Arkansas' legislature is taking a different approach to polystyrene foam litter problems. Instead of banning the material, like some communities in California, it's looking at recycling it.

This report from the Arkansas News Bureau indicates that a House committee passed a PS recycling bill 11-3 yesterday. Now it goes to the full house, so it's still several steps away from becoming law.

The story doesn't mention any plastics industry reaction to the bill, but it does note that some waste industry representives oppose the measure. Supporters include the state Department of Environmental Quality and the Sierra Club of Arkansas.

If food-service product suppliers in California had a chance to support a bill like this, instead of facing the bans they do now, I think they'd jump at the opportunity. It will be interesting to see how suppliers in Arkansas react.

Apple Computer Inc. was granted a patent today for an interesting-looking two-shot injection molding process for making an electronic device housing.

A report on the Mac News Network about the patent speculates that Apple might use the technique to mold future iPod or Mac products. "Although seemingly dry, the patent (originally filed in August 2005) effectively refers to the technique used in Microsoft's Zune player to create its distinctive glowing border effect, creating two differently colored edges to a single plastic shell."

The patent itself doesn't make for scintillating reading, but molders that make electronics housings and similar products might want to take a look.

What is it about the plastics industry that seems to attract scammers and ne'er-do-wells?

The Chicago Tribune today has a story about Matt Goldstein, an alleged scammer who is accused of cheating some women out of at least $24,000 -- and maybe much more.

Goldstein, who claimed to be Success magazine's "Achiever of the Year" (there's a copy of the bogus cover on the Tribune's Web site), also claimed to be the wealthy chief executive officer of a California plastics company. (I checked our archives and was relieved that we've apparently never written about his imaginary company)

Let me emphasize that Goldstein hasn't been convicted of anything -- on Thursday he was charged by the Cook County state's attorney's office with one count of deceptive practice for allegedly cashing $16,000 in checks he wrote from a closed account. The rest of the story is based on stories from other women who claim he has bilked them, but no additional charges are pending yet.

It seems like we've had more than our share of stories about plastics-connected scams over the years. I think we do the industry a service by reporting many of them, because a con artist who robs investors in one city often moves to another town and tries the same thing. We've definitely saved some investors from losing their shirts over the years. But greed guarantees that we'll never see the end of this problem.

First lady Laura Bush touched on the plastic marine debris issue in remarks yesterday at the Hawaiian Monk Seal Captive Care Project on Midway Atoll.

In response to the question, "What can people back home, do you think, do? What can people at home do to help ensure that these animals have a safe habitat?" she replied:

Well, I hope people will study up about the Northwestern Hawaiian Islands, about this very important part of our country and the new monument here that protects the Northwestern Hawaiian Islands.

But I also hope people will take from this that we need to really pay attention to how we recycle plastic, and to pay attention to everything that you consume at home that's plastic, and how you get rid of it, and just make sure it doesn't someday end up here on one of these islands, or on any other coast, or in the stomach of one of these marine animals.

Plastic marine debris is prominent in my thoughts right now, after hearing Stephanie Barger's comments at our Plastics News Executive Forum in San Diego earlier this week. Barger, founder of the Costa Mesa, Calif.-based Earth Resource Foundation, urged plastics industry leaders in attendance to take this issue seriously, and I think many took her comments to heart.

Seeing Laura Bush echo Stephanie Barger is additional proof that this isn't a fringe issue -- despite what a substantial number of people participating in our current Web poll on the topic seem to believe.

A reader has suggested asking for feedback from blog readers about their experiences doing business in China. Done right, outsourcing manufacturing offshore creates some real potential for cost savings. But we've also heard anecdotally about how the "savings" sometimes can be erased by higher costs for telecommunications, travel, lead-time delays, quality issues, reworks and shipping expenses.

Have any companies moved business overseas and found that the decision cost them money? Do you have firsthand experience?

The reader who suggested this item knows second-hand about an OEM that "lost tens of thousands of dollars every time a team had to visit China to straighten out problems. It would take weeks to ship first runs, communicate errors and changes and then get more part samples. Ultimately there would be one or more visits per project. Vendors changing designs, substituting parts, and changing specs were common. Not to mention how these vendors would then mold parts for local sale."

The amazing part of the story is that the OEM was approving projects without taking any of these extra costs into account. This particular company, a well known plastics processor, did not have sophisticated MRP (material requirements planning) rules for new products, and never really audited the real costs of moving production offshore.

