Canadian Plastics October 2008

CanadianPlastics www.canplastics.com

SURVIVAL GUIDE: KEEP YOUR BUSINESS AFLOAT

INJECTION MOLDING Moving beyond auto parts

MANUFACTURING IN CHINA

Understanding IP protection

MOLDMAKING REPORT

Competing through diversification

COLORANTS

Checking the hot trends

OCTOBER 2008

CANADA POST PUBLICATIONS MAIL AGREEMENT NO. 40069240

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contents

Canadian Plastics OCTOBER 2008 VOLUME 66 NUMBER 9

LOOKING BACK:

The January 1968 issue of Canadian Plastics tried to have some fun with the readers, in a joke-telling section called “Parting Line�: “Plastics plays a big part in toys, of course.

Did you hear the one about a new political toy? It talks, but doesn’t say anything...Or about the waiter doll? You wind it up and it looks the other way.� A third joke played off then-Democratic Senator Bobby Kennedy’s family of 11 children: “There’s also the Bobby Kennedy doll. You wind it up and it has another doll.� Hopefully, the editors didn’t quit their day jobs.

page 13

Number of the month:

*$100,000

* Financial grant from the Ontario government to attract overseas customers to the CAMM Moldmakers Trade Fair in November. (see pg. 14)

4

Editor’s View: s 0LASTICS BAGS VS THE HERD MENTALITY

6

Ideas & Innovations: s ,ASER WELDING INTELLIGENCE FOR the auto industry

7

News: s %LTON -ANUFACTURING Business is booming for Milton, Ont. window frame molder s 'OLF UPDATE 0LASTICS INDUSTRY hits the links s .EWS "RIEFS AND 0EOPLE

9

Executive’s Corner: s 4HE IMPORTANCE OF BUSINESS evaluations

24 Technology Showcase 26 Advertising Index 27 Plastics Data File 27 Classifieds 29 Design Ideas: Sports and leisure 30 View from the Floor: s 4AKING -ECHANICAL !DVANTAGE PLUS: Jim’s Tip of the Month

pages 10, 18, 22

page 29

10 SURVIVAL GUIDE INJECTION MOLDING: MOVING BEYOND AUTOMOTIVE PARTS North America’s once-mighty auto industry is going through troubled times — and with reduced demand for plastic parts, so are many injection molders. For those wondering how to compensate for this hit to their business, Canadian Plastics profiles three custom molders that are expanding into a variety of innovative non-automotive markets.

13 MOLDMAKING REPORT: COMPETING THROUGH DIVERSIFICATION Specialty welder Tool-Tec Welding Inc. took advantage of public-private partnership funding to rewrite the book on robotic cell welding, and boost their competitiveness in the process. Inside, we show you how. Also, a new study spells out the importance of diversification to the future of Windsor’s MTDM industry.

PLUS: Which legendary Canadian hockey star will be appearing at the upcoming CAMM Moldmakers Trade Fair? Find the answer, and a lot more, in our special preview section.

18 SURVIVAL GUIDE MANUFACTURING IN CHINA: PROTECTING INTELLECTUAL PROPERTY China is home to the largest goods market in the world, and virtually every foreign manufacturer wants its foot in the door. Competing in China may be a key to economic prosperity, but it can also lead to disaster, with counterfeiters and infringers lying in wait to produce cheap knock-off product versions. The right corporate IP protection strategy can make the difference between failure and success.

22 SURVIVAL GUIDE COLORANTS: COLOURS OF THE FUTURE In a crowded marketplace, catching the consumer’s eye quickly is all-important for today’s manufacturers — which means that, more than ever, plastics processors are being called on to deliver distinctive products. The good news is that colorant suppliers are stepping up to the challenge with bolder and brighter colour palettes.

Visit us at www.canplastics.com www.canplastics.com October 2008 Canadian Plastics 3

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editor’s view

www.canplastics.com MANAGING EDITOR Mark Stephen 416-510-5110 Fax: 416-510-5134 E-mail: mstephen@canplastics.com

Plastic bags vs. the herd mentality T he 19th century German philosopher Friedrich Nietzsche tends to get a bad rap nowadays, in part because of the inspiration many Germans took from his writings to formulate their philosophy in the years leading up to World War II. Nietzsche was right on the money, though, when it came to understanding the phenomenon of the herd mentality (a phrase he coined, by the way). He divided the herd into two groups, one of which he described as influenced by the media, and by what others around them perceive as “right” according to the latest trends and social norms.

I came across a textbook example of this a little while ago, while reading a news story about a proposal to ban plastic shopping bags at large stores in the Vancouver area. A local advocate of the ban was quoted as saying that, south of the border, San Francisco had already succeeded in banning the bags. “We’ve decided that if San Francisco can do it, we can too,” he said.

This appears a perfect summation of the thought process of many — if not most — supporters of plastics bag bans. Plastics bags must go, they argue, because this or that other municipality has already gotten rid of them — therefore it must be the right thing to do.

This is, of course, exactly how a bandwagon gathers speed.

Needless to say, the anti-plastic bag bandwagon is powered almost entirely by poor science. Not that this matters, though, since supporters of the bans often seem more interested in feeling good about themselves than in making rational

decisions based on the facts — at least if their own words are any indication. As one Chicago-based activist put it: “We all have a tendency to buy too much stuff, and I think the symbolic nature [of plastic bag bans] is what has made this such a powerful thing.”

You don’t have to be Sherlock Holmes to deduce that what this person is actually against is perceived consumer excess, and that plastic bags are distasteful to him for purely “symbolic” reasons relating to this.

The latest exposure of the flawed science behind plastic bag bans, meanwhile, comes from Australia. That country’s Environment Minister is planning to phase out free single use plastic bags nationwide

by January 1 next year. A cornerstone of his argument is a report carried out for the Australian government in 2002, which said that plastic bags were responsible for the deaths of 100,000 marine animals a year.

This statistic, if true, could arguably make the problem of discarded plastic bags a legitimate global issue.

The problem is, it isn’t true. The claim, it turns out, is a misrepresentation of a 1987 Canadian study in Newfoundland, which found that, between 1981 and 1984, an estimated 100,000 marine animals were killed by discarded nets. The Canadian study made no mention of plastic bags.

When confronted with this by a group of scientists and marine experts, the Environment Minister simply reiterated his commitment to the phase out by January 1, “no matter what.”

This could serve as the motto for many of the anti-plastic bag crowd, divorced as they are from the credible science: no plastic bags, no matter what.

Mark Stephen, managing editor mstephen@canplastics.com

TECHNICAL EDITOR Jim Anderton 416-751-5749 E-mail: jimeditorial@yahoo.ca ASSISTANT EDITOR Umair Abdul 416-510-5112 Fax: 416-510-5134 E-mail: uabdul@canplastics.com ART DIRECTOR Valerie Perrott PRODUCTION MANAGER Steve Hofmann 416-510-6757 E-mail: shofmann@bizinfogroup.ca PRINT PRODUCTION MANAGER Phyllis Wright PUBLISHER & EDITORIAL DIRECTOR Judith Nancekivell 416-510-5116 Fax: 416-510-5134 E-mail: jnancekivell@canplastics.com ASSOCIATE PUBLISHER Bill Young 416-510-5124 Fax: 416-510-5134 E-mail: wyoung@canplastics.com CIRCULATION MANAGER Diane Rakoff 416-510 5216 Fax: 416-510-6875 E-mail: drakoff@bizinfogroup.ca HEAD OFFICE 12 Concorde Place, Suite 800, Toronto ON M3C 4J2. 416-442-5600, Fax: 416-510-5134 CANADIAN PLASTICS is published 10 times a year by the Business Information Group, a division of BIG Magazines LP., a leading Canadian information company with interests in daily and community newspapers and businessto-business information services.

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The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information please contact Judith Nancekivell, 416-510-5116.

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EDITORIAL ADVISORY BOARD: Brian Read, president, Horizon Plastics Company Ltd. Tom Meisels, president, F.G.L. Precision Works Ltd. James Ellis, vice-chairman, CPI Plastics Group Ltd. Mark Lichtblau, vice-president, Haremar Plastic Manufacturing Ltd.

4 Canadian Plastics October 2008 www.canplastics.com

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ideas and innovations

Laser welding intelligence for the auto industry “Also, because it’s very localized heating, you can in some cases get away with having no flash.”

In particular, Bates’ research focuses on the contour approach, which is well suited for the larger parts and complex seam geometries seen in the automotive industry. With contour LTW, a laser travels once along the weld path, and only short segments along the weldline remain molten at any given instant. By comparison, other laser welding methodologies, like simultaneous welding, involve the use of multiple lasers or fibre optics to irradiate the entire weld seam.

As a result, contour welding prevents the collapse or meltdown of the entire interface, and any gaps at the part interface that exceed critical dimensions could cause weld defects. Additionally, according to Bates, whether a gap will be problematic depends on the weld design and the type of material being used in the application.

“A lot of our early work has been trying to understand the effect of important welding variables such as power and scan speed on resulting joints. Unlike many other joining processes, we have found that this technology is very sensitive to material properties. Understanding the laser material interactions is critical.

The body of research accumulated by the AUTO21 group has allowed Bates and his team to partner and consult with several major Tier 1 suppliers. For example, one major Canadian processor was interested in understanding the behaviour of glass-filled nylon in laser welding applications, while another was working with polycarbonate.

