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June 2007 Archives

June 6, 2007

An out-of-the-way trade show

Our team of staff reporters and correspondents around the world have been to some pretty exotic locales. But this occasion might be beyond our ability to cover. The hard-to-cover event: the First Chinese Light Industry Exhibition, scheduled for July 17-19 in Pyongyang, North Korea.

Media in China are touting this as North Korea's first-ever national trade show. China's People's Daily Online says the show will include "several hundred industrial enterprises specializing in appliances, everyday goods, hardware, plastic, and textiles."

The cost of a 3-by-3-meter booth? Just 5,000 RMB, or about $655. But it's too late to sign up -- Nina Ying Sun, one of our Akron staff reporters and our Asia specialist, said the organizer closed the booth sales on May 31.

June 5, 2007

If Wal-Mart is green, who isn't?

I've said before that just about all the people I meet in the plastics industry consider themselves environmentalists. And while that seems perfectly reasonable to everyone in the industry, it probably doesn't make sense to many outsiders who think of plastics as being environmentally harmful.

This column from AlterNet takes the issue one step further and asks, if big business is part of the "environmental movement," what does that mean for mainstream environmentalists?

Look at the evidence: General Electric Co.'s CEO wins a "Courage to Lead" award from the World Resources Institute; Home Depot introduces an Eco Options label for green products; General Motors and ConocoPhillips join a list of supporters for a mandatory ceiling on greenhouse gas emissions.

Is this good news for the environment? The columnist, Phil Mattera, research director of Good Jobs First, implies that it is not.

Today the term "greenwash" is rarely uttered, and differences in positions between corporate giants and mainstream environmental groups are increasingly difficult to discern. Everywhere one looks, enviros and executives have locked arms and are marching together to save the planet. Is this a cause for celebration or dismay?

Answering this question begins with the recognition that companies do not all enter the environmental fold in the same way. Here are some of their different paths:

Defeat. Some companies did not embrace green principles on their own--they were forced to do so after being successfully targeted by aggressive environmental campaigns. Home Depot abandoned the sale of lumber harvested in old-growth forests several years ago after being pummeled by groups such as Rainforest Action Network. Responding to similar campaign pressure, Boise Cascade also agreed to stop sourcing from endangered forests and J.P. Morgan Chase agreed to take environmental impacts into account in its international lending activities. Dell started taking computer recycling seriously only after it was pressed to do so by groups such as the Silicon Valley Toxics Coalition.

Diversion. It is apparent that Wal-Mart is using its newfound green consciousness as a means of diverting public attention away from its dismal record in other areas, especially the treatment of workers. In doing so, it hopes to peel environmentalists away from the broad anti-Wal-Mart movement. BP's emphasis on the environment was no doubt made more urgent by the need to repair an image damaged by allegations that a 2005 refinery fire in Texas that killed 15 people was the fault of management. To varying degrees, many other companies that have jumped on the green bandwagon have sins they want to public to forget.

Opportunism. There is so much hype these days about protecting the environment that many companies are going green simply to earn more green. There are some market moves, such as Toyota's push on hybrids, that also appear to have some environmental legitimacy. Yet there are also instances of sheer opportunism, such as the effort by Nuclear Energy Institute to depict nukes as an environmentally desirable alternative to fossil fuels. Not to mention surreal cases such as the decision by Britain's BAE Systems to develop environmentally friendly munitions, including low-toxin rockets and lead-free bullets.

In other words, the suggestion that the new business environmentalism flows simply from a heightened concern for the planet is far from the truth. Corporations always act in their own self-interest and one way or another are always seeking to maximize profits. It used to be that they had to hide that fact. Today they flaunt it, because there is a widespread notion that eco-friendly policies are totally consistent with cutting costs and fattening the bottom line.

I tend to give the corporations more credit. There are many cases where executives act in the interest of the larger community. Isn't it possible that environmentalism is so ingrained in our culture now that even -- shudder -- Wall Street executives consider themselves "green"?

Should taxpayers invest in plastics?

Here's an interesting column from the Boston Herald that raises a good question: What role should state governments play in supporting and encouraging business growth?

