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New Victrex PEEK plant will be built in Britain February 28, 1999
The second production site planned by Victrex for its PEEK polyaryletherketone will be built in Britain. The company had contemplated building it in the USA, but this would have cost more than the £30 - 40 million anticipated because it would have meant starting from scratch, whereas Victrex already has an infrastructure in place in the UK.
Last year the major increase in demand for PEEK came from Europe, where sales increased 34 per cent, primarily from the automotive sector, from which demand increased by 50 per cent. Overall worldwide sales increased 8 per cent giving the company a turnover of more than £47 million.
¤ The new chairman of Victrex is Peter Warry, previously a main board director of British Energy plc. The previous chairman, Dr Peter Rowley, who led Victrex from its management buy-out from ICI, retired in January.
DSM takes over GE's Lomod business February 28, 1999
DSM Engineering Plastics has bought market share for the additional capacity planned for its Arnitel copolyester products by taking over GE Plastics' Lomod business. GE will stop selling Lomod, and DSM will supply the business with Arnitel.
Arnitel is available as block polyetheresters and block polyesteresters and is used in a variety of applications such as automotive boots and bellows, airbag covers, electrical connectors, wall membranes, hoses, medical drapes and gowns and diaper backing sheets. Lomod is noted for its use in vehicle airbag covers.
SPE revamps European office February 28, 1999
The Society of Plastics Engineers has moved its European Service Center to Antwerp and renamed it the European Member Bureau. It is being run by Yetty Pauwels who has been a member of the SPE since 1981, and was involved in the development of the Benelux Section and the formation of the International Committee, which she also chaired at one time.
The address of the SPE's European Member Bureau is:
Bistkapellei 44,
B-2180 Antwerpen,
Belgium
Telephone: +32 (0)3 541 7755
Fax: +32 (0)3 541 8425
Sheet products expansion at GE February 25, 1999
GE Plastics Structured Products Europe is to double its capacity by 2000. In the first phase of investment, due for completion by the end of June, it is installing three new extrusion lines which will create dedicated production facilities for opaque sheets including Gepax weatherable thermoforming sheet, Xenoy TFS100 sheet for automotive applications and Lexan F6000 sheet for aircraft interiors. The investment will also increase capacity for Lexan Thermoclear multi-wall sheet, solid Lexan Exell D and 9030 sheets, and polycarbonate graphics and electrical/electronic films.
EVC and Borealis profits hammered by economic declines February 25, 1999
Annual results from Europe's biggest PVC producer European Vinyls Corporation and biggest polyolefins producer Borealis show how badly polymer producers were hit by the shock waves from last year's Asian economic crisis.
A fall in demand for PVC, particularly in Asia where demand dropped 9 per cent, and lower selling prices sent EVC International's profits tumbling last year. Its operating profit of Euro 11·3 million in 1997 turned to an operating loss of Euro 38·5 million on turnover lowered from Euro 1,074·4 million to Euro 926·5 million.
The Asian crisis virtually wiped out West European PVC exports, while imports increased, and the selling price for S-PVC dropped 33 per cent over the year - faster than the drop in raw material prices.
Trading this year is not predicted to improve significantly. The market weakness at the end of last year has continued so far into 1999, and the group says that Western European industrial production is showing clear signs of a slow down, suggesting little PVC demand growth in local markets. Although PVC capacity additions have also slowed, EVC says operating rates for the industry are not expected to improve in the short term and margins are likely to remain depressed.
To counter this market depression EVC has in hand rationalisation plans which it says will return Euro 32 million a year by the millennium. These include replacing the VCM plant at Hillhouse with a more efficient unit at Runcorn, and closing its VCM/S-PVC plant in Brindisi.
The group is also looking to its rigid films business for a greater contribution. Despite being affected by the economic collapse in Russia and Asia at the end of the year the rigid films business made a positive contribution to group earnings, and EVC intends to invest further. A new coating line has been commissioned at Bötzingen, and this is expected to deliver up to Euro 1·8 million cost savings annually by 2000.
