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Need a little help in raising your competitive bar?

MCEP is an initiative supporting South Africas manufacturing industries to improve competitiveness and sustain employment.

Cash grants and concessionary industrial financing facilities are available to companies operating in certain key manufacturing industries. Funding is available to enhance competitiveness and improve resource efficiency.

If you need to raise your competitive bar by improving your efficiency, feasibility or cluster competitiveness, then visit www.investmentincentives.co.za/mcep for help.

MCEP is an initiative of the Department of Trade and Industry and the Industrial Development Corporation.

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SA Plastics Composites + Rubber Technology is published six times a year and focuses on these industries in South

and southern Africa. We welcome news, articles, technical reports, information in general and photographs about

events and developments related to the plastics industry. The views expressed in the magazine are not necessarily those of the publisher. Views expressed are not necessar-ily those of the Plastics Converters Association, Institute of

Materials or Association of Rotational Moulders either.

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Institute of Materials

Publisher: Martin Wells(martin@summitpub.co.za)

Editor: Tessa OHara(tessa@summitpub.co.za)

Editorial assistant: Heather Peplow(heather@summitpub.co.za)

Financial manager: Lisa Mulligan(lisa@summitpub.co.za)

Designer: Bronwen Moys Blinc Design(bronwen.clarke@gmail.com)

I TS been found that the quantity of plastics litter on South Africas beaches has increased hugely over the past two decades (see pages 36-40), but Eastern beach in East London tops all that and has been identi ed as the dirtiest beach in South Africa make that southern Africa. Theres so much litter lying around, much of which ends up on the beaches (and then the sea) that citizens seem to no longer notice.

But the tragic irony of this pathetic scenario is that municipal employees are being paid to clean the place up. Yep, I was surprised to nd that my trustworthy contact in the city had been phoning the local council over months to ask them to clean up the area around his place of work and was told that the area in concern was cleaned three times a day!

Not sand, stones arrived!IN the last By the Way column we reported about convertors who had been misled by hoods posing as material suppliers and ended up paying for container loads of sand. Now we hear the situation is not as isolated as previously thought, the only variation in further incidences being that a container of stones arrived. All legit as far as Customs & Excise were concerned one imagines? We also hear of one character that ostensibly bought a container off Alibaba.com, prepaid, and was then surprised when it didnt arrive!

Such problems can burn a big hole in your pocket, so it may be wiser to deal with established and experienced material suppliers, several of who are active in the market and readily available.

Some of those who have desisted going the conventional route appear to believe the established importers and distributors make an unreason-able mark-up (comments such as instead of forking out an additional 30% to local merchants, have been made), whereas we understand the margins for the material suppliers are in the 6% range. For most, that would constitute a tightrope walk. So dont allow yourself to be conned.

Tyre troubles over levyITS no surprise that South Africas tyre manufacturers are not enam-oured with the governments REDISA tyre recycling levy plan. The levy is set at R2.30 per kg of tyres sold, which given that approximately 275,000 tons of tyres are either produced locally or imported a year would yield a whopping R632,5-million a year from the levies. Some of the tyre makers involved may have looked at the plastic bag recycling levy situation, where the industrys recycling plan failed and the levy funds simply disappeared into the Treasury. No, the smart spokesman at SARS, con rmed, the funds werent ringfenced and he didnt know where they are, or were and neither do we, actually.

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JUNE JULY 2013

Contents

www.borealis.com

ON THE COVER

AT K2013 in Dsseldorf from 16-23 October, Borealis will showcase clear advantages in sustainability and fresh-look aesthetics to the rigid packaging market with the launch of its new superior ow random copolymer polypropylene (PP) RJ901MO. Borealis will usher in the next generation advance for thin wall packaging and houseware applications, such as storage boxes, CD and DVD cases, delivering an overall step-change in performance, less energy consumption and a reduced carbon footprint plus strong visual appeal. RJ901MOs high melt ow rate (MFR) of 110 in combination with nucleation enables lower processing temperatures. For packaging converters, this creates the potential for higher productivity through optimised cycle times and energy savings. Compared to MFR 70 materials, it is possible to obtain a 20C reduction in melt tempera-tures resulting in a 20% cycle time reduction.

