will drop by at least 20%. This situation will eventually have an effect on the PET market, too.

Apart from the change in the subsidy program, PET bottle manufacturers will also need to produce bottles in a new shape and volume. This means manufacturers will have to change their usual preforms. A PET bottle manufacturer commented, “This new policy would harm the manufacturers.

Especially the large sized buyers, who P L A S T I C S N E W S

used to consume around 1000 tons of PET per month for producing oil bottles, will be affected the most by these new developments since they used to hold contracts with the government for producing PET bottles for the oil subsidy program.”

A trader operating in Cairo said, “The changes in the food subsidies in Egypt is to affect the end product demand for PET since the government now aims to change the shape of the oil bottles, too.

This requires manufacturers to change

the mould they are using and this might take at least three months.” Many of the traders are of the view that “The changes in the shape of the bottles will affect both private and public sectors."

Buyers may reduce their oil consumption as a result of having more choices and that would affect the PET converters’ purchases. Apart from this, changing the mould’s shape in line with the government’s new requirements may take two to three months.

Chinese petrochemical imports under investigation for possible fraud hinese petrochemical imports have become the latest commodity financing tool to come under investigation for possible fraud, highlighting the risks from the widespread use of raw materials as collateral to raise loans and skirt credit restrictions.

C

According to reports from Reuters Commodity financing deals in China, which Goldman Sachs has estimated to be worth as much as US$160 billion, have come under close scrutiny after an alleged metal financing fraud at Qingdao Port, a huge trading hub in eastern China.

Police in northern China are investigating another suspected

55

fraud at Tianjin Port near Beijing, involving "mixed aromatics", a refinery product commonly used for blending petrol.

The use of commodities, from traditional copper sheets to perishables such as soybeans and rubber, to raise finance has been increasingly popular in recent years as Chinese policymakers have sought to tamp down rapid credit growth.

That has added to the build-up of credit in the so-called shadow banking system - trillions of dollars in non-bank lending that is seen by analysts as one of the key risks to China's economy - and also increased the potential for fraud.

J U L Y 2014

INTERNATIONAL NEWS

Malaysia and Egypt open anti-dumping investigations on PET alaysian and Egyptian governments will begin antidumping investigations into various PET origins in the near future, while Turkey will hold a review of investigation of its safeguard measures on PET imports, which are currently set to expire on July 11,according to report from ChemOrbis. On June 17, Malaysia’s International Trade and Industry Ministry (MITI) reportedly initiated a preliminary anti-dumping investigation into PET imports from China, Indonesia and South Korea, according to media sources.

M

The investigation was launched after a domestic producer petitioned the government, claiming that PET imports from those countries were available at prices below the prices prevailing in their domestic markets. As part of the investigation, MITI was reportedly ready to provide questionnaires upon request to interested parties including foreign producers, importers, exporters and associations until the end of June.

The Ministry is expected to announce a preliminary decision 120 days after the start of the investigation.

Meanwhile, Egypt’s Minister of Industry and Foreign Trade Mounir Fakhry Abd El Nour has reportedly agreed to open an investigation into PET imports from China, Oman, India, Malaysia and Pakistan.

According to a press release, the Head of the Anti-dumping, Subsidy & Safeguard Department, Ibrahim el Siginy, confirmed that they received complaints supported by documents from the national industry purporting to show that PET imports from India, China, Malaysia, Pakistan, Oman,

P L A S T I C S N E W S

Thailand and the UAE enter the country at lower prices and harm industry within Egypt. However, Thailand and the UAE were exempted from the investigations as both countries have a market share of less than 4% in the Egyptian PET market.

In addition, the Turkish government will implement a review investigation on the country’s existing safeguard measures for PET imports, which are currently set to expire on July 11, according to a notification published in the Official Gazette on July 8. Domestic producers Artenius Turkpet, Kokan PET and Meltem Kimya reportedly requested that the Ministry of Economy conduct a review investigation of the safeguard measures in order to protect the domestic industry.

Turkey currently assesses an additional financial obligation of 7% on imported PET. Turkey’s total PET imports have declined over the past year owing to the start up of some new domestic capacities. According to Turkish Customs, PET imports through the first five months of 2014 stand at 46,250 tons, down 41.8% from 2013.

Pakistan was the largest PET exporter to Turkey through the first five months of year with 20,539 tons of exports.

These anti-dumping investigations have provoked some concern among PET producers in Asia. A source at a Chinese producer said, “We were concerned to hear that Egypt was starting an anti-dumping investigation, but we feel that our business will not be badly affected as Egypt is not one of our major export destinations.”

A source at a second Chinese producer added, “Demand is not all 56

that encouraging these days and we are concerned that anti-dumping investigations in Egypt and Malaysia will further dampen buying interest from overseas customers.”

According to ChemOrbis, elsewhere, a source from a Malaysian producer said that they were surprised that Malayisan PET was included in Egypt’s anti-dumping investigation. A source at another Malaysian producer said, “We believe that Chinese sellers have been dumping into Malaysia recently and were satisfied to see Chinese sellers raise their prices to levels closer to par with other Asian producers last month. We are waiting to see the results of the Ministry’s investigation.

EU court cuts Sasol’s cartel fine €318 million (R4.6 billion) antitrust fine levied on Sasol has been cut by more than half after judges said EU regulators had wrongly blamed the petrochemicals firm for the behaviour of a unit. The fine for fixing the price of paraffin wax was cut to €150 mln by the EU’s General Court in Luxembourg.

The court said officials were wrong to hold Sasol and its German unit responsible for price-fixing by Hamburg-based wax business Schumann. Sasol bought a stake in the firm in 1995 and acquired the rest of the company in 2002.

A

J U L Y 2014

INTERNATIONAL NEWS

BPF calls for coordinated action over landfill ban hilip Law, the new directorgeneral of the British Plastics Federation (BPF), has warned that unless industry and governemtn start planning now it will be difficult to successfully end the landfilling of recyclable waste by the 2025 deadline.

P

“Although 2025 seems a distant prospect we need a roadmap agreed by all parties in the chain, critically including government, to jack up recycling rates especially if the calculation of what is recycled is

going to change from the amount of waste going in to what comes out,” said Law. Otherwise and counterproductively, there will be a risk of increased export of waste, an unwelcome prospect for proponents of a pure circular economy.” He said that the BPF has long lobbied for the diversion of plastics from landfill “and we’ve consistently called for increases in the landfill tax. In any event landfill in the UK is being rapidly exhausted.”

Case of infringrement of INVISTA’s PTA Technology in China VISTA has resolved a lawsuit against a Chinese engineer for misappropriation and infringement of trade secrets relating to a portion of INVISTA’s purified terephthalic acid (PTA) technology. The intellectual property lawsuit initiated in Beijing Intermediate People’s Court has been resolved.

Intermediate People’s Court against the engineering design company’s nowformer employee. The engineering design company cooperated with INVISTA in the case. INVISTA obtained a successful resolution shortly after filing the lawsuit, with the defendant agreeing to a number of requirements, including:

INVISTA licenses its proprietary PTA technology to Chinese and other companies, who use it to produce polyester-related products. During one of INVISTA’s technology projects for a Chinese licensee, an employee of a Chinese engineering design company misappropriated some of INVISTA’s proprietary information. INVISTA took swift action to rectify the issue, filing a lawsuit through the Beijing

Expressly acknowledging infringement of INVISTA’s trade secrets, Agreeing not to work in any job or activity in which he could use or disclose his knowledge of INVISTA’s PTA technology, Immediately and permanently ceasing any use or d i s c l o s u r e o f I N V I S TA’ s P TA technology, Returning INVISTA’s trade secret materials and disclosing all sources for the materials.

N

P L A S T I C S N E W S

57

Total to introduce bio-based resins for US rotomoulding rench integrated oil and gas giant Total is entering the North American rotational moulding market for polyethylene, and is introducing bio-polymers for the sector, a company official said at a Society of Plastics Engineers conference.Total Petrochemicals & Refining USA Inc. began making rotomoulding PE in pellet and powder form in December, produced in its factory in Bayport, Texas. Total supplies two grades of the metallocene PE for rotational moulding.

F

Total SA has produced the rotomoulding resin in Europe for several years, both in PE and polypropylene, but this marks the introduction in North America, said Eric Maziers, rotomoulding technologies technical manager for Total Petrochemicals.

