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PRN: - MCN/200/2015-2017

Issue No. 07

Pages 70

July 2015

Rs. 75.00



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Plastics News MCN/200/2015-2017 Volume 91

July 2015 No. 7

Hon. Editor Mr. Ajay Desai

Report on visit to Udwaria, Distt. Sirohi Rajasthan Report on Visit to Bhubaneshwar, Odisha National Conference on “Potential of Plastics Industry in Northern India

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


13...... AIPMA At Work

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

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Chairman - Editorial Board Mr. Rituraj Gupta

. . . E SSU

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

29...... Company News 33...... Features Choosing the Right Injection Mold Tooling Material, Part 3: Aluminum EU sets news rules for waste disposal and recycling Envisions Lego-Like Roads Made from Recycled Plastic Sub Subsurface drainage Tool for Combating Water loggin

45...... International News 49...... Business News 53...... Product News 60...... Technology 62...... In the News 64...... Notifications

5 • July 2015 • Plastics News

Plastics News •• April July 2015 2015 •• 12 6 Plastics News

Plastics News • April 2015 • 4

7 • July 2015 • Plastics News

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The much - needed 'Stimulus'


fter reporting an 11.6 per cent rise in 2013-14, growth in sales of plastic products industry is expected to have slowed down to 5.4 per cent in 2014-15. The primary reason being a fall in realizations. Polymers are the basic inputs used in manufacturing plastic products. A sharp fall in crude oil prices kept polymer prices under pressure for most of the second half of 2014-15.

This has had its own negative impact (as it has impacted prices of plastic products as well). The decline in crude oil prices also impacted the demand to a certain extent. The largest cost head of the industry is raw material expenses. During the financial year 2015-16, the industry’s raw material expenses are likely to increase by a faster 9.3 per cent. All this will definitely affect manufacturers. Moreoverthere is a negative impact in the manufacturing sector because the Banks are unwilling to reduce the Rate of Interest. The Reserve Bank of India (RBI) cut the repo rate by 25 basis points (bps) to 7.25%, in its second bimonthly review of the monetary policy for the financial year on 2 June as the inflation rate in India was recorded at 5.40 percent in June of 2015 as compared to record low of 4.38 percent in November of 2014. With (assuming) reasonable food management, inflation is expected to be pulled down by base effects till August but to start rising thereafter to about 6% by January 2016, slightly higher than the projections in April. India’s growth forecasts remain at 7.8%for this fiscal year and 8.2% for next, supported by a healthy monsoon and new investment and assuming concrete progress on reform. India’s manufacturers have a golden chance to emerge from the shadow of the country’s services sector and seize more of the global market. McKinsey analysis finds that rising demand in India, together with the multinationals’ desire to diversify their production to include low-cost plants in countries other than China, could together help India’s manufacturing sector to grow sixfold by 2025, to $1 trillion, while creating up to 90 million domestic jobs.

in Manufacturing sector. Besides this, we at AIPMA request the Government to extend us the following benefits to compete with cheap imports mainly from China:1. Streamline Investment Approvals through effective Single Window mechanism like as in the case of Government of Rajasthan. 2. Create Appropriate Labour laws that are conducive to MSME industries. 3. Implement National Skills Qualification System. 4. Resolve all Port related issues for speedy shipment of Goods. 5. Most important is Rationalisation of Tax Regime so as to minimize of disputes. 6. Implementation of GST wef 1st April 2016 without fail. 7. Technology enabled administration across all Government departments like as done in ROC. 8. To phase out all FTAs which are hampering the growth of Indian industries. 9. Ensure more Plastic Parks are established and time bound Government clearances given to all units so as to ensure effective implementation with. The above request, if granted will really could change the scenario of Ease of doing Business in India.

Rituraj Gupta

The fact remains that borrowing costs in India are among the highest in Asia. If banks could reduce its rate (to below the rate of10%), this shall act as great stimuli to the growth

9 • July 2015 • Plastics News

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Let’s adopt ‘Plasticulture’ for the Second green revolution


lastics as we say, is one of the most useful material and if it is not to exaggerate that in to-days world, with new technologies and development, anything under the sun could be made of plastics for betterment of human life.

Ours is an agrarian economy as Agriculture has important role to play in Indian economy. However considering the fact it is very unfortunate that many of our farmers are attempting suicide as last resort for their failure. If I am not wrong, the overall farmer suicides across the country have crossed the 2000 mark and it is something like one cannot accept. For every life is valuable. Climate change and untimely/truant/excessive rains had played havoc with both the kharif and rabi crops this year. India currently supports nearly 16% of world’s population with 2.4% land resources and 4% of water resources. The period of June July is of utmost importance for Kharif sowing. However the fact remains that as many as 140 blocks in 11 districts in the state have received rainfall that has been 50% below normal. And with the State agriculture department officials saying there may be re-sowing in some regions if the dry spell continues for another week makes one wary..

Plastic Impact Sprinkler starting from small nozzle size with low flow rates to large nozzle size with high flow rates. Also Plastics Mulching (Mulching is covering the soil around the plant with plastic film to prevent the loss of moisture and acts as a barrier between the soil and atmosphere) directly affect the microclimate around the plant by modifying the radiation budget (absorptivity vs.reflectivity) of the surface and decreasing the soil water loss. Similarly in case of over pouring wherein the land remains water logged even then solutions like sub surface drainage are available. Indian Plastics industry is making significant contribution to the economic development and growth of various key sectors in the country.

Now this is where plasticulture comes in and can be of immense help. It isadvisable for farmers to opt for logical solutions. Areas where water storage is adequate, farmers can opt for protective irrigation and use sprinklers to watercrops. There are various techniques wherein one can with simple use of technology make things better.

Recently a National Conference on “Potential of Plastics Industry in Northern India with focus to Plasticulture was held in Chandigarh, where it was stressed that there is a need for water conservation through drip irrigation system and one should stop misuse of water at all levels calling upon the farmers to cultivate crop for which less water is required and go for crops diversification. It was also rightly noted that the Plasticulture has the potential to transform Indian agriculture and bring in the "Second Green Revolution". The use of plastics has helped numbers of farmers to increase crop production, improve food quality and save water resources.

Plastic Impact Sprinklers are designed for a wide range of general field usesportable, semi-portable and solid set systems, to meet the demanding needs of modern, economic irrigation systems. One can have wide range of

I think there is a need to encourage Plasticulture and create larger awareness that will not only help the Indian plastic sector to realize its potential but also avoid regrettable suicides.

Hon.Editor Ajay Desai

11 • July 2015 • Plastics News

Plastics News • July 2015 • 12

43 • April 2015 • Plastics News

Aipma at work

Report on visit to Udwaria, Rajasthan


meeting was held on June 22, 2015 with Representatives of Rajasthan Government regarding the Plastic Park Site Udwaria, Distt. Sirohi Rajasthan. The Representatives included Shri Narendra Patwa, Assistant Regional Manager, RIICO,and Shri Manohar Singh Rana, Assistant General Manager, DIC whereas AIPMA delegation was led by Mr. Rituraj Gupta President AIPMA, along with Shri Kailash Murarka, Chairman, PVI 17. Shri R.K Aggarwal, Vice President (North Zone) Shri Haren Sanghavi, Hon. Secretary, AIPMA Shri Mohan Jain, Past President Shri Deepak Ballani. The meeting was successful and very positive. The Plastic Park Site at Udwaria is a prominent place and following observations were made: i)

The total area of the site is around 100 Acre and Plastic city site is right on the Ahmedabad expressway (NH) It is also learnt that Container depot is coming up on one side of the proposed park.

xiv) Level of the site is around 8-10 feet below the road level. Filling will have to be done by individual units (will depend on their design and requirement). xv) Water (Ground water) is available. In conclusion, the site is very good and ideal for the Plastic city/Park. Suggestions: 1. AIPMA should pursue this further with Government of Rajasthan without any delay. As this is a premium land, we have been suggested to take this forward with Rajasthan Government without any delay. 2. A follow -up meeting may be organized with Industry Minister, Industries Commissioner, MD RIICO etc. 3. Suggested product segments:

• Automotive and Engineering Plastics

ii) Main railway line is on the rear of the site. Nearest railway station is Swaroopganj (4 km. Nearest major railway station is Abu Road (25 km)

• Packaging -Rigid and Flexible

• Consumer Goods Packaging

iii) Around 15 - 20 direct trains from Mumbai & Delhi to Abu Road.

• Health care products / Pharmaceuticals Disposables

• Consumer goods-Household segments, any other suggested by AIPMA

iv) Nearest airports are Ahmedabad & Udaipur. v) Dedicated Freight corridor (part of DMIC) is coming up very close to the site.

4. Rajasthan Government should be suggested to do the following:

vi) 132 KVA electric substation is coming up near the site.

A. Form a SPV with AIPMA as one of the stakeholder.

vii) Many institutions/colleges are located in the vicinity (for skilled work force)

B. AIPMA will promote the Plastic Park within the industry

viii) Semi -skilled work force is easily available at reasonable cost.

C. AIPMA will shortlist interested units and forward to Rajasthan government for due diligence and final allotment

D. Time bound development work of the Plastics Park should be ensured by Government of Rajasthan

E. Steering committee for regular monitoring and discussions (AIPMA as one of the main member)

F. Incentives(such as subsidised land rates, interest subsidy, VAT reimbursement, Stamp duty waiver, power subsidy etc.) maybe announced to attract the units. Should be very competitive in comparison to plastics parks in other states.

ix) Abu road (nearest town) is equipped with all basic infrastructure and residential facilities x) Plastic city site distance by road to Ahmedabad - 220 kms (3-4 hours), Udaipur 130 kms (2.5 hours), Kandla Port -350 km. xi) The site is around 45 km from the Gujarat border. xii) Out of 100 acre, about 60 Acre will be used for actual allotment to the units, balance 40 acre will be utilized for common amenities such as roads, green space, drainage, common facility centre etc. xiii) Land is plain without much undulation

13 • July 2015 • Plastics News

Aipma at work

Report on Visit to Bhubaneshwar, Odisha


meeting was held on June 24 , 2015 at Bhubaneshwar the proposal at the earliest (within a month).Dr Gor between Dr. Ashutosh Gor , Past President AIPMA along with also discussed the state partner proposal with Principal Shri Deepak Ballani, Special Advisor with Shri Debi Prasad Secretary Industries. Mishra, Hon'ble Cabinet Minister Department of Industries, He has also requested IPICOL (Industrial Promotion & Shri Panchanan Dash, Secretary, Department of Micro Small & Investment Corporation of Odisha Ltd.) to examine the Medium Enterprises Shri Sanjiv Chopra, Principal Secretary, same in light of promoting the Plastic Park. He was quite D e p a r t m e n t positive on the proposal. of Industries, A meeting with the Hon’ble Minister for Industries, Mr Shri P Mohanty, Debiprasad Mishra took place In his office at Bhubaneshwar Joint Secretary, on 25th June wherein proposal for Odisha as Partner state Shri Debi Prasad Mishra - Hon’ble Minister of Department of for PVA 2016 was submitted and discussed thereafter. Industry, Government of Odisha, Industries to Advantages and merits of participating in PVA 2016 were Bhubaneswar discuss the proposal for highlighted. Shri Debi Prasad Mishra - Hon’ble Minister of Odisha to be Odisha state with PCPIR Policyof inOdisha, place is looking for large Industry, Government State Partner in investment in Petrochemical Industry. Bhubaneswar PVA 2016 . Presence of Major Plastic Raw Material Manufacturers As we know of Gulf region G o v e r n m e n t at PVA would Dr. Ashutosh Gor, Past President AIPMA with Shri Debi Prasad Mishra - Hon’ble of Odisha has definitely help Minister of Industry, Government of developed an in marketing Odisha, Bhubaneswar Integrated Odisha Plastic Plastic Park in Paradip near IOCL Refinery. 120 acres has Park at Paradip. been allotted to the Plastic Park Rs. 40 crore grant has During the been approved by Govt of India. discussion, the CIPET will operate the Common facility centre in the park. minister shared Project is to be operationalized in 2016. Land allotment that the state to start by the end of 2015. Site-development activity is was looking to underway and is expected to complete by mid 2016.Odisha hold a Global Government has sought assistance/help from AIPMA for Dr. Ashutosh Gor, Past President AIPMA Investor meet Shri Deepak Ballani, Special Advisor, Shri promoting the park. i n 2 0 1 6 a n d Panchanan Dash, ISS Secretary Department Shri Panchanan Dash, ISSkeen Secretary Secretary, MSME has showed interest Department in participatingof MSME, of MSME, Government of Odisha, they could Bhubaneswar. Government in PVA 2016. of Odisha, Shri Panchanan Dash, ISS Secretary Department ofPVA MSME, look at for Bhubaneswar. He has requested AIPMA to submit a proposal for exhibitor inviting investors. Government of Odisha, participation (complete package including space, travel, Bhubaneswar. Overall he was quite positive about PVA participation and accom modation etc.) and delegation of visitor (complete package). He informed that there is possibility of Odisha was keen to know about AIPMA and their activity has government subsidizing the cost of exhibitor participation requested AIPMA to send a few copies of Plastis News and visitor delegation. AIPMA has been requested to send magazine.

Plastics News • July 2015 • 14

Shri R. D. Dhiman, IAS, Principal Secretary (Industries), Govt. of Himachal Pradesh

Shri R. D. Dhiman, IAS, Principal Secretary (Industries), Govt. of Himachal Pradesh

Mr. Harish Dharamsi – Chairman Plastivision Arabia 2016 met Shri Shyam Rajak, Hon’ble Minister for Industries and Food, Govt. Of Bihar

Mr. Harish Dharamsi – Chairman Plastivision Arabia 2016 met Shri Shyam Rajak, Hon’ble Minister for Industries and Food, Govt. Of Bihar

15 • July 2015 • Plastics News

Aipma at work

National Conference on Potential of Plastics Industry in Northern India


he 4th “National Conference on “Potential of Plastics Industry in Northern India was held on June 26, 2015 at Hotel Mountview, Chandigarh. The focus of the conference was to discuss potential of plasticulture- micro irrigation and Post Harvest management.

Mr. Rituraj Gupta, President AIPMA, attended “National Conference on “Potential of Plastics Industry in Northern India. Addressing the audience at the conference the President informed everyone about the All India Plastics Manufacturers Association (AIPMA) and its various activities. He also thrusted upon the PVA 2016/ PVI 2017 and the scale of these trade fairs. He also discussed in length the advances in plasticuluture and the various initiatives taken by AIPMA to promote the Plasticulture. The conference was jointly organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilisers, National Committee on plasticulture applications in horticulture, Punjab Agriculture University (PAU) and different industry associations. The event was inaugurated by Punjab Agriculture Minister Tota Singh who also released a knowledge and strategy paper prepared by FICCI with the help of Tata Strategic

Plastics News • July 2015 • 16

Management. Israeli experts have offered to extend their technical know-how to Indian farmers to improve the yield of their crops and, at the same time, conserve water used for irrigation. Dan Alluf, counsellor, International Development Cooperation, Science and Agriculture, Embassy of Israel, speaking on the topic “Micro-irrigation and protected cultivation — Perspective from Israel at the national conference on potential of plastic industry in North India with special focus on plasticulture (plastics for agriculture) and post-harvest management, assured of help to the indian farmers. He told farmers and industrialists from Punjab and Haryana how Israel had excelled in micro-irrigation and how it was using plastic sheets to conserve water. “Let us work together. We can help you improve in terms of yield. For example, mango has been grown in India for hundreds of years and has acquired a status of a legacy in Indian farming and culture. We, in Israel, started growing mangoes 30 years ago but we have attained expertise to get better yield from the crop. “We regularly prune mango trees to keep the height of their canopy to just about two metres which makes it easy for farmers to pluck the fruit without damage even if it falls from the tree,” and so we are ready to help you increase the yield.