“They’re interested in things like gaps,” explained Bates. “They are the ones that are signing off on the drawings so they need to know, in terms of a gap, what kind of gaps can we live with, and how can we mitigate this problem through design, mold or welding modifications.”

Bates and his team have also worked with three material suppliers, who are interested in providing their customers with comprehensive information about the material through design manuals and technical support.

By Umair Abdul, assistant editor

Photo Credit: Yue Chen

P

hil Bates is working to bridge the gap when it comes to laser transmission welding (LTW) — both literally and figuratively.

Bates, who is a professor at the Royal Military College of Canada and the Canada Research Chair in Polymer Processing and Joining, has been researching the laser welding of thermoplastic components as part of an AUTO21 research project.

Generally speaking, laser welding allows the processor to shine the laser through a clear or laser-transparent surface, which is then absorbed by a laser absorbing surface. Unlike friction-based welding processes such as vibration welding, laser welding allows for the joining of complex shapes and high-tech parts with electronic components that may be sensitive to vibratory movement.

“With laser transmission welding, generally there is no vibration,” noted Bates.

Mingliang Cher a PhD candidate at Queen’s University uses the laser welding station.

“They are interested in how their material behaves,” said Bates. “It’s the fundamental understanding of, ‘here’s my material, tell me what happens when you shine a laser through it.’”

Additionally, the group has undertaken new research based on applications by some of the OEMs and Tier 1 suppliers they have worked with. Bates is currently working with an application that has a TPO part with a Class A surface, to determine the key parameters to avoid sink marks on the back of the part.

The group is also looking at novel technologies to weld tubes to plates.

“We are using designs of static mirrors that would allow you to weld tubes to plates, so you could manufacture a heat exchanger or manifold system,” he said.

Bates works in collaboration with Drs. Zak and Kontopoulou at Queen’s University, and Drs. Kamal and Walt at McGill University.

Dr. Phil Bates, Royal Military College of Canada (Kingston, Ont.); 613-541-6000 ext. 6609 AUTO21 Network of Centres of Excellence (Windsor, Ont.); www.auto21.ca; 519-253-3000 ext. 4130

6 Canadian Plastics October 2008 www.canplastics.com

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news

Elton Manufacturing: Business is booming for Milton, Ont. window frame molder

T

he Dutch have long had a reputation as among the best practitioners — if not the inventors — of capitalism. It’s certainly easy to make this argument based on the career of Tom Boer, founder of Milton, Ont.-based Elton Manufacturing.

Founded by Boer in 1981, originally under the name Ontario Door Sales Ltd., Elton Manufacturing has grown to become a worldwide supplier of window frames and weather-stripping within the garage door industry, successful enough — even during the U.S. housing slump — to have recently expanded into a second facility in Milton at the end of last year.

Boer’s path to plastics processing was anything but direct.

Born in Holland, he took an engineering degree before immigrating to Canada in 1974. “I settled in Milton, and tried my hand at farming,” Boer explained. “But after three years with virtually no rain, I packed it in.” Taking a job as a sales manager in a garage door factory, Boer worked his way up to the position of general manager. “I realized this was my niche, and after trying unsuccessfully to buy the business, I decided to start my own company,” he said.

LOCATION, LOCATION, LOCATION Quality issues with suppliers led Boer to consider doing his own injection molding of window frames and extrusion of weatherstripping. “We finally started manufacturing our own products three years ago,” he said. “Currently, we have 14 injection molding machines and three extrusion lines.” Frames are injection molded using pre-coloured polypropylene or paintable styrene, Boer said, and have a unique wood grain texture.

Elton Manufacturing currently employs approximately 60 workers in its two facilities, and Boer plans to add an additional 25 people this fall. “I have a very young and energetic work staff,” he said. “Most of my key people are under 30, and they’re a real source of strength and a key to our success.”

The company — which has customers in Canada, the U.S., South America, Europe, and the Middle and Far East — also draws strength from its own location in Milton, Boer said. “The advantage of being situated in Milton is easy access to Highway 401, as well as being within half an hour of Toronto, Hamilton, and Kitchener-Waterloo,” he explained. “Milton is a fast growing community, and the basic economy is very sound.”

The company gives back to the community too, manufacturing utility bins from regrind that are sold to raise money for cancer research.

Tom Boer (right) checks product quality at Elton Manufacturing.

Even the downsides to operating in Milton have been turned into an advantage. “There is a tremendous competition for jobs in Milton, and the wages are very high as a result,” he explained. “If you’re manufacturing in a high wage area, the only way to survive is by offering a well-made, innovative product, because you can’t compete on price.”

STEADY GROWTH & LEARNING CURVES Proof of the quality of Elton Manufacturing’s doorframes and weather-stripping is seen in the company’s steady economic growth. “We’ve had at least 10 per cent growth each year for the past 10 years,” Boer said. “In the past, we’ve had to move almost every year in order to expand.”

In 2005, the company purchased a tool and die company in Waterloo, a strategic move designed to establish control over its design and production processes by providing the capability to design to customers’ unique specifications. Boer also has his sights set on the possibility of opening a branch office in the U.S. within the next year, in either Nashville, Tenn., or Chicago.

“We’ve only been in plastics manufacturing for four years, and it’s a steep learning curve,” Boer said. “I’d like to think our creativity will keep us ahead of the competition.”

Elton Manufacturing (Milton, Ont.); www.eltonmanufacturing.com; 800-297-8299 www.canplastics.com October 2008 Canadian Plastics 7

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news

NEWS BRIEFS

Cincinnati Extrusion and the Battenfeld Extrusion group are being united under a single leadership. Both companies are part of the European private-equity investor Triton’s portfolio. Wolfgang Studener, managing director of Battenfeld Extrusionstechnik, will take over the management of both groups of companies, which, in addition to the two parent companies in Bad Oeynhausen and Vienna, include American Maplan in the U.S., B+C Extrusion Systems in China, Extrusion Kempen in Germany, and the Cincinnati Extrusion subsidiaries in Japan and the U.S.

A new Toronto-based company is manufacturing reinforced thermoplastic composites for a variety of industries. Terry Ball, company president, and Fraser Wray, CFO, head Innovative Composites Inc. Both men come from Magna International: Ball was president of Decoma Exterior Trim, and Wray was president and CEO of Decoma International Inc. The Decoma units are part of Magna.

According to an Aug. 15 news release, Innovative Composites is in the process of acquiring custom injection molder Lakeshore Diversified Products Inc. (LDP), of Spring Lake, Mich., as part of an effort to diversify into new markets. LDP, which specializes in insert and encapsulation molding, primarily serves the automotive market.

PLASTICS INDUSTRY HITS THE LINKS

The Canadian Plastics Industry Association held its annual Ontario Golf Classic tournament on August 28 at Cardinal Golf Course in Kettleby, Ont. Approximately 90 golfers turned out to enjoy the day.

The Canadian Plastics Pioneers (CPP) staged its own annual golf tournament of September 4 at Richmond Hill Golf & Country Club, in Richmond Hill, Ont. Twenty-one industry veterans participated. Among them was Brian Otterbein, who claimed the prize for closest to the pin. The event was capped by longtime CCP chairman Tom Thomas’ announcement that he is stepping down, to be replaced by Douglas Winter, former owner and president of custom molder Universal Gravo-Plast Inc. Brian Otterbein

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Mitutoyo Canada Inc. has appointed Fritz Jordan to the position of support service manager, responsible for all aspects of in-house repair, field service and calibration laboratory activities.

Mark Kloster

Fritz Jordan

The Society of the Plastics Industry, Inc. (SPI) has appointed Al Damico as executive vice president. Damico will oversee the work of SPI staff and leadership in managing SPI’s three councils formed last year to meet the specialized needs of the industry sectors represented by its membership: equipment manufacturers, material suppliers and processors.

Cumberland Recycling Systems, a new division of Cumberland Engineering, has appointed Dave Botelho as technical sales manager. Based in South Attleboro, Mass., the new division plans to expand in all areas of recycling: paper, metals, plastics and electronic waste.

Mark Kloster has joined Wittmann Canada Inc., of Richmond Hill, Ont., to provide service to Battenfeld injection molding machines. He has had 18 years with Battenfeld, which was bought by Wittmann earlier this year.

Auxiliary equipment supplier Process Control Corporation, of Atlanta, Ga., has named Dana G. Darley as its vicepresident and general manager.

Douglas Winter, Tom Thomas

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Dow Automotive, of Auburn Hills, Mich., has named David Bem its new global research & development director. He will be responsible for identifying, developing and commercialising new technologies.

Swiss-based automation supplier GĂźdel has appointed Jeff Stadler to the position of president and COO of GĂźdel North America, headquartered in Ann Arbor, Mich.

8 Canadian Plastics October 2008 www.canplastics.com

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executive’s corner

The importance of business evaluations

By Mark Borkowski, Mercantile Mergers & Acquisitions Corporation

TAKE ADVANTAGE OF RISK ANALYSIS Risk analysis is fundamental when your business plan is contemplating outside investors or bank funds. Part of this analysis includes a viable exit strategy for both you and them. This procedure will give you the opportunity to disclose possible risks, and give you a double advantage: it will reveal you as a realistic businessperson that can think ahead and consider damage control; and in the case of an unexpected disaster, it will show that you have thought of the legal implication.

Almost everything that is offered for sale in the marketplace has a value placed on it, hence a profitable selling price can be determined. The business evaluation analysis cannot be limited only to content. While evaluation criteria may differ from case to case, the main aspects under review remain the same: 1 The written business plan itself — dates and deadlines must be analyzed exhaustively. All fundamental questions must be answered.

