Plastic news march 2015 issue pdf by aipma

SAY YES TO PLASTICS Volume No. 88

PRN: - MCN/200/2015-2017

Issue No. 03

Pages 74

March 2015

Rs. 75.00

• March 2015 • Plastics News

Plastics News • March 2015 • 4

CONTENTS

Plastics News MCN/200/2015-2017 Volume 88

March 2015 No. 3

IS H T N

Chairman - Editorial Board Mr. Rituraj Gupta Hon. Editor Mr. Ajay Desai

. . . E SSU

13...... AIPMA At Work The National Awards Function

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

ISOTC-61 (Plastics) meeting held in Shastri Bhavan Rising plastics demand, product diversification to fire up regional manufacturing industry

Editorial Co-ordination: Padmesh Prabhune, Dhruv Communications, Mumbai, Tel No: 022 2868 5198 / 5049 Fax No : 022-28685495 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 Printed by her at : Dhote Offset Technokrafts Pvt. Ltd., Goregaon (E), Mumbai-400 063. Annual Subscription Single issue

Rs. 1,000/Rs. 75/-

Views/Reports/Extracts etc. published in Plastics News are those of the authors and not necessarily of the Editor. Furthermore except for copies of formal AIPMA communications no other matter in this journal should be interpreted as views of The All India Plastics Mfgrs. Association. Office Bearers Mr. Rituraj Gupta Mr. R. K. Aggarwal Mr. Meela Jayadev Mr. Sanju Desai Mr. Ashok Agarwal Mr. Haren Sanghavi Mr. Manoj R. Shah Mr. Jagat Killawala

CII National Council meeting held on 1st March, 2015, New Delhi

19...... Company News 23...... Features Union Budget 2015 The KOPLAS 2015 India PET and PBT Market estimated at around USD1.9 Billion DSM and CVC in Join hands for polymer intermediates and composite resins Canada introduces Birth certificates made with polymer NPE2015 to open with a Fashion Show in plastics industry’s pursuit of zero waste PlastiComp and Xenia Partner to develop applications for carbon fiber reinforced thermoplastic composites Lightweight DE-STA-CO Tooling Can Boost Injection Molding Productivity Kabra bags the prestigious National Award for Technology Innovation

53...... International News President Vice President (North Zone) Vice President (South Zone) Vice President (West Zone) Vice President (East Zone) Hon. Secretary Hon. Jt. Secretary Hon. Treasurer

57...... Business News 61...... Product News 65...... Technology 68...... In the News 5

• March 2015 • Plastics News

Plastics News • March 2015 • 6

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• March 2015 • Plastics News

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Plastics News • March 2015 • 8

THE PRESIDENT SAYS

Welcoming Initiatives

he Union budget presented by the Finance Minister have seen mixed reactions. While the corporate world appreciates the initiatives, (there are some pockets,who are still not happy) this budget could have been better. But given the ground realities, I think we must give some time to the FM as well. As far as Plastics Industry is concerned then we have one, the basic Customs Duty on ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) is reduced from 2.5% to 2%. Second, basic Customs Duty on butyl acrylate is reduced from 7.5% to 5%. Third, Special Additional Duty on naphtha, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) for manufacture of excisable goods is reduced from 4% to 2% . However the Excise duty on sacks and bags of polymers of ethylene, other than for industrial use, is increased to 15%. We strongly protest this. We also welcome the implementation of the Goods and Services Tax (GST) in the Union Budget 2015 as it is expected to reduce cascading effect on taxes and improved tax efﬁciencies can be passed on to the consumers. Of course this is a welcome initiative. All of us from the industry have been discussing the Pros and Cons of the Union budget and time will only tell that if FM could achieve the objectives. As we have been advocating that Plastics is one of the best alternate, and around the world this is being resounding. One of the best examples is that of the referendum on bag ban in California. California’s voters, not legislators, will be the ones to ultimately decide on the state’s plastic bag ban. The referendum to repeal a statewide plastic-bag ban qualiﬁes for the November 2016 ballot. The ban was passed last year by state legislators and scheduled to go into effect July 1, 2015, but the more than 800,000 signatures submitted to California Secretary of State Alex Padilla

by the American Progressive Bag Alliance (APBA) will delay its implementation until next year’s vote.Under the law signed by Gov. Jerry Brown in last September, single-use plastic bags were to be prohibited as of July 1, 2015. Californians were set to pay a minimum of 10 cents for each reusable plastic or recycled paper bag at grocery stores and in 2016, the ban would have extended to pharmacies and liquor stores. The bill (SB 270) was written by Padilla, at the time a secondterm state senator. Opponents, lead by APBA and a coalition of more than 20 California business and taxpayer groups, say the bag ban would eliminate thousands of jobs in the state and effectively tax shoppers without their say-so and put the money into grocer’s pockets instead of using it for environmental purposes. Also to create a greater awareness about Plastics, Leader calls on Mexico’s plastics industry to spend more to defend. According to Eduardo de la Tijera Coeto, co-founder and CEO of Grupo Texne in Mexico City, just spending about 3 million pesos a year (about €176,000) initially, lobbyists have managed to block the passage of 40 laws while at the same time have encouraged six initiatives based on production and sustainable consumption helping to modify seven anti-bag laws that had already been approved. Perhaps, this can happen in India as well for this is rather a question of attitude and a commitment. Are we ready..? Rituraj Gupta president@aipma.net

• March 2015 • Plastics News

Plastics News • March 2015 • 10

FROM THE EDITOR'S PEN

Automation is the buzz word ll of us by now are fully aware of the Union

system that disperses the glass

Budget 2015 and I am sure most of our friends

ﬁbers into the melted resin

have been studying it for the ﬁne prints are still

with outstanding uniformity.

coming. However as it is, the Budget seems to

Together these innovations

be focusing on development and if everything is

enable injection molding in

implemented as on paper then it would be an ideal

which resin and glass ﬁbers are

situation one would wish for.. As our practice we are

introduced into the system in

carrying the gist of the Union Budget in this issue as

their material state, resulting in LFT molded products

well for the beneﬁt of our readers.

of superlative strength and rigidity.

Innovation in Automation has been evolving and

Also it is understood that compared to injection

all of us have witnessed the changes in the recent

molding that requires the purchase of compound

exhibitions as well. Be it Plastindia 2015, KOPLAS

material, the D-LFT System can be expected to

2015 or the NPE to be held next where in we are

trim material costs by roughly 25%. This means the

expecting KraussMaffei and others to show up.

integration of the kneading and injection molding

Coming on to automation Mitsubishi have developed

processes translates to a more compact production

Injection molding system that produces high-strength

line. User support will be enhanced through the

LFT products from long glass ﬁbres and polypropylene

introduction of a new service whereby users will be

(PP) resin, all in one process called as the D-LFT

provided with material mixing recipes for use with

System.

glass ﬁbers manufactured by Nippon Electric Glass

Its a unique screw shape, glass ﬁber feed method and other proprietary innovations eliminate the

Co., Ltd., a company that cooperated in developing the D-LFT System.

need for kneaded pellets (compound), enabling

For me the new system should be useful in new

signiﬁcant reductions in manufacturing costs. The

applications, especially for creating items to

newly developed D-LFT System integrates a variety of

supersede conventional metal parts in order to

hardware innovations - a dedicated screw, automatic

achieve lighter vehicles, etc. But does it happen,

resin and glass ﬁber feed mechanisms, etc. - with

remains to be seen…

proprietary innovations in software, including technology that controls the glass ﬁber feed according

Hon. Editor

to the amount of melted resin and a new control

Ajay Desai

• March 2015 • Plastics News

Plastics News • March 2015 • 12

AIPMA AT WORK

The National Awards Function

he National Awards function was held on 21 February,2015 at Bangalore. On the invitation of CIPET, for Presentation of National Awards function we had attended the Gala function on the concluding day. Our President Riturajji was in Bangalore for full 3 days Conference. As AIPMA President he was one of the judges in Award selection Committee. It is an honour always.

National Award function is growing in stature, day by day, initiated from Release of Petrochemical policy before ﬁve years by Government of India to encourage Technology Innovation in Petrochemicals & Downstream Plastics Processing industry 2014-15. Hon'ble Minister Shri Ananth Kumar was the chief guest at the function. He distributed the prizes to the winners which included, cash prize ranging from Rs. 2 to 5 Lacs in Eight Categories.

Highlight of Shri Ananth Kumar’s speech Shri Ananth Kumar appreciated this conference for having around 127 Universities from India, with 18 Foreign University presenting 450 papers in three days highlighting innovations in our ﬁeld. The function waas attended by over 1000 delegates. (They have three day conference announced in Ahmedabad along with PolyIndia exhibition next year) Hon’ble Minister said plastic is everywhere, it is beneﬁcial to life. It is “Sarvavyapi”, i.e. it is in all sectors viz. Packaging, Agriculture, Healthcare, Consumer Durables, Electronics, Infrastructure etc.

Plastic Raw Material Consumption, which is 11 million tons today, is set to be 20 million tons by 2020, taking per capita to 20 kgs from present nearly 10 kg, set to double in next 5 years. Manpower requirement also will grow equally. CIPET is churning out 44000 students every year. By 2020 he set the Target for CIPET of 1 Lac per year manpower for plastic industry growth. Today CIPET runs 23 centers but now they should set 100 centers across the country. For in coming budget he himself met Finance Minister & suggested many relief for changes in tariffs, FTA, Excise duty etc in favour of plastic industry. (Looks AIPMA joint presentation with other Four National Association is the basis), as per his body language. Let us hope for the best in incoming budget of 28th February 2015.

He wants Indian plastic industry to be the world leader by exporting best quality products at competitive prices. (Our target to make India a global sourcing hub) i.e. Make in India & Export as Made in India. Within next 30 days he wants to have Move Forward Road Map Paper from Industry for achieving this. Innovation, R&D, Capacity Bldg, Global competitiveness will be the key. He declared that the year 2015 be declared as Plastic Waste Management Year. Plastic waste, which consists of 3% of the total waste, is a eye sore. There must be management system to recycle. Eye sore Topography must change. Green plastic must be encouraged. He exhorted Plastic Waste Management should be integral

• March 2015 • Plastics News

AIPMA AT WORK

part of Swachh Bharat Abhiyan. He said this 3% plastic waste, which is a big cause for worry as well as eyesore and it should not stop growth of plastic as it is beneﬁcial to society at large & has big potential for job & value addition. For us deﬁnitely it was one of the best speeches, a Parent Minister of Central Government putting plastic growth in right perspective for our growth, which AIPMA is advocating since long. Now new investments will pour in as plastic & environment point is put in as in other advanced countries, seeing advantages of using plastics in different sectors. (L to R) Mr. Arvind Mehta – Chairman Governing Council AIPMA , Mr. Rituraj We feel now our AIPMA’s hard work is understood Gupta – President AIPMA with Shri Ananth Kumar – Minister of Chemical and Fertilizers during the National Awards Function by decision makers in Delhi.

ISOTC-61 (Plastics) meeting held in Shastri Bhavan

he ISOTC 61 ( Plastics ) meeting was held on February 25, 2015 at the Shastri Bhavan, New Delhi and was chaired by Dr. Kansara. ISOTC 61 is a World level body pertaining to standards and the present Secretariat of the world body is in China. Dr. Hupert Simon is the Chairman.

The body decides on Nomenclature, Speciﬁcations and all standards regarding ISOTC 61. In India this committee falls under BIS Ministry of Consumer Affairs. There are 32 participant (P) members of the Committee and 38 Observer (O) members. India is one of the (P) members. The meeting of these countries is held once in every year i.e. in September for Plastics. Last meeting was held in Hawaii, U.S.A. India was represented by Ms. Nisha Bhura, Dr. S.K. Nayak, D.G. CIPET, Dr.N.C. Saha, Chairman – IIP, Dr.Sundareshan – RIL and Dr.Kansara- BIS. The next meeting of the ISOTC 61 will be held in New Delhi, India from 4th – 9th October, 2015. Around 300 foreign delegates and other Indian delegates are expected to attend this Conference. The Committee has requested Mr.Rituraj Gupta, President AIPMA to involve the Industry in helping

Plastics News • March 2015 • 14

us to prepare Nomenclature and speciﬁcations of various products they are involved in. The Committee also requested him to organize meeting of all large exporters with BIS Committee to involve them also about ISOTC 61. Our President Mr.Rituraj Gupta has agreed and informed them that AIPMA is willing to co-operate with them and connect their hard work to the industry as may be required by them.

AIPMA AT WORK

Rising plastics demand, product diversification to fire up regional manufacturing industry

lastivision Arabia 2016 will be organized by Expo Centre Sharjah, in association with All India Plastics Manufacturers Association, and the support of the Sharjah Chamber of Commerce and Industry. It will be held at Expo Centre Sharjah from February 22 to 25 in 2016, regarding the same press release were published in the regional press, Sharjah. The rising demand for plastics in the GCC and increasing product diversification are encouraging the regional manufacturing industry to ramp up their production capacity. According to Gulf Petrochemicals and Chemicals Association (GPCA), plastics production capacity in the GCC grew 6% to 25.5 million tons in 2014 and is projected to increase 25% to 33.8 million tonnes by 2020. The manufacturers are also gearing up to see a significant rise in their product portfolio, which is set to go up from the current 13 to nearly 30 in the coming years to cater to growing demand from sectors like aviation, transport and food packaging. Given the strong market fundamentals, regional manufacturers are keenly waiting for a premier industry event to better equip themselves in a highly competitive market.The 3rd Plastivision Arabia 2016 will provide regional manufactures instant access to new machinery, technologies and materials, and insights into improving production and personnel efficiencies and reducing costs. “The regional plastics industry is in the midst of sustained growth focusing mainly on quality, efficiency and environmental concerns. The industry will have to rely on technical innovations to produce a more diverse product range and achieve sustainable growth,” said Mr. Rituraj Gupta, President, The All India Plastic Manufacturers Association. Expo Centre Sharjah, in association with All India Plastics Manufacturers Association, is organising and hosting the 3rd Plastivision Arabia international plastics exhibition and conference from February 22 to 25 in 2016. “Plastivision Arabia has firmly established itself as the best regional sourcing point with its past two editions. The next

edition of the show is sure to open up more channels for machinery makers and suppliers to tap this high-growth market,” said Mr Midfa. Domestic demand for plastics is growing fast in the GCC. The per capita consumption of plastics is estimated at 39 kg in the region, 33 per cent higher than the world average. Experts point out that at the core of the industry’s growth is a growing population, rising construction projects and bigger penetration of pre-packed foods, prompting region’s plastics producers to look at acquiring new machinery and technology to keep pace with demand. A rising number of manufacturing units is also generating demand for materials and machinery. In 1990, the number of plastics factories in the GCC stood at 326, in 2007 it was 1,223 and by 2012-13, it rose to 7,000. The ﬁgure is on the rise with new plastic processing units mushrooming in the region owing to easy availability of feedstock. Saudi Arabia and the UAE are also major exporters of plastics, taking advantage of their location that is in close proximity to areas that are experiencing economic growth and population increase. “Expo Centre Sharjah will continue its partnership with All India Plastics Manufacturers Association, the oldest and the largest apex body of the plastic industry in India, for the upcoming Plastivision Arabia. Apart from sharing their expertise, this will facilitate the participation of plastic processing machinery manufacturers from India,” said Mr. Saif Al Midfa, CEO, Expo Centre Sharjah. Plastivision Arabia 2016 will be held along with Arabia Mold, in association DEMAT, the organizer of worldrenowned EuroMold, the world’s leading fair for moldmaking & tooling, design and application development. The 2nd Print Pack Arabia, will also be held concurrently.

• March 2015 • Plastics News

AIPMA AT WORK

CII National Council meeting held on 1st March, 2015, New Delhi

meeting of the National Council 2014-15, Confederation of Indian Industries, was held on Sunday, March 1, 2015 at The Taj Mahal Hotel, Mansingh Road, New Delhi. The meeting was ﬁrst addressed by Mr.Arvind Subramanian, Chief Economic Adviser, Government of India. He explained on the Policies, Vision, P u b l i c a n d Pr i v a t e i n v e s t m e n t of Rs.70,000 crores committed for infrastructure development as in 14th ﬁnance commission. He also said the budget has stressed upon Social Security System, Agriculture and JAM. He also informed that the contribution to States by the Centre Govt. is being increased by 10%. He also stated the states have to be more prudent in their spending.

(L-R) Mr Sumit Mazumder, President Designate, CII; Dr Hasmukh Adhia, SecretaryFinancial Services, Ministry of Finance; Smt Aradhana Johri, Secretary-Disinvestment, Ministry of Finance; Mr Shaktikanta Das, Secretary-Revenue, Ministry of Finance; Mr Ajay S Shriram, President, CII; Mr Chandrajit Banerjee, Director General, CII.

He suggested that Oil price may go up to around USD 70 and if US tightens its economy, India will need to increase exports. He was also of the opinion that the budget is pro-economy. Emphasis is on removal and exemption raj and requested the Industrialists to not insist for exemptions. The Corporate tax has been reduced from 30% to 25% keeping in mind the average tax rates in Asia which is 2%. He also informed that the Government has not implemented any retrospective taxes. The GDP number stated in the budgets is as provided by CSO. Mr. Jayant Sinha, Minister of State for Finance, GOI, emphasized that there are 10-15 major reforms, government has taken for the poor, in Agriculture, Youth, Middle class, Business and Industry and investors. The following reforms have been initiated in banking sector such as Public sector banks, Black money, Public infrastructure Rs.70,000 crores, National investment trust, Social security such as insurance and NPS, irrigation such as Krishi Sinchai Yojana by Nabard, National Skill Mission, Make in India such as Electronics, Innovation and entrepreneurship, Fund of 150 crores for R&D has been allotted, NITI Aayog 1000 crores and total Rs. 10,000 crores allotted, Bankruptcy Code, Jandhan Yojna and many more.

Plastics News • March 2015 • 16

Mr. Suresh Prabhu explained the industrialists on the source of funds i.e. Rs.8.5 Lakh Crores needed for infrastructure development in railways during the next 5 years. Mr. Shaktikanta Das mentioned that the GST w.e.f. 20142016, Revenue sharing to states, Reduction in corporation tax, Guidelines has been issued to CBDT so that there is no harassment to honest tax payers. Ms. Aradhana Johri, Secretary, Disinvestment informed that the Government has planned disinvestment of Rs.69,500/- crores during the F.Y. 2015-16 as against average yearly disinvestment between 2000-2014 of Rs.9553/- crores and disinvestment of 22557 of Call India on 13th January, 2015. Mr. Hasmukh Adhia, Secretary, Financial Services informed on the formation of Bank Board Bureau, consists of 5 prominent economists to introduce of Insurance Pension Product. Mudra Bank with a Corpus of Rs.20,000/- crores for Small and Micro units. This bank will be on the lines of NHB and will be specially for Micro & Small units only. He informed the House that there are 5.7 crores of Micro & Small units as per NSO ﬁgures.

• March 2015 • Plastics News

PLASTIC TECHNOLOGIES

Plastics News • March 2015 • 18

COMPANY NEWS

Kraiburg prepares for future growth with new Georgia facility

raiburg TPE recently broke ground on its new US headquarters in Buford, Georgia, in metro Atlanta. The expansion project for the 65,000-square-foot building amounts to a $15m (€14m) investment, Kraiburg said, and is expected to create more than 20 new jobs over the next ﬁve years. “It's the largest capital investment that our company has made outside of Europe in our company's history, so it's fairly significant in that regard,” said Jeff Frankish, managing director for Waldkraiburg, Germany-based Kraiburg TPE. Kraiburg currently occupies a leased building where it has been since 2002, he said, which was the year the company ﬁrst started to produce thermoplastic elastomers in North America.“This is the only location that we have throughout North,

Central and South America, and we do produce and supply into Mexico and in South America,” Frankish said.The company started looking for other options for two specific reasons.“We're simply running out of space, and given the fact that our lease was going to be coming up in August of 2016, we started taking a look about a year and a half ago what our options would be,” he said. “The space limitations that we have here are not only for our ofﬁce space but also from a production standpoint.we don't have enough room to add another production line to our existing facility.” Kraiburg priorities with the move of the headquarters was to retain employees. This meant searching for locations that would not be too far away from its current location in Duluth, a suburb northeast of

Arkema expands specialty polymer PEKK capacities in France and USA

rkema is actively developing its new Kepstan® PEKK (PolyEther-Ketone-Ketone) ultra high performance polymer with applications in the fields of carbon fiber composites and 3D printing. Success in these fields has prompted Arkema to increase its production capacities in France now and in the United States in the near future. In order to meet growing demand in carbon fiber composites and in 3D printing, Arkema announces that it is to double its production capacities in

France by H1-2016. The Group plans to build a world scale PEKK production plant on its Mobile site at Alabama that would be scheduled to come on stream in H2-2018. PEKK complements Arkema’s range of thermoplastic resins and broadens their range of applications in the aerospace, energy and electronics sectors, in which Arkema is already highly present through its Rilsan® (PA11) and Kynar® (PVDF) specialty polymers, as well as its Elium® acrylic resins.