Find out more at www.saplastics.co.za

Volume 11 No 3

53

18

6

10

14

20

32

35

36

61

78

84

92

INDUSTRY NEWSMassive new IBC machine atNampaks Megapak KZN unit

Astrapak is back and on new course,with new team

Forma enters big drum market

Reshoring production from China to the USwill bene t plastics industry

Proplas celebrates 30yrs of success

SPI makes big move and cuts power costs

AFRICAN MARINE DEBRIS SUMMITFirst-ever African summit on marine debris

highlights need for collective action

COMPOSITESAerontec wins DIAB agency

WORLDRecovery, strong sales growth at

Gloucester Engineering

DIARYEvents coming up in 2013

SPORTSOrange River Project challenges, amazes and appalls 66

32

44

THE ground-breaking establishment of a Network for African Countries on Marine Debris at the recent African Ma-rine Debris Summit hosted in this country is a noteworthy achievement for the local industry, and speci cally for PlasticsSA.

South Africa was the only African signatory at the recent global industry forum on marine litter in Dubai in 2011, and the PlasticsSA environment team including John Kieser and Douw Steyn set about encouraging involvement by other African nations. They succeeded in encouraging delegates from Kenya, Nigeria, Seychelles, Cameroon, Ivory Coast, Mozambique and Namibia to attend the 3-day event in Cape Town (the last day was a beach clean-up) and the result was the agreement to form this network and to cooperate in nding solutions on marine litter (read about this on pages 36-40).

The summit featured numerous presentations by learned authorities and it was surprising to see how many people are interested and committed to nding solutions for the problem of plastics litter in the marine environment, as well as the extent of their research. It was also gratifying to note that most of these researchers and environmentalists are pragmatic, looking for positive outcomes rather than confrontation.

Moving aheadIN this issue we again look at a number of positive developments by local companies. The Nampak group is a case in point here: they have just commissioned two major pieces of equipment, a 7-layer lm line (the rst in Africa) and a massive IBC (intermediate bulk container) blow moulding machine, both incidentally in KZN. The ability to make investments such as these, and more importantly the con dence and determination to do are impressive. This involves good teamwork and commit-

COM

MEN

T

ment, and we are proud to be able to report about these projects (see pages 6-9)

Top people depart Cape sceneTHE industry in the Western Cape has lost two individuals who were most involved in its development, Horst Sass of Bowler Plastics and Albi Painczyk of Exactocraft, who passed away recently. Ironically, both grew up in Namibia. Both started businesses in Cape Town and created lasting legacies among the people they employed, many of who are now involved in the industry around the country. We report about these ne gentlemen on page 48.

Reshoring production from China to USWE take a look at an interesting trend starting to emerge that of reshoring or moving manufacturing back to North America from China (see pages 20-23), a phenomenon that could start happening here too!

The great migration of manu-facturing from North America to China began 20 years ago when companies, believing they could reduce production costs, began establishing facilities and working with third parties there to bene t from special economic zones, new industrial infra-structure, favourable tariffs, low currency exchange rates and, importantly, cheap labour.

In fact, greater productivity, cost reductions and reshor-ing are expected to increase export activity and add 2.5 million to 5 million US jobs by the end of the decade, ac-cording to Boston Consulting Group.

These researchers and environmentalists are pragmatic, looking for positive outcomes rather than confrontation

THIS ISSUE

JUNE / JULY 2013

Martin Wells, Publisher

Positive news for plastics materials and the industry overall

a noteworthy achievement for Plastics|SA

Network of African Countries on Marine Debris

Excellencein COLOUR

consistencyThe quality of

expectations determines

the quality of our action.

- Andre Godin

Our 4 divisions: Masterbatch Pigments Pastes - PUR & PVC Liquids - PO & PET

Contact us: www.performance.co.zaGAUTENG: Tel: + 27 11 961 2700 | Fax: + 27 11 961 2799 | Cnr. Koornhof & Essex Roads, Meadowdale Ext. 1, 1401 CAPE TOWN: Tel: + 27 21 928 2800 | Fax: + 27 21 931 9088 | 5 Linus Road, Beaconvale Industria, Parrow 7500 DURBAN: Tel: + 27 31 701 1202 | Fax: + 27 31 701 2296 | Reed Place Maxmead Ind. Park Unit 22, Pinetown 3620 EAST LONDON: Tel: + 27 43 736 2076 | Fax: + 27 43 736 2036 7 | Reitz Avenue, Green elds, East London

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Multi-million Rand investment in state-of-the-art engineering, manufacturing technology

namely a container, a cage and a pallet. Money was also spent on leak testing, closure application units, drop tests, internal hydraulic pressure tests, as well as freezer chamber tests.