2 The manner of presentation — form, clarity, conciseness, logical presentation, a realistic approach.

3 The viability of the business — from the point of view of market competitiveness, management capability and financial competence, does your business plan

present an opportunity that has a business strategy with a strong and sustainable competitive advantage?

Fundamentally, the inherent quality that makes your business useful and desirable forms the basis of business evaluations. Economic valuation is a survey of the monetary benefits that accumulate to your business, and thus business appraisal measures the economic benefit that accrues to you as the owner, including the price those benefits could command in the marketplace.

UNDERSTAND WHAT THE APPRAISERS WANT When a professional appraiser conducts a business evaluation, they usually survey the economic market conditions of your industry as well as the special features of your business, such as unique or unusual products and services you present to the marketplace.

Physical assets, such as furniture, fixtures, libraries or databases and computer equipment, are grouped into what is termed the “benchmark” value of your business because outsiders with money to lend, invest or buy consider the value of your business to be at least equal to the value of your firm’s total fixed assets.

Book value, an accounting term, doesn’t describe any kind of worth or value in financial terms but represents the original cost of the asset minus any taxable depreciation applied against the item. Book value is normally lower than the replacement cost of the asset, and it’s important that all fixed assets be valued at “market” rather than at “book” value.

Potential lenders, investors and buyers, concerned with the profit level of the business, should understand your definition of profit. If your business is operated as a sole proprietorship or partnership, then pre-tax profits are significant. In contrast, post-tax earnings are the measurement if your business operates as a corporation.

An examination of your business’s income statements (also known as a profit and loss statement) provides vital infor-

mation about the earning history of your firm.

Trends in revenues, expenses, and profits are determined from these business records. You should consider business evaluations like an annual medical checkup. Above all else, they can provide refreshing business information and warn you of pending problems.

Mark Borkowski is president of Toronto based Mercantile Mergers & Acquisitions Corp. Mercantile is a mid-market M&A business brokerage. Mark can be contacted at (416) 368-8466 ext. 232, or mark@mercantilema.com.

CLICK ON...

PLASTICS TV

CAN

B

efore your banker, a potential investor or a purchaser decides whether they will be interested in your business, they’ll want to know whether your business has the potential to be a long-term winner.

Bankers will be foremost interested in your solvency, a big issue in the plastics community in Canada at this time.

Potential acquirers of your business will certainly want to know whether your business is worth buying or financing because your business will earn them a healthy return. For all of these people, the key information will be related to your financial and operating stability, and that entails knowing how valuable your business is.

for interviews with industry experts, coverage of plastics industry events, and more!

New episodes every two weeks.

These 5-minute informationpacked videos are produced by the editors of Canadian Plastics.

To view them, go to our web site,

www.canplastics.com and look in the upper right corner of our home page.

We're the first plastics magazine in North America to bring you regularly scheduled videos. www.canplastics.com October 2008 Canadian Plastics 9

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SURVIVAL GUIDE: injection molding

PEGLOW TOOL & DIE: DIVERSIFYING TO REMAIN COMPETITIVE

A

The North American automotive industry isn’t what it used to be, leaving many auto part molders in search of opportunities in other markets. Three custom molding shops that are winning new business contracts in a variety of non-automotive sectors share their stories with Canadian Plastics.

By Mark Stephen, managing editor

BEYOND A

fter 28 years in the same Niagara Falls, Ont. facility, custom injection molder and mold, tool and die maker Peglow Tool & Die Inc. is without question well-established.

That’s not to say the company isn’t subject to the ups and downs of the plastics processing industry, however, or isn’t flexible enough to remain open to new business ideas.

Like many other shops, Peglow Tool & Die has been hit by the declining fortunes of the auto industry — in their case, by plant closures in the St. Catherines, Ont. area in particular. “Ninety per cent of our business used to be automotive-related work, primarily die-making, as well as a small amount of injection molding of tool aids used on automotive production lines,” said company president Stephen Peglow. “Now, automotive work probably constitutes 10 per cent of our die-making business, and we are not molding anything for the auto industry presently.”

To compensate, the company has taken on the widest range of injection molding work possible. “We’ve manufactured everything from novel sand rakes for golfers, to serving trays, to soap holders, to

Stephen Peglow on the shop floor.

prosthetic components,” Peglow said. “We will take on virtually any part order, and as a result our injection molding output has actually increased over the past year.”

Oftentimes, the pursuit of new opportunities involves sitting down with a prospective customer and assisting with part design. “It’s a service we’re happy to provide, and it facilitates part prototyping,” Peglow said. “Once the customer is satisfied with the design, we’ll go immediately into full-blown production.”

UNLOCKING THE MEDICAL MARKET An area of particular promise is molding medical parts. “Presently, we manufacture parts used in research and development for the medical field, such as work aids for labs,” Peglow explained. “This is a new market for us, and we anticipate it growing.” The company does not yet manufacture microparts, nor does it have a cleanroom, but Peglow anticipates the installation of a cleanroom if this side of their business continues to increase.

“We’re also investing in automation to enhance our injection molding machines, so the parts come through with as little interference with an operator as possible,” he said. “The quantities of our automotive parts were never large enough to warrant this step in the past, but we consider automation absolutely necessary to stay competitive in the medical parts market.”

Peglow Tool & Die is not presently ISO certified, but Peglow doesn’t believe this hampers their medical parts contracts.

“We document everything we do, and have a quality program that satisfies all of our customers and passes all yearly quality control audits,” he said. “Some of our staff are taking ISO courses, though, in addition to the part measurement training necessary for making medical parts.”

The company currently operates three Battenfeld injection molding machines in its 8,000 square foot plant: a 100 ton, a 110 ton, and a 275 ton unit. “Battenfeld

10 Canadian Plastics October 2008 www.canplastics.com

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SURVIVAL GUIDE: injection molding

D AUTOMOTIVE MOLDING provides very good technical support,” Peglow said. “Their machines are reliable and competitively priced, and the staff will do whatever they can to assist us.”

Peglow describes himself as optimistic about his company’s future. “The key to our growth — and to the growth of a lot of other Canadian molders, as well — is going to be diversification,” he said.

“Being able to take on a wide variety of jobs is the future of our industry.”

Given its location, it’s perhaps ironic that one of the few injection molding markets Peglow Tool & Die isn’t involved in lies on the company’s very doorstep: Niagara Falls’ ubiquitous souvenir industry. “Those trinkets are all made in China,” Peglow said with a smile.

Peglow Tool & Die (Niagara Falls, Ont.); www.peglow.ca; 905-358-9583 Battenfeld (Wittmann Canada Inc.) (Richmond Hill, Ont.); www.wittmann-canada.com; 888-466-8266

down to good effect, diversifying production and broadening its customer base for injection molded products to include medical, consumer, bio-technology and

agricultural markets. “Diversification has always been paramount to our strategic planning,” Rolph explained. “Our current diverse composition gives us the ability to

PROTOPLAST: EXPANDING NICHE MARKET APPLICATIONS

C

obourg, Ont.-based Protoplast Inc. has always been a busy shop, not only manufacturing injection molded parts for both automotive and nonautomotive markets, but also serving as a single-source supplier of molds, and delivering integrated turnkey services to a wide range of customers.

For a long while, though, there was no question as to which market segment was the most lucrative. “At one time, we had in excess of 75 per cent of our business from automotive production,” said Catherine Rolph, vice president, finance and administration. “Now, with the softening of the auto industry, automotive production currently represents approximately 40 per cent of our business.”

While remaining committed to the automotive industry, the company has made a conscious decision to use the slowwww.canplastics.com October 2008 Canadian Plastics 11

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PLAYING TO STRENGTHS Originally founded as a tool shop in 1981, the company also continues to take advantage of its strengths in this field. “We’re succeeding in non-automotive markets by spending time to develop molds that are the right choice for the project, whether it be a multi-cavity H13 mold with a hot manifold, or a hybrid mold combining highly thermoconductive materials in hard to cool places,” said Terry Harris, who started at Protoplast in1985 as an apprentice moldmaker and is now manager, design and engineering.

The company plans to continue work as an automotive molder, particularly for such “new domestics” as Toyota and Honda. In the meanwhile, however, Harris credits the discipline and experience in lean manufacturing gained from working within the automotive margins with helping Protoplast secure other accounts. “The one phrase I never get tired of hearing when I pick up the phone is, ‘I need your help with a problem’,” he said. “This tells me we’re doing something right.”

Protoplast Inc. (Cobourg, Ont.); www.protoplast.com; 905-372-6451 Demag Plastics Group (Strongsville, Ohio); www.dpg.com; 866-491-1045 Stephen Sales Group (Markham, Ont.); 905-940-5577

Sumitomo Plastics Machinery (Norcross, Ga.); www.sumitomoPM.com; Plastics Machinery Inc. (Newmarket, Ont.); 905-895-5054

GW PLASTICS: BRINGING AUTO PARTS EXPERTISE TO HEALTHCARE MOLDING

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y any standard, GW Plastics Inc. is a formidable organization. With six facilities worldwide, totaling 350,000 square feet of manufacturing space and housing more than 150 injection molding machines, the company ranks among the top 100 injection molders in North America.

Focusing on close tolerance precision molding and assembly, GW Plastics has long been committed to the automotive market. They remain so, but focus primarily on safety-related products such as seat belts, airbags, and sophisticated insert molded fuel system components.