Identifying any individual or entity to whom he disclosed INVISTA’s trade secrets and any individual or entity who he authorized to use or distribute INVISTA's trade secrets.

Notifying all parties that had access to INVISTA's trade secret materials that the materials contain INVISTA’s confidential and proprietary information, and instructing them to cease the use, disclosure or dissemination of the materials.

J U L Y 2014

INTERNATIONAL NEWS

CEWEP supports EC's ban on landfilling of Recycle waste he Confederation of European Wa s t e - t o - E n e r g y P l a n t s (CEWEP) has come out in support of the European Commission’s plane to phase out landfilling of recyclable and recoverable waste.

T

“Waste-to-energy is complementary to quality recycling, helping to achieve a clean circular economy,” CEWEP said in a statement. “If waste is too polluted for quality recycling, it should be used to generate local, affordable and secure energy in waste-to-energy plants.”

CEWEP has endorsed the Commission’s proposal to phase

out landfilling of recyclable waste.

However, it would have preferred a more ambitious deadline of 2020 rather than 2025.

“This delay is a lost opportunity for improving resource use, considering that more than 80 million tonnes of municipal waste is still landfilled in the EU 28 each year,” it said. Greater transparency is also necessary in order to avoid the option that the EU’s recycling targets are achieved simply by shipping the waste to countries with poorer environmental and social standards than those in Europe, added CEWEP.

US Commerce Dept widens export definition for shale oil he Commerce Department has widened its definition of what’s traditionally been considered a refined product eligible for shipping to customers abroad. That means more of the oil being pumped from U.S. shale formations may be eligible for export after being run through small-scale processing units.

T

The Commerce Department issued its ruling after Pioneer Natural Resources Co. petitioned for approval to export a type of ultra-light oil that had been stripped of lighter gases to make it less volatile for transport a minimal level of processing known as

P L A S T I C S N E W S

stabilization. The ultra-light oil, known as condensate, has been abundant in shale formations during the drilling boom, leading to oversupplies on the Gulf Coast.

Any oil that has been processed through a distillation tower a preliminary form of refining is no longer defined as crude oil, and therefore is eligible for export, department spokesman Jim Hock said.

Pioneer uses a distillation unit to stabilize oil it produces in the Eagle Ford Shale of South Texas, most of which is condensate.

58

Brazil's antitrust regulator recommended to block purchase of Solvay Indupa high committee within Brazil's antitrust regulator recommended blocking the purchase of Argentina's chemical firm Solvay Indupa by petrochemical giant Braskem.

In a non-binding decision, the General Superintendence of Brazil's regulator said the deal is potentially anti-competitive.

A

The ruling is not final and will be reviewed by Cade's Tribunal.

Solvay Indupa, which makes vinyl and caustic soda in Argentina and Brazil, is a subsidiary of Belgian chemical group Solvay.

The deal announced in December 2013 would mark Braskem's first move into Argentina. Braskem, Latin America's largest petrochemical company, said it disagreed with the recommendation, noting it remains confident in the approval of the deal.

"Braskem is a price-taker, not a price-maker. With the purchase of Solvay Indupa, Braskem's share in the PVC and caustic soda international markets will be of 2 and 1 percent, respectively," the company said in a statement.

J U L Y 2014

BUSINESS NEWS

Indian petrochem sector to grow high ndia Petrochemicals Report anticipates stronger market growth from H2 -14, coinciding with the completion of many overdue projects.

The main challenge facing India's petrochemicals business environment centres around its institutional weaknesses.

I

H i g h b a r r i e r s t o e n t r y, t h e pervasiveness of corruption, excessive red tape and the glacial pace of project execution are all major obstacles to petrochemicals projects over the medium term. Unless we see a major improvement in the country's reform outlook, particularly in relation to developing petrochemicals zones and opening up to foreign investment, multinationals could increasingly become put off by a challenging operating environment in spite of attractive growth prospects. The

new government has a comfortable parliamentary majority and BMI expects a period of regulatory change.

While Prime Minister Narendra Modi has overseen strong growth in petrochemicals capacity in Gujarat while he was the state's chief minister, his reform efforts will meet with stiff resistance from state governments controlled by opposition parties. This is likely to affect land acquisition and environmental approvals where statelevel governments can play a crucial role. Moreover, governments at the centre also tend to focus infrastructural spending on the states they control. As such, states like Tamil Nadu, Orissa, West Bengal, Assam and Karnataka, where petrochemicals zones are planned, may lose out to states where the ruling BJP seeks to take or maintain control

Reliance Industries Ltd to strengthen plastics business he CMD of Reliance Industries Ltd (RIL) informed the shareholders at the company's 40th AGM that RIL plans to invest Rs 1.8 lakh crore (US$30 billion) across businesses- petrochemicals, refining, retail and telecom - in this current three years’ investment cycle.

T

Stressing that petrochemicals business will benefit from the highest allocation of capital among its three energy businesses, Ambani said that will strengthen its plastics business P L A S T I C S N E W S

by building a new integrated cracker capacity, which would rank among the most competitive being built anywhere in the world this decade. Through feedstock integration and operating efficiencies, Reliance Industries aims to compete effectively with new capacities in both North America and the Middle East.

“We will also add to the aromatics chain by upgrading refinery light-ends into new paraxylene facility and alongside commission downstream PTA and 59

BASF to sell 50% stake in Styrolution to Ineos ASF is selling its 50% share in Styrolution to Ineos, its joint venture partner in the styrenics business. The €1.1bn (£0.9bn) deal is subject to the approval of shareholders and regulators.

B

Jim Ratcliffe, chairman of Ineos Capital said, "Styrolution has fulfilled its promise as a globally competitive business that competes effectively with largescale producers from Asia and the Middle East. We are pleased to bring Styrolution fully into the Ineos family. After the purchase, Styrolution will be run separately as a standalone company within Ineos, and continue to operate as it does today.”

Styrolution was founded in October 2011 as a 50-50 joint venture between BASF and Ineos. It has manufacturing sites in Germany, Belgium, France, Switzerland, Korea, India, Thailand, the US, Canada and Mexico. polyester capacity. We are also building a new business in rubbers capitalising on feedstock integration and rapidly growing domestic markets,” Ambani added. The investment in petrochemical business will be targeted at adding value to the refinery streams and feedstock and will be focused on the growth potential of the Indian market.

J U L Y 2014

BUSINESS NEWS

BioAmber signs 210,000 tpa contract with Vinmar International ioAmber Inc., an industrial biotechnology company producing sustainable chemicals, today announced it has signed a 210,000 ton per year take-or-pay contract for bio-based succinic acid ("SA") with Vinmar International.

B

Under the terms of the 15-year master off-take agreement, Vinmar has committed to purchase and BioAmber Sarnia, a joint venture with Mitsui & Co has committed to sell 10,000 tons of succinic acid per year from the 30,000 ton per year capacity plant that is currently under construction in Sarnia, Canada. BioAmber and Vinmar also broadened the scope of their previously announced 100,000 ton per year 1,4 butanediol (BDO) plant, which the parties currently plan to start up in late 2017.

Under that agreement, following the financing, construction and commissioning of the BDO plant, Vinmar has committed to purchase and BioAmber has committed to sell 100% of the BDO produced for 15 years. As part of the new succinic acid master off-take agreement, this second plant will be expanded to an annual capacity of 100,000 tons of bio-BDO and 70,000 tons of bio-succinic acid.

Vinmar plans to make a 10% or greater equity investment in the expanded plant and has committed to off-take and BioAmber has committed to sell a minimum of 50,000 tons per year of bio-succinic acid for 15 years following the plant's start-up date. Vinmar also has the option to secure additional bio-succinic

P L A S T I C S N E W S

acid tonnage under the take-orpay contract if BioAmber has not committed the remaining volume at the time the plant's financing is secured.

Vinmar also committed to off-take and BioAmber committed to sell a minimum of 150,000 tons per year from a new, third plant following its financing, construction and commissioning.

The plant would be dedicated to bio-succinic acid production and would have an annual capacity of 200,000 tons per year. Vinmar plans to invest at least 10% of the equity in this third plant, which BioAmber expects to start up in late 2020, based on the projected development of the succinic acid market.

The Vinmar take-or-pay contract, together with the take-or-pay agreement signed in April 2014 with PTTMCC Biochem (a joint venture between Mitsubishi Chemical and PTT of Thailand), guarantees the sale of 50% of Sarnia plant capacity during the first three years of operation and 33% of plant capacity for the following 12 years.

