Canadian Plastics March 2011

Canadian Plastics www.canplastics.com

MARCH 2011

How to get it

SIZE REDUCTION The latest granulators, shredders

s e e s ag a h us c r in es

W ag Ne es w pu R

EQUIPMENT FINANCING

Reading the

Industry’s

FORTUNE Our annual INJECTION MOLDERS’ SURVEY results

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contents

Canadian Plastics MARCH 2011 VOLUME 69 NUMBER 1

LOOKING BACK...

In February 1966, Canadian Plastics reported that the Alberta Department of Education had decided to establish a two-year course on plastics at Edmon­ ton’s Northern Alberta Institute of Technology (NAIT). The move came after NAIT officials complained of a "dire need" for such a program in western Canada, where some 335 plastics-related firms were in business. Enrolment for the inaugural year 1968-69 was pegged at 220 students. (The course was eventually folded into NAIT’s "Materials Engineering Technology" diploma program, where it’s still on offer today.)

page 20

Number of the month:

$15.62*

*Average hourly wage paid to an injection mold shop operator, excluding benefits. (See pg. 11)

in every issue 4 Editor’s View: • Sinking the myth of the “Garbage Patch” 5 Ideas & Innovations: • Impregnating plastics with carbon dioxide (really!)

6 News: • Haremar bags new opportunites with equipment investment • Moldmaker digs deep on turf pallet project • People 9 Executive’s Corner: • Strong loonie = sitting duck?

It’s a myth 23 Technology Showcase Stocking up on shop supplies and purging compounds 26 Plastics Data File 26 Advertising Index 28 Classified Ads 29 Design Ideas: • The latest in architecture 30 View from the Floor: • Two myths that persist

page 10

page 29

cover story 10 INJECTION MOLDERS’ BENCHMARK SURVEY: How the cookie crumbles

The Great Recession might be over, but its impact lingers on, especially for the long-suffering manufacturing industry. Our latest Benchmark Survey asked some tough questions, and got some honest responses. If you’re wondering how Canada’s injection mold shops made it through the last year, and what they have planned for this year, you’ll find out inside.

features 16 EQUIPMENT FINANCING: Getting it

Banks are tightening their belts faster than contestants on The Biggest Loser, but it’s the plastics processors and moldmakers that are feeling the pinch. They need new equipment to grab some of the new orders finally being green-lit, but don’t always have the cash in their coffers to get it. End of story, right? Wrong. The right financing package for almost any shop is out there. We talked with some of the experts, and they tell you how to find it.

20 SIZE REDUCTION EQUIPMENT: Big things are happening

It’s simple. There’s a ton of new granulators, shredders and other size reduction technologies available for plastics processors and recyclers. If you need something, our product roundup tells you what it does, who makes it, and how to get it. Any questions?

June 21-23, 2011 Toronto Congress Centre

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editor’s view

Sinking the myth of the “Garbage Patch”

I

t’s not exactly a state secret that plastic has a bit of a PR problem these days.

Indeed, it’s been hard lately to pick up the paper — or, as more and more of us do, read the news online — without stumbling on a story about someone wanting plastic, or an element thereof, removed from this or that consumer good: BPA from baby bottles, plastic bags from supermarkets, et cetera.

To my mind, much of this backlash is fueled by the tone of the news coverage itself, which is infected by what I can only call the bias (subtle, and often not-so-subtle) that most journalists have against plastics; bias that derives, I believe, from plastics being a by-product of the petroleum industry (aka, “Big Oil”). As proof of this, I would offer the many, many anti-plastics stories that have appeared in recent years, almost all of them based on exaggerations — if not outright distortions — of scientific data. Problem is, by the time the scientific community and/ or various plastic industry associations have debunked one story, the next wildly exaggerated anti-plastics tale has already been unleashed on the reading public.

Maybe it’s just wishful thinking on my part, but it seems like this depressing pattern is finally showing signs of breaking down. Perhaps members of the media are tired of looking like scientific illiterates in general; perhaps they’ve learned a specific lesson from having jumped on the climate change bandwagon years ago now that the science is turning out to be far from settled. Whatever the reason, it’s been a positive delight for me over the past few weeks to see one of the biggest anti-plastics stories of recent years — the notorious “Great Pacific Garbage Patch” — go down to a watery grave.

For the uninitiated, the garbage patch is an area of floating plastic trash

between California and Japan. “Discovered” in 2000, the patch was initially described as being — hang on to your Stetson — twice the geographic size of Texas. By 2005, the fervid accounts of mainstream journalists had transformed the patch into an icon for the anti-plastics movement: the world’s largest garbage dump, a veritable island of consumer excess described by noted oceanographer Oprah Winfrey as being “300 feet deep” and responsible for killing “millions of sea birds and marine animals.”

Er, not quite. It took awhile, but the story finally sprang a fatal leak, as it almost always does. According to a new study by scientists from Oregon State University, the patch is actually less than one per cent of the size of Texas; is composed of tiny shards of plastic floating metres, if not kilometres apart; and doesn’t appear to pose a threat to marine life. And as they almost always do, scientists criticized the initial, hyperbolic news reports: “This kind of exaggeration undermines our credibility,” said Oregon State’s Dr. Angelicque White, in an understatement for the ages.

The twist, though, came in the media’s willingness to own up to the wretched excess of its collective reporting over the past decade. Among other mea culpas, the story behind the radical downsizing of the garbage patch was given full-page treatment in Maclean’s magazine. “The garbage patch in the mid-Pacific is not nearly the disaster it’s been made out to be,” the story concluded. Add to this a series of recent stories in The National Post exposing the bad science behind a lot of the anti-BPA reporting and — as I said above — it feels like a shift in the PR war might be taking place.

It would have been far better not to have tarred and feathered plastics in the first place of course, but here’s hoping these baby steps lead to a brave new direction in the mainstream media’s treatment of our industry.

Mark Stephen, editor

Canadian Plastics magazine reports on and interprets develop­­ ments in plastics markets and technologies worldwide for plastics processors, moldmakers and end-users based in Canada.

www.canplastics.com EDITOR Mark Stephen 416-510-5110 Fax: 416-510-5134 E-mail: mstephen@canplastics.com TECHNICAL EDITOR Jim Anderton 416-751-5749 E-mail: janderton@bizinfogroup.ca ART DIRECTOR Andrea M. Smith PRODUCTION MANAGER Steve Hofmann 416-510-6757 E-mail: shofmann@bizinfogroup.ca PRINT PRODUCTION MANAGER Phyllis Wright SENIOR PUBLISHER Judith Nancekivell 416-510-5116 Fax: 416-510-5134 E-mail: jnancekivell@canplastics.com ADVERTISING SALES REPRESENTATIVE Brayden Ford 416-510-5124 Fax: 416-510-5134 E-mail: bford@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 7 times a year by BIG Maga­ zines LP, a div. of Glacier BIG Holdings Company Ltd., a leading Canadian information company with interests in daily and community newspapers and business-to-business information services.

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4 Canadian Plastics March 2011 www.canplastics.com

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ideas & innovations

Impregnating plastics with carbon dioxide (really!)

C

Photo Credit: Fraunhofer UMSICHT

ompared to carbon dioxide, Jack the using CO2 are that it’s non-flammable, Ripper has a pretty good reputation. non-toxic and inexpensive. Conventional The most important and plentiprocesses for impregnating plastics and ful greenhouse gas produced by human giving them new functions have numerous activities (it’s what human beings and drawbacks, he continued; injection moldother mammals exhale), carbon dioxide ing, for example, does not permit the intro— more widely known as CO2 — is the duction of heat-sensitive substances such number one culprit fingered for global as fire retardants or UV stabilizers. Also, warming, and as such is a constant target many dyes have the bad habit of changof the environmental movement. ing color. “Our method allows us to cusBut the gas also has positive charactomize high-value plastic components and This propeller was dyed yellow in only five minteristics — the chemical industry uses it utes at 90°C and 200 bar. At this pressure, the lifestyle products such as mobile phone to produce urea, methanol and salicylic yellow dye powder dissolved in the CO which shells,” Renner said. “Best of all, the color, 2 acid, for example — and some of these are transferred it into the plastic. additive or active ingredient is introduced now being used to bring new qualities to into layers near the surface at temperatures another whipping boy of environmentalists: plastics. far below the material’s melting point, in an environmentally Researchers at the Fraunhofer Institute for Environmental, friendly manner that removes the need for dangerous and harmSafety and Energy Technology UMSICHT in Oberhausen, Ger- ful solvents.” many are now impregnating plastics with compressed CO2 in a The process is suitable for a broad range of new applications, process that could lead to new applications ranging from colored Renner said, some of them fairly exotic — embedding contact contact lenses to bacteria-resistant door handles. lenses with time release medicine to treat such maladies as glauHere’s how the science works: At a temperature of 30.1°C coma, for example. and a pressure of 73.8 bar, CO2 goes into a so-called “supercritNot bad for a widely unpopular trace gas.

CPL ical state” that gives it solvent-like properties; in this state, according to Fraunhofer UMSICHT’s Dr. Manfred Renner, it can be introduced into polymers, or act as a “carrier” in which dyes, additives, medical compounds and other substances can be dissolved. “We pump liquid carbon dioxide into a high-pressure container with the plastic components that are to be impregnated, then increase the temperature and the pressure until the gas reaches the supercritical state,” Renner explained. “At 170 bar, pigment in powder form dissolves completely in the CO2 and then diffuses with the gas into the plastic. When the container is opened, the gas escapes through the surface of the polymer but the pigment stays behind and cannot subsequently be wiped off.”