While its output of these parts remains consistent, automotive applications are decreasing as an overall percentage of the company’s total manufacturing revenue.

Healthcare manufacturing, meanwhile, is on the rise. “Five years ago, our business was evenly split between automotive and healthcare markets,” said Larry Bell, vice president, business development and marketing. “Today, two-thirds of our production relates to healthcare.”

Bell sees similarities between the value of precision plastics in both the automotive and healthcare industries. “Much of the value that our industry has been bringing to automotive parts for the past 30 years is equally applicable to the healthcare market,” he said. “This includes part consolidation, weight reduction, and metal replacement.”

SMOOTH TRANSITION Due to the precision demanded in molding its safety-critical automotive parts, GW Plastics is particularly well suited to expand its role in manufacturing healthcare parts, Bell said. “Our production standards for automotive parts are already very high; our healthcare customers demand the same high level of precision,” he explained. “For example, in all of our

Photo Credit: GW Plastics Inc.

track and respond to other market trends and conditions as they develop.”

One of the company’s projects involves working with Exxon/Santoprene to develop creative processes in injection blow molding that will fill a niche in a variety of markets, automotive and non-automotive alike. “For us, this will be the key to long term planning and sustainability: niche markets that feed the product development cycle in all industries,” Rolph said.

Protoplast currently houses 13 injection molding machines in its 40,000 square foot processing plant. Primarily manufactured by Sumitomo, but also including a Demag model, the machines cover a range from a 75 ton electric unit to a 500 ton hydraulic molding machine with magnetic platens. “All of our injection molding units are flexible enough to suit any of the nonautomotive markets we’re currently targeting,” Rolph said.

Carrying out cleanroom molding at GW Plastics Inc.

safety-critical applications, for both automotive and healthcare applications, we use cavity pressure transducers to ensure a high level of consistency, shot-to-shot, day-to-day, standardized across all of our production locations.”

The company benefits further from having six Class 8 (formerly Class 100,000) cleanrooms, which allow for the contract manufacturing of complex healthcare diagnostic, medical devices, and drug delivery applications — a growing market segment as more and more aging baby boomers require medical attention.

GW Plastics uses Engel injection molding machines for many automotive applications, and finds the machines well suited for healthcare production, with little upgrade needed. “For healthcare parts, it is sometimes necessary to install automated press-side, Class 8 packaging stations equipped with HEPA filters,” Bell said. “Because we have a high level of standardization across all of our plants, it’s important for us to standardize on molding machines as well, and Engel fulfills our needs for most applications.”

The importance GW Plastics places on molding medical applications can be seen in its recent establishment of a new division called GW Silicones, equipped with state-of-the-art Engel liquid silicone rubber (LSR) machines. This division is primarily focused on the LSR rubber molding for healthcare and other related industries.

“GW Silicones provides us with an additional level of support to our customers in the healthcare market,” Bell said. “While automotive molding remains very important to us, we expect healthcare production to continue to be a larger percentage of our total output over time.”

GW Plastics Inc. (Bethel, Vt.); www.gwplastics.com; 802-234-9941 Engel Canada Inc. (Guelph, Ont); www.engelglobal.com/na; 519-836-0220

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moldmaking report

Moldmaking R

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Specialty welder teams up to boost competitiveness

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old, tool and die makers know that, in today’s tough economic climate, simply working hard isn’t enough.

Instead, a key to success lies in innovating to become more competitive — and there’s more than one way to do this.

For specialty welder Tool-Tec Welding Inc., located in Oldcastle, Ont., the pathway to innovation wasn’t traveled alone. In 2007, the company — which relies on the automotive sector for the majority of its business — partnered with the University of Waterloo to develop a robotic working cell capable of reconditioning molds, in the hope of opening new markets. The aim was to create a sixaxis robotic tungsten inert gas (TIG) welding system to weld multiple layers and build a 3-D Class A mold surface.

“The goal was to generate the basic capability so an optimized robot trajectory can be generated directly from a solid model with which any 3-D solid volume can be deposited on an arbitrarily oriented surface,” said Pat Zaffino, Tool-Tec’s founder and president. “To our knowledge, there are no other research or industrial applications in which 3-D Class A tool steel surfaces have been successfully built up using robotic TIG welding.”

WORKING EASIER & FASTER The project was funded jointly by the Ontario Centres of Excellence (OCE), which contributed $250,000; and Precarn Inc., an Ottawabased not-for-profit industrial research organization, which contributed $500,000.

Additionally, Oldcastle-based mold manufacturer Omega Tool Corp. supplied test molds and finishing work.

With molds costing anywhere up to $1 million, few companies can afford to make a new mold in the event of damage or the need for small engineering changes.

Pat Zaffino on the shop floor.

Tool-Tec’s robotic cell welding a mold.

Equally, few companies have the expertise to perform these changes themselves.

Most choose to outsource the work to a specialized shop instead — which is where Tool-Tec comes into the picture.

Engineering changes on injection molds often require the addition of tool steel to specific areas of the mold. Current industry practice is to perform these changes manually with TIG welding, Zaffino explained, but this is very labour-intensive and timeconsuming, and also requires the mold to be preheated to 700°F. Additionally, when TIG welding is carried out using manual techniques, the welder must be provided with protective gear and suitable cooling. “Using the robotic welding system, the process is now automated for very large weld build-

By Mark Stephen, managing editor ups that wouldn’t have been considered in the past, allowing for more and larger engineering changes to be done,” Zaffino said.

The process allows Tool-Tec to robotically recondition contoured molds up to three times faster than can be done manually, without sacrificing quality or accuracy.

Previously, the company had benefited from funding from the National Research Council of Canada (NRC) to achieve 2-D robotic welding on a flat plane. Zaffino hopes the new robotic cell will provide his company — which employs 35 workers in a 21,000 square foot shop — with an even greater competitive edge. “Robotically welding in the 2-D shapes allowed us to weld on 45 to 60 per cent of the molds that came into our shop,” he said.

“Now, we have the technology and ability to weld on 3-D surfaces in 3-D on a contoured surface using CAD data, allowing us to weld on at least 85 per cent of the molds.”

TEAM EFFORT Zaffino stresses the importance of ToolTec’s partnership with the University of Waterloo in bringing this project to life.

“The partnership was critical in providing state-of-the-art technology pertinent to the robotic TIG welding research, specifically in the areas of robot tool-path generation, weld quality and solid modeling,” he said.

No less important was the funding from NRC, OCE and Precarn Inc. “On its own, Tool-Tec didn’t have the financial resources to invest in the required research and development necessary in the robotic welding field,” Zaffino said. “The funding provided through public-private partnerships has made all the difference in the development of this leading-edge technology.”

Tool-Tec Welding Inc. (Oldcastle, Ont.); www.tool-tec.net; 519-737-9978 www.canplastics.com October 2008 Canadian Plastics 13

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moldmaking report

Big plans for CAMM Trade Fair next month

By Umair Abdul, assistant editor

I

f you’ve previously attended the CAMM Moldmakers Trade Fair, you’re in for a significantly different experience this year.

CAMM has been working with provincial trade offices, federal trade offices, the Windsor Essex Development Commission (WEDC), and the Export Development Commission (EDC) to attract serious buyers looking to invest in Canadian mold shops.

The tabletop show traditionally draws industry people from Ontario and Michigan, but CAMM is using a $100,000 grant from the Ontario government to attract overseas cusDan Moynahan tomers.

“Traditionally in the past, we would rent a hall and all of our suppliers would come in and show their latest wares,” noted CAMM president Dan Moynahan. “It was more of a social thing, and then people would get together and we’d have dinner together. This year, I felt the times called for something different.”

This year’s show, called “The Future is Here,” is also a reverse trade show. Several mold shops will be exhibiting, and CAMM is using the increased funding to attract more than 50 nontraditional customers from outside Canada.

“We’ve got a lot of skill around here, and there are a lot of people who would be thrilled to have the skills that we have in our city,” said Moynahan. “We are hoping for orders and oneon-one meetings coming right out of these.”

The Basics

WHERE: Caesar’s Windsor Casino WHEN: November 18-19, 2008 REGISTER: www.camm.ca/event_detail. asp?eventID=229 SEE PAGE 16 FOR EXHIBITOR LIST

scheDULe OF eVeNTs MONDAY, NOVEMBER 17 (Travel and Arrival Day) Set up exhibits ...................................................................................................4PM-10PM Cocktail reception (invitation only)......................................................................7PM-10PM

TUESDAY, NOVEMBER 18 Breakfast for guests, mold shop owners, dignitaries .................................... 8:30AM-10AM Opening Ceremony ......................................................................................... 10-10:30AM Show opens to guests and exhibitors only....................................................... 10AM-12PM Show opens to public ........................................................................................12PM-5PM Seminar 1 ............................................................................................................1PM-2PM Seminar 2 ............................................................................................................3PM-4PM Dinner at St. Clair College with Paul Henderson, who scored the most famous goal in Canadian hockey history............................................6:15PM-9:30PM

WEDNESDAY, NOVEMBER 19 Breakfast for guests, mold shop owners, dignitaries .................................... 8:30AM-10AM Show open to public ......................................................................................... 10AM-4AM Seminar 3 ..........................................................................................................12PM-1PM Seminar 4 ............................................................................................................2PM-3PM Break down and move out ...................................................................................4PM-8PM Dinner at Ceasar’s with Roberta Bondar, the first astronaut-neurologist......6:15PM-9:30PM

THURSDAY, NOVEMBER 20 Farewell to guests, mold shop owners, dignitaries ......................................... 7:30AM-9AM

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Sector must diversify to survive: study

ardly a day goes by in Windsor Essex County without news of a newly bankrupt mold, tool and die manufacturer (MTDM). Relentless offshoring, a strong currency and continued instability among the Detroit OEMs have hit MTDM firms hard.

