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A S l A ’ S L E A D l N G m aga z l ne f o r t h e p las t l c s and r u b b e r l nd u s t r y

業界新聞 管 材 機械: 在能源效率取得高比分


In this issue

Volume 29, No 207

publlshed slnce 1985

A S l A’ S L E A D l N G m aga z l ne f o r the plastlcs and rubber lndustry

Features 焦 點 內 容 12 管材機械: 在能源效率取得高比分 16 Country Focus

Publisher Arthur Schavemaker Tel: +31 547 275005 Email: arthur@kenter.nl

18 Pipe Machinery

Associate Publisher/Editor Tej Fernandez Tel: +60 3 4260 4575 Email: tej@plasticsandrubberasia.com

Unfazed by challenges, Indonesia revamps its policies to remain amongst Asia’s strongest economies; Indoplas show will be held against this backdrop from 3-6 September Battenfeld-cincinnati cuts through a competitive plastics extrusion machinery market with its energy efficient lines

21 Pipe Machinery

The plastics pipe sector is buoyed by the growth of the construction industry; featured are pipe machinery makers with new updates and installations

Editorial/Production Coordinator Angelica Buan Email: gel@plasticsandrubberasia.com Chinese Editor Koh Bee Ling

24 Recycling

Circulation Abril Castro Email: abril@taramedia.com.my

28 Recycling Machinery

Admin & Finance Manager Tean Arul Email: tean@taramedia.com.my

29 Medical Industry

Singapore Office Contact: Anthony Chan Tel: +65 63457368 Email: acesap@gmail.com

China’s tighter regulations against the dumping of waste plastics are driving the global recycling industry to improve its systems and recycling efforts Featuring recycling machinery from Gamma Meccanica and Herbold Meckeshneim With the development of frugal innovations, the healthcare delivery need not be expensive; especially for low to middle-income economies, where spending on medical services is limited and inadequate infrastructure and facilities are concerns

Regulars 概 要

8 業界新聞

Supplements 副 刊 Moulded packaging, electronics and automotive parts are driving the growth of plastics Overcapacity and competitive pricing are not unseating Malaysia as the leading glove maker; meanwhile, the sector gets a shot in the arm for cleanroom gloves

A S l A’ S L E A D l N G M A G A Z l N E F O R THE PLASTlCS AND RUBBER lNDUSTRY

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On the Cover The surging demand for pipes, especially in Asia, is giving the impetus for a plethora of feature-enhanced extrusion machines

業界新聞

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is published 8 times a year in Mandarin and English by Kenter & Co Publishers’ Representatives BV.

6 Materials News

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AUGUST 2014

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Industry News

Capacity expansions/Plant/Office set-ups • US energy infrastructure company CB&I and Swiss speciality chemicals firm Clariant joint venture, a ZieglerNatta (ZN) PP catalyst plant, will be starting up by 2015. Clariant and CB&I have also developed a series of new ZN PP catalysts to be produced in the US plant. • Elasto Sweden, part of the Hexpol TPE group, is investing in a new TPE production line at its facility in Åmål, Sweden. The plans include twin screw technology, advanced raw material controls, supporting sub systems and analytics equipment. The new line is expected to come on stream in 2015. • BASF, Huntsman, Shanghai Hua Yi (Group) Company, Shanghai Chlor-Alkali Chemical, and Sinopec are jointly constructing a new plant with a production capacity of 240,000 tonnes/ year of crude MDI (diphenylmethane diisocyanate) in Shanghai. With the new plant, the MDI capacity will be doubled to 480,000 tonnes/year. In addition, the partners plan to build a HCl (hydrogen chloride) recycling plant for the production of chlorine, a precursor for MDI. The facility is expected to start up 2017.

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• German speciality chemicals firm Evonik Industries has expanded its polyamide 12 production capacity in Germany by 5,000 tonnes. • US-based MonoSol, a Kuraray company, has broken ground for its new facility for watersoluble film products in the US, It will be constructed in three phases with the first phase scheduled to be operational in late 2016, generating a 15% capacity increase over MonoSol’s current global production levels. • German extrusion equipment manufacturer Gneuss, has started expansion work at its Bad Oeynhausen for an additional 2.400 sq m space for production by end of this year. Early this year, Gneuss purchased an additional 13.000 sq m of land adjacent to the existing site for the extensions and additions to the existing buildings. • Swiss speciality chemicals firm Clariant is setting up a research centre in Shanghai, for developing new catalysts for selected base metal hydrogenation applications for the speciality chemicals industry in China. It will commence operation by 2015.

• In other news, Clariant is increasing production capacity for its Licocene Performance Polymers by 50% at its facility on the FrankfurtHöchst Industrial Park in Germany. The debottlenecking of Clariant’s existing production line represents a low double-digit million Swiss Franc investment, with the additional capacity • Japanese firm Kureha Corporation has completed its polyvinylidene fluoride (PVDF) manufacturing plant in China. It has a capacity of 5,000 tonnes, thereby boosting the group capacity up to 9,000 tonnes, combining its operation at the Iwaki plant in Japan. • US-based Elevance Renewable Sciences, a speciality chemicals company that creates chemicals from natural oils, has entered into a 25:75 collaboration with Malaysian oil palm estate owner Genting Plantations, a 54.6%owned subsidiary of Genting Berhad, The collaboration will build a 240,000-tonne metathesis biorefinery in the Palm Oil Industrial Cluster (POIC) in Lahad Datu, Sabah, based on Elevance’s proprietary metathesis technology, and will produce renewable olefins and speciality chemicals. The target

markets are lubricants, surfactants and detergents. Under the agreement, Genting will pay Elevance license and design fees, and Elevance will provide intellectual property rights, knowledge transfer, and technical and consulting services. • Dutch firm DSM is investing in a new polymerisation plant in the US to manufacture Akulon polyamide 6 for film grades used in flexible food packaging and other segments. Financial details of the investment and location were not disclosed. Completion is targeted for mid-2016 and site locations for the plant are currently being evaluated • Speciality chemicals company Lanxess has started up its polyamide plant in Belgium, built in the direct vicinity of the caprolactam and glass fibre facilities operated by the group. With a capacity of 90,000 tonnes/ year, it represents an investment of EUR75 million. • Germany-based chemicals firm Evonik Industries is building a new production plant for polymer dispersants in Essen, Germany, to triple its global capacity for polymer dispersants. Plans call for start up in the first quarter of 2015. Polymer


INDUSTRY News dispersants are mainly used in waterbased systems in paints and printing inks and in high-solid systems with a low proportion of solvent. • Dow Chemical has begun construction of its previously announced world-scale ethylene facility that will be utilising low cost shale gas feedstocks at its Texas site in Freeport. The project is starting up in the first half of 2017, with a capacity of 150,000 tonnes. • US-based silicones maker Dow Corning has significantly ramped up production capacity for hexachlorodisilane (HCDS) - a high-purity precursor that is critical for a multitude of advanced, thin-film deposition processes for memory and logic semiconductor chip fabrication. It is working with global and local distributors to ensure its safe and efficient supply to current and future customers worldwide. • Cytec Industries Inc (CYT) is working together with Dralon, a German manufacturer of acrylic fibre, to support the exploration and development of large tow industrial grade carbon fibre. Demand for large tow carbon fibre is projected to grow significantly in the coming years, driven by increasing use in industrial markets such as automotive, whereby OEM manufacturers are actively researching the technology to help them achieve lighter-weight vehicles with greater fuel efficiency. Dralon is also investigating conversion of existing Dralon acrylic fibre production lines for the manufacture of high-quality heavy-tow precursor as well as investment in new carbon fibre lines. • US-based producer of styrenic block copolymers (SBCs) Kraton Performance Polymers has opened a new innovation centre in Ohio to manufacture a range of SBC-type materials in quantities ranging from 25 kg-50 tonnes. The facility is located within the company's flagship plant in Belpre. In addition, the modular design of the new pilot plant allows room for future expansion, and it is able to capitalise on the feedstocks of its on-site facility. AUGUST 2014

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Industry News

M&As • Belgian chemicals group Solvay and Ineos have entered into an agreement to form a PVC joint-venture, Inovyn, by the end of the year, following the divestments required by the European Commission (EC). Solvay will exit the business after three years, and may receive a targeted EUR250 million payment on top of an upfront payment of EUR175 million when the merger is completed.

• Swiss speciality chemicals firm Clariant and US-based Ashland have closed the previously announced sale of their Germanyheadquartered joint venture ASK Chemicals to private equity firm Rhône. The value of the transaction amounts to EUR257 million.

• Finland-based consumer and speciality packaging firm, Huhtamaki is acquiring Indian processor Positive Packaging, a privately owned flexible packaging company with nine manufacturing facilities in India and the United Arab Emirates, as well as significant business in Africa. The deal is valued at EUR247 million. Huhtamaki is also planning to divest its films business segment. It sells films that are mainly used for technical applications in the label, adhesive tape, hygiene and healthcare industries, as well as building and construction, automotive, packaging and graphic arts industries. The net sales of the segment in 2013 were EUR187 million and it has 924 employees.

• UK-based NDC Infrared Engineering, and US firm Beta LaserMike, both involved in NIR (near infrared), nucleonic, optical, X-Ray, laser, microwave, ultrasonic and process

• Mexican petrochemicals firm Alpek, and Germany-based chemicals company BASF have signed agreements concerning the EPS (expandable polystyrene) and PU (polyurethane) business

• Germany-headquartered Styrolution, which was founded in October 2011 as a 50-50 joint venture between BASF and Ineos, will be fully owned by Ineos. The latter will acquire BASF’s 50% share in Styrolution for a purchase price of EUR1.1 billion.

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control technology for non-contacting measurement and control solutions, have merged to create NDC Technologies. Headquartered in the US, NDC Technologies is part of Spectris, a supplier of productivity enhancing instrumentation and controls based in the UK.

AUGUST 2014

activities of the Mexican petrochemicals firm Polioles joint venture and BASF’s EPS business in North and South America, excluding BASF’s Neopor (grey EPS) business. Alpek will acquire all of Polioles’ EPS business, including its EPS production site in Mexico as well as BASF’s EPS business in North and South America; while BASF will acquire Polioles’ PU business activities, including selected assets in its Lerma facility. The combined capacity of all EPS facilities to be acquired by Alpek is estimated at 230,000 tonnes/year; including Polioles’ 165,000 tonnes/year plant in Mexico. • RocTool, a French specialist in the design and development of technologies for rapid moulding, and Hong Kong-based Ju Teng International, a provider of 3Cs (computers, communication and electronic devices) have signed two new production license agreements, for a cooperation in the key markets of tablets and notebook/laptops. The number of units manufactured is expected to exceed 470 million in 2014. • US-based TriMas Corporation, the parent company of Rieke Packaging Systems, has acquired Indian dispensing solutions provider Lion Holdings,

to expand its packaging footprint in Asia. Lion Holdings has three locations in India and also in Vietnam. It generated US$10 million in revenue last year. • US firm Thermoforming Technology Group (TTG) has acquired Lyle Industries. TTG also owns another thermoforming machine maker Brown Machine and Epco, a machinery remanufacturer and repairer for thermoformers and injection/blow moulding and diecasting equipment. TTG is wholly owned by private equity firm Spell Capital Partners and TTG Management. Lyle is a manufacturer of web or roll-fed thermoforming machinery as well as bottle trimmers and trim presses. • US-based SBC maker Kraton Performance Polymers has put its plans to merge with Taiwanese rival LCY Chemical Corp. on the backburner. The decision is due to the decline in the operating results for LCY’s SBC business in the first quarter of 2014 and the decline in Kraton's stock price and negative reactions from stockholders following the 24 June announcement that the merger could take two years longer to pay off than initially expected.