I look forward to reading about your own experiences in our "comments" section.

The U.S. Chemical Safety Board today issued its report on the April 23, 2004, explosion and fire at Formosa Plastics Corp.'s plant in Illiopolis Ill. Five workers died and three more were seriously injured in the accident.

The report blames human error, but is critical of the company for not doing more to prevent the accident.

The CSB found that both Formosa and Borden Chemical, the company from whom Formosa purchased the plant in 2002, were aware of the possibility of serious consequences of an inadvertent release of chemicals from an operating PVC reactor. But the investigation determined that the measures both companies took were insufficient to prevent human error or minimize its consequences.

A news release from the agency quotes Chairwoman Carolyn W. Merritt: "People do make mistakes. And that is why it is all the more important for chemical plants to design systems that take into account the possibility of such errors." She added: "This accident occurred because the companies involved did not look closely enough at the potential for catastrophic consequences resulting from human error."

The board recommends that Formosa review the design and operation of all of its U.S. PVC facilities. It also urges Formosa "to ensure chemical processes are designed to minimize the consequences of human error, improve control of safety interlocks, more thoroughly investigate high-risk hazards, and consider all consequences in near-miss investigations. Formosa was also urged to improve emergency planning and conduct periodic drills, emphasizing prompt evacuations."

Safety experts at chemical companies across the country will be taking a close look at this report today, looking for steps they can take to make their plants safer.

CSB is a federal agency charged with investigating industrial chemical accidents. It does not issue citations or fines, but does make safety recommendations to plants, industry organizations, labor groups, and regulatory agencies such as OSHA and EPA.

The Reuters news agency is reporting that Koch Industries Inc. plans to bid for GE Plastics. The report, which quotes "sources close to the process," says Koch is teaming with Blackstone Group.

The story names other bidders, too: Apollo Management, Carlyle Group (teaming up with Texas Pacific Group) and Kohlberg Kravis Roberts & Co. (working with Bain Capital). Many of these companies have other plastics holdings, so it would be interesting to see if, for example, TPG would combine GE Plastics with its existing Kraton business. That's just speculation, of course. But with private equity companies owning so many plastics businesses these days, the possibilities are intriguing.

The Reuters story also says that the bidding teams will receive additional details about GE Plastics' finances by the end of this week. So it doesn't sound like a deal is going to happen in the next week or two.

Koch, which several weeks ago bought Huntsman Corp.'s commodity plastics business, is the second-largest private company in the world, behind Cargill Inc.

Is there a "skills gap" that's hurting U.S. manufacturing? This is an issue that's been on the agenda of many in the plastics industry for as long as I can remember. Sometimes other more pressing problems push it to the back burner. But when you talk to company managers, you can always spark a conversation by asking whether schools are doing an adequate job preparing young people for the workplace.

Recently, a group called the National Assessment Governing Board put out two reports as part of the Nation's Report Card project, which measures the results of our education system.

The National Association of Manufacturers, a Washington-based trade group, took a look at the report and warned that "current achievement scores are disheartening, and act as further evidence of the increasing need to reform our high schools to get the job done. NAM President John Engler said:

We need young people who can adapt to the changing, high-tech workplace. In a modern facility, employees are more likely to be calibrating with a computer than pounding with a hammer. However, the skills needed to compete in a 21st Century workforce are just those that our graduates are having the hardest time achieving – math, reading and science.

Engler's biggest concerns: the average 12th grade reading score was the lowest since 1992, and less than 25 percent of 12th-graders scored at or above the proficient level in math.

It looks like North America is about to have a new No. 1 injection molder. Collins & Aikman Corp. this afternoon announced that it has signed a letter of intent to sell most of its North American plastics business to Cadence Innovation LLC.

This is all automotive, and the deal will be monitored by the U.S. Bankruptcy Court in Detroit, where C&A filed for protection from creditors in May 2005. C&A had said in November that it planned to sell most of its assets.

One reason this deal is interesting is because it will put Cadence CEO Jerry Mosingo back in charge of some C&A operations -- he certainly should be familiar with those assets! The news release announcing the deal emphasizes that it will save jobs.

“This transaction will preserve a significant number of jobs, generate important recoveries for our creditors and represents a significant step toward confirmation of our chapter 11 plan” said John Boken, Collins & Aikman’s Chief Restructuring Officer.

The portion of the Plastics business covered in the [letter of intent] includes nine facilities in the United States, Canada and Mexico, employs approximately 3,500 people and produces products for all major North American automakers.