In addition, BioAmber has signed 19 supply and distribution agreements and seven memorandum of understanding to date, and the cumulative volume of these contracts exceeds the available capacity for sale in Sarnia.

BioAmber has been selling biobased succinic acid for over four years and to date 38 customers have qualified the company as a succinic acid supplier and purchased product from the existing production facility in France. "This multi-plant deal is a 60

quantum leap forward for our succinic acid business and sets a clear path for rapid growth," said Jean-Francois Huc, BioAmber's Chief Executive Officer.

"Securing off-take for three plants will help us to obtain project financing and accelerate the deployment of our platform.

Our partnership with Vinmar gives us the capability to expand our production capacity, gain economies of scale and guarantees the sale of a significant portion of our output," he added.

Total SA is discussing divestiture of 22.4% ntegrated energy firm Total SA is discussing the divestiture of its 22.4% interest in China-based West Pacific Petrochemical refinery with Chinese energy giant PetroChina Co Ltd., as per Reuters. The petrochemical plant, which can process and refine crude oil at a rate of 200,000 bpd, is being operated and managed

by PetroChina.

I

The refinery commenced operations in 1996. At that time, it was the first and only refinery in China that was allowed to export its product. However, it incurred considerable losses after the Chinese government started levying heavy export taxes on its products.

J U L Y 2014

BUSINESS NEWS

KraussMaffei forms partnership with IPS for service in Middle East, Africa raussMaffei AG has announced that Dubai-based Integrated Packaging Systems (IPS) has become the exclusive partner for the KraussMaffei brand in key markets across the Middle East and Africa. KraussMaffei says that by partnering with IPS it hopes to develop a combined strategy to strengthen sales and after-sales services in the region.

of the injection molding machinery segment in the KraussMaffei Group.

Golz has recently been appointed to the IPS board of directors to create synergy between the two companies.

KraussMaffei states that the new partnership extends over large parts of the Middle East, including the GCC (Gulf Cooperation Council) region, and key areas of Africa, including North, East and West African markets.

“IPS has been working very successfully for years as a sales and service partner for Netstal. I am convinced that we will strengthen and further develop the sales and service activities also of the KraussMaffei brand in the short term, based on this partnership and through the use of the existing infrastructure of IPS," said Hans Ulrich Golz, president

“An important target of this partnership will be to strengthen especially the service and after-sales business, by developing a network of efficient local service engineers for the KraussMaffei and Netstal brands.

I am convinced that our KraussMaffei customers will benefit from this partnership as our Netstal customers did in the past,” Golz stated. The

K

BPCL plans technology partnership for manufacturing propylene products harat Petroleum Corp. Ltd (BPCL) is talking to companies in Japan and China for technology to manufacture propylene-based products at its proposed petrochemicals complex in Kochi in.

B

According to reports discussions were underway with one company each in Japan and China, with a final decision likely in a couple of months.

Propylene-based products such as

P L A S T I C S N E W S

acrylic acid and acrylates are used in plastics, paints, coatings, adhesives, inks and textiles.

The company’s attempt to enter this niche segment, which is fully dependent on imports, depends on its ability to secure technology for the same. This is BPCL’s second attempt in tying up technology for the industrial raw material, after talks with South Korea’s LG Chem Ltd failed earlier.

61

KraussMaffei Group generated sales of $1.4 billion in 2013. Switzerlandbased machinery maker Netstal has been a member of the KraussMaffei Group since 1992.

Saudi's Petrochem completes 1.2 bln riyal debut sukuk issue audi Arabia's National Petrochemical Co (Petrochem) has completed a 1.2 billion riyal ($319.9 million) debut sukuk issue. The Islamic bond, which has a five year lifespan, was priced at 170 basis points over the six-month Saudi interbank offered rate (Saibor).

S

Deutsche Bank's Saudi Arabian arm and the investment banking arm of Riyad Bank were the lead arrangers for the issue, according to the statement.

A number of Saudi companies have been tapping the local sukuk market in recent months, many for the first time, as they look to take advantage of abundant liquidity among Saudi investors to secure cheap borrowing rates and diversify away from traditional funding sources. ($1 = 3.7508 Saudi Riyals)

J U L Y 2014

BUSINESS NEWS

Chevron Phillips Chem to expand Alpha Nan Ya Plastics Olefins capacity at Cedar Bayou Plant investments hevron Phillips Chemical Company LP (Chevron Phillips Chemical) has received Board of Directors approval and obtained the necessary environmental permit from the Texas Commission on Environmental Quality (TCEQ) to expand an additional 100,000 metric tea of capacity. Construction completion is anticipated in July, 2015. Houstonbased S&B Engineers and Constructors Ltd. will execute the engineering, procurement and construction.

C

The project will utilize Chevron Phillips Chemical’s proprietary NAO technology. “This investment decision reflects Chevron Phillips Chemical’s strategy to leverage North American shale gas development by continuing to grow our U.S. based Olefins and Polyolefins footprint,” said Mark Lashier, Executive Vice President of Olefins and Polyolefins. NAOs and its derivatives are used extensively as polyethylene co-monomers, synthetic motor oils,

lubricants, automotive additives and in a wide range of specialty applications.

“We are committed to being a consistent and reliable supplier of high quality alpha olefins,” said Mitch Eichelberger, General Manager of Normal Alpha Olefins and Polyalphaolefins. “This expansion exemplifies our strong commitment to the alpha olefins business, and meeting the growing demand of our customers.”

Chevron Phillips Chemical has recently announced the construction of a world-scale ethylene cracker in Baytown, Texas, two world-scale polyethylene reactors in Old Ocean, Texas and the start-up of the world’s largest 1-hexene facility in Baytown. The 1-hexene plant, capable of producing up to 250,000 metric tons, is co-located with this expansion project at the Cedar Bayou plant. The two plants will enjoy great synergy as they both share the same infrastructure and workforce talent.

Mitsubishi wins order to highperformance polyethylene itsubishi Heavy Industries Ltd. has received an order to build production lines for high-performance polyethylene for U.S. oil giant Exxon Mobil Corp. The value of the contract was not released. The deal is a sign of growing opportunities for Japanese companies to win orders amid increased investments in the petrochemical

M

P L A S T I C S N E W S

business field following an increase in shale gas production. According to Exxon Mobil, the two production lines will be installed at a polyethylene plant that will be built in line with the construction of an Exxon Mobil ethylene plant in Texas. The ethylene plant will have an annual output capacity of 1.5 million tons.

62

drive earnings of Formosa Plastics Group he 4 units of Formosa Plastic Group - Nan Ya, Formosa Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp., posted NT$54.6 billion (US$1.83 bln) in net profit for the past six month. This shows a rise of over 30% from a year earlier. Nan Ya Plastics Corp.'s investments in the memory chip industry helped drive earnings growth at four listed subsidiaries of FPG over the past six months, as per CNA. Over the six-month period, Nan Ya recorded NT$19.35 bln in net profit, a huge increase of 79.1% from a year earlier. Nan Ya said that as the global dynamic random access memory (DRAM) industry benefited from a tight supply, its investments in Nanya Technology Corp., which has turned a profit, have paid off. In the first half of the year, Formosa Plastics posted NT$10.93 bln in net profit, up 27.1% from a year earlier, while Formosa Chemicals & Fibre's net profit fell 24.8% from a year earlier to NT$9.16 bln. During the same period, Formosa Petrochemical registered NT$15.19 billion in net profit, up 49.3% from a year earlier.

T

J U L Y 2014

PRODUCT NEWS

Clariant introduces CESA-absorb advanced Hydrocerol nucleating solutions lariant, a world leader in specialty chemicals, unites product improvements with sustainability in the latest masterbatch solutions in its innovation pipeline.

New CESA® absorb for active oxygen barriers in PET packaging and advanced Hydrocerol® nucleating agents for new-generation construction insulation, demonstrate Clariant’s commitment to sustainable innovation addressing market trends and customers’ needs.

C

CESA-absorb is a novel masterbatch with an integrated active oxygen barrier that optimally protects sensitive packaged goods from oxygen-induced degradation.

It provides superior and long-term oxygen barrier performance to PET packaging such as bottles and films without impacting on transparency or the recyclability of PET. Based on proprietary and patent protected Clariant chemistries, the oxygen scavenging units consist of a catalyst and an oxidizable substrate, which are uniformly dispersed in the polymeric matrix of the packaging wall.