The profits fall at Borealis was not as dramatic as that at EVC, but the company is in a state of flux, having added the Austrian PCD polypropylene operation during the year and investing heavily in a site development programme. Despite the addition of the PCD business year-on-year operating profits fell from Euro 267 million to Euro 218 million on turnover up from Euro 2,516 million to Euro 2,739 million. (These figures are before deduction of restructuring costs which increased from Euro 28 million in 1997 to Euro 54 million in 1998.)
Borealis says the fall in profits was due mainly to lower sales and average market prices for polyolefins in 1998. Prices were 14 per cent below those of the previous year and, while the price of naphtha also fell, feedstock cost reductions were below those of sales prices, with an integrated margin fall of 6 per cent.
Wittmann adds new robots to extend automation possibilities February 24, 1999
Wittmann (UK) has extended its capability as a full service automation provider by taking on representation for three Japanese robot makes which complement the cartesian CNC robots built by Wittmann of Austria. The new arrangement allows automation tasks to be built into a project downstream of the de-moulding robot, freeing the de-moulding robot for its primary task of removing mouldings without penalising cycle time.
The three new robot makes are Kawasaki, Mitsubishi and Toshiba.
The Kawasaki robots are multi-axis machines with payload capabilities from 5 to 300 kg, which can be used for handling, palletising, painting, seam sealing and other process applications.
The Mitsubishi robots are smaller, giving five and six axis capability with payloads up to 3 kg or 5 kg, for light duty handling, machine loading and assembly operations where a small multi-axis robot is preferred.
The third series of machines, from Toshiba, are four axis scara robots for applications up to 20 kg suitable for assembly, machine loading, palletising, printing and packing. Repeatability is 0·02 mm at high speed up to 10 kg and 0·03 mm with larger reach capability at more than 5 m/sec. The machines will operate at double payload at half speed.
Multi-camera vision systems can be integrated with the robots for component inspection and robot guidance.
Sussex Gauging has bought back the off-line film gauge it developed 12 years ago and which has been further developed and sold by H A Gaydon. The gauge has similar resolution to Sussex Gauging's on-line non-contact capacitance gauge - 0·1 microns up to 600 microns and then 0·5 microns up to 3 mm - and will be sold as the Sussex Off-line Film Gauge by Sussex Gauging, and also by Hanatek as the Hanatek gauge.
The UK plastics industry is cautiously optimistic February 23, 1999
Despite Britain being technically in recession, its plastics industry is looking forward with 'cautious optimism' according to the latest Business Trends Survey from the British Plastics Federation.
One hundred and sixteen companies took part in the survey, which covers performance in 1998 and predictions for 1999. Sixty per cent of materials suppliers and 70 per cent of processors anticipate an increase in sales volume this year - although not becoming significant until the latter part of the year - with more than half of them putting the increase in the 5 - 10 per cent range. (The percentages quoted by the report are not just of numbers of companies, but are weighted according to company turnover).
During 1998 there was continued growth in both materials and processed products sales, although growth slowed towards the end of the year. Of materials suppliers 42 per cent reported increased home sales and 53 per cent increased exports, while 73 per cent of processors increased home sales and 41 per cent increased exports.
Underlying the encouraging growth in sales last year and forecast growth this year is a less encouraging growth in profits. Forty five per cent of materials suppliers increased profits last year but only 22 per cent anticipate continuing to increase profits this year. Among processors only around 20 per cent increased profitability last year, but the factor trimming materials suppliers' expectations - lower prices - gives a more encouraging slant to processors' profit expectations for 1999.
The report groups processors into major industry sectors, of which building/construction accounted for the most companies and highest slice of total turnover. In this sector 85 per cent of respondents increased sales, yet for the first time since 1995 there was an increase in the companies reporting lowered profits. Packaging showed a similar pattern with 73 per cent of companies increasing sales, but an increase in companies reporting lowered profitability.