INDUSTRY NEWS

Asia to be the push factor for chemicals sector growth

A

sia’s growing middle class and increasing urbanisation have buoyed the region’s chemical demand, particularly for olefins, according to analysis from IHS Chemical. New crackers based on shale-related ethane in North America or low-cost feedstocks in the Middle East grab headlines, said Tony Potter, VicePresident of Asia Pacific for IHS Chemical, but Asia is set to add more olefins capacity by 2020 than these two regions combined. “Asia is the engine of global demand for olefins,” he said, adding that global incremental demand growth for ethylene and propylene combined will exceed 10 million tonnes/year during the next five years, with Asia accounting for 60% of demand growth. China will be responsible for much of the investment, with 53 olefin projects to start up by the end of 2018. Many are coal-to-olefins (CTO) or methanol-to-olefins (MTO) projects, but there are also a substantial number of on-purpose propylene projects. The coal-based units are both inland, where coal is available at lower mine-mouth prices, and in coastal provinces, where coal prices are higher because of transportation costs and exposure to the international coal market. Several CTO/MTO plants are already operating, but IHS says the CTO/MTO rush will be concentrated from 2015-2017 and tail off thereafter. The coalbased builds, likely constrained by water availability and environmental concerns, are finite. Potter also says that while capital costs are substantial, once the units are built, operating costs will be sufficiently low to position the Chinese units in the lower-cost half of the global supply curve. Meanwhile, India has much potential for growth, but olefin investments have not kept up with demand and derivative imports have been growing. Elsewhere in Asia, cracker investments are difficult to justify in the absence of advantaged feedstocks. Malaysia, Indonesia, and Vietnam, driven by growing domestic deficits of base chemicals and polymers, are all studying projects for start-up from 2018-2022. In Japan and Taiwan, the olefins industry is consolidating and reductions in capacity are expected. Propylene capacity addition in Asia from 20132018 will amount to 23 million tonnes/year, 85% of which will be in China. Much of the Asian new-

build capacity will run intermittently or at low operating rates, says Potter. “Much of the coal and all the naphtha-based propylene is tied to ethylene production, with relatively limited control over the ethylene-propylene production ratio.” Discretionary propylene production, he said, is from coal-to-propylene/methanol-to-propylene, propane dehydrogenation (PDH), and metathesis units. “The dependence on imported propane in a region that historically has had the highest propane prices in the world,” said Potter, “resulting in lessthan-compelling economics, suggesting that the new PDH units will act as swing capacity.” China to lead Asian PP and PVC markets Meanwhile, China will lead new global PP capacity increases over the next five years, as its goal of self-sufficiency drives 7.48 million tonnes/year of additions, of which 97.6% will come from new plants and the remainder from the expansion of existing facilities, says a new report from UK-based research and consulting firm GlobalData. Global PP capacity increased at a CAGR of 5.2% from 2003, reaching 65 million tonnes/ year in 2013, and is expected to continue rising to 86 million tonnes/year by 2018, at a slightly higher CAGR of 5.8%, according to GlobalData. Its report also states that China and Russia will be the leading contributors to future PP capacity increases, and will account for a combined 45% of global additions over the next five years. China will account for 62.4% and 35.5% of planned Asian and global PP capacity additions by 2018, respectively. Other countries like Venezuela and India will follow lead, contributing to capacity increases over the next five years. Elsewhere, German firm Ceresana says Asia Pacific is, by far, the largest sales market for PVC. Worldwide, about 39.3 million tonnes were consumed in 2013. The research analyst expects demand to increase by 3.2% per year until 2021. Accounting for almost 56% of global consumption, Asia Pacific will continue to develop at the highest growth rates. The construction industry is the prime sales market for PVC products, with the Chinese construction industry continuing to grow at higher rates than in most other countries, even though dynamics are slowing down. In addition, India is also one of the growth motors for the PVC market.

“…propylene capacity addition in Asia from 2013-2018 will amount to 23 million tonnes/year, 85% of which will be in China…”

AUGUST 2014

5


Materials News

Clear direction for biobased materials The bioplastics industry sees companies and research institutes that are showing their commitment with investments and technology respectively to develop new materials that are biobased and biodegradable. Merger and acquisition benefits production Not all companies are content to produce solely in China. One such US bioplastics products maker Trellis Earth Products now expects to make 50% of its products in the US, having recently paid US$2.6 million for the assets of defunct bioplastics materials firm Cereplast, which was liquidated in bankruptcy court. Assets it has purchased include a 110,000 sq ft bioplastics production facility in Seymour, Indiana; patent portfolio, and inventory with a replacement value over US$8 million. It has also paid certain contract costs, as part of Cereplast's Chapter 7 liquidation proceedings. Trellis Earth specialises in bioproducts for the food service industry

Trellis has three contract manufacturers in China and with Cereplast’s plant will allow it to manufacture in the US. Cereplast’s plant, which has the capacity to produce US$50 million worth of products, will also allow Trellis to fast track its large scale injection moulding and thermoforming operations in the US. Trellis is a seven-year old company with over 500 customers in the food service industry and provides biobased cutlery, food containers, and shopping bags. It expects to post sales of US$8.5 million in 2015. E l s ew h ere , P H A p r o d u c e r Me r e d ia n and sister company DaniMer Scientific have merged under Meredian Holdings Group to increase the size and market awareness of both companies and allow for vertical integration into their supply chain. Meredian manufactures PHA biopolymers using renewable resource and has recently harvested its first locally sourced canola crop to produce biopolymers. Financing for investing into plants Dutch biobased materials and packaging firm Avantium has received EUR36 million financing from a group that includes beverage maker Coca-Cola, Austrian blow moulder Alpla Werke Alwin Lehner, French food

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AUGUST 2014

conglomerate Danone, and British investment firm Swire Pacific. Existing shareholders include Sofinnova Partners, Capricorn Venture Partners, ING Corporate Investments, Aescap Venture, Navitas Capital, Aster Capital and De Hoge Dennen Capital. The investment will be used to advance the development of a biobased alternative to PET, polyethylene furanoate (PEF), as well as for industrial Coke is working together validation of PEF and finalising with Avantium's the engineering and design breakthrough technology of the first commercial-scale to commercialise plant. renewable, plant-based The firm is already working plastic bottles with Coke to make bottles from PEF, which is said to be a 100%-biobased plastic with improved performance. Avantium currently makes PEF using the YXY technology at a 20-tonne pilot plant in Geleen, the Netherlands, and expects to start-up a 50,000-tonne/year commercial plant by 2017. The firm says its partners “need larger quantities for both technical testing and market tests and thus, the need to scale up.” It says its ultimate goal is that the PEF bottle is made from responsibly sourced plant based materials, such as second generation feedstock. Elsewhere, BioAmber’s Canadian subsidiary BioAmber Sarnia, a joint venture with Mitsui, has secured a CAD$20 million commercial loan from a financial consortium led by Export Development Canada as well as Farm Credit Canada and Comerica Bank. It will be used to complete the ongoing construction of the Sarnia plant and fund its start-up and commissioning. When completed in early 2015, the Sarnia plant will be the world's largest biobased succinic acid production facility. The plant will convert Canadian agricultural products into biobased succinic acid, a value added building block chemical that is used in a wide variety of everyday products. BioAmber projects that over 90% of the 30,000 tonnes/year capacity will be exported.


Materials News

Matrìca has opened the first of its three green chemistry plants

Italy-based Matrìca, a 50:50 joint venture between Italian petrochemicals maker Versalis and US-based Novamont, has opened the first of its three green chemistry plants for converting vegetable oils into monomers and intermediates in Italy. Over the course of the year, the firm says it will open another two plants being built at the new Matrìca complex. At these two plants, monomers and intermediates will be transformed into extensor oils for the tyre industry and other products such as bases for bio-lubricants, plasticisers for polymers and products for cosmetic formulations. The company says the three plants will have an investment of EUR180 million and a total capacity of 70,000 tonnes/year of bio-products. A result of a 20-year research, the process is said to be different from competitors. It uses a proprietary technology that does not use ozone in the vegetable oil oxidative scission reaction and allows the production of intermediates known as azelaic acid and pelargonic acid, as well as new proprietary products, through a safe process with low environmental impact. New research on starch for bioplastics Researchers in Finland have developed a starch-based biodegradable plastic with a high degree of mechanical strength and good thermal resistance. This biomaterial is targeted at applications in food packaging and biomedical materials. Starch is a polysaccharide consisting of two components: a linear glucose polymer called amylose and a highly branched glucose polymer called amylopectin. Most green plants store their energy as starch and it is present in large quantities in grains such as maize, wheat and rice, in addition to tubers like potatoes. A brittle polymer, starch can be treated with heat and water, via a technique called gelatisation, to make it suitable for traditional plastic processing techniques. However, films prepared by this method rapidly recrystalise and degrade, leaving them amorphous and brittle again. Many small molecules have been used as

plasticisers that hydrogen bonds with the glucose units in starch to prevent recrystallisation, however they are prone to migration and leeching, again degrading over time. Unfortunately larger compounds are typically less effective plasticisers. Now, researchers from the Aalto University have used a star-shaped molecule called AEEP (aminoethoxy ethanol substituted phosphazene), the arms of which act as dynamic and mobile hydrogen bonding plasticiser molecules while being connected to a central core, effectively preventing migration and leeching of the starch molecules from the resulting plastic. The researchers are now testing AEEP within a range of biopolymers, in addition to investigating the selfhealing properties of their starch-based plastic. Biodegradable bottle project Meanwhile, Spain’s institute of plastic technology, Aimplas, is coordinating a two-year research on developing a biodegradable material, in partnership with seven European partners, to reduce waste and increase recycling. The aim of the Biobottle project is to create multi-layer and monolayer plastic bottles, as well as bags for dairy packaging, which do not require to be separated from the rest of the organic wastes at the end of their brief lifespan.

The European Biobottle project is working towards launching biodegradable material

Aimplas says that Europe is the world’s biggest consumer of dairy products globally, with an average of 261 kg per year, according to data provided by FAO in 2011. But only 10-15% of the 2 million tonnes of HDPE milk bottles used are recycled. According to Aimplas, one of the main difficulties of Biobottle is getting a biodegradable material that complies with the same requirements as traditional packaging, including resistance to thermal treatments such as the sterilisation or pasteurisation. Biobottle is a European project in the Seventh Framework Programme and has received funding of EUR1 million. AUGUST 2014

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Country Focus

The making of a revitalised Indonesia Forecast to become the seventh largest economy by 2030, Indonesia is expected to boldly uplift its sombre economic climate of the previous year’s rupiah decline, market volatility, and lower exports. It is against this backdrop that the 9th edition of Indoplas and 8th editions of Indoprint and Indopack shows will be held from 3-6 September 2014 at JI Expo.

Indoplas is a leading platform for Indonesia's plastics processing, machinery and components players

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I

n 2013, Indonesia’s economic growth had posted an unprecedented low of a growth of 5.6% from the third quarter since 2009. The Indonesian currency rupiah depreciated to more than 20% against the US dollar; lower export demand as well as market volatility and tighter external financing conditions burdened one of ASEAN’s largest economies. The World Bank (WB), in its economic quarterly report on the country, pre-empted a continuing slow growth up to the current year. The GDP growth will crawl to 5.3% this year, driven by the softening of investment spending, growing by only 4.5% in the third quarter, reflecting mainly reductions in machinery and equipment investment, according to the global financial organisation. Setting aside pessimism, WB says that “reversing the slower growth forecast for 2014 will require additional and more focused policy responses,” to buoy up the economy. WB also suggests addressing the deficit by increasing exports and securing higher quality external financing (i.e., FDIs) by easing trade regulations and logistics. Despite the earlier forecasts, the Indonesian government is assuring that GDP growth will pick up to 5.5% this year, to be supported in part by an increasing household spending. According to Indonesian Finance Minister Chatib Basri, household spending holds a share of 55% of the country’s total economic growth, adding that exports this year are expected to recover in view of improving commodity prices and rising demand from major trading partners. On the road to recovery Indonesia’s good fate could hinge from meeting the objectives of its current economic master plan, MP3EI, of accelerating and expanding economic development in order to support its transformation to a developed country by 2025, by targeting an economic growth of 7-8% annually, apart from responding to other challenges. The new government of newly elected President Joko Widodo embodies the redemption the country needs for it to reach its growth targets. On his agenda is for the country to rebound within two years, against the backdrop of a reform hinged on gradually easing the country’s US$21 billion fuel subsidies, which keep the local prices of fuel low, thereby allowing for more funds for infrastructure. Two key sectors, mining and energy, will get a shot in the arm, as well.