According to Joel Sibanda, divisional managing director of Nampak Megapak, IBCs are the way of the future, particularly in terms of their ability to unlock improved supply chain ef ciencies and sustainability outcomes.

One IBC substitutes ve drums with a footprint of four drums, explains Sibanda. This means more volume and less packag-ing in the same space!

IBC constructionThe IBC bottles are blow-moulded from UV-stabilised HDPE and can be used for a wide variety of liquids, such as chemicals, foods, oils and pharmaceuticals. Theyre translucent for better visibility and easier inspecting.

Nampak Megapak sources zinc-coated tubes from Mauser for the steel cages housing the HDPE bottles. The engineer-ing and welding are done at the packaging companys ISO 9001: 2008 accredited facility in Pinetown, and provide maximum

stability for all types of supply chain chal-lenges and dynamics.

Every IBC comes with an integrated pal-let offering. Mauser-approved designs and materials can be selected, such as all-wood (heat treated), plastic/steel composites and a runner and frame for automatic lling lines and storage racks.

Finally, a comprehensive range of fully imported valves and closures is available. Some optional features include additional top openings for dispensing systems, special gaskets and venting. The discharge valves are easily replaceable, as they arent welded in.

Nampak Megapak offers two steel plates for labelling, as well as technical support in terms of lling, closing, warehousing, trans-porting, storing, shipping, load-securing and much more.

Project managementThe project is being managed by John Lindsay-Smith of Megapak at Olifantsfon-tein, who designed the plant and assem-bled the various components.

With dimensions of approximately 1m x 1m, wall thickness is obviously a key requirement for IBC manufacture. The

Each IBC involves three component parts, namely a container, a cage and a pallet

NAMPAKS Megapak business in Durban has just commissioned one of the biggest blow moulding machines ever installed in South Africa.

The 1000-litre IBC (intermediate bulk container) machine from Taiwan joins an elite group of IBC manufacturing operations around the world. The IBC sector, as well as that of the next largest sector, that of the 210-250-litre drum, is led by Mauser group of Germany, which holds patents for these products and is also a supplier of machines for the large plastic containers.

Nampak Megapak, which has many years of experience in the eld of industrial packaging, including the making of L-ring drums since 1998, made a multi-million Rand investment in the requisite state-of-the-art engineering and manufacturing tech-nology. Made under license from Mauser, each IBC involves three component parts,

INDUSTRY NEWS

IBC machine at Nampaks Megapak KZN unit

6 JUNE / JULY 2013

Massive new

According to Joel Sibanda, divisional managing director of Nampak Megapak, IBCs are the way of the future, particularly in terms of their ability to unlock improved supply chain ef cien-cies and sustainability outcomeswww.nampak.com

JUNE / JULY 2013

What is an IBC?IBCs effectively bridge the gap between large bulk transit containers and unitized consumer packaging. With average dimensions and weights ranging between approx. 70cm and 1.3m and 90kg and 1,200kg, IBCs present an attractive alternative to shipping containers for the transport and storage of bulk dry and wet goods.

The advantages of using IBC containers include low transit costs, ef cient space utilization during transit or storage, and good compatibility with a range of lling and discharge systems.

They are usually mounted on base units or placed within steel frame cages, which are sized to make them easy to move with standard material handling equipment such as pallet jacks and fork lifts. The containers themselves are usually made of various grades of plastic, composites, steel, and stainless steel. Many types of intermediate bulk container are also collapsible, allowing them to be folded up for easy storage.

The IBC is used to store and transport a broad range of dry and uid materials, including hazardous or dangerous goods where approved container types are used. Common intermediate bulk container-stored goods include chemicals and adhesives, liquid soaps, and loose components, as well as sugar and rice. As a matter of fact, IBC containers are suitable for most free- owing materials. Fluid cargos, particularly hazardous materials, are typically stored and transported in double-walled containers designed to contain spills.