Atlanta. The new headquarters in Buford is about 15 miles farther northeast. The company is in the process of building “basically a greenfield facility at that site,” Frankish said. Construction on the Kraiburg TPE facility is scheduled for completion in 2016. The new facility will be customized for more efﬁcient production, including materials and production ﬂow Kraiburg said it expects to add 9,000 square feet by 2018, resulting in a total 74,000-square-foot facility.

Sinopec denies reported plans of a merger with CNPC or CNOOC

hina Petrochemical Corporation (Sinopec Group) has denied reported plans of a merger with China National Petroleum Corporation (CNPC) or China National Offshore Oil Corporation (CNOOC). The Chinese local media had earlier carried reports that government was considering a merger of its stateowned oil and gas companies to cut costs and streamline operations. The Chinese government is now working on structural reform of the oil and gas industry in a bid to transform the country's energy sector. The reform plan will be released as early as H1-2015 and will have signiﬁcant impact on the current oil and gas system.

• March 2015 • Plastics News

COMPANY NEWS

Wacker to build specialty monomers plant in Germany

erman specialty chemical company Wacker Chemie AG is setting up a plant for specialty monomers with an annual capacity of 3,800 metric tonnes at its Burghausen site, Germany, involving investment of around Euro 8 million. The specialty monomers - vinyl neodecanoate and vinyl laurate - are key raw materials for the manufacture of specific dispersible polymer powders. The plant is scheduled for start-up in the second quarter of 2015. This new development allows Wacker to meet increasing demand for high-quality polymeric binders and strengthens its position as the world’s leading manufacturer of dispersible polymer powders. Wacker aims to meet the globally rising demand for its dispersible polymer powders, which is driven by worldwide trends such as urbanisation, renovation and energy efficiency. With the

construction of the new plant for specialty monomers, the company is creating the necessary capacity to independently secure the supply of key raw materials for the manufacture of the powders at its Burghausen site over the long term.The specialty monomers vinyl neodecanoate and vinyl laurate confer special properties on Wacker’s dispersible polymer powders, such as hydrophobicity. “The construction of the new plant for specialty monomers is an important strategic step. It makes us more independent of raw-material price ﬂuctuations and boosts supply security during peakdemand periods. In addition, it strengthens the position of specialty products in our dispersible polymer powder portfolio,” explained Christoph Riemer, head of dispersible polymer powder business at Wacker Polymers.

Rösler opens plant in Pune

erman auxiliary equipment maker Rösler Group has signed a JV with UK-based company called Action Finishing. further Rosler in association with Acton Finishing has opened its second factory in Pune. Accordingly Untermerzbachbased Rösler has a majority stake in the joint venture, which has 26,800 square feet of manufacturing space. The facility will manufacture standard shot blast equipment and rotary vibrators. The company said

Plastics News • March 2015 • 20

that “This is an important strategic step with the goal to successfully compete with Indian low cost equipment suppliers and to gain a dominant market position in India and South-East Asia. The facility will use “German equipment designs and adapt the manufacturing process to the Indian facility including the search for local component suppliers.” The company opened a Bangalore manufacturing plant, Rösler

Huntsman to shut facilities in USA and Germany

untsman has announced plans to close four manufacturing facilities by the end of this year, as part of restructuring of its colour pigments business, as per chemicals-technology.com. Facilities in Cartersville, Georgia; East St. Louis, Illinois; and King of Prussia, Pennsylvania in the US and one plant in Hainhausen, Germany will be shuttered. The plan to restructure colour pigments operations comes after the company previously announced plans to streamline its global pigments and additives business. Huntsman's.As part of the initial phase of restructuring, the company will reduce its workforce by 120, carry out cost reduction initiatives, and centralise its shared services. The proposed restructuring is expected to provide the company with US$20 mln by mid-2016.

SurfaceTech, in 2007 but the Pune plant is larger, Reber said. Pune is a key auto making hub in Western India. Family-controlled Acton, based in Coventry, engages in metal ﬁnishing solutions and manufactures various vibratory and high energy centrifugal ﬁnishing machines.

COMPANY NEWS

Wittmann Battenfeld presses bound for NPE stolen midway Wittmann Battenfeld had to scramble as thieves stole one of its tractortrailer trucks with two injection moulding presses from a locked staging area north of Daytona Beach, Florida, on 12 March,less than two weeks before NPE 2015. According to reports, the thieves broke through the locked security fencing at Borwegen Trucking’s staging lot in Ormond Beach, Florida, in the early morning hours of 12 March. The truck was attached to a sidecurtain trailer one with canvas and not hard sides. They abandoned the trailer along an exit ramp off I-95 south. The trailer sank into soft sand and tipped over, damaging two presses that were bound for Wittmann Battenfeld’s booth at NPE in Orlando, which begins 23 March: A new SmartPower press, slated for introduction at NPE, and an EcoPower

machine. Both were damaged, said David Preusse, president of Wittmann Battenfeld in Torrington, Connecticut, US. However within eight hours, Wittmann Battenfeld in Torrington pulled two other machines from inventory another EcoPower, with 300 tons of clamping force, and a 55-ton EcoPower 55-ton press and got them ready to ship from Connecticut to Orlando. A W832 New Pro Series robot also was on the stolen truck, but it seems to be ﬁne.“I’ve been doing shows for 35 years and this takes the cake,” said Tom Betts, the company’s regional manager for injection molding. He is in Florida helping set up the booth. Betts said police have located the semi-truck. “The truck has been impounded so they can check it for evidence,” he said.

The stolen truck was one of 15 trailer trucks parked in the staging area, ready to haul Wittmann Battenfeld equipment and booth materials to NPE 2015. When the truck driver arrived at the yard the morning of 12 March, he found someone had broken through the fencing and stolen his truck and trailer. “It must’ve happened in the morning hours, overnight. Somebody broke into the gated yard and basically stole it. It was reported to us yesterday morning,” Betts said by telephone 13 March, as he drove to the scene to meet with an insurance adjuster. The Florida Highway Patrol is investigating. No arrests had been made by mid-morning March 13. Betts was working with police, and he was there as crews tipped the trailer back, right-side up.

Solvay and 3A to expand specialty foam production

aterials firm Solvay is working with composites maker 3A Composites to produce specialty foam materials for advanced transportation uses. The alliance will result in 3A adding additional foam extrusion capacity in the US That new capacity is expected to come onstream in 2016, officials with both firms. The aim of the partnership between Brussels-based Solvay and 3A of Horgen, Switzerland, is to make tailored, cost-effective substitutes to traditional materials in order to reduce weight, they added. Initial products will build on Solvay’s Radel-

brand polyphenylene sulﬁde (PPS) foam and “sandwich” materials, which already are in use on Airbus A350 planes and on the Solar Impulse experimental aircraft. The Solar Impulse began its aroundthe-world journey 1 March in Abu Dhabi and is slated to spend the next ﬁve months circling the globe. The material will go far beyond that one solar-powered plane, however. Commercial aircraft and high-speed trains are looking to replace heavier plastics and metal structures with specialty foams, officials said. Lightweighting applications for the

Solvay-3A partnership include cabin parts, ducting and trolleys. The alliance “is a game-changer in making high-tech foams available on a large scale,” says Armin Klesing, business development manager Solvay global aerospace and composites. New materials will allow parts makers both insulation performance and ﬁre resistance, he added. Solvay employs 26,000 worldwide and posted global sales of more than $12bn (€11.2bn) in 2014. 3A employs 2,500 and is a unit of Horgen-based Schweiter Technologies. 3A previously operated as Alcan Composites.

• March 2015 • Plastics News

COMPANY NEWS

AdePlast eyes higher sales and IPO

omanian construction materials manufacturer AdePlast is aiming to increase its sales by 5% this year. In 2014, the company reported revenues of LEU 300m (€67.5m). Other plans by the manufacturer, whose product portfolio includes expandable polystyrene (EPS), include launching its initial public offering on the Bucharest Stock Exchange (BSE), reports local business daily Ziarul Financiar. The optimistic forecast by the company is supported by the fact that, in the ﬁrst two months of 2015, AdePlast managed to improve its sales by close to 28% compared with a year earlier. In addition to its production facility in Ploieti, where the manufacturer

is also headquartered, AdePlast operates factories located in Oradea and Roman, both in Romania.Owing to last year’s investments carried out at the plants, the producer has an aggregate output capacity of about 2.3 million tonnes of EPS per year, according to figures released by the Romanian firm. AdePlast says it exports its products to Ukraine, Moldova, and various countries in the Middle East. The Ploieti-based company is controlled by local businessman Marcel Bărbu, who also serves as AdePlast's chief executive, who holds a stake of 99.99% in the firm.The planned IPO will be the firm's second attempt at entering the stock market, following its failed effort from late 2013.

Izotec forecasts 50% rise in PVC window exports

omanian PVC window and door maker Izotec Group has announced plans to significantly expand its exports to Western Europe in 2015, following the release of the company’s improved financial results for last year. “The development of our exports department is a natural consequence of the higher demand [for our products] coming from Italy, France, Germany, the Netherlands and Belgium,” said Ciprian Chelariu, one of the ﬁrm’s coowners. “We believe that this year, we will post a 50% increase in export sales [compared with last year].” Izotec Group operates a production facility in Săvineşti, in Romania’s

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north-eastern province of Neamţ. The plant is fitted with an output capacity of about 1,000 units per day. To date, Izotec Group has invested a total of €6m in expanding and overhauling its production capacity in Săvineşti, company representatives say. For 2015, Izotec Group is currently forecasting sales of about €7m, according to data released by the firm. Last year, the Romanian producer exported close to €600,000 worth of PVC windows and doors, with the majority of its output intended for Western European markets. The firm is controlled by local businessmen Sorin Sirbu and Ciprian Chelariu.

Röchling to expand Czech plastic car parts plant

erman plastic car parts maker Röchling is aiming to expand its production facility in Kopřivnice, the Czech Republic. According to the company the move will allow the firm to increase the factory’s output capacity and take on new workers. The plant is located in the Kopřivnice-Vlčovice industrial park, in the country's eastern part, and it was launched in the year 2006. The comapny says that the construction work will begin in May 2015, and they are to be completed in January 2016. Röchling Automotive Kopřivnice intends to expand its plant. The favourable situation of the company demands an increase in production capacities, according to the Czech municipality. To carry out the investment, the German company will add two new production halls, ﬁtted with a ﬂoorspace of 2,200 square metres and 3,900 square metres, respectively, to the plant. The project is to create 85 new jobs at the factory in Kopřivnice which is currently operated by a workforce of 75. Röchling makes various plastic components for car makers, including GM, Ford, Nissan, Mercedes-Benz, BMW, Škoda and Subaru.

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Union Budget 2015

he fiscal budget was announced on February 2015. We are carrying the details for our members Fiscal Policy Strategy Statement A. Fiscal Policy Review 1. The General budget 2014-15 was presented against the background of sub five per cent growth rate in the earlier years. In the current year, there has been marked improvement on the major macroeconomic indicators, as enumerated in the Macroeconomic Framework Statement. The assumptions underlying the Statements have since been confirmed by release of advance estimates on GDP growth by CSO. As per the revised series based on constant (2011-12) market prices, the growth rate improved from 5.1 per cent in 2012-13 to 6.9 per cent in 201314. Economy is poised to record a growth rate of 7.4per cent in the current financial year, on the back of new optimism and decisive policy environment. 2. The recovery of growth in the current financial year has been outcome of slew of economic reform measures initiated by the government. The market is enthused with new optimism against the backdrop of swift policy action to mop up economic activities. Key initiatives taken in the current financial year include rationalization of administered pricing policies in petroleum and natural gas, removing bottlenecks in the land acquisition and to

ensure adequate availability of key inputs like coal and power. The growth agenda of the Government centered on revival of the manufacturing sector, with focus on the “Make in India” initiative, accompanied by liberalization of foreign direct investment, a large array of investment facilitation measures and steps to improve savings. The ﬁnancial inclusion initiative under the Pradhan Mantri Jan Dhan Yojana (PMJDY), extending financial services to the large hitherto un-served population of the country to unlock growth potential has been successful. Government pursued key policy and legislative reforms in 201415. Substantive progress has been made in direct beneﬁt transfer, linked to Aadhar. The approach is to achieve better targeting and delivery mechanism under subsidies. 3. The revival in the economy has been accompanied by favourable external environment. Easing of international crude oil prices helped in containing subsidies bill which has been reduced at the revised estimates stage, reversal of trend from last couple of years. Similarly, active policy intervention helped in containing current account deficit within manageable limits. Inflation, which remained sticky for last several years, began to ease showing signs of softening. Thus, there was overall upbeat sentiment in the market. The

performance has been better than expected and India is poised to be one of few countries to improve upon the growth assessment. Government has taken steps towards strengthening cooperative federalism by replacing Planning Commission with NITI Ayog. The approach to Planning, following independence had been to provide growth impetus through central planning and a top-down approach. However, over the years with development functions being institutionalized in States, there has been growing clamour to dismantle the topdown approach with attendant one-sizefit-all kind of rigid formulation. In the new age, States aspire to build upon their strengths, to make own development strategy based on local needs and aspirations. Accordingly, there was need to streamline the structure of central planning incorporating these changes. NITI Ayog provides the necessary mechanism for institutionalizing the principles of cooperative federalism, reflecting the aspirations of the States. Going forward, there will be concomitant changes in the centre-state fiscal relations, with States taking the lead and centre providing enabling environment. 4. The revival of growth in the current financial year brought back the debate on fiscal consolidation to the centre stage. The present phase of fiscal consolidation, adopted in 2012-13 has spanned out in period which has witnessed

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lower tax buoyancy. Thus, the consolidation has relied on the expenditure management. However, with economy poised for cyclical upturn, it has been argued that public spending needs to be stepped up in core sectors to tap the growth potential. While, there is general consensus that there should be check on the revenue spending, especially items like subsidies in a benign environment, the spending on capital side needs to be augmented. In the current financial year Government has maintained the deficit target, despite there being pressure on the tax revenues as also from the disinvestment side. With easing of international crude oil prices, the pressure on subsidies was lower, which provided an opportunity to introduce reforms on fuel pricing. Austerity measures to contain establishment costs and other Non-plan expenditure along with rationalization of Plan expenditure helped in meeting the Fiscal targets. 5. While, the path of fiscal consolidation has been adhered to in 2014-15, the budget 2015-16 has adopted a fiscal deficit target of 3.9 per cent. This shows a deviation from the roadmap which required deficit target to be maintained at 3.6 per cent. Following change in the transfer of resources to States, following the Fourteenth Finance Commission (FFC) award discussed at length in later sections, Government adopted a deviation from the FRBM regime in vogue. It is pertinent, however, to note that the fiscal deficit target

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has been kept range bound i.e. under 4 per cent while deviating from the announced roadmap. B. Fiscal Policy for 2015-16 Fourteenth Finance Commission 6. The Budget 2015-16 is being presented as the ﬁrst year of the FFC award period. The explanatory memorandum as to the action taken on the recommendations alone with the report of the FFChas been presented in the Parliament. After conducting extensive consultations with the States and the Centre, FFC has recommended for greater share of devolution to the States, replacing the transfers through Plan schemes. With a steep jump in States’ share of taxes from 32 per cent to 42 per cent of the gross tax revenue, divisible pool, in nominal terms this amounts to increase in states’ share by more than 1.5 lakh crores. Additionally, local bodies and revenue deﬁcit grants has also been increased. Thus, from FY 2015-16 the resources available at the disposal of States’ will be substantially higher. The central theme of the FFC recommendation is based on the fact that States’ have graduated in to designing and implementing development programmes based on local conditions. The emerging consensus is that Centre should partner with States under the new paradigm, playing a supportive role as an enabler rather than executing schemes from the front. As discussed above, the Government had initiated actions in the spirit of Cooperative federalism even before the

recommendations of FFC. Thus, FFC formalises the efforts in letter which was underway in spirit. 7. The fiscal policy of 2015-16 has been calibrated with two fold objectives – first, to aid economy in growth revival; and second, to institutionalize the co-operative federal structure in light of emerging views on the Centre-State fiscal relations. While, allocations in the social and welfare sectors have been protected, it is expected that the States’ will be bringing in greater share to give fillip to government spending in these sectors. Under the Central Plan, which falls under the exclusive domain of the Centre, allocation has been increased in the Capital spending. Similarly, higher allocations have been made to core sectors of infrastructure which have the potential to give impetus to manufacturing and job creation. It is noteworthy that allocations in social and welfare sectors such as Education, Social Justice, Tribal Welfare, Minorities Affairs etc. has been retained or increased, while reducing the central share with respect to some of the schemes. In respect of some of the schemes /programmes, the centre-state funding pattern is being modified in view of the larger devolution of tax resources to States as per the recommendations of the 14th Finance Commission; whereby in these sectors, the revenue expenditure is to be borne by the states. Subsequent to the changed funding pattern, overall expenditure on the programme will not decrease. In certain other

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cases, the schemes /programmes are being discontinued as centrally sponsored schemes. States may decide to continue (or not) with these schemes / programmes out of their increased resources resulting from the recommendations of the 14th Finance Commission.

However, with higher potential under this item already realized, Budget 2015-16 provides for marginal increase of 1.8 per cent over RE 2014-15. Thus, total revenue receipts of the Centre remains stagnant, with marginal increase of 1.4 per cent over RE 2014-15.

8. Apart from containing growth in expenditure, the reduction in fiscal deficit is planned to be achieved in conjunction with targeted revenue augmentation both through tax and non-tax revenues. In FY 2013-14, Tax to GDP stood at 10.0 per cent of GDP. Tax to GDP ratio of 10.6 per cent was targeted in BE 2014-15. However, in RE 2014-15, Tax-GDP ratio has been revised to 9.9 per cent, a growth of 9.9 per cent over the gross tax revenues in 2013-14. Despite the growth rate improving in the current ﬁnancial year, easing of inﬂation implied lower growth in nominal terms. Thus, tax revenues continued to be lower than the budgeted level. Accordingly, Budget 201516 provides for a realistic growth of 15.8 per cent over RE 2014-15, with tax-GDP ratio at 10.3 per cent. With higher devolution to States, following FFC award, Tax revenue of the centre shows marginal improvement over RE 2014-15, about 1.3 per cent, despite the growth on gross taxes. Non-tax revenue has witnessed higher growth in last few years due to higher dividend payment from PSUs and Banks, higher dividend paid by RBI and increase in estimates of Spectrum charges.