Country Focus Transition resilient industry The country is in the middle of transition, shedding off some of its old policies to give way to new ones that are deemed to encourage investments and revenue growth. Several industry sectors that comprise the non-oil and gas industry, which contributed 24% to the total GDP in 2012, have been through a rough patch over the years. Reinforced by a sizeable population of 242 million and a growing middle class estimated at 74 million people, expected to almost double by 2020 to 141 million, Indonesia is a strong market contender in the Asian region as well as globally. According to France-headquartered online analyst group, Global Business Guide (GBG), the country’s increased consumer purchasing power will lead to expanding growth for industries such as the packaging industry, with growth placed at 11.1% to US$4.36 billion in 2012. GBG indicated that food and beverage, which accounts for 67% of the total packaging market value, as well as pharmaceuticals are the key sectors that will push the demand for packaging materials. UK-headquartered BRICdata reported that the Indonesian packaging industry is expected to post a CAGR of 5.1% from 2012 to 2016, reaching a value of US$9.6 billion in 2016. Nielsen (formerly known AC Nielsen), a US research firm, sees packaging to gain a growing demand from the middle class consumers. It adds that new household consumption will be worth US$5.3 trillion by 2020. Meanwhile, by tapping the 130 million Indonesian consumer population aged 29 and below, for the youth-driven cosmetics sector in the country, could generate sales growth for the packaging segments, and thereby provide growth opportunities for consumer packaged goods (CPG) firms across Asia-Pacific, according to UK-based research firm Canadean. Thus, the packaging sector will drive the country's plastics sector, which is expected to register a growth of 6% on average a year through to 2015. Indoplas well placed for a staging It is against this backdrop that the 9th Indonesian edition of Indoplas and 8th editions of Indoprint and Indopack for the plastic, processing, packaging and printing industries will be held from 3-6 September 2014 at JI Expo. The show is jointly organised by Messe Dßsseldorf Asia and PT Wahana Kemalaniaga Makmur (Wakeni) as well as supported by local and international bodies and associations. This includes the plastics and rubber machinery, food processing and packaging machinery, and printing and paper equipment and supplies divisions of the German Engineering Federation (VDMA).


Pipe Machinery

Scoring high in energy efficiency At a time when energy costs, carbon footprint, and economics are crucial issues across manufacturing industries, there is no other important technology than the one that is energy efficient. Battenfeldcincinnati (Foshan) Extrusion Systems, the Chinese arm of Austrian machinery maker battenfeld-cincinnati, has tweaked its machinery to offer energy efficiency. After the display of the soIEX60 series at Chinaplas last year, the solEX 75-40-C extruder was shown at Chinaplas 2014

Focus on efficiency According to the International Energy Agency (IEA)’s 2013 report, energy efficiency is the world’s important fuel. Energy efficiency holds the spotlight in the International Energy Efficiency Scorecard report by the American Council for an Energy Efficient Economy (ACEEE). This year, ACEEE’s second edition report cites Germany as leading the top 16 largest economies worldwide, which comprise more than 81% of global GDP and about 71% of global electricity consumption. Energy efficiency is unquestionably a defining factor in today’s industries. It is also topmost in extrusion specialist battenfeld-cincinnati’s agenda. In a recent interview with PRA, Mark Feng, General Manager of battenfeldcincinnati (Foshan) Extrusion Systems, said, “We place emphasis on energy efficiency in our machines and processes by optimising the screw and die design, and using AC main motor as a standard offering.” Feng went on to say that the company’s machinery is able to achieve about 30-50% energy savings per tonne for PO pipe processing when compared with locally produced machines. “In addition, we offer an inner cooling system for large diameter/high output PO pipe extrusion and green pipe/profile downstream equipment for more energy savings. The energy saving feature is definitely one of the most important selling points for our machinery besides the high output, high stability, automation and long life span,” he adds. Stable sales Formerly known as B+C Extrusion Systems (Foshan), the company changed its name in 2010 as a result of a rebranding exercise. It was founded in 1996 and is based in Foshan, China. “We produce around 150 extrusion lines a year and have a turnover of US$45 million, 85% of which is from the local market, and 15% is from exports,” according to Feng. The Foshan operation now has a production space of 130,000 sq ft and a workforce of 180. Nevertheless, the company does not see itself expanding over the next five years. Feng explains, “This is because the plastic extrusion machinery market is, comparatively, not a very big market, yet the competition is quite high. On the other hand, by optimising the production/ management, we can manage to double the sales volume with the existing factory.” New to the market The company manufactures and markets extrusion equipment and systems. It offers single and twin-screw, parallel twin, and conical twin extruders. Additionally, the company provides control and automation systems. At the Chinaplas show, held in Shanghai this year, battenfeldcincinnati showcased the top billed solEX single-screw extruder series. Following the success of the demonstration of a PE gas pipe extrusion line in September 2013 and the display of the soIEX60 series at Chinaplas last year, the solEX 75-40-C extruder was shown at Chinaplas 2014.

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Pipe Machinery At battenfeld-cincinnati’s open house last year, on display was a line with a solEX extruder and the company’s green pipe downstream equipment. A PE gas pipe with a diameter of 250 mm was produced in co-operation with some long-term partner companies. “The solEX extruder series for high-performance PE-HD and PP pipe extrusion was shown for the first time at an exhibition in China. At our open house in Foshan in September 2013, we realised there was a lot of interest from our customers on the topics of energyefficiency and energy savings,” said Feng. The highlights of the solEX extruder series are the higher throughputs with smaller screw diameters, a smaller footprint and improved melt homogeneity with low energy input. Feng also says that the solEX 40 L/D ratio series PO pipe extruders have the highest output, compared with extruders with the same screw diameter from other suppliers. Other products on display Another exhibit at the booth was the conEX 63 R-C conical twin-screw extruder. This series is characterised

The conEX series of conical twin-screw extruders is ideal for producing construction profiles, technical profiles or corrugated pipes

by cost and material savings, especially in profile production. The conEX extruder series comprises four models, featuring screw diameters ranging from 38 to 72 mm, with energy efficiency due to the barrel


Pipe Machinery insulation system and vacuum aggregate pumps, with reduced water volumes and a new vacuum filter complete with filter sump. The series constitutes the sixth generation of conical twin-screw extruders from battenfeld-cincinnati, based on the proven predecessor series of konos extruders. The screw geometry has been further optimised to enable an output of up to 10% in both pipe and profile extrusion (for pipes up to 550 kg/hour and for profiles up to 280 kg/hour). Patrons of the new lines include chemicals and building supplier Wuhu Conch Profiles and Science (Anhui/China), which installed 24 extruders in 2012 to expand its PVC processing capacity. Another product on display was the helix VSI 250 pipe head. Battenfeld-cincinnati says the VSI dies are the only dies on the market with a two-step distributor concept consisting of a spiral mandrel for preliminary distribution and a lattice basket distributor for fine distribution. This, thus, allows for homogenisation, high outputs, a wide processing window and consistent, high product quality across all pipe dimensions.

A graphic of the Helix pipe head

Further improvement comes for the Alpha singlescrew extruder for technical profiles and small pipes, which has been on the global market for over 12 years with more than 750 units sold. In contrast to the predecessor models, the revised Alpha extruders are now equipped with a new compact drive system, which offers the benefit of small dimensions and substantially reduced oil requirements. Thanks to the smaller drive unit and a redesigned sub-structure, the extruder has also become more space-saving. Other improvements include the high-quality frequency converters built in for a more accurate regulation of screw speed and torque, and the temperature controllers. The latter are equipped with a fast self-tuning function and have an integrated on/off function as well. Another feature is the warning light in traffic-light colours. The green light signals that the extruder is operating trouble-free, orange stands for conditions requiring the machine operator’s attention and red indicates a need for immediate intervention.

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The best-selling Alpha model comes with several technical improvements

The improvements cover all models of the standardised Alpha range, available in sizes 45, 60 and 75 with either smooth or grooved feed zones. Way forward The Chinese firm is backed by the parent company’s more than 100 years of experience in the extrusion industry. “In China, our main markets are infrastructure (all single-screw applications for pipes) and building/ construction (all twin-screw applications).” Feng envisages the growth of the PO pipe market, thanks to the intensive investment in infrastructure by the government, especially in gas/water pipes as well as hot and cold water pipe markets. “There is a vast potential in the pipe market since many residential and government buildings are updating their existing pipelines.” Regionally, in China, he expects growth to come from north-west (Szechuan and Chongqing) apart from the traditional areas of Shandong, Guangdong and Zhejiang provinces. He also noted that outside China, Southeast Asia and South America will provide the impetus for growth. Nevertheless, China is an important market for battenfeld-cincinnati since it has a growing number of manufacturers who are starting to recognise the advantage of improving product quality and processes. “In China, we will introduce the latest technology from Europe, localise more non-key parts to bring the costs down, develop machinery fit for the Chinese market and the overseas mid-market,” according to Feng, when asked about near-term plans for the Asian market. A prime mover for promoting energy efficient technologies, battenfeld-cincinnati will continue to provide solutions that will meet the needs of its global customers. “We have had a number of sales in China over the past few years and we expect to continue to grow as China’s demands for high output and energy efficient machinery continue to grow,” concluded Feng.


Pipe Machinery

Growth of pipe machinery to pipe up With global demand for plastic pipes projected to rise 8.5% a year through 2017 to 11.2 billion m, it is no surprise that European extrusion machine makers are seeing a windfall in Asia.

Amut delivers compact line to Vietnam Italian manufacturer of pipe extrusion lines Amut has delivered an extrusion line for the production of PE100 pipes, with an external diameter of 1,000 mm, to Vietnam. A new compact extrusion die and an extruder with a capacity of 1,200 kg/hour have been specifically designed for this purpose. The die is provided with 16-spiral distributors to guarantee a wall thickness uniformity, while the extruder is based on bimetallic barrel and wear-proof coated screw. Meanwhile, Amut has supplied to a Vietnamese customer a line for also in Asia, is a producing U-PVC pipes for electric conduits machine producing 63 mm-diameter HDPE pipes, based on an EA48 single-screw extruder for a capacity of 240 kg/hour. Another line has been supplied to a Vietnamese customer to produce U-PVC pipes for electric conduits (diameters from 16-32 mm) based on a BA72 twin-screw extruder for a capacity up to 250 kg/hour, +/- 10%. A hot/cold mixing system for the production of powder PVC dry-blend completes the line. The heat mixer has a capacity of 200 l, while the horizontal cooling mixer has 500 l.