To date, the researchers have even impregnated polycarbonate with nanoparticles to give it antibacterial properties.

“E-coli bacteria, placed on the plastic’s surface, were killed off completely — a useful function that could be applied to door handles impregnated with the same nanoparticles,” Renner said. “Our process is suitable for impregnating partially crystalline and amorphous polymers such as nylon, TPE, TPU, PP and polycarbonate.” www.pcs-company.com | P: 800-521-0546 | www.buyatpcs.com | F: 800-505-3299 | pcscanada@pcs-company.ca According to Renner, the benefits of www.canplastics.com March 2011 Canadian Plastics 5

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news

Haremar bags new opportunities with equipment investment

A

nchored by a recent $3 million equipment investment, Haremar Plastic Manufacturing Ltd. is expanding the boundaries of its film extrusion capability.

In a move designed to streamline production of two-flap and four-flap garbage bags, the Toronto-based mono and co-extruded film supplier has added three high-speed, state-of-the-art winders and four high-speed die cutters to its 139,000-square-foot manufacturing facility. According to company vice president Mark Lichtblau, the result has transformed Haremar into a leading manufacturer of die-cut bags.

“Traditionally, bag manufacturers have been forced to configure their die-cutters in such a manner that only allows for the conversion of either two- or four-flap bags on their production lines, and the lines were committed to that process; position ‘A’ would only make four flaps, while position ‘B’ would only make two flaps,”

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Lichtblau explained. “The industry wants both styles, and we’ve found a flexible method for making them.”

Another fruit of Haremar’s investment is the production of a four-flap, die-cut bag with embossing, interleaved on a coreless winding roll. “The big challenge of this application was the integration of the components,” Lichtblau said. “The embossing is relatively easy, but incorporating a sine wave cut and the interleaving demands a superior overall process for the line. We’ve made it work for us, and have already shipped our first order of the embossed bags.”

Why embossing? “It’s another step towards product differentiation, which is important to all of our customers,” Lichtblau said.

The die-cutters are proving crucial for making inroads into the two-flap, four-flap and embossed bag markets. “The ability to adjust the profile on the die-cutter is critical, and we can do it for a relatively low cost and in only 48 hours,” Lichtblau said.

“In the past, processors have paid tens of thousands of dollars for the dies, and were still limited on the die profile.”

Finally, Haremar is in the process of installing a new threelayer blown film line from nearby equipment manufacturer Brampton Engineering, which integrates Brampton’s new inhouse-developed internal bubble cooling system. “We plan to combine this new film line with the latest die technology and recycled resins to develop an efficient, high-output blend for garbage bags,” Lichtblau said. “More and more of our customers want post-consumer recycled material, and we’ll shortly have a line set up to optimize blends according to their needs.”

You could say Haremar’s sizeable investment is based on the old Field of Dreams adage: If you build it, they will come.

“Most retailers don’t want to buy into a supplier’s dream; they want to see the machinery on the floor before making a purchasing decision,” Lichtblau said. “We’re signaling that Haremar is ready to offer new products to our customers.”

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6 Canadian Plastics March 2011 www.canplastics.com

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news

Moldmaker digs deep on

TURF PALLET PROJECT Sometimes, it’s the jobs performed behind the scenes that can be the hardest.

Take being a groundskeeper at a sporting arena, for example. On Saturday night, there might be a pro basketball game happening; on Sunday afternoon, it’s pro football, complete with AstroTurf — and in the sliver of time between those two events, you have to lay the new playing surface down.

The good news? Your life just got easier, thanks to a new removable tray system for both artificial and natural turf.

Designed as an improvement on traditional turf trays — which tend to be fabricated from different steels, and then welded and bolted together in a costly and time-consuming process — the new system combined the efforts of a number of Canadian companies, among them Royal Mould Technologies Ltd., a Toronto-based moldmaker owned and operated by Angel Neira. Royal Mould was at the forefront of the project from the start: The company tackled the product engineering, the tooling engineering, and even consulted on the resin from which the pallet is made.

BIG TOOL, BIG CHALLENGES Bringing the product to fruition was a formidable job, to put it mildly. The dimension of each finished tray — which consists of natural or synthetic turf on top, shock-absorbing infill in the centre, and the one-piece molded plastic tray on the bottom — is 90 inches by 90 inches by 8.5 inches deep, with the plastic pallet alone weighing 180 lbs. (The trays, shelved in storage when not in use, are pieced together quickly on the field like tiles on a floor.) The tooling requirements that Royal Mould had to satisfy were just as formidable. The overall dimension of the mold is 110 inches by 110 inches by 30 inches shut height, and it tips the scales at a whopping 43,000 lbs.

“When we first reviewed the project, the technical uncertainties and challenges of making a tool this large and this complex were daunting,” said Mike Draga, Royal Mould’s general manager. “Some of the design criteria included deflection, drainage, load bearing weight, infill retention, conformity to uneven surfaces and acoustical profile. We also knew the flatness and parallelism of these plates would be critical in ensuring that the insert and slide component tolerances and build-up were met for the proper mechanical fit and function of all the various subcomponents.”

And there were a lot of subcomponents. The cavity half of the tool is constructed in two aluminum sections that assem-

tronic for your free Sample...

Mike Drag and the build a (left), Nicholas Roddy (third from team at Roy left) al Mould wit h the two m old halves.

ble together on the cavity steel support plate; within these cavity sections — which are 110 inches by 55 inches — there are numerous cooling channels and heel blocks. Within the molding surfaces, there are 40 injection nozzles and 220 solid machined core pins.

The core half, meanwhile, consists of the main steel support plate on which two aluminum core plates are mounted. “Within Continued next page

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news

Continued from previous page

PEOPLE — Profile extruder Royal Group Inc., of Woodbrige, Ont., has appointed three new members to the management team of its building products division.

Adrien Pilon has been named general manager of distribution, Peter Orebaugh is the new business director of outdoor products, and Doug Kissick has been named marketing director for building products and outdoor products.

Serge Rogasik

— Material supplier BASF has named Serge Rogasik as vice president, plastic additives in North America. He will be based in Florham Park, New Jersey.

— Anthony Crook has been named packaging system salesman for the packaging division of McPherson, Kan.-based machinery maker battenfeld-cincinnati.

Anthony Crook

— Auxiliary equipment and mold supplies provider IMS Company, of Chagrin Falls, Ohio, has appointed Tom Osowski as president and chief operations officer.

Former president Brad Morse will now serve as CEO. — Calgary-based supplier Nova Chemicals has named Chris Bezaire as senior vice president, polythylene.

Tom Osowski

these core sections, there are 52 aluminum core inserts that contain a majority of the molding surfaces — the total weight of the inserts alone is 6,240 lbs.,” Draga said. “Within each insert there are multiple rib features — 468 of them, with various degrees of difficulty. Intricate cooling consists of 380 baffles fed by two large, externally mounted cooling manifolds to maximize the water flow rates.”

Finally, the ejector system is constructed of steel plates and parallels, including 72 support pillars. “Also, there are 230 ejector pins,” Draga said.

Aside from playing a crucial role in bringing an innovative product to market, Neira, Draga, production manager Nicholas Roddy and the rest of the staff at Royal Mould take pride in the creation of a very noteworthy project. “This is the largest tool ever manufactured in our company’s history, and tackling the various design and technical challenges has made us realize we can surpass our own expectations,” Draga said.

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executive’s corner

Strong loonie = sitting duck? It’s a myth

By Denis L’Heureux, Export Development Canada

Canadian dollar. Half our respondents said their most effective strategy was outsourcing some aspects of their production beyond Canada — presumably in markets where costs were lower and could be sustained that way.

Indeed, outsourcing usually lets a company specialize in what it does best, thereby increasing productivity and lowering costs. Now is also the time to buy foreign-made equipment and other capital goods for less.

1. CUT COSTS

3. DIVERSIFY MARKETS

Most companies surveyed simply bit the bullet and cut costs to make up for lower revenues. This covers everything from reducing overhead expenses to finding lower cost suppliers to managing inventory better. Longer term solutions include investing in new technology to increase productivity, and improving labor output through better training.

While cost-cutting is a necessary evil, it’s not what companies consider their best strategy for coping with a strong

2. INNOVATE

Successful companies increased the variety and quality of their products and services to overcome a difficult dollar situation. They also invested in more R&D, and formed partnerships to develop new products.

Other forms of innovation include developing more customized products, finding new uses for existing products, improving customer service and speeding up delivery.

As one company put it, “Showing really good value for your products is a must.”

Although exporters invest more in R&D than non-exporters, we still need to see more R&D, especially if the Canadian dollar continues to trade at US$0.90 or more.

Two more actions to fight the high dollar were at the top of our exporters list of effective strategies: investing outside Canada and entering new foreign markets.

Companies who invested abroad were able to consolidate and improve their position within their supply chain. As one company said, “Our focus has certainly turned from a mainly U.S. market focus to one of emerging markets. The rising Canadian dollar has been an excel-

lent catalyst to diversify outside the U.S.” Of course, when a Canadian company produces goods or parts overseas, the value of the loonie has less influence on its revenues and margins.