Clariant has also developed Hydrocerol nucleating solutions for insulation materials that will address the gap in the construction market for effective, energy-reduction insulation materials within thinner, space-saving boards. Clariant’s Hydrocerol-based masterbatches enable foaming of lightweight polystyrene at significantly smaller size than the currently known

P L A S T I C S N E W S

foams. The newly designed formulation enables, in the presence of direct gassing, a cell size reduction from 200 to 50 μm. In addition, the optimized foam structure has excellent insulation properties.

As a result, manufacturers will be able to produce strong and light insulation boards with improved

insulation that also enable maximum living space, and contribute to saving material use and production costs.

They also support the fulfilment of energy saving regulations. CESAabsorb and the advanced Hydrocerol nucleating solutions are scheduled for commercial launch at the end of 2014/ beginning 2015, respectively.

Kiefel’s SPEEDFORMER KMD 90. iefel has introduced its SPEEDFORMER KMD 90A a new pressure forming machine that opens up a new dimension for the production of plastic packaging items ensuring a higher productivity due to faster cycle times and bigger forming surfaces.

K

The SPEEDFORMER KMD 90 processes PS, OPS, PP, PE, PVC, PET, PLA or CPET, combines high performance with high quality and guarantees an excellent ROI. The elaborate design presents some special features: Black ceramic heaters in the heating station ensure a maximum of efficiency.

Due to the film edge heater, even brittle material like PS and PLA and thick materials can be processed excellently. Plastic particles are avoided when the film is pierced.

Thus, the highest level of product hygiene and a longer service life of

63

the needle chains are guaranteed.

The new SPEEDFORMER owes its exact cutting position to the accurate and reproducible width adjustment of the chain rails. The high cutting force of 480 kN is also a remarkable feature.

Centric servomotor-actuated knee lever drives, which stand out due to their high stability and smoothness, and independent pre-stretching plugs on the upper and lower table assure flexibility and a high product-quality.

Another special feature is the fast and ergonomic operation assured by the separate tool change station.

The tool sets are changed in block, heavy tools being supported by big ball bearings. A Down Stacker places the finished products on a conveyor belt below the film level.

The unloading height of 1 m is ergonomically convenient.

J U L Y 2014

PRODUCT NEWS

Actega introduces medical-grade TPE free of animalderived components ctega (Bremen, Germany) has announced the introduction of a medical-grade thermoplastic elastomer (TPE) that is entirely free of animal-derived components (ADCs).

A

The ADC-free formula for the ProvaMed TPE family of materials is described by the company as a practical solution for customers in the pharmaceutical and medical sectors that must account for the origin of additives and other material components.

The material also satisfies kosher and vegan-free requirements.

Additives used in the manufacture

of plastics may include stearic acid salts, for example, which are extracted from beef tallow to impart lubricity in polyethylene during extrusion or injection molding or to clean and neutralize acids formed during the polymerization process, says Actega.

To effectively remove infectious agents or to render them harmless, ADCs are heated to 200°C or more for a minimum of 20 minutes. To avoid unnecessary risks, it would be simpler to use an ADC-free material formula to start with, according to the company.

ADC-free ProvaMed is suitable for extruding tubing and a range of other applications in which strength, flexibility, transparency, and media resistance are desirable.

The TPEs are formulated to prevent interactions between the tubing material and pharmaceutical or endogenous substances. The material's transparency permits optical flow control, and radiopaque strips can be integrated in the tubing system to track its position within the body.

Furthermore, the material won't buckle and it is coated with an antimicrobial agent.

PlastiComp introduces Corrosion-resistant composites ong fiber thermoplastic (LFT) supplier PlastiComp, Inc. (Winona, MN) has introduced a line of basalt fiber-reinforced composites.

These new LF products reportedly offer a significant increase in performance over short basalt fiber filled materials and are available in multiple resins matrices with 30-60% by weight fiber loadings.

L

During development of these new basalt LFTs, we saw across the board increases in mechanical properties that were as much as 40% higher than chopped fiber grades," said Eric Wollan, business development manager at PlastiComp. "That is a huge boost which makes PlastiComp's P L A S T I C S N E W S

long fiber variants a serious contender for those considering basalt. We have had interest from the automotive and construction industries for basalt fiber materials because of its ability to resist corrosion." Derived from volcanic rock, the beneficial characteristics of basalt fiber are said to include excellent corrosion resistance, high abrasion resistance, and inherent fire resistance.

Basalt fiber is known for retaining its performance at cold temperatures and for not being degraded via UV or electromagnetic radiation. It finds uses in marine environments, concrete contact, and underground applications because of its high corrosion 64

resistance. PlastiComp focuses on developing and providing long fiber reinforced thermoplastic composite technologies to partners worldwide.

These include ready-to-process reinforced LFT pelletized compounds, along with process development and manufacturing equipment licensing for LFT pultrusion, in-line D-LFT (direct-LFT) Pushtrusion, and in-line D-GMT (direct-glass mat thermoplastic) technologies.

PlastiComp's injection moldable Complēt LFT composite compounds are available as standard and custom formulations in resins from polypropylene (PP) through to PEEK.

J U L Y 2014

PRODUCT NEWS

Sidel designs plastic beer bottle that looks like glass witzerland based Sidel Group has launched what it calls the world’s pasteurizeable lightweight PET beer bottle with a standard “champagne” base — not a petaloidshaped base with feet. The bottle also accepts a crown closure, mirroring the closures found on glass bottles.

S

The new bottle weighs just 28 grams, 86 percent lighter than glass beer bottles. When packaging beer it is critical to prevent oxygen from entering and carbon dioxide from escaping.

The Sidel bottle can use singlelayer material blends and Sidel’s Actis gas-barrier technology. That gives a six-month shelf life, the company said. Sidel officials also are fighting back against what they say are

misperceptions about beer in plastic, like the common belief that beer gets warmer quicker. Sidel’s studies show PET keeps beer just as cold, for the same amount of time, as glass.

The base is a key. “For many consumers, a petaloid base is associated with other product categories such as carbonated soft drinks or sparkling water, and therefore when it appears on a beer bottle it can negatively affect the brand perception,” said Christophe Bunel, head of packaging care at Sidel.

“But increasingly, consumers are becoming more aware of the benefits of PET, because they experience it as the preferred packaging material of choice in other food and beverage areas in

their life. So to help producers and consumers alike make the transition we wanted a bottle that looks like glass, but has all the benefits of PET.”

SIKORA offers innovative lump detectors IKORA has introduced its lump detectors. As we know for continuous quality control in hose and tube extrusion lines, lump detectors are just as essential as diameter measuring devices.

S

The 2- and 3-axis lump detectors LUMP 2000 XY and LUMP 2000 T from SIKORA detect the smallest lumps and neckdowns on the product surface fast, precisely and with high reliability.

By the use of a powerful signal processor, the height, depth and length of the fault location are evaluated.

The combination of the double sensor technology (differential measuring P L A S T I C S N E W S

principle) with infrared light sources assures a reliable fault detection even under difficult conditions such as dirt or extreme vibration.

The lump detector is sturdy and can due to its small dimensions easily be integrated in every extrusion line.

The setting of tolerances and the numeric display of lumps and neckdowns is realized with the 65

REMOTE 2000 or a processor system of the ECOCONTROL series.

Alternatively, the LUMP 2000 devices can directly be integrated in the line control via an universal interface module.

J U L Y 2014

PRODUCT NEWS

Addivant™Next Generation Weston® 705 Liquid Phosphite Antioxidant Earnsfdaapproval for Food Contact Applications ew Delhi (June 5, 2014) – Addivant™, a global leader in polymer additive technologies ,today announced that WESTON® 705 liquid antioxidant, the next generation of nonylphenol-free phosphite technology, has received approval from the U.S. Food and Drug Administration (FDA) for food contact applications. Extensively researched and supported with comprehensive toxicology testing, WESTON® 705 antioxidant provides superior safety as well as enhanced polymer performance and higher processing productivity vs. conventional solid phosphites. The product delivers major benefits across the entire value chain, from resin producers and converters to retailers and consumers.

N

Further, Addivant’s WESTON® 705 antioxidant is produced in multiple facilities worldwide ensuring security of supply for customers around the globe.