The use of intermediate bulk containers holds several unique

advantages over conventional, large-capacity, cylindrical containers. These include ef cient space utilization as the containers can be hold more material for any given oor area than cylinder-type containers.

They are also a particularly cost effective way to transport bulk goods, as they are smaller than shipping containers yet allow suppliers to transport their goods in larger single volumes than the eventual consumer packaging units. This also allows buyers to package imported goods in country-speci c volumes and in packages printed in local languages. IBC containers are also designed to make use of standardized lling and discharge systems, further enhancing their convenience.

The massive blow moulding machine at the Megapak plant in Pinetown,

Durban, which produces the 1000-litre intermediate bulk containers

mould, supplied by Mauser, is able to achieve this dif cult demand. Wall thickness needs to be between 2-4mm throughout the container, with the corners of the containers posing a particular challenge. A special HD grade is used, neces-sitated by the need to reduce the risk of environmental stress cracking. The nal weight ranges between 16.5kg and 21kg, depending on wall thickness requirements.

The production of such large containers almost invariably involves a signi cant per-centage of tops and tails scrap, all of which is reprocessed and mingled in with the virgin material and recycled.

To give real meaning and effect to the promise and possibility of reusability, Nam-pak Megapak has partnered with Mausers reconditioning subsidiary, National Container Group (NCG). The service includes picking up empty and used IBCs from a customers premises, cleaning them thoroughly with the latest environmentally friendly processes and products, before removing any dents, inspect-ing them, testing them for leaks and returning them to the customers place of business for further lling and shipping. IBCs that cant be

recon-ditioned are recycled as pellets to man-ufacture other products.

At the same time, NCG operates a comprehensive collection and recondition-ing programme for IBCs of South African origin anywhere in the world. In this way, Nampak Megapak is able to provide the convenience and functionality of a world-class packaging system, while delivering a service to customer that bene ts the environment, says Sibanda.

The IBCs are then conveyed to a checking station where tests are carried out, following which they are placed in a

metal cage to ensure load stability

8 JUNE / JULY 2013

Austrias Alpla may manufacture for Unilever in SAALPLA of Austria may be taking over all of Unilever groups packaging production in South Africa, a development which is likely to come as an extreme shock to SAs top plastic and glass packaging manufacturers.

We hear that Alpla has taken up a site close to Unilevers massive new production zone in Anderbolt, Boksburg, and is preparing to set up to go into production.

This may be the result of a major tender analysis process conducted by Unilever recently. In the Operation Waterfall process, it analysed the prices offered by all the South African packaging groups which had been supplying it, and found that Alpla compared favourably namely, that its prices were lower.

Unilevers range of beverage, condiment, cosmetic, detergent and other products are supplied in an estimated 350 million plastic containers annually, making the group probably the preeminent brand company in Southern Africa, and also the one which has issued the largest tenders to SAs main packaging groups.

Alpla (Alpenplastiek) has been in operation since 1955 and operates 148 production plants in 39 countries prior to its rumored entry to the SA market. It handles production of all related packaging components internally, namely containers, closures and labelling.www.alpla.com; www.unilever.co.za

Offer to buy MCG injection divisionMCGs Plastic Injection Moulding Division has received an offer to purchase from Marlow Advisors and Sas n Private Equity.

The offer to buy 100% of the business has been accepted and the sale is now subject to regulatory approvals. It includes the names MCG, MCG Industries and MCG Injection Moulding Division, so the business will continue to trade under these names, if the process is approved, which is expected to happen in August.

MCG operates plants in Malvern, Johannesburg, and Montague Gardens in Cape Town; its closures business in Samrand was purchased last year by Boxmore International.

JUST BRIEFLY

Dream realised for De Abreu brothers

EURO Moulders has recently moved to larger and more practical premises, enabling the De Abreu brothers Joao and Jos to realize one of their key objectives.

A highly regarded manufacturer of injection, blow and PET moulds for a wide spectrum of applications, Euro Moulders is also involved in the injection moulding of its own range of proprietary Eurotainer containers and components.

For the brothers who bought the origi-nal Euro Moulders business in 2004, as a small entity in rented premises of some 300m, the move to their new self-owned home at 44 Pine Avenue, Primrose, is a signi cant milestone.