Worst hit of the business sectors reported in 1998 was the automotive sector, where 77 per cent of companies reported declines in sales and 88 per cent reported declines in profitability.
To put these performance figures into perspective, the trends were drawn from 44 companies in building/construction with an average turnover of £36 million; 26 companies in packaging with an average turnover of £45 million; and 17 companies in automotive, averaging £43 million turnover.
Only five machinery companies took part in the survey. Turnover-weighted response showed that 80 per cent of these companies increased home sales last year while 20 per cent saw sales fall. Only seven per cent expect sales to increase this year, and 65 per cent expect sales to fall. These gloomy predictions are against a rather brighter background from the processing sector, where 36 per cent anticipate increasing expenditure on machinery this year, 36 per cent expect to maintain the current level, and 28 per cent expect to spend less. Consolidation is suggested by the 42 per cent who expect to install equipment to expand capacity while 58 per cent expect to replace existing assets.
The 1998 Business Trends Survey costs £50. BPF members get a 20 per cent discount.
An agreement was due to be signed today for the construction of a 255,000 tonnes low density polyethylene plant in Malaysia, which is described as the largest single line LDPE facility in Asia. It is to be built by a consortium of Petronas, Malaysia (40 per cent), Polifin Ltd, South Africa (40 per cent) and DSM, Netherlands (20 per cent). The plant will use DSM's clean tubular reactor technology, licensed from DSM subsidiary Stamicarbon.
The new plant will be built at the Kertih complex, which has an ethylene cracker on-site. Start-up is scheduled for autumn 2001.
New source of red phosphorus flame retardant masterbatch February 23, 1999
Additives and masterbatch supplier Polyadd has been appointed UK agent by Italmatch Chemicals of Italy for its Masteret range of red phosphorus based flame retardant masterbatches.
These can be used with nylon 6 and 66, rigid polyurethane foams, epoxies and polyolefins to give an intumescent flame retardant action while maintaining mechanical, electrical and processing properties. They can be used with other polymers in association with halogen-free synergists, most notably melamine, magnesium hydroxide and alumina trihydrate.
Polyadd says the masterbatch nature of the flame retardant enables red phosphorus to be incorporated without recourse to nitrogen-blanketed compounding equipment.
Peter Butt has joined Plascoat Systems as managing director from cotton fibre manufacturer Edward Hall. Plascoat's former managing director Patrick Benson has become director of technical and business development.
Formation buy doubles Arrk capacity February 23, 1999
The purchase out of receivership by Arrk Europe of Formation's rapid prototyping business has doubled Arrk's prototyping capacity in the UK.
The business is now trading as Arrk Formation under the directorship of Peter Rawson, with around 50 of the original workforce. The takeover added to Arrk's existing facilities a metal casting foundry and a much larger vacuum casting facility.
Arrk has its head office in Japan, and has branches in France, Germany, Spain, the UK and the USA.
Royal inauguration for Arburg February 17, 1999
There will be a double royal celebration for Arburg UK on March 2 when its new headquarters at Royal Leamington Spa will be opened by HRH The Princess Royal. Also present will be the current owners of Arburg, Eugen and Michael Hehl.
The 20,000 sq ft building includes offices, showroom, demonstration, training and service areas, and cost £2½ million.
PVC environment charter extended to E-PVC February 16, 1999
European PVC producers have added emulsion PVC to their voluntary agreement to control emissions to air and discharges to water. The European Council of Vinyl Manufacturers drew up a charter in 1995 covering vinyl chloride monomer and suspension PVC production, which is currently being verified with a report due in June. The new charter brings E-PVC - which represents about 15 per cent of European PVC production - under the same environmental guidelines which now cover virtually all PVC production in Western Europe.