“We developed our innovative WESTON® 705 liquid antioxidant with the future in mind,” said Peter Smith, President and CEO, Addivant. “Not only does this technology overcome the drawbacks of conventional solid phosphites, it also enables our customers to capitalize on their latent technology to further enhance the polymer architecture allowing them to meet the needs of the very latest in processing systems, end markets and applications. Our proactive investment in gaining comprehensive global food-contact approvals for

P L A S T I C S N E W S

WESTON® 705 antioxidant, together with our robust supply chain of regional manufacturing facilities helps Addivant support its mission of Winning with our Customers.”

WESTON® 705 antioxidant is a highly effective stabilizer that protects polymers from degradation during use.

It represents the newest generation of liquid phosphate technology, the preferred secondary antioxidant for linear low density polyethylene (LLDPE) and high density polyethylene (HDPE) polymers. This product looks, handles and functions like WESTON® TNPP phosphite but is nonylphenol free and higher in phosphorous, so lower loadings (up to 18 percent lower) provide equivalent performance.

With FDA approval for food contact applications, WESTON® 705 antioxidant now offers greater versatility, enabling its use in a wide range of food packaging, from deli wrap to snack food bags and from carton liners to boil-in bags, as well as non-food packaging and nonpackaging applications. WESTON® 705 antioxidant – a clear, colorless, odorless liquid –also supports major conversion trends such as multilayer films and coated, laminated films.

Top Benefits for PE Producers, Converters, Retailers and Consumers Addivant’s WESTON® 705 antioxidant delivers important improvements in safety, performance

66

and productivity compared to existing phosphite antioxidants,benefiting each link in the value chain.

•

Superior Safety:With comprehensive global food approvals and nonylphenol-free formulation, WESTON® 705 antioxidant helps boost consumer confidence about the safety and sustainability of food packaging.

•

Enhanced Performance: Advancements in WESTON® 705 antioxidant’s stability performance pave the way for new polymers that deliver improved color and surface aesthetics and better film quality.

This technology meets the demands of new engineered plastics solutions where polymers must withstand rigorous processing conditions such as higher temperatures, greater shear and increased recycling. Its superior stabilization performance delivers a 10-fold improvement in color protection vs. standard antioxidants, and also enables thinner film with the same strength.

•

Higher Productivity:As a liquid, W E S TO N ® 7 0 5 a n t i o x i d a n t provides better phosphite solubility than solid products, helping to reduce downtime for die cleaning and enabling processors to run production lines faster without concerns about polymer degradation. Low gel formation (one-fourth the gels of standard antioxidants) also contributes to improved productivity.

J U L Y 2014

PRODUCT NEWS About Addivant™ Addivant™ is an innovator in the field of polymer additives, developing customized solutions that provide customers enhanced application performance, safe handling, and reduction in cost of use. The company is recognized industry-wide for its extensive portfolio of specialty additives including antioxidants, light stabilizers, rubber additives, polymer modifiers, metal deactivators, polymerization inhibitors, and intermediates. Addivant is an international company, with 11 plants on five continents, as well as research, manufacturing and sales facilities around the globe. Addivant maintains its global headquarters in Connecticut, USA, with regional headquarters in: Al Jubaïl, Saudi Arabia; Basel, Switzerland, and Shanghai, China. Addivant is an

independent portfolio company of SK Capital. Visit www.addivant.com for more information.

About SK Capital SK Capital is a private investment firm focused on the specialty materials, chemicals and healthcare sectors.

The firm has deep experience in and knowledge of Addivant’s products and end markets gained through previous and current portfolio companies in the polymers, plastics and associated additives sectors. Located in New York, NY and Boca Raton, FL, the firm is currently investing from SK Capital Partners III, L.P. a $500 million fund of committed capital.

Its portfolio companies generate revenues of over $6.0 billion annually and employ more than 5,000 people.

Visit www.skcapitalpartners.com for more information.

Addivant™and WESTON® are trademarks of Addivant.

Addivant’s WESTON® 705 Antioxidant for Use in Polyethylene Food Packaging Applications

Polytech promoting Co-extrusion WPC Foam Board Extrusion Line ndia is one of the fastest economies of the world. With its continuous growth, construction sector is also witnessing rapid growth, with Interiors, Furniture’s, partitions, shuttering, etc. made from wood & wood based materials.

I

However, to reduce logging to preserve the forests, artificial board such as plywood, a particle board etc. seems to resolve the problems, but the emission of benzene and formaldehyde had limited their development.

Now, with the concern of depleting

P L A S T I C S N E W S

forest & need for environmental protection, concept of Wood Plastic Composites are rapidly accepted and are been increasingly used in such applications.

a perfect substitution of timber but will not warp, swell or decay in wet area.

PVC foam board available with various names like WPC foam board, WPC sheets, Shuttering board, etc. is now the proven alternative to wood and is the new solution in this century.

The surface hardness of PVC Foam Board is excellent when compared to wood and its compressive strength is greater to traditional timber. Also depending on the pigment used, PVC Foam Board comes with different colors and patterns only limited by the imagination of the designer.

PVC Foam Board possesses remarkable characteristics of lightweight; flame retarded, strong water repellant and chemical resistance. It is

PVC Foam Board is light weight but strong. The board contains no formaldehyde and is a green product which can be recycled. The board

67

J U L Y 2014

PRODUCT NEWS is easy to work with by traditional wood working machine such as drilling, nailing, screwing, planning and grinding and can be decorated by painting, printing and decorative PVC film.

Importantly in comparison to conventional plywood and MDF boards, WPC board doesn’t need a compulsory lamination for end user applications. These boards can be directly used with beautiful and technical hardened surface properties compared to even high pressure laminate applied surfaces.

Hangzhou Polytech Plastic Machinery Co. Ltd., a national high tech enterprise in China, expertise in manufacturing of WPC Foam board extrusion line, is supporting high technology demands for Indian markets.

With successful installations worldwide and in India, Polytech is enjoying well known Credit from emerging Indian players and it continues to deliver high quality solution at competitive pricing.

Formulations playing a major role in manufacturing WPC boards,

Polytech envisages a strong support to the end customers to meet their final requirement. World, embracing towards a Green Revolution, PVC Foam boards is contributing towards achieving the goal and is been used as a sustainable material to save energy, environment & nature.

To learn more about our products f r o m H A N G Z H O U P O LY T E C H PLASTIC MACHINERY CO LTD. Please visit us at www.polytech.net. cn and reach us locally on sales@ e3plastech.com (Mumbai) ph.no +91 - 22-26867230/29

Gearboxes for co-rotating twin-screw extruders T RANGE - With a transmissible torque density up to 14 Nm/ cm3 per shaft.

Z

The gearboxes of the ZT RANGE are designed for a wide range of applications and requirements, starting from the typical applications for revolutions of 300 to max. 900 rpm. to where lower revolution rates from 25 to max. 200 rpm. (ZT2, ZT3 series) are required.

The range is available for centre distances from 24 mm to 200 mm.

On request, also bigger versions can be built.

TST RANGE - Due to those manufacturers who need to increase the power rates of co-rotating twinscrew extruders, the TST (Twin Super Torque) series is provided with a torque distribution system, which is able to ensure a considerable increase of the output revs. (up to 1800 rpm.) and of

P L A S T I C S N E W S

transmissible torque density (up to 16 Nm/cm3 per shaft).

The dimensions of the gearboxes of the TST range available at present go from centre distances of 20 mm to 120 mm. However, at the moment bigger sizes are planned.

TST- HD SERIES (High Density) - This new series at the top level worldwide, which is able to support torque densities of more than 18 Nm/cm3 per shaft, at present is under development. For any sizes already available please consult Zambello.

Examples of application: Compounding (granulates) Masterbatching (colour powders) Foamed items (polystyrene)

Recycling of plastic materials Foodstuff (pringles, energy bars, animal foodstuff, croquettes) ZAMINDIA MANISH SANANDIYA / CEO Mobile: +91 9925835500 E-mail: msanandiya@ zambelloindia.com C/602, Riddhi Tower,Nr. Lotus School,Jodhpur Gam Road, Jodhpur,Satellite, Ahmedabad –380015 Gujarat.India

Cast films for thermoforming (foodstuff bowls) 68

J U L Y 2014

PRODUCT NEWS

Total introduces Bio-TP Seal o make the bio-resins, Total is combining biopolymers, made from polylactic acid from its PLA plant in Belgium, with metallocene-based polyolefins. PLA is made through a fermentation process.