This can also increase your global competitiveness.

CPL Denis L’Heureux, is a regional vicepresi­dent, small business solutions, with Export Development Canada. He can be reached at dlheureux@edc.ca.

Or visit www.edc.ca for more small business solutions.

CLICK ON...

PLASTICS TV

CAN

N

inety-nine, ninety-seven, ninetyeight — these are some of the highs the Canadian dollar has already reached against the U.S. greenback at various times this year.

Although there doesn’t seem to be any relief in sight, it’s a myth to suppose you can’t do anything about it. The good news is that many of our small and mid-sized exporters are confronting the dollar dilemma head on.

Understandably, the high dollar is still a big concern for Canadian companies. Export Development Canada’s Online Research Panel recently found that 42 per cent of some 400 Canadian companies polled said the strong dollar had a big influence on their business. Interestingly though, only half of those companies saw their sales decline; the rest still experienced growth despite the dollar daze.

In other words, many other factors affect the currency’s power over your business, such as the type of product you sell, how pricesensitive it is, the sector you’re in, as well as general economic conditions. Playing the blame-game won’t get anyone’s sales back on track.

Here are three key strategies that successful companies use to combat a high dollar:

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

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These 5-minute information packed 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.

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www.canplastics.com March 2011 Canadian Plastics 9

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injection molders’ survey

ges purchases a W ew usage n i s e N R

How the (fortune) cookie

CRUMBLES

By Mark Stephen, editor

The Great Recession might finally be over, but its impact lingers — especially for the hard-hit manufacturing industry. Our latest Injection Molders’ Benchmark Survey gives us a glimpse of some of the new realities. Markets served, buying intentions, utilization rates — it’s all here. Let’s read the fortunes of Canada’s injection molders over the past 12 months.

A

s we move further away from 2010 — the “recovery year” that didn’t quite pan out — you can almost smell the relief in the air. If it’s not exactly optimism, it’s at least a sense among many manufactures that the worst is likely behind them.

The Canadian Plastics injection molders’ survey — now in its 15th year — has traditionally been one way of gauging the confidence level of the largest segment of our plastics processing industry.

Last year’s survey gave us a snapshot of a sector in freefall. From declining utilization rates to freezes on equipment purchases, the bad stuff was all there, laid out for us like the proverbial dissected frog in a high school biology class. But that was then. Now that we`re finally crawling out of the Great Recession, it seems safe to say the results should look at least a little better, right?

Read on and find out.

The Injection Molders’ Benchmark Survey was sent to 582 people at injection molding shops throughout Canada, with one survey going to one respondent per facility. We received 34 completed surveys, for a response rate of 5.8%. Because not everyone answered each question, the percentage values in the charts and tables might be given as a percentage of the respondents to that question, with the number of respondents given in parenthesis, for example (n=27). We thank the respondents.

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injection molders’ survey

AVERAGE MACHINE UTILIZATION RATE (%)

A LITTLE BACKGROUND INFO Just over 25% of respondents this year said they worked in a facility that has 50 or more employees, compared to 20% reporting the same last year. This could reflect a slight recovery from the downsizing that many companies were forced to do in 2009, or simply a different set of respondents, or both. This year, 22% said they worked in shops with 100 or more workers, and almost 8% worked in shops with more than 250 workers. The same percentage worked in shops that employed 250 or more last year — which probably means we have some of the same (very loyal) survey respondents as last year, and that these shops, at least, weren’t forced to downsize further during 2010.

Eighty-one per cent of respondents to this year’s survey worked in shops that had either an ISO or QS9000 standard, a big improvement from the 50% that had one or the other last year.

As always, the majority of respondents — 61.5% — work in Ontario, but we also heard from Quebec (19.2%), Alberta (15.4%), and — new to the survey — New Brunswick (3.8%).

(n=27)

30

25

20

15

10

MARKETS SERVED Not that it comes as a big surprise or anything, but for the past few years now our surveys have recorded a steady decline in the number of shops whose main market is supplying auto parts. In 2009, the majority of our respondents, for the first time, reported consumer goods as the main market served by their company. Last year, auto parts were back on top again — but just barely. The seesaw battle continues this year, with almost 62% of respondents working mainly in consumer goods. Fifty per cent of respondents are still involved in auto part production, however, so it’s definitely not seen as a manufacturing dead-end. Almost 30% of respondents reported molding electrical components, 26.5% make medical components, 23.5% make parts for the construc-

5

11.1 0

< 39%

7.4

11.1

25.9

40-49% 50-59% 60-69%

29.6

3.7

70-79% 80-89%

11.1 90-100%

BY THE NUMBERS

$15.62

Average hourly rate paid to machine operator, excluding benefits

79

Average number of employees

6,564,090

Average amount of resin consumed at plant (lbs.)

1.4%

Average percentage of 2010 budgeted expenses allocated to employee training

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injection molders’ survey

MAIN MARKET SERVED

NUMBER OF I/M MACHINES (%) Number of machines at plant

2010 (n=27)

2009 (n=26)

2008 (n=33)

16+

48.1

30.8

12

11-15

29.6

19.2

21

6-10

14.8

23.1

27

1-5

7.5

26.9

39

Construction 19.5%

Medical 14.2% Electronic 13.8%

Automotive 22.7%

tion industry, and — perhaps surprisingly — only 15% are involved in packaging. The 26.5% of respondents at shops that mold medical parts signals a real developing trajectory, by the way; last year, only 18% of shops were serious medical part molders, and less than 10% were in the 2009 survey.

The number of exclusive captive molders, meanwhile, continues its steady, inexorable decline, with just 2.9% of respondents this year saying their shops were exclusive captive molders, a drop from the 12% that were exclusive captive molders last year.

TheJan largest number (38.2%) this 9:24 year identified as Rotogran 11-AB-CPL 2/16/11 AM Pagethemselves 1 doing captive molding with some custom molding, followed by exclusively custom molding (29.4%), custom molding with some proprietary molding (23.5%), and exclusively proprietary molding bringing up the rear (5.9%). What we don’t know is

(n=34)

Consumer Goods 25.3%

Packaging 4.5%

whether these numbers reflect a decline in component requirements large enough to make captive manufacturing economical.

BUSINESS IS (SORT OF) BOOMING, BUT WILL MOLDERS BE BUYING? Whatever they’re making, business for most of our respondents is picking up. Thirty-seven per cent said business volume improved in 2010 by more than 10% compared to 2009, 25.9% said it was up by between 1% and 5%, and 14.8% reported a

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injection molders’ survey

60

PURCHASING PLANS FOR 2011 (%) yes

50

no 40 don't know

30

20

10

33.3 40.7 25.9

55.7 19.2 23.1

29.6 40.7 29.6

18.5 59.3 22.2

Injection Molding Machines (n=27)

Auxiliary Equipment (n=26)

Linear Robots (n=27)

Articulated Robots (n=27)

0

bump of between 6% to 10%. That’s good news any way you slice it, since a whopping 77% of respondents reported a “significant” business downturn in 2009. And most appear to have seen the rebound coming: Almost 66% of respondents last year anticipated a recovery by the end of 2010.

Furthermore, 33.3% of respondents this year predict a business volume increase of between 1% to 5% during 2011, and the same number expect growth of more than 10%.

Not surprisingly, utilization rates are trending upwards too. Last year, an underwhelming 4% of respondents reported utilizing more than 80% of their machines. Fast forward to the present, and a relatively healthy 15% are hitting the same mark. Another 54% from this year’s group had utilization rates of between 60% and 79%, more than double the number with the same rate 12 months ago.

So for the machinery suppliers, here’s the million dollar question: Will this improvement whet the processors’ appetites for new equipment? The answer varies. Thirty-three per cent of respondents this year told us their shops planned to buy injection molding machines in 2011, and 55% of these said they’d be on the lookout for new units. This shows a small but definite improvement from the 25 per cent of respondents looking for either new or pre-owned molding machines last year. Additionally, 25% of this year’s respondents said they were unsure about adding any kind of molding machines during the next 12 months, but didn’t rule it out.

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injection molders’ survey

WHERE THE !@#$%& ARE THE BIOPOLYMERS? For years now, we’ve been hearing about the big, revolutionary, just-around-the-corner impact of biopolymers on the plastics scene. Bio-based polymers are here, of course, and getting better all the time — hello, auto parts! — but, despite the buzz and hype, Canada’s injection molders don’t appear to be embracing them with open arms.

According to our survey, commodity and engineering resins still make up the vast bulk of what’s being processed at Canadian plants — 85% and 75%, respectively. Specialty resins are running a respectable third, used by 65% of respondents. Biopolymers? Well, let’s just say that, with 6% of our respondents molding with them, there’s plenty of room for market growth.

Otherwise, improved business volumes or not, little else seems to have changed in the past 12 months. Fifty-seven per cent of respondents this year plan on buying auxiliary equipment during 2011, a fall-off from 65% in 2010; 30% plan to add more linear robots, which is basically unchanged from the 31% shopping around last year; and 18.5% will be looking to add six-axis robots, compared with 18% on the market for these the last time around.