Its what we have dreamed about ever since the early days when the business comprised ve tool machines and em-ployed just two people, said Joao. We had no production facilities at that time

either. Now the company has 25 machines in the toolroom and eight injection mould-ers on the production side, ranging from 160 to 470 tons. We manufacture new and maintain and repair existing moulds produced by other manufacturers.

Joao and Jos bring to the industry over 30 years experience in the eld of mould design and manufacture and use CAD software to design and develop tooling for components and end products used in a comprehensive range of business sectors.

To provide their clients with a more holistic service, they network with and use the facilities of experts in their respective elds, who assist in the creation of 3D printed prototypes, hardening, cylindrical and pro le grinding and wire cutting. They also work in close contact with the techni-cal staff and laboratories of their various suppliers.

New premises for Euro Moulders

Nampak Flexibles new

gives competitive edge7-layer technology

SPEED to market gives Nampak Flexible, Africas leading exible packaging company, the competitive edge. To enhance this advantage and ensure its customers get more, the group recently made two strategic investments: a 7-layer lm line and a laser scoring machine.

With global markets demanding spe-cialty lms that offer increased shelf-life for packaged goods, there has been a trend towards lm manufacturers convert-ing to 3-layer extruders to produce stron-ger, more functional lms with the right polymers in the right place. While world trends are towards high barrier lms and superior moisture vapour performance, 5-layer machines cant do laminates and high barrier lms at the same time. However, the new 7-layer co-ex line, the

Group is rst to produce 7-layer lms in SA

INDUSTRY NEWS

rst in sub-Saharan Africa and the most advanced machine of its kind in Africa, al-lows Nampak Flexible to manufacture high barrier lms to world-class standards.

While wanting to drive pouch and liquid bag developments in Africa, the initial investment in the Windmller & Hlscher line was motivated by Nampak Flexible reaching capacity in its production of tradi-tional 3-layer lms and having to contract work out. A further consideration behind acquiring the line for the NP Flexible plant in Pinetown is that it produces at a rate of 550kgs per hour with an exceptionally high precision gauge control.

The Pinetown plant was modi ed to accommodate the towering 18-metre tall machine. The machine, supplied by W&H agent Ipex Machinery, started production on time and within budget in the rst week of December 2012.

Various meat and cheese products are currently packaged in 7-layer packaging, but these lms have up until now been

JUNE / JULY 2013 9

Joao and Jos de Abreu of Euro Moulders in their toolroom in Primrose

admin@euromoulders.co.za

imported. Nampak Flexible is hence the rst to produce 7-layer lms in South Af-rica. The lms include EVOH and/or nylon layers that prevent ingress of moisture and oxygen, which can increase the shelf life of the product from 2-3 days to up to six weeks, depending on several variables. This can be hugely bene cial in African

countries where refrigeration is an issue.The gauge of the lm and the individual

layers can be optimized consistently to pro-vide more even, high quality packaging.

Laser perforationThe second recent strategic investment by Nampak Flexible, in a micro laser perfora-tion system, allows it to make lms for easy opening of pouches, stick-packs and sachets. Easy opening goes to the root of packaging functionality and is an enhanced product feature that allows for the opening of packaging without tools.

Flexible packaging lm structures vary, depending on the product requirements, and the complexity of these structures often makes ease of opening a challenge. The introduction of laser perforation and scribing helps address this problem.

This patented micro laser perforation system can puncture up to 1.000.000 holes/second with truly minute hole sizes, from 50m down to as little as 300m diameter. The laser technology ensures a non-contact processing tool with minimum thermal in uence on the lm. There is also constant depth of laser on the scribing/scoring line and scoring may be set to however many layers are required: for example, for two lay-ers of a 4-layer laminate, without damaging the barrier of the packaging structure.

Both have an in-depth knowledge of the properties and applications in use of the various materials required for the different processes. These include polypropylene, ABS, acetyl, nylon ( lled and un lled), polyurethane and HIPS.

The rst thing one notices on entering the premises is the high standard of house-keeping: a true re ection of the work ethic that has been instilled in the people who make up Euro Moulders. The company em-ploys 25 fulltime staff. All training is under-taken in-house with Joao and Jos working side by side with entry level operators.