Aipma at work

SPMA's new office in Rajkot

Mr. Manoj R. Shah – Hon. Jt. Secretary, AIPMA congratulated Saurashtra Plastics Manufacturers’ Association (SPMA) President Mr. Karsanbhai Mavani, Past President Mr. Hareshbhai Gandhi and Office Bearers for purchasing new Premises in Rajkot.

AIPMA congratulates Mr. J. K. Patel

Hon’ble Chief Minister of Gujarat Smt. Anandiben Patel handing over the Best MSME Award for Quality and Environment to Shri J. K. Patel of M/s. Elegant Polymers & Hon. Secretary of Saurashtra Plastics Manufacturers’ Association (SPMA).

17 • July 2015 • Plastics News




Plastics News • July 2015 • 18


AIPMA JOB-FAIR SEASON 2015 SUCCESS REPORT 4 CANDIDATES WERE CONFIRMED & RECRUITED AT THE EVENT ITSELF . Many more were shortlisted for second round of interviews ….



reputed Companies Participating In This Season

•Prince Pipes & Fittings Pvt. Ltd. •Finolex Industries •Prince Industries •Samruddhi Industries •Sunpet •Pearl Polymers Ltd. •Varahi Ltd. •Reifenhauser India •Expo Machine Tools •Dalmia Polypro •Sigma Chemtrade Pvt. Ltd •Madhu Machines & System Pvt. Ltd. •DP Polymers •Vinit Performance Polymers Pvt. Ltd.


Innovations done in this season : • Priority Interview tokens were issued to all 14 yrs+ experienced candidates and Separate registration counter and waiting area was created for them which resulted in more than 15% attendance from this segment in this season. •Timing of interview were declared in the job list for candidates to plan their travel arrangements accordingly.

Thanking you Mr. Kishore Sampat, Chairman - Job and Career Fair

19 • July 2015 • Plastics News

Plastics News • July 2015 • 20

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Plastics News • April 2015 • 40

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23 • July 2015 • Plastics News

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25 • July 2015 • Plastics News

Plastics News • July 2015 • 26 26


PETRONAS selects Axens Technologies for Malaysia’s RAPID project


etroliam Nasional Berhad ( P E T R O N A S ) , M a l a y s i a ’s national oil and gas company has selected Axens as a technology provider for PETRONAS’ Refinery and Petrochemicals Integrated Development (RAPID) project located in Pengerang, Johor, Malaysia.

RAPID is part of PETRONAS’ Pengerang Integrated Complex (PIC) development, which includes six major associated facilities namely the Pengerang Co-generation Plant, Re-gasification Terminal 2, Air Separation Unit, Raw Water Supply Project, Liquid Bulk Terminal as well as central and shared Utilities and Facilities. Developed within a 6,242 acres site in Pengerang, Johor, PIC forms part of the Johor State’s Pengerang Integrated Petroleum Complex (PIPC), which is under Malaysia’s Economic Transformation Programme (ETP) to establish new engines of growth for Malaysia; whilst meeting future energy requirement and strengthening PETRONAS’ position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals. RAPID is estimated to cost US$16 bln while the associated facilities will involve an investment of about US$11 bln. PIC is poised for its refinery start-up by early 2019. Axens was initially selected in October 2010 for a Detailed Feasibility Study, after which their technologies were selected following an open bid in January 2012 on the basis of the best NPV (Net Present

Value), as well as proven long term operating experiences supported by the technology and catalyst’s specific features; hence providing additional benefits to the project. The following technologies from Axens was selected for the RAPID project: Naphtha Hydrotreating (NHT), this process purifies naphtha removing dienes, olefins compounds, sulfur and nitrogen species with a feed capacity of 21,000 BPSD; OctanizingTM a continuous catalytic regenerative (CCR) reforming process for maximizing the production of reformate from heavy hydrotreated naphtha , with a feed capacity of this unit 14,000 BPSD; PrimeKTMa catalytic process achieving hydrotreatment of a kerosene cut, with smoke point improvement and deep desulfurization, its feed capacity is 30,000 BPSD; R2RTMa residue fluidized catalytic cracking (RFCC) process including a double regenerator which enable to crack residue feedstock or vacuum gas-oil into lighter hydrocarbons. The process also includes a propylene recovery section (PRU Section). The capacity of the RFCC unit is 140,000 BPSD of feedstock in two trains; Prime G+TMcatalytic process aiming at desulphurizing FCC gasoline while minimizing the octane loss. It includes a selective hydrogenation reactor/ splitter and hydrodesulphurization reactor/stabilizer. The feed capacity of this unit is 75,000 BPSD.

SK Energy signs naphtha deal with Japanese buyers


outh Korea's SK Energy has signed a six-month naphtha deal with two Japanese buyers at a discount of about US$5/ton to Japan quotes on a free-onboard (FOB) basis. According to Reuters, this deals starts in July 2015. The discount on the deal is significantly narrower than the US$9 discount for a contract in H1-2015. The contract for August 2014-June 2015 was priced initially at a premium of below US$12/ton to Japan quotes FOB for cargoes lifting from August to December 2014. The price was revised in late 2014 to a steep discount of US$9/ ton for cargoes lifting January to June 2015 as the market was flooded with cargoes heading for Asia from the west, including Europe and the Mediterranean. SK Energy, South Korea's top refiner, introduced the term contract last year when it started up a new condensate splitter in July. Traders said SK Energy had, in May 2015, negotiated with the two buyers on cargoes lifting in H2-2015, a time when the market was not yet battered by high supplies and was looking far better than it had in late 2014. But the market took a turn recently after 1.9 mln tons of European/Mediterranean cargoes were provisionally booked to arrive in Asia in July, the highest monthly western volumes expected to arrive in the East since September 2014.

27 • July 2015 • Plastics News


BASF selects Fluor as Global Engineering Partner


luor Corporation has been selected by BASF SE has as its global engineering partner for future chemical and petrochemical plant projects around the world. The services agreement—which was signed at BASF’s chemicals complex and headquarters in Ludwigshafen, Germany, by Peter Oosterveer, Fluor’s chief operating officer, Martin Buschbacher, BASF senior vice president of Global Indirect Procurement, Wolfgang Haas, BASF president of Legal, Taxes and Insurance, and Volker Knabe, BASF president of Engineering and Maintenance—includes conceptual and front-end engineering, detailed engineering, procurement, project management, construction management and other services.“We

are delighted to sign this global agreement with BASF as it marks a successful working partnership established over the past four years through projects undertaken under three regional agreements – Asia, Europe and North America,” said Fluor’s Oosterveer. “We will now be able to leverage Fluor’s global capabilities to provide integrated solutions and deliver chemical and petrochemical plant projects for BASF anywhere in the world.” Fluor will use its global network of offices to execute future BASF plant projects around the world. Prior project experience with BASF in China, Germany, India, Poland, the United States, Spain, Brazil and Malaysia will be fully utilized to enhance project delivery on an ongoing basis.

Honeywell's opens up in Zhangjiagang City Honeywell's Performance Materials and Technologies division has opened a new manufacturing facility in China to produce state-of-the-art catalysts used to make components for plastics production. This new site in Zhangjiagang City, Jiangsu Province, has begun production of catalysts used to covert propane to propylene as traditional sources for this product shrink. The catalysts are used in the Oleflex™ process developed by Honeywell's UOP, a global leader in technology for the oil and gas industries. Over the past four years, UOP has licensed its Oleflex technology to 30 producers globally, including 25 in China. The first two of these new plants came online in China last year. Honeywell announced its plans to add this manufacturing capacity in October 2013. The facility is located in an established, world-class industrial park about 85 miles northwest of Shanghai. In addition to Oleflex catalysts, the site will produce adsorbent materials used in applications including refining and petrochemical production and natural gas processing. Honeywell also is planning production of materials for other fast-growing technologies at the site.

Plastics News • July 2015 • 28

M i t s u b i s h i Chemical expects to restart naphtha cracker at Mizushima


apan's Mitsubishi Chemical Corp expects to restart its naphtha cracker at the Mizushima plant at the end of this Month. The cracker has been shut since May 20 for scheduled maintenance. It's ethylene-making capacity was raised to 570,000 tpa from 493,000 tpa during the maintenance. The expansion comes as Mitsubishi Chemical and Asahi Kasei Corp are set to integrate their naphthacracking operations from April 2016 amid falling domestic demand and cheaper imports from Asia. Asahi Kasei's 504,000 tpa Mizushima naphtha cracker will be shut next February for maintenance, after which it would be scrapped.

Idemitsu Kosan restarts one naphtha cracker at Tokuyama


apanese oil refiner Idemitsu Kosan Co has restarted one of the two naphtha crackers at its Tokuyama plant on Friday following planned repair work, as per Reuters. The cracker had been shut since late May. The Tokuyama plant in western Japan has two crackers with capacity of 256,000 tpa and 367,000 tpa, taking into account annual maintenance shutdowns


Showa Denko to split, transfer phenolic resin business to AICA SDK


t a board meeting, a decision was taken for Showa Denko (SDK) to split and transfer its phenolic resin business to its wholly owned subsidiary AICA SDK Phenol Co., Ltd. SDK and AICA SDK Phenol have concluded an absorption-type company split agreement. SDK took these steps as parts of the procedure for transferring its phenolic resin business to Aica Kogyo Company, Limited (Aica) (TOKYO & NAGOYA : 4206), that SDK announced on April 27, 2015. The agreement is scheduled to take effect on September 1, 2015.

AICA SDK Phenol will deliver 100 common shares to SDK at the time of the absorption-type company split. With regard to the rights and obligations pertaining to SDK's phenolic resin business, AICA SDK PhenoL will succeed to all of these rights and obligations. SDK has been providing its domestic customers with phenolic resins in various states such as liquid, lumps, powder, and grains. However, the size of the domestic market for industrial phenolic resins has been

HPCL likely to drop greenfield proposal


industan Petroleum Corporation Ltd might drop Greenfield refinery proposed near Visakhapatnam and instead firm up joint venture partners for a standalone petrochemical complex by seeking land and tax concessions on a fast-track mode, according to reports from The Hindu . A suggestion to this effect was made by Union Minister of State for Petroleum and Natural Gas Dharmendra Pradhan at a review meeting held by him and Chief Minister N. Chandrababu Naidu with top officials on exploration of oil and gas reserves in Krishna-Godavari basin. Though the project involving an investment of over Rs.40,000 crore for establishing a 15 million ton refinery-cum-petrochemical complex was conceived a decade ago, it hit a roadblock for want of equity partners. The first setback it received was in 2008-09 following backing out of

Mittal Energy and TOTAL of France from the consortium as fallout of global meltdown. This was followed by cancellation of 1500 acres allotted for the project at Atchutapuram by AP Industrial Infrastructure Corporation in 2012 for ‘inordinate delay’ in grounding the project. Though HPCL has completed techno-economic feasibility study to revive the project by involving GAIL and other prospective partners sometime ago, APIIC officials told The Hindu on Wednesday that they were neither aware of the dropping of Greenfield refinery project nor the talk of not going ahead with Petroleum, C h e m i c a l a n d Pe t r o c h e m i c a l Investment Region (PCPIR) between Visakhapatnam and Kakinada. The project envisages expansion of capacity of Visakh Refinery from 8.33 mln ton to 15 mln ton with an investment of Rs.18,412 croree

a little less than 100,000 tons a year for some years now. In order to pursue further growth of this business in the future, it is necessary for phenolic resin manufacturers to make inroads into the foreign markets which are expected to grow. Under the circumstances, SDK had already concluded the final agreement with Aica, which actively promotes phenolic resin business overseas, to transfer SDK's phenolic resin business to Aica. Prior to the transfer of its phenolic resin business to Aica, SDK is scheduled to split and transfer the business to AICA SDK Phenol on September 1, 2015, and transfer 85% of the shares of AICA SDK Phenol to Aica on that day

MCOI begins operation at Texas Mitsubishi Heavy Industries Compressor International Corporation (MCO-I), a U.S. subsidiary of Mitsubishi Heavy Industries Compressor Corporation (MCO), a group company of Mitsubishi Heavy Industries, Ltd. (MHI), has begun operation at its manufacturing and service facility in Pearland, Texas, outside Houston. The newly constructed facility is MCO's first overseas-based compressor manufacturing and service location. The facility will provide one-stop manufacturing, repair and maintenance services for compressors and the steam turbines used to drive compressors, and will also respond to new installation and renewal demand at petrochemical plants.The 17,000 square meter facility is located on a 105,000 square meter (26 acre) site.

29 • July 2015 • Plastics News


PolyOne's Shanghai facility leverages free trade zone


S-headquartered compounder PolyOne opened its new Asia Innovation Center and Asia-Pacific headquarters in Shanghai with a grand opening ceremony attended by local officials and customers. The facility is located in Jinqiao Development Zone, a high-tech park in Shanghai. The center holds laboratory facilities, an interactive product display and a modern training facility.

PolyOne technical and marketing teams will work there on regional and global R&D projects, focusing on high-growth end markets, such as healthcare, packaging, transportation, electronics, and consumer goods, said company representatives.Robert Patterson, president and CEO, spoke at the event. “We continue to invest in Asia so that our customers can innovate and grow, and that’s exactly what will take place through improved

collaboration at our advanced, new Innovation Center.” The centre is in the China (Shanghai) Pilot Free Trade Zone. “This allows us to leverage the zone’s development and align with China’s economic upgrade strategy,” said Christopher Murphy, vice president of research and development and chief innovation officer. “The new facility will improve collaboration, help to fast-track application development and increase speed-to-market for our customers across the Asia Pacific region,” said Patricia Hubbard, global technology director for Specialty Engineered Materials.. “We will be better able to work closely with our customers during the design and development phase and drive innovation and excellence in their end products.”

RIL to shut one crude distillation unit at Jamnagar petrochemicals refinery Reliance Industries Ltd.(RIL) plans to

to carry out necessary modifications

shut down one crude distillation unit

to improve the reliability and

(CDU) at its Jamnagar petrochemicals

performance of the unit, RIL said in

refinery special economic zone for

a statement here. The other three

routine maintenance and inspection

crude distillation units, including

for nearly 10 days in July. This

major secondary processing units,

opportunity would also be utilised

are expected to operate at normal throughput

Plastics News • July 2015 • 30

Roeland Polet to head Business for Royal DSM Engineering


oyal DSM, the global Life Sciences and Materials Sciences company, announced Roeland Polet has been named Business Group Director DSM Engineering Plastics, succeeding Roelof Westerbeek. Roeland Polet joins DSM from the Valspar Company, where he most recently was Senior Vice President Global Industrial and Corporate Development, based in Minneapolis (United States) and Shanghai (China). Roeland is a dual citizen of the United States and the Netherlands who has lived and worked extensively internationally. In his years at Valspar, he has led the Global Industrial Coatings division and has been a member of the company´s Operating Committee. Roeland´s experience spans across DSM business areas, including positions as General Manager in Ticona/Celanese, as well as 10 years of previous experience in DSM Engineering Plastics in the areas of R&D and Marketing.