And according to a new study based on data from 140 companies in the Windsor Essex region, if the industry in Windsor doesn’t diversify, an additional 18 to 25 shops will close in the region over the next three to five years. The report, which was developed by the Windsor Essex Development Commission (WEDC) and Lean Design Canada Inc., describes the current state of the industry and the changes that need to be made to help local shops survive.

“It would mean loss of jobs, loss of economic activity because the MTDM

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industry has a large economic spin-off,” noted Tracey Pringle of the WEDC. “Seeing as there would be some severe challenges brought forward if nothing was done for this industry, we needed to have a clear understanding of where we sit now.”

Luckily, for MTDM shops that are struggling to make ends meet, the news isn’t all bad. According to Pringle, local tool shops are skilled enough to solicit work in industries that require high tolerances and extremely high surface finishes, such as medical and aviation.

“Most of our shops are very highly skilled and able to move into other industries without a whole lot of retooling and retraining,” she explained. “There is no better place [than Windsor] in the world to do quality mass production of any sorts.”

The WEDC is also encouraging industry members to look outside the U.S. Nearly 90 per cent of the industry’s output has traditionally gone to the American market, and profit margins have shrunk as the Canadian dollar moved towards parity with the greenback. Pringle notes that Canadian shops should look at supplying European companies with tooling, engineering and on-the-ground support for their Canadian ops instead.

“If you look at the two currencies on a graph, how the Euro has floated and the Canadian dollar has floated, they have essentially remained on the same path,” she said. “It’s a much more stable currency market to be dealing in.”

Dan Moynahan, president of the Canadian Association of Mold Makers (CAMM) and Platinum Tool Technologies Inc., recently travelled to Mexico to perform some due diligence. Moynahan is looking at setting up a satellite operation in Mexico, noting an increasing number of auto assembly contracts, a strong demand for molds, and a number of opportunities in aerospace and medical.

Platinum, which has traditionally specialized in automotive lighting design, has targeted the aerospace industry as a potential growth market. But Moynahan notes that aerospace is a long-term goal, and setting up an operation in Mexico is a short-term solution that will allow him to diversify his customer base without a significant capital investment.

“There are lapdogs and there are hunting dogs,” he argued. “It’s a scary time for everybody, but having done it 36 years, if you’re not in a position where you don’t know if you are going to make it, you shouldn’t be looking at today — you should be looking at five years from today.”

The largest obstacle for shops looking

to diversify is the need for market intelligence. Although non-automotive markets represent significant opportunities for mold shops and businesses in Windsor Essex are highly skilled, they still need to do a lot of groundwork.

“The biggest barriers they have are perhaps the lack of market research and understanding of the industries, and the ability

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moldmaking report

to make connections and networks in those industries,” noted WEDC’s Pringle. “It’s access to those markets and having the financial wherewithal to attack those markets.”

The WEDC has undertaken a number of initiatives to help companies identify opportunities and forge gateways into new sectors. For instance, the commission is planning a seminar this month on Industrial Regional Benefits (IRBs) in the aviation, defence and aerospace industries, which can be of significant benefit to mold shops. The commission also recently conducted a study that took stock of the technical capabilities of local shops, which the WEDC can now use to match shops with foreign opportunities.

“Having that survey at our fingerprints allows us to very quickly get the information into the hands of international trade commissioners,” CPL said Pringle.

CAMM TRADE FAIR EXHIBITORS As of Sept. 10, 2008

• • • • • • • • • • • • • • • • • • • • • • •

Aalbers Tool& Mould Inc Active Burgess Mould & Design Anchor Danly Basic Tool BDO Dunwoody LLP Boride Engineered Abrasives Canadian Associations of Moldmakers Cavalier Tool & Mfg. Classic Tool & Die Copper & Brass Sales Crest Mold Technology Delcam DME of Canada Ltd DMS of Canada Economic Development Canada Ellwood Specialty Metals Enterprise Tool & Mold FGL Precision Works Inc Graphic Products North America Inc. In-House Solutions Inc - Mastercam Incoe Corp Inspect X Integrity Tool & Mold Inc

• • • • • • • • • • • • • • • • • • • • • •

Lens Tool & Mould Ltd Lomar Machine Repair Inc Master Machine Mega Mold International Metric Mold (1983) Inc Moldmaking Technology Magazine Nova Tool & Mold Inc Novatrim Inc OYAP Platinum Tool Technologies Inc Progressive Components Russel A. Farrow Limited Schmolz+Bickenbach Canada, Inc Self Lube Sorel Forge Company St Clair College Unique Tool & Gauge Inc Univeristy of Windsor Volkswagen Plant in Puebla (Mexico) Windsor Essex Development Commission Windsor Mold Group - Tooling Division Woodworth Inc

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SURVIVAL GUIDE: china

INTELLECTUAL P A

Competing in the Chinese marketplace is a key to economic prosperity for many foreign manufacturers. But as a “Wild West” economic frontier, filled with counterfeiters, infringers and knock-off product versions, it can just as easily lead to disaster.

Crafting the right corporate IP protection strategy can make all the difference.

By Mark Stephen, managing editor

ccording to a famous 1970s political slogan, “only President Nixon could go to China,” such was the degree of the country’s isolation. Today, virtually every manufacturer wants in, and they’re being welcomed as never before. The biggest market in the world, China is finally opening its doors to foreign enterprise after decades of selfsufficiency.

Perhaps the biggest single hurdle facing Canadian manufacturers planning to enter this market, however, lies in guaranteeing the protection of their intellectual property (IP) — the innovations, symbols, logos or designs developed and owned by that company. In this venture, the right corporate IT protection strategy, combining both defensive and offensive measures, can make the difference between success and failure.

GROUND RULES Traditionally guarded by patents on inventions, trademarks on branding devices and copyrights, IP can be more difficult to protect in China as a result of the country’s relatively recent embrace of the open market. “China has only recently had the restrictions of an earlier era removed, and is still a ‘Wild West’ economy in many ways,” said Paul Jones, principal at the law firm Jones & Co. Despite the fact that Chinese authorities have worked over the past two decades to create IP laws implementing regulations and judicial interpretations that generally adhere to international standards, procedural barriers and poor enforcement continue to be a problem. Additionally, counterfeiters and infringers in China grow more sophisticated daily, and are finding new ways to infiltrate legitimate distribution networks and developed markets with

knock-off versions of products.

Any manufacturer looking to enter the Chinese market should understand certain aspects of the country at the outset, experts warn. A basic understanding of Chinese law — including its strengths and weaknesses — is important, according to Paul Jones. “China is a civil law jurisdiction, like Quebec or Germany. Canadian processors familiar with doing business in those jurisdictions, for example, will find much that is similar in China,” he said.

Jones also noted that China’s legal system is improving, its lawyers becoming more proficient, and that these developments have a positive impact on protecting IP. “There is increasing respect for, and awareness of, IP in China,” he said.

An important development occurred on August 1, 2008, when China’s anti-monopoly law came into effect, Jones continued.

“This marks a real turning point in China in the appreciation of the seriousness of IP abuse, and is a further sign of the country’s growing maturity,” he said.

Manufacturers should also know the type of IP protection they require. There are three different types of patents available in China. The first is an invention patent, which requires a claim to be examined. “The biggest problem a processor will encounter in obtaining an invention patent in China is that the IP offices are heavily backlogged,” Jones said. “For this reason, the process can take up to five years.” Second is a utility patent, which isn’t examined for requirements and usually takes a few months to obtain, but which offers lesser protection and commands less respect from the courts. Lastly, there is a design patent, intended to cover the non-functional aspects of a product.

Regardless which they select, IP rights holders should file applications for both

18 Canadian Plastics October 2008 www.canplastics.com

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SURVIVAL GUIDE: china

L PROPERTY IN CHINA: A SURVIVAL GUIDE their core and fringe technologies and make certain their patents are properly translated.

For trademarks, meanwhile, companies should register their brands’ English and Chinese names.

A final category, trade secrets, is more problematic. According to Jim Wei, general manager of Superi Inc., an importer of Asian plastic molds, a trade secret in China must be technical or operational information unknown to the public, economically beneficial to the owner, and reasonably protected by the owner. Trade secrets are often difficult to enforce because of the high burden of proof required from the IP rights holder.

Amazingly, despite the notoriety surrounding IP theft in China, many foreign manufacturers still fail to register their products at all. “You’d be surprised how many companies continue to miss this step, despite the availability of many agencies with the experience to assist them,” said Steven Ganster, CEO of market entry and growth strategy consulting firm Technomic Asia. “We advise clients to assume their IP will be at risk, and then try and minimize that risk through a combination of legal and tactical maneuvers. The best way to proceed is to go to a professional for advice.”

To be clear: if a company does not file its patents and trademarks in China, it has no rights in China.

THE BEST DEFENSE It’s also important, at the outset, for a foreign manufacturer to research the backgrounds of those with whom they’ll be doing business in China. “You have to know and to understand who you’re dealing with, and their level of integrity, especially if you have a strong need to be

competitive,” said Steven Ganster. “Ultimately, the contract won’t protect you, the relationship will; and if something goes wrong, it’s easier to deal with someone you know.” If possible, select partners with brand images and reputations of their own to protect.