Is that a good thing? I thought one reason C&A was in bankruptcy was because of all the overcapacity in the North American auto supply chain.

Husky Injection Molding Systems Ltd., the Bolton, Ontario-based injection press and tool manufacturer, announced a few minutes ago that the company is looking for a buyer. The decision is a result of founder Robert Schad's decision to consider a sale of his shares.

This is a big deal in the plastics machinery world, so I'll include the whole release here:

Husky Injection Molding Systems Ltd. ("Husky") today announced that it has initiated a review which will include the possibility of a sale of part or all of the Company's shares or a strategic combination with another business. This review is based on Robert Schad's decision to consider a sale of his shares. However, there is no assurance that this review will result in any specific strategic or financial transaction. The Company has engaged Citigroup Global Markets as its financial advisor.

"Over the past decade, we have made substantial investments to develop our leading technology platform, expand our markets and distribution network, improve our operations, and build a strong management team," said Robert Schad, Husky's founder, Chairman of the Board and largest shareholder. "While Husky's competitive position has become stronger as a result, we do not believe that this position is reflected in our current market valuation."

"Husky has reached an important point in its evolution," said John Galt, President and Chief Executive Officer. "At this point it makes sense for us to consider Husky's future, and to do so on the basis of a strong position in the market. I am therefore in full support of this initiative, as is Husky's Board."

Husky Injection Molding Systems Ltd. (www.husky.ca) is a leading global supplier of injection molding equipment and services to the plastics industry. The Company has more than 40 service and sales offices, supporting customers in more than 100 countries. Husky's manufacturing facilities are located in Canada, the United States, Luxembourg and China. The Company's common shares (HKY) are listed on the Toronto Stock Exchange.

Husky will hold a teleconference this afternoon to release its second quarter results, so perhaps they'll have more details later today.

With all the plastics businesses for sale right now, it can get hard to keep track of everything. So here's a reminder about a pretty big pending sale, courtesy of London's Financial Times newspaper.

Their news: Owens-Illinois Inc. is getting close to selling its plastics operations. According to the report, Perrysburg, Ohio-based O-I will receive its first round of bids next week. The story quotes the ever-popular "sources close to the situation."

Candidates to buy the unit include Rexam plc, MeadWestvaco Corp., Apollo Management LP (owner of Berry Plastics Corp.) and Blackstone Group, according to the report. (We keep hearing all the same names ... but maybe we're just talking to the same "sources.")

Plastics are no longer a core asset for O-I, which wants to focus on its glass business. But the company's plastics operations are substantial: 12 North American plants that do injection molding and blow molding, plus assets in Brazil, Hungary, Singapore and Malaysia. The unit makes packaging and specialty closures for companies in the pharmaceutical, health-care, food and beverage, household, chemical and personal-care industries, and generates annual sales of $770 million.

The FT speculates that a buyer might pay $1.75 billion for the business.

We wrote about O-I's plans back in January, but since they announced it the same week that news leaked of of General Electric Co.'s plan to sell GE Plastics, you might have missed it.

San Francisco's board of supervisors may extend their proposed plastic bag ban law to include pharmacies and smaller retailers.

According to this report from the San Francisco Examiner, the board has delayed a vote on the previous proposal, which would require grocery stores that do more than $2 million in sales a year to only use bags made of recyclable paper, compostable plastic or reusable bags.

But the idea isn't dead. Instead, a vote was delayed for two weeks so it can be amended to apply to more stores. The new language applies to all establishments with 5,000 square feet of retail space and a pharmacy license.

“I think we should be consistent. I think that by going directly after grocery markets, we weren’t showing consistency,” said Supervisor Michela Alioto-Pier.

I'm afraid that the "compostable plastic" provision in this law has the potential to create some real problems for the city. Although supervisors are aware of the drawbacks, some are set on moving ahead, regardless of the scientific arguments or results of grocers' plastic bag recycling efforts, which were instituted to avoid a bag ban or tax.

Plastic bags have become a scapegoat for litter, recycling and marine debris problems. It doesn't look like consumers in San Francisco will come to their defense.

I'm a competitive person, so I like to see Plastics News get every story that's important to our readers, and to be first and best with the coverage. That said, I also like to see plastics companies featured by their local newspapers and TV stations.