The handover between Westerbeek and Polet will commence on 3 July 2015. After the handover is complete during Q3 2015, Westerbeek will be engaged in various to be defined projects in DSM until 1 July 2016 when he will leave DSM. He remains based in Singapore


Choosing the Right Injection Mold Tooling Material, Part 3: Aluminum

Kent Seeley


“strongest” aluminum at just about 20RC. Generally speaking, aluminum molds are used in lower volume productions, not exceeding a few thousand parts. In the past, aluminum Aluminum is a material that carries molds became prevalent for low many different opinions, depending volume production molds due to the on whom you talk to. There are also fact that they were easy to machine molding process that lend themselves and less expensive than pre-hard steel. well to aluminum molds, some of Today, that advantage is gone thanks which contradict and challenge some to the latest cutting technology, which of the points below. As an injection treats aluminum and hardened steel molder and mold maker with 50 years equally. In addition, the cost per of experience building aluminum pound for higher grade aluminums molds, we feel it’s important both has exceeded that of pre-hard the pros and cons of aluminum molds steel, leaving pre-hard steel as the are discussed. optimal choice for even low volume production molds. With the cost of higher grades of aluminum being as high as it is t o d a y, m a n y injection molders and mold makers have turned to General standards for the three most common injection mold the softer grades of aluminum, as materials it offers a cost 1 How many parts are expected to savings over steel materials. It is be molded? important to understand that while There are several grades of aluminum there may be a cost savings, there are readily available for the construction implications related to part quality of injection molds. These grades and surface finish. s the earlier articles in our series, we explore when aluminum might be the right material for your next injection mold.

range from general purpose 2024 (soft) up to high-strength aluminum alloys like QC-10 (Alcoa). Due to its alloy make up, materials like these are considered to be one of the

2. What surface finish requirements are expected of the molded part? Most grades of aluminum machine, finish and accept texture proficiently. Most high-end aluminums have the

ability to accept a polished surface, often ranging between a B-1 and A-3 polish. A large concern with aluminum is porosity and inclusions. More common among softer/less expensive grades, porosity and inclusions occur when the alloying process changes and results in a greater level of impurities. This can becomes an issue during the machining process (CNC or EDM). When a cutter or electrode encounters a pocket of porosity or an inclusion, a pit is created leaving an imperfection on the surface of the aluminum. The material then has to be repaired either in the mold (which can be difficult due the welding difficulties of aluminum) or on the part itself with the use of filler and further part finishing (such as paint). Because of this, aluminum may not be the best choice for external and cosmetic production parts. However, because extra finishing cost is seldom an issue and the focus is on up front tool cost, aluminum can be a great choice for prototype tools. 3. What metal conditions exist as a result of the part design and are they conducive of excess wear? In its untreated state, aluminum is a very soft material, especially when compared to the variety of steels available. Because of this, aluminum is susceptible to quick and excessive wear, especially on wiping surfaces. Aluminum molds tend to need more maintenance compared to steel, too. Parting lines can wear quickly, creating flash, and need routine maintenance.

31 • July 2015 • Plastics News

FEATURES Aluminum also has very low (poor) compression strength. If you happen to close the mold on a single part or insert, the aluminum will “hob” and become damaged, requiring expensive repair. For these reasons, aluminum is not well suited for any type of insert or over molding. Lastly, you should consider the dimensional stability. The amount of residual stress in a piece of aluminum can vary quite a bit depending on which area of the plate the material you are machining came from. These stresses can release during the machining process causing significant warpage of the block. It’s best practice to rough machine the block and allow the material to sit for 24-48 hours to relieve the stress prior to machining in detail. Taking the above into consideration, and because of the high pressures and heat associated with most injection molding processes, aluminum molds (especially softer grades) are prone to breakage, and extreme caution must be used when molding parts from this material. You should take caution when trying to mold very tall and thin features under high pressure. This is

especially related to the pressures required to help create cosmetically pleasing parts, like sink free. 4. What type of plastic resin will be used on the molded part? Aluminum is very vulnerable to fast wear and fatigue when high heat or highly abrasive materials are being molded, and should not be considered for any type of production molding. However, it can still be a great choice for extreme low volume (truly prototype) and non-cosmetic parts, even when running such materials. With “high heat” materials, the heat will actually begin to degrade the aluminum and mechanical properties of the aluminum will fall off at around 300 degrees Fahrenheit. This will often result in not being able to achieve the properties of the plastic resin was intended for. One process that lends itself well to aluminum molds, and is not so restricted when considering total expected volume, is structural foam molding. Structural foam molding is an injection molding process that utilizes very minimal pressures during the process, and

results in low levels of stress on the mold itself. Here, the chances of mold failure are greatly reduced and pitting if seldom an issue. Structural foam parts already require post molding finishing and coating (like primer, filler, and paint) in order to achieve a cosmetic surface. Structural foam molding is typically done at an increased nominal wall when compared to conventional molding (typically .250”). Because of this, long cycle times are often needed. Aluminums has 4-5 times better thermal heat transfer than steels, making it an ideal candidate for structural foam molding and allowing for slightly lower cycle times as a result. A wide variety of mold materials are readily available for the construction of injection molds. By considering these 4 basic questions, you can make a more educated choice as to what the correct material is for you. While choosing the best option for your mold is not complicated once you understand the pros and cons of each material, it is a critical part of the process that can affect the success of your project.

Mitsubishi makes first bio-based plastic smartphone screen


harp Corp to commercialize the world’s first bio-based plastic smartphone front panel screen, using Mitsubishi Chemical Corp’s bio-based polycarbonate Durabio. Sharp will use Mitsubishi Chemical’s bio-based plastic for its smartphone screen — a world’s first as biobased engineering plastic has never been used on the front panel of any Smartphone. Most front panels

Plastics News • July 2015 • 32

of smartphones are made of glass, and their susceptibility to cracking has been an ongoing problem. This has led manufacturers to consider polycarbonate and other plastics for the front panels because of their lightweight and increased durability compared to glass. However, most traditional plastics were more prone to cracking upon impact, while others that were impact-resistant tended to

have poor optical properties. Durabio is a plant-derived isosorbide manufactured from glucose as a comonomer replacing bisphenol A. “The choice marks a world-first as bio-based engineering plastic has ever been used on the front panel of any smartphone. Most front panels of smartphones are made of glass, and their susceptibility to cracking has been an ongoing problem,” stated a

FEATURES spokesperson from Mitsubishi. Mitsubishi ‘s Durabio is a bio-based engineering plastic made from plantderived isosorbide, which offers higher resistance to impact, heat and weather than conventional engineering plastics. The company says it also has excellent transparency and low optical distortion Sharp will use Durabio for the front panel of the Aquos Crystal 2 Also the new material exhibits higher resistance to heat, impact and weather than conventional engineering plastics that smartphone makers have been studying as potential glass replacements, as these materials failed to exhibit both good optical properties and resistance to cracking. Manufacturers like Apple have tried using a variety of materials like Sapphire, a crystalline form of aluminum oxide that exhibited better scratch resistant and anti cracking

properties, but without much success; the cost of Sapphire and higher power required for same quality display makes it an unviable option. Going forward, Mitsubishi states that the material could also be used in interior and exterior auto components of both Mazda and Suzuki vehicles.

Late last year major chemical companies including Mitsubishi Chemical, working with the World Business Council for Sustainable Development, published a guide to

help chemical industry customers and stakeholders use more sustainable products. Mitsubishi said that the screen will be in Sharp’s new Aquos Crystal 2 smartphone, which will go on sale from Japan’s Softbank Corp starting in mid-July. “The choice marks a worldfirst as bio-based engineering plastic has ever been used on the front panel of any smartphone,” Mitsubishi said. “Most front panels of smartphones are made of glass, and their susceptibility to cracking has been an problem for long.” The material also overcomes some shortcomings of traditionally available plastics that smartphone makers have been studying as potential glass replacements, as those materials have a hard time having both good optical properties and resistance to cracking, Mitsubishi said. The material is also used in interior and exterior auto components in Mazda and Suzuki vehicles.

EU sets news rules for waste disposal and recycling


U Parliament plenary session has approved a circular economy resolution / Binding rules for waste disposal and recycling and most of the Bioplastics producers have welcome package design proposal. There has been huge debate on it and one can have its reservation as well. However the major concerns include:

Binding targets In its 2 July plenary session, the European Parliament (EP) approved the resolution for a circular economy drafted by Finnish MEP Sirpa

Pietikäinen of the European People’s Party and greenlighted by the EP’s environment committee (ENVI) o n 17 June . The vote, which was welcomed by the plastics industry, would set the stage for the European Commission (EC) to table legislation by the end of 2015, setting binding reduction targets for municipal, commercial and industrial waste. Specifically, the EP resolution calls for binding targets – at both national and EU level – that would increase

resource efficiency by 30% up to 2030, compared with 2014 levels. By 2018, the parliament would like to see a “dashboard” of indicators put in place to measure various aspects of resource consumption. The legislators also urge a ban on incineration of recyclable and biodegradable waste by 2020 and a gradual ban on landfilling (except for some hazardous and residual waste) by 2020, as well as an increase in targets for preparation and reuse to at least 70% of municipal solid waste and 80% of packaging waste by 2030. “This is a paradigm shift, a

33 • July 2015 • Plastics News

FEATURES systemic change, as well as a huge, hidden business opportunity,” said Pietikäinen, adding that “it can be created only by helping a new business ecosystem to emerge.” An estimate drawn up under the leadership of former EC president Manuel Barroso calculates that improving resource use could lead to net savings of around EUR 600 bn for EU businesses, public authorities and consumers, while at the same time reducing annual greenhouse gas emissions by 2-4%. What’s more, a 30% increase in resource productivity by 2030 could boost European GDP by nearly 1% and create 2m sustainable jobs. In rare accord, associations representing the plastics industry, such as PlasticsEurope (Brussels/ Belgium) and Plastics Recyclers Europe (PRE, Brussels; ) praised most of the EP’s proposals in chorus with European Environmental Bureau and Friends of the Earth. Adding bioplastics producers’ voice, European Bioplastics (EUBP, Berlin / Germany ), stressed that the EU needs to use natural resources more efficiently. Calling the EP vote a “strong call” for the EC to propose the necessary legislation by 2015, its board chairman, François de Bie, said: “Highly-skilled jobs in bioplastics manufacturing, converting and along the entire bioplastic value chain can be an important part of this growth.” Players in the conventional and biodegradable segments of the plastics industry are not completely in agreement with each other on all parts of the EP’s proposed legislation, however. While EUBP supports call for a “life cycle-oriented approach” toward

Plastics News • July 2015 • 34

package design that would mandate minimum recycled material content in new products, PlasticsEurope is wary. It points out that modern food packaging often consists of a multilayer film made out of different plastics, which is hard to recycle. Over the course of this year, the Commission is due to reintroduce proposals for the waste component it removed in early 2015 from the circular economy legislative package tabled initially in July 2014. It also is expected to present a comprehensive action plan to kick-start the circular economy. In carving out the waste proposal, the EC’s first vice president, Frans Timmermans, said it would be replaced with “more ambitious” legislation.

Circular Economy focuses on waste management The revised Circular Economy Package will mainly focus in its new proposal on waste management, higher recycling targets, product design and innovation and research. This is the claim from a European politician at the annual meeting of Plastics Recyclers Europe (PRE) on 18-19 June in Brussels. Karmenu Vella, commissioner for environment and maritime affairs, said: “We estimate that – not just plastic – but waste prevention, ecodesign, re use, recycling and similar measures could bring net savings of 600 billion euros, or 8% of the annual turnover for businesses in the European Union. PRE also released a study during the conference Increased EU Plastics Recycling Targets Environmental, Economic and Social Assessment,

which argues that in order to achieve the recycling target of 60% for plastic packaging by 2025 as many as 250 new sorting facilities as well as 300 new recycling plants will be needed in Europe if the target is to be implemented.These investments will create more than 120,000 jobs across the EU.

Landfill restriction 'must be EU's priority' Only a binding restriction on landfill across the European Union (EU) will guarantee the necessary investment in waste management infrastructure, according to recommendations being put to Brussels. PlasticsEurope, the region-wide trade body, has presented its recommendations for a circular economy package being tabled by the EU. A revised circular economy package is expected by the end of this year. PlasticsEurope has called for a landfill ban on recyclable and other recoverable post-consumer waste by 2025 as part of a move towards improving resource efficiency in Europe. Karl-H Foerster, PlasticsEurope’s executive director, said: “Our goal remains ‘Zero Plastics to Landfill’. “However, only a binding EU landfill restriction by 2025, not just on recyclable, but on all other recoverable post-consumer waste, will provide the legal certainty required for the necessary investments in waste management infrastructure.” Landfill bans worked in the seven EU member states which had introduced them, he said. “Between 2006 and

FEATURES 2012, the amount of post-consumer plastic waste going to landfills was reduced by 26% and, as a result, plastics recycling rose by as much as 40% and energy recovery increased by 27%,” Foerster said. Plastics Europe’s assessment showed that an additional five million tonnes of plastic waste could be recycled annually by 2025, an increase of almost 80% within 10 years, Foerster added. “Furthermore, the remaining plastic waste that could not be sustainably recycled could contribute to the generation of an amount of energy equivalent to 23% of European gas imports from Russia. “In total we assume that diverting plastic waste and other recoverable waste from landfill by 2025 would generate around 300,000 permanent industrial jobs related to sorting, recycling and energy recovery,” he added.

report. However certain challenges have to be overcome if the benefits of a new recycling regime were to be fully felt, it added. The report, Increased EU Plastics Recycling Targets: Environmental, Economic and Social Impact Assessment, written by consultant firm Deloitte and commissioned by the Brussels-based trade body Plastics Recyclers Europe (PRE), said increased plastics recycling would have “a reinvigorating effect on European Union (EU) employment”. Nearly 50,000 jobs could be created directly in the recycling value chain of plastics across the region within five years as a result of increasing recycling targets in the EU-28 countries, and more than 75,000 indirect jobs. This figure rises to 80,000 direct and 120,000 indirect jobs by 2025.

On the subject of packaging recycling targets, Foerster said PlasticsEurope believed the optimum figure by 2020 would be 45%.

The financial cost – around €1bn by 2020 and €1.5bn by 2025 – could be “reasonably tackled by investments from the EU and other sources", the report argued.

“This figure is ambitious but realistic. However, before setting targets for 2025 or beyond, the European Commission sh ou ld a sse ss t h e achievements made by 2020, adjusting the rates to a single calculation method and measurement point.“Only such an approach will enable policymakers to set realistic targets for the future,” he said.

But it warned: “There are still a few challenges which need to be addressed in order to achieve high recycling in reality. “Setting high targets is a prerequisite to spur higher recycling performance but would not necessarily lead to increased recycling if existing barriers within the plastics recycling value chain are not successfully overcome.”