9. Given the resource constraint explained above on the revenue side, only option to raise additional resources remains through borrowing. The debate on easing fiscal deficit roadmap had been argued to give boost to public spending in the core sectors of the economy. However, attempt to raise higher resources from the market has to be viewed in the larger monetary policy context. Easing of inflationary pressure and credible steps to reign in the fiscal deficit has provided the manoeuvring space to the monetary authority to lower interest rates, a long standing expectation in the economy. Higher Government borrowing will adversely impact private investment and make it difficult for reduction of interest rates. This would adversely affect the revival of growth, which has just started to show positive signs. Therefore, government has decided to continue with the fiscal consolidation phase, albeit with slight modification. Budget 2015-16 has adopted fiscal deficit target of 3.9 per cent, lower than the 4.1 per cent target in FY 2014-15. However, it is pertinent to note that the fiscal deficit target represents a

deviation from the target adopted under the revised roadmap for fiscal consolidation. Despite the deviation, Government has continued on the path of fiscal consolidation keeping the deficit range bound. Necessary changes in the Rules will be introduced. 10. Due to resource base of the centre shrinking, following higher sharing of taxes and declining deficit, there was need to contain the Non-Plan spending to provide reasonable Plan outlay. The NonPlan expenditure in budget 201516 provides 8.2 per cent increase over the RE 2014-15, as compared to average growth of 11.1 per cent in last five years (from 2010-11 to RE 2014-15). Thus, despite shrinking resource base, the Budget 2015-16 provides for Plan at the RE level nominally, with marginal decrease of 0.6 per cent. Overall, the budget size increases by 5.7 per cent in BE 2015-16 over RE 2014-15, with fiscal deficit at 3.9 per cent of GDP, lower than 4.1 per cent in FY 2014-15. As percentage of GDP, total expenditure is estimated to be 12.6 per cent in BE 2015-16 as against 13.3 per cent in RE 201415. Tax Policy 11. During the fiscal consolidation period, the tax-GDP ratio improved significantly from 9.2 per cent in 2003-04 to 11.9 per cent in 2007-08. This has been achieved through rationalization of the tax structure (moderate levels and a few rates), widening of the tax base, and reduction in compliance costs through improvement in tax

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administration. The extensive adoption of information technology solutions and reengineering of business processes has also fostered a less intrusive tax system and encouraged voluntary compliance. These measures resulted in increased buoyancy in tax revenues till 2007-08 and helped in achieving fiscal consolidation through revenue measures alone. Due to the stimulus measures undertaken largely on the tax side during the global economic crisis in 2008-09 and 2009-10, as a measure to insulate Indian economy from the adverse impacts of global economic crisis and slowdown in domestic growth, the gross tax revenue as percentage of GDP declined sharply to 9.6 per cent in 2009-10. 12. Further, due to high international prices and as a measure to insulate consumers and to reduce under recoveries government had to further reduce taxes/ duty on petroleum products in 2011-12. As a result the gross tax receipts as percentage of GDP in 2011-12 declined to 10.1

per cent from 10.2 per cent in 2010-11. With partial roll back of stimulus measures in indirect taxes and additional revenue measures, it was estimated that tax receipt as percentage of GDP would improve to 10.9 per cent in 2013-14. However, global uncertainties and exchange rate volatility and growth rate lower than expectations in 2013-14, the actuals tax-GDP ratio stood at 10.0 per cent. Tax buoyancy has come down to below one, implying thereby that tax collection has failed to keep pace with the growth in GDP. This is more pronounced in case of Indirect taxes than in Direct tax collection. Continuing forward on the path of ﬁscal consolidation with a view to narrow the gap in government spending and resources, the taxGDP ratio was targeted at 10.6 per cent in the BE 2014-15 with a growth rate of 19.8 per cent over provisional actuals of 201314. In RE 2014-15, after realistic assessment, tax-GDP ratio has been revised at 9.9 per cent which indicates a growth of 9.9 per cent in gross tax receipts over 2013-14.

For FY 2015-16 gross tax revenues are estimated to grow at 15.8 per cent over the gross-tax revenues during 2013-14 taking tax-GDP ratio at 10.3 per cent. Indirect Taxes 13. The performance of key industrial sectors based on the Index of Industrial Production (IIP) reveals the reversal in trends of industrial production in 2014-15, which had slowed down since 2011-12. The revival of manufacturing sector has been unleashed in the “Make-in-India” initiative accompanied with several other initiatives of the Government. The growth momentum is likely to be continued in FY 2015-16 as well. Turnaround in economic activity expected in FY 201516 with the improvement in industrial, manufacturing and service industry, growth in exports and expectation of recovery of growth rate will provide a scope for achieving the budget targets in FY 2015-16 14. In the medium term, the most signiﬁcant step from the point of view of broadening the tax base

Highlights of Union Budget 2015-16 for Plastics Industry The proposals in the Union Budget 2015-16 pertaining to the Plastic Industry are: * Basic Customs Duty on ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) is being reduced from 2.5% to 2%. * Basic Customs Duty on butyl acrylate is being reduced from 7.5% to 5%. * Special Additional Duty on naphtha, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene monomer (SM) for manufacture of excisable goods is being reduced from 4% to 2%. * Excise duty on sacks and bags of polymers of ethylene, other than for industrial use, is being increased to 15%

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and improving revenue efficiency through better compliance is the introduction of Goods and Services Tax (GST). As far as Central taxes viz. Central Excise duties and Service Tax are concerned, a fair amount of integration has already been achieved, especially through the cross-flow of credits across the two taxes. It would be possible to realize full integration of the taxation of goods and services only when the State VAT is also subsumed and a full-fledged GST is launched. As a preparation for introduction of Goods and Service Tax (GST), Government has been taking consistent policy steps to expand the scope of service tax. To broaden the tax base, negative list approach to taxation of services was introduced with effect from 1st July, 2012. Negative List of Services and service tax exemptions were reviewed for broadening the tax base and also as a preparation for introduction of GST, in the following manner: (i) The Following services have been brought under the tax net,• Online and mobile advertising; • Services provided by radio taxis or radio cabs. (ii) The service tax exemption on the following services has been withdrawn,• Clinical research on human participants; • Services provided by airconditioned contract carriages

(iii) Scope of some of the existing exemption was rationalized. 15. T h e r e a r e s e v e r a l s p e c i f i c proposals in the Budget 201516 to recalibrate the tax effort on indirect taxes so that ﬁscal consolidation may be achieved in the short term. The important and revenue signiﬁcant proposals include: • Basic Customs Duty on metallurgical coke is being increased from 2.5% to 5% • Basic customs duty on Commercial Vehicles is being increased from 10% to 20%. • Excise duty of 2% without CENVAT credit or 6% with CENVAT credit is being levied on condensed milk put up in unit containers • Excise duty of 2% without CENVAT credit or 6% with CENVAT credit is being levied on peanut butter. • Excise duty structure of NIL without credit or 12.5% with credit is being prescribed for solar water heater and systems.

• Maximum speed of packing machine is being specified as a factor relevant to production for determining excise duty payable under the Compounded Levy Scheme presently applicable to pan masala, gutkha and chewing tobacco. Accordingly, deemed production and duty payable per machine per month are being notified with reference to the speed range in which the maximum speed of a packing machine falls. • In Service Tax, rate is being increased from 12% plus education cesses to 14%. Further some of the Negative List entries are being pruned, and some exemptions are being withdrawn. 16. The underlying theme of the indirect tax policy during the year is to boost domestic manufacture, to bring about clarity in tax laws, stability in duty rates & rationalization of duty structure. Direct Taxes:

• Clean Energy Cess levied on coal, lignite and peat is being increased from Rs.100 per tonne to Rs.200 per tonne.

17. The Government policy on direct taxes has been to achieve growth in direct taxes by broadening the tax base while maintaining a regime of moderate tax rates. Tax collection is the product of two factors- tax rates and tax base. There will be no change in the rate of personal income tax and the rate of tax for companies in respect of income earned in the ﬁnancial year 2015-16.

• Excise duty on cigarettes is being increased by 25% for cigarettes of length not exceeding 65 mm and by 15% for cigarettes of other lengths. Similar increases are proposed on cigars, cheroots and cigarillos.

18. It is proposed to levy surcharge @ 12 per cent on individuals, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies and local authorities having income exceeding

• Excise duty structure for mobile handsets, including cellular phones, is being changed from 1% without credit or 6% with credit to 1% without credit or 12.5% with credit.

• March 2015 • Plastics News

FEATURES `1 crore. Surcharge in case of domestic companies having income exceeding ` 1 crore and up to ` 10 crore is proposed to be levied @ 7 per cent and surcharge of @ 12 per cent is proposed to be levied on domestic companies having income exceeding ` 10 crore. The rate of surcharge in the case of foreign companies will continue to be the same as in last year. 19. The widening of tax base to achieve growth in tax collection is a continuous process which involves both legislative as well as administrative measures. The major policy proposals, intended to broaden the tax base and augment revenue, in the Union Budget 2015-16 are as under:• It is proposed to provide for chargeability of interest paid by a permanent establishment (PE) or a branch of foreign bank in India to its Head ofﬁce and other overseas branches under the source rule of taxation and for treating the PE or branch as a taxable entity for computation of income and for purpose of levy of tax and TDS • It is proposed to provide for penalty on advance taken / repaid in cash above ` 20,000/- for immovable property transactions. • It is proposed to enable the Central Government / CBDT to capture information regarding prescribed foreign remittances to ensure proper taxation of such payments. The administrative and technological initiatives to augment revenue are as under:-

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• A non-adversarial and nonintrusive tax regime to enhance ease of doing business is being promoted through modernisation of the business processes of tax administration. Extensive use of information technology is being made for e-enablement of tax payer services. Filling of income tax returns, various forms, audit reports, statements of tax deduction at source have been made compatible with electronic filling and computerised processing. • The two measures i.e. Centralised Processing Center for incometax returns at Bangaluru and Centralised Processing Centre – TDS at Vaishali Ghaziabad have enabled tax administration to function in a more efficient and automated environment and reduce the compliance burden on the tax payers. Centralised processing of returns enables the tax administration to track stop filers, non-filers, non-payment of taxes etc. which helps in widening of the tax base. • Data warehouse and business intelligence project has been undertaken for developing a comprehensive platform for effective utilisation of information to enhance voluntary compliance and deter non-compliance. 20. There has been significant growth in the direct tax collection during the year 2013-14. Tax buoyancy for direct taxes has increased from 1.07 in financial year 201213 to 1.17 in financial year 201314. This shows that growth in direct tax collection has exceeded the nominal growth in GDP. The

personal income tax has shown a higher growth as compared to the corporate income tax. The personal income tax increased by 20.56 per cent whereas the corporate income tax showed a growth of 10.76 per cent. Though there has been an increase in corporate income tax in terms of percentage in financial year 2013-14, the buoyancy remains less than one. The reason for buoyancy to be less than one in corporate income tax is that the profitability of the business and trade has diminished due to higher component of inflation in nominal GDP growth rate. These factors of inflation do not affect wages which mainly contribute to personal income tax collection. Contingent and other Liabilities 21. In terms of Article 292 of the Constitution, Central Government gives guarantees for the repayment of borrowings upon the security of the Consolidated Fund of India. The FRBM Act mandates the Central Government to specify the annual target for assuming contingent liabilities in the form of guarantees. Accordingly, FRBM Rules prescribe a ceiling of 0.5 per cent of GDP for incremental guarantees that the Government can assume in a particular financial year. The Central Government extends guarantees primarily for the purpose of improving viability of projects or activities undertaken by the Government entities with significant social and economic benefits, to lower the cost of borrowing as well as to fulfil the requirement in

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cases where sovereign guarantee is a precondition for bilateral/ multilateral assistance. As the statutory corporations, government companies, cooperative institutions, ﬁnancial institutions, autonomous bodies and authorities are distinct legal entities, they are responsible for their debts. In the process of guaranteeing their financial obligations the Government has the commitment to assess the fulfilment of such obligations and adequately disclose them. The disclosure is being made by the Government as per statutory requirements decided on the advice of Comptroller and Auditor General. 22. For better management of contingent liabilities, Government guarantee policy enumerates various principles which need to be followed before new contingent liabilities in the form of Sovereign Guarantees are undertaken. As guarantees extended by Government have the risk of its devolution on Government, the proposals are examined in the manner of a loan being taken directly by the Government. The principles enunciated in the policy lay down framework for minimization of risk exposure of sovereign while undertaking these contingent liabilities. The principles include assessment of risk including the probability of a future payout, priority of the activity, institutional limits on guarantee for limiting exposure towards select sectors and reviewing the

requirement of guarantee vis-a-vis other forms of budgetary support or comfort. Additional measures to further streamline the process of assuming risk could include charging of risk based premia disincentive for wilful default, other part sharing of risk by the Government and insisting on guaranteed debt cost to be near the bench marked Government Securities rate. 23. The Stock of contingent liabilities in the form of guarantees given by government has increased in absolute terms from ` 1,07,957 crore at the beginning of the FRBM Act regime in 2004-05 to ` 2,49,503 crore at the end of 2013-14. FRBM ceiling on guarantees which can be assumed by Government during a F.Y. has resulted in reduced contingent liability to GDP ratio. Ratio which stood at 3.3 per cent in 2004-05 is now reduced to 2.2 per cent in 2013-14. The disclosure statement on outstanding Guarantees as prescribed in FRBM Rules, 2004 is appended in the Receipt Budget at Annex 5(iii). During the year 2013-14, net accretion to the stock of guarantees was ` 12,972 crore, amounting to 0.11 per cent of GDP, which is within the limit of 0.5 percent set under the FRBM Rules. 24. Government is also assuming liabilities for ﬁnancing its activities by entering into annuity projects in respect to some infrastructure development activities. The commitments so made in these projects will occupy the fiscal space for future Governments and

due care needs to be exercised in assuming these liabilities for the sake of intergenerational equity. As part of amended FRBM Rules, Government discloses its commitment liabilities towards such projects including project costs and annual pay-outs under the annuity projects. These commitments on account of ongoing Annuity Projects under Ministries / Departments are disclosed in the prescribed format in Receipts Budget at Annexure-8. The annuity projects contracted by Government have a total committed value of ` 1,00,071.78 crore with annual payment of ` 6,440.29 crore. Government Borrowings, Lending and Investments 25. Status Paper on Government Debt is published annually to improve transparency in dissemination of information related to public debt. The fourth edition of the document was published in December, 2014. Prudent debt management is corner stone of good economic policy and experience in other part of the world has shown that vulnerability of debt proﬁle to international shocks needs to be closely monitored in emerging global economic order. In India, debt policy is driven by the principle of gradual reduction of public debt to GDP ratio so as to further reduce debt servicing risk and create ﬁscal space for other/developmental expenditure. The debt policy in India emphasizes maintaining a stable, sustainable, low cost and prudent debt structure. Indian

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debt proﬁle is characterized by reliance on domestic borrowings, with market determined rates rather than administered rates. Development of deep and wide secondary market for Government securities is one of the key reforms in this regard. While government is in process of introducing necessary legislation and setting up its own Public Debt Management Agency (PDMA), Middle Office has been established in the interlude, towards this end. The major focus of Middle Ofﬁce is on skill building and developing expertise required for a fully functional debt management office. The office is assisting government in issuance of calendar for borrowing through G-securities, advice on selection of instruments and other related matters. Making further progress toward transparency and dissemination of information, Government began publishing a Handbook of Statistics on the Central Government Debt in November 2013, which is being updated on annual basis. 26. One of the key features on country’s debt profile is diminishing proportion of external debt as percentage of total borrowing, which amounts to 8.3 per cent of Central Government’s total liabilities, and 5.0 percent of general government debt as on March 31, 2014. External borrowing is limited to multilateral/ bilateral loans from select development partners for financing development projects and, thus, not exposed

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to reversal of capital flows. Loans from multilateral institutions constituted significant portion (71.7 per cent) of external debt at end- March 2014, which are largely on concessional terms. The external funding has increased from ` 5,734 crore in BE 201415 to ` 9705 crore in RE 201415, resulting in increase of net financing. The BE 2015-16 for external debt is also kept higher at ` 11,173 crore. A greater dependence on domestic debt and a lower share of external debt in the total debt insulates the debt portfolio of the Government from volatility in international capital markets. This also minimises currency risk and has less significant impact on BoP. Low interest rates in the international financial markets in recent past suggested that it may be beneficial to borrow from international financial market. Further, gradual decline in net inflow from Multilateral Institutions in the coming years also gives government an option of exploring other sources of external debt, for example in the form of sovereign bond issuance, to maintain a reasonable mix of domestic and external debt in its portfolio. The decision to issue foreign currency denominated sovereign bonds, however, cannot be based on relative cost alone. The need to access international capital markets should be justified in the context of overall savings and investment requirements of the economy. Therefore, decision to issue sovereign bonds would require establishing a regular and

predictable schedule of issuance leading to a build-up of interest and redemption payments and, thus, balance of payments (BoP) implications of external borrowing should also be appreciated. 27. Developing a liquid and vibrant secondary market for government securities and broadening the investor base are the key factors to ensure that debt is raised in a cost effective manner. The initiatives to develop market are undertaken in close coordination with the Reserve Bank of India. Primary issuance strategy of the Government remains focussed on issuing new securities under benchmark maturities and building volumes under existing securities to improve liquidity in the secondary market, with internal ceilings on outstanding amount of individual securities to manage liquidity risk of the government. During 2014-15, six new securities worth ` 30,000 crore were issued constituting 10.3 per cent of total issuances during the year, implying that 89.7 per cent issuances were in terms of re-issues. Broadening of investor base is another key factor in the stability of demand for government securities. 28. Apart from greater focus on market borrowings, the Government is also moving toward alignment of administered interest rates with the market rates. Interest rates on small savings are now linked with yields in secondary market for dated securities. The interest rates for every ﬁnancial year are notified before 1st

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April. Collections under various small saving schemes, net of withdrawals, during the financial year form the source of funds for National Small Savings Fund (NSSF). The net collection is invested in Central and State Government Securities as per the recommendation of the Committee on Small Savings c o n s t i t u t e d i n J u l y, 2 0 1 0 . Redemption of these securities is reinvested in Central and State Government Securities in 50:50 ratio at prevailing rate of interest. States are provided excess interest relief based on their compliance with fiscal targets in respective FRBM Act. Interest payment to subscribers and cost of management constitute the expenditure under the fund and interest on Central and State Government Securities forms the income of the fund. 29. In 2014-15, net market borrowings at ` 4,61,205 crore were budgeted to finance 86.8 per cent of gross fiscal deficit. Other sources of financing such as external assistance, state provident funds and National Small Savings Fund (NSSF) were budgeted to finance the remaining 13.2 per cent of GFD. During 2014-15, the net inflow in the small savings account is expected to increase substantially as compared to previous years, pointer to better retail savings. The rollover risk in the Government debt portfolio continues to be low with weighted average maturity of outstanding dated securities, close to 10.2 years as on date, which is high compared to international

standards. Furthermore, the share of short-term debt in outstanding dated securities at end-December 2014 was around 4.6 per cent and debt maturing in next 5 years was around 26.5 per cent of total outstanding dated securities, indicating a low level of rollover risks. Notwithstanding a low rollover risk, the Government is continuing its efforts to elongate the maturity proﬁle of its debt portfolio. During the 2014-15, weighted average maturity of primary issuance of issuance was raised to 14.66 years from 14.28 years in the previous year. Noticeably, the increase in weighted average maturity was achieved without substantial increase borrowings costs. The weighted average yields of primary issuance during 2014-15 saw only marginal increase to 8.51 per cent from 8.48 per cent in the previous year. The increased maturity of primary issuances without a substantial increase in borrowings cost reﬂects the greater demand for longer tenor securities by insurance companies and provident funds which will continue to support the Government efforts to elongate its maturity profile in medium term. During 2014-15, there were devolvement in 4 issuances of G-securities worth ` 5,271crore as against devolvement in 26 issuances worth ` 17,451 crore in 2013-14, indicating a less volatile and stable G-Sec market in 2014-15. 30. Pursuing with Government’s commitment to carry on with the fiscal consolidation measures,

the fiscal deficit for 2015-16 is budgeted to decline to 3.9 per cent of GDP. Total borrowings requirement for 2015-16 has been budgeted at ` 5,55,649 crores. Net market borrowings (adjusted for repurchases/ switches in201516) of ` 4,56,405 crore has been budgeted to finance 82.1 per cent of gross fiscal deficit. The net market borrowing projection shows an increase of 2.1 per cent over the previous year. In terms of GDP, however, net market borrowings are budgeted to decline to 3.2 per cent as compared with 3.5 per cent in the previous year. Borrowings under other sources of financing are budgeted at 17.9 per cent during 2015-16. In terms of debt financing, the borrowings strategy during 2015-16 will continue to rely on domestic sources with external sources financing only 2.0 per cent of the fiscal deficit. Nearly, 98 per cent of GFD of ` 5,55,649 crore would be financed from the domestic sources. Borrowing strategy will continue its focus on raising resources through on market oriented instruments to meet both the short-term and medium term borrowings requirements of the Government. 31. Apart from ` 6,00,000 crore proposed to be raised through dated securities, a provision of ` 30,063 crore is also made to be realised through treasury bills. In addition to providing a greater manoeuvrability for cash management, treasury bills also provide benchmark and momentum to trading activity