It's important to let the community know what your company does and how many people it employs. You can generate some goodwill and understanding with local politicians and community leaders, and generate some pride from your work force. I found three nice examples of these types of stories this weekend:

Hoffer Plastics Corp. in South Elgin, Ill., was the subject of this nice profile on the Elgin Courier News' Web site. Among other things, the story does a good job explaining, in just a few words, what a custom injection molder does:

[CEO] Bill Hoffer says the company often acts as a "manufacturing arm" for many companies, who use Hoffer to mold and assemble components for specific applications.

The Tinley Park, Ill., Daily Southtown also had an interesting feature, this one on Florida Plastics International Inc. in Evergreen Park, Ill. I like how this story explains the company name (it originally was a Midwest distributor for a Florida company that molded small plastic letters. The current CEO's father bought the plant in 1965, but kept the name).

Florida Plastics' claim to fame is that it is the sole U.S. manufacturer of interior and exterior menu boards for McDonald's restaurants. CEO William W. Keyser tells the story:

We were in the process of selling white plastic letters to a cabinet shop in Streamwood that was making the first McDonald's menu board. The company didn't want to make the boards anymore, only the cases. My father learned of that and approached McDonald's directly. After many months of back and forth and looking at designs and prototyping, he got the account. That's when we really turned the corner. I was 15 years old at the time. ... Here we were going to make a sign for this little hamburger chain called McDonald's. At the time -- in 1968 -- they had 500 restaurants. In the early '70s, they started building 500 to 600 new restaurants a year. We went from a company with three full-time employees to one with 75.

Must have been nice to get in on the ground floor with McDonald's!

My final example is a feature from the St. Paul, Minn., Pioneer Press about profile extruder Intek Plastics Inc. in Hastings, Minn. Their angle: the company has introduced a flexible plastic cover for hockey rinks that can help minimize injuries when players are checked into the boards. The NHL plans to install Intek's product in all of their rinks by the start of next season.

I like it when I learn something about a company that I wouldn't know otherwise. This story has a great example: "Intek is owned by the descendants of John S. Campbell, best-known as the founder of the Malt-O-Meal Co., which is still owned by the Campbell family." So this family is in both the window profile and breakfast cereal businesses. What an unusual combination!

A warning first: don't click the link if you have a weak stomach.

Holland Colours Americas Inc. in Richmond, Ind., is featured in this in unusual story from the Richmond Palladium-Item, courtesy of the Associated Press. It tells the story (with some interesting photos!) of Holland's role in helping to create prosthetic fingers for Richard Kinon, a South Carolina carpenter who lost two digits in an industrial accident.

Holland got to use its special color-matching skills to come up with prosthetics with a very realistic matching skin tone. The coloring was hard to deal with, Kinon told the newspaper. To help get it just right, a silicone manufacturing company put him in touch with Amy Brattain, Holland Colours’ industry manager.

Initially, the Holland Colours team thought they could do the skin pigment match using a photograph.

They quickly realized that just like the custom colors for customers who send along a sample of what they’re seeking to match, they needed to match Kinon’s coloring in person.

The company paid for his flight, hotel and meals for a three-day visit so he could work with the research and development team.

“Everybody was very excited about helping Richard meet his goal,” Brattain said.

The effort was a success, as you can see from the photographs. (Admit it, you clicked on the link just to see them!)

Berry Plastics Group Inc. is merging with Covalence Specialty Materials Holding Corp. (the former Tyco Plastics business), the companies announced today.

This sounds like a pretty big deal, but keep in mind that both already are majority owned by the same parent company, private equity firm Apollo Management LP. So the biggest change, apparently, will be that Ira Boots, chairman and CEO of Berry, and Brent Beeler, Berry's chief operating officer, now will have responsibility for managing Covalence, too.

"The combined company will benefit from enhanced diversity of end-markets, customers and products, and the increased scale will make Berry one of the largest plastic packaging companies in the world, while at the same time deliberating our balance sheet," Boots said in a news release.

Kip Smith, Covalence's CEO, will remain with the combined company and run the Covalence business.

Meantime, Covalence reported its first quarter financials today. The company lost $21.8 million on sales of $366.7 million for the three months ended Dec. 29. "Net revenue for the three months ended December 29, 2006 was impacted by lower volumes driven by a mild 2006 hurricane season, weak housing starts and continued efforts by customers to minimize inventories during a period of softening polyethylene resin pricing," the company said in its release.

Interested in what industrial designers think about plastics? Check out the "plastics primer" posted a few days ago on core77.com, a Web site that serves the global design community.