T

The new material is called Bio-TP Seal PLA has won applications for packaging, where processors and food producers tout that the material is made from renewable resources.

But there are other untapped markets, Eric Maziers, rotomoulding technologies technical manager for Total Petrochemicals said.“Today PLA is used for packaging mainly. Is there a chance for rotomoulding? We believe yes,” But Maziers said that, for rotomoulding, just being “green” is not enough — the biomaterials have to bring some property advantages, too. And he said the material does just that. He outlined research that shows the PLA is easy to process, making

transparent parts using amorphous PLA or opaque ones using crystallized PLA. Pure PLA can be rotationally moulded, and exhibits no shrinkage — which is not necessarily a good thing since it makes it tough to remove parts from the mould, Maziers said.

The PLA/metallocene PE alloy solves that, while still reducing shrink. By moulding parts with foam sandwiched between two skins, you can make parts that recover the original shape after compression Bio-TP Seal improves stiffness, and reduces shrinkage and warpage, and better temperature resistance.

Also the very good surface finish is a major advance. He predicted new applications will come in parts with a large surface area that need warpage control, such as kayaks and surfboards.

Arkema offers two new EVOH grades of high ethylene content rkema has expanded its product range of Evasin® EVOH (Ethylene vinyl alcohol) copolymers with two new grades containing 44% of ethylene.

A

Arkema now offers a wide range of EVOH from 29% to 44% ethylene content that can be used for most barrier films applications.These two new grades of Evasin® EVOH contains 44% of ethylene. The high P L A S T I C S N E W S

level of ethylene brings excellent balance of barrier properties and processing stabilities. These grades can be processed by single-bubble or double-bubble blown film extrusion for heat shrink applications.

EVOH is a specialty copolymer with very high barrier properties to gas (oxygen, carbon dioxide), aromatics and hydrocarbons. These characteristics, together with excellent 69

Molder uses moisture analyzer to achieve clear containers artorius Corp in Bohemia, NY, a maker of laboratory and process equipment, said its Mark 3 moisture analyzer can be used for a new housing made of a copolyester resin processed by a combination of blow molding and compression molding. The resin supplier had a recommended moisture specification of 0.020 percent moisture. Initially, E&R had mixed success making these clear containers. Sartorius brought in its Mark 3, and within minutes the company was running tests and getting the necessary moisture results. E&R found that resin dried at or below 0.005 percent moisture produced clear, flawless parts that withstood pressure tests above 700 pounds per square inch.

S

Before getting the Mark 3, the company relied on measuring dew point, of the dryness of the air surrounding the resin pellets, but that was not accurate enough for the demanding application.

transparency and good processability, have made this the reference product among barrier polymers, in particular for multilayer food packaging, automotive fuel tank and heating pipe markets.

J U L Y 2014

TECHNOLOGY

Microbes to the rescue in marine plastic pollution piplastic microbiota," says a new study from the University of Western Australia, are an important force affecting the fate of marine plastic pollution. PhD candidate Julia Reisser and colleagues have published an article in the international journal PLOS One, in which they describe an "epiplastic community" successfully living off the plastic debris floating around in the oceans of Australia.

Remarkably, the researchers found that colonies of these tiny organisms were not only eating microscopic pieces of plastic debris, in some cases their weight was causing the plastic to sink to the bottom of the ocean, thus removing it from the surface of the ocean, where major environmental impacts can occur.

"E

Millimeter-sized plastics, which are known as microplastics if smaller than 5 mm, are abundant in most marine surface waters. They originate from the disintegration of discarded plastic items and trash that end up in the marine environment. Up until now, however, little research has been directed at the organisms that attach themselves to and colonize these marine microplastics. This study was the first to document biological communities on plastic pieces from Australian waters.

More than 1,000 images were taken while examining ocean plastics from Australia-wide sample collections using a scanning electron microscope at UWA's Centre for Microscopy, Characterisation and Analysis. The oceanographers observed a variety of plastic surface microtextures, including P L A S T I C S N E W S

pits and grooves conforming to the shape of microorganisms, suggesting that biota may play an important role in plastic degradation. "These observations, along with detections of hydrocarbon-degrading bacteria genes on marine plastics and experiments demonstrating that marine bacteria can biodegrade, strongly suggest that plastic biodegradation is occurring at the sea surface," write the researchers.

organisms could also make ocean plastics more attractive as food source for "invertebrate grazers," with unknown consequences. "As plastic debris can contain harmful substances it remains unclear if such grazer-plastic relationships would have a positive or negative impact on the populations involved in this new type of food web," is how the article phrases it.

"Plastic biodegradation seems to happen at sea. I am excited about this because the 'plastic-eating' microbes could provide solutions for better waste disposal practices on land," Reisser said. But she also said "epiplastic"

Reisser's PhD surveys were conducted aboard vessels of the Marine National Facility, Australian Institute of Marine Science, and Austral Fisheries.

New process-water filtration system n innovative design for the system that removes dirt and fine particles from process water in underwater pelletizing drastically reduces power usage in water filtration and cuts overall pelletizer energy consumption by nearly 10 to 17%, it was announced by Nordson BKG.

A

The Optigon™ water filtration system eliminates need for a separate fines-removal sieve, which in standard systems requires a secondary, dedicated water pump.

Instead, all filtration is provided by a Polygon™ drum filter, whose 70-micron screens are finer than the 150-micron screens used in standard systems. Driven by a small motor, the drum rotates within the water that is circulated throughout

70

the pelletizing system by the main process water pump. The filtration system is designed so that dirt and fines stay confined inside the drum until they are evacuated into a collecting basin outside the tank.

By eliminating the secondary pump, the Optigon water filtration system uses only 1,440 KW per year (measured at 8,000 hours), as against 44,000 kW and 98,480 kW for the company’s Opti-Line™ and Poly-Line™ systems, respectively.

Since water filtration typically accounts for 10 to 17% of the energy consumption in underwater pelletizing, the energy efficiency of the Optigon system means that overall consumption is cut by nearly that much.

J U L Y 2014

TECHNOLOGY

Nano-pixels' promise thin, flexible, high resolution displays new discovery will make it possible to create pixels just a few hundred nanometers across that could pave the way for extremely high-resolution and low-energy thin, flexible displays for applications such as 'smart' glasses, synthetic retinas, and foldable screens. A team led by Oxford University scientists explored the link between the electrical and optical properties of phase change materials (materials that can change from an amorphous to a crystalline state). They found that by sandwiching a seven nanometre thick layer of a phase change material Ge2Sb2Te5 (Germanium-Antimony-Tellurium or GST between two layers of a transparent electrode made of indium tin oxide (ITO) they could use a tiny current to 'draw' images within the sandwich 'stack'.

A

Initially still images were created using an atomic force microscope but the team went on to demonstrate that such tiny 'stacks' can be turned into prototype pixel-like devices.

These 'nano-pixels' -- just 300 by 300 nanometres in size -- can be electrically switched 'on and off' at will, creating the coloured dots that would form the building blocks of an extremely high-resolution display technology.

'We didn't set out to invent a new kind of display,' said Professor Harish Bhaskaran of Oxford University's Department of Materials, who led the research. 'We were exploring the relationship between the electrical and optical properties of phase change materials and then had the idea of

P L A S T I C S N E W S

creating this GST 'sandwich' made up of layers just a few nanometres thick.

We found that not only were we able to create images in the stack but, to our surprise, thinner layers of GST actually gave us better contrast. We also discovered that altering the size of the bottom electrode layer enabled us to change the colour of the image.'

Whilst the work is still in its early stages, realising its potential, the Oxford team has filed a patent on the discovery with the help of Isis Innovation, Oxford University's technology commercialisation company. Isis is now discussing the displays with companies who are interested in assessing the technology, and with investors.

The layers of the GST sandwich are created using a sputtering technique where a target is bombarded with high energy particles so that atoms from the target are deposited onto another material as a thin film.

'Because the layers that make up our devices can be deposited as thin films they can be incorporated into very thin flexible materials -- we have already demonstrated that the technique works on flexible Mylar sheets around 200 nanometres thick,' said Professor Bhaskaran. 'This makes them potentially useful for 'smart' glasses, foldable screens, windshield displays, and even synthetic retinas that mimic the abilities of photoreceptor cells in the human eye.'

