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March 26, 2007

19 Min Read
E-weekly News Briefs March 19-23


TricorBraun buys up I-PAK

Rigid packaging processor TricorBraun (St. Louis, MO) has acquired Independent Packaging Inc. (I-PAK; Quincy, MA), effective March 9. In addition to glass jars, bottles, jugs, and vials, as well as steel and fiber drums, I-PAK extrusion blowmolds drums, bottles, jars, pails, closures, and thin-wall containers. The company’s 200,000-sq-ft plant serves customers in the food, chemical, paint, pharmaceutical, industrial, and seafood industries.

In 2005, TricorBraun added toolmaking with the acquisition of blowmold manufacturer Cal-West Tool & Mold (Corona, CA). Cal-West also offered customers design services, and to help indicate the expanded reach of the newly joined business, TricorBraun Design Group changed its name to TricorBraun Design & Engineering (see e-Weekly August, 19, 2005 for initial report).


Tangible Express buys ten 3D Systems prototyping machines

3D Systems Corp. (Rock Hill, SC), a provider of rapid 3D modeling, prototyping and manufacturing equipment, announced that it has received an order for 10 systems from Tangible Express (Springville, UT)). Tangible Express is expanding its capacity with this large systems order to support the recent launch of its Tangible Alliance Program (TAP). This so-called hosted fractional ownership solution enables customers to have access to rapid prototyping and rapid manufacturing capacity without the associated operating, training, maintenance, facilities, and service costs. Tangible Express owns and operates a fleet of systems that includes several Viper Pro SLA and Sinterstation HiQ HS SLS Systems.

The order includes six Viper Pro SLA systems, three Sinterstation HiQ HS SLS Systems, and a Viper SLA system. This purchase expands Tangible Express materials portfolio through additional dedicated machines and materials combinations.

“This order not only creates more available inventory, but it allows us to offer our users a turnaround time unheard of in the industry,” said Alex Linde, president and COO of Tangible Express, which recently announced it was expanding its operations to a new facility to provide enough room for the systems order. The order adds 16 manufacturing platforms of 3D Systems’ latest systems.


ExxonMobil Chemical opens auto tech center in Japan

ExxonMobil Chemical has opened a Polymers Automotive Applications center in Kawasaki, Japan, located at the site of its affiliate company Tonen Kagaku K.K. The center joins nine others globally for ExxonMobil and will support its entire polymers portfolio, including specialty elastomers, thermoplastic vulcanizates, and polypropylene compounds. The operation features testing labs and processing equipment to help clients in material selection, mold design, processing, and testing.

Tonen produces polyethylene films used as separators for rechargeable lithium-ion batteries found in portable electronics, like mobile phones, laptop computers, and digital cameras. On April 26, 2006, Tonen increased film capacity at its Nasu plant by 50% to 25,000 sq m/yr. Also in Japan in 2006, the company boosted halobutyl rubber production by 8500 tonnes/yr at its 50% joint venture in Kashima, Japan. In its last annual report, ExxonMobil reported that chemical sales were up 4% in Asia, with China rising 18%, while overall 2005 prime product sales volume was down 4% compared to a record 2004. The company also announced plans for a second steam cracker and derivative unit in 2006 to supply Asia Pacific and be based at the company’s existing Singapore complex. The company intends to include world-scale polyethylene, polypropylene, and specialty elastomers production.


Dow expands European PUR reach with Hyperlast

Adding the company’s expertise in spray and cast polyurethane (PUR) elastomers to its PUR systems, coatings, adhesives, sealants, elastomers and rigid and flexible foams, pending regulatory approval, Dow Polyurethanes plans to acquire Hyperlast UK and Autothane Ltd. from British Vita (High Peak, England). Hyperlast creates PUR elastomers systems, while Autothane manufactures automotive suspension components.

In addition to the automotive industry, the two companies had clients in the marine, engineering resins, and oil and gas pipeline industries. In PUR, Dow is backward integrated, with capabilities in feedstocks, including propylene oxide, propylene glycol, MDI (methylene diphenyl diisocyanate), TDI (toluene diisocyanate), and polyols.

In 2005, British Vita acquired the PUR system businesses of Synair Corp. (Chattanooga, TN) and Chemicals Innovation Ltd. (Preston, England), integrating both into its Hyperlast PUR system house (see MPW February 2005 First Look for more).