Energy recovery continues as the major route to recycling February 16, 1999
Plastics recovery remained at about 25 per cent of the waste generated between 1996 and 1997 according to figures from the Association of Plastics Manufacturers in Europe. The APME says growth in consumption during the period was 8 per cent to 27,978,000 tonnes, of which 17,504,000 tonnes entered the waste stream. Of this around 15 per cent (2·5 million tonnes) was burned for energy recovery. Eight per cent was recovered by mechanical recycling - half of this stemming from two sources, agriculture and packaging. The level of feedstock recycling, primarily a German occupation, increased by 33 per cent but at 334,000 tonnes represented less than 2 per cent of the total waste recovered.
The APME's figures show for the first time the cross border trade in plastics waste through Europe, with around 1·5 per cent of waste (18 per cent of mechanically recycled plastics) being exported. Germany is the largest exporter with Austria also a major exporter. The biggest importer is the Netherlands, with the UK and Switzerland also importing significant quantities.
The APME comments that the import trade could be a significant barrier to the further development of mechanical recycling because as the importing countries begin processing and selling their own recyclate in greater quantities, markets for the reclaimed material could become saturated.
Hence APME favours a combination policy of mechanical recycling, feedstock recycling and energy recovery.
Recycling target increases better sooner than later February 16, 1999
UK plastics recovery requirements are being increased, but this is seen as a long term benefit by Valuplast, the organisation which represents the plastics industry in the matter of recycling legislation.
The previously defined steps to ultimate compliance with EU targets for 2001 were seen by Valuplast as too uneven, calling for too much to be achieved at the last minute. The Government's increase of the overall recovery targets for packaging waste to 43 per cent this year and 45 per cent in 2000, with material specific targets for plastics recovery rising to 10 per cent and 13 per cent will add a further 50,000 tonnes each year over the 100,000 tonnes recycled in 1998. However, Valuplast says that the indicators from last year's recycling performance show that there is sufficient installed recovery and recycling capacity and sufficient incentive for further investment to handle the short term increases. What does require more work, however, is the creation of markets for the recycled material.
Also included in the Government's review proposals are a decision not impose separate targets for the domestic waste stream, which Valuplast welcomes as enabling a continued focus on plastics packaging recovery through commercial schemes which provide for quality of recovered material to be more suited for recycling, and an increase in the turnover threshold for obligation to comply with the legislation in 2000 from £1 million to £2 million. Valuplast sees this latter move as 'a big disappointment' as it will cause packaging producers to continue to face competition from importers and smaller businesses who do not have to suffer the cost burden of the legislation.
¤ Members of the British Plastics Federation's Plastics Recyclers Council have expressed concern that price pressure on Packaging Recovery Notes - PRNs - may undermine their ability to invest for future increased recycling levels. Because compliance schemes are in competition to achieve the lowest cost compliance for their members there is a downward pressure on PRN prices. The federation comments: 'We envisage serious short-term difficulties for a whole spectrum of collection schemes unless ways are found immediately to ensure that UK recyclers who have developed close working relationships with UK schemes are offered prices for PRNs which are consistent with local economics and which provide a stable framework in which UK recyclers can operate. Recyclers wish to seek ways with the compliance organisations to ensure that UK recycling capacity to meet current and future needs is developed.'
Elf Atochem takes on Aspell HDPE distribution February 16, 1999
New grades of HDPE have been added to the Aspell Polymères Lacqtene series, which is now sold in the UK by Elf Atochem - Aspell is a joint venture between Elf Atochem and Union Carbide and has a capacity of 80,000 tonnes of LDPE produced by Elf Atochem's high pressure process and 200,000 tonnes of HDPE produced by the Unipol low pressure gas process.
The new grades include blow moulding materials with enhanced organoleptic and mechanical properties, new high and medium density extrusion materials for gas and drinking water pipes and cable sheathing, and injection moulding grades with enhanced moulding properties for crates, boxes, dustbins and closures.