PEOPLE MATTERS But, interesting as they are, there’s more to measuring a manufacturing sector than dry stats about things like machine utilization. Take wages, for instance. According to last year’s survey results, the average hourly wage paid to a machine operator was $20.63, excluding benefits. It’s no secret that shop floor wages almost never rose — and probably fell — during the dark days of the Great Recession.

That’s certainly what this year’s survey shows: The average hourly machine operator wage registered at — ouch! — $15.62. So, what does this drop-off signify? Some different respondents from last year, for sure, but probably we’re also seeing the cuts that a great many shops had to make to stay in business.

CPL



VIEW SURVEY RESULTS ONLINE The complete 2010 Injection Molders’ Benchmark Survey is available at: www.canplastics.com/survey/archives/ IMSurvey2010.pdf

14 Canadian Plastics March 2011 www.canplastics.com

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equipment financing

Banks are tightening their belts after the worst financial meltdown since the Depression, and it’s the processors and moldmakers looking for equipment financing that are feeling the pinch.

But there’s money out there, if you know where to look.

YOU NEED IT. THEY HAVE IT.

HOW TO GET IT T here’s no need for false modesty here: If you’re still in money in them. It’s still common knowledge today, which the plastics processing and moldmaking businesses as is why chartered banks are the most obvious lending the Great Recession recedes, you’re definitely doing source for plastics processors. “Chartered banks have something right. Whether it’s a plastic bag or a widget, always handled the bulk of equipment financing, and have you’re making something that somebody wants. And with historically been prepared to cover between 50 and 60 per so many processors having gone out of business recently, cent of the cost of the equipment,” said Brian Hunter, a odds are you’re starting to get more work. partner with Northlink Capital Advisors.

So here’s a question: As your business starts to pick up But there are signs that the banks are beginning to sour again, will you need more equipment? If so, do you have on financing plastics processors — or at least certain the cash on hand to buy it? If not, financing kinds of plastics processors. “Credit is very

By Mark Stephen, editor might be the answer, but it raises a host of tight these days, and the banks have shrunk other issues. Do you qualify — and if not, what can you their credit boxes to the point where many smaller compado about it? What type of lender is right for you? Should nies can’t fit in anywhere,” said Henry Grace, vice presiyou buy or lease? dent at IFS Equipment Financing. “And for those compaThe bad news is, companies searching for financing nies that are approved for a loan, a down payment is face some tough hurdles, some relating to the current usually required, whereas just a few years ago it wouldn’t malaise of the auto industry. The good news? Getting have been.” financing isn’t impossible, and there are programs that Being an auto parts molder definitely doesn’t help. can help. Even better, the right lender, with the right “A lot of banks simply don’t want to participate in auto strategy for you, is probably just a phone call away. parts equipment lending,” said Brian Hunter. “The margins are perceived as being quite low, and auto sales can MONEY IN THE BANK be very cyclical. For many banks, that’s simply too much Famed outlaw Jesse James once said he preferred robbing risk.” Many plastics processors don’t actually make auto banks to trains because he knew the banks always had parts, of course — but, to some banks, that might be a

16 Canadian Plastics March 2011 www.canplastics.com

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equipment financing distinction without a differCredit Availability Program Don’t finance your equipment ence. “Too often nowadays, (BCAP), administered jointly from the same bank that when bankers hear the word by the BDC and Export Devel‘plastics’ they im­mediately opment Canada (EDC). They holds your line of credit. think of automotive moldwork with private sector finanThe more intensive you are with ing,” said Henry Grace. “This cial institutions to provide is where a leasing company loans to companies that have your bank, the more closely can be valuable: getting the restricted access to financing. they’ll keep an eye on you. banks to understand that The program had an initial you’re making medical comfunding allocation of $500 ponents, for ex­ample, and not auto parts.” million as well. So, who qualifies? “There’s no preset Another difficulty: Despite NAFTA, the U.S./Canada formula to determine what kind of shop receives a set financial divide can still be a tricky one to cross. “IFS amount of BCAP financing,” said France de Gaspé Beaudoes business with many Canadian firms, and we’ve bien, the BDC’s vice president of financing and marketfound that many American banks won’t finance in Can- ing. “We’re very flexible and like to structure our deals ada,” Grace said. “And even if they do, there are other one at a time, depending on the needs of the customer, but hurdles — like obtaining a GSA waiver — that compli- there are three things we always need to know: What’s cate the transaction.” your balance sheet like, what do you need, and what’s the Speaking of banks and hurdles, there’s another that structure of the deal?” might not pop up until afterwards, when you least want it.

“Banks prioritize looking after their customers,” Grace GOING FOR BROKERS continued. “But leasers really aren’t bank customers, and A third option is to go to a financing broker. “Depending are among the first to get shut down when times are hard.” on your needs, brokers like IFS will ask to see a financial This isn’t to say banks are a dead end, of course. “If a package from you,” said Henry Grace. “We then review it plastics processor can show good cash flow to service the and determine how many lenders would be interested in debt, isn’t over-invested in auto parts molding, and isn’t your package, and help you decide which lender to go looking to get into anything else too risky, it shouldn’t with.” IFS works with injection molding machine supplihave a problem getting leasing from a chartered bank,” ers like KraussMaffei, Engel and Arburg, Grace continsaid Brian Hunter. “And generally speaking, the bigger the ued, and also helps to secure financing for machine tools company, the less of a risk it’s considered to be.” and molds.

It’s a relationship the machine makers seem to be comOTHER LENDERS STEP UP fortable with. “Historically, Engel was often involved If the banks won’t float your loan, however, term lenders directly in helping customers obtain financing,” said can be an attractive alternative. “Term lenders will do Steve Elliott, sales manager with Engel Canada. “Now we higher ratio loans than the chartered banks, up to 70 per work with third-party partners who give us advantages on cent or more,” Hunter said. “Also, they tend to have a better interest rates, and we can pass those savings on to the understanding of the valuation of the equipment, and will customer.” take the current market value of a piece of machinery into Along with the chartered banks and term lenders, account when deciding whether or not to finance a loan.” financing brokers saw a dramatic fall-off in business durSome term lenders, like the Business Development ing the recession — but it looks as though the landscape Bank of Canada (BDC), participate in programs specifi- might be returning to normal. “There were 60 per cent cally designed for medium-sized businesses that can’t fewer companies looking for leasing capital in 2009 than otherwise finance the purchase of necessary equipment. in 2008,” said Henry Grace. “Lately, however, I’ve seen a The BDC, for example, is working with TAO Asset Man- lot of activity as orders start to come in and the shops agement Inc. to support the Vehicle and Equipment don’t have the necessary equipment.”

Financing Partnership (VEFP), a federal government initiative which allocated an initial $500 million to lenders IMPROVING YOUR ODDS and investors in the private market for asset-based financ- Now that you know how it’s done, here’s some follow-up ing. The program isn’t for everyone, however. “Most questions: How should a processor or moldmaker that small companies won’t be able to satisfy the VEFP’s doesn’t have the best financial track record present itself to credit requirements; they’re better candidates for the a bank or financing broker, and what kind of reception can BDC’s regular lending practices,” said Paula Cruick- it expect? “Some lenders are willing to overlook a compashank, vice president of securitization at the BDC. ny’s poor financial performance over the past year or two “Larger companies with lower business risks have other as an aberration caused by the recession, and will focus alternatives, meanwhile.” instead on its long-term history; others are less forgiving,” Another initiative is the federal government’s Business said Brian Hunter. “But if the company actually has a www.canplastics.com March 2011 Canadian Plastics 17

CPL Mar11 p16-18 equip finance#4.indd 17

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equipment financing longer history of not generating enough cash flow to service its debt, we’ll want to see some business forecasts, product order forms, et cetera.”

Beefing up your bank balance is a good way to improve your chances — but how? “A processor or moldmaker that has been turned down by the banks should see that as signaling a problem that needs fixing,” Hunter said. One good fix, he continued, is to take advan-

tage of federal tax initiatives like the Scientific Research and Experimental Development (SR&ED) program, which gives claimants cash refunds and/or tax credits for their expenditures on eligible R&D work done in Canada. “Getting money back from the SR&ED program is a good way to raise capital for new equipment,” Hunter said.

And a good way to keep your financials strong is to have a smart borrowing

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strategy. “One of the best pieces of advice I can give is to spread the risk around,” said France de Gaspé Beaubien. “The more intensive you are with your bank, the more closely the bank will keep an eye on you. You don’t necessarily have to finance equipment from different banks — just don’t finance your equipment from the same bank that holds your line of credit. A secondary lender also gives some price competition, and can serve as a voice of support during tough times.”

Don’t spread your risk around too much, though. “You probably don’t need to have more than three lenders,” said Brian Hunter. “Some companies have between five and 10, with the result that none of the lenders have any loyalty to the business. Also, do you really want to send your financial statements out to 10 different people?”

A final consideration is deciding whether to lease or buy. Not surprisingly, there’s no one-size-fits-all answer.

“It’s a strategic decision, and the ultimate answer depends on your needs, on the impact it will have on your balance sheet and capital taxes, and on whether or not you can return the machine,” said France de Gaspé Beaubien. “Historically, leasing offered a greater tax benefit; on the other hand, it might cost you more in the long run. A good financial adviser can help you decide.”