The column, by Jim Stergios, executive director of Pioneer Institute, a nonpartisan think tank, editorializes on a proposal by Massachusetts Gov. Deval Patrick, Senate President Therese Murray and House Speaker Sal DiMasi to invest a billion dollars in the state's biotech industry.

Stergios points out that there are good things about the proposal, like funding basic research, but he adds:

We all want to attract and grow biotech companies. But why focus solely on biotech, which employs 30,000 people statewide, over other industries? Why not focus on financial services, which employs 180,000, or precision plastics, a large employer in Worcester and Springfield?

Even better, why not focus on the small business sector as a whole, which creates many times more jobs than biotech. Those jobs start people up the economic ladder - and stay in Massachusetts.

The only way to grow and retain jobs and broad prosperity is to improve the business climate by addressing areas of competitive disadvantage like unemployment insurance, permitting, health care and energy costs. Massachusetts has the nation’s highest unemployment insurance rates, commercial rents are sky high and the permitting process - though improving - is onerous.

This makes sense. The first priority should be to create a business climate that favors growth and encourages entrepreneurs -- and not just those with political connections whose business plans might not otherwise get private funding.

June 4, 2007

Flextronics buying Solectron

This is a big deal in the world of contract manufacturing -- Flextronics International Ltd. announced this morning that it is buying Solectron Corp. The combined companies will have plants in 35 countries, employing approximately 200,000 people, including 4,000 design engineers.

Annual sales will top $30 billion.

The acquisition is being made via a stock swap, and Flextronics values the offer at $3.6 billion. Following the acquisition, Solectron will become a wholly owned subsidiary of Flextronics, and Solectron shareholders will own approximately 20-26 percent of Flextronics's outstanding shares.

Mike McNamara, Chief Executive Officer of Flextronics, had this to say about the deal:

"By joining forces, we expect the increased scale will enable us to further extend our market segment reach and leverage an increased vertical integration opportunity, realize significant cost savings, and better serve the needs of our combined customers, employees and shareholders. Solectron's strength in the high-end computing and telecom segments will be an invaluable addition to Flextronics's existing capabilities and the combined company will be a market leader in most product market segments. We will be a larger, more competitive company and therefore better positioned to deliver supply chain solutions that fulfill our customers' increasingly complex requirements."

In addition to contract manufacturing and supply chain management, Flextronics is a major player in plastics injection molding. In 2005, for example, we wrote that Singapore-based Flextronics had more than 1,100 thermoplastic injection molding machines.

June 1, 2007

Required reading for auto suppliers

The 2007 version of the Harbour Report, which compares productivity of North American auto assembly plants, was released yesterday. The $595 report by Troy, Mich.-based Harbour Consulting Inc. is required reading in the auto industry -- but even the free 38-page news release which announced the release of results has plenty of meaty tidbits. For example:

  • Toyota and Honda have a pre-tax profit margin of $1,200 per vehicle sold in North America, Chrysler lost $1,072 per vehicle sold last year, GM lost $1,436, and Ford lost $5,234. "This reflects a variety of factors, including the large difference in health care and pension costs, lower average revenue, as well as higher costs of rebates and low-interest rate financing required to trim inventories."
  • Also: The United Auto Workers and Canadian Auto Workers unions "were more proactive in 2006 than ever before in creating a more competitive environment among the companies whose hourly workers they represent. Chrysler, General Motors and, especially Ford, negotiated more flexible local labor agreements prior to this summer's pivotal national talks with the UAW. However, they must go further to overcome their persistent health care and pension cost disadvantage vs. Honda, Nissan and Toyota. Restrictive labor agreements that create cost disadvantages still exist and could jeopardize the survival of certain automakers."
  • Toyota leads the six largest competitors in total manufacturing productivity (assembly, stamping, engine and transmission), using 29.93 labor hours per vehicle.
  • General Motors wins 3 of 4 Best Plant awards.
  • Fewer plants are producing more vehicles and a wider variety of models supported by flexibility and productivity gains throughout the industry.

"Improving productivity in the face of lower production is a huge accomplishment, but none of the domestic manufacturers can afford to let up," said Ron Harbour, president of Harbour Consulting. "General Motors essentially caught Toyota in vehicle assembly productivity. Considering that they will be building vehicles in 2007 with dramatically fewer hourly employees in the U.S., GM, Ford and Chrysler likely will reduce their hours per vehicle significantly."