Regardless of the level of trust, a foreign manufacturer should never to reveal too much about a product to their Chinese suppliers. “One needs to provide limited information to the supplier,” said Jim Wei. “During the quotation stages and supplier selection, provide only essential information, or provide other designs portraying the final product.”

Manufacturers should also be aware of the value of a wholly owned operation. “A wholly owned manufacturing outfit doesn’t guarantee protection against IP theft, but it does minimizes the risk,” said Steven Ganster. “The operation can then work with outside companies to get components and materials, and bring them together in their own facility, which is better managed and protected.”

Protecting and controlling product knowledge may in fact be the most important single weapon against the leading cause of IP theft: the stealing of information by employees. “Probably the biggest problem foreign facing a foreign manufacturer in China is someone working at a company, learning how to make a product, and then leaving and opening their own operation,” Ganster continued. “It’s a dilemma that can make non-compete contracts irrelevant.”

Exercising vigilant governance, and control of the production process, greatly lessens this risk. “Manufacturers need to have managers that are trustworthy, and also run background checks on key hires,” Jim Wei said. “Also, keep vital designs or

IP ProtectIon In chIna: 20 PreventatIve StePS 1. Start early — register your IP in China.

2. For patents, do prior art searches in Chinese.

3. For trademarks, register in several classes, and choose a Chinese version of the mark.

4. Do not commence entry without first retaining advisors with specialized knowledge of China.

5. Select what will be made in China carefully — perhaps withhold the most innovative or high-margin products, or separate functions so that no one manufacturer makes the whole product.

6. Consider doing an IP audit on the project components.

7. Make sure that your project is economically feasible.

8. Build enforcement costs into your project feasibility plan.

9. Know your limit on losses from the project in advance, and do a thorough risk analysis.

10. Know the authority of the government that you are dealing with, and understand the true division of powers.

11. Use non-competition covenants. For employees, ensure that they conform to Chinese law.

12. Do not rely on the advice of your Chinese partner as to the enforceability of the contract.

13. Contracts should be in Chinese.

14. Negotiate in good faith and disclose material facts — required by Article 42 of the Contract Law. 15. Plan for the collection of evidence. In China, as in other civil law jurisdictions, the courts focus on written evidence. There is no discovery, and there are limitations on the affidavits that a notary will formalize.

16. Provide for monitoring mechanisms.

17. Have an enforcement plan for minor breaches — international arbitration is expensive.

18. Know in advance what you will do if the contract is breached — plan for trouble.

19. If you plan to take legal action, know what country the relevant assets or people are located in.

20. Remember: China does not enforce foreign judgments, U.S. judgments in particular.

Source: Paul Jones

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SURVIVAL GUIDE: china

The China Ready Company

technologies in the home country, classify information according to IP sensitivity, and compartmentalize the production process so as few people as possible see the finished process.”

First, filing a civil suit is a relatively inexpensive method of halting patent, trademark and copyright infringement.

The difficulty, however, is that the IP rights holder bears the responsibility of collecting evidence and packaging cases.

Also, litigation can take up to two years, and the infringer can halt the civil suit by filing a challenge. And even in the event of successful verdict, enforcement may

A GOOD OFFENSE Despite the best laid plans, IP theft may still occur — at which point the rights holder has several options.

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still be a problem. “If a manufacturer wins a civil judgement, as opposed to a criminal judgement, it’s the manufacturer that has to try and enforce it, not the police,” said Paul Jones. Having a good relationship with local officials can be a deciding factor in getting enforcement of a civil judgement. “If, for example, the mayor of a Chinese city realizes a foreign manufacturer, employing local people and paying taxes, is being unfairly treated by one of the citizens, he may feel compelled to get involved,” Jones said.

A second, less expensive remedy is to file an administrative action with a local office of the country’s Administration for Industry & Commerce (AIC). These are easier and faster than civil suits. “If the AIC agrees to take a case, it saves the foreign manufacturer time, difficulty and money,” Jones continued. “The disadvantage is that AIC involvement often marks the point at which the infringer simply moves to the next province and begins operations there.”

Cases of egregious infringement can be transferred from administrative authorities to the Chinese police. These tend to be much harder to set in motion than civil suits and administrative actions, and the IP rights holder must generally do all of the investigative work and package the case for the police.

CPL ResouRce List Jones & co. (Toronto); www.jonesco-law.ca; 416-703-5716 superi inc. (Waterloo, Ont.); www.superi.ca; 519-342-6542 technomic Asia (Chicago, Ill.); www.technomicasia.com; 919-855-5437

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www.expoplast.org

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SURVIVAL GUIDE: colorants

Global Repositioning, one of the four societal trends of ColorForward 2009, acknowledges a growing influence of Asian traditions and cultures.

COLOURS OF THE FUTURE L

Source: Clariant Masterbatches

ast year, colorant suppliers predicted that earthy palettes would dominate 2008, and brand owners would synchronize their colour choices with the 2008 Olympics in Beijing.

For 2009, however, colour forecasters are painting a very different picture. “Ecofriendly” colour choices and Asian influences are still strong, but colorant suppliers are predicting that these trends will be interpreted in a very different way.

With 2008 coming to a close, brand owners must look ahead to the colour palettes that will make the biggest splash with consumers.

Umair Abdul, assistant editor

THE NEW FACE OF ECO Environmentally friendly or “green” products are still all the rage with consumers, but earthy palettes aren’t as strong for 2009.

“I believe that there is always an opposing trend,” explained Cristina Carrara, ColorWorks Designer for Clariant Masterbatches. “As soon as you think you are seeing too much in the organic palettes, you start to see something that is very different. People need that contrast, they seek a balance in things.”

Linda Carroll, colour insight manager for Tarrytown, N.Y.-based Ampacet, noted that the company’s 2009 Eco-Centric palette provides a very different take on eco-minded colours. Last year, the palette included colours like Organic Green, a natural green colour with yellow and

earthy brown undertones.

“For the first time, we saw an expression of colour that wasn’t just the organic values of earth, but one of peaceful tranquility,” she explained.

For 2009, the company’s Eco-Centric palette includes Boundless Brown, Motile Mint, Pragmatic Pewter and Gaia Green, all of which are slightly brighter and bolder than previous palettes.

Additionally, Clariant’s Carrara predicts that there will be a big trend toward beige and wood-like colours, particularly because of the growing popularity of matte finishes.

BRIGHTER, BOLDER Across the board, colorant suppliers are recommending colour choices that are slightly bolder, brighter and more saturated.

Carroll notes that consumer markets are slowly transitioning out of a period of great uncertainty and change, which significantly influences current colour trends.

“You see a timid expression of colour when change is occurring, followed by a bolder expression of colour,” she explained.

“People are always looking to zig when the market is zagging, and one way to do that is a minimal level of shock value, something that awakens the senses.”

22 Canadian Plastics October 2008 www.canplastics.com

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SURVIVAL GUIDE: colorants

ALL EYES ON ASIA

Duality and Mosaic, two of the four societal trends that are a part of Clariant’s ColorForward 2009, feature vibrant and saturated choices.

Mosaic, for instance, features strong saturated hues including All Night Long dark blue, Pumpking orange, and Leaping Leprechaun green. The Duality family includes brilliant, vibrant colours and contrasting light and neutral shades, including a very light blue/green called Isis and a glossy fuchsia called Lolita. Other colours in the group include Insomnia, a mysterious blue/purple, and Bosporus Dusk, a neutral light blue/lilac. “We see very vivid and positive colours, becoming popular but also some tinted tones and also blue hues that expresses comfort and wellness,� noted Carrara.

Similarly, Ampacet forecasts that several bright, vibrant shades will come to the forefront. The company’s Societal Complexion palette includes the Restless Raspberry purple, a bright Tumultuous Tourmaline blue, the saturated Pivotal Pink, and Orange-Aid.

impact will spread.�

The Olympics may have come and gone, but the North American fascination with Asian culture will continue to play a role in colour choices for 2009. Global Repositioning, one of the societal trends from this year’s ColorForward, acknowledges the growing influence of Asian traditions and cultures. “Moving forward for 2009, we will still have all eyes on China because of its rapid growth and sustainability issues,� noted Carrara. “It’s a very strong theme that will increase in popularity as more and more people become conscious about the impact and responsibilities that come with economic expansion.�

But the Asian influences aren’t limited to China. Carrara also believes that enhanced cross-cultural connections made possible by the Internet and modern communications media have opened the door to the dynamism of other Asian cultures. “There is a lot of energy in Asia, especially in China and also in India,� she said. “As their markets are growing and their cultures gain visibility, the cross cultural

LOOKING BEYOND 2009 Brand owners who are keeping their eye on colour trends beyond 2009 should keep their eyes on turquoise and watery blues, as well as brown colours. Carrara notes that blue colours are the most widely popular in the world. Blues generally have positive overtones but these watery expressions fit well in a new natural palette.

Also, Carrara predicts that coral colours will gain favour in consumer markets. “Dusty antique rose colours and coral colours are warm, naturual colours,� she noted. “And, because coral itself is considered a semi precious stone that is becoming more and more rare because of pollution, we believe it provides an alternative to green for customers who want to follow CPL an ecology theme.�

RESOURCE LIST Ampacet Canada Co. (Kitchener, Ont.); www.ampacet.com; 800-265-6711 Clariant Masterbatches Division (Toronto); www.clariant.masterbatches.com; 800-265-3773

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www.canplastics.com October 2008 Canadian Plastics 23

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technology showcase

AUXILIARY EQUIPMENT

Dryers feature advanced wheel-drive system

Conair has added a unique traction-belt drive system that improves the performance of its small to mid-size Carousel Plus dryers (W15 to W400), and will soon be incorporating the feature into larger units in the line.