In the end, going down the equipment financing road probably isn’t for everyone — but if it’s right for you, don’t wait until the last minute. “It takes time to get financing for, and delivery of, plastics processing equipment, even with a glut of used equipment flooding the market,” said Henry Grace. “In this economy, companies are understandably reluctant to jump the gun — nevertheless, if you don’t begin the process until after you have a new project lined up, you might not get the machine in time.”

CPL RESOURCE LIST Business Development Bank of Canada (Montreal); www.bdc.ca; 1-877-232-2269 Engel Canada Inc. (Guelph, Ont.); www.engelglobal.com; 519-836-0220 IFS Equipment Financing (Columbus, Ohio); www.equipment-financing.com; 1-888-595-4422 Northlink Capital Advisors (Cambridge, Ont.); www.northlinkcapital.com; 519-721-7144

18 Canadian Plastics March 2011 www.canplastics.com

CPL Mar11 p16-18 equip finance#4.indd 18

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size reduction equipment

NEW PRODUCT REPORT:

Size Reduction EQUIPMENT

GOES BIG

PRODUCT Granulator for thin-gauge film and sheet scrap INFO Designed to tackle scrap generated in thin-gauge

film and sheet extrusion operations, the new FSG Series granulator from The Conair Group has an in-feed section that can handle edge and bleed trim, off-spec rolls or handfed materials.

Available in nine different sizes, for maximum throughputs from 100 to 1,600 lbs/hr (45 to 726 kg/hr), the units can stand alone or be used as part of an integrated Conair in-line film-scrap recycling system.

The rotor knives are adjustable to maintain a constant cutting circle and an unchanging gap between the moving knives, and to keep screen clogging and heat build-up to a minimum.

The scrap-in-feed hopper comes with a manual feed port on the side, and can be equipped with a roll-feed system and/or an air-relief head that allows edge trim to be blown directly into the cutting chamber.

The FSG series is available in a variety of sizes with single-drive variable-speed motors.

CONTACT T he Conair Group

(Cranberry Township, Pa.); www.conairgroup.com; 1-800-654-6661 Hamilton Avtec (Mississauga, Ont.); 1-800-590-5546

PRODUCT Redesign for better performance, less wear INFO Vecoplan LLC is improving the design of its RG

series vertical size reduction machines for better performance, and reduced component wear and maintenance time.

First, the company is transitioning to a double-side wall design for all of the machine sizes. “Instead of butting up against the external sidewall of the machine, the rotor ends at an internal sidewall with a replaceable and recessed wear plate,” said Greg Parent, Vecoplan’s Canadian sales rep. “By merging both the standard duty and the heavy duty frames into one double-walled design, all of the models will have a more robust frame without increased cost.”

Another benefit of this design is to prevent material migration into the bearings. “In the past, the bearings on the heavy duty frame were mounted on pillow blocks, which allowed for no chance of material migrating into the bearings,” Parent said.

“The new double wall design achieves the same separation of

PRODUCT Size reduction system reclaims purgings INFO Instead of sending purgings to landfills, a new

system from Maguire Products, Inc. lets processors reclaim them as raw material.

The Maguire Purging Recovery System is a two-stage system that first slices or planes hard lumps of plastic into small pieces, then reduces the pieces to uniform regrind.

The system consists of a table that’s split into two levels and a purging containment chamber that moves back and forth over the table surface. Mounted at the point of disjunction between the two surface levels is a rotor with staggered knives that turns at 1,750 rpm, reducing the purging to small pieces and shooting them into the hopper of a compact granulator beneath the table. As material is planed away from the purging, a pneumatically-driven hold-down plate in the containment chamber keeps the purging in contact with the knives.

“Since purgings can weigh as much as 10 lbs., and can be generated at the rate of dozens per shift in a custom molding operation, a processor can reclaim hundreds of dollars worth of raw material per week,” said Pat Smith, Maguire’s vice president of marketing and sales.

CONTACT Maguire Canada/Novatec Inc. (Vaughan, Ont.); www.maguirecanada.com; 1-866-441-8409

the bearing, eliminating the possibility of bearing contamination throughout the product range.”

Second, the counter knife sections in each unit will be standardized across all sizes and models, as well as having the option for adjustment from the outside of the machine.

“Putting common counter knife sections in all of the makes and models allows Vecoplan to reduce manufacturing cost and pass that price saving along to the customers,” Parent explained.

CONTACT Vecoplan LLC (High Point, N.C.); www.vecoplan.com; 336-861-6070 Greg Parent; 416-678-0154

20 Canadian Plastics March 2011 www.canplastics.com

CPL Mar11 p20-22 granulators.indd 20

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Half Page Ad 11:Layout 1

size reduction equipment

2/9/2011

3:58 PM

™

PRODUCT Recycling soft to medium-hard plastics INFO Wittmann’s new MC34 Primus series of granulators

handle recycling of soft to medium-hard plastics, and fills the gap between the company’s ML line of beside-the-press granulators and the MC line of central granulators.

The MC Primus units feature a cutting chamber of 300 mm (11.8 inches) by 400 mm (15.75 inches), and can hit a throughput rate of between 200 to 300 kg/hr (440 to 660 lbs/hr), depending on screen size and part geometry.

Also, the granulators have an open rotor design that provides good airflow through the cutting chamber, preventing thermal degradation or melting of the material.

The slanted open rotor moving knives combine with two inclined fixed knives to provide a double scissor cut that improves the quality of the regrind and minimizes dust.

CONTACT Wittmann Canada Inc. (Richmond Hill, Ont.); www.wittmann-canada.com; 1-866-466-8266

PRODUCT Small unit takes on test-lab plastic INFO Designed for applications in plastic material testing

laboratories, a new granulator from Dynisco Instruments is designed to process a wide variety of parts and scrap cleanly and efficiently.

“This new Dynisco granulator is ideal for grinding production plastic parts for material testing and analysis,” said Matthew Caslow, Dynisco’s global support manager. “It also allows technicians to granulate lab scrap — such as samples from melt-flow tests, rheometer tests and capillary rheometer tests — and keep it out of the waste stream.”

Powered by a five-hp electric motor that drives an oversized flywheel to increase rotational momentum and decrease energy consumption, the slow-speed (200 rpm) rotor has three rotating knives and two stationary bed knives counter-slanted to create a scissor-like cut with a minimum of dust and fines. Along with rotating sidewalls in the cutting chamber, they also minimize heat generation to prevent the polymer from softening and smearing during granulation. Three different screen sizes are available, and the screens are also reversible for service longevity.

CONTACT Dynisco Instruments (Franklin, Mass.); www.dynisco.com; 1-800-332-2245 Auxiplast Inc. (Sainte-Julie, Que.); 450-922-0282 Precision Mold (Delta, B.C.); 604-943-7702 Process Heaters Inc. (Toronto); 1-877-747-8250

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size reduction equipment

PRODUCT Size reduction of large pipes INFO From Neue Herbold Maschinen comes a

new shredder for size reduction of large diameter pipes made from tough plastic materials like PE and PP, with high operational safety and less wear of knives.

The company’s HZR 1300/4 four-shaft shredder is designed to handle both thick-walled pipes and bundles of extrusion profiles in one operation, and can also shred large start-up lumps.

The HZR 1300/4 can process pipes of all diameters up to 1,200 mm. The size reduction is done by four slow-running rotor shafts in staggered positions. The size reduction load is distributed among all four shafts, which also reduces the noise level.

For the size reduction of long pipes, a special feeding section is available; the HZR 1300/4 can also be combined with a granulator for post-size reduction of the material.

CONTACT Neue Herbold Maschinen (Sinsheim, Germany); www.neue-herbold.com Accuplast Solutions (Beaconsfield, Que.); 1-866-630-0808

PRODUCT High volume granulation, less noise INFO Centrally located or beside-the-press, Rapid Granula­

tor’s new 600 series granulator is designed to handle throughput up to 3,500 kg/hr.

Available in three widths — 900 mm, 1,200 mm and 1,500 mm — and 45 standard base configurations, the 600 series also comes with Rapid’s Mineral Composite Technology base (MCT), a vibration-absorbing heavy platform that reduces noise levels during operation.

“The machine’s ergonomic design allows the operator to gain complete access to the rotor and cutter in just three steps without the aid of any tools, providing for a very rapid, visibly clean confirmation, and eliminating the risk of granulate contamination after color or material changes,” said Bengt Rimark, Rapid Group’s marketing director.

CONTACT Rapid Granulator Inc. (Cranberry Township, Pa.); www.rapidgranulator.com; 724-584-5220 Dier International Plastics Inc. (Markham, Ont.); 416-219-0509 D Cube (Montreal); 514-272-0500

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22 Canadian Plastics March 2011 www.canplastics.com

CPL Mar11 p20-22 granulators.indd 22

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S

al: i c e p

technology showcase

Stocking up on

SHOP SUPPLIES & PURGING COMPOUNDS

Melt pressure transducer cleaning kit

Statistics show that 90 per cent of melt pressure sensor diaphragm failures are due to improper installation or maintenance procedures. Installation of transducers into plugged and/or dirty mounting holes is an especial cause of installation-related damage. Gefran’s cleaning tool kit — available from authorized distributor Acetronic Industrial Controls — is used to remove excess plastic from transducer mounting holes prior to installation.

The cleaning tool kit allows the mounting hole to be properly cleaned and checked for integrity.