IPC made in China At KraussMaffei Berstorff’s open house early this year, at its Haiyan plant in China, it showcased a system that used the KME 90-36 B/R and the KM-RKW 36-630 IPC pipehead as its core components, along with a locally-produced internal pipe cooling (IPC) system. The line was shown producing 630-mm HDPE pipes. In the growing PO pipe sector, there is great demand for productivity, efficiency and cost reduction among Chinese processors, says the German extrusion machine maker. By means of a side channel compressor, the IPC system sucks ambient air at high speed against the haul-off direction through the centre of the pipe. As well as being cooled from the outside (using conventional processes with vacuum tanks and spray baths), the pipe is also cooled from the inside. This, thus, cuts the cooling zone by up to 40%. The advantages include lower investment costs and At an open house in China, KraussMaffei Berstorff displayed a footprint and no need for additional coolant as the system uses ambient air. line with a locally made IPC AUGUST 2014

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PIPE MACHINERY Tecnomatic delivers high output line for PE-RC pipes to Middle East Italian company Tecnomatic has recently commissioned the Middle East’s first multi-layer line with a maximum pipe diameter size of 1,200 mm, and a capacity of up to 2,000 kg/hour. It was delivered to Muna Noor from Oman, which is part of Boubyan Petrochemical from Kuwait. Tecnomatic says it has delivered a 2,000 kg/hour-output line to the Middle East

The company, which specialises in the production of 800 mm-PE pipes, has recently opened a new factory in Sohar to produce PP double wall corrugated sewer pipes of up to 1,200 mm, fittings and manholes and PE multilayer safety pipes. With the new line, it is extending its product portfolio and introducing a new generation of pipes, produced under a technology license from Dutch firm Wavin Overseas, a part of the Mexichem Group. Multi-layer pipe systems offer a practical solution to the installation and jointing of PE systems providing security, protection and durability. This new generation of pipes will be ideal for Oman’s poor and stony soils, which can produce high stresses in the pipe wall. Material supplier Borouge’s BorSafe High Stress Crack Resistance (HSCR) PE100 is used for the multi-layer pipes. The material is ideal for rocky soil conditions where no imported pipe surround is available as they are equally resistant to Slow Crack Growth (SCG) caused by external surface damage and point loads. This material can therefore be used for pipes that are installed trenchless technology, ranging from the renovation of existing pipelines using insertions or pipe bursting techniques or for installing new pipes using high speed ploughing or horizontal directional drilling. Tecnomatic’s extrusion line is equipped with three Vega extruders: two Vega 60.37 for the inner and outer layers and one Vega 90.37 for the middle layer. Features include low energy, thanks to an optimised screw design and AC motors, grooved feed zones, gearboxes, and industrial PC for process control with remote assistance. Central to the line is the new Venus Multi 1,200 mm die head. Based on a three-spiral design, it ensures an optimal melt flow for a wide range of thickness ratios and represents a major milestone for the production of large

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diameter multi-layer pipes using HSCR materials. The die-head integrates compact dimension and low pressure build-up with consequent energy savings, Heating Cooling Systems (HCS) for constant internal temperature, even when high volumes of materials are involved. It allows for a production size range from 250-1,200 mm, producing three diameters per die-set up to 800 mm using the classic draw-down mode. For sizes above 800 mm, the swelling mode is preferred for better control of wall thickness distribution and pipe ovality. The die-sets comprise of two parts with a small end ring to define the gap of the die, permitting a rapid die change and regulation. The die-head is complete with a hydraulic tilt function for an easy mounting operation and the Pipe Air Cooling (PAC) system, which provides intensive cooling of the inner pipe surface by sucking air in the opposite direction to extrusion. It, thus, ensures more uniform cooling 360 degrees around the pipe and through the thick wall, decreasing the differences in the pipe solidification rate and reducing the residual internal stresses. This also has the benefit of reducing the wall thickness eccentricity and ovality whilst providing a short line or higher output compared to a standard line without inner cooling. The line is synchronised using gravimetrics on each extruder, working in connection with a 16 sensor ultrasonic system. To cool down 250-1,200 mm-diameter pipes and for wall thicknesses up to 88.2 mm, the line is equipped with two 18 m-vacuum baths. The downstream equipment includes a haul-off, with ten caterpillar tracks, each one controlled by an independent vector AC motor and a planetary saw with knife cutting and universal clamping device, for swarfless pipe delivery. Profile Dies’s focus on drip irrigation pipe lines Profile Dies has developed in the last two years new automated extrusion lines for the production of drip irrigation pipes with flat drippers, which reach a maximum speed of 150 m/minute and are able to insert up to 800 drippers/minute. The 20-year old Italian firm also has extrusion lines for the production of round drip irrigation pipes with a production speed between 80 and 100 m/minute and inserting capacity up to 400 drippers/minute, to produce pipes with diameters from 16 to 20 mm.

Profile Dies provides lines for drip irrigation pipes with flat drippers


PIPE MACHINERY Still with a view to developing solutions for the irrigation field, Profile Dies has recently delivered a new extrusion line for the production of drip-tape. This irrigation system is extremely cheap and is suitable for both crops in open fields and gardens. It is easy to install and to remove after use, thanks to the low thickness of the pipe. The technical specifications of the new line include: a maximum output of up to 200 m/minute; spacing (distance between holes) of between 10 and 15 cm and minimum wall thickness of 5-6 mils.

to 200 mm. It has been redesigned with new pipe heating in a single IR-SW oven, and both mandrel and flange electromechanical movement. This, the company says, allows for high speed with accurate positioning of the belling tools, easy process parameters setting from the operating panel, energy efficiency, low noise level, and system reliability. Since it sockets PP pipes, it is equipped with the Permanent Socket Profile feature.

Sica showcases updated equipment at open house Italian company Sica, which recently celebrated its 50th anniversary, showcased 15 machines at an open house in mid-July. On display there were the TRK/C 2500 swarfless cutting machine for PE pipes up to 2,500 mm. It also had the TRS 160W cutting machine for cutting and chamfering, without removal of material, for PVC, PP and PE pipes up to 160 mm.

Rethinking Technology Sica’s new TRK/C 2500 swarfless cutting machine for PE pipes cuts up to 180 mm without material removal

Other equipment on display included the Unibell1 200 JRE electric belling machine for PVC pipes up to 200 mm. It has an IR-SW short-wave oven and is characterised by the electromechanical movement of the forming carriage and the elimination of hydraulic drives. A screw jack, connected to a latest generation brushless motor with resolver, allows a precise mandrel positioning in a closed loop with a high mechanical efficiency (up to 70%) and low noise level. Without the need for oil cooling, this solution also allows a reduction of water use while oil leakages are avoided and ordinary maintenance is reduced. Sica also showcased its Everbell4 200 PSP multi-belling machine for PP sewage pipes of up

Questioning current solutions. Trying out new perspectives. Looking for new approaches. In the largest know-how network for extrusion technology we think different to develop true innovations – for clear competitive advantages in the production of high-quality blown films, cast films, sheets, monofilaments, strapping tapes, nonwovens and WPC products.

Find more information about us online on www.reifenhauser.com You have questions? info@reifenhauser.com

Visit us at INDOPLAS, Jakarta - Indonesia Stand H 01, 3 - 6 September 2014


Recycling

Recycling efforts improve all-round As China strengthens its “green fencing”, European countries are pressured to push for recycling effectiveness. Meanwhile, brand owners are improving their recycling efforts, by conducting further studies to push the frontiers.

After a four-year journey, UK-based Nampak Plastics successfully launched the Infini bottle, incorporating up to 30% rHDPE. Over 200 million bottles were sold last year and are stocked at key UK retailers including Tesco, Morrisons, Marks & Spencer, Sainsbury’s and Waitrose

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China no more a dumping ground for plastic waste With China increasingly concerned over degradation to its environment, it has implemented “green fencing” regulations to curtail the dumping of plastic waste in the country. The country, once the final destination for more than 70% of the world’s plastic waste, is strengthening its “green fencing” regulations to restrict types of plastic waste materials it will accept. While China is the world’s largest consumer of recycled plastics, it relies heavily on imports, having imported 10.3 billion tonnes in 2012, according to research firm IHS. Jim Glauser, speciality chemicals analyst at IHS Chemical and author of a report on plastics recycling, says, “The country has rejected shipments of waste deemed contaminated or unsuitable and officials are cracking down on hazardous materials that eventually go to Chinese landfills.” China’s Green Fencing initiative, Glauser said, has turned the global recycling industry on its head. “Much of the plastic scraps once destined for China are now being exported elsewhere, and the global recycling equipment industry is working to expand its automation to improve waste sorting. Plastic manufacturers and producers of plastic goods are evaluating design guidelines to increase recyclability. One idea is the concept of resin markers, which would help recyclers assess contents of plastic waste to make sorting easier. China also has an opportunity to grow its domestic recycling.” Europe steps up efforts And now Europe, along with many other industrialised regions, such as the US, Canada, Japan, Brazil, Mexico and Australia, have to step up their recycling effectiveness for plastics, since China no longer wants to be the world’s dumping ground for plastic waste. In 2012, European plastics recycling and energy recovery reached 61.9%. Of this, 26.3% accounts for plastics recycling and 35.6% goes to energy recovery; the remaining 38.1% ends up in landfills. From 2006-2012, said IHS, the average amount of plastics post-consumer waste generated in Europe was 25 million tonnes. However, there are huge discrepancies in Europe with regard to plastics recycling. Seven European Union (EU) countries, plus Norway and Switzerland, have introduced landfill bans for plastic waste, while another ten EU member states landfill more than 60% of their plastic waste, according to the European Chemical Industry Council. Many Eastern European countries rely entirely on landfills to dispose of plastic waste. In 2012, according to IHS, 82% of recycled plastics in Europe were plastic packaged products and the recovery of waste was more than 69%. In total, approximately 34% of plastic packaging waste was mechanically recycled, while 0.5% went to feedstock recycling and nearly 35% was used for energy recovery. The 5.4 million tonnes destined for energy recovery went to both


Recycling incineration plants and as refuse-derived-fuel. In the same year, around 26% of total post-consumer plastic waste in Europe was collected for mechanical recycling, 0.3% went to feedstock recycling and nearly 36% went for energy recovery. PlasticsEurope, an association of plastics manufacturers, is advocating for a ban on the landfilling of plastic waste by 2020, which would prevent nearly 10 million tonnes/year or EUR9 billion/ year of plastic waste from going into a landfill each year. Initially, the countries of key focus for the project would be the UK, Italy, Spain, France and Poland. Since the increasing global substitution of plastics for other types of materials will keep plastic waste in the public spotlight for many years to come what will likely happen, “is that incentives must be made or more laws must be passed to stimulate higher quality recycling by extending collection and sorting services, and by keeping both recycling and energy recovery as viable alternatives to landfill.” For this to happen in Europe and elsewhere, Glauser said, “recycling processes must improve.” This includes the collection, sorting, and processing; while plastics that cannot be sustainably recycled should be used for energy recovery rather than sent to a landfill.

Europeans to conduct recycling studies Meanwhile in the UK, a consortium including retailer Tesco and consumer brands Nestlé and Coca-Cola, and waste management company Sita have received a Department for Environment, Food and Rural Affairs (Defra) funding to explore ways to increase the amount of flexible laminate packaging that is collected and recycled. Laminated packaging recycler Enval is also be involved in the project. The initial study, led by LRS Consultancy, will assess the feasibility of a range of collection systems for households and commercial premises. It is estimated that more than 160,000 tonnes of flexible laminate packaging enters the UK marketplace each year, including such items as food and beverage pouches, toothpaste tubes and pet food sachets. Over in Norway, Nofir, which runs a nationwide recycling system for fishing and fish farming industry, has organised a large European campaign to target discarded equipment from the fishing and farming industry. Nofir’s Eco-Innovation project expands from Norway to include Europe as well as finding companies or fisherman who want to get rid of material and arranging to transport for it to Lithuania, where it can be dismantled and, in most cases, recycled. The campaign has received EUR680,000 in funding from the EU.