Peiman Hosseini of Oxford University's Department of Materials, first author of the paper, said: 'Our

71

models are so good at predicting the experiment that we can tune our prototype 'pixels' to create any colour we want -- including the primary colours needed for a display. One of the advantages of our design is that, unlike most conventional LCD screens, there would be no need to constantly refresh all pixels, you would only have to refresh those pixels that actually change (static pixels remain as they were). This means that any display based on this technology would have extremely low energy consumption.'

The research suggests that flexible paper-thin displays based on the technology could have the capacity to switch between a power-saving 'colour e-reader mode', and a backlit display capable of showing video.

Such displays could be created using cheap materials and, because they would be solid-state, promise to be reliable and easy to manufacture.

The tiny 'nano-pixels' make it ideal for applications, such as smart glasses, where an image would be projected at a larger size as, even enlarged, they would offer very high-resolution.

Professor David Wright of the Department of Engineering at the University of Exeter, co-author of the paper, said: 'Along with many other researchers around the world we have been looking into the use of these GST materials for memory applications for many years, but no one before thought of combining their electrical and optical functionality to provide entirely new kinds of non-volatile, high-resolution, electronic colour displays."

J U L Y 2014

TECHNOLOGY

New research project to develop biodegradable packaging for dairy products uropean countries are estimated to be the largest consumer of dairy products in the world, according to the data provided

by FAO in 2011. While high density polyethylene (HDPE) bottles are used quite often to package the dairy products, it's estimated that only about 10 to 15 percent of the packaging is recycled, according to data from 2012.

E

In an effort to reduce waste and increase recycling rates, the Technological Institute of Plastic (Aimplas) out of Spain is coordinating the research carried out by seven companies and technological centers to develop new materials to manufacture biodegradable packages for dairy products.

The project is called Biobottle and its aim is creating multilayer and monolayer plastic bottles, as well

as bags to package dairy products, which do not require separation from the rest of organic wastes at the end of its lifespan.

Since milk bottles and bags can only be used once, a big volume of waste is generated. In addition, Aimplas says that a high temperature washing is required in its recycling to eliminate any waste of products and subsequent odors. This is why the researchers behind the project believes it's an added value for the manufacturers to throw away dairy packaging with the rest of waste.

Aimplas and the rest of the Biobottle's partners are working on developing a biodegradable material that will allow the manufacturing of big multilayer bottles or bags, such as the ones for milk or milkshakes, as well as the monolayer bottles, which

are smaller, used to package probiotic products.

One of the main difficulties of the project is getting a biodegradable material that complies with the same requirements than the traditional packages used, including the resistance to thermal treatments such as the sterilization or pasteurization.

For this, it is expected to modify the current commercial biodegradable materials through the reactive extrusion to overcome the thermal limitations in the current biodegradable ones available in the market.

Biobottle is a European Project in the Seventh Framework Program, with a funding of €1 million ($1.36 million).

Seven companies and technological centers from five different countries are working with Aimplas.

“Energy Bag" program to convert plastics-to-energy nergy recovery is positioned as a complement to current efforts to divert waste from landfills.

However, bringing the technology to the mainstream in the U.S. has been somewhat slow moving.

municipal process that can achieve many positive long-term environmental and economic results, including fewer tons of landfill trash, more local energy resources and less energy dependence.

But a new initiative hopes a purple bag might be the catalyst for change.

Co-sponsored by The City of Citrus Heights, Republic Services and Dow Chemical, the Energy Bag program hopes to prove that resource recovery of non-recycled plastics is a viable

The summer-long program will ask approximately 27,000 Citrus Heights households to separately collect plastic items not currently eligible for recycling in the city. These items include juice pouches, candy wrappers, dog food and cat food bags,

E

P L A S T I C S N E W S

72

frozen food wrappers, outer wraps for water bottle or soda packages and even plastic dinnerware, plates and cups.

The programs calls for pilot households to receive bright purple "Energy Bags" to be used used exclusively for collecting these plastics. After each bi-weekly recycling collection during the summer, these bags will be separated and sent to a sorting depot and then to the energy conversion facility, Agilyx Corporation.

J U L Y 2014

IN THE NEWS

India seeks anti-dumping duties on Taiwanese machines he Indian plastics machinery industry is asking its government to impose anti-dumping duties on injection moulding machines from Taiwan, according the Plastics Machinery Manufacturers Association of India (PMMAI).

group suggested it wants to go further, seeking duties against press makers in Taiwan, which has one of Asia’s largest plastics machinery industries, as well as elsewhere in Asia. It said it made a confidential request to the Indian government.

The comments were the first public confirmation that the PMMAI is now targeting imports from Taiwan, as it seek to broaden the anti-dumping duties imposed on mainland Chinese machines to other countries.

“PMMA has sought imposition of anti-dumping duty on some other countries like Malaysia, Philippines, Taiwan etc,” the group said. “However [the] government of India would decide after investigation in respect of all the countries against whom industry has filed application.”

T

Previously, PMMAI said only that it wanted duties against machinery from Vietnam and the Philippines, in an apparent reference to factories set up in those countries by mainland Chinese manufacturers such as Haitian International Holdings. The

“The industry has already filed the petition,” the Indian association told PN. “In view of confidential information included in the petition, the details have not been made available even to

EU Industry backs ‘green’ framework urope’s plastics industry has broadly backed the European Commission’s (EC) proposal to end the landfilling of all recyclable waste by 2025 but called for “a more ambitious” 2020 deadline for plastics.

to landfill by 2020.” PlasticsEurope also supported the Commission’s drive to increase the reliability of waste data and its consistency across the European Union (EU) through a harmonised calculation.

“The examples of those member states that have already successfully phased out landfilling show that a legislative decision is needed to trigger the necessary investments in recycling and energy recovery of valuable resources like plastics,” said Karl Foerster, executive director of PlasticsEurope. “[But] we would have liked to see a more ambitious approach to support our target of zero plastics

However, it was concerned about the proposal to combine the increased recycling targets for plastic packaging with the new approach. “Switching from an input to an output-based calculation and increasing targets at the same time will drive plastics recyclers to focus even more on quantity versus quality, thereby jeopardising the potential environmental benefits of recycling,” explained Foerster.

E

P L A S T I C S N E W S

73

the industry. Regret we will not be able to share the details with you.”

The Indian machinery group added that “the petition filed in respect of imports from countries like China, Taiwan, Malaysia etc. looks like are at dumped prices and causing injury to the Indian domestic industry”.

According to PMMAI data, Taiwan was the largest source of imports of injection moulding machines for the last three years, accounting for between 30-50 percent of plastic machinery brought into India. In 2010-2011, for example, Taiwan accounted for 672 of the 1,397 units of imported plastics machinery. India is an important market for Taiwan, but putting steep duties in place would slow down India’s industrial development.

FM keen on increasing Production he Finance Minister Arun Jaitley, in his budget for 2014-15 has proposed cut in basic customs duty on some petrochemical units in India to encourage new investment and capacity addition in the chemicals and petrochemicals sector. The Minister said that steps have been taken to boost domestic production of electronic items and reduce dependence on imports. The FM reduced basic customs duty on certain items to boost domestic manufacture & to address the issue of inverted duties.

T

J U L Y 2014

IN THE NEWS

Plasticity focuses on the next life of plastics lasticity Forum, the one-day event examining the future of plastic, was held on June 24 at Tribeca Rooftop in New York, bringing together would-be opponents for a day of collaboration and discussion on how to treat plastic as a resource and not waste. The third annual event moved to the United States for the first time, after an inaugural conference in Rio de Janeiro at the 2012 Rio+20 Earth Summit and a 2013 event in Hong Kong. A project of the Ocean Recovery Alliance and the Republic of Everyone, the Plasticity Forum aims to bring together leaders to collaborate to help scale up some of the great solutions now coming to market, the organizers say, and to showcase sustainable solutions and market opportunities for transforming all types of plastic “one through seven” into a valuable resource.

P

“This year’s Plasticity Forum marks a new chapter in collaborative action between industry, governments and communities in banding together to scale solutions that can really drive mindset changes in how we perceive plastic in a new form, that of the resource that it truly is,” said Doug Woodring, founder of the event and Ocean Recovery Alliance. “By no means is this an easy challenge to address, but leaders at this event are some of the real trail blazers who know how to deliver solutions that we can all participate in, and benefit from, in our respective communities.”