Cleaning tools are available for 1/2-20 mounting holes and M18 by 1.5 mounting holes. The cleaning tool should be used when the polymer is molten. Care must be taken not to exceed the specified torque rating, so as to not damage the tool.

Acetronic Industrial Controls (Mississauga, Ont.); www.acetronic.com; 905-564-7227

Compound reduces scrap, downtime New from the Dyna-Purge division of Shuman Plastics, Inc., Dyna-Purge M is a versatile non-abrasive, non-chemical engineered thermoplastic purging compound that features enhanced cleaning power with two non-melting but softening ingredients that scrub, while a proprietary additive helps to remove contamination without leaving a residue.

Shown to reduce scrap by as much as 64 per cent and lower purging times by as much as 90 per cent versus other compounds, Dyna-Purge M is designed to flow naturally through the barrel and hot runner system of the injection molding machine, as well as extrusion equipment.

As part of the new product introduction, plastics processors can choose one of two special offers: a free 10 lb. sample of Dyna-Purge M, or the purchase of a 55 lb. box of the mate-

Purging compound for “super-engineering resins” Sun Plastech Inc. has added a new high temperature grade to its product line of ASACLEAN Purging Compounds, suitable for purging “super-engineering resins” such as PEEK, PPS, Ultem, and LCP from thermoplastic injection molding machines and extruders.

ASACLEAN PX is a glass-filled grade offering a service temperature range of 520∞F to 788∞F (270∞C to 420∞C), and has been designed to provide superior cleaning at high processing temperatures while emitting low smoke and odor (which can be common occurrences when purging high-heat resins).

For hot runner purging or machine shutdowns, ASACLEAN also offers its earlier-generation SX grade, an unfilled grade with a service temperature range of 570∞F to 735∞F (300∞C to 390∞C).

Sun Plastech Inc. (Parsippany, NJ); www.asaclean.com; 1- 800-787-4348 www.canplastics.com March 2011 Canadian Plastics 23

CPL Mar11 p23-28 tech show.indd 23

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technology showcase rial. The product is refundable if it performs less well than the customer’s current purging compound.

Dyna-Purge division of Shuman Plastics, Inc., (Buffalo, N.Y.); www.dynapurge.com; 1-866.607.8743 Photo: Dyna-Purge

Compound for difficult resins Purgex 457 Plus, from Neutrex Inc., is designed for difficult purging applications, such as glass or mineral filled resins, viscous, and elastomeric resins in injection molding, extrusion and blow molding machinery.

Supplied ready-to-use, Purgex 457 Plus is well suited for color and/or material changes and the removal of residual contamination (black specks), with efficient purging of the barrel, screw and nozzle, as well as hot runner systems. The product is designed to work well on resins containing glass or fillers, and it removes all types of colorants and commodity resins, including polypropylene, polyethylene and their copolymers.

In addition, Purgex 457 Plus neutralizes HCl gasses in rigid and flexible PVC purging applications and provides rapid changeovers with polyolefins and their copolymers, styrenic polymers, acetals, PBT, TPO, TPU, and many other resins processed in its operating temperature range of 149∞C to 288∞C (300∞F to 550∞F).

Neutrex Inc. (Houston, Tex.); www.purgexonline.com; 1-800-803-6242

INJECTION MOLDING Micro components made with reliability, reproducibility The smallest model of Sumitomo Demag’s IntElect series, the IntElect 50-45, with a clamping force of 500 kN, is well suited for the cleanroom production of medical micro components.

With a precise and sensitive drive, and the unloading system integrated in the machine, the 50-45 units satisfy the specific requirements of parts that weigh as little as 10 milligrams.

For complete product information Call Toll Free: Canada 1-800-263-1942 U.S.A. 1-800-263-7782 or VISIT OUR WEBSITE TODAY!

www.lorenz.ca 24 Canadian Plastics March 2011 www.canplastics.com

CPL Mar11 p23-28 tech show.indd 24

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technology showcase The IntElect 50-45 features large tie bar clearances, linear slides for maximum parallelism of the clamping platens, process capabilities, and high levels of reliability and availability. These features are the basis for the zero-defect production of precision moldings for medical and medical engineering applications.

The comprehensive preparation of the machine for special options makes it particularly flexible for customized applications.

Sumitomo Demag (Strongsville, Ohio); www.demag.com; 866-491-1045 Plastics Machinery Inc. (Newmarket, Ont.); 905-895-5054

ROBOTS & AUTOMATION

“Green” modular gripper components

SAS Automation LLC has introduced modular gripper components that allow tool builders to better understand their “green” tooling options for reducing carbon emissions and cycle times.

The new 800 series six-layer head/die from Guill Tool & Engineering Co. is designed to meet the growing demands of the automotive industry, such as for low-emission vehicles, as well as for other advanced industries — medical, pharmaceutical, cosmetics, food and more — which often require a layered construction of tube, hose or pipe.

Intended as a low-cost single six-layer system versus two three-layer systems or three two-layer systems, the 800 series can be used to extrude fluropolymer materials, which have superior qualities and resistance to fuel blends, UV, heat and chemicals.

The system can also handle non-fluropolymers and adhesives that work well when combined in thin layers (0.02 mm or less) with new head/die tubing end products.

Guill Tool & Engineering Co. (Warwick, R.I.); www.guill.com; 401-828-7600 Romark Technologies — Div. of Ontor Ltd. (Toronto); 416-781-5286

Digital Digital DigitalScroll Scroll Scroll Compressors Compressors Compressors control control control control saves saves saves saves up up up up toto to20% to20% 20% 20% ofof ofcompressor ofcompressor compressor compressor energy. energy. energy. energy.

Provides Provides better better better better ••Provides •Provides temperature temperature temperature temperature control. control. control. control.

The system identifies three types of EOAT systems: most efficient (green), efficient (yellow), and least efficient (orange). The green system has a decentralized vacuum EOAT using vacuum cups mounted directly to the GFD 1/4 MINI vacuum manifold with integrated vacuum cartridge. Since the vacuum is being generated at the cup location, there are no vacuum losses due to fitting connections, allowing processors to use smaller vacuum generators and cups to generate the same amount of lifting force.

The yellow system has a centralized vacuum manifold with a single vacuum generator servicing four vacuum cups. Since this system has manifolds and fitting connections between the vacuum cups and vacuum source, there will be vacuum losses.

Finally, the orange system has a centralized vacuum system that utilizes a vacuum pad and vacuum pump. The vacuum pad has an array of holes that draw vacuum through the vacuum chamber in the pad, and draws the highest vacuum flow.

SAS Automation LLC (Xenia, Ohio); www.sasgripper.com; 1-888-727-3628 Verick International (Brampton, Ont.); 1-888-783-7425

MOLD TECHNOLOGY

Low-cost nozzle tips

Operates Operates ••Operates •Operates

efficiently efficiently efficiently efficiently over over over over aaawider awider wider wider load load load load profile. profile. profile. profile.

Energy Energy efficient efficient efficient efficient non-ozone non-ozone non-ozone non-ozone ••Energy •Energy depleting depleting depleting depleting R410A R410A R410A R410A refrigerant refrigerant refrigerant refrigerant

ton 1010 ton ton Air-Cooled ton Air-Cooled Air-Cooled Air-Cooled model model model model 10 10 ton 1010 ton ton Water-Cooled ton Water-Cooled Water-Cooled Water-Cooled model model model model10 10

Standard Standard Standard InInIn

55ton•10 5ton•10 ton• ton•10 10ton•15 ton•15 ton•15 ton ton ton

Air-Cooled Air-Cooled Air-Cooled Air-Cooled && &Water-Cooled &Water-Cooled Water-Cooled Water-Cooled

525 525 525 525 East East East East Stop Stop Stop Stop 1818 18 Road 18 Road Road Road Greenwood, Greenwood, Greenwood, Greenwood, ININ IN 46142 IN 46142 46142 46142 317.887.0729 317.887.0729 317.887.0729 317.887.0729 • fax: •• fax: fax: • fax: 317.881.1277 317.881.1277 317.881.1277 317.881.1277 www.AdvantageEngineering.com www.AdvantageEngineering.com www.AdvantageEngineering.com www.AdvantageEngineering.com Represented Represented Represented Represented inin in Canada in Canada Canada Canada By: By: By: By:

DME Molding Supplies, a division of www.canplastics.com March 2011 Canadian Plastics 25

CPL Mar11 p23-28 tech show.indd 25

Maximum Maximum MaximumSeries Series Series Portable Portable PortableChillers Chillers Chillers with with with

Energy Energy efficient efficient efficient efficient capacity capacity capacity capacity ••Energy •Energy

EXTRUSION Six-layer head/ die tooling design for auto apps

Innovation Innovation Innovation

905-895-9667 905-895-9667 905-895-9667 905-895-9667 www.Chillersinc.com www.Chillersinc.com www.Chillersinc.com www.Chillersinc.com

22/02/11 2:54 PM

technology showcase D-M-E Company, has expanded its line of MRO products to include the new Mini-Shut automatic nozzle tips, a low-cost product that shuts off the flow of plastic into a mold to prevent drooling and stringing, without requiring mold decompression.