• March 2015 • Plastics News

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in the money market therefore facilitating the financial and corporate sector in meeting their short-term cash requirements. In addition, Small Savings, State Provident Fund and other receipts from Public Account would finance remaining portion of the deficit. There was no balance estimated at the end of financial year 201415 under Market Stabilization Scheme (MSS). Net accretion in MSS to the tune of ` 20,000 crore is however estimated in BE 201516. 32. In view of redemption pressures in coming years, particularly during 2015-16 to 2017-18, the Government in coordination with Reserve Bank made progress since 2013-14 in putting in place an active debt management strategy in the form of buyback as well as switching of securities, with an objective to manage its debt portfolio, improving liquidity in securities, reducing roll over risk as well as utilizing the cash surplus. During 2013-14, the switching / buyback operations were undertaken whereby the securities worth about ` 31,000 crore maturing in 201415 and 2015-16 were switched for longer tenor securities and securities worth ` 15,590 crore maturing in 2013-14 were bought back towards end of FY 201314. Continuing further with this debt management strategy, ` 50,000 crore was budgeted in FY 2014-15. Thus far in the current financial year ` 30,602 crore worth of dated securities have been switched and ` 6,283 crores have

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been bought back. To prematurely redeem the Government Stocks by utilizing surplus cash balances, repurchases (buyback) of government securities (G-Sec) worth ` 18,805 crore were carried out during September 2014 for securities maturing in FY 201415 and FY 2015-16. An amount of ` 12,522 crore worth G-Sec of this repurchase amount was maturing during current year and has already matured. An amount of ` 6,283 crore worth G-Sec will mature in FY.201516. Buyback of the debt serves twin purposes of effective cash management and smoothening of maturity proﬁle. It is expected that Switching / Buy-backs will ease redemption pressure in the initial part of ensuing financial year. Moreover, with redemption pressure rising over next three ﬁnancial years, active debt management synchronized with cash management will help in managing redemptions with optimal costs. Therefore, in FY 2015-16 further provision of ` 50,000 crores has been made to undertake buyback / switch operation of shorter tenor G-securities with longer tenors G-securities. 33. Cash management framework is an essential ingredient of the overall debt management strategy. Government is moving toward a market based cash framework with reduced dependence on the central bank. With the introduction of Cash Management Bills in 2010-11, cash deficit requirements are now largely

managed through the market. Initiatives in Public Expenditure Management Expenditure Commission:

Management

34. While Government has managed to control the expenditure through rationalization in the fiscal consolidation phase, quality of expenditure remains an area that needs to be addressed. The ongoing fiscal consolidation has been successful in taming the fiscal deficit; however the public finance on the revenue side requires attention in the view of accomplishment of target set for the revenue deficit and effective revenue deficit under the new FRBM regime. This entails structural changes in the Plan spending and definitive measures to contain Non-Plan spending within sustainable limits. 35. The Government has recognised the need for reviving the major areas of Central Government expenditure and to look into the ways for creating fiscal space required to meet developmental expenditure needs, without compromising the commitment to fiscal discipline. The need has been felt to increase the allocative efficiencies of the government expenditure and to improve operational efficiency of expenditures through focus on utilization, targets and outcomes. Further, measures are required to achieve reduction in financial costs through better Cash Management System, to make greater use of IT tools for expenditure

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management and to improve the ﬁnancial reporting system. In the view of this, Government has constituted Expenditure Management Commission (EMC) and the concerns as pointed out above finds the place in the Terms of Reference of EMC. The Expenditure Management Commission has submitted its interim report to the Finance M i n i s t e r i n J a n u a r y, 2 0 1 5 . The interim report includes various suggestions to improve Expenditure Management of the Central Governmnet. Expansion of Direct Benefit Transfer: 36.

DBT is a major reform process where cash/benefits are transferred directly in the bank accounts of beneficiaries, preferably Aadhaar seeded, cutting several layers in the delivery process. It envisages achieving accurate targeting of beneficiaries, deduplication and reduction of fraud, efficiency in delivery process, ensuring greater inclusion, elimination of waste, curbing leakage thereby controlling expenditure and greater accountability and transparency. Savings can accrue due to de duplication and reduction in Administrative cost in transfer of benefits which can be ploughed back for greater outreach to all the intended and eligible beneficiaries of the Schemes. DBT is operational in 27 Schemes in 121 selected districts since 1.1.2013 and efforts were on to expand it both geographically and by bringing new schemes, where cash/benefits are provided

to individual beneficiaries in their bank accounts. In December, 2014, it has been decided: i. To expand DBT beyond the 121 selected DBT districts, across the entire country. This will increase the no. of beneficiaries to about 5.5 crore and ensure 17,777 crore annually to flow through DBT platform. ii. To include 7 new Scholarship Schemes of Department of Higher Education, Ministry of HRD on DBT, across the entire country iii. Rollout of MGNREGS on DBT platform in 300 districts with higher Aadhar enrollment. This will ensure flow of fund to the tune of ` 15, 000 Cr per annum on DBT platform and will affect 4.3crore beneficiaries. Thus the total number of beneficiaries under 35 DBT schemes will grow from the present about 1.0 crore to about 10 crore and about ` 33,000 crore per annum will flow on the DBT platform across the country. Out of 35 DBT schemes approved for expansion across the country, 32 schemes are currently under implementation and total number of beneficiaries under DBT in 2014-15, are approximately 7.6 crore. 37. Ministry of Skill Development and Entrepreneurship has been requested to submit a comprehensive plan regarding 73 Skill development Schemes running across sectors and implemented through 22 Ministries on DBT. Centrally Sponsored Schemes and Central Sector Schemes are being examined

and concerned Ministries will be consulted before they can be on boarded on DBT platform from the year 2015-16.There are about 39 lakh Para workers like ASHA workers, Para teachers etc in the country getting monthly stipend as cash. The DBT platform may be adopted for making payment to bank accounts of beneficiaries. States were requested to adopt DBT architecture in State run schemes where cash is provided to individual beneficiaries. 38. The Government has launched a scheme for direct transfer of LPG subsidy to consumers across 54 districts on 14.11.2014. The scheme is named as ‘PAHAL’. From 1st January, 2015, the scheme has been rolled out across the entire country. It will benefit over 15 crore LPG consumers and will be the largest direct cash transfer scheme in the world. Life Insurance Corporation of India has laid the systems and procedures for crediting of benefits under Aam Admi Bima Yojana (AABY) to Aadhaar enabled bank accounts of the beneficiaries in the pilot districts, Mysore and Pathanamthitta. Under AABY, Life Insurance Cover, Accident and Disability Claim benefits and Scholarships are payable to the Below Poverty Line and marginally Above Poverty Line beneficiaries of the scheme. Expansion of e-Payment System: 39. Government e-Payment System, inaugurated by then Hon’ble Finance Minister on 31.10.2011, is a secure electronic payment system for direct credit of dues

• March 2015 • Plastics News

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from the Government of India into the accounts of beneficiaries using digitally signed electronic advices (e-advice) through the ‘Government e-Payment Gateway’ (GePG). The e-payment system is an important tool for good governance and anticorruption measure. This reduces the beneficiary’s dependence on Govt. offices and officials to receive their dues/payments. The System also helps the employees in improving efficiency as it facilitates faster payment, quicker receipt of scrolls and hassle free reconciliation. Besides, this is a major green –initiative as it helps environmental protection by eliminating paper based physical instruments of payments and e-scrolls. The e-payment system using GePG has since covered 414 PAOs in 51 Central Ministries/ Departments through 22 banks. The scope of epayment system has been expanded to cover Cheque Drawing & Disbursing offices (CDDOs) of CPWD and has since been implemented in 142 CDDOs. Volume of e-payment has been increasing steadily and has reached to a level of over 90% of all payments to vendors, suppliers, contractors and staff in PAOs covered by the system. Railway Budget 40. Railways Budget is presented separately from the General Budget. However, the earnings and expenditure and all other major financial figures are also incorporated in the General Budget. Government support is

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provided to Railways in the form of Gross Budgetary Support (GBS) and a return on this investment, called Dividend, is paid every year. The rate of Dividend is determined by the Railways Convention Committee and is presently at 5 per cent. There has been no default in the payment of dividend in the last ten years. Railway revenues are primarily earned through two major traffic streams, passenger and freight. Some earnings are also contributed by luggage/parcels, commercial utilization of land, siding charges, advertisement and dividend paid by Railways’ PSUs. The earning are utilized to meet the operating expenses called Ordinary Working Expenses (OWE) and pensionary charges. The remaining surplus is used to pay dividend and balance is ploughed back as plan investment for meeting safety and development needs of the system. 41. Railways finances improved in the last decade in as much as that it attained the Operating Ratio of 75.9 per cent in 2007-08. This was primarily due to buoyancy in the national economy getting reflected in railway traffic also and the average growth in railway expenditure. However, after 2007-08, the OWE and pension payment soared consequent upon implementation of the 6th Central Pay Commission (CPC), whereas the momentum of growth in earnings witnessed earlier could not be maintained. As a result the Operating Ratio deteriorated to the extent of 95 per cent during

2009-10. The Railway Plan could be sustained by drawing down from the Railway Reserve Funds. In fact, the balances in Railway Reserve Funds become negative to the extent of ` 2,100 crore and ` 385 crore during 2010-11 and 2011-12 respectively. Ministry of Finance provided a loan of ` 3,000 crore in 2011-12 to bridge the negative balances in the Railways Funds. 42. After stabilization of the impact of 6th Central Pay Commission (CPC) and also due to various measures taken including additional resources mobilization through rationalizing the fare and freight tariffs, the ﬁnancial position of the Railways has started showing signs of improvement in the subsequent years. The entire loan of ` 3,000 crore was also returned to general revenues in 2012-13 with interest. The revenue earnings of the Railways at ` 1,59,248 crore are likely to register a growth of 14.1 per cent in RE 2014-15 over the previous year, whereas the OWE and the pension expenditure at ` 1,38,258 crore are estimated to increase by 13.02 per cent. The internal resource generation is likely to be ` 15,053 crore in RE 2014-15 against ` 11,668 crore in 201314. The Operating Ratio in RE 2014-15 is likely to be at 91.8 per cent. Traditionally the passenger services of railways have been loss making and the under recovery has exceeded ` 25,000 crore. 43. The plan investment in railways is funded through GBS, internal

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resources and extra budgetary resources (EBR). The 12th Five Year Plan for railways has been approved at ` 5.19 lakh crore, targeting investment of ` 1.94 lakh crore through GBS, ` 1.05 lakh crore of internal resources and ` 2.20 lakh crore of EBR. An amount of ` 1,00,011 crore has been provided in BE 201516 as against investment of ` 65,798 crore in RE 2014-15 and ` 53,109 crore in Actuals 2013-14. The plan resources are targeted to be invested judiciously and operationally important projects will provided assured funding during the 12th Plan. This will help the railways in not only removing the infrastructure bottlenecks but also augment the revenue earning capacity of the system. C. Policy Evaluation 44. Government has adopted active policy stance to revive the economic growth in the current ﬁnancial year. Apart from slew of policy interventions in critical sectors such as manufacturing, infrastructure etc., Government has also adopted institutional reforms such as ‘minimum government, maximum governance’, replacing Planning Commission with NITI Ayog. The thrust of these reforms have been to streamline the government structure to meet the aspirations of a new, vibrant nation in the modern age. There has been definite and decisive move towards co-operative federalism where Centre-State relationship is put on a new footing as partners in development. Central theme

of the government has been to re-define the manner of engagement between the centre and states on the development agenda. Recommendations of Fourteenth Finance Commission (FFC) and Government’s decision to implement the award in letter and spirit, despite its far reaching implications on range of issues, has to be seen in this context. 45. The award is in line with government’s thrust towards greater co-operative federalism and redefining the centre-state fiscal relations. There had been growing demand from States across for greater devolution and flexibility to design and implement development programmes suited to its requirement. ‘One-sizefit-all’ approach of the Planning Commission was decried by all as being anachronistic. In the initial phase of growth following independence, there was need for singular approach to nation building to develop capacities across the spectrum. However, with time different States have built-up their capacities and are aspiring to embark on development strategy based on their local requirements and aspirations. It was argued that rigid programme design of the centre was stifling the local aspirations. States’ clamoured greater flexibility in design and implementation of development agenda. FFC has taken this aspect as the central theme of its recommendation for devolution. 46. Budget 2015-16 is landmark budget in many ways. It has

altered fundamental approach to development. Building on the FFC award, Government has integrated it with its drive towards co-operative federalism and re-designing of the Planning Commission. NITI Ayog provides the ready platform for building upon the institutional framework recommended by the FFC. As a result, Central Plan outlays have been provided adequately for the Centre to carry out its mandate on the Union list. Attempt has been made to provide substantive allocations for the core activities under the Central subject under the Umbrella schemes. Various activities performed disparately under the Central Plan have been merged under the larger schemes. Going forward, the schemes under Central Plan need to be streamlined by weeding out smaller programmes that have outlived their purposes. 47. The Finance Commission has enhanced devolution of the divisible pool of taxes as a compositional shift in transfers from grants to tax devolution. Based on this principle, over 30 Centrally Sponsored Schemes have been identiﬁed which ought to have been transferred to the States because expenditure on them has already been taken into account as State expenditure, in arriving at the greater devolution of 42 per cent to the States. However, keeping in mind that many of these schemes are national priorities, and some are legal obligations (such as MGNREGA) and in order to underline the

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Central Government’s continued support to national priorities, especially with regard to schemes meant for the poor, most of these are proposed to be continued. It is proposed that only 8 Centrally Sponsored Schemes be delinked from support from the Centre. Similarly, in certain programmes of the Government will have to continue unaltered as they are either legal / Constitutional obligations, or are privileges available to the elected representatives for welfare of their constituents. Further, and more importantly it is proposed that the Union Government may continue to support certain programmes which are for the beneﬁt of socially disadvantaged in an unaltered manner from its own resources. In respect of various other Centrally Sponsored Schemes, the sharing pattern will have to undergo a change with States sharing a higher ﬁscal responsibility in terms of scheme implementation. Going forward, details of changes in sharing pattern will have to be worked out by the administrative Ministry/Department on the basis of available resources from Union Finances. In order to make the transition non-disruptive, Budget 2015-16 provides for allocations to meet the requirement in the initial part of the year, which will provide time to make necessary structural changes in the scheme design. 48. Concomitantly, there is a need to strengthen activities which will be critical in the emerging scenario.

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With greater devolution, States will have larger resource pool at their command to undertake number of development activities. To avoid duplication, Centre will be re-orienting its role to provide quality inputs. This could be in areas like interstate comparisons, international best practices etc. Thus, gamut of activities in the Centre and States need to be reoriented in face of the changes initiated in FY 2015-16. A beginning has been made by alterations in the Centrally Sponsored Schemes, Central Assistance to State Plans etc. This exercise will be carried forward in the next financial year and beyond in consonance with the changes affected in this budget. 49. T h e c u r r e n t f i n a n c i a l y e a r witnessed revival of growth in the economy, as reported by CSO advance estimates. Economy is poised for a major leap with cyclical upturn, on the back of strong policies and a whiff of new optimism. However, the turnaround has brought back focus on the FRBM. Public discourse has centered around the fact that the process of growth revival can be hastened with higher public spending on infrastructure. The argument of pro-cyclical, structurally adjusted ﬁscal targets has been furthered. One of the major criticisms of the current phase of ﬁscal consolidation has been that it has relied entirely on expenditure management in the backdrop of shrinking revenues. Higher devolution to States,

following FFC award has brought the fiscal consolidation debate back to the centre stage. 50. Given the debt profile, in the Indian context the critical question is not the quantum of borrowing but the deployment of the borrowed resources. Public spending in core sector can be helpful as a trigger point, but it also needs to be balanced with need for private capital and monetary policy concerns. The balance has been maintained in the budget 2015-16. The deficit target at 3.9 per cent of GDP has been contained within the 4 per cent limit, though it represents a deviation from the roadmap of fiscal consolidation notified under the new FRBM Rules. Rules will be notified adopting the changes, including deviations on the Revenue account. While, the 3 per cent goal post has been shifted by a period of one year, it has been decided to keep the fiscal deficit range bound during the FFC award period to tide over the changes. At the same time allocations to Capital spending has been substantially augmented to ensure that additional borrowing is put to effective use. The capital spending in BE 2015-16 has been increased to ` 2,41,431 crore, up from ` 1,92,378 crore in RE 201415. This has been achieved with judicious mix of key initiatives in Railways, Roads and other Infrastructure sectors. In addition public investment has also been targeted through mobilisation of resources by the public sector.

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The KOPLAS 2015 The 23rd Korea International Plastics & Rubber Show (KOPLAS 2015), Korea's major trade show successfully concluded this month. KOPLAS 2015 Co-organized by Korea E&X and Korea Plastic Processing Machine Industry Cooperative was held during 10-14 March, 2015 at KINTEX focusing on various plastic-related raw material, molding, machinery, and related ancillary equipment. With the theme to promote plastics the trade show had its slogan, "Plastic, join in the future." According to officials the show witnessed quite a large numbers of visitors. “A 33% increase from last year making it the largest showcase ever

since its establishment in 1981, more than 427 companies from 25 countries participated in this year's show,” said the organizers. The opening ceremony for KOPLAS 2015 was highlighted by the attendance of top industry figures includingLee Gwanseop, the vice minister of the Ministry of Trade, Industry & Energy (MOTIE), Kwon Hyeok-cheon, the vice director of Korea Institute of Industrial Technology (KITECH), and Shin Hwan-seop, the Small-Business

Support Division Head of KOTRA. KOPLAS 2015 also had concurrent events like the 13th Heating, AirConditioning, Refrigeration & Fluid Exhibition-Korea (HARFKO 2015) and INTERMOLD KOREA 2015.

India PET and PBT Market estimated at around USD1.9 Billion

ndia’s Continuing Growth in end-use Industries coupled with emergence of new application areas is likely to boost Indian PET & PBT Resin Market through 2020. This is what the researchers say. According to a recently published report by TechSci Research, a global market research and consulting company, “India PET & PBT Resins Market Forecast & Opportunities, 2020”, the PET & PBT resins market in India is expected to surpass USD1.9 billion in 2015. According to, “India PET & PBT Resins Market Forecast & Opportunities, 2020”, the PET & PBT resins market in India is expected to surpass USD1.9 billion in 2015. “IndiaPET & PBT Resins Market Forecast & Opportunities, 2020” discusses the following aspects

related to PET & PBT resins market in India: • India PET & PBT Resins Market Size, Share & Forecast • S e g m e n t a l & Re g i o n a l Analysis • Po l i c y & Re g u l a t o r y Landscape • Changing Market Trends & Emerging Opportunities • Competitive Landscape & Strategic Recommendations Polyethylene Terephthalate (PET) is a plastic polymer produced by reacting two raw materials, Puriﬁed Terephthalic Acid (PTA) & Monoethylene Glycol (MEG), whereas

Polybutylene Terephthalate (PBT) is manufactured from PTA and BDO (1, 4-butanediol). These resins are used for manufacturing plastic and plastic components, which have wide applications in bottling, textile, electronics and automobile industry. India’s PET market continues to be dominated by PET bottles, followed by PET ﬁlms, sheets and chips, and the trend is expected to continue over

• March 2015 • Plastics News

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the next five years. PET bottles are being increasing used for packaging of bottled drinking water, carbonated soft drinks, edible oils, juices, alcoholic beverages, etc. On the other hand, PBT resin market in India continues to be commanded by electrical and electronics industry. Technological advancements in the electrical and electronics industry coupled with emergence and growing adoption of innovative electrical solutions like CFLs and LEDs over the last few years is further boosting PBT resin sales in the country. Apart from electrical and electronics industry, Optical Fibre Cables (OFC) and automobile industry are other major end users of PBT resin industry. “India PET market is highly consolidated with Reliance Industries Limited (RIL), JBF Industries Limited and Dhunseri Petrochem Limited accounting for over 90% of the market share. Over the last few years, these PET majors in India have been increasing their focus on backward integration to increase their profit margins and address concerns associated with irregular supply of raw materials. In contrast, the country’s PBT market is highly fragmented with non-branded players accounting for a significant market share.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm. Few of the major PBT players operating in the country include Toray BASF, SABIC, SRF, DuPont and Laxness.