Recycling Brand owners in the US take charge Nestlé Waters North America is rolling out its ReBorn bottles with 50% recycled PET for mineral water brands Arrowhead and Resource. The food contact grade rPET for these bottles is provided by PET recycling company CarbonLITE of Los Angeles and is produced using Vacurema bottle-to-bottle technology from Austrian machinery maker Erema. Nestlé Waters's new ReBorn bottles contain 50% rPET

CarbonLITE processes more than 2 billion plastic bottles collected from municipal curbside systems and deposit centres annually at its 20,000 sq m plant and supplies its rPET to PepsiCo, among other wellknown major international clients. Erema has supplied two Vacurema Prime 2321 T systems, each designed for a capacity of 2,500 kg of material/hour, ensuring that decontamination is efficient and fast. Meanwhile, CarbonLITE’s new US$60 million facility in Texas, with a capacity of 45,000 tonnes/year of rPET, will supply Nestlé’s bottling facilities near Dallas. It will be equipped with Italian machine maker Amut’s machinery. Amut says its machinery and technology will be utilised in many steps of critical areas for cleaning the PET bottle stream. The system includes the patentpending DLB-60 de-labeller for full-body shrink sleeve label-removal system and the patented PW-180/5 high friction whole bottle wash technology for cleaning the whole bottles prior to the wet grinding process.

Amut will supply its de-labeller to CarbonLITE

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For the final cleaning of the PET flakes, Amut has supplied its patented AX 150/5 hot flake friction washing technology machinery. For the final cleaning of the PET flakes, Amut will be supplying its patented hot flake friction washing technology

Since shrink labels represent up to 15% of the capacity of bottles in the US, Amut says its de-labeller is the best solution to solve the problem and not losing material. For food-grade purification and pelletising, it will use Erema’s technology. CarbonLITE's plant in California, which was opened in 2012, uses Erema's Vacurema technology

Cradle-to-cradle programme Danish brewer Carlsberg and selected global suppliers have joined forces to rethink the design and production of packaging material, to develop the next generation of packaging products that are optimised for recycling and reuse, while, at the same time, retaining or improving the quality and value. The founding companies working together with Carlsberg in the up-cycling project include can maker Rexam; glass bottle coatings supplier Arkema; glass packaging supplier O-I; shrink wrap maker RKW; paperboard multipacks supplier MWV; and manufacturer of PET kegs for draught beer Petainer. Earlier studies by the Ellen MacArthur Foundation and McKinsey & Co. project billions of Euros in savings from stimulating economic activity in product development, remanufacturing and refurbishment. The companies will be using the cradle to cradle business platform for innovation and quality, with the aim of improving the quality of products so that they • have an improved consumer quality for the user; • pose no health risk for anyone who comes into contact with them;


Recycling recyclable. One of the key challenges that the initiative will focus on is creating solutions that are both sustainable and appealing to the consumer.

The Carlsberg shrink-wrap multipack is produced by RKW

• and, are of both economic and ecological benefit. With this initiative, Carlsberg aims to have new products undergo an assessment for up-cycling potential using the cradle-to-cradle analysis, which will reveal if the products contain any chemicals or additives that would reduce the value and quality of the materials. The targets are to include 15 partners and to have a minimum of three products certified by 2016. Carlsberg says it is already using solutions that rely less on natural resources, such as refillable glass bottles, which in some markets are used more than 20 times, and the beverage can which is infinitely

Surmounting challenges Part of the challenge for recyclers, is that there is an unrelenting introduction of new plastic packaging materials with unique compositions tailored to provide superior performance characteristics for specific applications, which contributes to the increasing technical complexity of plastics recycling. Cost is also a big issue, said Glauser. “A big part of what facilitates recycling programmes is the cost of producing new materials versus recycled material costs. According to our Competitive Cost and Margin Analysis Service at IHS Chemical, in Europe, producers face some of the highest linear low-density polyethylene product costs, so the cost analysis of recycled plastic versus virgin chemical is comparable if not in favour of recycling.� While the US relies heavily on landfills (75 to 80%), Japan disposes of more than half of its plastics waste by incineration and Western Europe uses a combination of both, including making the consumer pay for rubbish, as an incentive to recycling.


Recycling Machinery

In tandem with recycling of humid materials

I

taly-based Gamma Meccanica has been developing machines and systems for recycling since 1988. Besides its Compac lines, consisting of shredder, extruder, filter, pelletiser; and P.E.T. lines consisting of shredder, extruder, filter specific for the treatment of PET and underwater pelletiser, Gamma Meccanica also has a new concept. Thanks to the partnership with SB Plastics Machinery, Gamma Meccanica proposes the new G MOBY lines for regeneration and re-gradation of PET, allowing for what it says is “super-clean� PET. This solution offers the possibility to obtain foodcontact granules suitable to be used to produce food packaging, in accordance with the regulations of FDA and EFSA, as well as granules for applications that require high viscosity. Another novelty is the Tandem line for recycling of heavily printed, high humidity (over 15%) and contaminated materials. The line consists of the

The Tandem line is for the recycling heavily printed, high humidity and contaminated materials

feeding system Compac with Ecotronic and two extruders arranged in tandem, hence its name. The efficiency of the line is guaranteed by an innovative degassing system. Two screen changers are connected to the line, one after the primary extruder and another one after the secondary extruder. The end of the line consists of a TDA pelletiser. Of particular interest is the new feeding system Compac with Ecotronic. Due to the new transmission system with

electronic power control, it provides significant energy saving; eliminates water in the temperature control. It also offers the possibility of recycling materials with over 15% humidity; and ensures consistent temperature of material inside the feeding silo. The degassing station allows processing of highly printed materials by creating a large surface of exposure of the material to vacuum, and by increasing the residence time of material inside the degassing

Separation system makes it easy

G

erman machine maker Herbold Meckeshneim has developed what it says is an affordable, simple solution for removing foreign material that enters a recycling machine, such as metal parts and minerals. Under the Herbold process,

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heavy materials are separated and evacuated from the flow in an ascending pipe via a discharge unit, in the pneumatic conveyor. That means there is no further transport of the discarded material. All materials are separated, even those that have a considerable higher flying speed on

the conveying pipe of the pneumatic conveyor. Herbold says it has sold the first system to a PET bottle recycling plant, where the foreign materials are separated out from the flow of entire bottles, before being size-reduced. Herbold’s new system separates foreign bodies to avoid breakdowns

section. The gas or steam that is formed by melt temperature and is mixed inside in the form of more or less distributed bubbles is eliminated by the force created by vacuum extraction. The gases or the vapours that are formed from the melted material mixed inside the primary extruder are eliminated by the extraction force created by the vacuum. On the secondary extruder, an additional degassing system can be installed to expel possible residual gases. Two screen changers can be connected: one after the primary extruder, which expels the contaminating element of greater size, and the other after the secondary one that allows the elimination of particles from 50-100 microns. The water ring pelletiser TDA has been conceived with an innovative design that allows an operator a fast start/stop sequence and a rapid material change. It can be installed on lines suited to work most plastics (PE, PP, PS, ABS, masterbatch, compounded material and others).


Medical Industry

Practical technologies redefining healthcare Technology advances in the medical sector are equated to giving better quality results for treatments and diagnostics. In developing and low to middle-income economies, where spending on medical services is limited and inadequate infrastructure and facilities are concerns, access to advanced medical technologies is almost prohibitive. Thus, this has resulted in innovative and alternative systems, says Angelica Buan in this report.

MakerNurse’s IV site protectors now feature a plastic U-shaped domed cup, known as the IV House

What is being done with old/used plastics? There is an enormous unmet need for the design and development of medical devices and technologies for use in the developing world. Fortunately, recent years have seen an explosion of interest and funding for addressing global healthcare inequalities. New technologies are making it possible to develop low-cost diagnostic and therapeutic devices with the potential to make a huge impact. On the other side, used toys like Lego bricks as moulds for lab-onchips or an old bike pump to run a nebuliser have been repurposed by the Massachusetts Institute of Technology (MIT)’s Innovations in International Health initiative, under the purview of Programme Director, Jose GomezMarquez. The Honduras-native inventor works with his team at the Massachusetts-based Little Devices Lab, reverseOne of the Little Devices Lab’s innovation engineering expensive for DIY health technologies around the medical devices and world is the MEDIKit nebuliser that rebuilding them using cheap allows anyone to create an inhalable components like used toys. He says that toys and medical drug delivery device starting with a basic bicycle pump devices share commonalities such as being small and precisely manufactured, and highly regulated for safety. MakerNurse, an initiative launched in September 2013, is also spearheaded by Gomez-Marquez, and is supported by the Robert Wood Johnson Foundation. The project focuses on innovativeness of nurses when faced with healthcare and medical care delivery challenges. It encourages sharing of practical solutions and technologies that have been developed by nurses to improve a patient’s health. For instance, to develop further the construction of makeshift intravenous (IV) site protectors using cut-up plastic cups and tape, a safer version of such innovation has been developed. It features a plastic U-shaped domed cup, known as the IV House, which is awaiting a patent application. Improving further for geriatric patients with fragile skin, the invention uses a fabric wrap around the skin instead of tape. AUGUST 2014

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Medical Industry Improvising for practicality Africa, a country that is also challenged by the high cost of healthcare and limited access to advanced diagnostics, can benefit from frugal innovations. For instance, Nigerian surgeon, Dr Oluombo Awojobi, has created a blood centrifuge with used bike parts for his farm clinic. The proxy device is pedalled by hand to spin the blood sample. Awojobi’s 52-bed clinic in Eruwa, a rural area about 60 km from Ibadan in south-western Nigeria, also features other cheap inventions, like a woodmetal operating table covered with formica for a smooth surface, and that can be raised and lowered by a vehicle-use hydraulic jack. A rear wheel of a bicycle, which revolves at 5,400 rpm with a force 3,000 times the force of gravity, is turned into a haematocrit centrifuge. It is used to determine the level of oxygencarrying red cells in patients’ blood. While the above examples given are commendable, it is always advisable to have the experience and advice of a registered healthcare expert! US firms cater to lower income groups Meanwhile, one company that has probably put frugal innovation in the mainstream is US conglomerate General Electric (GE). It started in 2007 making medical devices in India, including ultrasound and electrocardiogram (ECG) machines, and is shipping the lower costing equipment to emerging markets in Africa, Eastern Europe, Latin America and Asia. The company says that the equipment, manufactured at its Bangalore facility, is 40% cheaper. Meanwhile, the MAC400, GE's first portable ECG, also designed in India, uses less plastic and a smaller LCD screen, thus saving on materials, and costs US$800 against the high-end versions in the US$2,000-US$10,000 range. California-based D-Rev, a not-for-profit product development company, says it designs medical devices for people living under US$4 a day. D-Rev has innovated the ReMotion Knee, a prosthetic knee that mobilises above-knee amputees, and is worn by more than 4,700 amputees in India and parts of Africa, Asia, and Latin America. The firm, which has an R&D funded by grants from foundations and private sectors, has been cited a Technology Pioneer 2014 in the Health Category by the World Economic Forum San Francisco. D-Rev’s third generation ReMotion knee is designed to be mass produced on a global scale

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Traditionally, microfluidic devices have been fabricated like microchips using photolithography. A desired pattern of micrometer-sized channels and ports is created on top of a silicon substrate, which can then be replicated many times by moulding or embossing. However, the process requires specialised cleanroom equipment and can take several days to complete. If valves are needed in the system, they traditionally have been made from silicones, which are not the best materials to use with particular laboratory assays or for manufacturing lab-on-a-chip structures. The National Institute of Standards and Technology or NIST (an agency of the US Department of Commerce) has spent the past few years developing and refining a method for making microfluidic devices using plastic films and doublesided tape that produces a functional apparatus in hours rather than days, and requires only simple tools to create channels and ports. NIST researchers have combined a glass slide, plastic sheets and doublesided tape to create an inexpensive microfluidic device

The NIST designs allow for folding the films to make multilayer or 3D structures, can be used to make devices with multiple functions, and cost a fraction of traditional fabrication techniques. To develop this further, NIST and the University of Maryland have developed an under-US$1 system for a 3D microfluidic device for manufacturing uniformly sized and shaped vesicles or liposomes. It consists of bundled capillary tubes, which the team says requires no special fabrication technology or expertise. The device consists of a 3-mm glass cylinder containing a bundle of seven tiny glass capillary tubes, and a 500-micrometre plastic capillary through the centre tube. Liposomes are simple cell-like spheres made of a double layer of phospholipids, used as artificial drug carriers. Baby care at a nominal cost One of D-Rev’s designs is Brilliance, a globallyappropriate phototherapy device to treat newborn jaundice in low-income hospitals, which is half the cost of the lowest-cost incubator and 1/10th of the cost in industrialised markets. It is working with Indiabased neonatal products supplier Phoenix Medical Systems to manufacture and market Brilliance.