As participants in the National Tooling

Initiative Programme (NITP), Euro Mould-ers provides students with training during their practical courses. The owners of the company are fully committed to talent seek-ing and elevating the individuals skills. They pride themselves on staff retention with employees enjoying long years of service.

In production at any one time are contracts for the manufacture of HDPE cou-plings and utility boxes used in the telecom-munications industry, PU components used in the mining industry, soap dispensers made from ABS as well as the companys Eurotainer house brand range of PP food tubs in 250, 300 and 500ml sizes. The

moulds for the Eurotainers are made in the companys toolroom.

Fully automatedIn the fully automated tool room new moulds are being designed and developed and exist-ing moulds maintained and repaired for the manufacturing processes of plastic products ranging from industrial masks and helmets to bottles and uorescent lighting systems.

Our extensive client base includes several companies that have been with us from the beginning, said Jos. As a preferred suppli-er, we service most sectors of commerce and industry including major players in packaging, irrigation, automation, mine safety, mining equipment, cosmetics, pharmaceuticals, hygiene and home dcor as well as numer-ous independent tool rooms that outsource to Euro Moulders. Clients are situated across South Africa and in neighbouring states.

EURO MOULDERS, P. 011 974 9675

www.nampak.co.za

First in the country The new line, installed at the Nampak Flexibles plant in Pinetown, is the rst 7-layer lm system installed in sub-Saharan Africa

The high level barrier performance achieved by these multi-layer lms may result in lms which are currently

dif cult or even impossible to recycle, according to Annab Pretorius of SAPRO. EVOH and nylon are de nitely not recycling friendly, said Pretorius, who noted that other materials may also be used. Multi-material structures are not mechanically recyclable, which is what we do in SA. It may be different in Europe where they recycle in a number of other ways, she added.

RecyclingThe line runs at up to 550kgs/hr and achieves exceptionally high precision gauge control

The agent for Windmller & Hlscher is Ipex Machinery. www.ipex.co.za

www.astrapak.co.za

Extensive business review completed, two-year recovery programme underway

Astrapak is back! on new course, with new team

INDUSTRY NEWS

Time for turnaround Astrapak CEO Robin Moore (centre) with Renee Kirkham and group MD Manley Diedloff, the groups key nancial managers, at the shareholder meeting in Cape Town

ASTRAPAKS turnaround plan a process which is expected to take two years was sketched out at shareholder meetings addressed recently by new CEO, Robin Moore.

Moore joined Astrapak in November and has been very busy since, undertak-ing an extensive review of the business restructuring the groups management team. The results of this were presented at meetings in Johannesburg and Cape Town in May at which shareholders were outnumbered by press delegates. Theres far more interest now in Astrapaks performance within the industry: the group operates about 22 operating businesses (the gure is diminishing due to various rationalization options) and employs over 4000 people around the country. Many in the industry believe that the success of the turnaround process at Astrapak is vital for the overall health of the industry, and a reverse is not worth pondering.

Besides several challenges during 2012, this year started on a bad note for the group with the re at East Rand Plastics its biggest manufacturing unit causing signi cant damage to its Flexibles business. Fixed assets destroyed in the re totalled R56.3 million.

But momentum has been gathering

since. An extensive business review has been completed and a two-year recovery programme is under way, said Moore. Asset utilization studies had identi ed inef cient assets, resulting in signi cant write-downs.

The review also highlighted that the group has inherent strengths. We are the largest and best diversi ed plastic pack-aging company in South Africa, supported with generally modern, well equipped operations, leading market positions and a strong and loyal customer-base. Our information systems are world class, he added.

The group in fact spent R1.3-billion on capex projects between 2008 and 2012, creating capacity which gives it the ability to lead in several sectors.

Revenue from continuing operations of R2.615 billion (2012: R 2.518 billion) was up 3.9% against the comparative period. Higher turnover was driven principally by a 4.2% increase in volumes. But a fall in the gross pro t percentage from 20.5% to 17.4% indicated the dif culty of recover-ing added costs in a highly competitive market.

Losses from discontinued operations related to City Pack in Johannesburg and Ultrapak in East London, which were clas-si ed as discontinued operations during 2012.

Organisational redesign nears completionWITH OVER 700 applications received for the 22 management positions at Astrapak offered earlier this year, the group was able to pick selectively and, not surprisingly, chose to stick with what it new best and promote internally.