The column is authored by Carl Alviani, an industrial designer at FlatHED in Portland, Ore. It touches on the history of plastics, some significant applications, and the differences among polymers. The column also includes lots of useful links. Although it's intended for designers, the primer has plenty of information that would be useful for folks in the plastics industry. Plus, Alviani reaches some interesting conclusions on how designers should take advantage of the unique nature of different plastics, rather than using them to try to mimic traditional materials.

Product design today frequently means plastics design, and there are a number of compelling reasons to design plastics in a way that distances them from the "cheap plastic" perception. From a marketing standpoint, consumers are wary of objects that look like inferior imitations, and from a sustainability perspective, the less disposable an object feels, the better. The encouraging message for designers is that there is a wide array of ways to achieve this distance. Revealing polymers for what they are is key, as is educating the consumer to appreciate what a perfectly chosen material they hold in their hand, either through marketing or through design cues.

He adds:

Perhaps it's going too far to advocate a total embargo on imitative finishes on polymers, but a limited one seems well in order. Just as building a brick house and then painting it to look like wood is absurd, so too with many consumer goods; especially those, like point-and-shoot cameras, that are guaranteed to eventually be caught out. Given the thousands of alternative ways to allow plastics their own unique aesthetic, and the inexorable forces pushing consumers towards their acceptance, designers are running out of excuses for playing dumb.

Let me relate this to a common design-related complaint about plastics. In many stories that I see about new car and truck models, the reviewers complain about the interiors looking "too plastic," or using "cheap plastics." Is it possible that a radical change in how car designers use plastic could take away this negative perception, and perhaps even turn the negative into a selling point?

Composites are changing the commercial aircraft industry at an incredible pace, and Boeing Co. is leading the charge with its 787 Dreamliner. The Seattle (Wash) Times has been doing an excellent job covering the trend, most recently with this profile of Phil Lathrop, a composites expert who leads a trouble-shooting team that's working on what the story calls "the world's first airliner built largely of plastic."

"I got lucky. I picked composites 28 years ago," Lathrop told the newspaper. "This is a composite guy's dream."

This week the company will celebrate the completion of the first 787 tailfin. The link includes a photo of the fin, which will be assembled at Boeing's Frederickson, Wash., plant tomorrow. The leading edge of the fin was delivered complete from China, according to the story.

Lathrop's five-man classic-rock band, named The Composites (of course), will play at a ceremony celebrating the milestone.

The story points out that the University of Washington and some Seattle-area community colleges are working with Boeing to offer composites-materials training. Also, starting next month, the company and the Machinists union will start a 4-year apprenticeship program to train lead-composites technicians.

This looks like a real growth market. And with fuel prices and conservation getting so much attention right now, I think a lot of people getting training in aerospace composites might soon be in demand from the automotive sector.

I like to highlight plastics companies that win significant local awards, and here's one that happens to be very local for me: Polymer Packaging Inc. in North Canton, Ohio, was named Stark County Business of the Year by the Canton Regional Chamber of Commerce, according to this story in the Akron Beacon Journal.

Criteria for this award include "excellence in employment growth, operations expansion, capital investments, customer service, innovation, community service and responsiveness to challenge," according to the story. The interesting thing I learned about Polymer Packaging: last year it helped develop a polyethylene pouch that can filter water, making it potable for use in disaster relief and military operations.

Last year we wrote about the company's plans to build a new plant in Massillon, Ohio. Congratulations!

Santa Monica, Calif.-based columnist and author Thomas D. Elias was aiming at Gov. Arnold Schwarzenegger in this Los Angeles Daily News piece. But, in the process, Elias ended up hitting the plastic pipe sector instead.

The column charges that Schwarzenegger appointed members to the California Building Standards Commission who are friendly to plastics pipe interests as payback for contributions to his campaign. The result: the commission approved expanded use of chlorinated PVC pipe in California.

Elias writes: "Schwarzenegger has taken more than $15.9 million from builders and developers who will benefit from this change made by his appointees. To some, that makes this one smell a little wrong." And he throws in an implication that CPVC exposes consumers to "possible danger from leaching of toxics or cancer-causing chemicals."

Note to Elias: the environmental issue was thoroughly debated, and if you want a better handle on which other special interests were involved in the CPVC debate in California, you might want to read this editorial from the San Diego Union-Tribune.