U.S. Senate adds China currency bill to match House’s

U.S. Senators Debbie Stabenow of Michigan and Jim Bunning of Kentucky are cosponsoring a bipartisan companion bill to the U.S. House of Representative proposed legislation to combat currency manipulation. That bill, also cosponsored on a bipartisan basis by Duncan Hunter of California and Tim Ryan of Ohio is called the Fair Currency Act of 2007.

The Society of the Plastics Industry (SPI; Washington DC) has actively lobbied on behalf of legislative efforts to curb currency manipulation by major plastics trading partners like China, saying the deflated currencies exacerbate our growing trade deficit.

“Our trading partners have been allowed to maintain unfair currency practices to the detriment of U.S. manufacturers,” SPI President Bill Carteaux said in a statement. “While China stands out as the trading partner whose exchange-rate practices are causing the most harm to U.S. interests, China is not alone in the use of such policies to sustain strong export growth and stem U.S. imports in to their markets.”

Thus far in 2007, China’s currency, the yuan, continues to strengthen against the U.S. dollar according to X-Rates.com, going from a monthly average in January of 7.7881 yuan to one U.S. dollar, to 7.74982 in February, and 7.74094 through the first half of March. In 2006, it grew stronger against the dollar every month, from 8.06594 in January to 7.82161 by December. In July of 2005, the Chinese government unhinged the yuan from an artificial peg of 8.2765 to the U.S. dollar, purportedly weighting it against a basket of currencies.

SPI recently released two studies characterizing plastics trade between China and the U.S., reporting that the U.S. plastics industry shipped $2.4 billion worth of goods into China in 2005, with resins making up approximately $1.7 billion, while China shipped $7.5 billion back into the U.S. in 2005, with the vast majority, $6.9 billion, coming in the form of plastic products (see e-Weekly March 16 for initial report).


Solvin sells off Ludwigshafen vinyls businesses

After shuttering the facilities in December 2005, vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) supplier Solvin has sold its Ludwigshafen, Germany operations to Trust Chemical Industries (TCI), which will relocate them to Port Said, Egypt. A division of Belgian plastics, chemicals, and pharmaceuticals conglomerate Solvay, Solvin maintains eight large PVC and VCM operations in Europe, spread among Austria, Belgium, England, France, Germany, Italy, and Spain. Solvin was created in 1999, by joining the PVC businesses of BASF and Solvay, with Solvay holding a 75% stake in the joint venture and BASF holding the remaining 25%. The JV has 3 million tonnes of PVC and 35 kt of PVDC capacity, and generated consolidated sales exceeding €1 billion from 2300 employees.

TCI will purchase the 180 kt/yr PVC and 160 kt/yr VCM Ludwigshafen plants from Solvin, pairing them with a 200,000 tonnes/yr caustic soda operation. Solvin hired Industrial Asset Management to find a buyer. Indian PVC pipe manufacturer Chemplast Sanmar Ltd., part of the Sanmar Group, plans to acquire TCI. Sanmar maintains a 25,000-tonnes/yr facility near Chennai, which produces pressure pipes, casings, screen pipes, plumbing, and conduit.


What’s to come? Engel answers

Austrian injection molding machine manufacturer Engel (Schwertberg) invited a handful of academics to its recent European Future Forum Injection Molding Technology to promote increased cooperation between business and science, and to identify challenges and opportunities in the plastics industry. Topics covered included the influence of globalization, ecological aspects, machine technology, control systems and quality assurance, future materials and technologies, and training and R&D cooperation between industry and universities.

According to Engel, ecological aspects in particular will play an important role in future injection molding machine manufacturing. The demand for higher energy efficiency levels, and the question of the availability of raw materials, will be major focuses of research in the next few years. The event also identified scope for developments in plasticizing systems, intelligent machine controls, and virtual quality assurance.

Joining Hans Wobbe, director of technology and production at Engel, and Georg Steinbichler, Engel’s R&D director, were Prof. Peter Eyerer, Fraunhofer Institut Pfinztal; Prof. Ernst Schmachtenberg from the University of Erlangen-Nuremberg; Prof. Peter Karlinger, Fachhochschule Rosenheim; Prof. Johannes Wortberg, University Duisburg-Essen; and Prof. Walter Michaeli of the RWTH Aachen.


Windsor under new ownership

Taylor’s Worldwide LLC sold its Hanau, Germany-based subsidiary, Windsor Kunststofftechnologie GmbH, to U.S. financial investor Francis & Associates LLC. Price was not revealed.