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“India PET & PBT Resins Market Forecast & Opportunities, 2020” has evaluated the future growth potential of PET & PBT resins market and provided the statistics and information on market structure, industry behaviour and trends. The report includes PET & PBT resins market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identiﬁes and analyzes the emerging trends along with essential drivers, challenges and opportunities available in PET & PBT resins market in India

Report Methodology TechSci Research is a global market research and consulting company

with ofﬁces in Canada, UK and India. TechSci Research provides market research consulting services in six verticals - Information Technology, Chemicals, Water & Water Recycling, Consumer Goods & Retail, Automotive and Energy & Power. The company uses proprietary innovative business model that focuses on improved productivity that also ensure the creation of highquality reports. The information contained in this report is based upon both primary and secondary sources. Primary research included interviews with PET & PBT resins manufacturers and industry experts. Secondary research included an exhaustive search of relevant publications like company annual reports, ﬁnancial reports and proprietary databases. “Considering the report it is expected that the continuing growth in end use industries coupled with emergence of new application areas is to boost India’s PET & PBT Resin Market,” says Chechi.

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DSM and CVC in Join hands for polymer intermediates and composite resins

oyal DSM, the Life Sciences and Materials Sciences company, and CVC Capital Partners (CVC), one of the world's leading investment advisory firms, have announced a partnership for DSM's activities in Polymer Intermediates (Caprolactam and Acrylonitrile) and Composite Resins through the formation of a new company, provisionally called NewCo. The NewCo will be 65% owned by CVC and 35% by DSM, with 1,950 employees Pro-forma third-party sales of NewCo in 2014 amounted to €2.1 bln with a 2014 EBITDA of €106 mln. The enterprise value of the transaction is €600 mln plus an earn-out of up to €175 mln. Financing of NewCo will primarily be through an equity contribution from both shareholders, third party ﬁnancing and a €100 mln bridge loan provided by DSM Estimated net cash proceeds at closing to DSM of €300-350 mln. DSM will contribute its global caprolactam business (Europe, North America, its 60% stake in DNCC (China) and the caprolactam licensing business), DSM's acrylonitrile business and DSM's C o m p o s i t e Re s i n s business including its 75% stake in JDR (China) DSM's 65% stake in the service organization Sitech Services held via its caprolactam and acrylonitrile businesses will also be transferred. DSM

Plastics has secured at least 80% of its caprolactam needs for 15 years after closing via drawing rights to secure its strategic position and competitiveness, effectively maintaining DSM Engineering Plastics' backward integration. For DSM, this proposed transaction is a logical step in the execution of its strategy as Polymer Intermediates (caprolactam, acrylonitrile) and Composite Resins no longer ﬁt with its more resilient portfolio in Nutrition and Performance Materials. The partnership with CVC allows DSM to further reduce the cyclicality of its portfolio, secure a long-term competitive supply position of caprolactam for DSM Engineering Plastics and fully focus on the Nutrition, Performance Materials and Innovation activities complemented by accelerated actions to improve efﬁciencies and reduce costs. CVC will work with current management of these businesses to make NewCo a success.

CVC sees these businesses as a solid platform with leading positions and substantial potential for future growth. As a 35% shareholder in NewCo, DSM will be able to beneﬁt from any improvements in the businesses that will become part of NewCo. NewCo will continue to supply at least 80% of DSM Engineering Plastics' caprolactam needs in Europe and North America for the coming 15 years via a drawing rights contract, effectively maintaining DSM Engineering Plastics' backward integration. In China DSM Engineering Plastics will continue to be supplied by NewCo as today. This secures an ongoing strategic and competitive position for the polyamide 6 business in which DSM is a global leader. NewCo will operate as an independent company with three business units: caprolactam, acrylonitrile and composite resins. Due to the ownership change of DSM's caprolactam and acrylonitrile businesses, NewCo automatically becomes an indirect 65% shareholder in Sitech Services, the onsite service provider at the Chemelot Industrial Park in Sittard-Geleen (Netherlands). As a service provider, Sitech generally reinvests the majority of its proﬁt into the Chemelot Industrial Park. DSM will remain a 5% shareholder in Sitech Services via DSM Engineering Plastics. In 2014 Sitech Services generated an EBITDA

Engineering

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of €27 mln, reported within DSM's Corporate Activities, of which 65% is included in NewCo's pro-forma 2014 EBITDA of €106 mln mentioned above. Over the past ten years, DSM has further developed the Chemelot Industrial Park and the Brightlands Chemelot Campus (Research) in Sittard-Geleen (Netherlands) into a world-leading innovation and production location. The close cooperation with the University of Maastricht and the Province of Limburg further enhances this development. Both the Industrial Park and the Campus have a deep-rooted cluster of activities, with over 100 companies and knowledge institutions such as Eindhoven University present, currently employing over 7,000 people, a number which is increasing. DSM is fully committed to its contribution for the further development of the Chemelot Industrial Park and Brightlands Chemelot Campus. India, China to drive growth of global plastic additives market The global plastic additives market is forecasted to reach US$ 50 bln by 2020 and is projected to grow at a CAGR of 3.8% during the forecast period. I ndia and China are the lucrative markets due to presence of low-cost labour and raw materials , according to Futuremarketinsights. Plasticizers is the largest revenue generating segment of the plastic additives market valued at US$21.4 bln, followed by flame retardants with a CAGR of 5.4% projected for 2013-2020. The anti-microbial segment will also grow at a moderate rate due to increase in demand from

Plastics News • March 2015 • 40

the healthcare industry. The plastic additive industry is energy- and capital-intensive, wherein gas and oil are the major raw materials. It is easy to use and has numerous applications that make it an adaptable industry. Asia Pacific is the leader globally in terms of value and volume and production and consumption, and the key drivers being the surge in its automobile and infrastructure industry. Additionally, the Chinese and Indian automobile industries are expected to grow at 8 to 14% respectively during the forecast period 2014 - 2020. Plastic additives can be classified as reinforcing fibres, coupling agents, stabilizers, colorants, fillers, processing aids, flame retardants, peroxides and antistatic agents. Plastic additives enable safe handling of the plastic during the manufacture of finished products. The stabilizing plastic additives are halogen stabilizers, ultraviolet absorbers, antioxidants and biological preservatives. Also, there are processing aids such as lubricants and flow controls. The end-uses of plastic additives are in the plastic industry and its products. For example, fire retardation plastic additives are added to polymers to break them down. This ensures reduced viscosity, which is essential for moulding the plastics into various finished products. Another example is that of ultraviolet absorbers, which are added in plastic pots used in plantations, to enable resistance to ultraviolet rays. Anti-microbial plastic additives are also used in this product as well as other products,

as microorganisms can decompose plastics into monomers. Lubricants minimizes both internal and external friction, helps mould release and enhance mould flow. Fillers are used to increase the volume of the plastic available and to make it costeffective. Also, temperature resistance of plastics is enhanced by plastic additives. Additives facilitate the use of plastic in space craft due to the ability to sustain at high temperatures. Plastic additives have a large number of applications in defence, aerospace, aviation, automotive, consumer appliances, commodities, paints and coatings, FMCG and packaging industries. Plastic additive producers are currently focusing on developing economies such as Asia Paciﬁc. The region accounted for around 40% revenue of the plastic additives market as of 2013, which is projected to increase to 60% by 2020. Increasing awareness regarding conservation of depleting natural resources is expediting growth of the plastic additives market in Asia Paciﬁc. Experts say growth prospects in the plastic additives market are vast and numerous players in the market are constantly investing and focusing on innovations in this industry through the use of plastic additives. BASF, Chemtura Corporation, Exxon Mobil Corporation, Clariant Ltd., Bayer AG and Kaneka are some major players in the plastic additives market. The overall chemical industry has grown at around 2% to 5%, which is positive sign for the evolving plastic additives market.

FEATURES

Canada introduces Birth certificates made with polymer

aving developed the successful model for Bank Notes, the Ontario province in Canada is introducing new birth certificates made with a polymer material and enhanced security features. With the use of the polymer the document, birth certificate, will be (made) more durable then before and harder to counterfeit, as it happens with the paper. Premier Kathleen Wynne unveiled the new Ontario birth certificates at a downtown Toronto hospital on Tuesday, pointing out that the polymer is the same material used to make Canadian bank notes. Birth certificates are one of the most important documents people have, since they are needed to obtain other ID, such as passports and driver’s licences, said Wynne. Making them more secure will help prevent identity theft and fraud, she said. The polymer birth certificates have a variety of embedded security features, including raised print, transparent

Birth Certificate Front Side

windows and colour-shifting images.They are also more durable and easier to clean than the current paper certificates and should last for a person’s lifetime with normal use. But the province says the new design and material will not increase the cost of ordering a birth certificate. The cost of the polymer birth certificates, available from April 15, will be the same as the current paper ones. The intricate pattern of maple leaves is surrounded by a gold border, which when tilted, makes colours shift from green to purple. Colours on the front of the certificate gradually shift from blue to peach, and When held up to light, Canada geese appear in the lower portion and the word "Canada"

repeats in a ribbon pattern from the top to bottom. Several other features have been incorporated in the design to enhance security and anti counterfeiting. “As technology evolves, we want to make sure that the government evolves with it,” said Wynne. “We’ve learned from experiences of other provinces and territories that paper birth certificates are due for an update.” The new polymer birth certiﬁcates will be available starting April 2015.

Birth Certificate Back Side

• March 2015 • Plastics News

FEATURES

NPE2015 to open with a Fashion Show in plastics industry’s pursuit of zero waste

hat do vinyl sheet protectors, yoga mats, and plastic beads have to do with a unique and fashionable dress that would turn heads at any gathering? Plenty— thanks to the recyclability of plastics and the artistry of students at the Savannah College of Art and Design (SCAD). The NPE 2015 opened up with Fashion Show to reﬂect the plastics industry’s pursuit of zero waste. The beautiful and clorful dresses were just of the creations from recycled, reused, or repurposed plastics that models displayed at the Pursuing Zero Waste Fashion Show at the opening ceremony of NPE2015. SCAD students designed the garments and accessories in a partnership program with the producer of the triennial NPE show, SPI: The Plastics Industry Trade

Association. The fashion show will be sponsored by Green Dot, maker of Terratek® bioplastics.The fashion show took place in West Hall C on Monday, March 23, 2015, at the start of the five-day NPE2015 exposition at the Orange County Convention Center (OCCC) in Orlando, Florida. Subsequently, the SCAD creations were on display in the Zero Waste Zone, a special sector of the exhibit floor in the South Hall of the OCCC devoted to the plastics industry’s mandate to reduce, reuse, or recycle its materials. In addition to the garments created from used plastics, the fashion show also included a design created with 3D printing technology by a SCAD student using bioplastics from Green Dot. It will be one of 13 outfits shown, as well as a number of dazzling accessories

also created with recycled, reused, or repurposed plastics. “ We f o u n d the students at SCAD to be not only talented and creative but also very involved with environmental issues,” said Brad Williams, director of marketing and sales for SPI. “Their designs are vivid demonstrations that recycled plastics can gain new lives in many forms both as purely utilitarian goods and as objects of beauty, he added.

PlastiComp and Xenia Partner to develop applications for carbon fiber reinforced thermoplastic composites PlastiComp, Inc., a global leader in long fiber thermoplastic (LFT) materials and technologies, and Xenia, a materials development company specializing in carbon ﬁber reinforced thermoplastic composites have come together. As part of this partnership, Xenia will develop innovative solutions based on PlastiComp’s Complet® long carbon ﬁber reinforced thermoplastic composites and Xenia’s XECARB® short

Plastics News • March 2015 • 42

carbon ﬁber reinforced thermoplastic composites for the European market.

allow them to provide solutions for a broader range of applications.”

“This combines the carbon fiber expertise of two esteemed firms, Xenia is renowned for their work with short carbon fiber reinforced thermoplastics and PlastiComp for our long and continuous fiber variants,” said Steve Bowen, president and CEO of PlastiComp. “Xenia will now have a complete portfolio of carbon fiber composites at their disposal which will

“We are delighted to expand our capabilities with carbon fiber technology through our partnership with PlastiComp,” said Xenia president Fabio Azzolin. “Xenia now has a full line of carbon fiber composites that will allow us to develop more applications benefitting from the reduced weight and high-performance properties provided by carbon fiber reinforced

FEATURES

materials.” Injection moldable Complet long fiber composite pellets from PlastiComp are available with 15-50% carbon fiber in thermoplastic polymers from polypropylene to PEEK. Composite formulations can be custom engineered to include wear reduction, electrical conductivity, and flame retardant functions in addition to long fiber structural reinforcement.

together into a single ready-to-mold pellet. Hybrid products are available with variable combinations of the fiber types to bridge the performance gap between using either of these two fibers alone, they also lower the entry cost for adopting carbon fiber technology by reducing the quantity of carbon fiber needed to obtain highperformance properties.

Continuous fiber reinforced tapes are available in 0.5 to 7.5 cm widths in the same polymer range as pellet products. PlastiComp recently developed a line of hybrid long glass+carbon ﬁber composites that combine long glass and carbon ﬁber

Xenia engineers and manufactures reinforced thermoplastic composites for structural applications used in the most advanced ﬁelds. They combine reinforcing ﬁbers, such as carbon or aramid, with functional additives, such as PTFE, to improve

the mechanical and tribological properties of thermoplastic polymers. Xenia compounds ﬁber reinforcement with thermoplastic elastomers for applications where flexibility, resistance to fatigue, and impact are required or with stiffer engineering thermoplastic polymers, such as PA, PPS, PPA, or P EEK, for heavy duty, high-performance, and high temperature environments. Their products are highly recommended for the replacement of metals in applications ranging from industrial, transportation, oil and gas, agriculture, to technical sports.

Lightweight DE-STA-CO Tooling Can Boost Injection Molding Productivity

utomation can greatly increase the productivity of a plastic injection molding system, but few machine builders share the same needs. DE-STA-CO, a global leader in automation equipment, is to show case a variety of its automation tools and custom solutions at NPE2015. A pioneering manufacturer of innovative material handling tools for any application, DE-STA-CO focuses steadfastly on customers' needs, DE-STA-CO is also among the worldwide leader in the innovation, design, manufacture and support of clamps, grippers, indexers, slides, conveyors, robotic tooling and remote handling products for workplace and automation needs. DE-STA-CO offers a diverse line of automation equipment built for speed and precision," says Rob Pitera, DESTA-CO global product director, end

effectors. "Our goal is to find the right combination of products for our customers, so they can build custom setups that maximize efficiency and resources. No matter what industry the customer operates in, from plastic packaging to automotive and beyond, DE-STA-CO has the right tools for the application." The DE-STA-CO will feature a series of end effectors built with Accelerate® C o l l e c t i o n a n d M i c r o To o l i n g lightweight components. Accelerate Collection parts are made with highstrength aircraft aluminum, which means they are up to 50 percent lighter than traditional steel parts. This allows users to increase production line speed without stressing other automation equipment. DE-STA-CO's MicroTooling line features the same weight-saving benefits, but its parts are specifically sized for the

plastic injection molding market. MicroTooling products are compact, modular and ﬂexible, enabling users to build off of any two-axis or robotic automation equipment. MicroTooling and Accelerate Collection components can be combined to create lightweight end effectors for nearly any size need.

• March 2015 • Plastics News

FEATURES

In addition to MicroTooling and Accelerate Collection end effectors, the DE-STA-CO booth at NPE2015 will include vacuum cup and tool changer demos. Robohand grippers, slides and rotaries, as well as CAMCO indexers will also be on display. DE-STA-CO product experts will be available to discuss custom tooling. DE-STA-CO, a global automation and workholding company that has provided productivity solutions to the manufacturing industry since 1915. Quality, innovation and service have made DE-STA-CO a leader in the design and manufacture of cost-reducing, flexible automation solutions for industrial customers around the world. The company products include:

9500 Series Swing Clamp • The 9500 Series Swing Clamps have been redesigned with ﬂexible mounting options and an additional size with a larger bore.

82M-3E Enclosed Power Clamp:

98W Series Electric Pivot

The 82M-3E Series enclosed power clamps are the most flexible and complete family of clamps

The DE-STA-CO 98W Series Electric Pivot Unit provides constant torque, multiple positions and programmable stop positions in a compact design. • One size r e p l a c e s four sizes of pneumatic pivot units

• The new 82M-3E Series of enclosed pneumatic power clamps from DESTA-CO provides automotive and sheet metal processing customers with superior holding power in a versatile, user-friendly and lowmaintenance package. • The 82M-3E Series is well suited for a number of applications, including manual and automated fixture welding, positioning and locating. • The new 82M-3E Series Power Clamp offers multiple mounting and shaft options for Euro/NAAMS standards, with ﬁeld adjustable opening angles, multiple cylinder sizes and ﬁrst-inclass manual locking.

• Ideal for tight spaces with an arm motion that rotates at the top of the stroke. • Includes a rod weld cover to protect the rod throughout the entire stroke. • It can be mounted on any face.

Plastics News • March 2015 • 44

Unit

• Easily adjustable in the field with infinite arm opening adjustments (up to 135°) • Multiple mounting surfaces provide greater flexibility • Manual unlocking in case of air pressure loss • Sizes: 40 mm, 50 mm, 63 mm

• Interchangeable with common pneumatic pivot units with 125, 160, and 200 mm cylinder • Compatible with multiple motors • Reduced weight compared to a pneumatic unit • Energy saving • Two operating modes: Programmed setting and continuous operation • Fully adjustable • Programmable adjustment of pivot angle/positioning • Variable pivot angle over 360° • Multiple pivot-angle positions, easily adjustable • Variable arm position • Versatile saddle mounting positions • Constant torque independent of opening angle • Early cycle release possible • Controlled acceleration and deceleration • Self-locking

FEATURES

Kabra bags the prestigious National Award for Technology Innovation

ith over 5 decades of experience in extrusion technology, Kabra Extrusiontechnik (KET) continues to be a leader in manufacturing & export of plastic extrusion machinery. The company has been benchmarking in plastics extrusion industry by modern R & D techniques and various processes to cater the market requirements for low power consumption, high output, maintenance free and user friendly plastics extrusion plants.

Inline Flat Drip Tube Extrusion Line. The award was presented by Shri Ananth Kumar (Hon'ble Minister for Chemicals & Fertilizers, Government of India) during a grand function organized on 21st February, 2015 at Bengaluru.

In recognition of KET’s efforts in technology Innovation, company has been awarded with the prestigious National Award by the Department of Chemicals & Petrochemicals (Government of India) and CIPET.

(Mr. P. M. Jariwala (Sr. VP – R&D – Kabra Extrusiontechnik) receiving award at the hands of Shri Ananth Kumar (Hon'ble Minister for Chemicals & Fertilizers, Government of India).