June 25, 2007

U.S. molder makes plastic shoes

Every once in a while, I see stories on the Web about U.S companies that still make some product that I had assumed had moved to China (or some other lower-cost location) years ago. That happened again this weekend, with this story from the Gwinnett, Ga., Daily Post.

The story is about Okabashi Brands Inc.'s injection molding plant in Buford, Ga., which molds plastic slip-on shoes.

The Buford factory is one of the few places in the United States where shoes are still being manufactured. “We get a sense of pride out of making our own products,” said Kelly Schmidt, who is vice president of sales for Oka B.

With all of its machines, the factory can produce a total of 15,000 shoes a day during its peak manufacturing periods. Fall production of the Oka B shoes will pick up in mid-July.

Each season, sales of the Oka B brand, which was introduced two years ago, have continued to grow. “Everyone just loves the shoes,” Schmidt said.

The appeal of the shoes is a combination of two factors. “They’re comfortable and they’re cute,” said Naomi Wakatake, the chief designer for Oka B.

According to the story, the shoes are molded from PVC. Keeping up with the latest styles and colors is essential: "The company’s employees get inspiration for new colors and styles from customer feedback and by keeping a close eye on the fashion world. “We look at the runways, then do a reality check,” Schmidt said.

The newspaper's Web version of the story includes a nice photo of workers on the production line, putting finishing details on the company's thongs. I enjoy visiting factories like this, but for now I'll just appreciate their version of the plant tour.

June 22, 2007

Bag bans in Britain

Plastic bag ban stories have been so commonplace in the media for the past few weeks that I've given up linking to most of them. The trend really seems to be building all over the world.

I'll make an exception to the "no link" rule with this feature from Wednesday's Christian Science Monitor. It's a story about how British filmmaker Rebecca Hosking persuaded her hometown of Modbury, England, to ban plastic bags, and how the "revolt" is spreading across Britain.

It was watching sea creatures choke on plastic bags in the Pacific Ocean that finally persuaded Rebecca Hosking that enough was enough.

The British filmmaker had already recoiled in disgust at deserted Hawaiian beaches piled up with four feet of rubbish, the jetsam of Western consumerism washed up by an ocean teeming with plastic. Now, filming off the coast, she looked on aghast as sea turtles eagerly mistook bobbing translucent shapes in the water for jellyfish.

"Sea turtles can't read Wal-mart or Tesco signs on plastic bags," fumes Ms. Hosking, who returned to Britain in March. "They will home in on it and feed on it. Dolphins mistake them for seaweed and quite often they'll eat them and it causes huge damage."

Within a few weeks of coming back, Hosking persuaded her hometown to ban plastic bags outright and found herself in the vanguard of a sudden British revulsion for that most disposable convenience of the throwaway society.

Stores, grass-roots groups, and citizens are joining forces to reduce national consumption of plastic bags, and Hosking is fielding hundreds of requests a day for guidance.

According to the story, Hosking screened her film in Modbury, and invited the town's shopkeepers. After they watched the film, they unanimously decided to support a voluntary ban on plastic bags.

Retailers across Britain followed suit, and the Sainsbury chain has gotten quite a bit of press for its reusable cotton "I am not a plastic bag" bags, which it sold for $10.

So far, Britain's government has not jumped on the "bag ban" bandwagon, although it officially encourages retailers to set up voluntary recycling projects.

June 20, 2007

ITW on the block?

A Reuters report today about "the private equity-fueled buyout craze that has taken dozens of U.S. public companies private" speculates that Illinois Tool Works Inc. could be a promising takeover target.

The report quotes Victor Consoli, Bear Stearns corporate credit strategist, and Ann Duignan, a Bear Stearns manufacturing analyst.

The story does not give any hint about whether ITW's board would be interested in an offer, and whether anything is likely. It also quotes Consoli saying that a buyout wave could start in the coming weeks, "before Europe goes to sleep" for the summer and before interest rates rise.

Coincidentally, perhaps, the Chicago Sun-Times had a story on Monday naming ITW Chairman and CEO David Speer as "fantasy recruit," an executive who would be easy to place.