Architect, author of Cradle to Cradle and self-styled sustainability guru William McDonough challenged attendees expand their thinking beyond P L A S T I C S N E W S

the traditional Rs of “reduce , reuse, recycle,” to include “redesign, renew and regenerate.”

“We have to stop thinking about, using the phrase ‘end of life’ with our plastic products. It goes in, it continues, it becomes something new. Let’s move on, let’s make it ‘next life,’” McDonough said in his keynote address, encouraging plastics processors and trade associations such as event sponsors the Society of the Plastics Industry Inc. and the American Chemistry Council to consider products’ potential next life on the front end, even in the design phases.

The conference brought together innovators from around the world to share their “next life” plans for plastics, including Arthur Huang co-founder and managing director of Miniwiz, a Taipei, Taiwan-based company dedicated to upcycling trash to create versatile, highperformance and low-carbon materials suitable for uses ranging from buildings to consumer products.

Infrastructure has been key to Miniwiz’s successes, Huang said.

“We’ve been blessed with infrastructure [in Taiwan],” he said.

“We are also blessed with all the trash from the United States and the rest of the world.”

While necessity may have been the mother of invention for Miniwiz, Huang also noted that sticking to the old adages of production and marketing have also been part of his success.

“Whatever you’re going to make, it has to be sexy,” Huang said. “How can

74

we sell trash? As long as something is sexy, people will buy it.”

Bringing sexy back for plastic waste isn’t easy, other speakers noted, but it is possible.

Denmark withdraws ban on phthalates enmark has stepped back from introducing a unilateral ban on phthalates (DEHP, DBP, DIBP and BBP) under pressure from the European Commission. The proposed prohibition was initially triggered by research that suggested that the additives have endocrine disrupting properties.

The Danish ban, which was originally proposed in 2012, was finally due to come into force next year but will now be repealed.

D

Denmark's former e n v i r o n m e n t m i n i s t e r, I d a Auken,said, “ EU rules should not prevent individual member states from protecting their citizens.”

Denmark had already postponed the ban once in 2013 due to the complexities of the measure.

The country’s environment ministry discovered that the use of phthalates in products such as vinyl floor tiles, cables and wires was more widespread than it had anticipated.

J U L Y 2014

EVENTS

Events and Exhibitions International Plastic Exhibition Week

Srilanka Plast

Date: 16-19 Jul 2014

Date: 14-16 Aug 2014

Venue: Bangkok International Trade & Exhibition Centre.

Bangkok, Thailand

Venue: Bandaranaike Memorial International Conference.

Colombo, Sri Lanka

International Plastics Exhibition, and this conference will provide you the great opportunity where you all have a huge platform in which all the participants of the conference can meet and interact with the senior and delegates with whom you all can also share your own new ideas, experience, and views face to face in any topic related to this conference.

This second edition is planned to bigger and better and this will be very helpful for all the participants of the conference where you all can gain the more knowledgeable information about the Plastics Exhibition.

SRILANKA PLAST is an excellent opportunity for the plastics industry professionals in Sri Lanka to get in sync with the latest developments in technology and equipments related to plastics around the world. This trade fair will be hosted for a total of 3 days and will aim to bring together the interest groups in plastics manufacturing and sustainability.

Exhibits at the SRILANKA PLAST 2014 will include Raw Material, Polymer and Resins, Intermediates, Blends and Alloys, Composites, Specialty Chemicals, Masterbatches, Additives, Colourants, Fillers and Reinforcements from more than 500 participants. A large number of Processing Machineries will also be on display such as those used for Extrusion and Molding. Converting Equipments required for Printing, Decorating, Slitting and rewinding, Laminating, Bag and Pouch making.

PlastPack Sri Lanka Date: 25-27 Jul 2014 Venue: Sri Lanka Exhibition & Convention Centre Colombo, Sri Lanka

Interplast

International Exhibition for Plastics Rubber and Packaging Industry is a 3 days event which is being held from 25th July to the 27th July 2014 at the Sri Lanka Exhibition & Convention Centre,Colombo, Sri Lanka. This event showcases products like additives, adhesive and glues, basic chemical bulk drugs, catalyst, chemical intermediates, cleaning chemicals, coating compounds, corrosion inhibitors, cosmetic chemicals, detergent raw materials, dyes & dye stuff, electro chemicals, electroplating

Date: August 18-22, 2014, Venue: Joinville, Brazil Interplast (Plastic Technology Trade Show and Conference ) takes place in Joinville, Brazil from 18.08 to 22.08.14. The fair is held in the second largest plastics market in South America, a region that has a signiďŹ cant number of global brands producing for various applications in industries such as automotive, home appliance, construction, furniture, cosmetics and personal care, pharmaceutical, packaging and house wares, forming an extensive supply chain. The show will exhibit their latest and advanced products and services such as Plastic Raw Materials, Plastic Machinery, Plastic Product, Plastic Equipment, Plastic Accessories, Plastic Technical Publications, Plastic Entities, Synthetic Resins, Miscellaneous Chemicals, Miscellaneous Tools, Plastic Instruments, Control and Automation, Plastic Services and Plastic Technical Projects.

IPLEX 2014 International Plastics Exposition Date: 8-11 August 2014 Venue: Hyderabad The progressive scenario surely gives a reason for IPLEX to be at Hyderabad during August 2014 and you to be a part of it Over 50,000 visitors from all parts of south India and rest of India are expected to attend IPLEX 2014.

P L A S T I C S N E W S

75

J U L Y 2014

YUDO Hot Runner.. ....................................................................................................................................... cover Madhu Machines & Systems ...............................................................................................................inside cover Anupam Heaters and Controls .............................................................................................................................3 Polymechplast ......................................................................................................................................................4 Plastlink Technologies.. ........................................................................................................................................6 Ferromatik Milacron. .............................................................................................................................................7 Neejtech India.......................................................................................................................................................8 GSM Plastic Machinery ........................................... ..........................................................................................10 PASL Windtech... ................................................................................................................................................12 Allied Solutions... ................................................................................................................................................13 KABRA Extrusion Technik Ltd.. ..........................................................................................................................14 GoIndustry Dovebid.. ..........................................................................................................................................21 Mold Masters ......................................................................................................................................................22 Taiwan Association of Machinery Industry ..........................................................................................................47 Reliance Polymers..............................................................................................................................................48 Plastic Technologies ...........................................................................................................................................49 I Plex 2014..........................................................................................................................................................50 e3 Plastech Marketing Pvt. Ltd. .........................................................................................................................51 S&G Extrusion Machines....................................................................................................................................52 Plastic Park.........................................................................................................................................................53 Plasticon Awards 2015. ......................................................................................................................................54 Zambello Riduttori Group ...........................................................................................................Inside back cover Rajoo Engineers ................................................................................................................................... Back cover

P L A S T I C S N E W S

76

J U L Y 2014

P L A S T I C S N E W S

77

J U L Y 2014

Registered with Registrar of Newspapers under RNI No. 22731/72

Posted at Patrika Channel Sorting Office, Mumbai 400 001

Postal Registration No. No. MH/MR/N/200/MBI/12-14

Posting date : 25th - 26th of every month

Date of Publication: 25th of every month (as per declaration in Affidavit form)

twice as much output

Built to conquer toughest competition with Lamina sheet lines and Dispocon thermoformers are so sturdy and robust that they hardly require any maintenance. High uptime ! High productivity !

No other Indian machinery manufacturer has the experience of over 200 sheet lines and equal number of thermoformers, operating successfully. y Rajoohas come of age in Indian Thermo-forming Industry, y offering mature and proven technology !

With nearly double the output at same level of energy, y projects with Rajoosheet lines and thermoformers are just more than value for money; resulting in quick payabacks and significantly lower capital cost to installed capacity ratio.

One more advantage to opt for Rajoo extrusion lines !

excellence in extrusion

Visit E-mail Phone Fax

: : : :

www.rajoo.com rel@rajoo.com +91-97129 62704 +91 2827 252700

P L A S T I C S N E W S

LAMINA Visit us

Visi t us

Visi t us

Hall No. 1 Stand No. B04

Hall No. B Stand No. B48

Hall No. 38A Stand No. 18

th

78

th

th

th

th

th

8 - 11 Aug. 2014

14 - 16 Aug. 2014

25 - 29 Sep. 2014

H y d e r a b a d, I n d i a

C o l o m b o, S r i La n ka

Te h r a n, I r a n

graphics@rajoo.com

®

J U L Y 2014