Designed to stabilize the injection process and help prevent surface imperfections on parts, the Mini-Shut eliminates the need for mold decompression by the simplicity of its design: After a molder shoots the part, the nozzle itself doesn’t have enough pressure to continue drooling plastic. There is no need to retract the screw, but there is plastic waiting at the tip to shoot the next part.

The Mini-Shut has a simple design, with internal springs arranged to shut off the flow of plastic to the tip. And since

they contain no moving parts, the nozzle tips minimizing maintenance and downtime.

Mini-Shut nozzle tips are available in two different sizes that fit 80 per cent of all systems. The small-bore variety is 1.5 inches long, with radii ranging from 0.5 to 0.75 inches, and orifices ranging from 0.125 to 0.375 inches; the largebore variety is 1.1735 inches long with radii ranging from 0.5 to 0.75 inches, and orifices of 0.25 inches.

D-M-E of Canada Ltd. (Mississauga, Ont.); www.dme.net; 1-800-387-6600

TESTING & COLOR MATCHING EQUIPMENT X-ray fluorescent benchtop spectrometer

PANalytical’s new range of Epsilon 3 benchtop energy

advertising index Advertiser

Page

AceTRONIC Automatisation S.A.B. Inc. BDC Berg Chilling Systems Inc. Better Than Products Canadian Plastics Resin Outlook Conference CanPlastics TV/Mathelin Bay Chillers Inc. Cumberland Engineering IMS Lorenz Conveying Products Maguire Products Canada PCS Company Piovan Canada PolyOne Distribution Canada Ltd. Process Heaters Inc. Rotogran International Inc. SPE Ontario Slide Products UBM Canon (Plast-Ex) Vortex Valves Weima America Wittmann Canada Inc.

6 14 8 22 30 27 9 25 24 21 24 31 5 2 15 13 12 27 7 27 23 18 6

plastics data file

Telephone

E-mail

Website

800-803-8871 450-652-9767 877-232-2269 416-755-2221 905-669-6184 416-510-5116 314-630-8384 905-895-9667 508-399-6400 800-537-5375 800-263-1942 866-441-8409 800-521-0546 905-629-8822 888-394-2662 877-747-8250 905-738-0101

800-323-6433 416-572-7684 785-825-7177 888-440-7170 888-466-8266

sales@acetronic.com info@sabgroupe.com

bergsales@berg-group.com bweitzman@betterthanproducts.com jnancekivell@canplastics.com

sales@chillersinc.com sales@cumberland-plastics.com sales@imscompany.com sales@lorenz.ca info@maguirecanada.com sales@pcs-company.com trodrigues@piovan.ca

proheat@processheaters.ca info@rotogran.com

info@slideproducts.com plastex@cancom.com rbarragree@vortexvalves.com info@weimaamerica.com info@wittmann-canada.com

www.acetronic.com www.automatisationsab.com www.bdc.ca www.berg-group.com www.betterthanproducts.com www.canplastics.com/conference/ www.mathelinbay.com www.chillersinc.com www.cumberland-plastics.com www.imscompany.com www.lorenz.ca www.maguirecanada.com www.pcs-company.com www.piovan.com www.polyone.com www.processheaters.ca www.rotogran.com http://speontario.com/ www.slideproducts.com www.plastex.org www.vortexcanada.com www.weimaamerica.com www.wittmann-canada.com

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

Screw Refurbishing Services

“Don’t ever trash a screw without first checking with IMS!” Our full range of screw enhancements include Screw Rebuilding; Screw Modifications and replacement Non-Return Valves; New OEM-design Reciprocating Screws; Custom Designed Screws plus IMS Exclusive SPIRAL™-Flighted and Fliteless® Screws.

IMS Industrial Molding Supplies 10373 Stafford Road, Chagrin Falls, OH 44023-5296; Tel. 1-800-537-5375 www.imscompany.com/FeedScrews.htm

ONE STOP SHOPPING

Innovative automation and auxiliary equipment — from auto­nomous work cells to central systems. Products include Battenfeld injection molding machines, robots and automation, in-mold labelling, material handling systems including blenders, dryers and loaders, granulators, water flow regulators and mold temperature controllers.

Wittmann Canada, Inc., 35 Leek Crescent, Richmond Hill, ON L4B 4C2; Tel. 1-888-466-8266; www.wittmann-canada.com.

26 Canadian Plastics March 2011 www.canplastics.com

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technology showcase dispersive X-ray fluorescence (EDXRF) spectrometers are designed for accurate, precise and reliable results right across the periodic table.

Epsilon 3 features a new high-performance ceramic tube developed specifically for this system. In addition, the range utilizes the latest in silicon drift detector technology.

Thin windows on both the X-ray tube and the detector enable light element analysis down to fluorine. Sample preparation is straightforward and a variety of sample types can be measured, from solids and filter samples that weigh just a few grams to larger bulk samples.

Advanced spectrum processing and unique correction and quantification algorithms ensure data accuracy and precision.

PANalytical Canada (St. Laurent, Que.); www.panalytical.com; 514-956-2132

MATERIALS

Compounds for wide ranging applications S&E Specialty Polymers has introduced several new brands of plastic compounds designed for a wide variety of injection molding and extrusion

EXPAND YOUR KNOWLEDGE AND YOUR NETWORK March 17 – University Night Hilton Garden Inn 1870 Matheson Blvd., Mississauga, ON April 28 – Plant Tour Dominion Color Company 199 New Toronto St. Toronto, ON May 19 – Plant Tour Cambridge Materials Testing 13-6991 Millcreek Dr. Mississauga, ON June 10 – Golf Tournament Royal Ontario 6378 Trafalgar Road, Hornby, ON Contact: Christina Wilson 416-847-7000, ext. 258 chris.wilson@clariant.com http://speontario.com

Resin supply, demand and pricing forecasts

ON TARGET! SPE Ad Mar 11.indd 1

2/16/11 11:46 AM

Since resin accounts for up to two-thirds of your manufacturing cost,

you can’t afford to miss the mark.

Get the information you need by attending the 16th Annual Canadian Plastics Resin Outlook Conference

Organized by Canadian Plastics magazine. Endorsed by the Canadian Plastics Industry Association SPONSORS TO DATE:

Thursday, October 6, 2011, Doubletree Airport Hotel, Toronto, Ontario

Hear forecasts from experts on supply, demand and pricing for the major commodity and engineering resins: polyethylene, polypropylene, PVC, styrenics, PET, nylon, polycarbonate, plus biopolymers, and recycled resin.

Investment per person: Early Bird Registration – until Aug. 31: $395 plus H.S.T. Regular Registration – after Aug. 31: $495 plus H.S.T. Group Registration – 50% discount for second and subsequent attendees from the same company

Cantec Polymers

“Earning your trust one stripe at a time.”

A limited number of sponsorships and tabletop displays are available.

For more information, contact: Judith Nancekivell, Tel: 416-510-5116, Email: jnancekivell@canplastics.com

www.canplastics.com/Conference/ www.canplastics.com March 2011 Canadian Plastics 27

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technology showcase

applications.

The TufFill series of highly filled polyolefin based compounds provide high flexural modulus and impact resistance in injection molded parts for automotive, battery/stored energy, and electronics applications. The TufFill 3000 series is dedicated to flame retardant concentrates.

TufFlex flexible TPE compounds are designed for wide temperature ranges,

especially for wire and cable applications; also, some grades are formulated to provide superior chemical resistance.

And the TufPrene series of superior SBS and SEBS compounds are intended for extrusion, molding and overmolding, footwear, gaskets, toys, and automotive applications.

S&E Specialty Polymers (Lunenburg, Mass.); www.sespoly.com; 978-537-8261

classified ads MACHINERY & EQUIPMENT

When purchasing your next Chilling System

CHECK US OUT! Plant wide chilling systems complete with pumping packages, filtration, system design incorporating existing equipment, installation and start-up.

Portable chillers air and water cooled with load sizing and chiller selection, double pumps, water by-pass valves and motorized valves for precise temperature control.

www.temperaturecorporation.com

877-513-8310 MATERIALS

INJECTION MOLDER

BUSINESS OPPORTUNITIES

To place your classified ad here, contact: Brayden Ford, Advertising Sales Representative 416-510-5124 or bford@canplstics.com 28 Canadian Plastics March 2011 www.canplastics.com

CPL Mar11 p23-28 tech show.indd 28

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design ideas • the latest in architecture

Polycarbonate sheet opens doors for open concept designs

Polystyrene insulation panels get behind renovation and construction Two recent building projects in the German cities of Ludwigshafen and Erfurt were made easier with insulation panels made of BASF’s Neopor expandable polystyrene.

A 1950s apartment house in Ludwigshafen and a new office building in Erfurt have been fitted with the socalled Lambda Vento facade, an insulation system developed by building envelope supplier Swisspor that incorporates the Neopor product.

The facade of the three-story apartment house was lined with grey fiber cement panels. The insulation panels, made of Neopor, had a tongue and groove all the way around, and, with spacer bolts placed at regular points to affix the sub-structure, formed a construction that’s virtually free of thermal bridges.

The building project at Erfurt, meanwhile, was carried out on a narrow street that gave little room for construction. The insulation panels were cut without any dust or waste using a hot wire device, and then secured to the sub-structure with glue-free insulation material holders known as insulation anchors.