Medical Industry

D-Rev has licensed Brilliance to Indian neonatal care equipment maker Phoenix Medical Systems

Yet another success story comes from a social enterprise known as Embrace Innovations. From what started at Stanford Design School in the US as an idea to create a neonatal hypothermia that cost less than 1% of the price of an incubator, developed to a baby warmer when it was soon realised that costs was just one part of the problem, with shortage of highly skilled caregivers, inadequate power, and maintenance issues adding to the challenge. Thus, to help millions of vulnerable babies in less developed countries, especially in areas where electricity is unreliable or equipment is scarce, infant warmers were developed. Embrace Nest is an insulated pouch that is able to keep a low weight baby at a temperature of 37°C while Embrace Care is a completely non-electric baby warmer intended for home use. Embrace uses the WarmPak, an innovative phasechange material to rapidly stabilise the temperature of an infant suffering from hypothermia, absorbing heat quickly and then releasing it over a long period of time. Three components are incorporated in the design of the warmer: a sleeping bag, a pouch of phase-change material, and an electric heater to warm the pouch. In conclusion, it can be seen that various efforts have been exerted into simplifying technologies and lowering costs, while maintaining the quality results that they deliver. Advocates of low-cost healthcare have helped in bringing frugal innovation concepts, which are usually low-cost medical devices specially designed for low and middle-income economies, to fruition. Around 4,000 Embrace portable infant warmers that do not need continuous power supply, have been distributed globally in less developed countries through partnerships with clinics, governments, NGOs and community-based organisations

Asia improvises with low-cost healthcare; mHealth to emerge Healthcare spending in Asia Pacific was estimated at about US$1.34 trillion in 2013 and is expected to grow at a CAGR of 10.5% over the next five years to reach US$2.21 trillion in 2018. While the region is going through major regulatory transitions where patient access and reduction of costs are paramount, there are major transformations expected to impact the charter on growth for companies in the future, says Frost & Sullivan in its healthcare report. With the exception of sophisticated markets of Australia and Japan, other countries are far from introducing regulations that support the use of advanced medical technology products, according to Reenita Das, Senior Vice President of Healthcare and Life Sciences at Frost & Sullivan. She also says that there is a strong pull toward usage of more simplistic frugal products that are “easy to use and require less administration and training time” and adds, “This could mean the only way to introduce high-tech products into these markets would be to develop products that are also low in cost.” Das gives examples of Indian prosthetic organisations having built prosthetic limbs costing less than US$45 each and used in over 1,000 amputee cases, while Diabeto has built a Bluetoothpowered hardware device for easy monitoring of blood sugar levels for diabetics, costing less than US$50. At the other end of the scale, Das predicts the high penetration of mobile phone technology across a number of Asia Pacific countries. “By 2020, we’re expected to have approximately 20 billion devices globally. China is projected to have 5.1 billion and India, 1.5 billion. Smartphone penetration in South Korea is at 82.4%, followed by Singapore at 74.2%.” According to UK-based information provider Visiongain, the mobile healthcare market or mHealth will be valued at US$6.7 billion before the onset of 2015. The mHealth tools also include wearables such as smartwatches, smartphones, and tablets. Visiongain says that connected devices and machine-to-machine technology, as well as mobile network advancements and emergence of lowcost smartphones will accelerate mHealth market growth. Some examples of technology for mHealth include South Korean electronics firm Samsung’s Galaxy S5 smartphone that features a built-in Heart Rate sensor; Hitachi Europe and Viennabased technology firm MIG’s mobile wi-fi-enabled biometric scanners for patients at the point-of-care. Indeed, while the overall environment in Asia is extremely complex and dynamic, and, while differences remain between the countries there are major transformations enabling change to create more universal policies and systems across this large region.

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Injection Moulding Asia Moulding Industry

Moulding plastics for growth sectors The global injection moulded plastics market is expected

Furthermore, the low labour and raw material cost in the region is expected to augment the growth, in turn boosting the demand for plastics over the forecast period. North America and Europe accounted for a significant share of the market in 2013 but are expected to lose their market share to Asia owing to the shift in manufacturing activities to other low cost markets. Latin America and Middle East were small markets and together accounted for over 10% of the demand in 2013. However, volatile crude oil prices coupled with growing environmental concerns are expected to be key issues for the market.

to reach US$277.78 billion by 2020, according to a new study by US-headquartered Grand View Research.

Growth sectors pushing demand for plastics he global demand for injection moulded plastics was 92,312 kilotonnes in 2013 and is expected to reach 130,139.7 kilotonnes by 2020, growing at a CAGR of 5% from 2014 to 2020. Increasing demand for plastics as a packaging material coupled with the growing packaging industry in Asia is expected to be a key factor driving market demand over the next six years. Packaging was the largest application segment of the market, accounting for over 3 million tonnes or 30% of plastics demand in 2013. Growing preference is towards plastics as packaging materials, owing to their light weight and better aesthetics. Packaging finds applications in both consumer packaging and industrial as both flexible and rigid packaging. The demand for packaging is on the rise owing to the improving economic conditions of countries such as India, Brazil, Russia and other Asian countries. The other sector driving the growth of the market is the automotive market, which is also expected to augment the demand for plastics as a substitute to metal. Automotive and transportation segments are expected to emerge as the fastest growing applications at an estimated CAGR of 5.7% from 2014 to 2020. Meanwhile, the building and construction segment (doors and sanitary wares) accounted for close to 10% of the market in 2013. Other applications such as healthcare devices accounted for 14% of the global demand in 2013, says Grand View in its report titled “Global Injection Molded Plastics Market Analysis And Segment Forecasts To 2020�.

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Material usage for moulded parts he upturn of the packaging and automotive markets is expected to increase the demand for ABS, polypropylene (PP) and HDPE, which accounted for 17% of global demand in 2013 and is expected to grow owing to its increasing use in the packaging industry. PP was still the highest injection moulded resin, with volume estimated at 32,836.1 kilotonnes or over 34% of global demand in 2013. PP is one of the major resins used in rigid packaging, while ABS use is picking up in the automotive industry, owing to the increased focus on weight reduction in vehicles to attain higher efficiency. Globally, the cost of resin or raw material accounts for 42% of the total cost incurred for production of injection moulded plastics. Cost incurred for the process and other costs associated with it accounts for 45% of the total cost and machinery accounts for 13%. The market is fragmented with key participants that include US materials suppliers like Dow Chemicals, DuPont, Eastman, Huntsman and ExxonMobil Chemical as well as European materials makers like Lyondell Basell, BASF and Sabic among others, according to the research.

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Moulding sets a record ith 190,000 caps/hour and 1.5 billion/year, German/Japanese injection moulding machinery supplier Sumitomo (SHI) Demag together with its partners, Total Petrochemicals and Plastisud, says it has set a new world record in the production of HDPE caps with tamper-evident band without post-moulding operations. Displayed at Chinaplas 2014, the El-Exis SP 420-3000 packaging machine produces 1.3 g HDPE screw caps on a 96-cavity hot-runner mould (29/25 design) with a production cycle of what is said to be 1.9 seconds. This machine is equipped with a 25:1 L/D ratio barrier screw and has been designed with a special backflow barrier aiming to improve reproducibility.

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Asia in the lead ther key findings from the study suggest that Asia Pacific was the largest regional market for injection moulded plastics, with a market revenue of US$70.18 billion or 37% of global demand in 2013. In addition, the region is expected to witness the fastest growth in demand, at an estimated CAGR of 5.4% from 2014 to 2020, owing to its growing automotive and construction industry. The growing sectors, such as automotive, electronics and construction, in India, China and other parts of Southeast Asia, are expected to be key drivers.

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Injection Moulding Asia Moulding Industry crystallisation, thus reducing demoulding time between shots while giving optimised mechanical parts. According to Arnaud Nomblot, Business Development Manager Packaging at SHI, “Total’s know-how in the field of materials for caps production has greatly contributed to this success.” He said that the material provides a vital contribution in terms of production efficiency. “The technical breakthrough was made possible thanks to the excellent flow characteristics of the HD6081 material,” he added.

The El-Exis SP 420-3000 packaging machine was displayed at Chinaplas 2014

The fast cycle time results, on one hand, from the combination of optimised mould dynamics by what SHI says is its unique independent hybrid clamp system and optimised injection and plasticising performances. On the other hand, this achievement has been made possible thanks to the close co-operation between packaging partners, including Total, who has contributed its expertise in polyolefin resins for the caps and closures industry. Total’s HD6081 (d = 0.960 g/cm³, MI2 = 8 g/10min) is dedicated to still water application and is said to be the “best” HDPE resin capable of achieving fastest

The production of HDPE caps with tamper-evident band without post-moulding operations has set a new world record


Rubber Journal Asia Industry News • German specialty chemicals Evonik Industries and Chinese polycrystalline silicon (PCS) manufacturer Jiangsu Zhongneng Polysilicon Technology Development are forming a 60:40 joint venture to set up a 20,000-tonne plant for the production of fumed silica and ultra-pure silicon tetrachloride in China. It will start-up by 2016. In related news, Evonik is building a plant in São Paulo, Brazil to produce precipitated silicas by 2016. Evonik is expanding its silica capacities throughout the world and by the end of 2014 it will have grown by around 30% compared to 2010. This year, it started up a 20,000-tonne/year plant In the US. Further expansions in the North and South America have been undertaken following expansions in Europe and Asia, such as the Thai plant completion in March. Meanwhile, it is also investing in a research centre for silanes in Germany, to start up by 2016. • Japanese firm Teijin and its wholly-owned subsidiary Teijin Frontier (Osaka) have established Teijin FRA Tire Cord (Thailand) with partner, Japanese tyre cord company, Ayaha Corporation. The 16,000-tonne facility will produce rayon, aramid, PEN, polyester and nylon tyre cords for tyres by 2015. The US$11.7 million facility will target China and the ASEAN region. • Yokohama Tire Corp (YTC), the North American manufacturing and marketing arm of Japanbased Yokohama Rubber, is relocating its western distribution operations to a newly constructed 658,000 sq ft warehouse in California by end of 2014. • Also in the US, South Korean tyre maker Kumho Tire is investing US$413 million to build its first factory in the country to cater to demand from Hyundai Motor and other global vehicle makers.

It is to resume construction of the plant in Georgia, which broke ground in 2008 only to be put on hold due to the global financial crisis. The factory will be completed in early 2016 and will have a capacity of 4 million tyres/year. Kumho, which has been under a debt restructuring programme since 2009, said its creditors had approved the factory plan. • Another South Korean tyre maker Hankook Tire also plans to spend US$800 million on building its first US factory, aiming to begin production at the Tennessee plant by 2016. • Munich-based chemical group Wacker has opened a new logistics facility in Kolkata, India. It will be operated by Wacker Metroark Chemicals, a jv between Wacker and Kolkata-based Metroark. It complements an existing network of warehouses in Mumbai, Delhi and Chennai and is envisaged to help maximise flexibility of logistics, increase delivery speed, and minimise lead times for customers. • Czech tyre maker Mitas, a business unit of CGS of Prague, plans to modernise and expand its agricultural tyre plant in Ruma to help meet rising demand from markets in Southern and Eastern Europe and the Middle East. To be completed by mid-2016, it will boost capacity of bias and radial agricultural tyres to 35,000 tonnes/year. The project will initially involve the construction of a logistics centre at the factory it acquired in 2008 from the now defunct GPX International Tire Corp. • RP-Sanjiv Goenka Group, India’s biggest producer of raw carbon black, is planning to build a US$170 million carbon black plant at Borg El Arab, Alexandria.