The 22 positions on offer were reduced by four to 18 after the four Flexible ap-pointments were put on hold as a result of the East Rand Plastics re. Fourteen of the 18 positions had been lled at the time of writing, including 11 internal promotions and three external appoint-ments.

The organisational redesign began in January led by CEO Rob Moore (ex-Nampak), who had joined Astra in November last year, and group MD Man-

ley Diedloff. Five focussed divisions have been created, each given critical mass by the merging of previously independently run operations: Moulding (comprising Cinqplast

Denver, JJ Precision, Pak2000, Plastech, Plastop Bronkhorstspruit, Plastop KZN and Plastop Weener)

PET (Cinqpet Denver and Hilfort) Thermoforming (Plastform and

Thermopac) Flexible (Barrier, East Rand Plastics,

Packaging Consultants and Peninsula Packaging)

Development (Alex White, Knilam, Consupaq, Geotex Plusnet and Marcom)

The management appointments in-

clude Gareth Elcox as MD of the Mould-ing Division (previously KZN regional chief executive); Henk de Klerk as MD of the Forming Division (previously Cape regional chief executive); Grant Mathews as MD of the PET Division (previously GM of Cinqpet.); Brent Grant as best practice and operational excellence executive (previously regional manufac-turing executive: Cape); and Raymond Moussa as group sales executive (previ-ously business development manager).

Nawaaz Kalick, who was formerly with Nampak (where he was divisional supply chain and procurement manager for Nampaks Flexible Division), has been appointed group procurement and inbound supply executive.

JUN

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2014 would be about implementing the business review completed in 2012 and the start of a journey of improvement, Moore said. Operational disciplines, proper human capital deployment, market awareness and good communication are, we believe, fundamental recovery components. We are con dent nancial performance will begin to positively re ect our strategic and operational initiatives in terms of both the quality and value of earnings in the year ahead, he added.

Head OfficeBayer (Pty) LtdP.O. Box 143, Isando 160027 Wrench Road, IsandoTelephone: (011) 921-5108 Fax: (011) 921-5118Email: graham.sandilands@bayer.comWebsite: www.bayermaterialscience.com

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VISIT US INHALL 6

STAND 6A 75

More than 4800 tons of Safripols iMPACT PE 100 used in one of Marleys largest single pipe projects

line, including over 98km of 630mm diam-eter pressure class 6 (PN6) pipe and about 2km of 630mm pressure class 10 (PN10) pipe in one of its largest contributions to a single project to date.

All the pipe was manufactured in iMPACT 100 HDPE from Safripol, South Africas premier pipe resin.

The contract forms part of Angolas master transfrontier plan with Namibia to supply safe drinking water. Only a relatively small percentage of the rural

population in Angola, estimated at as low as 15-20%, has the advantage of dedicated water supply, while the rest of the population generally rely on walking often long distances daily to retrieve water. As a consequence, water-borne diseases result in numerous health issues in these communities.

The contract, commissioned by the Angolan Ministry of Energy & Water, will bene t about 250 000 people with fresh drinking water daily.

12 JUNE / JULY 2013

The 630mm diameter pipe was laid alongside a road over about 100kms in southern Angola, a situation which presents the advantage that the joining operation (welding the 15m lengths of pipe together) was conducted on relatively level ground

MORE than 400 truckloads of pipe weighing about 4800 tons manufactured by Marley Infra-structure has been delivered by road to Angola and installed for a major project to supply water for people who up until now have not enjoyed access to tap water.

Johannesburg-based Marley was awarded the contract, with an estimated value US$15-million, by Spanish company UTE Befesa-Riogersa to supply safe drink-ing water to underprivileged communities in Cunene province in the south of Angola.

The project involves the extraction of water from the Cunene River (the Angola-Namibia border), construction of a water treatment plant at Xangongo and then the construction of a 100km-long pipeline to supply the water to a number of communi-ties. Marley supplied the pipe for the entire

INDUSTRY NEWS

Marleycompletes massive Angola pipe project

www.marleypipesystems.co.za

JUNE / JULY 2013

iMPACT 100THE high-density polyethylene material used in the Angola contract, iMPACT 100, was introduced by Safripol in 2011, after a lengthy development process.