30 per cent profits rise at Axxicon February 16, 1999
Dutch mouldmaker and moulder Axxicon increased net profits by 31 per cent in 1998 on an 8 per cent turnover increase.
Net turnover rose to NLG 109 million and the net profit was NLG 4·3 million (1997: NLG 3·3 million).
Turkmenistan to become a PP producer February 16, 1999
The first polypropylene plant to be built in Turkmenistan will be an 80,000 tonnes unit using the Montell Spheripol process which will come on stream in the fourth quarter of 2001. The plant is to be built for Turkmenneftgas State Trade Corporation by JGC Corporation of Japan.
Adjustable pipe calibrator and new co-rotating compounder for the UK February 16, 1999
An adjustable pipe calibrating sleeve which takes the guesswork out of commissioning is now available in the UK from Uniplex Machinery Sales.
The sleeves, initially made in sizes for pipe diameters of 90 - 160 mm, avoid the need for rework of a calibrator in the field when trials have shown actual shrinkage rates, and enable pipes with similar outside diameters and different wall thicknesses to be made without stopping production. They are of around conventional length - some 250 mm - and are made up of rings about 10 mm wide, each with a slot of about 10 mm cut from it. Adjoining rings are staggered so that the slots do not coincide. Adjustment is by mechanically closing or opening the slot, so changing the diameter of the rings.
The initial pipe diameter range has an adjustment of about 3 mm. New sleeves are in development for 180 - 250 mm pipe, to be followed by larger and smaller diameter sleeves.
The company which developed the concept, Rival MaskinFabrikken of Denmark, did its initial trials at Wavin in Denmark. Uniplex Machinery Sales has tried the sleeve at Stewarts & Lloyds, which has ordered one. Payback time is estimated at 6 - 9 months.
Uniplex has also become UK agent for a co-rotating twin screw compounding extruder, the CT Compounding Technology range built in Germany by the Swiss-based company started by former Buss and Werner & Pfleiderer engineers. Machines are built from 25 to 133 mm screw diameter, and are said to be able to add up to 55 per cent glass fibre loading. Uniplex sees most demand for the 40, 58 and 70 mm models for masterbatch and engineering compounds wanted in small lots at quick turn round.
The company also builds replacement screws for a number of popular makes which, like the extruders, are priced at below the market norm.
Uniplex already operates in the compounding sector through its agency for Battenfeld Extrusionstechnik, but Battenfeld doesn't build co-rotating machines.
UK compounder extends its use of Compex machines February 16, 1999
West Yorkshire compounder Prime Polymers & Compounders of Keighley has bought another Berstorff Compex twin screw extruder - its third. The Compex design is characterised by having non-intermeshing screws which reduce the stress on the material. Prime Polymers anticipates using it for customised compounds.
Prime is now in the process of installing three Brabender feeders on the new line.
New marketing head at Bayer UK February 16, 1999
New UK and Ireland marketing director of Bayer's Plastics Business Group is Martin Sixsmith, who has been with Bayer for 22 years in technical sales and product management. He replaces Ian Paterson who is moving to Leverkusen in a strategic planning role.
Bayer to buy DSM's transparent sheet business February 10, 1999
DSM is selling off another of its 'non-core' plastics businesses. It has reached an agreement with Bayer to sell its transparent sheet business which operates as Axxis in Belgium and Sheffield Plastics in the USA.
The business, part of DSM's Engineering Plastic Products group, has annual sales of Euro 120 million and has demonstrated good growth and profitability. But DSM says further growth would require high investment, and this would be counter to its policy of involvement in businesses with a return on investment of 15 per cent. DSM sold its ABS business to BASF for the same reason last year.