I agree that campaign dollars influence public policy. There's a pay-to-play mentality in all the statehouses in America that offers the opportunity for what I'll call legal corruption. But while it may be legal, it's still ugly. Elias is doing a public service by shining a light on the problem -- but a disservice to plastic pipe makers by implying that, in this case, the decision did not have obvious merit to nearly all California consumers.

Dow Chemical Co. has been in the spotlight the past few weeks, since the company has been the subject of rumors that it is about to do a major deal with India's Reliance Industries Ltd.

I've watched as the story has appeared to take on more credibility almost every day. It started with daily updates from the financial press in India and Britain (most of the stories not attributed to any named sources). Then, as Dow's stock price began to jump as a result of the rumors, the financial press in the United States started to take note.

Late today, the Reuters news agency picked up the story, and it seems to put it in the proper perspective.

Analysts said Dow is likely to split off the basic chemicals and plastics business as part of what it calls its "asset light" strategy, which would give it a more nimble and higher-margin profile focusing on specialty chemicals.

"This is the time; there's so much pressure," said Hassan Ahmed, an analyst with HSBC. "So Dow management has a gun to their head to do something."

Dow said it is involved in many different negotiations but would not comment on any specific talks.

"Right now we are examining more than 60 potential (merger and acquisition) deals," said Chris Huntley, a Dow spokesman.

"Joint ventures are at the heart of our asset-light agenda," he added. "We are continually talking to all manner of companies, big and small, as we assess the value to Dow of those companies."

We're covering changes at Dow this week too, concentrating on the plastic-specific facts, but folding in a mention of the Reliance rumors.

Reliance seems to want to make a big splash outside India (the company also has been rumored to have an interest in GE Plastics. A deal with Dow would fit the bill. Is a purchase or major joint venture in the works? We might know very soon.

Our sister paper Crain's Detroit Business has a rare interview with Carl Icahn in today's issue, in which he answers the question, why does a billionaire want to buy an automotive supplier?

"If you look at my history, I've done this all of my life. You buy companies that are not in favor," Icahn said in an interview with Crain's Detroit Business on Friday. "You go against the emotion. You go against the tide. You don't go with the crowd, you go against it."

Lear Corp. on Feb. 9 agreed to a $5.3 billion buyout from New York-based American Real Estate Partners LP, a company affiliated with Icahn. Icahn explains in the interview that the idea of a buyout came up in a dinner meeting in January with Lear Chairman and CEO Bob Rossiter.

"Bob and I were talking about his vision for the company, and he said it's hard to maintain a long-term focus in volatile and difficult market conditions, because if you stumble and the stock goes down even in the short term, your customers and suppliers start to worry," Icahn said. "So then I suggested "Why don't you think of taking it private?' And he said, "Let's explore it.' "

Icahn's prescription for Lear: to cut costs while "continuing to invest in new products, technology and plants."

The Lear deal isn't guaranteed -- some investors believe Icahn's offer is undervalued. But it would be surprising if someone stepped up with a more lucrative offer.

Bloomberg is reporting today that Cinven Ltd. may decide to sell Montabaur, Germany-based sheet manufacturer Klockner Pentaplast Group. This is another one of those stories that doesn't quote anyone on the record from the company. But given Bloomberg's sources in the investment banking community, there's probably something going on (although we know from experience that a lot of deals that get discussed never come to fruition).

The story says a deal could bring about 1.3 billion euros including debt. Cinven will decide soon whether to move ahead with the plan, after talking to potential purchasers.

A sale would allow Cinven to earn a profit more than five years after it originally bought Pentaplast for 925 million euros from investment firm WCM Beteiligungs-und Grundbesitz AG. Since then, Cinven has tried to cut costs by shutting a plant in the Netherlands and expanded into Asia to boost profit.

Klockner Pentaplast also announced a few weeks ago that it sold some flexible packaging plants in Germany and Finland to Wihuri Group's Wipak unit.

Klockner is a global company, but its operations in North America ranked 14th in our most recent survey of North American film and sheet manufacturers.

Remember "The Gates Project," the big outdoor art display in New York's Central Park by artists Christo and Jeanne-Claude? Back in the winter of 2005, the project got lots of headlines -- it covered 26 miles of walkways, with saffron-colored gates and draperies brightening the city's gray winter exterior. Many news stories erroneously said the gates were made of steel, but actually they were PVC, with components made of high-impact polystyrene, polypropylene and nylon.