KET was nominated under the Industry Category of “Innovation of Polymer Processing Machinery & Equipments” for its ﬂagship product – High Speed

The citation consists of a trophy, a monetary reward sum of Rs. 1 Lakhs and an attractive scroll recognizing KET’s technology innovation for irrigation

(Mr. P. M. Jariwala (Sr. VP – R&D – Kabra Extrusiontechnik) receiving award at the hands of Shri Ananth Kumar (Hon'ble Minister for Chemicals & Fertilizers, Government of India)

sector. KET has always offered technologically advanced plastics extrusion machinery to major processors across the globe. Company has been bringing world class solutions for drip irrigation system suppliers. Kabra has introduced many products, mainly inline round and flat drip tubing lines which are extensively used in micro irrigation. These lines are being developed especially for India and other developing countries. This is mainly to pass on maximum benefits to the processors & agriculture sector and thereby support farming techniques required by farmers. KET is also exploring possibilities of new avenues in bringing low cost cylindrical & flat drippers high-end equipments and micro irrigation systems for drip irrigation suppliers at competitive prices to boost yield. Given the nature of rainfall in Indian subcontinent, drip lines are gaining popularity and acceptance across the country. Kabra continues to be preferred choice of processors for flat and cylindrical drip segment. Kabra’s drip lines – both, flat and cylindrical, are widely recognized for their reliability, efficiency and advanced technology. Team Kabra takes pride in partnering & fulfilling the needs of irrigation system manufacturers to achieve higher productivity with lower cost.

• March 2015 • Plastics News

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INTERNATIONAL NEWS

Referendum on bag ban in California

alifornia’s voters, not legislators, will be the ones to ultimately decide on the state’s plastic bag ban. The referendum to repeal a statewide plastic-bag ban qualifies for the November 2016 ballot, the California secretary of state’s ofﬁce announced earlier this month. The ban was passed last year by state legislators and scheduled to go into effect July 1, but the more than 800,000 signatures submitted to California Secretary of State Alex Padilla by the American Progressive Bag Alliance (APBA) will delay its implementation until next year’s vote.Under the law signed by Gov. Jerry Brown in last September, single-

use plastic bags were to be prohibited as of July 1, 2015. Californians were set to pay a minimum of 10 cents for each reusable plastic or recycled paper bag at grocery stores and in 2016, the ban would have extended to pharmacies and liquor stores.

the environment. It was a backroom deal between the California Grocers Association and their union friends to scam consumers out of billions of dollars in bag fees — all under the guise of environmentalism,” said Lee Califf, APBA Executive Director.

The bill (SB 270) was written by Padilla, at the time a second-term state senator.Opponents, lead by APBA and a coalition of more than 20 California business and taxpayer groups, say the bag ban would eliminate thousands of jobs in the state and effectively tax shoppers without their say-so and put the money into grocer’s pockets instead of using it for environmental purposes.“SB 270 was never a bill about

Ban supporters, however, said they are conﬁdent voters will uphold the ban by voting “yes” on the referendum in 2016. Nearly 140 counties and municipalities in California have enacted single-use bag bans or fees of their own. California was the ﬁrst to pass a state-wide bag ban, though county-by-county measures in Hawaii have effectively created a state-wide ban there.

Leader calls on Mexico’s plastics industry to spend more

exico’s plastics industry must spend more on recycling, advertising and lobbying to stave off anti-plastics legislation, according to leading consultants. “More than 99.5%” of the companies comprising the national plastics industry contribute nothing in a monetary sense to such efforts, according to Eduardo de la Tijera Coeto.

on the ballot in California and plans to spend an additional $25m (€22m) before the vote in November 2016. The amounts dwarf what Mexican plastics processors spend on such items.Since 2008, Mexican legislators have proposed 64 anti-bag initiatives across the country, according to De la Tijera, co-founder and CEO of Grupo Texne in Mexico City.

“I don’t believe it’s a question of size or focus, but rather a question of attitude and a commitment that most are just not prepared to make.”De la Tijera was struck by Society of the Plastics Industry Inc. President and CEO Bill Carteaux’s revelation that SPI spent $3.5m (€3m) on a referendum that put the pro-bag issue

In 2010 local companies formed the Inboplast lobbying group “to protect their products and companies.” Inboplast, De la Tijera said, initially spent about 3 million pesos a year (about €176,000) “and managed to block the passage of 40 laws and helping to modify seven anti-bag laws that had already been approved.”

Belarus state plans €6m PE waste recycling plant

Belarus state-run trading and manufacture body, Belresursy plans to build a polyethylene waste recycling plant at Borisov in the country’s central Minsk region. The organisation, set up as a state materials procurement agency, is due to invest €6m in the project which will result in a facility capable of processing up to 5,000 tpa of PE. A similar PE recycling plant, with a 3,000 tpa capacity was set up and put into operation earlier. With the launch of its second unit, Belresursy will process 60% of the total PE recycling amounting to 15,000 tpa, the executive pointed out.

• March 2015 • Plastics News

INTERNATIONAL NEWS

PlasticsEurope backs integrated energy plans

roposals for the 28 member states of the European Union (EU) to integrate their energy markets and increase security of supply have been welcomed by trade body PlasticsEurope. The Energy Union is a ﬂagship project of the new president of the European Commission JeanClaude Juncker. Documents announcing the strategic framework for the project propose an integrated continent-wide energy system where energy flows freely across borders, based on competition and best possible use of resources, and with effective regulation of energy markets at EU level where necessary. The Energy Union would see "citizens take ownership" through smart meters, domestic generation, and by

taking their choice of energy suppliers from across the entire EU. Before this happened large changes in infrastructure, such as electricity transmission between countries to ensure each country has capacity to import electricity, would have to be implemented. The EU wants at least 30% of energy to come from renewable sources by 2030 and international transmission is important to facilitate this. In addition the EU will accelerate the deployment of smart meters so that consumers can 'moderate' their demand in times of lower supply, or when prices rise. PlasticsEurope said it welcomed any initiative to increase energy efﬁciency in the building sector, boosting a lowcarbon and climate-friendly economy.

CBI urges help for medium-sized firms

he head of the Confederation of British Industry (CBI) has called on Chancellor of the Exchequer George Osborne to use his final Budget before the general election to provide more growth opportunities for mediumsized firms. The business organisation said it wanted the Chancellor to announce details that would help support investment and exports, long-term stability, as well as simplifying the tax system, to support ambitious UK firms. The CBI also called on the government to address skills shortages in the economy by developing partnership

Plastics News • March 2015 • 54

funding models for business-relevant degrees and to press ahead with plans to reform apprentice training funding to put businesses more in control. The Federation of Small Businesses (FSB) also has called on the Chancellor to focus on delivering further supply side reforms in its final pre-election Budget submission to government. Tax simplification, a reform of business rates, improved broadband services and continued fiscal discipline headed the FSB’s wishlist. The federation said that administrative costs in meeting tax obligations for small businesses were unnecessarily high and with

Petcore Europe president elected

etcore Europe, the Brussels based association representing the PET value chain in Europe, has elected its new president Mark Kenrick from Lotte Chemical UK. Kenrick takes over from Roberto Bertaggia (Gruppo M&G), who has chaired Petcore Europe since its formation two years ago.Petcore Europe is a non-profit European trade association based in Brussels representing the whole PET value chain in Europe. Kenrick said on his new role: “I am delighted about my new role and determined that Petcore Europe continues to grow and to definitely be the voice of the European PET industry in Europe, especially in Brussels,” outlined the new President. Chief executive of Redcar-based Lotte Chemical UK. Kenrick has experience in technical, operational, and general management roles mainly in the polyester industry in Europe, USA and Brazil. new IT coming on stream, could be streamlined. It support recommendations made by Office for Tax Simplification, an office of HM Treasury which has asked for a single tax account for small businesses. However does the Chancellor of the Exchequer George Osborne really use his prerogative to provide more growth opportunities reamins to be seen.

INTERNATIONAL NEWS

SPE names Barry Shepherd Thermoformer of the Year

he Society of Plastics Engineers (SPE) Thermoforming Division has named Barry Shepherd Thermoformer of the Year. The award will be presented during SPE's Thermoforming Awards dinner, held in conjunction with the 24th SPE Thermoforming Conference. Throughout the 1960s, Shepherd worked for several different packaging companies in sample making and design. He joined Kodak Canada in 1970 and began designing packaging for cameras, film and related products. While at Kodak, he was involved in the development of packaging for Kodachrome slides, an early, groundbreaking use of thin-wall injection molding. During the mid-1970s and early 1980s, Shepherd worked for several corrugated packaging companies in positions ranging from sales to president of a small box company. He always stayed involved in his passion: design and development. In 1984, he was introduced to the Alloyd Co., which specialized in thermoforming medical and consumer packaging and sealing equipment. Shepherd was intrigued by plastics and blister packaging, and launched Shepherd Packaging in 1985, selling plastic blisters, trays, clamshells, sealing equipment and other packaging materials. Shepherd Packaging expanded its manufacturing business and in 1997 entered the heavy-gauge thermoforming market by developing a custom thermoformed plastic pallet for Lear. Under Shepherd's leadership in 2006, Shepherd

Thermoforming & Packaging Inc. opened its 43,000-square-foot custom thermoforming facility near Toronto, ON, Canada, where the company operates seven thermoforming and two CNC milling machines. Now retired, Shepherd remains active on the board of advisors for the company he founded. Shepherd joined the SPE Thermoforming Division Board of Directors in 1997 and worked on several committees, including the Executive Committee, before retiring from the board in 2010. During his tenure, Shepherd also served as technical editor of the Thermoforming Division's award-winning publication, SPE Thermoforming Quarterlymagazine.

Shepherd said . "I'm humbled and surprised, but it's really nice to know that my peers think that much of me that they've given me this award." He noted that while Shepherd Thermoforming isn't a big company, it is very aggressive in growing its business and meeting customer requirements no matter what that might involve. "We don't say no to anything and give customers what they're looking for," he added. The 24th SPE Thermoforming Conference will take place Aug. 31 to Sept. 2, 2015, in Atlanta, GA, at the Renaissance Atlanta Waverly Hotel. The awards dinner will be held on Tuesday, September 01, 2015.

US plastic film recycling up 11%

ost-consumer plastic film packaging recycling in the US jumped 11% year-on-year, according to new findings from the American Chemistry Council (ACC). The latest statistics were released as part of the Plastics Recycling 2015 conference in Dallas.The jump of 116 million pounds (52.6 million kg), to an estimated 1.14 billion pounds (517 million kg), marks the highest annual collection total since the ACC started surveying collection in 2005.This category includes wraps, bags and commercial stretch film made primarily from polyethylene. M o o r e Re c y c l i n g A s s o c i a t e s authored the new findings in its 2013 National Postconsumer Plastic

Bag & Film Recycling Report, for the ACC’s Plastics division.Among the details, the report indicates that polyethylene film recycling has increased by 74% since 2005. Overall increases are attributed, in part, to greater collection efforts taking place at small and mid-size businesses. While bags and film saw a significant increase in recycling in 2013, the ACC also released a report on the recycling of non-bottle rigid plastics that actually saw a slight dip of 1% from 2012 to 2013.The 2013 National Postconsumer Non-Bottle Rigid Plastic Recycling Report, said the amount collected in 2013 was still triple the total from 2007 when that report was first issued.

• March 2015 • Plastics News

INTERNATIONAL NEWS

UK posts record employment figures

he UK employment rate has hit a record high of 73.3%, the highest since comparable records began in 1971, according to the latest Office for National Statistics.The figures, for the three months ending January 2015, showed that there are now 30.94 million people in work, 143,000 more than for August to October 2014 and a rise of 617,000 over the last 12 months.The jobless total is 1.86 million, 102,000 fewer than for August to October 2014 and 479,000 fewer than for a year earlier. This is the lowest since the summer of 2008.However, Labour’s shadow work and pensions secretary Rachel Reeves, criticised the figures, claiming“nearly half of all the new jobs created have been in low paid sectors”.Ahead of today’s Budget, she added: “Labour’s better plan for working families will raise the minimum wage to at least £8 an hour before 2020, and give tax rebates to firms who pay a Living Wage.”Comparing the three months ending January 2015 with a year earlier, pay for employees in the UK increased by 1.8% including bonuses and by 1.6% excluding bonuses. Commenting on today’s Labour Market Data, Lee Hopley, chief economist at EEF, the manufacturers’ organisation, said: “Today’s data shows manufacturers are recruiting heavily on the back of a strong year of output growth. 2014 saw the fastest annual growth rate in manufacturing jobs for twenty years and indicates that manufacturers have confidence this picture will continue.“Manufacturing has a key role to play in delivering high quality jobs in the UK, but skills shortages

Plastics News • March 2015 • 56

remain a key challenge for the sector and this must be addressed to ensure companies can grow, compete and hire into the future.”Employment in manufacturing grew 1.4% in 2014, the fastest rate of growth since 1995.Alasdair Cavalla, an economist at the Centre for Economics and Business Research (CEBR), said “wages remained on their tepid growth path”. He added: “While wage growth has undoubtedly picked up lately, it has so far remained moderate. It also picked up later in the economic cycle than would usually be expected. The labour market’s performance in other respects has been good, with unemployment down by 479,000 since a year ago and employment up by

over 600,000.“However, nominal wage growth has only overtaken inflation in the last few months. With real wages still lower than at the start of this parliament, voters are unlikely to thank the government for this.”The economist also noted the Bank of England’s statement today which showed a third consecutive month of a unanimous no policy change vote on interest rates. Cavalla added: “CEBR expects that the committee as a whole will be in no rush to raise rates. With so much currency devaluation worldwide, monetary policy tightening risks making the job of raising inflation towards the 2% target harder. We continue to expect the first rate hike to come in the first quarter of 2016.”

Hungary's Ongropack invests in new PVC sheet line

ungarian plastics processor Ongropack is operating a new Krauss Maffei Berstorff extrusion line for the production of both compact and foamed sheet at its plant in Kazincbarcika, Hungary. The recently installed additional line with a 700 kg/hour output, manufactures PVC sheet with a 2,050 mm width for conversion into door panels, for display advertising or exhibition stand construction and use by the food industry. The ﬁlm and sheet producer’s latest line includes a KMD 114-32/PL twinscrew extruder with a material conveyor and polishing stack. It has a ﬂexible design enabling a rapid production changeover in production

of the finished product. This addition is part of a broader expansion and investment programme being carried out by Ongropack last year and in 2015.Ongropack, formerly part of the Hungarian BorsodChem PVC group, was formed to produce rigid and stretch films in 1993 and later was merged with another BorsodChem downstream company PolyPlatt and began sheet production. Following the parent polymer producer’s decision in 2008 to pull out of downstream processing, Orgropack was sold to its present owner ETIMO. Two years later the firm established a separate sheet products business unit to improve efficiency and sales.

BUSINESS NEWS

UBI refuses further financial assistance for Haldia Petrochemicals

nited Bank of India (UBI), one of the lenders consortium to the fund-starved Haldia Petrochemicals (HPL), has decided not to extend any further financial assistance to Haldia Petrochemicals Ltd. According to reports from PTI the bank has decided that will not provide any further financial help. "HPL needs funds to sustain operations which have started lately after a period of prolonged closure. But, we are not going to extend further assistance to the company," a UBI official told PTI. UBI had given HPL a loan of Rs 275 crore earlier. "The account has already become an NPA and therefore there will no further exposure to the company. Why should increase our

NPAs further," he said.UBI, already reeling under a huge burden of NPAs, has decided to bring down the Gross Non Performing Assets (GNPA) percentage levels to a single digit, which was now at double digits. HPL, which was closed for more than seven months since July 2014 owing to severe shortage of working capital, resumed operations after its promoter TCG provided Rs 100 crore as margin money and State Bank of India (SBI) providing loans between Rs 500 crore and Rs 600 crore, as per businesstoday.com. Funds required to re-start operations totalled to Rs 900 crore while Rs 2,300 crore was needed for entire financial restructuring of the company.

Sabic teams up with Elopak for new beverage cartons

everage cartons coated with plastic made from Sabic’s certified renewable polyethylene will shortly be available across northern Europe, following a partnership with liquid food packaging firm Elopak. Chemical manufacturing firm Sabic’s new second generation renewable polyolefins claim to reduce the amount of fossil fuels used in the production of polyethylene (PE) and polypropylene (PP), according to a Manchester University life cycle analysis (LCA) study.From feedstock to plastic, the use of renewable

feedstock made from waste fats and oils instead of traditional feedstock reduces the amount of fossil fuels needed by 84%. “This confirmation of our LCA study by a reputable independent party, confirms some fantastic results in terms of the sustainability advantage of using renewable feedstocks for the production of polyolefins,” said Steven de Boer, director innovation and sustainability, polymers at Sabic.“In addition, we are proud to announce that up to 4kg of CO2 is also saved, for each kilogram

Wittmann likely to expand in Chennai

ittmann Battenfeld is likely to expand its Chennai operations by year end .Considering the growth in this part of the world and following the growth in the Indian Plastics. N a n d a Ku m a r, Pr e s i d e n t o f Wittmann Battenfeld India said that the Indian market is expected to grow rapidly and we are planning for another expansion to meet demands from the country’s processors for higher quality equipment. Wittmann Battenfeld expanded its Chennai operation from 8,000 square metres to 10,000 square metres in 2013, and now plans to add another 4,000 square metres, giving it 14,000 total, by the end of this year. The production of more equipment at Chennai plant is to provide European technology in Indian pricing. of product used in the market. The renewable polyethylene that Sabic is supplying to Elopak aims to address the plastic packaging industry’s growing demand for high performance extrusion coating ﬁlms. “The carton is the renewable choice for packaging of beverages, and with renewable polymers from Sabic, we are able to supply packaging which is virtually 100% renewable,” said Kristian Hall, director corporate environment at Elopak.

• March 2015 • Plastics News

BUSINESS NEWS

Solvay to invest $85m for expansion in US

olvay, the Brussels, Belgiumbased chemicals group, has announced that it is building a new speciality polymers unit in the US, expanding its capacity of PEEK (polyether etherketone). The new unit is to be built at Solvay’s Specialty Polymers site in Augusta, Georgia, US, and is expected to come on stream in mid2016. Combined with the expansion already underway at its site in Panoli, India (set to increase Solvay’s polymer production at the site by 25%) Solvay’s total PEEK neat resin production capacity will rise to more than 2,500 tonnes worldwide. Solvay says it will invest more than $85m (€75.2m) in these two expansions.The expansions will address the demand for KetaSpire PEEK and AvaSpire PAEK, says Solvay, which play a large role in

light-weighting, reducing energy consumption and in enabling high performance in demanding applications such as healthcare, electronics and automotive. “This major expansion drive will make Solvay the only player in the industry to produce PEEK at two different sites in two different, growing regions,” said Augusto Di Donfrancesco, president of Solvay’s Specialty Polymers Global Business Unit (GBU) in a statement. "The new plant in the United States together with the one in India will provide unmatched security of neat resin supply. These investments reinforce our long-term commitment to our customers worldwide.”Solvay employs about 29,400 people in 56 countries and reported net sales of around €9.9bn 2013.

Plastiblends to invest $10m in Gujrat

lastiblends India is investing $10m (£6.47m) in a new factory in Gujarat. The factory, in the city of Surat, would likely start with 30,000 metric tons of annual production, with the ability to expand to 100,000 metric tons, likely within ﬁve years. “We are investing around $10m in the plant,” said SV Kabra, chairman and managing director Kolsite Group, the parent company of Plastiblends. “We have already procured the land and within a year the plant would commence production.” Speaking about future expansions the company is targeting a fourth masterbatch production facility, in Kolkata having a capacity of 15,000 metric tons a year.The expansions would substantially boost its capacity.

Arkema acquires Bostik

rkema has finalised the acquisition of Bostik from Total, bringing what it says is the world's No. 3 adhesives provider into its portfolio. Arkema of Columbes, France, said it financed the acquisition in three phases, totaling about $2bn (€1.83bn). It first had a hybrid bond issue of about $800m (€734m) in October and then conducted a share capital increase of about $400 million in December. Finally, it conducted another bond issue of about $800m

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(€734m) with a 1.5% coupon. Bostik will constitute a new business unit Specialty Adhesives — within Arkema's High Performance Materials segment. Bernard Pinatel, Bostik's former CEO, has been appointed to Arkema's executive committee and will succeed Pierre Chanoine, who is retiring. Pinatel will take over Chanoine's role as head of the High Performance Materials segment and remain the managing director of Bostik. Arkema estimated Bostik's sales at about

$1.71bn (€1.57bn). Arkema estimates Bostik will bring its sales to about $8.67bn (€8bn) based on 2013 pro forma consolidated revenues from the two ﬁrms. Arkema now employs about 19,000 worldwide. Arkema consists of three business segments — High Performance Materials, Industrial Specialties and Coating Solutions. Arkema's support will allow Bostik to accelerate its growth into markets where it does not have a strong presence.