Windsor formerly made injection molding machinery but in the last years has restricted itself on servicing and offering replacement parts for these machines, and marketing its PlugXpress secondary injection unit. According to Windsor, Francis & Associates plans no significant changes in the strategic direction of the company or in its management. Windsor’s recently opened office in Hebron, KY will be expanded. Taylor’s owns injection molding machine manufacturers Sandretto (Grugliasco, Italy) and HPM (Mt. Gilead, OH). Windsor says its new ownership enables it to provide service and replacement for multiple brands without conflict.


Simo software speeds molded parts’ design

Simulation software provider CoreTech System (Hsinchu, Taiwan) released an updated version of its flagship software product for injection molding simulation, Moldex3D R8.1. Moldex3D R8.1 includes new features to help users evaluate and solve potential design problems more efficiently than previously, says the supplier. The newly released eDesign tool helps users quickly evaluate plastic part designs in the earliest stage of product development, allowing part designers to perform a true 3D analysis, using automatic 3D solid mesh generation to work directly from solid CAD model to 3D simulations. eDesign helps to evaluate plastic flow throughout the cavity, optimize gate locations, prevent short shots and weld lines, balance cooling circuit design, minimize cycle time, reduce warpage, and more.

Also new is Flow and Pack analysis that supports a user-specified heat transfer coefficient (HTC) to improve the simulation accuracy for thinwall molding. The HTC value represents the heat transfer between plastic melt and mold wall. The new eDesign enhances the prediction of temperature resolution near melt-mold interface and pressure drop. It benefits the simulations of thin-wall parts, micromolding and optic devices.


3D Systems offers new prototyping material

3D Systems Corp. (Rock Hill, SC), a supplier of rapid prototyping machinery and materials, now offers a new stereolithography (SLS) material, Accura 55 Plastic, that simulates the look and feel of molded acrylonitrile butadiene styrene (ABS).

Example applications could include prototyping of automotive interior components, short-run production parts, electronic components, functional testing, concept and marketing models, and master patterns for urethane casting.


Lenzing, SGL form JV

Lenzing AG (Lenzing, Austria) and SGL Carbon have formed a joint venture covering supply of raw materials needed in the production of carbon fibers used in producing ultra-light plastics composites. The deal foresees the production of a special polyacrylonitrile fiber precursor. SGL Carbon says the JV allows it more flexibility than independently purchasing the precursor. In other news from SGL, it is commercially launching a multi-filament carbon fiber as part of an alliance with Mitsubishi Rayon (Tokyo, Japan). Compared to competitive low-filament fibers on the market, these carbon fibers for the composite industry are produced in a more cost-effective manner, says a company spokesman.

The company’s U.S.-subsidiary, HITCO Carbon Composites, has received Gold level Preferred Supplier Certification from aircraft maker The Boeing Co. (Chicago, IL). The supplier award is given to vendors based on 100% quality and delivery performance during the previous year. HITCO supplies carbon fiber composite materials for Boeing’s C17 Globemaster military jet and for civilian planes including the 767.


Briefs

Mobile phone handset designer Innocom (Santa Monica, CA) has acquired a 71.5% interest in Chinese molder/moldmaker Superior Precision Engineering Co. Ltd. (SPE) in an effort to shorten lead times, lower costs, and mitigate the intellectual property infringement risks that can come with dealing with third-party tool suppliers. Innocom reports that right now, tooling design and fabrication take eight to 10 weeks, and it feels SPE will help reduce that by 33%.

Injection molder Donnelly Custom Manufacturing Co. (Alexandria, MN) has publicized its efforts to help Scotsman Ice Systems’ recent commercial introduction of its Prodigy energy-efficient ice machines. Donnelly manages 40 parts for Scotsman''s ice-cube machine, requiring it to manage construction of 40 new molds sourced in China.

“Projects like this demonstrate the real value in our involvement early in the design process,” said Ron Kirscht, president of Donnelly. “By working with Scotsman from the beginning, the Prodigy made it to market quickly and with the same high-quality and competitive cost that Scotsman has enjoyed throughout our 15-plus years of working together.”

European plastics suppliers trade group PlasticsEurope (Brussels), in cooperation with the Umicore integrated metals smelter and the European Flame Retardant Assn. (EFRA), announced that testing has proven that recycling and recovery in metal smelters of waste plastics with brominated flame retardants meets all environmental emissions requirements.