The project may soon be in the news again, as Nazareth, Pa.-based Nicos Polymers & Grinding Inc. has been nominated to receive the Innovative Deconstruction Project award from the Building Materials Reuse Association for its role in recycling "The Gates." According to a news release from Nicos, "The nominators believe that design professionals, building owners and community members at-large stand to benefit and learn from demonstration projects such as `The Gates,' which was a socially responsible work of art."

The award will be announced May 14.

Although spring officially is here, it's still a treat to see a bit of color (at least here in still-dreary Akron, Ohio). So check out the slide show and video of "The Gates" on Nicos' Web site.

Alpha Packaging Inc., a St. Louis-based blow molder, has joined the blog trend with a nice Web site called Alpha's "Message in a Bottle." The site has been live since February. The post master is none other than company President Dave Spence.

The blog is hitting some very good topics. The most recent: environmental issues, and how the plastics packaging sector should respond.

It’s the great green way this year as the latest buzzword in packaging becomes “sustainability.” Giant retailers like Wal-Mart/Sam’s Club and grocery store chains seem to be prominently leading the charge toward reducing and recycling packaging worldwide. In addition, sustainable packaging coalitions are springing up spearheaded by large corporations like Nike and Coca Cola. In January, the IoPP Sustainable Packaging Task Group had their first meeting.

For me, someone who deals every day with the realities of running the business, I’m always looking at what we can do to expand, to grow, to produce more bottles. Now, many of us will be challenged with reducing. That means reducing many things, including the amount of shipping pallets and corrugated we use, and the actual material weight of the bottles and jars we make.

Spence adds that he expects "more customers to jump on the sustainability band wagon," and he invites readers to comment on how manufacturers and distributors can adapt to the "sustainable" business model.

This looks like a good blog to bookmark. It will be interesting to see if it generates enough traffic to "sustain" the Web site, and to keep Spence involved.

I didn't realize that today is World Water Day, but the American Chemistry Council shared the news, taking the opportunity to tout the benefits of chlorine chemistry. The news release cites a report that I've seen before, but it's worth featuring:

The American Water Works Association stated in a 2003 report that some 2.2 trillion gallons of water are lost annually in the U.S., primarily as a result of pipe corrosion leaks and breaks.

It's amazing that we waste this much water. It's such a precious resource. But many municipalities, and taxpayers, treat it like it is basically worthless.

Conservatively, though, 2.2 trillion gallons, at the average U.S. municipal cost of $1.50 per 1,000 gallons, works out to $3.3 billion in water wasted annually.

And just imagine what it would be worth if we could save it all, package it in PET and sell it for $1 per bottle out of a vending machine!

Emeryville, Calif., is the newest city to ban polystyrene food service products from local restaurants, according to this story from the Oakland, Calif., Tribune. The city council passed an ordinance on Tuesday. The law says restaurants can only use food containers that are biodegradable or recyclable.

As I've noted before, these anti-PS proposals are catching on in California because of the marine debris issue.

"I think we need to be better environmental stewards and take some measures to protect our resources," said Vice Mayor Ruth Atkin, who proposed the change. "I participated for years in our shoreline cleanups, and the little tiny bits of Styrofoam end up getting stuck in the rocks. It's impossible to collect all that stuff. It gets stuck in the nooks and crannies, and birds ingest them."

Restaurants will have to comply by Jan. 1. Fines will start at $100, and go up to $400 for repeat offenses. Oakland and San Francisco have similar laws on the books.

Bob Canter, president of the Emeryville Chamber of Commerce, made sure all its members were notified of the proposed ban, but has heard nary a word about it, yea or nay.

According to the story, many restaurants in Emeryville already have dropped PS food service products.

I'm not big on bashing lawyers (except in jest), but this does seem a bit like the modern equivalent of chasing ambulances. A plastics processor reader told me that her company got a call from a firm soliciting it to join a class action suit with other users of plastic additives.

She was referred to a Web site called plasticrefund.com that explains who is eligible for the refund. This particular class action suit is the result of an antitrust complaint that dates back to 2005 involving a dozen suppliers of additives. The materials in question include some heat stabilizers and impact modifiers.

The reader told me: "The firm is based out of D.C. with the sole intent to make filing appellate papers easier for the attorney in class action suits. I found it a bit scary to be called on the phone to join in a lawsuit regarding using materials." I agree.

London's Financial Times is reporting that Saudi Basic Industries Corp. is getting ready to bid for GE Plastics, and that the bid will be up to $12 billion. That's a couple of billion higher than what analysts predicted when GE Plastics first went on the block.