It will produce 140,000 tonnes of carbon black, which is used in the manufacture of tyres. The plant is expected to start production by the beginning of 2016. • Indian two and three-wheeler tyre maker TVS Tyres plans to increase its manufacturing capacity by 12% of its current 1.7 million tyres/month, which was achieved following a 10% capacity increase the previous year. TVS Tyres, which has two facilities each in Madurai and Pantnagar, also manufactures off-road tyres for tractors and agricultural applications. Most of its off-road tyres are exported to Africa and Southeast Asia. • Japanese firm Bridgestone is relocating its rubber tracks and marine fenders manufacturing operation in Shenyang City, China, to a chemical industry park also located in Shenyang City. The relocation will cost US$33 million, which includes building construction and equipment. The new plant will span about 560,000 sq ft, with plans for production to begin in the first half of 2016. Shenyang Bridgestone produces rubber tracks used on agricultural, construction, mining and transportation equipment. It also produces marine fenders used as energy absorbing bumpers on docks of shipping ports worldwide. In related news, Bridgestone says it will delay the startup of its mining tyre plant in Thailand as demand is slowing down, adding to the companies postponing expansions in Thailand. The firm says that global demand for coal mining vehicles is less than it had expected and will announce a new output start-up date later. Honda Motor had in April said it would delay building its third Thai plant by six months because of political unrest in the country.

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Rubber Journal Asia Industry News • Indian firm Apollo Tyres is expanding two of its tyre plants. It includes expanding the truck-bus radial capacity at the company’s Chennai plant from 6,000 tyres/day to 8,900 tyres/ day and the conversion of the company’s Kalamassery plant, in the southern Indian state of Kerala, from bias truck tyres to speciality/industrial tyres. The company estimates an investment of US$340 million for these projects and says that it plans to raise funds to pursue these organic growth opportunities and for other corporate purposes. The board has authorised the raising of funds, subject to approval from shareholders, by issuing up to US$200 million in securities. • PT Yokohama Indonesia, part of Japan’s Yokohama Rubber, has started construction of its new plant in Batam, Riau, with a

total investment valued at US$29 million. The tyre maker’s first plant in Indonesia is being built on 5.1 ha of a total 10 ha available area, with the remaining space on standby for a planned expansion. Being also the firm’s second production site for producing pneumatic marine fenders and marine hoses that are used in the handling and transferring of crude oil at sea for material mixing, moulding and vulcanisation, the plant will increase production capacity by 1.5 times the current capacity. It is expected to be completed by June 2015 • US-based Universal Polymer & Rubber Ltd, a custom manufacturer of moulded and extruded rubber parts, has acquired Universal Rubber and Plastics Corp (URPC) to build up its product line and add a die-cut operation to its business. URPC manufactures

gaskets, bumpers, seals, bushings and shock mounts from natural rubber, silicone, nitrile, polyurethane, butyl, neoprene and other elastomers for the automotive, construction and general industrial sectors. Meanwhile, Universal Polymer also completed an expansion recently at its Middlefield plant, adding 36,000 sq ft to increase the size of the facility to about 125,000 sq ft. • The Industrial Solutions business of Swiss industrial firm Trelleborg has completed the acquisition of Turkey-headquartered Superlas Group, a manufacturer of industrial hoses used in a range of industries with production facilities in Gebze. Duzce and Tokat (Turkey), and sales offices in Austria and the UK. Financial details of the acquisition were not disclosed.

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Rubber Journal Asia Materials News

Tyre sustainability with nanomaterials Tyre demand is expected to reach 2.9 billion

For tyres, nanomaterials could result in significant benefits for customers, the environment and societies more generally, in a way that they help increase car and truck fuel efficiency and durability, and reduce greenhouse gas emissions and tyre weight. Insofar as benefits are assessed, the OECD report also suggests the need for a supporting framework and relevant tools to guide decision making in assessing the economic, social and ecological impacts of the introduction of new nanomaterials in tyre production. The development of industry-specific guidance to assess the environmental, health and safety risks at various stages of products development is critical, it says. Other recommendations and provisions in the report include: • A risk management framework to enable sitespecific or company-specific assessments and the development of risk management strategies for using nanomaterials as additives in tyres; • Insights into the status of nanotechnology innovation and the drivers of innovation in the tyre industry; the economic and social costs as well as benefits; the safe use of new nanomaterials at all stages of their life cycles; the identification of the tools and frameworks supporting decision making at various stages of product development; and the facilitation of outreach and knowledge transfer on the safe use of new nanomaterials; • Call for policy action to support nanotechnology research and the commercialisation of such research; • Highlight on the importance of collaboration between governments and industry to address the specific challenges raised by the introduction of new nanomaterials. According to Philippe Fonta, Managing Director of the WBCSD’s TIP project, the project took two years to undertake. “It provides a guidance for risk assessment for the use of nanotechnology in the tyre sector and sets the basis for the safe and responsible introduction of these promising technologies, while taking full consideration of their socio-economic and environmental impacts,” concluded Fonta.

units or US$276 billion in 2017. With this huge demand, tyre companies weigh upon the availability of feedstock, costs of materials, as well as manufacturing practices that have to conform to environmental regulations. The use of nanomaterials is reckoned to parry the sustainability concerns in tyre making.

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n the latest Nanotechnology and Tyres: Greening Industry and Transport report by the Organisation for Economic Cooperation and Development (OECD), which highlights the potential of new nanomaterials, it deduces that the use of new materials in tyre production “could help foster the sustainability of the tyre industry and reduce the environmental impact of vehicles”. The World Business Council for Sustainable Development (WBCSD), a CEO-led organisation of some 200 forward-thinking global companies, has accepted the said report, which was originally proposed to OECD and supported by the Business and Industry Advisor Committee (BIAC) through the WBSCD’s Tire Industry Project (TIP). The latter is chaired by the world’s three largest tyre manufacturers, namely Bridgestone (Japan), Goodyear (US) and Michelin (France), and includes 11 companies representing approximately 65% of the world’s tyre manufacturing capacity.

Nanomaterials: a light in the dark tunnel? he report says that new nanomaterials offer promising avenues for future innovation, which can contribute to the sustainability and resource efficiency of the tyre industry and of the transport sector. Besides the potential to decrease tyre rolling resistance (improving fuel consumption and CO2 emissions) and lower wear resistance (increasing tyre lifetime), the materials are also able to maintain wet grip and existing safety levels. Nanomaterials, as defined in the 2011 European Commission (EC) Recommendation, are materials that often have specific properties due to their small particle size, measured in nanometers, which is one millionth of a millimetre, or approximately 100,000 times smaller than the diameter of a human hair. Materials engineered in nanoscale are often referred to as engineered nanomaterials (ENMs). ENMs are designed for use in many commercial materials, devices and structures that may range from cosmetics, sporting goods, and clothing to electronics and tyres.

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Rubber Journal Asia Gloves

Gripping opportunities in a niche market The gloves sector is facing challenging times,

Hartalega produces plasticiser-free gloves for the semi-conductor, biotechnology and thin film sectors

with demand declining and an oversupply situation expected, though Malaysia, the largest exporter of gloves, maintains an optimistic view. Meanwhile, the emergence of contaminationcontrol technology and an ironclad requirement for cleanliness in manufacturing is creating a niche spot for rubber gloves, says Angelica Buan in this report.

Malaysia’s major rubber glove manufacturers, Top Glove, Kossan, Supermax and Hartalega, are ramping up production to the point of overcapacity. Their combined additional production totals to about 9 billion pieces, which will be made during different periods: Kossan is increasing its output to 2.5 billion pieces this year; Supermax, in view of a new 5.3 billion unit-capacity plant is increasing production by 2.5 billion pieces; Top Glove is accruing an additional 2 billion pieces by end of the year, while Hartalega is expected to increase production by 2 billion pieces. Nonetheless, some industry experts opine that oversupply is unlikely with an increased demand – a redeeming situation in the case of Malaysia. The Malaysian Rubber Gloves Manufacturers Association (MARGMA) notes that the country’s rubber glove exports, particularly for the healthcare, food, electric/electronics, and automotive sectors, will rise by 8% to 178.6 billion pieces this year. The association recently signed an MOU with MREPC and nine key sponsors for the staging of The 7th International Rubber Glove Conference and Exhibition (IRGCE). It will be held from 2-4 September in Kuala Lumpur, Malaysia, and is sponsored by rubber chemicals company Excelkos as well as glove makers Hartalega, Kossan, Latexx Partners, Smart Glove, Supermax, Top Glove, WRP, and YTY. The bi-annual event is expected to draw 500 participants and 3,000 trade visitors. There will be conferences where key international and regulatory bodies from the US, Japan, China and Malaysia will present technical papers on standards and specifications, quality assurance and regulations on medical devices and protective gloves.

On a decline s the healthcare sector’s perennial demand enough to keep glove players in top shape? Finlandheadquartered research consultancy Global Research & Data Services forecasts an annual global demand expansion of 7.9% for rubber gloves between 2014 and 2018. A large volume of the demand will be from the medical and healthcare segments. This outlook, however, has not kept Safeskin Medical and Scientific, a Thailand-based unit of US firm Kimberly-Clark Corporation, from closing its rubber glove plant in Songkhla province, and displacing some 3,000 workers. Australian glove maker Ansell, while seeing sustainable sales of its medical gloves, is also cutting back due to weakening sales of its gloves in its domestic market. The company’s recent acquisitions to boost its revenues did not help as expected. A sales growth of 9% was posted last year in the six months to 31 December, with 1% coming from organic growth and the rest from the acquisitions. Sales in the Asia Pacific region are also declining for most of Ansell’s products as well as in Russia and Turkey, against the slowdown in the mining sector that has led to a decreased requirement for Ansell’s occupational gloves. Recently it announced that it is transferring its wellness unit offshore. It is also exiting the US military gloves operations, and shutting down a manufacturing plant in Malaysia.

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Oversupply situation in Malaysia? eanwhile Malaysia, which is a manufacturing base for 125 glove makers who supply half the world’s requirement for gloves, according to the Malaysian Rubber Export Promotion Council (MREPC) website, is currently at risk of facing a glut and competitive pricing.

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Bargaining chip in the cleanroom ust like how the IRGCE is themed “Beyond Just Infection Control”, to indicate a larger market for

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Rubber Journal Asia Gloves gloves, there are other niche segments, such as cleanroom consumables, which glove makers can tap for increments. The McIlvaine Company, in its World Cleanroom Markets report, says that Asia will be the largest market for cleanroom consumables by 2015. Sales from this segment are expected to reach US$8 billion through 2015, with the pharmaceutical and biotechnology sectors expected to be the third largest consumers of cleanroom products. Cleanroom consumables include masks, coveralls, boots, hoods, rubber gloves, and other equipment worn or used in controlled environments (cleanrooms) that are free from dust and other contaminants, where electronic components are manufactured or scientific research is conducted. The above is echoed by research firm TechNavio in its Global Cleanroom Consumables Market 2014-2018 report. The US firm says that the Asia Pacific region is a leading driver for cleanroom consumables, amidst the strong presence of the semiconductor and electronics industries in the region. Between 2013-2018 cleanroom consumables will reach a CAGR of 4.95%. Cleanroom gloves, classified also as non-medical gloves, partake in the US$7.85 billion forecast value for global disposable gloves by 2019, according to research firm Transparency Market Research’s study.