Neopor panels are approved in Germany for buildings in classes 4 and 5 (flame-retardant) up to high-rise level; for building classes 1 to 3, they can be used irrespective of the thickness of the insulation material and without any additional fire precautions.

BASF Canada (Mississauga, Ont.); www.basf.ca; 1-866-485-2273

It’s not exactly news that, in their quest to make us feel less hemmed in despite living in a increasingly busy world, archi­tects by the thousands are turning to the open concept structure.

But it’s not alwasy easy for builders to turn these designs into reality.

Houses, offices, et cetera, need to have welcoming interiors flooded with natural light, be stylish and easy on the eye and — of course — energy efficient, all without sacrificing structural integrity. Weighed on this scale, glass isn’t exactly ideal: it’s heavy, liable to crack, and offers limited design options.

Enter the transparent solid and multiwall sheets made of Bayer MaterialScience’s polycarbonate Makrolon, which are becoming a reliable go-to solution for architects and builders alike. In particular, Bayer’s new Makrolon multi UV multiwall sheets, made of the infrared-absorbing grade IQ-Relax, are designed to meet the aesthetic and functional requirements of the most open concept structures. Most recently, Makrolon sheets have found homes in such new buildings as a railway station in Wuhan, China, and the German Pavilion at EXPO 2010 in Shanghai.

And if security is a priority, Bayer’s Makrolon Hygard grades are bulletproof and bombresistant — no small comfort in today’s dangerous world, and proof that customer service areas and public buildings don’t have to look like bomb shelters.

Bayer Inc. — Division of Bayer AG (Toronto); www.bayer.ca; 1-800-622-2937

Profiles give window into booming Chinese market With China’s window profiles market projected to explode by 30 per cent annually for the foreseeable future, the benefits of grabbing market share right now are hard to exaggerate. So when Zhejiang-based Zhongcai Profiles Co. Ltd. needed an advanced materials solution to manufacture color-rich, high-performance window profiles for its building and construction customers, the company turned to SABIC Innovative Plastics.

The solution was Geloy XTW resin, a high-end ASA resin that’s making a name for itself in coextruded window profiles, gutters, siding and roofing for the building and construction industry; when used as a cap layer over PVC and other materials, Geloy XTW ASA resin maintains its color and gloss up to 10 times better than competitive products, SABIC said.

Geloy XTW ASA resins can be co-extruded over PVC — helping to eliminate “chalking” — as well as over ABS. According to SABIC, they offer good flow to accommodate complex window profile designs, and deliver superior impact resistance.

Another reason behind Zhongcai Profiles’ switch to Geloy XTW resin might just be sustainability. China’s goals to reduce its carbon footprint and conserve energy are better served with co-extruded Geloy XTW/PVC resin profiles than with aluminum, SABIC said, since the plastic window profiles provide superior insulation, lessening heat loss from buildings.

SABIC Innovative Plastics (Toronto); www.sabic-ip.com; 1-800-323-3783 www.canplastics.com March 2011 Canadian Plastics 29

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view from the floor

Two myths that persist

By Jim Anderton, technical editor

I

f you’re anything like me, you probably paid more attention to that cute blonde in your high school science class than to the basic physics and chemistry on the blackboard.

That’s too bad, because what we once thought was pure boredom turns out to be the answer to many misconceptions I still encounter frequently — often from industry professionals who ought to know better.

Here’s two of my favorite myths:

1

igh-voltage resistance H heaters are more efficient than low-voltage types.

I’d love to know where this one came from. I suspect it has something to do with Ohm’s Law, which relates voltage, resistance and current. Since driving more current through a resistance would produce more heat, on the surface this might seem to make sense. Truth is, however, the amount

of current drawn in a heater circuit is determined by the other two variables: voltage and resistance. Voltage is fixed by the electric company (although I’ve had some experiences with poor regulation which made me want to pull my hair out), and resistance by the resistivity and length of the heater filament. In other words, if you can’t vary two of the three terms in Ohm’s Law, you can’t vary the third. Double the voltage and you halve the current, but the power, or heat generated, is the same. Does this mean you can hook a flashlight battery across a band heater and melt resin? No, because that power source can’t deliver the proportional current to make up for the low voltage.

And that’s one of the practical reasons for going to higher voltages...lower current means thinner, less expensive wiring (which is one of the reasons why those hydro towers carry current at astronomical voltages that need to be stepped down by transformers...but I digress). There’s a reason why we measure resistance heater performance in Watts: it’s a unit of power, and guess how it relates to Ohm’s Law? By the following formula: Watts = Volts x Amps.

But that’s a DC formula; what about AC? For purely resistive circuits, it’s all “real power” as the alternating current engineers say, so it’s the same thing. And no, I’m not going to even try to get into reactance, apparent power, and all that horrible vector analysis!

2 Mould & Die Cleaner A versatile product that removes resin residues, oil, grease and wax build-up.

Silicone Mould Release Formulated to help release moulded parts faster.

Non-Silicone Mould Release Formulated to help release moulded parts in applications where silicone-based Mould Release cannot be used.

Paintable Mould Release Formulated to help release moulded parts that need to be decorated after moulding.

Rust Inhibitor A true penetration oil that will seek and creep itself into every nook and cranny.

Demoisturizing Lube Provides long lasting protection to metal moulds against corrosion and rust Stainless Steel Cleaner Cleans, shines and protects stainless steel as well as chrome, laminated plastic, ceramic and enamel Food Grade Silicone For use in food and industrial plants to stop squeaks, prevent sticking and corrosion and protect rubber mouldings and weather stripping Chromex 500 Removes synthetic remains in the extruder and die tooling when working with thermoplastics

Distributors welcome.

Minimum order of 5 cases.

For more information or samples, please call Bernie Weitzman.

Better Than Products, PO Box # 89, Vaughan, Ontario L4K 1Y8 Canada Phone: 905-669-9855 Fax: 905-669-6184 www.betterthanproducts.com

Y ou have to keep the chiller water flowing slowly enough to get good residence time inside the heat exchanger.

This misconception is really pervasive — it took a university thermodynamics course to cure me of it. The myth says that if the water is whistling through the heat exchanger, it doesn’t stay in the tubes long enough to release its heat. That’s wrong because it ignores the relationship between temperature change and heat flow. If you measure the outlet temperature of a slow flow system, it’ll be warmer than the outlet temperature of a fast flowing system because the slow system has time to equilibrate more of the coolant loop temperature. Heat transfer (i.e., cooling efficiency) is proportional to the temperature gradient in the fluid (i.e., inlet and outlet temperatures through the heat exchanger).

Faster flow is better, at least until you get to the point where pumping losses and higher system pressures drive up the costs of the hardware. The lessons? Don’t slow down or under rate the circulating pump, and measure the “delta tee” (temperature difference) between inlet and outlet fluid through a heat exchanger to know whether you’re winning or losing in efficiency. (FYI, I use a hand held IR “gun” — it cost about 50 bucks and is worth every penny!)

CPL

30 Canadian Plastics March 2011 www.canplastics.com

CPL Mar11 p30 view from floor.indd 30

22/02/11 10:48 AM

Turn your Purgings into Profits.

(Savings)

(Purgings)

Stop throwing away money. Reclaim your purgings with Maguire’s unique PURGING RECOVERY SYSTEM™.

Get payback right away.

Imagine what you could save in recovered purgings across your entire operation. You could easily pay for this unit itself within the first year. The Maguire Purging Recovery System runs about $30,000. Prior to this, size reducers would commonly cost about $150,000 per unit. So don’t throw away those purgings in some landfill, regrind them, recover those resin costs. It’s a new way to find money (savings) within your current system. A small outlay with a quick payback. And it’s the right thing for the environment.

The Purging Recovery System (PRS-20) is a unique, yet simple two-

stage process. The first stage takes awkward, large size purgings and planes them into small pieces, somewhat like a carpenter’s plane. Then stage two granulates them into highly uniform regrind ready for processing.

With nearly 150 patents in the U.S. and internationally, Maguire is committed to developing unique products and systems for plastic processing. It’s backed by a five-year warranty for your protection. This is another way that Maguire helps you find new profits in your plant.

Check out our video on the web.

Contact Maguire today.

Purging Recovery System PRS-20 unique two-stage process.

Maguire Canada 299 Basaltic Road, Unit 1 Vaughan, Ontario L4K 4W8 Toll Free: 866-441-8409 Tel: 905-879-1100 Fax: 905-879-1101 Email: info@maguirecanada.com

The perfect blend of simplicity and control. www.MaguireCanada.com

Maguire Products Canada, Inc ®

CPL Mar11 p31 Maguire AD.indd 31

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The original. Better than any copy. Our SELOGICA control system does what others only promise: Quickly set up complete machine sequences. Reliable, graphics-oriented programming. Easy robot integration. Reliable plausibility checks. And now, also perform menu-guided set-up of ALLROUNDER injection molding machines and molds in just five steps. Only the innovative SELOGICA controller can do

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

www.arburg.us

this. The original from the Black Forest, supplied throughout the world.

Québec: D Cube · Montréal, QC · Phone: 514-831-6623 | Ontario: Dier International Plastics, Inc. · Unionville, ON · Phone: 905-474-9874 | Alberta & British Columbia: Turner Group, Inc. · Seattle, WA · Phone: 206-769-3707 |

CPL Mar11 p32 Arburg AD.indd 32

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