Higher recycling rates 'could create 50,000 jobs'

The report said the approach used in the determination of future targets “requires increased accountability and transparency in the way data are collected at the output of the recycling process and how the recycling rates and the targets are

Increased plastics recycling targets could create thousands of additional jobs across Europe and boost the region's economy, according to a new

calculated. “Ultimately, it will be up to the recyclers to report on the actual amounts of recycled plastics.”Improved collection facilities were crucial, the report added. “Taking the packaging waste stream as an example, according to the latest data available by waste stream, 41% of the packaging waste currently generated in EU-28 is collected for recycling (separate collection) and about 34% is sent to recyclers, leading to only 25% actually being recycled (output of recycling process). “The proposed target for packaging waste at the output of recycling is 45%. Therefore, an increase of nearly 20% in the output recycling rate needs to take place in order to fulfil the target at EU-28 level.” Recycling capacity also needed to be increased, since EU-28 plants were currently only able to handle around half of the plastic waste collected, the rest being exported, “mostly for economic reasons”.Finally the report urged that demand for recycled plastic be encouraged if the increased recycling rates are to make any sense. Certain measures, such as tax incentives for products containing recycled plastics, could be introduced. The report concluded: “Ultimately, a balance in supply of plastic waste and demand of recycled plastics needs to be established in order to enable a healthy and sustainable recycling sector that can contribute the maximum to fulfilling the increased targets and high expectation of the EU in creating a truly circular economy.

35 • July 2015 • Plastics News


Envisions Lego-Like Roads Made from Recycled Plastic


WS Infra, a small company operating in The Netherlands, has developed a new concept to replace conventional asphalt and concrete with prefabricated roads made out of recycled plastic Dubbed PlasticRoad, the materials could last as much as three times longer than conventional pavement and withstand temperatures ranging from -40 to 176 degrees Fahrenheit. KWS Infra claims PlasticRoad would be particularly “ideal for poorer soil” – such as is often found in the Netherlands – which can quickly cause conventional pavement to break up. The material would also have environmental benefits including eliminating the roadside emissions caused by laying down new asphalt. Experts at the company also note that the roads could be produced out of a variety of different forms of plastic waste. That could include such things as recycled water and soft drink bottles, as well as the

enormous amount of plastic swirling around in the oceans. The concept creates Lego-like prefabricated segments that would be hauled to a construction site and assembled

relatively quickly compared to current road construction methods. That also could make it easier to handle future repairs or changes to a road’s layout by simply snapping out old segments and replacing them with new ones. Each segment is actually hollow, providing a path for wires, pipes and drainage to be channeled through it. However, that does raise

APRA Seeks Recycling Zone


haravi, it’s also home to more than 1,000 small-scale plastics recycling companies that employ an estimated 10,000 people. They’re not recycling companies as you find them in North America, though the work of sorting and cleaning waste plastic is all done manually, in difficult conditions, with workers earning $100 to $300 a month for more than 70 hours of work each week. Dharavi has a world-wide reputation in recycling. But its future as a major recycling hub

Plastics News • July 2015 • 36

could be in question, because of those low oil prices and more permanent challenges like high electricity costs and a shortage of space for factories, There are other problemsas well. Even before oil prices dropped, companies were struggling with high power prices and a lack of space to make their factories more viable, said Hariram Tanwar, general secretary of the All Plastic Recyclers Association in Dharavi, which formed 18 months ago to advocate for industry.

concerns about how to handle that infrastructure when repairing or replacing blocks later on. Yet the question remains on how the road surface will compare with conventional pavement from a grip standpoint: Will tires have as much traction on plastic as they do on concrete or asphalt, and how will that change in adverse weather conditions? Researchers have been looking at a lot of alternative means to produce roads in recent years. Federal rules in the U.S. have helped clean up the mountains of old tires that traditionally piled up in landfills and lots, shredding them to a fine powder that is then added to asphalt. In India we already use a process that transforms plastic waste into a new polymer that can similarly be turned into asphalt. It reportedly results in stronger road surfaces. Taking things in stride, KWS Infra says it could be at least three years before it can demonstrate its PlasticRoad technology. APRA President Ladulal Jain, for example, said power costs in Dharavi are four times higher than in Silvassa, an industrial area 120 miles north of Mumbai. APRA recently submitted a detailed proposal to the government asking it to create a recycling zone, including setting aside land for companies and providing tax breaks and cheaper electricity.That kind of support is needed because the industry in effect performs a public service, helping to keep Mumbai cleaner and collecting what would otherwise be littered.

FEATURES and the Netherlands aided Haryana Operational Pilot Project (HOPP) and Indo-Dutch Network Project (INDP). So far, only about 18, 500 ha waterlogged saline land in canal irrigation commands have been provided with subsurface drainage systems, the majority of which is around 10 years old. The bulk of the coverage is in Rajasthan (15, 000 ha), Haryana (1, 500 ha) and Karnataka (2, 000 ha).

Components of Subsurface Drainage Pipes: In past the principal materials used for subsurface drainage systems were the clay pipes because plastic pipes were not available. The material cost was three times the cost of installation. Furthermore, the performance of drainage systems was severely affected by the displacement of the pipes and choking of drain lines. Production of corrugated PVC drain pipe only up to 100 mm in diameter during 90s. These corrugated PVC pipes were used for field drains and reinforced cement, concrete or PVC rigid pipes for collector drains. Then, in the mid-1990s under the Rajasthan RAJAD project, corrugated PVC drain pipes of seven sizes became available, ranging in diameter from 80 mm to 450 mm & these have been a great success. There is a BIS standard exists as IS 9271: 2004 Reaffirmed 2009 for Unplasticized Polyvinyl Chloride (UPVC) Single wall corrugated Pipes for Drainage Specification for the said technology.

Envelopes In the large drainage installation projects both granular and synthetic envelope materials have been used. Various materials as polypropylene, polyester nylon could be used. One ha area usually requires 30-40 Kg of material. The specifications for the envelope adopted in the HOPP and RAJAD project had been as follows:

Sandy Soils: For sandy loam soils, non-woven polypropylene material of a minimum thickness of 3 mm weighing 300 gm/m2.The envelope should be strong enough for manual or machine wrapping, transport & installation. Clay Soils: Non-woven polypropylene material of a minimum thickness of 0.9 mm when compressed and a weight of at least of 240 gm/m2 is recommended. Estimated cost of Sub Surface Drainage technology: The average cost of a SSD technology on a pilot project is estimated at about Rs 60,000 per ha and need be taken on a community basis. Based upon the survey of various SSD projects undertaken in India in the past, the following cost had been estimated:

Structures include sump, pump house, pumps, electrification, manholes, and labour * Interest & depreciation cost of trencher, excavator, bulldozer, tractors & trailers ** Spare parts, repair & maintenance, diesel etc

Sub surface drainage system starts giving returns in 6 months period. As per different studies conducted the entire cost of establishing SSD system can be recovered within 3 to 4 years from enhanced crop productivity from the reclaimed land. Estimated Potential of Subsurface Drainage in India: Subsurface Drainage is a promising application for draining the excess water present in the root zone of the plants and making cultivation possible. It is as good as adding additional land for agriculture. Out of the total potential of 8.4 Million ha of water logged affected area, even if 10% is brought under reclamation every year i.e. 8 lakh ha, it would cost around Rs 4800 crores and an estimated polymer consumption of 176 KTs annually.

Range of envelope material

Plastics News • July 2015 • 38

39 • July 2015 • Plastics News

Plastics News • July 2015 • 40

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European Commission fines producers, Southeast Asian, distributors involved in cartels Mid-Eastern producers reduce he European Commission (EC) has and will not be tolerated.” The fined eight manufacturers and two Commission’s investigation revealed PE prices


distributors of retail food packaging trays a total of €115,865,000 for having participated in at least one of five separate cartels The eight manufacturers are Huhtamäki of Finland, Nespak and Vitembal of France, Silver Plastics of Germany, Coopbox, Magic Pack and Sirap-Gema of Italy and Linpac of the UK. The two distributors are Ovarpack of Portugal and Propack of the UK. The companies fixed prices and allocated customers of polystyrene foam or polypropylene rigid trays, in breach of EU antitrust rules.

Polystyrene foam and polypropylene rigid trays are used for packaging food sold in shops or supermarkets, for products such as cheese, meat, fish or cake. Linpac benefited from full immunity under the Commission’s 2006 Leniency Guidelines as it revealed the existence of the cartels to the Commission. Commissioner Margrethe Vestager, in charge of competition policy, said, “Millions of consumers buying food for themselves and their families have potentially been hit by these cartels. The companies concerned carved up the retail food packaging market and agreed on prices rather than competing on their merits. Cartels harm our entire economy when companies set prices instead of the market. This removes the incentive to innovate

the existence of five separate cartels for retail food packaging in a large part of the European Economic Area, namely: In the markets for polystyrene foam trays and polypropylene rigid trays in North-West Europe. The conduct occurred between June 2002 and October 2007. In the market for polystyrene foam trays in Central and Eastern Europe. The conduct occurred between November 2004 and September 2007. In the market for polystyrene foam trays in SouthWest Europe.

The conduct occurred between March 2000 and February 2008. In the market for polystyrene foam trays in France. The conduct occurred between September 2004 and November 2005. In the market for polystyrene foam trays in Italy. The conduct occurred between June 2002 and December 2007. The companies fined today by the Commission were part of at least one of these cartels. Each of the cartels operated within the framework of multilateral and bilateral contacts usually held on the fringes of legitimate industry gatherings. Physical meetings were complemented by numerous emails and phone exchanges. In some of these cartels, the participants would refer to their illegal contacts as “the Club” or “Mafia”..

Players in Southeast Asia report that initial July PE prices have started to be announced by major producers from Southeast Asia and Middle East, with most producers conceding to price declines in the face of lackluster demand as well as less restricted supply levels, as the heavy maintenance season in the region draws to a close, according to ChemOrbis. A Thai producer said that they lowered prices by US$50/ton for HDPE film and blow moulding and by US$30/ton for injection, citing slower demand from Indonesia and Malaysia during Ramadan as the main reason for their price reduction. A distributor based in Malaysia reported receiving July LDPE offers from a Southeast Asian producer with a $40/ton reduction from June. According to sources from another regional producer, “Demand remains sluggish even after our price reductions and we have not been able to conclude many deals so far. Most buyers seem to be keeping to the sidelines for now in anticipation of further price reductions.” A plastic bag manufacturer in Thailand reported receiving an offer for LDPE film from a regional producer with a $60/ton decrease from the prior month. “Demand for our end products is not satisfactory these days as we are facing increasing competition from Chinese goods.

43 • July 2015 • Plastics News


USITC to conduct 5 year review on PE retail carrier bags


h e U S I n t e r n a t i o n a l Tr a d e Commission (USITC) has voted to conduct full five-year (“sunset”) reviews concerning the countervailing duty order on polyethylene retail carrier bags from Vietnam and the antidumping duty orders on polyethylene retail carrier bags from China, Indonesia, Malaysia, Taiwan, Thailand, and Vietnam (Inv. Nos. 701-TA-462 and 731-TA-1156-1158 (First Review) and 1053-1045 (Second Review)). As a result of these votes, the Commission will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.The Uruguay

Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty finding, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the finding or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time. The Commission’s notice of institution in five-year reviews requests that interested parties file with the Commission responses that discuss the likely effects of revoking the finding under review and provide other pertinent information. Generally

within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires. All six Commissioners concluded that the domestic group response for these reviews was adequate and that the respondent group response from Malaysia was adequate and the respondent group responses from China, Indonesia, Taiwan, Thailand, and Vietnam were inadequate, but that circumstances warranted full reviews

Starlinger equips South African recycler Extrupet


outh Africa’s biggest PET bottle recycler Extrupet has launched Africa’s first bottle-to-bottle recycling operation at its Wadeville recycling site in Johannesburg. The new 3,000 square metre unit equipped by Austrian supplier Starlinger, produces recycled PET resin suitable for foodcontact packaging and carbonated soft drinks. The plant is South Africa’s first facility to use CocaCola-approved technology to provide rPET to bottle Coca- Cola products. Extrupet’s PET recycling line, a recoSTAR PET 165 HC iV+, is designed to produce pellets meeting FDA (US Food & Drug Administration) and EFSA (European Food Safety Authority) standards. With a 1,800 kg/hour capacity, the line can supply 14,000

Plastics News • July 2015 • 44

tonnes of recycled resin aq year to the PET packaging industry in South Africa and neighbouring countries. The bottle-to-bottle project was first conceived three years ago when Extrupet’s existing capacity was approaching its limit, according to the firm’s joint managing director Chandru Wadwhani. Extrupet's PET recycling extruder is equipped with an in-line quality control system that monitors the colour and IV (intrinsic viscosity) of the produced pellets. An online colour spectrophotometer constantly measures the colour values, ensuring uniform colour of the rPET. The recycling line automatically adjusts operating parameters to reach the required IV level after it has been set on the control panel.

During production the IV level is monitored continually and parameters readjusted when necessary. This avoids IV variations after the extruder and guarantees constant IV values already during pellet production. Extrupet has produced food grade recyclate from post-consumer waste since 2000 at the site and launched its PhoenixPET brand recycled resin in 2010. The recycler supplies producers of polyester filament and staple fibre, geotextile, PET strapping and sheet, thermoforms and PET bottles. The new recycling unit will divert an extra 22,000 tonnes of post-consumer PET bottles from landfill each year and will offer income opportunities in bottle collection for an estimated 15,000 people, stated South Africa’s PET recycling association PETCO.


Plastics Europe call for Landfill restriction


lasticsEurope, the region-wide trade body, has presented its recommendations for a circular economy package being tabled by the EU. A revised circular economy package is expected by the end of this year. Only a binding restriction on landfill across the European Union (EU) will guarantee the necessary investment in waste management infrastructure, according to recommendations being put to Brussels. PlasticsEurope has called for a landfill ban on recyclable and other recoverable post-consumer waste by 2025 as part of a move towards improving resource efficiency in Europe. Karl-H Foerster, PlasticsEurope’s executive director, said: “Our goal remains ‘Zero Plastics to Landfill. However, only a binding EU landfill restriction by 2025, not just on recyclable, but on all other recoverable postconsumer waste, will provide the legal certainty required for the necessary investments in waste management infrastructure.” Landfill bans worked in the seven EU member states which had introduced them,

he said. “Between 2006 and 2012, the amount of post-consumer plastic waste going to landfills was reduced by 26% and, as a result, plastics recycling rose by as much as 40% and energy recovery increased by 27%,” Foerster said. Plastics Europe’s assessment showed that an additional five million tonnes of plastic waste could be recycled annually by 2025, an increase of almost 80% within 10 years, Foerster added. “Furthermore, the remaining plastic waste that could not be sustainably recycled could contribute to the generation of an amount of energy equivalent to 23% of European gas imports from Russia. “In total we assume that diverting plastic waste and other recoverable waste from landfill by 2025 would generate around 300,000 permanent industrial jobs related to sorting, recycling and energy recovery,” he added. On the subject of packaging recycling targets, Foerster said PlasticsEurope believed the optimum figure by 2020 would be 45%.

SaBuCo to start trial operations at Jubail Saudi Butanol Company (SaBuCo) is preparing to start trial operations at its largest butanol plant in Jubail in Q3-2015. To be carried out for around six months, the trial operations will test equipment and production efficiency through technical licensing and contracts. Plant capacity comprises of 330,000 tons of n-butanol and 11,000 tons of iso-butanol on a yearly basis, with an estimated investment of SR1.93 bln. SaBuCo is a joint venture of Saudi Kayan Petrochemical Company, Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical Company and Saudi Acrylic Acid Company (SAAC), an affiliate of Tasnee and Sahara Petrochemicals. The three partners in the joint venture will have equal stake in production quantities for use in manufacturing industries or for sales in local and overseas markets.