For 29 years, Speer has "evergreened" his career every few years inside ITW instead of looking outside for new challenges. Today he leads one of the few manufacturing organizations that have instilled an innovation culture. ITW''s business managers, often from acquired companies, are encouraged to become takeover artists and deal makers themselves. In fact they're fully commissioned in how to integrate an acquisition and retain its value -- a key success factor in the battle for marketplace supremacy.

Can you imagine combining ITW's takeover expertise with the deep pockets of the right private equity owner? ITW already has quite a few plastics-related holdings. It would be interesting to see what others ITW would add to its portfolio.

BPA bias controversy

The head of a Canadian government team studying the safety of bisphenol A has been reassigned, according to Toronto's Globe & Mail. Health Canada is investigating claims that Mark Richardson, manager of its contaminated-sites division, was biased in favor of the chemical.

According to the story, Richardson got into trouble because of some remarks he made at a medical conference.

He indicated at the conference that he personally didn't think bisphenol A presented a danger, extolled the virtues of its use in dentistry and dismissed possible health threats posed by exposures to the substance, comparing it to eating tofu.

The Globe and Mail raised questions about Dr. Richardson's objectivity yesterday morning with Health Canada. Shortly afterward, Health Minister Tony Clement's office asked for an investigation into Dr. Richardson's remarks and suitability to work on the review. The investigation will be conducted by the department's chief scientist, Wendy Sexsmith.

The story goes on to say that some scientists are concerned about the safety of tofu, too -- something I didn't know.

"Tofu, and many products from plants, contain estrogen-like chemicals and there is scientific uncertainty about their possible health effects."

I agree that the public should be concerned if regulators show bias -- either in favor of the chemical industry or against it. I wonder, if Richardson's comments had been anti-BPA, would the reaction have been the same?

Huntsman interested in Clariant, Ciba

The Swiss newspaper Hangelszeitung is reporting that Huntsman Corp. considers both Clariant AG and Ciba Specialty Chemicals AG to be attractive takeover candidates.

If your German is rusty, Bloomberg has a story on the wire this morning summarizing the report in English.

Peter Huntsman told the Zurich newspaper that his company would be interested in all or parts of the companies. Both Ciba and Clariant are big players in the plastic colorant market.

Huntsman told the paper that he would not make a hostile takeover.

Bloomberg quoted an analyst who is sceptical that Clariant would be interested in a deal.

"Clariant has streamlined its businesses, it wouldn't make industrial or financial sense to sell some parts now,"' said Martin Flueckiger, an analyst at Helvea in Zurich. "The company has repeatedly said it wants to stay independent."

He added that Ciba is not attractive at its current price.

June 19, 2007

Former plastics worker killed in Iraq

A former employee at thermoformer Plastic Components Inc. in Elkhart, Ind., died Monday in Iraq, killed by a roadside bomb. U.S. Army Spc. David Wilkey Jr., 22, was married with two children, and a third due in October. He had joined the military in January 2006, after after being laid off from the company.

Wilkey joined Plastic Components after he graduated from high school in 2003. His father, David Wilkey Sr., still works there, according to this story from the Elkhart Truth (registration required). Wilkey Sr. was informed of the death on Monday, at the company, according to the story. (Here's an Associated Press version of the story).

The story describes Wilkey Jr. as "an avid fisherman and hunter," who had been based out of Fort Riley, Kan. A memorial service is planned at Fort Riley, and burial eventually will take place in the Powers, Mich., area, on the Upper Peninsula, where he grew up.

June 18, 2007

Tape mimics wall-climbing gecko

The University of Akron and Rensselaer Polytechnic Institute today announced a pretty cool new material using carbon nanotubes: a synthetic "gecko tape." The material's namesake, and inspiration, is the gecko, a type of lizard that can run up walls and across ceilings.

In a paper published in the June 18–22 issue of the Proceedings of the National Academy of Sciences, the researchers describe a process for making polymer surfaces covered with carbon nanotube hairs. The nanotubes imitate the thousands of microscopic hairs on a gecko's footpad, which form weak bonds with whatever surface the creature touches, allowing it to “unstick” itself simply by shifting its foot.