Giving a hand to the non-medical glove sector ince the semiconductor industry, the largest user of cleanrooms worldwide, is strong in Asia (China, Taiwan and South Korea), where manufacturing operations are brisk for flat panel displays, hard disk drives, storage and photovoltaics, cleanroom gloves have a high potential in the region. Malaysia, the rubber gloves hub in Asia, is also benefiting from the optimistic global semi-conductor equipment forecast of a growth of 20.8% to US$38.4 billion this year; and increasing further by 10.8% to exceed US$42.6 billion by 2015. In view of the forecast, glove makers that are traditionally known for making medical and healthcare gloves are also producing cleanroom gloves to broaden their market catch. Where cleanroom gloves were a sideline business for glove makers, whose primary business was manufacturing medical gloves, and cleanroom gloves were nothing more than medical gloves laundered, tested for contaminants and packaged for controlled environments, now things are different. As cleanroom glove sales continue to grow, the cleanroom industry is starting to carry more weight with glove makers, who see an opportunity to profit from materials and features specifically developed for the controlled environment user. For instance, Top Glove’s latex and nitrile cleanroom gloves are marketed for the semiconductor, electronic, aerospace and biotechnology industries. Among other physical features are that the powder-free gloves provide protection from contaminants and unwanted substances, while providing comfort and natural fit. Hartalega, which claims to be the pioneer in nitrile gloves production, is wagering on the semiconductor, biotechnology, nanotechnology, pharmaceutical, flat panel displays, thin film technology, and disk drive industries for its cleanroom gloves. It says the gloves do not contain plasticisers, carbamates, thiuram, fillers, phthalate esters, silicone oil, and amide. Yet another glove maker, Kossan produces cleanroom, food grade, high risk gloves and other thick versions of natural gloves for specific applications. Kossan reported last year that sales growth from the cleanroom segment is evidenced by more customers approving and accepting its cleanroom gloves and cleanroom disposables. Nonetheless, it says that revenue contribution from the cleanroom segment is relatively small, approximately 2.6% of the total glove sales. However, the company is optimistic that sales in this segment will pick up in the near term. According to a report by Malaysia’s Affin Investments Bank, Kossan is eyeing capacity expansions, with possible ventures in Indonesia and Vietnam, and diversification into technical rubber products, surgical and cleanroom gloves to widen its customer base.

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Growth in cleanroom gloves he cleanroom gloves market is subject to high margins but nevertheless has potentials for growth. Growth sectors such as electrical and electronics (E&E) and semi-conductors have dire need for cleanroom gloves. The Cleanrooms World Markets study published by McIlvaine suggests that global cleanrooms space (net space in operation) is forecast to expand to 12.12 million sq m this year, up by 5% from a year ago. Thus, a majority of medical glove makers also produce gloves for cleanrooms, especially since materials with controlled environment features are developing. Cleanroom gloves that are made from nitrile, latex or vinyl materials resemble examination gloves. They are usually thin, ambidextrous, and disposable; and, listed with an ISO number or Class number to denote particulate levels for cleanroom compatibility. The Scottish Society for Contamination Control, in its report, explains that cleanroom gloves are critical for contamination control in the semiconductor, flat-panel display, disk-drive, and other high-technology industries. It states that gloves are among the most important, and most expensive too, in the cleanroom consumables sector. It also says that technology plays a role in the formulation of cleanroom gloves. Furthermore, there is strong demand for cleanroom gloves from the food and automotive industries too, which require protection for workers using chemicals, reactive or unhygienic materials.

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Rubber Journal Asia Gloves A relatively low-profile but nevertheless, leading cleanroom consumables maker based in Malaysia, Riverstone Resources, produces latex and nitrile cleanroom gloves for the hard disk drive sector, which accounts for a majority 60% share of its cleanroom gloves output. It also caters to the LCD, semiconductor, consumer electronics, pharmaceutical and healthcare industries. Exporting 85% of its products to the US, Europe and rest of Asia, the company has five factories, three of which are in Malaysia, one in Thailand, and one in China. The facilities have a combined annual production capacity of 3.1 billion pieces of gloves. According to Singapore-based UOB Kay Hian Research, Riverstone is on the way to increasing its capacity to 8.2 billion pieces by 2018.

Riverstone says its cleanroom gloves are processed in accordance to ISO Class 4

Meanwhile, UK-based Nitritex has launched a new range of isolator and Restricted Access Barrier Systems (RABS) Nitritex’s nitrile BioClean BarrierPlus Gauntlet from sleeves and its newly launched isolator and Restricted Access gauntlets Barrier Systems (RABS) range (a type of glove), suitable for use in highly controlled environments. It says that the design meets the stiff requirements of a pharmaceutical barrier system. The companies say that the gloves are processed and packed in accordance to ISO cleanroom standards to meet the stringent requirements of the pharmaceutical, life science, medical device, and microelectronic industries where contamination control is the greatest concern. While the market may never produce a single glove suitable for all applications, but cleanroom users can be assured that the growth of the cleanroom sector will result in glove manufacturers continuing to grow the product range for years to come.


Events 2014 3 - 6 SEPTEMBER Indoplas Venue: Jakarta International Expo Kemayoran, Indonesia Tel: +65 6332 9620 Fax: +65 6337 4633 Email: indoplas@mda.com.sg Internet: www.indoplas.com 4 - 6 SEPTEMBER Plastics & Rubber Myanmar Venue: Myanmar Convention Centre, Myanmar Tel: +66 02 615 1255 Fax: +66 02 615 2991 Email: arayabhorn@besallworld.com Internet: www.plasticsandrubbermyanmar.com 16 - 18 SEPTEMBER IRC Venue: Beijing International Convention Centre, China Tel: +86 10 51338149 Fax: +86 10 51338149 Email: irc@chrubber.com Internet: www.irc2014.org 24 - 26 SEPTEMBER Plastic Osaka Venue: Intex, Osaka, Japan Tel: +81 3 3349 8519 Email: plastic@reedexpo.co.jp Internet: www.plas-kansai.jp 26 - 30 SEPTEMBER Taipeiplas Venue: Taipei World Trade Center Nangang Exhibition Hall, Taiwan Tel: +886 2 2725 5200 Email: plas@taitra.org.tw Internet: www.taipeiplas.com.tw 14 - 18 OCTOBER Fakuma Venue: Friedrichshafen, Germany Tel: +49 (0) 7025 9206 0 Fax: +49 (0) 7025 9206 620 Email: info@schall-messen.de Internet: www.fakuma-messe.de 20 - 21 OCTOBER ICIS Polyurethane Chain Conference Venue: Pan Pacific, Singapore Tel: +44 (0) 20 8652 8350 Email: nazan.ali@rbi.co.uk Internet: www.icis.com/polyurethane 21 - 24 OCTOBER ALL Plas Indonesia Venue: Jakarta International Expo Kemayoran, Indonesia Tel: +6221 6345861 Fax: +6221 6340140 Email: info@kristamedia.com Internet: www.interplasticindonesia.com 28 OCTOBER - 1 NOVEMBER IPF Japan Venue: Makuhari Messe, Tokyo, Japan Tel: +81 3 3542 1487 Fax: +81 3 3543 0619 Email: info@ipfjapan.jp Internet: www.ipfjapan.jp

17 - 19 NOVEMBER JEC Asia Venue: Suntec, Singapore Tel: +33 1 5836 1501 Fax: +33 1 5836 1515 Email: exhibitions@jeccomposites.com Internet: www.jeccomposites.com 19 - 22 NOVEMBER P&R Indonesia Venue: Jakarta International Expo Kemayoran, Indonesia Tel: +6221 2525 320 Fax: +6221 2525 482 Email: wiwiek@pamerindo.com Internet: www.pamerindo.com

2015 5 - 10 FEBRUARY Plastindia Venue: Pragati Maidan, New Delhi, India Tel: +91 22 26832911 Fax:+91 22 26845861 Email: contact@plastindia.org Internet: www.plastindiafoundation.org 10 - 14 MARCH Koplas Venue: KINTEX, Goyang, Korea Tel: +82 (2) 551 0102 Fax: +82 (2) 551 0103 Email: koplas@koplas.com Internet: www.koplas.com 23 - 27 MARCH NPE Venue: Orlando, Florida Tel: +703 259 6132 Email: exhibit@npe.org Internet: www.npe.org 3 - 5 APRIL Plastics Myanmar Venue: TADMADAW, Yangon, Myanmar Tel: +91 79 26469725 Fax: +91 79 26403087 Email: plasticsmyanmar@efipl.in Internet: www.kdclglobal.com 5 - 9 MAY PLAST Venue: Fiera Milano Fairgrounds, Italy Tel: +39 02 8228371 FAX:+39 02 57512490 Email: info@promaplast.org Internet: www.plastonline.org 20 - 23 MAY Chinaplas Venue: China Import & Export Fair Complex, Guangzhou, China Tel: +852 2516 3554 Fax: +852 2516 5024 Email: chinaplas@adsale.com.hk Internet: www.chinaplasonline.com

ADVERTISERS’ ENQUIRIES Check out the Advertisers' page on our website. Information is categorised by the YEAR & DATE of publication for easy reference. For further details, email us at: news@plasticsandrubberasia.com

PRA Digital issue is available ONLINE! www.plasticsandrubberasia.com

INTERNATIONAL OFFICES Publishing Office Postbus 130, 7470 AC Goor, The Netherlands Tel: +31 547 275005 Fax: +31 547 271831 Email: arthur@kenter.nl Contact: Arthur Schavemaker Regional Office SQ9, Block A, Menara Indah, Taman TAR, 68000 Ampang, Selangor, Malaysia Tel: +603 4260 4575 Fax: +603 4260 4576 Email: tej@plasticsandrubberasia.com Contact: Tej Fernandez China & Hong Kong Matchexpo Co. Ltd Room 702, No. 2, Lane 707, Greenland Avenue, Kunshan, Jiangsu, 205300, China Tel: +86 21 3921 8471 Fax: +86 21 60911211#3091 Mobile: +86 18915759645 Email: marketing@matchexpo.com Contact: Bin Li Germany, Benelux, Austria, Switzerland & France Kenter & Co BV Postbus 130, 7470 BV Goor, The Netherlands Tel: +31 547 275005 Fax: +31 547 271831 Email: arthur@kenter.nl Contact: Arthur Schavemaker India Tara Media & Communications SQ 9, Block A, Menara Indah Jalan 9, Taman TAR, 68000 Ampang, Selangor, Malaysia Tel: +603 4260 4575 Fax: +603 4260 4576 Email: winston@taramedia.com.my Contact: Winston Fernandez Italy, Spain & Portugal MediaPoint & Communications Srl Corte Lambruschini, Corso Buenos Aires, 8, Vo Piano - Interno 9, 16129 Genova, Italy Tel: +39 010 570 4948 Fax: +39 010 553 0088 Email: info@mediapointsrl.it Contact: Fabio Potesta Philippines U-10A C-11, Fordham Bldg. Cambridge Village Condominium Eastbank Road, Brgy San Andres, Pasig City 1900, Metro Manila, Philippines Mobile: +63 927 3636191 Email: gel@plasticsandrubberasia.com Contact: Gel Buan Malaysia, Indonesia, Singapore, Thailand, Australia, New Zealand & Korea ACESAP Marketing Services 171 Tembeling Road, Singapore 423680 Tel: +65 6345 7368 Email: acesap@gmail.com Contact: Anthony Chan Taiwan 宗久實業有限公司 Worldwide Services 11F-B, No.540 Sec.1, Wen Hsin Rd., Taichung, Taiwan Tel: +886 4 23251784 Fax: +886 4 23252967 Email: sales@acw.com.tw Contact: Robert Yu 游宗敏 USA & Canada Plastics Media International P. O. Box 44, Greenlawn, New York 117430, USA Tel: +1 631 673 3199 Fax: +1 631 673 0072 Email: charlotte@4m-media.com website: www.plastics-media.com Contact: Charlotte Alexandra

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PRA August 2014 Edition  

PRA August 2014 Edition

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