A full-scale trial to assess the technical feasibility of treating mixed WEEE materials with high plastics content in an integrated metal smelter was completed. Results confirm that integrated metal smelters represent an appropriate recycling route for WEEE materials as precious metals can be recovered and recycled and the plastic content can serve as an energy source and reducing agent.

Capsnap Europe (Kremsmunster, Austria), the joint venture between Portola Packaging and Greiner Packaging, is relocating 5-gal polycarbonate bottle blowmolding operations from Peterlee, England to Nungannon, Northern Ireland. The containers will be processed by Wilsanco, a member of the Greiner group. Up to now Capsnap has manufactured 5-gal extruded bottles for the British and Irish markets at the English site of Sotralentz.

German masterbatcher and compounder Grafe Group (Blankenheim) now offers Biocolen-brand biodegradable color masterbatches as granules, which it claims achieve the same colors and physical properties as standard color masterbatches. The supplier anticipates demand from processors of biodegradable plastics. Tests have shown that film colored with the new masterbatch degrades in about two weeks with no residue. Biocolen is based on colorants extracted from plants.

Serbian polyethylene producer HIP Petrochemia (Belgrade) plans to shut down HDPE operations in September 2008 of its 63,000 tonnes/yr capacity plant in order to debottleneck the facility and raise output to 90,000 tonnes/yr.

Engineering resins producer Bayer MaterialScience (Leverkusen, Germany) invested €350 million in R&D last year. About 90% of the total was intended to benefit new developments and projects of the company’s New Business area.

Precision Technical Sales LLC has been appointed manufacturer’s representative for Trumpf (Farmington, CT) laser-marking products in New York, New Jersey, Pennsylvania, Delaware, Maryland, and Washington DC.

Hyperform HPN20E nucleating agent for polyethylene (PE) applications from additives producer Milliken (Spartanburg, SC) has been granted food-contact notification when used in polyolefins. The company says this classification permits expanded functionality in PE films and packaging.

The Internet platform Material Data Center from M-Base Engineering + Software (Aachen, Germany) has been expanded with a new feature, a unit converter. It allows conversions between important units for various technical purposes such as length, area, space, power, pressure, and temperature. This addition is available without costs for registered users of the Material Data Center at www.materialdatacenter.com.

According to figures presented by TecPart, the technical plastics parts sector of Germany’s plastics processor association GKV (Frankfurt), Europe’s injection molding industry together with mold and tool builders employs 1.5 million people and annually generates €150 billion in turnover, making this a key industry for the continent. Despite low-cost outsourcing, Western Europe still sustains a key role in this industry, says TecPart director G. Wilhelm Crößmann.

Resins and additives manufacturer BASF (Ludwigshafen, Germany) has developed a new method, SEEbalance, for assessing sustainability. It looks at the social implications of products and attempts to measure and manage the impact of costs and environment on future life.

In advance of its June 25 introduction of regional plastics contracts for Europe, North America, and Asia, as well as additional prompt dates to allow a kind of spot pricing, the London Metal Exchange (LME) will participate in a number of conferences, offering a pricing review, analysis presentation, and a half-day plastics futures trading hedging workshop. The LME’s itinerary includes presentations at the Third Asian Polymers Conference (Shanghai; April 16-17); Fourth World Olefins Conference (Antwerp; May 22-23); and 25th Annual Petrochemicals Conference (Houston; Oct. 15).

Machining center supplier Makino (Mason, OH) has appointed Price Equipment Co. (Monroe, NC) as a dealer for its electrical discharge machining (EDM) and electrode manufacturing equipment in the Carolinas and Virginia. Price has nearly 30 years of experience in EDM sales and recently opened an 8000-sq-ft tech center in Monroe. Makino has recently added sales representation in eastern Pennsylvania and New England via EDM Sales & Supplies and western Pennsylvania by way of Perseo.

Robotics supplier Staübli Corp. (Duncan, SC) has received cUL listings for its TX Series robotic line, including 6-axis robotic arms and several versions of the CS8 controls platform. The RS SCARA will reportedly be listed soon. The certification means the robotic arms and controllers are in compliance with Canadian and U.S. requirements listed under UL 1740, relating to electric shock and personal injury. The company makes robots with between four and six axes, with payloads ranging from 0.5 to 230 kg and reach from 220 to 3200 mm.