U K ’s C i r c u l a r Economy focuses on waste management The revised Circular Economy Package will mainly focus in its new proposal on waste management, higher recycling targets, product design and innovation and research. This is the claim from a European politician at the annual meeting of Plastics Recyclers Europe (PRE) on 18-19 June in Brussels. Karmenu Vella, commissioner for environment and maritime affairs, said: “We estimate that – not just plastic – but waste prevention, ecodesign, re use, recycling and similar measures could bring net savings of 600 billion euros, or 8% of the annual turnover for businesses in the European Union. PRE also released a study during the conference Increased EU Plastics Recycling Targets Environmental, Economic and Social Assessment, which argues that in order to achieve the recycling target of 60% for plastic packaging by 2025 as many as 250 new sorting facilities as well as 300 new recycling plants will be needed in Europe if the target is to be implemented. These investments will create more than 120,000 jobs across the EU.PRE president Ton Emans said: “As much as 74% of plastics waste in Europe is still not managed in a sustainable way, either by landfilling or incinerating it. The revised circular economy package shall focus on changing this situation. PRE is supporting the Commission in its work to close the loop.

45 • July 2015 • Plastics News


Union urges EU to say 'No' to employment law changes


ne of the UK’s largest trade unions has urged member countries of the European Union (EU) to reject calls for changes to employment laws as part of any talks concerning the UK’s membership of the trading bloc. The GMB said it had written to all 27 EU states calling on them “not to accede to the Tory/CBI demand to get rid of parts of the Working Time Directive and of the Agency Workers Directive in the UK as part of David Cameron’s renegotiation of the UK relationship with the EU”. Paul Kenny, the GMB’s general s e c r e t a r y, s a i d i n t h e l e t t e r : “British workers are already less well protected than many of their counterparts across the EU, and we urge EU governments and institutions

not to allow further erosion of this situation.” Any undermining of these rights would not only be detrimental to UK workers, Kenny went on, “but would create unfair competition for other EU member states based on a race to the bottom, which I am sure you will agree is not the way to go”. Kenny said that he wanted negotiators to understand that if the EU Commission and member state governments allowed the Prime Minister to undermine employment and social rights and their application to British workers in the course of the reform negotiations, there would be a serious risk that many organisations traditionally in favour of the EU will campaign for a ‘No’ vote.

Amec Foster to conduct feasibility study on refinery-petrochem in Malaysia


mec Foster Wheeler has received a contract by SKS Corporation Sdn Bhd, together with Petromin Corporation of Saudi Arabia, and another Asian partner, to supply consultancy services for a proposed new refinery and petrochemical complex in Kedah state, Malaysia. The value of the consultancy contract, which will be delivered during 2015 by an Amec Foster Wheeler team in Reading and Kuala Lumpur, has not been announced. Under the contract, Amec Foster Wheeler will undertake a detailed feasibility study

Plastics News • July 2015 • 46

to define the configuration of the complex, develop the infrastructure requirements, establish a project implementation plan and produce a cost estimate to help optimise the project and establish a clear plan to take the project forward. The proposed development supports SKS’s aim to boost investment into the Malaysian economy and develop the region as a world class supplier of refinery and petrochemical products to South East Asia

Bag makers sue Dallas over 5-cent fee An ordinance to tax plastic and paper bags in Dallas is the subject of a lawsuit filed May 1 by a group of bag manufacturers and recyclers. The suit, brought by Hilex Poly Co. LLC, Superbag Corp., Inteplast Group and Advanced Polybag Inc., alleges that the 5-cent-per-bag tax passed by the City Council in March 2014 violates the Texas Solid Waste Disposal Act. Section 361.0961 of the Texas Health and Safety Code says local governments cannot ban or restrict “the sale or use of a container or package” or asses fees or deposits on the sale of packaging. The lawsuit alleges that makes the bag ban illegal. When the Dallas ban was passed, thenState Attorney General Greg Abbott was already looking into whether bag bans or taxes were legal in the state. He eventually concluded that such ordinances were a violation of state law. No other action has been taken on the nine other existing bans or fees in the state. Abbott has since been elected governor of Texas. The lawsuit also says the ordinance “raises more revenue than is reasonably necessary to subsidize the city's efforts to ensure compliance with the ordinance” and that such a move has to be approved by voters. Also, while labeled a “fee,” it is in fact a tax, which Texas law says also has to have the approval of the voters, according to the lawsuit.

Business NEWS

Borealis announces €160 mln cracker upgradation investment


orealis has announced a EUR 160 million investment in its production location in Stenungsund, Sweden. The investment entails the upgrade and revamp of four cracker furnaces to the highest currently available standards in process safety and energy efficiency The Stenungsund programme is scheduled to begin in late 2016 and be completed by 2020. The investment programme entails revamping four of the current six furnaces and shutting down completely the two remaining, ageing ones. Safety and process safety will receive the highest priority during programme implementation and start-up phase. Borealis' Stenungsund cracker offers world-class feedstock flexibility as well as Europe's largest

feedstock storage capacity. Due to its strong downstream integration, a highly reliable, safe, and efficient cracker is essential for the continued success of Borealis' profitable wire and cable business. Only last year, Borealis announced a multi-million investment in an upgrade of the cracker and the construction of an ethane storage tank to store ethane imports from the US and Europe. "Our Stenungsund cracker operations are a key strategic asset and major contributor to our success," says Mark Garrett, Borealis Chief Executive. "This investment programme is especially beneficial, enabling us to secure improved reliability and operability whilst reducing plant complexity and maintenance requirements

HPL's plea seeking relaxation in customs duty payment rejected


he government has rejected a plea by Haldia Petrochemicals Ltd (HPL) seeking relaxation in payment of customs duty for the violation of Foreign Trade Development and Regulation Act. "The policy relaxation committee (PRC) of the Commerce Ministry has rejected the plea of HPL seeking relief from payment of customs duty by the company," Director General of Foreign Trade (DGFT) Praveer Kumar told PTI.

He said that the rejection was made on the basis of a case registered by Directorate of Revenue Intelligence

(DRI) for failing to meet export obligations under the advance licensing scheme. HPL had obtained advance license for importing naphtha at zero duty, for which the company was supposed to meet export obligation norms. But HPL had failed to meet them. Kumar said that the ministry had advised the company informally to look at the best possible ways to go about it and asked both the West Bengal government and the promoters to deliberate on the matter, adding that the company had also been asked to approach the revenue department of the Finance Ministry to get the relief.

ONGC board approves of merger of MRPL with OMPL


NGC subsidiary Mangalore Refinery and Petrochemicals (MRPL) has approved a proposal to merge ONGC Mangalore Petrochemicals (OMPL) with itself. This step is expected to consolidate the petrochemical business of state-owned upstream major Oil and Natural Gas Corporation (ONGC), leading to the rationalization of costs across petrochemical product stream and giving MRPL access to a wider range of products and flexibility to optimize its gross refinery margin (GRM). ONGC holds almost 72% in MRPL. In OMPL, ONGC holds 49% stake while 51% is held by MRPL. Speaking about the devlopment H Kumar. MRPL managing director said “Dovetailing the operations will give us an edge in backward integration and the synergy will deliver tremendous advantages.” OMPL is a green field petrochemical project at the Mangaluru Special Economic Zone, adjacent to MRPL’s own 15 mln mtpa refining and petrochemical complex. It comprises an aromatic complex for production of Paraxylene and Benzene. The complex is designed to produce 0.9 mln mtpa of Paraxylene and 0.3 mln mtpa of Benzene.

47 • July 2015 • Plastics News

Business NEWS

Ferromatik Milacron wins award for IOC to set up 350,000 Excellences in Procurement Transformation tpa glycol units at erromatik Milacron India has is into manufacturing of Plastics Paradip


been awarded in the category of “Excellences in Procurement Transformation” during the 3rd Annual CPO Forum India 2015 organized by Conference Asia. The award was conferred upon FMI for delivering Short Lead Time (SLT) Injection Molding Machines. In an award function organized on 10th and 11th July 2015 in Mumbai, Mr. Arun Chari, leading Purchase Department along with his team has received the award from Mr. Paul – Director, Zoffio India. SLT machines are a solution to customers facing issues because of unavailability of machines at a short duration which may lead to strict penalties due to delayed SOPs. FMI

Processing Machines, with a vast variety of 270 models and with more than 12000 parts, provides machines in the time span ranges from 6 to 16 weeks, based on complexity. It has started offering SLT machines that are following “Build to Replenish” process and achieving replenishment within 2 weeks of dispatch. Initially, the machines covered under SLT are Nova Servo 50, 80, 110 & 150 Tons. While talking about SLT, Mr. Chari Said, “We understand issues faced by customers and its impact on their business. Our continuous effort is to support our customers and be helpful to them at every step of their growth. We are committed to deliver best solutions in least possible time.”


he board of Indian Oil Corporation (IOC) has given in principle approval for a 350,000 tpa glycol unit to be set up at cost of Rs 3,800 crore, and a 1 mln tpa paraxylene PTA (purified terephthalic acid) unit at an investment of Rs 8,000-9,000 crore. The two projects are expected to come onstream near its refinery at Paradip by 2020. Both the units are part of the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) hub being established at Paradip. IOCL is the anchor tenant of this hub. IOCL also has plans to set up a petcoke gasification plant with an investment of more than 15, 000 crore. These facilities are in addition to a 0.7 mln tpa polypropylene unit coming up in the petrochemical hub.

Mega petrochemicals complex to be set Oman to invest US$7 up in Andhra Pradesh bln in Indonesia


mega petrochemicals complex will be set up in Andhra Pradesh, making it the energy and petrochemicals hub on India's east coast, Union minister of state for petroleum and natural gas Dharmendra Pradhan said . Addressing media persons after conducting a review of various oil and gas sector projects in Vizag, Pradhan, who visited the facilities of Indian Strategic Petroleum Reserve Limited (ISPRL) and Oil and Natural Gas Corporation (ONGC) in the KG Basin said, "A detailed energy road map of future AP will be drawn up.

We are already working on an ambitious

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road map and planning beyond the PCPIR (Petroleum, Chemical and Petrochemical Investment Region) for AP." Stating that AP has immense potential in the hydrocarbon sector, he said, "ONGC will start gas production from the KG Basin from 2018 and oil production from 2019." Explaining that as compared to the west coast, deep sea exploration poses serious challenges on the east coast, he said, "Monetising the potential is a priority and ONGC is undertaking the project on a fast-track basis. I am fully satisfied with progress

The Sultanate of Oman is set to invest a total of US$7 billion to establish oil storage facilities, a petrochemical plant and a refinery in Indonesia, according to official statements, Gulf Times reported. Through the deal, the Indonesian government aims at reviving its oil and gas industry and boosting fuel output to help meeting the increasing demands of its growing population. In this direction, the country has already granted 13 new oil and gas blocks to companies like Conoco Philips, Shell, Total and Statoil with combined investment commitments of US$155.8 million.

Business NEWS

Erema posts record sales


ustria-based recycling technology company Erema GmbH has announced that it hit record figures with its annual sales for the fiscal year of 2014-15, reporting 115 million euros ($131 million) in sales, an increase of 21 percent and 20 million euros ($22.8 million) on the previous year.The sales for the entire group — including Erema, Pure Loop and 3S — stood at 130 million euros ($148.1 million) for the year. "This growth is due primarily to the new Intarema plant generation and confirms that this innovation represents an attractive technology for customers,” said CEO Manfred Hackl.

The Interama plant has sold 245 recycling systems at Ansfelden since the system was launched

18 months ago. The system is a complete recycling system, launched at K 2013. Erema is concentrating on expansion. It launched sister company Pure Loop GmbH at the beginning of the year, which focuses on shredderextruder technology, while Erema states that as a group it will grow its range of services in the field of in-house recycling. Meanwhile, Erema's subsidiary Erema North America is more than doubling the size of its trial center due to demand, particularly from the postconsumer recycling sector. The trial center at the company's head office in Ipswich, Mass., will be extended to 25,000 square feet from the current 10,000, and will have four recycling systems for test runs. The expansion is scheduled for completion in late summer 2015.

Kabra and Piovan form JV


abra Extrusiontechnik Ltd (KET), a part of kolsite roup, has entered into a 50:50 joint venture with Italy-based Penta SRL, a Pioivan Group company that is engaged in manufacturing and distribution of auto feeding systems. This is the first joint venture established by Penta as Piovan Group has been operating through subsidiaries across the world. The JV company, which is proposed to be named as Penta Systems India Ltd, will set up a plant for manufacturing and trading

(including the supply of after-sales services) of auto feeding systems for the plastics and food processing industries. With the new joint venture, Kabra Extrusiontechnik is aiming to further strengthen its presence in plastic industry and explore new opportunity in the food processing industry. This is the first time Piovan has formed a joint venture company worldwide, since it operates through wholly-owned subsidiaries elsewhere. Piovan has seven production facilities, 24 subsidiaries and 70 distributors worldwide. It is based in Santa Maria di Sala, Italy.

BPCL's Brahmaputra kick starts activity


he Brahmaputra Cracker and Polymer Limited (BCPL), also known as the Assam gas cracker project, was partially commissioned earlier this month. Three units of the petrochemical plant - the gas sweetening unit (GSU), C2+recovery unit and polypropylene unit (PPU) were commissioned. The ethylene cracker unit and linear low density polyethylene (LLDPE)/high density polyethylene (HDPE) unit are almost near completion and expected to be ready in two months. The gascracker project is a joint venture in which GAIL holds equity share of 70%, while OIL, NRL and the state government hold 10% stake each. GAIL and BCPL have already inked a deal for marketing petrochemical products produced at the plant. There are also plans to export polymer and finished products to countries like Bangladesh, Myanmar, Bhutan, Nepal and China.

SABIC forms JV with SK Global


audi Basic Industries Corp. (SABIC) has completed the formation of a joint venture with South Korean petrochemical manufacturer SK Global Chemical Co. to produce polyethylene products, at a total investment of about US$640 millioln for the technology and plant construction. SABIC and SK Global Chemical have successfully concluded negotiations for the 50-50 joint venture that will purchase the unique Nexlene solution technology and a plant that manufactures a range of high-performance Ethylene/Alpha-Olefin copolymers products in Ulsan, South Korea.

49 • July 2015 • Plastics News

Business NEWS

Oman to invest US$7 bln in refining, petrochemicals complex in Indonesia man has committed to invest US$7 bln to build oil storage facilities, a petrochemical plant and a refinery in Indonesia’s Riau province, with the oil products being purchased by stateowned Pertamina. The project is now in the process of issuing of permits, and groundbreaking is expected to begin in 2016.


the process of obtaining a permit. Ground-breaking of the refinery project is expected to be as early as next year. To date, the country has six oil refineries operated by state owned firm Pertamina. However, the refineries are old and can no longer operate at full capacity, leading to rising imports of petroleum products.

An agreement was also signed for the supply of crude oil, but details on the amount and price were not disclosed. Indonesia’s fuel output has suffered from a lack of investment in its refining sector since the construction of its last refinery was completed in 1994. Oman would supply the required crude oil for the refinery, develop storage facilities, and could later expand into petrochemicals, Energy and Mineral Resources Minister Sudirman Said “It has prepared US$7 billion in total and is now in

Pertamina is currently working to upgrade four of the six refineries so that they will be able to produce more and better products.The Energy and Mineral Resources Ministry’s director general for oil and gas, IGN Wiratmaja Puja, said earlier that the government was working on new public-privatepartnerships for the development of four new refineries in the country. The refinery development is also expected to improve Indonesia’s energy security.