BUSINESS NEWS

Orpic prequalifies 4 EPC packages for proposed Liwa Plastics Industry

man Oil Refineries and Petroleum Industries Company (Orpic) has prequalified 19 companies or consortia to work on four different engineering, procurement, and construction (EPC) packages for its proposed US$3.6 bln Liwa Plastics Industries Complex (LPIC) in Sohar. The companies have been finalised following prequalifying companies to offer tender for the project in January 2015. Scope of work under the EPC packages includes construction of steam cracker and polymer units, a natural gas liquids (NGL) extraction unit and an natural gas liquid (NGL) pipeline from Fahud to Sohar. For the steam cracker unit, Orpic has selected joint venture (JV) CB&I Nederland, / Saipem / CTCI Corporation JV Daelim Industrial / Petrofac International

Limited Hanwha E&C Corporation, JV Toyo Engineering Corporation / GS Engineering & Construction. Daelim Industrial JV GS Engineering & Construction / Mitsui JV Linde Engineering Dresden/ ThyssenKrupp Industrial Solutions JV Saipem / Sinopec Engineering (Group) Tecnimont, have been selected for polymer units. For natural gas liquids extraction unit, Orpic has finalised Bechtel JV GS Engineering & Construction/ Mitsui Petrofac International Saipem JV SK Engineering & Construction / Larsen & Toubro Hydrocarbon Engineering. Bechtel Dodsal Engineering & Construction Larsen & Toubro Hydrocarbon Engineering Punj Lloyd Saipem have been ﬁnalised for the NGL Pipeline.

Amut buys Dolci and Bielloni

mut SpA, the Novara, Italybased maker of extruders, thermoforming machines and plastics recycling equipment, has acquired the Italian company that makes Dolci and Bielloni packaging equipment. Bielloni Converting SpA bought the Dolci brand of ﬁlm processing equipment three years ago. The operations are based in Biassono, Italy.Dolci Bielloni manufactures printing and slitting rewinding machines, blown and cast films for multilayer film, coating and

laminating lines. The company’s film lines make a variety of products such as stretch film, silage, barrier, technical, medical, diapers and masking. Amut CEO Mauro Drappo said the company, now operating as Amut Dolci Bielloni, is broad-based. “We constantly work to be considered by our customers as a sole partner, being able to offer the most complete range of machines for the plastics extrusion, thermoforming and recycling field.”

SSF Plastics acquires 100% equity shares of Nypro Forbes Products

SF Plastics, has acquired 100% equity shares of Nypro Forbes Products for an undisclosed consideration. Nypro, a public limited unlisted company, is a joint venture between Nypro, USA, and Forbes Campbell Finance, which is part of the Shapoorji Pallonji Group. Nypro is engaged in the manufacture of injection moulded components and injection moulds. Nypro's product portfolio comprises plastic components for mobile handsets, set top boxes, modems, industrial engineering parts, drug delivery devices, general medical and surgical devices, razors, tooth brush handles, caps, closures and dispensers. The company also has a manufacturing facility spread over seven acres providing SSF enough room to expand in future as well. With this acquisition SSF would now be able to have a hold on its first manufacturing facility in South India, with backward integration by way of a modern inhouse mould-making facility and increased ﬂexibility of serving its customers in the southern India.

• March 2015 • Plastics News

BUSINESS NEWS

BASF increases 2014 earnings by 0.5%

hemicals giant BASF had achieved its goal for 2014, increasing earnings, “despite the disappointing economic development in Europe, following the publication of its latest ﬁnancial ﬁgures”.

shareholders’ meeting,” said Bock. This represented an increase of 3.7% versus the previous year. Based on the year-end share price for 2014, BASF shares again offer a high dividend yield of 4.0%.

Overall, sales were up 0.5% to €74.3bn, with earnings before interest and tax and special items (Ebit) up 4.0% to €7.4bn. In the fourth quarter of 2014, sales dipped by 0.6% to €18.0bn, while Ebit before special items rose 2.8% to €1.5bn.

For 2015, the company is forecasting a 4.2% growth in global chemical production, an average euro/dollar exchange rate of $1.20 per euro and an average Brent crude oil price of $60 to $70 per barrel.

Kurt Bock, chairman of the board of executive directors of BASF, said: “We grew profitably. We further strengthened our chemicals business and in turn improved our margins. We have our costs ﬁrmly under control. This is an outstanding achievement of the entire BASF team. “We stand by our dividend policy and will propose a dividend of €2.80 per share at the annual

Bock added: “The outlook for the 2015 business year is subject to signiﬁcant uncertainty. Oil and raw material prices are volatile, as are currencies; the emerging markets are growing more slowly; and the global economy is being dampened by geopolitical conﬂict. For 2015, we nevertheless anticipate somewhat stronger growth in the global economy, industrial production and the chemical industry than in 2014,” said Bock.

Evonik announces sales up 2% to €12.9bn for 2014

ermany-based chemical company Evonik has announced its annual ﬁnancial results, reporting its sales were up 2% from 2013 to €12.9bn in 2014. The company’s EBITDA was down to €1.9bn in 2014 from €2bn in 2013, which Evonik states is within its forecasted range. Evonik states that high volumes, up 3% on 2013 and lower selling prices, down 1%, gave it growth of 2% for

Plastics News • March 2015 • 60

2014. Ute Wolf, chief financial ofﬁcer of Evonik said, "The fourth quarter brought a turnaround: although adjusted EBITDA was lower than in the third quarter for seasonal reasons, it was up year-on-year for the ﬁrst time in three years." Evonik is active in over 100 countries around the world and in 2014 employed more than 33,000 people.

One reason for this was the lower oil price, he added.“Ebit before special items in 2015 will likely match the previous year’s level. The company expects considerably larger contributions from performance products, functional materials and solutions and agricultural solutions. “Ebit before special items in the chemicals segment is likely to decline slightly because of expenses for starting up several plants. The earnings contribution of the oil and gas segment is expected to decrease considerably due to the lower price of oil.”

Shin-Etsu plans investment in Thailand

apan based Shin-Etsu Chemical has announced plans to expand production capacity at its silicone monomer and silicone polymer plants in Thailand, with a total investment of around JPY20 billion (US$165 mln). Shin-Etsu will expand production capacity at its silicone monomer plant in Thailand by 50% to 105,000 tpa from the current 70,000 tons. Meanwhile, production capacity for silicon polymer at the company's Thailand facility will increase by about 40% to 74,000 tons from 54,000 tons. This expansion project is scheduled to be completed in 2017.

PRODUCT NEWS

KraussMaffei increases size for Weber

raussMaffei has commissioned an injection moulding machine with 5,500 tonnes of clamping force, its largest machine to date. The MX 5500 – 75000 machine has been operating since October 2014 at Weber’s plant in Rhenish Haan, Germany, producing large-volume waste containers for the global market.The increased machine size enables Weber to expand its manufacturing capabilities and purchase new moulds. It is targeting production of large waste containers with volumes of 660 to 1,100 litres. The company has also bought an MX 4500 - 75000 machine from KraussMaffei. “The manufacturing of large volume containers for waste disposal requires the use of large moulds. The high shot weights and long ﬂow paths require

high clamping forces,” said Helmut Guntermann, managing director at Weber. KraussMaffei said there are important features in the design of its large machines, including the solid design of the machine bed and the mould ﬁxing platens as well as the lengthened and widened sliding shoes. An added beneﬁt is the guide for the tiebars in the movable mould plate across the entire opening width of the clamping unit. These features “provide the best conditions for operation with process reliability using heavy moulds of up to 150 tons”, said KraussMaffei. The company also highlighted the hydromechanical twin-platen clamping unit in the large machines of its MX series. The new MX 5500 and MX 4500 are both equipped

BYK developes Scona TPPP 9212

ermany-based additives firm BYK has developed a new coupling agent for use in polypropylene (PP) glass fibre compounds, Scona TPPP 9212. The new agent has a high content of chemically bonded maleic anhydride (MA). The MA groups of this coupling agent react with the amino groups of the silane of the glass fibre sise, thereby producing what the company describes as a “very stable structure”. The content of 1.8% maleic anhydride is claimed to be exceptionally high, enabling considerable improvement to be achieved in the compounds’ mechanical properties, even with a low dosage. Scona TPPP 9212 is the latest addition

to the range of Scona coupling agents for use in PP glass fibre compounds, which are all based on BYK’s solidphase grafting process. This gentle manufacturing process requires relatively low temperatures leading to a claimed reduction in the number of cleavage products compared to melt grafting. An additional flushing process following the chemical conversion removes volatile components, resulting in the coupling agent having a very low VOC content. This low VOC content permits the processor in turn to manufacture PP glass fibre compounds with extremely low VOC emissions, as demanded by the automotive industry, for example.

with an LRX 1000 linear robot handling unit. “It is particularly compact in design, fast in production and lowmaintenance in operation. The locking system is designed for short cycles with precise positioning. Thanks to platen parallelism, the mould is protected and high part quality is ensured,” said KraussMaffei. “Furthermore, the MX series scores points with its high melt quality and superb shot weight consistency,” said Klaus Wimberger, head of design engineering at KraussMaffei. The KraussMaffei design engineering department worked closely with the team at Weber on the design and implementation of the new large machines.

NetComposites develops natural fibre LFTs

hesterfield-based NetComposites has developed injection mouldable long fibre thermoplastic (LFT) Flax/PP and Jute/PP pellets.The pellets, made using pultrusion technology and commingled yarns, are said to offer a competitive alternative to glass LFT and continuous ﬁbre composites and would be suited to light-weighting applications such as automotive interiors. The ﬁrm is currently working with an automotive trim supplier to develop an interior panel using Flax/PP pellets.

• March 2015 • Plastics News

PRODUCT NEWS

Tosaf developes New masterbatch UV4120PE

masterbatch that can multiply the service life of UV-absorbing greenhouse films - UV4120PE, has been developed by Tosaf. In comprehensive accelerated weathering tests, the UVfiltering efficiency of conventional films stabilized with an organic UV absorber and a nickel quencher (NiQ) was reduced to about 30% after a period of 9000 h, because the organic molecules undergo extensive dissociation and decomposition. Adding just 0.7% of UV4120PE increased this value to about 80%, while 2% masterbatch boosted the residual UV-barrier to an outstanding 90% at the end of the test period. Very similar results were obtained with films containing an organic UV absorber and an N-alkoxy hindered amine light stabilizer (NOR-HALS). Consequently, depending on region, the total service life of greenhouse

films can rise from just one to over three years. Greenhouse operators who use a UV-absorbing film produced with UV4120PE masterbatch thus benefit from various advantages, all of which ultimately contribute to improving product quality. Beyond extending the general weather protecting properties of such films in the long term, the desired anti-virus effect, which is associated with a high UV-absorbing efficiency, remains largely constant over the entire service life of the film. This effect is due to the fact that many insects which are potential viral vectors, such as thrips and whiteflies, need UV light to navigate and thus will not enter deeply into areas covered by UV-absorbing films. One side effect is that the absence of UV light also prevents bees from

Flow promoter for improved throughput

S-based release agent maker Chem-Trend has developed a specialty product which it claims improves efﬁciency and quality during the rotomoulding process. Flow Promoter is said to help resins adhere to hard-to-reach mould surfaces until moulded parts are structurally sound, then allows for easy and clean release with a surface free of pinholes. “Chem-Trend Flow Promoter allows our customers to gain efﬁciencies in their manufacturing operations,” said Devanir Moraes, Chem-Trend president and CEO. “It

Plastics News • March 2015 • 62

is another example of Chem-Trend’s commitment to developing process solutions that help our customers become more competitive in the market.” Flow Promoter helps ensure that the fully molten skin of the formed part remains in close contact with the mould wall throughout the heating and initial cooling cycle. Once the moulded part begins to retain enough structural rigidity to resist collapse, Flow Promoter allows it to release cleanly, quickly and evenly, without any surface abrasion.

entering such areas, which means that such films are not applicable for growing plants which need bees for pollination. One specific advantage which red rose growers can benefit from is that UV-absorbing films have been found to be very effective in preventing the delicate petals of these flowers from blackening.

Agentdraw launches new nonspill 'Magicup'

gentdraw, based in Leicester, has designed the Magicup, which the ﬁrm claims has “antispill” technology. The product made of polypropylene and is entirely recyclable, has been in development for seven years and seen £2m worth of investment. It was unveiled at the Spring Fair at the NEC in Birmingham earlier this month. According to Agentdraw director Darren Parsons, the cup is designed to allow the user to drink from anywhere around its rim.Parsons said the cup was "unaffected by sudden knocks or travel motion and if it tips over, for example at your desk, it does not spill.” The cup is also thermally insulated to keep its contents either warm or cool for a longer period than a disposable, paper takeaway cup. Magicup is manufactured in 20 colours.

PRODUCT NEWS

Phillips-Medisize launches spray applicator

hillips-Medisize showed its plastics-based pharmaceutical devices at the Pharmapack exhibition. The spray applicator for a customer whose design requirements demanded that the product was child-proof (an important factor for the product launch – particularly on the US market) and the container was made of PET. All of its components are produced and assembled under hygienic conditions in the company’s plant in Nürensdorf, Switzerland. Injection moulding and injection stretch blow moulding (ISBM) are used in the spray applicator’s production. In ISBM, the

nozzle section of the bottle is formed in the ﬁrst step, and then the lower part is blow-moulded separately.

IQ (Installation Qualification), on to OQ (Operation Qualification) and PQ (Production Qualification).

This ensures proper sealing of the sprayer which is important to ensure that the product is child-proof. The ISBM container is made of PET and six injection-moulded parts are made of PP or POM. The differently shaped parts require using multi-cavity tools of various sizes on injection moulding machines with clamping forces of 50 to 200 tonnes. Extensive validation procedures were carried out prior to the production launch: from DQ (Design Qualiﬁcation), to

The validation procedures also have the advantage of reducing the amount of non-recyclable materials that have to be discarded during production – an achievement considering the fact that the various plastic parts have to intermesh precisely and that each part has different tolerances that must not exceed 0.03 mm at most.

Aurora Plastics introduces new PVC/acrylic alloy capstock, cellular foams

urora Plastics Inc., a manufacturer of rigid and foam PVC, has introduced a highly weatherable PVC/acrylic alloy capstock designed to withstand the effects of long-term weathering, even in dark colors. The new product is suited for a variety of demanding applications including outdoor trim, windows, decks, siding fencing and railings.

compounds as substrates, the new pelletized PVC/acrylic alloy capstock compound can be applied thinner than standard RPVC capstock to create an efficient, high-performance outer layer. The compound colors easily to match customer needs and can also be streaked to replicate wood or embossed, said Aurora Plastics' information.

For processors working on building and construction applications, the material offers processing characteristics that translate into a more consistent coating, less scrap, a faster startup time and a wider processing window, according to the company. Aurora Plastics will debut the material at NPE2015, booth S-15061. Designed for use with the company's cost-effective interior-grade RPVC or foam RPVC

Additionally, Aurora Plastics has raised the bar with its new low-density cellular PVC foam. Aurora Plastics offers a product line available in the 0.35 to 0.80 density range, which includes some of the lowest density cellular foams in the industry. The end result is a highly lightweight, yet durable, material for an array of interior decorative applications. This will also be showcased at NPE2015.

Cray develops Dymalink 9100

n additive to improve mechanical properties in polyethylene such as yield strength, impact, modulus, and heat deflection temperature (HDT) without significantly affecting density - Dymalink 9100, has been developed by Cray Valley. The fast crystallization of polyethylene has typically limited nucleation as a way to improve mechanical properties. The low loading levels of Dymalink 9100 provide the first way to improve these properties without significantly increasing polyethylene density. “This is a truly novel development for the formulation of highperformance plastic products,” said Anthony Maroszan, global business development manager. “Adding just 1 to 2 percent of Dymalink 9100 can increase stiffness and HDT of high-density polyethylene by 20 to 30%.”

• March 2015 • Plastics News

PRODUCT NEWS

Teknor launches Masterbatches Terraloy® 90017A and 90017B

new series of masterbatches for polylactic acid (PLA) bioplastic increases the heat distortion temperature (HDT) and impact strength of the resin and substantially reduces its cooling time in injection molding, making possible semidurable and durable applications which until now have been closed to standard PLA, will be introduced by Teknor Apex Company at NPE2015. New Terraloy® Masterbatches are based on NatureWorks’ IngeoTM HP PLA and nucleating agent from Takemoto Oil & Fat, and other Ingredients, has opened the way to durable applications. Te r r a l o y ® 9 0 0 1 7 A a n d 9 0 0 1 7 B masterbatches are based on, and are for use with, IngeoTM High Performance (HP) resin. NatureWorks

LLC has developed Ingeo HP resin to provide a higher HDT and greater impact strength than standard PLA, when used with a nucleating agent such as LAK-301 from Takemoto Oil & Fat Co., Ltd. While the nucleating agent can play a critical role in reducing cooling time by promoting the crystallization of PLA, it is difﬁcult to disperse properly in the HP polymer. Combining the nucleating agent with other ingredients, Teknor Apex not only improved dispersion but enhanced the overall property proﬁle of the resin, while shortening cooling time from nearly 300 seconds to less than 40. “While PLA has typically been used in single-service food service products, Terraloy 90017A and 90017B masterbatches open the way for Ingeo HP PLA polymers to be used in semi-

New bio-based lidding films

ew bio-based lidding films have been introduced by Toray Plastics (America), Inc. LumiLid® bio-based, dual-ovenable lidding films are manufactured with Toray's proprietary sustainable resin blends, which are made with more than 50% renewable feedstocks. The new LumiLid films are designed for frozen, wet and dry food, and dairy applications. They are FDA-compliant for use with oven temperatures of up to 400°F for 30 minutes. LumiLid films are also Interstate Milk Shippers (IMS)certified, so they offer another level of assurance for dairy customers. Biobased LumiLid films were created to lessen the impact on the environment,

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as they use fewer petroleum resources while they are being manufactured, and to meet the needs of environmentconscious end users and consumers. In addition, like all LumiLid films, these are solvent-free and may alleviate end-users' concerns about solvent retention, as well as enhance the films' sustainability profile. LumiLid bio-based films have the same superior performance qualities that are characteristic of the LumiLid brand. They have a low seal initiation (SIT), broad seal range, outstanding seal integrity, and an easy peel. They are available in clear, white, and metallized formats.

durable and durable markets due to improved heat resistance, impact properties, and cycle time,” said Edwin Tam, manager of new strategic initiatives.

Kohler launches Purefresh

ohler Co. has come out with a polypropylene toilet seat called Purefresh, that’s equipped with a deodorizer to be used in "loo" of candles and sprays. The Purefresh toilet seat has a built-in ﬁlter system. When you sit down a fan automatically pulls the air in, cleanses it and feeds it back out. It actually deodorizes.” Powered by two D-batteries, the carbon ﬁlter can neutralize odors by itself for six months or be used in tandem with scent packs with scents such as “garden waterfall,” “avocado spa” and “fresh laundry,” which last about a month. The Purefresh seat is an innovation along the lines of the no-touch flush toilets. Those toilets are equipped with sensors that allow users to simply hold their hand over a button to flush, which reduces the chance of picking up germs or leaving them behind. Purefresh offers a lot of features such as quiet-close technology, which prevents slamming by little ones, and a dual LED nightlight that functions as a guide light when the lid is down and a “task light” when it’s lifted.