For the first time, the team has developed a prototype flexible patch that can stick and unstick repeatedly with properties better than the natural gecko foot. They fashioned their material into an adhesive tape that can be used on a wide variety of surfaces, including Teflon.

According to this news release on Rensselaer Polytechnic's Web site, the material could be used to make feet for wall-climbing robots; as a dry, reversible adhesive in electronic devices; and in outer space, where most adhesives don't work because of the vacuum. The site also features some amazing magnified photos of the material, courtesy of the University of Akron.

Atypical Bubble Wrap application

According to BBC News, workers in Scotland are using Bubble Wrap to protect a memorial cairn on the site of the 1746 Battle of Culloden.

Grave markers and a memorial cairn on a battlefield in Inverness have been bubble-wrapped in an effort to protect them during the construction of paths. It is hoped the wrapping, more commonly used for protecting fragile ornaments, will guard against any damage from machinery on the Culloden Battlefield.

This looks like an ingenious way to use a fairly low-cost material to protect a priceless historical artifact. Nicely done.

Can plastics make you famous?

Jake Lonsway, a 7-year-old who lives near Bay City, Mich., learned something important this year. If you spend eight months collecting plastic wrap, and you use it to create a giant ball weighing 281 pounds with a circumference of 138 inches, you'll get your name in the local newspaper.

And maybe in the Guinness Book of World Records.

The Bay City Times wrote about Lonsway's project on June 15, but my favorite part of this silly story is the photo of the giant ball posted on Yahoo news.

Do you think Lonsway has a future in the plastics industry? Does he know the difference between LLDPE, LDPE, HDPE, PVC and PVDC? Who is going to recycle that giant lump of plastic? I hope it doesn't destroy some innocent recycler's shredding machine.

Anyway, I guess it's more productive than playing video games all day. Congratulations, Jake.

June 15, 2007

Bottled water has a Friend

Jennifer Aniston, of all people, has stepped into the growing environmental debate about plastic water bottles by endorsing Glaceau Smartwater.

Celebrity blog radaronline commented: "With the green movement taking off as the greatest trend since the 'Rachel' haircut, former 'Friends' star Jennifer Aniston is finding herself on the wrong side of the hour's most polarizing topic: drinking bottled water. Aniston recently jumped on board as spokeswoman for Smartwater, booking the back page ad in July's W and thereby siding against a growing number of increasingly important environmentalists.

"Victoria Kaplan of Food and Water Watch is forwarding a movement called "quitting the bottle," citing such early adopters as celebrity chef Alice Waters and others who, because of the impact plastic containers have on the environment, are starting to serve from the tap instead of the bottle in their restaurants. "Consumers are waking up to the myth of bottled water, despite celebrity endorsement," says Kaplan. With 86 percent of bottles being tossed rather than recycled, Aniston is making a political statement, whether she knows it or not, Kaplan says."

(Radar later softened its criticism, pointing out that Aniston saves water by taking 3-minute showers. Important to know!)

It's all silly, of course. But the fact that anti-plastics rhetoric is reported in the celebrity gossip headlines has an impact on consumer attitudes.

June 13, 2007

Plastics make it affordable

Here's a good idea: a Grandville, Mich., bakery has a decorated wedding cakes made of polystyrene that it rents to thrifty brides (or their parents!). After all, how many people who go to weddings really want to eat a piece of cake?

Well, I do. But I know I'm in the minority. (Let's hope no one invents plastic mostaccioli or nylon green bean almondine).

The Grand Rapids, Mich., Press wrote about the company last week, and now a few wire services have picked up the story. The faux cake costs less than half of the same cake made from scratch, according to the original story.

"They're covered in exactly what a real cake would be covered in -- fondant and gum paste," said Kimberly Aya, owner of Fun Cakes, 2880 Remico St. SW. "The only difference is the inside. Nobody can tell."

Using fondant and gum paste, instead of frosting, "makes the cakes durable and reusable," according to the story.

But how about the cake-cutting ceremony?

Aya has a secret spot on the cake reserved for one real slice of cake for the bride and groom. It is slipped into place, at the base layer and under the fondant sugar paste frosting.

"So they can cut that at the ceremony and feed each other wedding cake," she said.