GS Engineering & Construction signs US$4.5 bln petrochem deal in Uzbekistan


outh Korea’s GS Engineering & Construction Co. has signed a deal on a petrochemical production project in Uzbekistan estimated at US$4.5 bln, Under the memorandum of understanding (MOU) with Uzbekistan’s state-run oil and gas firm Uzbekneftegaz, the South Korean builder will help set up a production unit to make olefin, used in making plastic materials.GS E&C will form a consortium with other South Korean

Plastics News • July 2015 • 50

investors to cover 50 percent of the project cost, while the remaining share will be held by the Uzbek gas company. The two firms are currently negotiating the final cost and production capacity of the olefin facility, GS E&C said.The latest MOU came amid Uzbek President Islam Karimov’s meeting with South Korean President Park Geun-hye on Thursday to discuss ways to boost bilateral economic cooperation.

Indorama acquires PTA business of CEPSA


ndorama Ventures (IVL), a worldleading producer of intermediate petrochemicals, has completed the 100% acquisition of the PTA business of CEPSA Chimie Montreal, as per The Nation. The 600,000 ton PTA plant will provide Indorama Ventures with feedstock security to better serve its customers and anenhanced leadership position in North America. “With the integration of the Canadian PTA facility, we now have all our global businesses present in North America and I believe this unique position is a win-win since we can now serve our customers more reliably and simultaneously to create accretive returns for our shareholders. Vertical integration into feedstocks has always been an important part of our global business strategy and we are now very excited to have finally completed the loop in our North American value chain,” said Aloke Lohia, Group CEO. “The PTA business in North America is robust and the timing of this acquisition comes with firmer margins and potentially firmer operating rates pending the results of the anti-dumping investigations on imported PET into USA", Lohia added.

Product NEWS

New smart lithium-ion batteries that do not explode


tanford associate professor Yi Cui and other professors have sought to accomplish with a new "smart" battery. Lithium-ion batteries are practically made up of two packed electrodes: an anode made of carbon and a cathode made of lithium metaloxide, separated by an ultrathin polymer. The problem starts when the polymer, which is porous by nature, gets pierced by something, either by impurities inside the battery or through overcharging, which causes the lithium ions to pile up into long chains called dendrites. A pierced polymer would cause the battery to short and to eventually burst into flames. The solution that the Stanford researchers came up with is to

introduce another layer on top of the polymer on the anode side. This layer, made of copper, practically serves as a third electrode. It measures the voltage between the anode and the polymer separator. When dendrites reach the copper layer, it will drop the voltage to zero, signaling that the polymer layer is in danger of being pierced and that the battery needs to be replaced. The battery itself actually isn't "smart" in the sense of smart devices we have these days. It will still require some other electronic device to actually read the copper layer's voltage. That layer can actually also be used to determine where exactly the dendrites will pierce. To some

extent, the copper layer only gives a very immediate warning of impending doom, but the researchers claim that an even earlier warning sign can be had by placing the copper layer closer to the anode. Such features will soon become a necessity as the number of devices using lithium-ion batteries grow around us. Aside from smartphones and laptops, these batteries are also used to power up plane systems, like the Boeing 787 whose battery packs caught fire in several incidents in 2013. Electric vehicles will also utilize this type of battery and in massive amounts, making early warning signs like these even more critical to saving lives as well as property.

Engel’s new injection molding machine flexseal 300 T


new injection molding machine for the processing of all common rubber compounds and other elastomer materials has been developed by ENGEL. The new ENGEL flexseal 300 T horizontal machine with a clamping force of 3,000 kN has been designed specifically for the needs of international O-ring and flat gasket manufacturers and sets new standards for the industry with its features. As a standard, the ENGEL flexseal 300 T comes equipped with the servo-hydraulic ENGEL ecodrive.

This helps reduce the energy consumption of the machine

significantly because the heating phases in the production of O-rings and flat gaskets are often long. The new machine is significantly shorter than other injection molding machines for elastomer processing in this high clamping force class, and with its heating plates sized 550 by 650 mm still provides more room for the mold, for automation, and for accessing the machine nozzle. The hydraulic tie-bar machine is equipped with a screw injection unit that ensures very high precision for production with small and mid-sized shot volumes. The plasticizing units

for rubber, solid silicone, LSR and TPE can be exchanged very easily. Each injection unit is available in two cylinder diameters with up to 2400 bar injection pressure. In addition, numerous options are available such as custom-sized heating plates or a greater distance between plates. Standardized interfaces are available for the integration of conventional brush and part removal modules as well as other automation features and peripherals. The peripheral systems can be operated comfortably via the CC300 control unit of the injection molding machine.

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Product NEWS

Milliken’s Milliguard® AOX-1


illiken & Company’s Milliguard® AOX-1 novel polymer-bound antioxidant for polyurethane (PU) addresses more-stringent environmental, health and safety requirements while delivering outstanding thermal stabilization performance at low loadings. It offers a unique solution for compliance with tougher vehicle indoor air quality standards. This Milliken technology provides polyol producers and foam manufacturers with a powerful tool for interior vehicle components such as seats, door trim, carpet, instrument panels, headliners and consoles.

Test results achieved internally consistently showed Milliguard AOX antioxidant significantly reduced VOC content by more than two thirds to 22 ppm, compared to the industry standard 69 ppm. Milliken’s antioxidant also dramatically minimized FOG content emission to only 6 ppm, compared to the industry standard 541 ppm. Milliguard AOX-1

antioxidant is a reactive, carboncentered radical scavenger used to protect PU polymers, which are exposed to high heat conditions during foaming, from thermal degradation that causes discoloration and physical property failure. Combining Milliguard AOX-1 antioxidant with conventional peroxy and alkoxy radical stablilizers provides ultimate thermal stability. The Milliken product interacts synergisticallya with other antioxidant classes and also reacts earlier in the oxidation cycle to provide unparalleled levels of stability. Milliken engineered Milliguard AOX-1 additive to be covalently bound with the urethane polymer. This unique approach prevents the antioxidant from migrating to the surface and virtually eliminates VOC and FOG emissions from the final component. Milliguard AOX-1 antioxidant also contributes to environmental protection by enhancing the performance of natural oil polyols (NOPs) and nonhalogenated flame retardants.

Anti-wear coating for screws and barrels


attenfeld-Cincinnati has worked with a partner in the coating industry to develop its new STC (superior tungsten carbide) antiwear coating for extruder screws and barrels. The hard metal coating for screws and barrels combines the abrasion and erosion resistance of TC hard metals with an extremely strong resistance to the acids of chlorine and bromine halides. The STC coating can be applied either just to certain

Plastics News • July 2015 • 52

parts of the screw geometry, or the entire screw can be encapsulated in STC. Battenfeld-Cincinnati explained the key benefit of the new STC technology is that “the tungsten carbides support each other as a result of their extremely high concentration and are also bonded in a hard metal matrix. Soldered or centrifuged coatings currently on the market come with a much lower tungsten carbide content, bonded in a comparatively soft matrix.

Adidas unveils shoe made from ocean waste


lothing manufacturer Adidas has made a prototype shoe made from recycled ocean plastic waste and deep-sea gillnets. The footwear was unveiled at an event hosted by the United Nations in conjunction with Parley for the Oceans, an environmental NGO focused on raising awareness of plastic pollution of the oceans. The clothing giant had announced the Parley for the Oceans link-up back in April. Parley, a group of artists, designers, musicians and scientists, said much of the plastic waste ended up in mid-ocean whirlpools, entangling whales, birds and turtles and damaging the internal organs of the fish that ingest it. At the launch, Adidas global brands executive Eric Liedtke said: “This partnership allows us to tap into new areas and create innovative materials and products for our athletes. We invite everyone to join us on this journey to clean up the oceans.”The sporting giant has committed to cleaning up its environmental profile in recent times, reporting more than 20% cuts to emissions, water use and waste in the last six years. The company’s 2014 sustainability report stated it aimed to cut emissions by 30% by the end of 2015. The firm also plans to phase out plastic bags from its 2,900 stores as part of its partnership with Parley for the Oceans.

Product NEWS

Tough static-resistant nylon for electronic applications


lariant has developed glassreinforced polyamide (nylon) with anti-static properties, lowtemperature impact strength, dimensional stability and excellent surface-finish. The material was custom compounded by the Clariant Corporation BU Masterbatches Specialty Compounding business in Albion, Michigan. It was created to help Advanced Design Concepts, Inc., (ADC), a custom molder in Pewaukee, Wis., to meet a customer’s need for a housing for electronic equipment that must operate safely in potentially explosive environments. Mark Schaefer, Founder and President of ADC, says his firm was asked to

produce plastic housings that could meet requirements for ATEX and IECEx certification covering for electronic gear used worldwide in areas with potentially explosive or flammable gases or vapors. The standards require that the plastic housings have a surface resistance of less than 109 ohms at 45 to 55% relative humidity. They also must pass the test after an IP20 drop test at -20F. Finding a supplier of materials that could meet the standards requirements was easy, Schaefer says, but finding one that could supply it in the necessary small quantities was more of a challenge. His customer makes fewer than 1000 devices per year, so being able to get

Medical device labels stand up to sterilisation


erman label-maker S+P Samson has engineered a new label suitable for medical devices and instruments that can survive extreme sterilisation processes. The Structobond labels incorporate ribbons of thin-but-strong Radel brand polyphenylsulfone (PPSU) film, made by Solvay Specialty Polymers’ subsidiary Ajedium, sandwiched between layers of Samson’s epoxy, the companies explained when introducing the labels at the MD&M East trade show. Structobond labels can withstand steam and gamma sterilisation and have strong chemical resistance, making long-term labeling possible on devices and even on multiple-use surgical instruments. After curing the epoxy resin top

layer, anything printed on the 0.2inch by 0.2-inch PPSU middle layer is protected, Gallahue-Worl explained, even through multiple, rigorous sterilisations. On its own, RadelPPSU film can withstand repeated chemical disinfection and more than 1,000 autoclave steam sterilisation cycles, according to Solvay. In new tests targeting the polymer’s performance for S+P Samson’s medical labeling application, the three-layer construction withstood more than 700 autoclave cycles with no delamination. The cycles include disinfection using acid and alkaline sterilants, ultrasonic cleaning and temperatures up to 273° F (134° C) at a pressure of 2 bar.

the resin in lots as small as 200 lb. is a big advantage. Schaefer says he had an offer from another company to supply a suitable material he decided Clariant could provide superior value. “We have worked with Clariant in the past and found that they generally give us more help than any other supplier,” Schaefer explains. ADC had been molding housings for non-hazardous applications previously and these were made of a glass-reinforced nylon 66 and Clariant immediately came forward with a similar compounded material that incorporated the company’s permanent antistatic additive to meet the required surface resistivity specifications.

Reduced downtime for SMED tools American Kuhne has applied its SingleMinute Exchange of Die (SMED) to key tasks in extrusion job changeovers, creating three options that reduce downtime in tubing, profile, wire and cable and other small-die production lines.SMED Quick-Change options can reduce changeover times by nearly half an hour. The options are available with new American Kuhne extruders, The company offers three innovations:Quick collet screw pusher, a device that reduces the time needed to pull screws from five minutes to less than one minute, using a springmounted locking nut and a sliding collet to fasten the nut onto the threaded screw-pushing rod at the rear of the drive shaft.

53 • July 2015 • Plastics News

Product NEWS

Automating the Polymer Drying Process By Jamie Jamison, Drying Product Manager, The Conair Group


roper drying is the key to ensuring quality in parts made of engineering thermoplastics. Considering how costly these materials are, it is easy to see why it is so important to have good data about what is actually happening in the drying hopper and to use that information to gain tight control over that process. A patented device called the Drying Monitor measures temperature at several different levels in the drying hopper, documenting whether or not conditions are right for proper drying. This presentation examines why this information is so important, how the device works and how it can be used to take the guesswork out of the drying process and give you a higher level of control over the quality of your products.

Material represents the single largest cost in almost any plastics processing operation. Think about it. If you have a machine processing 100 lb/hr (45 kg/hr) for 8400 hours per year, that adds up to 840,000 lb or 450,000 kg. If you are processing engineering resins – hygroscopic materials that require proper drying in order to develop their full mechanical properties – the material for this one machine could be costing you millions of dollars per year. Next, add in labor, plant and equipment, and you begin to understand what it costs to mold or extrude every single pound of resin. These are truly mind-boggling numbers.

therefore, incomplete) drying. When you run a polymer that is incompletely dried, you will likely see problems in one or more of the following areas: • Processing problems. High levels of moisture in or on the surface of the pellets will be superheated and turned to steam during melt processing. In extrusion, this may cause surging, spitting, sputtering and a foamy melt at the die. In injection molding, it can cause over or under packing or flashing, and in extreme cases could cause the barrel to crack or explode due to the high pressures of trapped steam. • Cosmetic Problems. In injection molding, excessive moisture can cause bubbles on or in the part, sink marks, splay and surface defects. In extrusion, moisture escaping as steam through the die may cause a rough and scaly surface on the extrudate.

Considering everything you have invested in producing a saleable part made of an engineering thermoplastic, why would you risk the scrap, downtime and energy waste that result when a problem occurs in your dryer. A relatively small one-time investment in dryer control technology – like the patented Conair Drying Monitor – can go a long way toward helping you get the maximum return on the investment you have in your valuable raw materials.

• Structural and Physical Problems. Even if your finished product is free of cosmetic defects, a small amount of moisture can cause hydrolytic degradation, which in turn can change the polymer’s melt viscosity, molecular weight and mechanical strength. This may be the most dangerous problem because it often escapes detection with the naked eye and can lead to long-term liability issues that could have been avoided.



Producers of hygroscopic materials — companies such as Bayer, Eastman, SABIC (GE Plastics), DuPont, BASF and others — have spent millions of dollars over the years analyzing the conditions that result in optimum performance in their materials. They have a huge vested interest in getting this right because, if a molder or extruder can’t make good product, they’re going to be on the phone to the resin company asking why their material is failing to perform up to spec. These materials companies will tell you that the vast majority of customer complaints about resin performance are rooted in improper (and,

As soon as an engineering polymer is manufactured and exposed to the atmosphere, it begins to absorb moisture. That’s why they are called hygroscopic. Water vapor continues to migrate from the surrounding air until equilibrium is reached between the moisture content of the polymer and the surrounding air. This moisture absorption takes place on a molecular level. The natural attraction between polymer chains and water molecules is what causes hygroscopic resins, exposed to a humid atmosphere, to take up and retain water. It is also what makes drying them difficult.