TECHNOLOGY

Technique to enhance performance of high-efficiency polymer cells

key technique has been identified to enhance the performance of high-efficiency polymer cells, which has the capability to create lighter and more flexible solar devices in the future, by Researchers from the UCLA Henry Samueli School of Engineering and Applied Science. The UCLA researchers led by Yang Yang, the Carol and Lawrence E. Tannas Jr. Professor of Engineering have discovered the main principles required for promoting the development of high-efficiency polymer solar cells. Currently, commercially manufactured solar panels rely on silicon cells to effectively produce

energy from sunlight. However, the main drawback with silicon panels is that they are very heavy to be used as energy-producing coatings for cars and buildings or as portable and ﬂexible power supplies in inaccessible regions. The solution to this problem can be found in polymer cells.The research team has managed to combine different sets of polymers in order to allow gadgets to absorb light from a larger section of the solar spectrum. They also recognised criteria that could pave the way for higher solar cell efﬁciency and absorption of light as researchers continue to process

and develop new polymers. According to Yang, solar cells possessing varied molecular structures or different materials display diverse potential in terms of flexibility, efficiency and cost-effectiveness. Perovskite cells, discovered a couple of years ago, are highly promising with regards to efficiency, however more research is required into these cells. In contrast, the polymer cells have been researched for several years and possess the benefit of being light in weight, as well as economical to manufacture.

Carbon nanotubes can create working circuits with use of a special pen

arbon nanotubes can create working circuits through the use of a special pen that easily creates circuits for the devices. Flexible circuits are created using nanotubes each nearly 20 inches long.Tsinghua University researchers in Beijing, China developed the new technology, which creates circuits that are both ﬂexible as well as highly conductive.

the polymer and high viscosity of the precursor solution as ink," Hui Wu from Tsinghua University said. Nanotube ﬁbers are created by users through lifting the pen, and are then laid out in the desired surface. Fairly precise arrangements can be created by hand, and researchers believe even more intricate designs will be possible using advanced manufacturing equipment.

The ink is created from carbon nanotube fibers in a solution of polyethylene oxide (PEO), a viscous polymer. The electrically-conductive tubes are drawn through the pen by the PEO, a material with signiﬁcant chemical strength. "The drawing technique allow us to achieve very long carbon nanotube ﬁbers mainly due to the high molecular weight of

The nanotube fibers become even more electrically conductive after bending, a result which surprised developers. Tests showed the material became 30% more conductive after being bent 1,000 times. It is possible that flexing alters the shape of the polymer, creating more efficient arrangements of the nanotubes in the fiber. Thinner fibers are more efficient

at transmitting electrical signals than thicker ones, due to the molecular arrangement of nanotubes within the polymer. Although the nanotubeinfused ink is new, the pen used to apply the material is a standard commercial instrument, which could lower costs for future version of the substance. Flexible electronic devices, including solar cells and touch displays, could be created using the new pen. Batteries are among the most challenging devices to design for new wearable technologies, but a new lithium-ion battery uses a yarn made of nanotubes to develop usable cells. Further development of the ﬁbers could result in the creation of various inks, each designed for speciﬁc applications.

• March 2015 • Plastics News

TECHNOLOGY

Breakthrough biomaterials technology opens new avenues for resorbable implants proprietary biomaterial processing technology developed by Proxy B i o m e d i c a l ( G a l w a y, I r e l a n d ) reportedly boosts the strength of materials currently used to manufacture resorbable orthopedic implants by more than 100%.

gains are achieved by maximizing the material's inherent mechanical properties, which are compromised through standard processing techniques such as injection molding and extrusion, writes Proxy Biomedical.

By increasing the strength and toughness of resorbable materials, Proxy Bio-XT could be a disruptive technology for implant design, enabling new applications that currently are not considered suitable for resorbable products, according to the company.

In addition to opening up new application areas, Bio-XT technology allows the introduction of highly porous products that promote ingrowth and tissue regeneration and low-profile implants that use less material without compromising product strength, according to the company.

The proprietary processing technology optimizes the material's microstructure, which is physically orientated and reinforced but not chemically changed. The performance

Bio-XT can be applied to any resorbable polymer or biocomposite blend, enabling its use for improvements to existing product

Injectable polymer aids blood clotting

n injectable polymer - polySTAT, that could save people with critical injuries from bleeding to death has been developed by University of Washington researchers. When the body's normal ability to create a blood clot fails, researchers say PolySTAT immediately works to strengthen special ﬁbers, called "ﬁbrin" which reinforce the blood clot. "It's like the difference between twisting two ropes together and weaving a net," said study co-author Dr. Suzie Pun. "The cross-linked net is much stronger." Initial studies found 100% of rats

Plastics News • March 2015 • 66

injected with PolySTAT survived injuries to the femoral artery that normally would have been fatal. Researchers say the treatment could be particularly useful for wounded soldiers in the battleﬁeld and for car accident victims. PolySTAT does not need to be refrigerated or frozen, so it could become part of a standard kit for medics."This is something you could potentially put in a syringe inside a backpack and give right away to reduce blood loss and keep people alive long enough to make it to medical care," said study co-author Dr. Nathan White.

families which leverage material grades that are well understood by the clinical and regulatory community.Proxy Biomedical provides biomaterials design, development and manufacturing services to global Tier 1 medical device companies

BASF and SGL wrapping up carbon fiber lightweighting study

hemical giant BASF SE and Germany-based carbon company SGL Group have announced that they have concluded joint research of a new composite material system which aims at enhancing the costeffectiveness of manufacturing thermoplastic carbon-fiber composites which combines carbon ﬁber with nylon. BASF said that a carbon-fiber surface specially designed for the matrix system and combined with tailored thermoplastic reactive systems so that lightweight structural components for industries such as the automotive industry can be manufactured easily and quickly.The study looked at processing through thermoplastic resin transfer molding and reaction injection molding.

TECHNOLOGY

Implantable polymer fibers could revolutionize neural prosthetics

ew polymer fibers that are capable of transmitting multiple brain signals simultaneously, delivering drugs, and wirelessly recording brain functions have been developed by scientists at the Massachusetts Institute of Technology (MIT). The new technology improves on many of the drawbacks encountered in traditional neural prosthetic devices. The fiberfabrication technology was pioneered by Yoel Fink and re-adapted for neural indications by a team lead by Polina Anikeeva. The fibers are composed of a number of different channels, including optical waveguides to carry light, hollow tubes to carry drugs, and electrodes that can carry electrical signals. The completed fiber is approximately the width of a human hair, according to MIT News reports. Sarah Felix, lead research engineer at Lawrence Livermore National Laboratory and member of ASME, said: “Among the engineering challenges associated with neural prosthetics is the biocompatibility of the implant. Research suggests that polymer is more compatible with the human body than the silicon in conventional neural probes used in neuroscience studies.” Anikeeva explained that because conventional methods have used harder and stiffer materials, ordinary movement could cause tearing and damage to surrounding neural tissue. In comparison, this new material will not trigger an immune response, break down, or release toxic chemicals into the body. Subsequently, the materials can remain in the body much longer. “We’re building neural interfaces that will interact with tissues in a more

organic way than devices that have been used previously,” said Anikeeva in the most recent MIT News article. Furthermore, the multi-functional capabilities of the fiber could enable scientists to get a much clearer picture of brain functions and pharmaceutical efficacy than any single-function neural probe can provide.John Rogers, a professor of materials science and engineering at University of Illinois at Urbana-Champaign, was not connected with the research but took a look at the study’s findings. “These authors describe a fascinating, diverse collection of multi-functional fibers, tailored for insertion into the brain where they can stimulate and record

neural behaviors through electrical, optical and ﬂuidic means. The results significantly expand the toolkit of techniques that will be essential to our development of a basic understanding of brain function,” Rogers told MIT News this year. Neural prosthetic research is a growing and promising ﬁeld with innumerable applications including the study and treatment of many neurological disorders. ASME reports that the National Institute of Health spends $6.5 million on neural prosthetic research each year. Anikeeva and Fink’s co-authored study was published in Nature Biotechnology.

Sustainable high performance recycling plant from waste

technologically advanced plastics recycling plant named Urban Polymers has been commissioning by Canada Fibers Ltd. (Canada Fibers). The new venture will focus on creation of pure, homogeneous plastic materials from post-consumer and post-industrial waste, using state-of-the art equipment and additive formulations sourced globally. Urban Polymers will commence operations at a 160,000 sq ft facility located in North Toronto. During its initial phases of development, Urban Polymers will focus on production of polyethylene terephthalate (PET) ﬂake material, as well as production of compounded polyethylene (PE) and polypropylene (PP) in pellet

form. PET is the primary source of material for beverage bottles and single serving food containers, with PE and PP utilized to produce packaging for other liquids including household detergents. Urban Polymers is configuring its operations to provide unrivaled purity and consistency for plastic processing customers, with capacity to produce 25 mln lbs pa of PET and 11 mln lbs pa of PP/PE during its initial phases of development, representing a signiﬁcant increment to recycling infrastructure in the country. "We simply aim to provide plastics processors with a sustainable complement to prime materials," noted Mark Badger who is leading Urban Polymers.

• March 2015 • Plastics News

IN THE NEWS

Kaohsiung government introduces draft of petrochemical regulations

set of draft rules has been published by the Kaohsiung government to regulate the petrochemical industry in the Taiwanese city. The regulations order companies that bury petrochemical pipelines in Kaohsiung to move their headquarters to the city by the end of 2016, or risk losing access to the pipelines. The ‘Rules on Existing Industrial Pipelines’ will be implemented pending approval by the city council and review by the central government, as per www. wantchinatimes.com. According to the city government, there are currently 89 underground

petroleum pipelines in downtown Kaohsiung, owned by 13 companies. Only three of these companies, Formosa Petrochemical Corp., LCY Chemical Corp. and Grand Pacific Petrochemical Corp, are headquartered in Kaohsiung. The aim of the new regulations is to encourage cooperation between the companies and the government, and to ensure Kaohsiung's safety following gas explosions last year, which killed 30 people and caused extensive damage to the city. However, the government has faced backlash over the decision, with the Ministry of Economic Affairs noting

that the regulations counteract the spirit of free economy, are probably unconstitutional, and will damage Taiwan's investment c limate Vice Economics said that the regulations raise several questions, including the issue of whether it is appropriate to link an enterprise's headquarters location and its pipeline maintenance. There are also concerns that the regulations may have strayed from the spirit of free economy, and would adversely affect business operations and investments, and deter foreign companies from setting up headquarters in Taiwan.

Exide closes US battery recycling plant

xide Technologies is immediately closing its lead-acid battery recycling facility in Vernon, California, in the US, admitting felony violations and agreeing to pay millions of dollars to tear down the site and clean neighbouring land. In what is being called a non-prosecution agreement, the US company agreed to “immediately and permanently cease recycling operations” at the facility that’s been open since 1922.

residents, but the battery containers and covers are made of plastic. Most automotive battery containers and covers, according to the Battery Council International trade group, are made from polypropylene. Spent batteries are crushed in a hammermill, with broken plastic separating from lead and heavy metals. The plastic is then recycled and typically made into new battery cases.

Exide has owned the controversial location since 2000, when it purchased the facility from GNB Technologies, according to the agreement.The US Attorney’s Ofﬁce in Los Angeles has agreed to not prosecute the company “if Exide is in full compliance with the material obligations under this agreement.” The lead in batteries is the environmental concern of area

A typical lead-acid battery contains 60-80% recycled lead and plastic, according to the US Environmental Protection Agency. At peak operations the facility handled 40,000 batteries a day, crushing them to separate the different parts — acid, lead and plastic. “The plastic is rinsed, loaded into van trailers, and transported to an off-site facility for reprocessing

Plastics News • March 2015 • 68

into new, resin-coated plastic pellets which can be used to manufacture new lead-acid batteries and other consumer products,” the agreement reads. Exide, which said it will not dispute any of the agreement’s findings, admitted to illegal storage, disposal and shipment of hazardous waste. “Exide admits that it knowingly and wilfully caused the shipment of hazardous waste contaminated with lead and corrosive acid in leaking van trailers owned by Wiley Sanders Truck Line, Inc. and operated by Lutrel Trucking, Inc. and KW Plastics of California Inc. from the facility to Bakersfield, California, a significant number of times over the past two decades, in violation of federal law,” the agreement reads.

IN THE NEWS

SABIC collaborates with CIPET, CSIR for quality education in Plastics

ABIC has announced strategic collaborations with two of India’s premier government institutions, the Central Institute of Plastics Engineering and Technology (CIPET) and the Council of Scientiﬁc and Industrial Research (CSIR). SABIC’s Master Umbrella Advisor Program Agreement with CIPET will leverage its expertise and state-of-theart infrastructural facilities for an increased pace of research in speciﬁc areas of polymer processing Computer Aided Design/Computer Aided Manufacturing /Computer Aided Engineering and mold design for plastics and allied industries. The collaboration agreement also supports skills development to drive industry growth through an academic research partnership that provides for an annual scholarship for Ph.D. students researching in the area of SABIC’s interest; support in designing of CIPET’s curriculum to include the latest technology developments; guest faculty from SABIC and providing a six-month internship opportunity to CIPET’s Plastic engineering students at the SABIC Technology Center, Bengaluru, one of India’s most premier, state-ofthe-art research facility. Dr. Ernesto Occhiello, Executive Vice President, Technology & Innovation said, “Collaborative projects with well-established scientific organisations and research centres are essential components of SABIC's global research programme. As Government of India’s two top academic and research institutions, both CIPET and CSIR are natural

partners for SABIC. Through these partnerships, SABIC will be able to leverage these institutions’ multidisciplinary research capabilities to achieve research excellence for SABIC that will greatly benefit the nation. It is also our desire to see that today’s collaboration will create a valueadded ecosystem involving science and technology institutions, talents, industry, customers to beneﬁt the people of India.” Janardhanan Ramanujalu, Vice President, SABIC South Asia & ANZ said, “We ﬁrmly believe that the government’s ‘Make in India’ initiative rooted in the two strategic advantages of research and human capital will be the next growth driver for India. SABIC’s strategy in India is aligned with India’s economic growth plans and we endeavour to provide customers the products, services and solutions they need in their rapid growth path. We are very proud of signing these partnerships today with India’s premier institutions” Shri Surjit K. Chaudhary, Secretary, Department of Chemicals and Petrochemicals, Govt. of India expressed that “this collaboration with CIPET will take a step forward to Polymer and Plastics Industries in the country in line to the make in India vision of Govt. of India for developing new Materials and Technology in the country.” He added, “CIPET and SABIC have joined hands in a partnership that will translate innovations and new technologies for rapid growth of the

plastic /polymers.” The Master Research Alliance Agreement with CSIR paves the way for collaborative research leveraging competencies of CSIR laboratoriesin particular, the National Chemical Laboratory (NCL), Pune; the Indian Institute of Petroleum (IIP), Dehradun; and the Indian Institute of Chemical Technology (IICT), Hyderabad. CSIR has some of the best chemical laboratories in the country, focused on catalysis, polymer rheology, reaction engineering and petroleum processing amongst others. The tie-up also provides for funding to CSIR for Chemicals / Petrochemical / Polymer research in a consistent way over a period of time, as they bring-in unique areas of expertise. Expressing his views on the collaboration between CSIR and SABIC, Dr. M.O. Garg, Director General, CSIR said that “Right from inception CSIR has been engaged with industry: public, private and multinationals. The collaborations have led to development of cutting edge technologies across various industry segments.” Dr. Garg added that “such engagements with industry have been of mutual beneﬁt. The proposed agreement with SABIC is truly synergistic since SABIC is engaged in deploying cutting edge technologies for commercial production of knowledge intensive products.” The present agreement is thus an enabling step for CSIR and SABIC to expand translational research horizons in the area of chemical and petro-chemical industry.”

• March 2015 • Plastics News

IN THE NEWS

India, China likely to see limitations in PVC supply

ndia is set for maintenance shutdowns at two PVC producers in March which keeps the near term outlook firm supported by vivid seasonal demand and bullish expectations, according to ChemOrbis. China is also experiencing supply disruptions on the part of some producers. This is the backdrop against which a major Taiwanese producer is expected to announce new April prices, although it should be noted that sentiment in China is not as ﬁrm as it is in India. India’s Reliance is reportedly planning to shut its 200,000 tpa PVC plant in Baroda for 6 days starting from March 17. India’s Finolex is also reportedly experiencing a shutdown, according to players’ reports. The company has a capacity of 285,000 tpa. Some market players claimed that the company may not resume production before the end of March. Experts feel, “Demand is very strong in India

while we heard that a producer has no material and the arrival of some import cargos seems to be delayed. Thus, we may see further increase announcements from the producer next week. Short local availability may stimulate some buying interest as well.” Another seller agreed commenting, “Locals producers are not be able to provide materials and they have told their customers not to expect materials this month. They will probably lift their offers up.” According to ChemOrbis, converters also expect to see higher levels in the days to come. “Demand has picked up since February and the only problem is tight supply for both local and import cargoes,” some buyers report. The PVC market may remain ﬁrm in the near term, buyers concur, as the construction season has just started. “Local demand is picking up right now whereas demand is actually emerging due

to the shortage. We are optimistic about the near term outlook as PVC prices may not reverse before end May,” a buyer mentioned. Nonetheless, some players stated that a considerable amount of PVC was arriving in India by the middle of this month through the end of the month, which could alleviate the shortage in the coming term. Among ofﬂine capacities in China, Tianjin Dagu and Tinajin LG Dagu, two of the largest Chinese exporters of conventional PVC to Southeast Asia, are both said to be facing some supply limitations. Tianjin Dagu has a PVC capacity of 800,000 tpa while Tianjin LG Dagu has a capacity of 400,000 tpa. China’s Sichuan Jinlu is also set to bring its 340,000 tpa PVC plant located at Sichuan down for maintenance on 23 March. The scheduled maintenance is expected to last for almost one month.

Indonesia conducting feasibility study to evaluate crude palm oil (CPO) as feedstock

he Indonesian government is currently conducting a feasibility study to see if crude palm oil (CPO) could be used as an alternative raw material source for the plastics industry. This could lead to cost cutting and increased use of renewable materials. Indonesia is the world’s largest CPO producer at a production rate of 31 million tpa.The director for basic chemical industries at the Industry Ministry, M. Khayam, said the country was looking

Plastics News • March 2015 • 70

to substitute the use of naphthabased propylene with CPO-based propylene. The Industry Ministry in cooperation with the Agency for the Assessment and Application of Technology (BPPT), was keeping abreast of the recent technological advances in the industry, allowing it to cut back on costs by sourcing cheaper and renewable materials like CPO.According to ministry data, raw materials make up 80 percent of production costs in the

upstream petrochemicals industry, while contributing around 60 percent to costs in the downstream sector. In an effort to reduce the country’s reliance on naphtha as a source material, the director said Rp 25 billion from the 2015 revised state budget was allocated to fund the studies, including for the construction of small test production facilities. Wider implementation of the project is expected to commence in 2016, he added.

ADVERTISER'S INDEX

R R Plast .................................................................................................................................cover Madhu Machines & Systems........................................................................................... Front Inside Cover Anupam Heaters and Controls .............................................................................. ............................. 3 Reliance Polymers ...........................................................................................................................4 Kabra Extrusiontechnik Ltd.................................................................................................................6 Ferromatik Milacron .........................................................................................................................7 Neejtech India ..................................................................................................................................8 USBCO .........................................................................................................................................10 C&G Extrusion Machines....................................................................................................................12 Kunal Exports ................................................................................................................................17 \Forwell Precision Machinery Co., Ltd. ..................................................................................................17 Plastic Technologies ........................................................................................................................18 Toshiba Machines ...........................................................................................................................46 Indplas'15 ....................................................................................................................................47 PlastiVision Arabia 2016 ...................................................................................................................48 E3 Plastech ..................................................................................................................................49 Plastic Park ..................................................................................................................................50 Vodafone .....................................................................................................................................51 Chuan Lih Fa Machinery Works Co., Ltd. ...............................................................................................52 Jandi's Industrial Co., Ltd. ................................................................................................................52 Vijaydeep Moulds & Accessories Pvt. Ltd. . ...........................................................................................72 Zambello Riduttori Group . ............................................................................................Inside back cover Rajoo Engineers . ................................................................................................................Back cover

• March 2015 • Plastics News

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