And normally, the cake then is wheeled to the kitchen to have it cut and served. So guests don't need to know the rest of the cake was fake.

Seems like a good idea, although I'll miss that cake.

Alcan still seeks a white knight

The Canadian Press today reports that Alcan Inc. executive Christel Bories told a news conference in Paris that her company still is looking for a major manufacturer to help it fend off Alcoa Inc.'s hostile takeover bid.

Christel Bories, Alcan's CEO of engineering products units, said at a news conference in Paris that all options were credible and that the company might be an interesting target for large mining companies who are flush with money, such as Australian mining giant BHP Billiton.

Last month, Alcoa presented a hostile $27-billion cash-and-shares offer for Alcan. Alcan has rejected the bid and chief executive Dick Evans has said the company is talking with third parties about "various other transactions."

Bories used to head Alcan's packaging business, which we reported last month could be jetissoned if Alcoa succeeds in making this deal. So stay tuned -- something is likely to happen soon.

Something unusual

Bway Holding Co., parent to packaging company Bway Corp., is holding its initial public offering today. We wrote about the IPO plan back in March, but it's just so unusual for a plastics company to actually follow through with an IPO these days that it seemed worth featuring in the blog today.

In our earlier story, we highlighted the Atlanta company's plastics operations -- and the fact that the company plans to grow by acquiring more rigid plastic container companies after the IPO. The company reported 2006 sales of $968.9 million, with about 42 percent of that from plastics. The firm claims to be the No. 1 manufacturer of plastic pails.

Trading of Bway shares have slipped to $14.89 this morning, according to this Associated Press report, below the company's expected range of $16-$18. Is it any wonder why IPOs are so rare in the manufacturing world these days, despite the fact that the stock market is performing well?

June 12, 2007

Fighting the brain-dead

Do you compete with companies that sell product at unbelievably low prices, barely making a profit or perhaps even losing money, just to stay alive? Unfortunately, such companies exist in many sectors of the plastics industry. I call them "brain dead" companies.

These are companies that do things that just don't make business sense, except for that they're trying desperately to stay out of bankruptcy. Most competitors would prefer they just fold.

Ron Kirscht, president of injection molder Donnelly Custom Manufacturing Co. in Alexandria, Minn., touched on the problem in a recent letter to the editor that he wrote to Industry Week magazine. Kirscht's letter was in response to an IW article, "Do's and Don'ts in Pricing," which was critical of manufacturers or suppliers that are willing to operate below the break-even point, "in a misguided attempt to feed their top line."

Kirscht writes about the problem, and how Donnelly deals with it:

Desperation erodes the connection between price, quality and value -- but discipline allows us to deliver value and negotiate a fair price for customers and our company. This strategic willingness to define and commit to what we do well has kept us focused on improvement, service and success.

Desperation and the low-price promises it spawns, presents a challenge to customer retention for all manufacturers. Nonetheless, the best counteraction to these empty promises is to commit to a strategy built around added value, an appropriately narrow focus, and strong customer relationships. These actions provide for the healthy continuation of a business (i.e., leadership's first priority) and serve as the foundation for bringing the industry into a new era, that of discipline.

On a final note, strategic and organizational discipline does not create drudgery in the workplace. Indeed, it promotes innovation and a culture that is fast, fun and friendly. Why? Because folks are freed up to make decisions and take action to achieve a vital mission - one that is well articulated and understood (leadership's second priority).

I think Kirscht is speaking for many processors, and I applaud him for once again taking a public stand on this issue.

June 11, 2007

Good source for China information

China Law Blog, a Web site by Seattle law firm Harris & Moure PLLC, frequently has posts that are relevant to manufacturers who do business in China.

Robert Grace, Plastics News' editor and associate publisher, is a big fan of the blog, and he pointed out that some recent topics on the site include "How to protect your company from bad China product" (always a concern, and especially noteworthy now with the pet food recall debacle), and "China manufacturing: Take 10% and call me in the morning," about how moving some work to China does not make sense.

Blogger Dan Harris writes:

I know this stuff sounds rather basic, but I have had a number of clients who end up surprised at the low or minimal cost savings to be realized by manufacturing in China, particularly after adding in the transportation costs, the increased legal and administrative fees that come from doing business internationally, and then accounting for the increased risks of quality and other problems.