The system, which matches a cleated belt with a grooved traction band on the desiccant wheel that is the heart of the Carousel Plus dryers, is easier to use and more reliable than other flat-belt or chaindrive systems available.

The Carousel Plus dryers use costeffective desiccant-wheel technology. The dryers are also more compact than other dryers, with a footprint 40 to 60 per cent smaller, depending upon the model size; and weigh up to 85 per cent less, also.

The standard microprocessor control system ensures rock-steady temperatures and dew point levels, which are critical to processing many of the moisture and temperature sensitive polymers in common use today. The operator selects a particular dew point value and locks it into the control, which then adjusts various functions to hold that dew point precisely.

Conair (Pittsburgh, Pa.); www.conairnet.com Hamilton Avtec (Mississauga, Ont.); www.hamiltonavtec.com; 800-590-5546

Flexible modular gravity conveyors Dynamic Conveyor Corporation is introducing the DynaCon modular gravity con-

veyor system, designed to maximize flexibility in configuration by utilizing short roller sections to create the right length of conveyor every time, and can move product, boxes, cartons, packages, totes and pallets weighing up to 100 lbs.

Gravity modules are available in widths ranging from four inches to 36 inches and can be added or removed to create the ideal conveyor for each application. The roller sections of the DynaCon units are 20 inches long and include five rollers on four-inch centers.

Modules are constructed from high impact polycarbonate, are lightweight and allow for easy movement, and easy to assemble with no need for licensed installers.

Dynamic Conveyor Corp. (Muskegon, Mich.); www.dynamicconveyor.com; 800-640-6850 Plastics Machinery Inc. (Newmarket, Ont.); 905-895-5054

at lower speeds.

FlexFlite is easy to run and maintain.

The in-line, geared electric motor rotates the spiral and can be set at speeds suited to the density of conveyed materials, the angle of inclination, and distance and rate of transfer. Fully enclosed construction ensures contamination-free operation. The head housing provides access to the drive shaft for maintenance.

The conveyors are readily portable and ideal for conveying product from bags, bins, hoppers, or weigh stations. Rated capacities for the three FlexFlite models are 100, 300, and 400 cubic feet per hour.

Cyclonaire Corporation (York, Neb.); www.cyclonaire.com;800-445-0730 Con-V-Air (Mississauga, Ont.); 905-285-9934 (St-Huber, Que.); 450-462-5959

Clean, versatile flexible screw conveying

Waterproof, high intensity machine lights

FlexFlite Flexible Screw Conveyors from Cyclonaire Corporation use steel augers and flexible tubes up to 100 feet long to move materials at rates as high as 3,600 lbs. per hour.

The spiral auger is the only moving part that contacts the conveyed material. It is coreless to minimize clogging and has an oval cross-section to ensure positive movement of material through the delivery tube and metering accuracy. Close pitching of the spiral allows increased flexibility, a tighter bending radius, and operation

A new line of waterproof machine lights, illuminated by high intensity LEDs, that are suited for mounting inside or outside of machines and for use at workbenches is being introduced by O.C. White Co. Ultraflex LED Waterproof Machine Lights feature an array of six high output, energy efficient LEDs that provide 540 lumens of bright, cold, spot light to illuminate virtually any work space. Fully sealed against water, oils, and cooling fluids, these high intensity lights are available with a fully adjustable three-knuckle, two-

24 Canadian Plastics October 2008 www.canplastics.com

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technology showcase

LOOK TO THE SOURCE

arm assembly or a singleknuckle small mount.

Rated for over 50,000+ hours of service, Ultraflex LED Waterproof Machine Lights provide nearly limitless positioning possibilities while operating in challenging industrial environments.Incorporating a durable lens cover and built-in transformer in an IP65 housing, this CE approved machine light can be ordered in 120VAC and 24VDC versions with a variety mounting options.

O.C. White Co. (Thorndike, Mass.); www.ocwhite.com; 413-289-1751

INJECTION MOLDING

Pump-control technology reduces energy consumption Kadant AES is making available its new UniGY pump-control technology for injection molding applications, designed to reduce energy use by over 60 per cent by employing mathematical algorithms.

The UNiGY PhD system uses intelligent pump-control software to produce the precise flow rates and pressures demanded by each application. The UNiGY PhD system continually senses demand, managing pump speed and applied torque as required to satisfy variations in process demand, significantly lowering energy consumption and noise.

For processes where hydraulic demand is intermittent, the UNiGY system can reduce maintenance costs and extend pump life by slowing pump speed when flow is not required, while using torque management technology to maintain the desired system pressure at all flow rates.

The precise control of the UNiGY system prevents excess flow and simplifies hydraulic circuits, reducing or eliminating the need for cooling loops and fans, further reducing noise and cost, as well as extending the life of the oil by maintaining a consistent temperature.

Kadant AES (Queensbury, N.Y.); www.kadanteurope.com; 518-793-8801

Look to the source for solutions that meet your precise production needs; products that demand minimal maintenance; and representatives who value service over the sale.

Look for CDS, an OEM of world-class downstream extrusion machinery, at Expoplast, a plastics trade exhibition in Montreal, Canada.

Featured CDS machines @ Expoplast: Vacuum Sizing Tank

Belt Puller with vector drive

Servo Fly-knife Cutter with touch-screen controls Rotary Servo Cutter with fly-knife wheel

1930 52 nd Avenue, Lachine, QC, Canada H8T 2Y3 Tel.: 514 633-5933 Fax: 514-633-5944 1 877-633 -1993 info@cdsmachines.com www.cdsmachines.com

www.canplastics.com October 2008 Canadian Plastics 25

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technology showcase

MOLD TECHNOLOGY

Hot runner nozzle for high cavity molds

Part ejection tool eliminates marks, reduces cycle time

D-M-E Company’s new Quick Strip part ejection tool is a global, standardized offthe-shelf product that significantly reduces eliminates ejector pin marks, mold construction time and costs.

Implementing a Quick Strip eliminates the need for ejector plates and pins, risers and clamping plates, resulting in lower part costs, machining and maintenance.

With the absence of ejector pinholes as obstacles, cooling systems can also be optimized leading to faster cycle times.

Beyond cost and timesavings, the Quick Strip offers cosmetic advantages for parts where aesthetics is a critical factor. Because the Quick Strip “lifts” the part from the mold cavity rather than pushing it like an ejector pin, there are no marks left on the part.

Quick Strip is available in three standard sizes.

D-M-E of Canada Ltd. (Mississauga, Ont.); www.dme.net; 800-387-6600

The new Rheo-Pro N08 Star Gate hot runner nozzle from Mold Hotrunner Solutions Inc., designed for high cavity molds that require multiple side gating into the walls of the cavity, is a robust solution for 24/7 high volume production.

Ideal for long and tall tubular parts such as syringe barrels and medical applicators, the four tip side-gate method completely eliminates the costly cold runner material that is typical for such parts.

With easy mold integration and mold maintenance, the Star Gate nozzle performs best in molding applications with PE, PP and other non-sensitive materials that offer a wide processing window in terms of melt residence time or dwell time.

The unique nozzle design reduces the mold cost significantly in comparison to other more cumbersome side gating methods, such as disks, where the cavity inserts must shift towards the nozzle tip, creating an unnecessarily complicated hot runner assembly.

A Star Gate nozzle can distribute melt to four cavities through a small hot tip side-gate of 0.8-mm diameter (.032 inches) with a gate-to-gate spacing of 52.0 mm (2.047 inches). This spacing allows for efficient mold cooling to lower cycle time. Subsequently, the cavity plate and cavity inserts maintain good structural mold strength.

Mold Hotrunner Solutions Inc. (Georgetown, Ont.); www.mhsinc.com; 905-873-1954

TESTING EQUIPMENT

Moisture analyzer increases process control The Halogen Moisture Analyzer HR83 from Mettler Toledo quickly determines the moisture content of plastics directly on the production line during manufacturing and drying processes, helping to optimize production processes and ensuring product quality.

Measurement does not require chemicals, and can be carried out by untrained workers, giving a reproducible and straightforward “good/bad” analysis.

The compact analyzer fits comfortably next to the production line and its durability allows it to withstand demanding of dusty factory conditions.

Mettler Toledo Canada (Mississauga, Ont.); www.mt.com; 800-638-8537

For the latest industry news and videos, visit www.canplastics.com

advertising index Advertiser Acetronic Industrial Controls Inc. Arburg Arkema Canada Inc. CanPlastics TV CDS Chillers Inc. CPIA Expoplast Conair D-M-E Export Development Canada Haremar Kreator L.V. Lomas Maguire-Canada Staubli Corp Vortex Valves Weima America Inc.