Solvay and Elf Atochem strike Spanish PVC accord February 10, 1999
Elf Atochem and Solvay are pooling their PVC resources in Spain in an extension of their joint venture in vinyl chloride monomer. They are to share a 230,000 tonnes production plant at Martorell - where they have the 250,000 tonnes Viniclor VCM plant - while retaining their own sales networks. Overall Spanish production capacity for both companies should remain unchanged. The agreement is to be phased in for finalisation early in 2001. Last year Solvay pooled PVC resources with BASF.
New look for ultrasonics company February 10, 1999
Ultrasonic welding equipment supplier Crest Rinco Ultrasonics UK has restructured and moved to new premises. Malcolm Hayward has been appointed managing director, and Alan Trueman is now coordinating all Crest Group activities in the UK.
The company has moved to the premises of CC Hydrosonics, a cleaning systems company which has recently been bought by the group, at Units 3 & 4, Italstyle Factory, Cambridge Road, Harlow, Essex, CM20 2HE. The telephone number is 01279 413103 and fax 01279 453926.
German machinery output continues to grow February 10, 1999
Figures for plastics and rubber machinery production in Germany for the first nine months of last year are suggesting a further rise on the output of 1997, but not such a big increase. Output in 1997 was up 13·4 per cent on the previous year, but for 1998 the VDMA - the German Machinery and Plant Manufacturers' Association - is predicting a rise of just under 9 per cent.
Injection moulding machines are expected to show an above average result with a double digit increase on the previous year's record production value of DM 1·7 billion to approaching DM 2 billion.
Other equipment sectors will also show a year on year increase with the exception of extrusion plant, where production value is expected to fall below the level of last year because of continuing decline in the building industry.
Exports in the first nine months were 2·9 per cent higher than in the same period in 1997, but despite increased sales in Europe and North America, the reduction in Far Eastern sales means that the last quarter is unlikely to improve the position, says the VDMA.
While German processors supported their home industry with a 28 per cent increase in orders during the period, they also bought more from abroad. Imports were up around 77 per cent - the figures are partly obscured by different reporting of EU/non-EU sources - and accounted for around a third of domestic sales.
Gary Lacey has been appointed managing director of Silvertown UK. He joins from water industry equipment manufacturer Biwater where he was general manager at the Oldbury plant.
DuPont starts PET price rises February 3, 1999
DuPont has increased the price of its Melinar PET container resins by 50 Euros/tonne from February 1. A further increase of at least the same amount will come in March.
New chief for Forsheda February 3, 1999
John Langston has been appointed chief executive of Forsheda Polymer Engineering Group. He moves from another TI company, Bundy Automotive, where he was chief executive.
Arrk buys part of split Formation February 3, 1999
Rapid prototyping and rapid tooling specialist Formation has gone into receivership and seen its operations split in two. The rapid prototyping side of the company has been bought by Arrk, while the rapid tooling business is still being run by the receiver.
Founder Tim Plunkett is no longer with the company, but is seeking finance to resurrect the rapid toolmaking business.
The high level of investment in the rapid tooling business together with an apparent lack of acceptance by moulders and their customers of the need to pay a premium to cut down time to market is blamed for the company's plight.
Britton Group Plastics names chief executive February 2, 1999
Britton Group Plastics has appointed Rod Watters as chief executive officer. He moves from PPG Industries where was vice president, Coatings Europe, based in Paris.
Barlo buys multi-wall PC sheet producer February 2, 1999
Growing pan-European sheet manufacturer Barlo Plastics has bought itself into the multi-wall polycarbonate market with the acquisition of French extruder Celair Technologies of Strasbourg. Barlo has an existing solid polycarbonate sheet product, but was only in the multi-wall business through trading limited amounts of sheet in Southern Europe. More than 70 per cent of Celair's sales are outside France.
Barlo, whose parent Barlo Group is based in Ireland and traded on the Dublin and London Stock Exchanges, paid 184,392,000 BEF (FFr 30 million) in cash for Celair, which is said to be currently trading profitably and expected immediately to add profit to Barlo.
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