Plastics News • July 2015 • 54

Product NEWS There are a few fundamental factors that govern the drying process: • Polymer temperature; • Relative humidity / dew point of the drying air; • Air flow; and • Drying time. Let’s look at each of these closely. Polymer temperature. The temperature of the polymer determines the rate at which water molecules move through a hygroscopic polymer. As the temperature of the polymer is increased, the molecules move about more vigorously and the attraction between the polymer chains and the water molecules is greatly reduced. This allows the water molecules to escape from the polymer chains. Dew Point/Relative Humidity. Once heat has freed water molecules from their bond with the polymer, it is necessary to induce them to migrate out of the plastic pellet. This is accomplished by surrounding them with air that has a lower “vapor pressure” than the pellet. In most dryers, a stream of low-dew-point (dry) air provides this lowvapor-pressure environment. Moisture is removed from the air by a molecular sieve desiccant and then the air is heated to lower its relative humidity, increasing its ability to hold moisture. Air Flow. The movement of hot dry air through the drying hopper is the mechanism by which the polymer is heated (see Polymer Temperature above) and also how the moisture is conveyed away from the polymer and out of the drying hopper. By regulating a i r f l o w, processors can control the temperature of the resin in the hopper. This not only saves energy but ensures p r o p e r This illustration shows that airflow is sufficient to drying while maintain the specified temperature throughout preventing most of the hopper volume. As resin moves through the hopper, it is exposed to proper drying degradation. conditions for 4 hours.

Drying Time. Plastic pellets do not dry instantaneously. It takes time to raise the temperature of the pellets and, once they

are subjected to lower vapor pressure conditions, it takes more time for moisture to diffuse and migrate to the surface. Resin manufacturers have defined how long this process takes for their particular resin types and grades. Remember, however, that effective drying time is the time the pellets are exposed to optimum drying conditions. Any time that the polymer spends in the drying hopper at anything less than the recommended temperature and dew point cannot be considered drying time, and you run the risk of insufficiently drying the material.

WHAT GOES ON IN THE DRYING HOPPER As long as the drying process is under control, you can be reasonably assured that the material being delivered to the molding machine or extruder has been properly conditioned and good parts will result. With a process as complex as drying, however, how can you be sure it is under control? Almost more important, what are the consequences if the process should go out of control? The answer to this latter question is that the consequences can be quite dire. If the material you are drying requires four hours under proper drying conditions, and you are processing 100 lb (45 kg) per hour, then you need to have at least 400 lb in the drying hopper at all times. Assume for a moment that a kink develops in the air hose delivering hot dry air to the hopper so that the air flow is reduced by 25%. A temperature sensor at the hopper inlet shows that the air temperature is at the correct setpoint – let’s say 250°F (121°C) – so there appears to be no problem. However, the reduced volume of air being delivered to the material in the hopper is now only sufficient to heat a portion of the material in the hopper to the proper d r y i n g temperature. Gradually, the temperature o f t h e material in the upper portion of the hopper drops to If airflow is not sufficient to maintain the specified 225°F (107°C) temperature throughout the hopper, resin is only and finally to exposed to proper drying conditions for a fraction of the prescribed 4 hours and quality problems can result. 200°F (93°C). The resin is spending only 2.5 hours at the prescribed

55 • July 2015 • Plastics News

Product NEWS drying temperature of 250°F (121°C). Several hours after the problem first occurred, incompletely dried material reaches the processing machine and the quality of the finished product begins to deteriorate.

that they don’t need to become problems. They can all be avoided with the help of a simple, inexpensive device called the Conair Drying Monitor, which can be added to even the simplest dryer controls.

Suppose that the operator or quality-control inspector recognizes that there is a problem with the parts after about 30 minutes of production. The machine is shut down, the kink in the hose is discovered and damage control begins. Half an hour’s worth of production is suspect and must be scrapped. The 400 lb of material in the hopper is also suspect and must be drained from the hopper. This material is quarantined and may need to be scrapped. Then it takes several more hours to refill the hopper and restart the dryer. Now, the fresh material needs to be dried for four hours so more time is lost. Finally, after a full shift or perhaps longer, it is possible to restart production. The damage is done, however. Hours and hours of downtime have accumulated and hundreds or even thousands of dollars in raw material and finished product have been scrapped. All because the temperature reading on the dryer itself could not tell the whole story. It could not describe the conditions actually existing in the drying hopper.

The key to its successful performance lies in a unique in-hopper temperature probe that measures the material temperature profile at various points (up to six of them) from the top of the hopper to the bottom (see drying hopper illustrations above). These temperature readings confirm that every pound of resin is held at the proper temperature for the time specified by the material producer. The temperature profile inside the hopper will be affected by any of process issues listed in the table above and the drying monitor alarm will alert the operator as soon as any temperature set points are exceeded. Referencing the Drying Monitor data, the operator can then diagnose and repair the problem before the material reaches the molding machine or extruder and before bad parts are produced.

The scenario just described is just one of many that can cause improper drying and cost you time and money. Other problems can include:


Air Flow Problems

• Kinked, punctured or loose hoses • Blower failure • Clogged filters • Excessive fines in the resin/regrind mix restricts air movement in the hopper

Temperature Problems • Temperature sensor failure • Incorrect dryer capacity • Material too wet or too cold entering the hopper • Loader failure • Heater burn-out • Reversed hoses • Blower running backwards Dew Point Problems

• Excessive moisture in incoming material • Return air temperature too high • Fouled or degraded desiccant

Drying Time Problems • Insufficient material in the hopper due to loader failure, pick-up wand not drawing, resin drawn off to prime another machine • Hopper too small • Poor mass flow in the hopper • Uncertain start time

The really unfortunate aspect to all these conditions is

Plastics News • July 2015 • 56

The Drying Monitor can also give processors the information they need to adjust airflow so that just enough heat energy is directed to the material for effective drying. The resin is neither over-dried nor under-dried and energy costs are held in check.

The Conair Drying Monitor – still the only system able to measure the temperature of plastic pellets in the drying hopper so that processors can maintain ideal conditions for producing good parts – has new expanded capabilities. The DM3 now can: • monitor up to 30 hoppers from one central interface • monitor drying in any hopper, regardless of brand • track drying-temperature trends over time • compare the performance of different dryers • communicate wirelessly with almost any webconnected device The DM3 is available as a stand-alone unit, DM3-i, for up to 30 hoppers or it can be embedded in TouchView™ dryer controls as the DM3-e for up to 15 hoppers.

A SMALL PRICE TO PAY Depending on process requirements (and availability of technical and financial resources), the Drying Monitor can

Product NEWS be adapted to almost any drying system, from a single stand-alone dryer and drying hopper, to multi-hopper central drying systems. As detailed in the box on page X, the newest version of the Drying Monitor even can be added to other dryer and hopper brands. At the start of this paper, we analyzed what you could have invested in raw materials and other expenses related to operating a single injection-molding machine or extruder for a year. It can amount to millions of dollars, and the success of your business depends on how efficiently you can turn those investments into saleable product leaving your shipping dock. If you run hygroscopic engineering

resins, then your efficiency and profitability depend on your dryers. The Conair Drying Monitor is the best way to take the guesswork out of the drying process and ensure flawless performance of your dryers. Even the simplest application of the Conair Drying Monitor –– can provide the protection you need against costly hidden drying problems. Considering how much you have already invested in producing quality parts, an investment in the Drying Monitor seems like a small price to pay for the peace of mind – and savings – that comes with knowing exactly what’s going on in your drying hoppers at all times.

ZAMBELLO counter-rotating twin-screw extruders Parallel type Although the range of gearboxes for counter-rotating twinscrew extruders used for medium, high and very high torques is already very wide, Zambello updates it constantly both with new sizes of standard products and tailored gearboxes for the exacting needs of customers. NRB series - With a transmissible torque density up to 17 Nm/cm3 per shaft The gearboxes of the NRB range have a horizontal shape (mounting position B3), which requires a connection to the electric motor by belts and pulleys. As a matter of fact, the reduction ratios available cover a ratio up to a maximum of i=25. ZT3 series - With a transmissible torque density up to 17 Nm/cm3 per shaft The gearboxes of the ZT3 series have approximately the same features as the NRB series, but have a vertical shape (mounting position B7). In this case the connection between gearbox and electric motor is carried out by an elastic coupling. Due to the possibility to mount the electric motor in the U arrangement, the final result is a very compact extruder. Reduction ratios available go from i=14 to max. i=80. TST range The TST range (Twin Super Torque) is available in two versions: TST-H and TST- 2H. Both series offer very high performance rates. TST- H series - With a transmissible torque density up to

20 Nm/cm3 per shaft. The gearboxes of this series are designed for exacting applications, where a high torque is required, which is transmitted by means of a single reversing unit. The connection to the electric motor is obtained by means of an elastic joint. The reduction ratios available go from i=14 to max. i=80. TST- 2H series - With a transmissible torque density up to 22.5 Nm/cm3 per shaft. The gearboxes of the TST-2H series present the highest technical level for which these are the best worldwide for heavy-duty jobs. The transmission of the torque is obtained by means of a double reversing unit. The reduction ratios available go from i=14 to max. i=80. Conical type As a completion of the range of gearboxes for counter rotating extruders, Zambello proposes the new ZC3 gearboxes for conical twin-screw extruders. At the moment the new gearboxes are available in three sizes, which are suitable for extruders having screw diameters of 55 mm, 65 mm and 80 mm. The essential feature of these gearboxes consists of ground conical gears according to AGMA 11 - DIN 3. Like the entire range of Zambello, also the gearboxes ZC3 enable an extremely high transmissible torque Examples of application: Civil building items, PVC products (doors, windows, pipes) Granulates, Petrochemical products

ZAMINDIA MANISH SANANDIYA / CEO : Mobile: +91 9925835500 : E-mail: C/602, Riddhi Tower, Nr. Lotus School, Jodhpur Gam Road, Jodhpur,Satellite, Ahmedabad –380015 Gujarat.India.

57 • July 2015 • Plastics News


High speed thermoforming machines with tilting technology


rapping Machinery(WM) SA available wide range of thermoforming machines for in mold punching with lower tilting platen designed and manufactured in Switzerland seems to be one of the answer to the market requirements of high quality economical batch sizes such as cups, bowls and tubs. The technology of the tilting group uses a combination of servomotor driven cams and levers, based on an innovative double desmodromic system which guarantees less vibrations compared to the other existing solutions available on the market. The absolute precision and repeatability of movements assures high quality products and long live to the punches and the tools of the mold. Three different sizes are available: FT 500 (570x375mm), FT 700 (705x400 mm) and FT 900 (880x520 mm) offering the most suitable solution to the small, medium or large production batches. All models are equipped with

a specific assisting-plug system where the plugs movement is controlled by dedicated servomotor providing an even and controlled distribution of the material inside the mold cavities. The possibility to set and program the different plug speeds and times can considerably improve the aesthetic appearance of the final products especially when using transparent materials. Great attention is paid in terms of real energy saving, assured by IPG system (Integrated Power Regeneration): the kinetic energy is converted in electrical energy that is regenerated into the power system of the machine. All FT series models are equipped with a latest generation software technology for a perfect management of all the cycle parameters and machine functions. The operator is guided in a very simple and safe step by step setting and all recipes are recorded on a USB with no limitations. The controls system is based on an extremely proven and

reliable, well tested B&R industrial PC combined with a compact device touch screen. ETHERNET switches are included to connect the line to the Company network, as well as the RSA (Remote Service Assistance), a new access hardware support, an evolution of the modem connection, with the advantage of higher speed without phone connection costs for a very efficient and precise after-sale service all over the world. A very wide range of stacking devices are also available, specifically studied for all particular production needs: from the most simple and economical ES (Easystack), up to the stacking and transfer unit with rotating plates RS (Rotostack), passing through other solutions for very shallow and thin products MS (Multistack). These stacking and counting units enable single-lane feed to downstream equipment like rim-rollers and packaging group.

Surface Generation compression moulding technology


idlands-based Surface Generation, a provider of advanced carbon fibre processing technologies, has unveiled new compression moulding technology for high-volume automotive and consumer electronics manufacturers. The firm’s multiplexing system claims to form fibre-reinforced plastic components in high-volume manufacturing environments with greater speed and precision. It uses a transfer process with a pressure containment cassette that allows

Plastics News • July 2015 • 58

mould faces and laminates to be held at predefined loads, even outside the machine.Mould faces are loaded into cassettes and passed through a series of material loading, preheating, moulding, cooling and demoulding stations, which precisely control the temperature and pressure applied. Surface Generation’s patented Production to Functional Specifications (PtFS) technology allows temperatures to be dynamically controlled to the exact local requirements of each part. Surface Generation chief

executive Ben Halford said: “This major PtFS advancement transforms high-volume compression moulding. Traditional transfer processes use laminate preheating, with cold tools to speed production. With PtFS and Multiplexing the mould heats, stabilises and cools parts, allowing the press to open early and freeing this expensive bottleneck to run again. “This approach allows multiple parts made from different materials to simultaneously flow down the same production line.


Wyss Institute’s Organ-on-polymer-chip technology


he Wyss Institute for Biologically Inspired Engineering at Harvard University in Boston has developed a technology that replicates human organs on a chip has won the overall Design of the Year 2015 Award, the most prestigious honor of its kind in the United Kingdom. It was also named the winner in the Product Design category. The technology has the potential to dramatically change drug development by reducing the need and possibly eliminating animal testing while achieving more accurate predictive results.

Calling it a "brilliant piece of design," Deyan Sudjic, Director of the Design Museum of London, noted that the

researchers "identified a serious problem—how do we predict how human cells will behave?—and solved it with elegance and economy of means, putting technology from apparently unrelated fields to work in new ways." Wyss Founding Director Donald E. Ingber, MD, PhD, and former Wyss Technology Development Fellow Dan Dongeun Huh, PhD, who collaborated and first designed the initial human organ on a chip in 2010. Applying a technology adapted from computer chip fabrication, Ingber and Huh used photolithography to produce a device made from silicone and a flexible polymer containing hollow micro channels lined with

living organ cells and blood capillary cells. Vacuum-powered movements replicate organ movements in the device, which is approximately the size of a memory stick. Since Ingber and Huh designed the first lung on a chip, several additional human organs on chips have been developed at the Wyss Institute, thanks to the efforts of a multidisciplinary team of scientists. The accuracy with which the chips emulate human organ-level functions could make animal testing obsolete by providing a faster, less expensive and less controversial means of predicting whether new drug compounds will be successful in human clinical trials.

PLA production made simple


esearchers from the KU Leuven Centre for Surface Chemistry and Catalysis now present a way to make the PLA production process more simple and waste-free. Their findings were published in Science. "We have applied a petrochemical concept to biomass", says postdoctoral researcher Michiel Dusselier. "We speed up and guide the chemical process in the reactor with a zeolite as a catalyst. Zeolites are porous minerals. By selecting a specific type on the basis of its pore shape, we were able to convert lactic acid directly into the building blocks for PLA without making the larger by-products that do not fit into the zeolite pores. Our new method has several advantages compared to the traditional technique:

we produce more PLA with less waste and without using metals. In addition, the production process is cheaper, because we can skip a step". Professor Sels is confident that the new technology will soon take hold. "The KU Leuven patent on our discovery was recently sold to a chemical company that intends to apply the production process on an industrial scale. Of course, PLA will never fully replace petroleumbased plastics. For one thing, some objects, such as toilet drain pipes, are not meant to be biodegradable. And it is not our intention to promote disposable plastic. But products made of PLA can now become cheaper and greener. Our method is a great example of how the chemical industry and biotechnology can join

forces".Though gaining popularity, PLA is not yet a full alternative for petroleum-based plastics due to its cost. The production process for PLA is expensive because of the intermediary steps. "First, lactic acid is fed into a reactor and converted into a type of pre-plastic under high temperature and in a vacuum", Professor Bert Sels explains. "This is an expensive process. The pre-plastic - a low-quality plastic - is then broken down into building blocks for PLA. In other words, you are first producing an inferior plastic before you end up with a high-quality plastic. And even though PLA is considered a green plastic, the various intermediary steps in the production process still require metals and produce waste."