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Telephone

E-mail

Website

800-803-8871 860-667-6500 800-567-5726 416-510-5116 877-633-1993 905-895-9667 905-678-7748 ext 283 800-654-6661 888-220-2217 866-283-2957 905-761-7552 519-941-7876 905-458-1555 866-441-8409 800-845-9193 785-825-7177 803-802-7170

sales@acetronic.com usa@arburg.com polymers.canada@arkemagroup.com jnancekivell@canplastics.com info@cdsmachines.com sales@chillersinc.com tsockett@cpia.ca info@conairgroup.com customer_service@dme.net

www.acetronic.com www.arburg.com www.arkema.ca www.canplastics.com www.cdsmachines.com www.chillersinc.com www.expoplast.org www.conairnet.com www.dme.net www.edc.ca/goods

info@haremar.com sales@kreatorequipment.com info@maguirecanada.com connectorsusa@staubli.com rbarragree@vortexvalves.com info@weimaamerica.com

www.kreatorequipment.com www.lvlomas.com www.maguirecanada.com www.staubli.com www.vortexcanada.com www.weimaamerica.com

26 Canadian Plastics October 2008 www.canplastics.com

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Get free information from the companies that interest you most.

Contact the company directly using the telephone number, e-mail address or web site listed below

plastics data file

Code-Marking Machines

Wide Range of Temperature Control and Instrumentation

Manufactures Sprinter™ automatic ink code-marking machines apply date codes, product codes, dots, etc. on metal, plastic, rubber, paper and other surfaces. Marking possible in any orientation. Message size up to 2 square inches. Cycle speeds up to 350 CPM. A complete line of operating supplies and auxiliary equipment is offered.

Sprinter Marking Inc. 740-453-1000 E-mail: sales@sprintermarking.com www.sprintermarking.com

Your best source for temperature control and automation. Hot runner temperature control systems, heating elements, melt pressure transducers and custom temperature/electrical control panels are just a some of the products offered. Services include repair, calibration and troubleshooting by our highly qualified technicians. Send for this 18-page catalogue for full details on products and services.

AceTronic Industrial Controls Inc. 12-385 Admiral Blvd., Mississauga, ON L5T 2M8 Tel: 800-803-8871 www.acetronic.com

classified ads MATERIALS

Elastomers for injection, extrusion and overmolding

Thermoplastic Compounds with Glass Fiber, Talc, Calcium Carbonate and others

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Tel. : 450-443-6888 ext .222 Toll free: 1-877-861-1114 # 222

Asico International We buy and sell all kinds of plastic scrap, regrind & pellets.

Ph: 416-291-0077 sales@asicotrade.com

www.canplastics.com October 2008 Canadian Plastics 27

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classified ads MACHINERY & EQUIPMENT

INJECTION MOLDING

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Required for Mississauga based blown film equipment manufacturer.

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9/15/08 11:02:28 AM

DESIGN IDEAS s sports and leisure

Plastic chair provides stylish support Taking off one’s shoes and relaxing after a hard day just became a much more stylish thing to do with the introduction of the MYTO chair, an innovative piece of design furniture made entirely of Ultradur High Speed engineering plastics from BASF. Made available last fall, the cantilevered chair is the result of collaboration between BASF, Italian furniture manufacturer Plank, and German designer Konstantin Grcic Industrial Design (KGID).

Manufactured as a monobloc, the chair has a sturdy frame and netlike perforations integrated into the backrest and seat to provide a graceful appearance. Plank and KGID selected BASF’s Ultradur polybutylene terephthalate resin because of its high flowabilty coupled with superior strength, which allowed for a transition from thick to thin cross sections. “The plastic had to have just the right ratio of elasticity, stiffness and strength in order to meet the requirements made of a comfortable, sturdy yet shapely cantilever chair,” said Konstantin Grcic, owner of KGID. “The interplay between the plastic formulation and the design of the injection molding tool — a mere three injection points suffice — then gave the project its final shape and properties.”

BASF Canada (Mississauga, Ont.); www.basf.ca; 866-485-2273

Ski boots get lift from colourants Colours can tell us a lot about what to expect. On the road, for example, red means stop and green means go. For skiers, the colour black, in the shape of a diamond, identifies the most challenging ski slopes on the mountain. Ski boot manufacturer Black Diamond Equipment Ltd. wanted to use colour to deliver the message that its boots were for skiers serious about performance, comfort and style, and turned to materials supplied by Clariant Masterbatches Division.

The boot components were molded in polyurethane and in lightweight polyether block amide, and Black Diamond required colour formulations that would not adversely affect processing of the materials or performance of the finished boots.

Coloured and non-coloured boot parts were subjected to tensile tests, and also evaluated in a capillary rheometer to observe any differences in flow characteristics. Finally, a differential scanning calorimeter looked for changes in crystallinity, which can also influence molding and end-use performance.

For Black Diamond’s “Telemark Power” line of boots, Clariant provided a colour scheme that featured pearlescent gold accentuated by dark brown and black. For the “Power Series” line, designed for the freeride skier, Clariant delivered a goldgreen colour formulation for the man’s boot, and an ecru colour with gold and light green accents for the woman’s boot. And for the “Efficient Series” line, for traditional backcountry skiers, Clariant created a combination of royal blue accented with blue-grey and black.

Clariant Masterbatches Division (Toronto); www.clariant.masterbatches.com; 800-265-3773

Coating extends service life of golf ball core molds You don’t have to be Tiger Woods to understand the importance of a golf ball’s core in helping the ball “carry” further and straighter. So when Sung Hyoung Precision, a system provider of technological innovation for golf ball core molds, wanted to improve the quality of its core molds while reducing costs, it chose Vicote Coatings powder and liquid dispersions from high performance material supplier Victrex.

With Victrex’s thermoplastic PEEK polymer as its main ingredient, Vicote Coatings provides a good combination of release properties and wear resistance, the company said, especially at elevated temperatures, ensuring a longer service life of the mold coating and reduced system replacement costs.

Unlike conventional fluoropolymers, the one-coat Vicote Coatings system eliminates the need for primer and provides a thin single coating layer, reducing the need for frequent coating maintenance and logistics costs.

“Because of Vicote Coatings excellent scratch and wear resistance, we’ve been able to extend the service life of the core mold up to six times — from one month to six months,” said Moohyung Kim, CEO of the Seoul, Korea-based Sung Hyoung Precision. “This helps golf ball manufacturers extend the system replacement cycle significantly.”

Victrex USA Inc. (West Conshohocken, Pa.); www.victrex.com; 484-342-6001

www.canplastics.com October 2008 Canadian Plastics 29

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view from the floor

Taking (Mechanical) Advantage

By Jim Anderton, technical editor

R

emember those mind numbing highschool physics classes where you stared at diagrams of boxes sliding on planes and billiard balls colliding? The basic math behind the equations of force and motion that govern the movement of simple objects was worked out a couple of hundred years ago, but if I’d known that they’d come into play years later, at press-side, I might have paid more attention in class.

In this case, I’m talking about the basic kinematics of mold action when it’s not making your parts, specifically opening and closing.

Closing a mold breaks down into the need to apply three forces.

The first is to overcome static friction and get the mass of the moving platen moving; the second is the force required to overcome dynamic (sliding) friction and keep it travelling down toward its mate at the end of the tie bars; the third, of course, is the closing or clamp force. Unfortunately, clamp force is always orders of magnitude greater than the force required to move the platen, so it became the dominant design issue with machine hydraulics...

JIM’S TIP OF THE MONTH: Adjusting Toggles Looking to get more power from your clamp toggle? Here’s a chart of force multiplication available as the toggle angle gets shallower. Note that the closer to the theoretical maximum you get, the more that lost motion, material stretch and thermal expansion effects come into play.

Toggle Angle, degrees 30 25 20 15 10 5

until the toggle. This brilliant invention multiplies the force applied by anything from hydraulics to your hand in a simple, reliable mechanism. Here’s a diagram of a typical toggle and the math describing why it’s so brilliant: H = ——— 1 — = “mechanical advantage” V 2 tan G

What’s important to understand is that the critical factor is the angle “a”. At an angle of, say 30 degrees, the mechanical advantage of the toggle is 0.87 and 87 per cent, which delivers less force than you used to actuate the toggle. At 15 degrees, however, that “tangent” function comes into play, and the mechanical advantage goes to 1.86, almost double the input force.

At five degrees, the mechanical advan-

Force Multiplication 0.87 1.07 1.37 1.87 2.83 5.71

tage goes to 5.71! If you could precisely get a one-degree angle in the set-up, (unlikely in real systems with elasticity and lost motion from clearances as well as wear) mechanical advantage goes to 28.6!

Since you can easily deliver tons of force from a small hydraulic cylinder, add toggles and the force can easily multiply into the tens to hundreds of tons. There’s no fee lunch, however, as the price for the force multiplication is a tremendous sensitivity to the accuracy and precision of the small angles as well as link stretch and compression...not to mention lost motion from linkage bushing wear. Set correctly, the toggle snaps into place with a distinctive click and visibly smooth action...but in some systems, an eighth of a turn with the big wrench can unbalance a system enough to create serious issues with flash, or worse. Get much above 100 tons, and direct hydraulic clamping becomes a more repeatable, safer clamping technology.

I love toggles because they’re simple and they can last forever with not much more than regular greasing. Try that with control software!

CPL

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Internationally larger. The ALLROUNDER 920 S is the largest machine ever built

by ARBURG. Produce parts with a maximum molded part weight of 91.2 oz PS in proven, flexible ALLROUNDER quality: with a distance of 36.22” x 36.22” between tie bars and a clamping force of up to 620 tons. A new worldwide dimension, with significantly increased performance in the

ARBURG, Inc. 125 Rockwell Road Newington, CT 06111 Tel.: +1 (860) 667 6500 Fax: +1 (860) 667 6522 e-mail: usa@arburg.com

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ARBURG hydraulic machine range.

9/15/08 11:03:24 AM

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