It's also worth checking out Harris' take on the feud between Groupe Danone SA and its Chinese supplier, Wahaha. This is a story that has received little coverage in the United States, but is making big headlines in China.

Harris agrees with some analysts who I've seen quoted elsewhere, that this dispute is going to influence the future of business for all "foreigners" in China. So if you're interested in that market, you should get up to speed.

June 8, 2007

Bag bans, and fighting back

The town of Fairfax, Calif., in Marin County may be the next community to ban plastic bags, and it looks like Baltimore and Annapolis, Md., may follow suit. Fairfax's town council endorsed a ban, based on San Francisco's law, on June 6, and its set for a vote on July 11. A story on the Marin Independent Journal's Web site explains that the ban there could take effect Feb. 10, and would fine store owners $100 for a first offense, $200 for a second and $500 for each time after that.

Fairfax's ban applies to carryout bags provided by any eating establishment, retail store or food vendor. Town Manager Linda Kelly estimated that 85 businesses would have to comply.

Council members considered adding bags used by dry cleaners and in produce sections at grocery stores, but they put that off until business owners have reliable alternatives in place.

Mayor Larry Bragman told the paper that he presented the plan to the local Chamber of Commerce, and members were supportive. "By and large, the feedback I've gotten is positive," Bragman said.

Meantime, the Associated Press is reporting that both Baltimore and Annapolis are considering similar ordinances. Annapolis would require stores to issue "recyclable paper bags," or customers would have to provide reusable bags. Baltimore would ban "non-biodegradable bags only in grocery stores and pharmacies, while allowing them for other retailers. Plastic bags made of cornstarch would be permitted."

The Maryland efforts are being touted as a way to protect the Chesapeake Bay. "Save the Bay" is a common slogan in that part of the country, and I imagine that this issue will get a lot of support because of that popular sentiment -- just like they're gaining traction in California because of concern about marine debris.

How is the plastics industry dealing with this trend? Watch our June 11 print issue, and our Web site, for a story on two separate proposals, one each from the Progressive Bag Alliance and the California Film Extruders and Converters Association.

June 7, 2007

Counting marine debris

Ocean Conservancy today released its annual report with data from its 2006 International Coastal Cleanup. Plastics waste is featured prominently, but this really is an indictment of littering and other bad consumer behavior. People throw away an amazing amount of junk, and too many seem to believe that once it leaves their house or car or hand, it magically disappears.

Or they don't care.

The 2006 Cleanup was the 21st annual Cleanup conducted by Ocean Conservancy and was made possible by the 358,617 dedicated volunteers around the world in 68 countries. The volunteers not only removed 7,000,000 pounds of debris from the ocean, rivers, lakes and waterways, but they also recorded what they found. An analysis of that data is completed by Ocean Conservancy to provide the most detailed picture of marine debris currently available. It also provides insight to where the trash comes from and how it ends up in the ocean and waterways.

“At a time when so many of us feel compelled to address environmental challenges that are large and complex, the International Coastal Cleanup provides a direct, tangible way to make a difference for one of the largest problems we face trash in our ocean and waterways,” said Vikki Spruill, President and CEO of Ocean Conservancy. “The health of our ocean is a metaphor for the health of our planet and ultimately of human beings who are sustained by the environment. It is time for each one of us to help improve the health of our planet, and the International Coastal Cleanup provides the perfect venue.”

In the 2006 Cleanup, 1,074 animals were found entangled in marine debris by our volunteers including a one-year old seal that was entangled in fishing gear along Hobe Sound, Florida. Of all the animals found entangled this year the seal was the only survivor. Dangerous debris items including discarded fishing gear, ropes, grocery and trash bags as well as small pieces of plastic are responsible for thousands of animal deaths due to entanglement or ingestion.

The next cleanup is scheduled for Sept. 15.

Finally, here's a list of the top 10 debris items found in the 2006 cleanup:

Cigarettes/cigarette filters 1,901,519
Food wrappers and containers 768,115
Caps/lids 704,085
Bags 691,048
Beverage bottles (plastic) 570,299
Beverage bottles (glass) 420,800
Cups/plates/forks/knives/spoons 353,217
Straws/stirrers 349,653
Beverage cans 327,494
Cigar tips 186,258

June 28, 2007

Funniest news today

We got a pretty funny news release on the fax today from Automation Technology Schwope Inc., a supplier of end-of-arm tooling and other secondary custom machinery for the plastics industry. Until today, the company has been known as ATS.