59 • July 2015 • Plastics News

in the NEWS

Brussels trade body to challenge force majeures


lastics Converters (EuPC)'s Alliance for Polymers is to respond to a recent spate of force majeure declarations by the European polymer production industry.

The EuPC said that production lines across Europe had been forced to stop at the plastics converting level due to material shortages prompted by 40 force majeure incidents in the space of just four months. The Alliance for Polymers for Europe said it would provide detailed information on the current polymer market, while helping to assist raw material users through its network of national plastics associations and aiding companies in requesting suspension of certain EU import duties to relieve

the current shortages on polymer markets. The Alliance will be open to those companies and associations in Europe that needed more information on how to supply their business with polymers in the next five to 10 years. EuPC president Michael Kundel said the organisation had set up the Alliance for Polymers for Europe to fight what he called an “unjustified situation” around some recent force majeure decisions. The Alliance is also set to launch a study looking at aging polymer production sites in Europe to provide more transparency after some sites have announced more than 11 force majeure declarations in two years. A search for more material to be imported from outside the EU

First P-Fuel plant plans underway


nvestment company Bisan will be one of the investors behind the first P-Fuel plant in the UK, to be built at Appley Bridge near Wigan. P-Fuel technology creates a fuel source from waste plastics, and provides an alternative to biofuel. BIsan has a portfolio of investments including the myGeneration secondhand smartphone trading business and has a 16% stake in P-Fuel. P-Fuel and the Cheshire-based Appley Bridge Biomass Energy Limited will formalise a lease arrangement on an industrial park site for the plant. Engineering consultancy group Stopford Projects has been hired to apply for planning and environmental approvals to build, construct and

Plastics News • July 2015 • 60

operate the plant. P-Fuel chairman Patrick Volpe said: “P-Fuel now has a site location to launch and commission its first operating plant. “The UK Government is very supportive of the P-Fuel type of technology that effectively creates a positive fuel source from one of the world biggest nuisances waste plastics. "These waste plastics not only take hundreds of years to rid themselves from the= environment but also consume valuable land mass.” "Our fuels provide an alternative to biofuel that may use organic or plant inputs as stock feed which in some cases is also used as a food source for human consumption.

will be carried out, as well as group purchasing platforms, in compliance with EU competition law, potentially being created, states EuPC. Ron Marsh, former head of packaging firm RPC Group, is to lead the Alliance and report to the EuPC Steering Committee. Marsh said, “All plastics converters in Europe will now have the possibility to rate their polymer suppliers on specific customers’ criteria and some basic commercial and ethical rules will hopefully be reinstated.“The best polymer supplier for Europe will be announced next year in 2016 during the EuPC annual meeting in Lyon, France. Hopefully the situation will have improved by then.

IMF lowers growth forecast for the UK economy


he International Monetary Fund (IMF) has lowered its growth forecast for the UK economy for 2015 and next year. In its latest World Economic Outlook the Washington DC-based organisation said it expected the UK’s economy to grow by 2.4% this year, down 0.3% from its projection in April, and by 2.2% in 2016, down 0.1% on its earlier forecast. Overall global growth in 2015 is expected to be slightly lower than previously thought, due to what the IMF called a “setback to activity in the first quarter…mostly in North America”.

in the NEWS

Braskem sued in New York court over IoD urges support involvement in a graft scandal for EU-US trade deal


shareholder of Braskem SA has sued Braskem- theBrazilian petrochemical producer, accusing the company of involvement in a graft scandal that has engulfed key stakeholders Odebrecht and Petrobras and led to a selloff in Braskem's U.S.-traded stock, as per Reuters. The shares are down about a fifth so far this year. Plaintiff Douglas W. Peters is seeking class action status for the lawsuit, filed in a Manhattan federal court on behalf of individuals or institutions that purchased Braskem's American depositary receipts between June 1, 2010 and March 11, 2015, according to court documents. Braskem and four executives working for or linked with the company are accused in the suit of making "materially false and misleading statements regarding the

company's business, operational, and compliance policies." Braskem said in a statement it had not been notified of any legal proceedings in the United States and therefore could not comment. The defendants include Braskem Chief Executive Officer Carlos Fadigas and his predecessor, Bernardo Gradin. Marcela Drehmer, the chief financial officer of Odebrecht SA, Brazil's largest engineering firm and Braskem's controlling shareholder, was also named in the lawsuit. Braskem has long-term contracts to buy naphtha from Petrobras, the state-run oil firm at the center of a sweeping corruption scandal. The other defendants could not immediately be reached for comment. Over 100 people have been indicted on charges including corruption, money laundering and racketeering

Criminal intent suspected in two blasts at LyondellBasell facility in France


riminal intent is suspected in two fires at LyondellBasell facility in France. Two explosions, sparking huge fires, broke out at LyondellBasell petrochemical plant in southern France early on July 14. No one has been reported to be injured in the explosions that happened in Berrel'Etang near Marseille-Marignane airport. The company describes the "Berre petrochemical cluster" as "one of the largest petrochemical complexes in the south of France". Two tanks full of petrol and naphtha

caught fire after the blasts and a thick cloud of smoke was visible several kilometres away. The fire in the first tank of petrol was extinguished fairly quickly, but fire fighters only managed to put out the second blaze by late morning using foam, local authorities said.Investigators believed the explosions were the result of "a malicious act." The probability that these two fires in tanks 500 metres (1,640 feet) apart could be accidental is very low. Criminal intent is suspected in two fires.


ady Barbara Judge, chairman of the Institute of Directors (IoD), called on business leaders to fight the case for an ambitious EU-US trade deal and win over a sceptical general public across Europe. Speaking at the IoD City of London Annual Mansion House dinner Lady Barbara argued that the Transatlantic Trade and Investment Partnership (TTIP), currently being negotiated between the EU and US, is “in jeopardy” and called on business leaders to make the case for free trade loud and clear. She said that she was deeply concerned that they were losing the battle on one of the central planks of western liberal democracy – that is free trade. She also said that the free flow of goods, capital and people has been proven to be the most successful route to increasing human prosperity, then you too should be concerned. “I have seen first-hand how a more open and interconnected world brings prosperity and opportunity. Europe and the United States have a history of cooperation, and of shared values and goals. TTIP offers an opportunity to continue this into the future and ensure that Europe remains relevant and competitive. “The benefits of TTIP are not about abstractions. They are about making it easier for companies, particularly small ones, to sell their goods and services in many new markets, to give consumers more, and cheaper, choices.” In a survey of IoD members, conducted in late 2014, nine out of 10 business leaders said they supported the trade deal.

61 • July 2015 • Plastics News

Notifications Government of India Government of India Ministry of Finance Ministry of Finance (Department of Revenue) (Department of Revenue) (Central Board of Excise and Customs) (Central Board of Excise and Customs) Notification No.65/2015-CUSTOMS (N. T.) Notification No.65/2015-CUSTOMS (N. T.) TABLE-2

June 30, 2015 Sl.

Chapter/ heading/ sub- Description of goods


71 or 98

June 30, 2015 Tariff value

S.O. … (E).– In exercise of the powers conferred by sub-section (2) of section TABLE-2 14 of the Customs Act, (US $) S.O. … (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, No. heading/tariff item Sl. Chapter/ heading/satisfied sub- Description of goods Tariffand value 1962 (52 of 1962), the Central Board of Excise & Customs, being that it is necessary (1) (2) (3) (4) 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and No. heading/tariff item (US $) expedient so to do, hereby makes the following amendment in the notification Government 1 71 or 98 Gold, in any of form,the in respect of which 382 per of 10 grams expedient so to do, hereby makes the following amendment in the notification of the Government of (1) (2) (3) (4) the benefit of entries at serialdated number the 3rd India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), Gold, in any form, in respect of which 382 per 10 grams India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd 1 71 or 98 321 and 323 of the Notification No. August, 2001, published in the Gazette of India, Extraordinary, Part-II,theSection-3, (ii), benefit of entries atSub-section serial number August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), 12/2012-Customs dated 17.03.2012 is 321 and 323 of the Notification No. vide number S. O. 748 (E), dated the 3rd August, 2001, namely:availed vide number S. O. 748 (E), dated the 3rd August, 2001, namely:the said notification, TABLE-1, TABLE-2, TABLE-3 In the saidIn notification, for TABLE-1, TABLE-2, andfor TABLE-3 the following Tables shall be and 2 71 or 98 namely:substitutedsubstituted namely:TABLE-1


12/2012-Customs dated 17.03.2012 is Silver, in any form, in respect of which 516 per kilogram availed benefit of entries atTables serial numbershall be the the following Silver, in any form, in respect of which 516 per kilogram 322 and 324 of the Notification No. the benefit of entries at serial number 12/2012-Customs dated 17.03.2012 is 322 and 324 of the Notification No. availed 12/2012-Customs dated 17.03.2012 is availed TABLE-3

heading/ Description goods Tariff value US $ Tariff value Sl. No. Sl. No. Chapter/ heading/Chapter/ subDescription of goodssub- Tariff value US $ Sl.of Chapter/ heading/ sub- Description of goods TABLE-3 No. heading/tariff item (Per Metric Tonne)(US $ Per Metric heading/tariff itemheading/tariff item (Per Metric Tonne) Sl.

No. heading/tariff item (1) (2)


1 (1)

080280 (2)

Areca nuts (3)

Tariff value Tons ) (US $ Per Metric (4) Tons ) 2268” (4)



Areca nuts

[F. No.2268” 467/01/2015 -Cus-V ]








1511 1 10 00

1511 10Crude 00Palm Oil


Crude Palm Oil


1511 2 90 10

1511 90RBD10Palm Oil


RBD Palm Oil

Chapter/ heading/ sub- Description of goods


1511 3 90 90

1511 90Others 90– Palm Oil


Others – Palm Oil


1511 4 10 00


Crude Palmolein


1511 5 90 20 1511 6 90 90

1511 10Crude 00Palmolein 1511 90RBD20Palmolein 1511 90Others 90– Palmolein 1507 10Crude 00Soya bean Oil


7404 00Brass 22Scrap (all grades) Poppy seeds 1207 91 00


6 7 8 9

1507 7 10 00 7404 8 00 22 1207 91 00 9

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(4) 662 682 672

MOHANTY) [F. No.(SATYAJIT 467/01/2015 -Cus-V ] Director (ICD) (SATYAJIT MOHANTY) RBD Palmolein 686 Note: - The principal notification was published in the Gazette of India, Extraordinary, Part-II, SectionDirector (ICD) 3, Sub-section (ii), vide Notification No. 36/2001–Customs (N.T.), dated the 3rd August, 2001, vide Others – Palmolein 685 Note: - The notification was3rd published the Gazette Extraordinary, Part-II, Sectionnumber S. principal O. 748 (E), dated the August,in2001 and wasof India, last amended vide Notification No. Crude Soya61/2015-Customs bean Oil 763 3, Sub-section (ii),(N.T.), vide Notification No. June, 36/2001–Customs (N.T.), the 3rd August, 2001, vide dated the 15th 2015, published in thedated Gazette of India, Extraordinary, number S. O. 748Sub-section (E), dated(ii), thevide 3rdnumber August,S.2001 and(E), wasdated last the amended vide2015. Notification No. Part-II, Section-3, O. 1570 15th June, Brass Scrap (all grades) 3533 61/2015-Customs (N.T.), dated the 15th June, 2015, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 1570 (E), dated the 15th June, 2015. Poppy seeds 2602

July 05-11, 2015

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Notifications MINISTrY oF CoMMErCE ANd INdUSTrY Index of Eight Core Industries (Base: 2004-05=100) May, 2015 The Eight Core Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production (IIP). The combined Index of Eight Core Industries stands at 178.6 in May, 2015, which was 4.4 % higher compared to the index of May, 2014. Its cumulative growth during April to May, 2015-16 was 2.1 %. Coal Coal production (weight: 4.38 %) increased by 7.8 % in May, 2015 over May, 2014. Its cumulative index during April to May, 2015-16 increased by 7.9 % over corresponding period of previous year. Crude oil Crude Oil production (weight: 5.22 %) increased by 0.8 % in May, 2015 over May, 2014. Its cumulative index during April to May, 2015-16 declined by 1.0 % over the corresponding period of previous year. Natural gas The Natural Gas production (weight: 1.71 %) declined by 3.1 % in May, 2015. Its cumulative index during April to May, 2015-16 declined by 3.3 % over the corresponding period of previous year. refinery Products (93% of Crude Throughput) Petroleum Refinery production (weight: 5.94%) increased by 7.9 % in May, 2015. Its cumulative index during April to May, 2015-16 increased by 2.6 % over the corresponding period of previous year. Fertilizers Fertilizer production (weight: 1.25%) increased by 1.3 % in May, 2015. Its cumulative index during April to May, 2015-16 increased by 0.7 % over the corresponding period of previous year.

June 28- July 04, 2015

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63 • July 2015 • Plastics News

Notifications Steel (Alloy + Non-Alloy) Steel production (weight: 6.68%) increased by 2.6 % in May, 2015. Its cumulative index during April to May, 2015-16 increased by 1.7 % over the corresponding period of previous year. Cement Cement production (weight: 2.41%) increased by 2.6 % in May, 2015. Its cumulative index during April to May, 2015-16 decreased by 0.1 % over the corresponding period of previous year. Electricity Electricity generation (weight: 10.32%) increased by 5.5 % in May, 2015. Its cumulative index during April to May, 2015-16 increased by 2.2 % over the corresponding period of previous year. Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Public Notice No. 21/2015-20 June 23, 2015 Format of Bank guarantee, to be executed with dgFT, for recognition as Pre-Shipment Inspection Agency (PSIA). In exercise of powers conferred under paragraph 2.04 of the Foreign Trade Policy, 2015-20, the Director General of Foreign Trade hereby inserts Appendix 2N-1 in the Appendices and Aayat Niryat Forms of the Handbook of Procedures, 2015-20, as annexed to this Public Notice, prescribing a new Bank Guarantee Format, to be executed with DGFT, for recognition as Pre-Shipment Inspection Agency. 2. Effect of this Public Notice: For recognition of PSIA, Bank Guarantee is to be executed with DGFT. Bank Guarantee Format for the same is hereby notified. (Pravir Kumar) Directorate General of Foreign Trade [Issued from File No.01/53/162/Misc/PSIA/AM15/S-5/IC]

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65 • July 2015 • Plastics News


Reserve Bank of India Foreign Exchange Department Central Office Mumbai- 400 001 Notification No. FEMA.344/2015 RB June 11, 2015 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015 In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May 2000) namely:1. Short Title & Commencement:These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015. They shall come into force from the date of its publication in the Official Gazette. 2. Amendment of the Regulations:In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May 2000), I. In Regulation 2: a. after clause (iie), the following new clause shall be added, namely:‘(iif) “employees’ stock option” means the option given to the directors, officers or employees of a company or of its holding company or joint venture or wholly owned overseas subsidiary/subsidiaries, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a predetermined price;’ b. after clause (x), the following new clause shall be added, namely :“(xa) “sweat equity shares” means such equity shares as issued by a company to its directors or employees at a discount or for consideration other than cash, for providing their know-how

July 05-11, 2015 Plastics News • July 2015 • 66

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67 • July 2015 • Plastics News

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69 • July 2015 • Plastics News

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