According to the report, Sabic is working with Citigroup "to prepare an indicative offer ahead of the first round of the auction in mid-April."

The story also mentions many of the "usual suspects" said to be interested: Blackstone and Koch Industries; Apollo; KKR; Carlyle Group; and Bain Capital. In addition to Koch and Sabic, the other potential strategic buyers are Reliance Industries and Basell, according to the report.

Former Collins & Aikman Corp. CEO David Stockman is accused of securities fraud in an indictment unsealed by federal authorities today. According to a story on Automotive News' Web site, Stockman "is accused of securities fraud for accounting irregularities and incomplete financial disclosure in the months leading up to the bankruptcy filing of Collins & Aikman in May 2005." (I'm linking to the magazine's Web site because you'll need to register on the site to get the full story).

Three other former C&A executives also were indicted: former vice chairman Michael Stepp; former controller David Cosgrove; and Paul Barnaba, former director of financial analysis in the purchasing department.

Automotive News also has a story on the Web, and in its March 26 issue, that says C&A's bankruptcy has cost North American automakers $665 million in loans, price supports and operating subsidies. Some 80 percent of that has been borne by the Big 3.

C&A was the No. 1 injection molder in North America last year, according to our ranking, but the company is in the process of selling its plastics assets.

San Francisco's board of supervisors voted 10-1 Tuesday to ban plastic bags from supermarkets and pharmacies.

The law kicks in in six months, and will require stores to use paper or degradable plastic bags instead.

The San Francisco Chronicle editorialized in favor of the legislation on Tuesday. In part, the column sings the praises of degradable plastics:

The California Grocers Association has put up a vigorous resistance to the regulation, arguing that it would be confusing and costly for consumers. The grocers have been threatening to go back to paper bags if the ordinance passes.

But after hearing the arguments of both sides, it seems to us far more likely that consumers will be demanding the compostable bags once they learn of their advantages over the petroleum-based "throwaway" plastic bags.

Among the superior attributes of the biodegradable bags, which are typically made of starches from potatoes and corn:

-- They're stronger. "The days of double-bagging your loaf of bread would be over," said Supervisor Ross Mirkarimi, author of the compostable bag ordinance.

-- They can go straight into the green recycling bin. They would be clearly marked as biodegradable.

-- They're versatile. Today, far too much food waste heads to the landfill because of what some recycling advocates call the "ick factor." With a biodegradable bag, you could scoop the food scraps into the bag, then, quickly and neatly, plunk it all into the green bin.

-- They're environmentally friendly. Plastic bags are a huge nuisance: they pose a threat to marine life, they gum up recycling machines and they consume landfill space.

Perhaps this is the wave of the future. It will be incumbent on San Francisco to set up an infrastructure to collect and compost these bags, otherwise there's not much advantage to using them.

Who do you think the city will expect to finance such a collection infrastructure?

The Berkshire Eagle in Pittsfield, Mass., has a surprising editorial on its Web site today that is very critical of Saudi Basic Industries Corp.'s reported bid for GE Plastics.

"The purchase of GE Plastics by a Saudi Arabian firm would likely be the worst case scenario for the sale of the company, and not just because this would be another American firm sold to a foreign interest," the column says. "The company's strong ties to the Saudi government, which while nominally anti-terrorist has leaked money to terrorist groups and individuals, should set off alarms about the rumored sale."

More provocative language comes later in the column:

It is safe to say that Sabic and its overlords in Riyadh will have no loyalty to Pittsfield and the 420 employees of GE Plastics here, should the sale go through. GE doesn't necessarily have to sell to Sabic, but if it offers the best bid, stockholders concerned only with their dividends will undoubtedly demand it, and with GE CEO Jeffrey R. Immelt on the record that the Plastics Division is up for sale not because it is unprofitable but because it isn't profitable enough, corporate headquarters won't concern itself with the greater good.

Surely Washington would step in? Not given the complex business ties the Bush family has had with the Saudi ruling family going back to the first President Bush. These links have prompted the Bushes to overlook all manner of Saudi behavior that has enabled the growth of terrorism within its borders. There may be nothing to stop a sale that has many possible ramifications, none of them good.

San Francisco's decision to ban plastic grocery bags is generating headlines in news media around the globe. But the story won't end there. In the next few days, newspapers and TV news crews around the country will be looking at whether their cities should do the same thing.

One place where journalists go for story ideas is