ATS, in Livonia, Mich., was founded in August 2000 as a subsidiary of ASS Maschinenbau GmbH of Cologne, Germany.

"At the time, we did not have the nerve to adopt the name of the parent company, which translated in German means 'Ace,'" the June 28 news release says. But now, the company is announcing a name change, to ASS End of Arm Tooling Inc.

The reason for the name change now is because brand name awareness becomes very important in the global economy. The German parent company has been doing business for more than 25 years in 28 different countries under the name ASS Automation Systems Schwope, therefore it was decided to adopt the ASS name for the North American market.

Well, I hope the folks up in Livonia have a good sense of humor, and don't mind being the butt of my joke today... (sorry, I couldn't resist).

June 27, 2007

Bag recycling kicks off

Plastic bag recycling kicks off statewide in California this weekend, and the California Grocers Association and the Progressive Bag Alliance are ready with an at-store collection tool kit.

Under state law AB 2449, groceries and other retailers are implementing recycling programs for plastic bags, and also providing reusable bags for sale to customers, starting July 1, according to a news release from the grocers' trade group.

"This program is the result of legislation worked on by a coalition of environmental groups, local governments, and the supermarket and chain drug industries, said Pamela Williams, Senior Vice President for the California Retailers Association. "It's an example of what can be achieved when we work together."

With San Francisco banning many plastic bags, and other cities poised to join that trend, this looks a little like closing the barn door after the horses run away. But there really is a healthy recycling market for plastic grocery bags, and I think this program has a chance to succeed. Do you think state and local politicians will give it a chance?

June 26, 2007

Giddeyap!

I'm always cautious about companies that claim to be the first to do something -- most of the claims are just about impossible to verify. But here's an interesting "first" plastics application, courtesy of BASF Corp.'s Web site: stirrup inserts made from an ABS/nylon blend by an injection molder in Belgium.

This marks the first time that this plastic has gone into such an application, where primarily leather or metal had been used up to now. The lightweight, easy-to-install parts prevent the rider’s foot from slipping through the stirrup when the horse is galloping. It really helps children to learn not to put their feet too far into the stirrups. Plastics in these safety-relevant parts for horse-riding have an edge over conventional materials: they are easier to maintain, more dimensionally stable and cheaper.

Polymar bvba is the company credited with marketing the product, and A. Schulman helped develop the stirrup, according to the release.

I doubt that stirrups are a high-volume market, but it's a neat niche that I never would have imagined. I guess this is proof that there are still applications out there for plastics to replace metal and other traditional materials.

June 25, 2007

Resin by numbers

We get calls all the time from people who want data on various resins -- how much is produced? How much is used in specific applications? How are the numbers changing from year to year? We refer the callers to the American Chemistry Council, which writes the book on resin statistics.

Well, if you're one of those readers who wants resin data, there's good news: the 2007 data is available. ACC announced on June 19 that its reference book "The Resin Review: The Annual Statistical Report of the U.S. Plastics Industry," is finished. The report is compiled annually from data collected by ACC's Plastics Industry Producers' Statistics Group and other sources.

The 2007 edition contains detailed tables on U.S. resin production, sales and captive (internal) use by end-use application, industry capacities and utilization rate data from 1996-2006. Sales data is broken down into various end-use markets from 1996-2006 for more than a dozen individual resins. A table with historical data on U.S. plastics production and sales and captive use tracks the trend from 1973 to 2006.

The publication also explains the basic chemistry of plastics and includes material flow diagrams and monomer derivatives diagrams. It provides a glossary of basic plastics terms and details the history of plastics development and current applications.

Sound like something you need? A PDF download of the report costs $200 (that's a handy format for searching), and an old-fashioned hard copy costs $250, plus shipping and handling. You can order it online at www.resinreview.com.

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About June 2007

This page contains all entries posted to PlasticsNews in June 2007. They are listed from oldest to newest.

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