ERP and CRM software supplier M2M Holdings Inc. has changed its name to Consona Corp., reportedly playing off the word consonance. M2M was formed in 2003 following the purchase of Made2Manage, and since then, the company has added nine ERP and CRM providers, more than tripling its size.

The Society of Plastics Engineers (SPE; Brookfield, CT) Automotive Division is currently seeking nominations for its three executive awards—Lifetime Achievement, Executive Leadership, and Special Recognition—which are delivered during the SPE Innovation Awards Gala, held annually in Detroit in the first two weeks in November. For more information, go to www.speautomotive.com.

Akzo Nobel (Arnhem, Netherlands) reports only having one more divestment to make before finalizing its chemicals portfolio strategic realignment, after selling its Akcros Chemicals PVC business to England’s GIL Investments. As part of the deal, GIL receives Akzo’s sites in Eccles, England and New Brunswick, NJ, which employ 160. Akzo will still operate two smaller PVC sites in Greiz, Germany and Itupeva, Brazil, providing toll processing to the new owner. The company’s PVC additives range includes stabilizers, biocides, and bonding agents.


Names in the News

Extrusion blowmolding machinery manufacturer Graham Engineering (York, PA) announced that Scott Howland has joined the firm as sales director for the Americas. Howland brings to the company more than 20 years of sales experience in the blowmolding industry, most recently as sales manager for MC Molds (Williamston, MI). Howland is relocating to York.

Promotions at Graham went out to Frank Kritzer, as the firm’s new director of sales engineering and customer support; and Shannon Carroll as manager of sales and marketing administration. “These three appointments represent a major move forward for Graham Engineering,” notes David Yenor, VP of global business development. “Both Frank and Shannon are Graham veterans who will bring a lot of insider knowledge to their new roles. As for Scott, he knows the blowmolding market inside and out and will bring a lot of energy to our sales efforts.”

Liquid colorant and masterbatch supplier ColorMatrix (Cleveland, OH) has added expertise from the processor ranks, with John Bombace and Kyle Clark joining its engineering team.

John Bombace has spent the last nine years of his career with Coca-Cola where he was responsible for vertical integration of beverage bottle manufacturing into European and Australasian operations, plant layouts and design and systems engineering, new equipment start-ups and commissioning and quality control and maintenance and operation training. Prior to that, he worked for Southeastern Container Inc., where he was responsible for plant engineering, injection molding and blowmolding operations. He started his career with Owens-Illinois’ blowmolding operations.

Kyle Clark comes to ColorMatrix after a 16-years career with Amcor PET. His areas of responsibility included: process optimization, process documentation, overall injection molding efficiencies and scrap reduction.

As part of the company’s “transformational growth strategy”, Dow Chemical Co. (Midland, MI) has reconfigured its leadership structure, forming a five-person executive leadership committee, which will initially be tasked with defining Dow’s strategic direction and prioritizing the investment agenda, among other missions. The committee includes Geoffrey Merszei, executive VP and CFO; Romeo Kreinberg, executive VP Performance Businesses; Heinz Haller, senior VP Strategic Development and New Ventures; and Mike Gambrell, executive VP Basics Business. In addition, the company was redefined into eight distinct groups, six of which are new, including basic plastics; basic chemicals; polyurethanes; designed polymers and latex; epoxy and intermediates; specialty chemicals; specialty plastics; Dow agrosciences; and hydrocarbons and energy.

Philipp Geisser has been named technology director at auxiliary equipment manufacturer HB-Therm, part of Grossenbacher Apparatebau (St. Gallen, Switzerland).

Mike Swartzlander has been named VP and managing director of polymer distribution Ashland’s India operations. He previously served as VP and general manager of the company’s Casting Solutions business.

North Coast Composites (Cleveland, OH), a composite parts processor serving the aerospace, transportation, and other high-performance industries, announced the appointment of Gerald Sutton as vice president of business development. Sutton has over 28 years of composites experience.


Weekly futures activity from LME

Futures trading of linear low-density polyethylene (LLDPE) and polypropylene (PP) on the London Metal Exchange (LME) for the week of March 12-16 saw a low price for LLDPE of $1135/tonne set on Monday, March 12, and Tuesday, March 13, for April buyers. LLDPE’s high of $1180/tonne was reached on Wednesday, March 14, for June sellers.

For PP, a low price of $1130/tonne was reached on Friday, March 16, for April through June buyers. The high of $1170/tonne was reached on Wednesday, March 14 for April through June sellers.

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