Only a relatively small group of world polyole n manufacturers can produce pipe resins with superior slow crack growth (SCG) as well as good rapid crack propagation (RCP) properties, as required by the international standards for water and gas. The PE100 certi ed resin is a bimodal HDPE which allows the molecular structure of the polyethylene to be tailored to produce an optimum molecular weight distribution in order to produce pipe with excellent processability and mechanical properties.

The Safripol material allows for higher design stresses, allowing operation at higher pressures or even wall thinning compared to previous generation pipe materials.

The new-generation PE100+ pipe material was rst produced in Sasolburg in October 2009 and was tested at accredited laboratories for compliance to ISO standards, which showed that it met all the requirements for both high-pressure water pipes (ISO 4427:2007) and gas pipes according to ISO 4437:2007.

www.safripol.co.za

Logistically, moving the over 400 truckloads of pipe which

was supplied in 15m lengths from the Reef to southern

Angola was no easy feat: Marley partnered with WP Transport to

ensure the cargos safe passage

The project involves the construction of a 100km-long pipeline over 98km of 630mm

diameter pressure class 6 (PN6) pipe and about 2km of 630mm pressure class 10 (PN10) pipe in one of Marleys largest contributions to a single

project to date. All the pipe was manufactured in iMPACT 100 HDPE from Safripol

ChallengesThe project was not without its challenges, however. Stringent tests were conducted prior to commencement, according to the exacting requirements of the client, to evaluate the most suitable pipe sup-plier. Marleys pipes came out on top in the testing/tender process. Its range of HDPE pipe are SAPPMA-endorsed and manufactured according to sound quality standards, carrying the SABS mark for SANS ISO 4427.

Marley MD Louis Albertyn and his team had to assess the critical factors and risks that the project would present.

Logistically, moving the over 400 truck-loads of pipe which was supplied in 15m lengths from the Reef to southern Ango-la was no easy feat: Marley partnered with WP Transport to ensure the cargos safe passage, taking into consideration proper crating and stacking methods to ensure

minimal roll during transportation.The biggest challenge, however,

occurred once the pipes had actually reached the Angolan border: not only did Marley and Befesa (UTE Befesa-Rioger-sa is the Spanish company that Marley is working with on the Angola project) have to make sure that all documentation for every truck was 100% in order, but WP Transport also had to appoint a dedicated person to handle the time-consuming and rigorous customs process the result of which was costly delays and standing time.

Ultimately, however, the project is prov-ing to be a major success for both Marley and material supplier Safripol, which has been able to put its iMPACT PE100 mate-rial to the test it was designed for.

It wasnt just about business, but an opportunity to uplift a community with the most fundamental resource of life water! added Albertyn.

www.safripol.com

www.formapackaging.co.za

Big machine can run at high speed, and use less power

big drumForma enters marketINDUSTRY NEWS

Drum beat! Brian Fetting with production now going into the market

Brian Fetting of Forma Packaging and Colin Whitaker of machine supplier Plasquip

Big machine The big Kai Mei machine runs at up to 400kgs/hr and can produce a substantial number of drums from 200 up to 250 litres a month

FORMA Packaging of Johannesburg has just commissioned its 250-litre drum manufacturing machine.

The installation of the big Kai Mei machine was, happily, a virtual plug and play process for Brian Fetting and the Forma team in Wadeville the line was in production just three days after the container arrived.

Kai Mei, of Taiwan, has been supply-ing blow moulding machines to South African convertors for over a decade, mainly for the production of small to medium-sized containers as well as some larger machines for the production of technical blow moulded parts such as toys and boxes. The step up, with this far larger system, for the production of drums from 200 to 250 litres capacity where wall thickness and integrity are vital appears to have been handled seamlessly.

One of the big plusses of the new machine is that it uses noticeably less power than comparable machines have to date, coming in at about 210 amps.

Another plus is that just one operator is required per shift.

The machine processes up to 400kgs of HD an hour, fed by a Motan gravimet-ric blender on the platform above. All the regrind is reprocessed on site and fed back into the process immediately.

It can also produce open top versions of the drums, where the lids are injection moulded in a separate operation.

Forma is a new venture by Fet-ting, who has been involved in large container manufacture for nearly 20 years. The project which includes the installation of chillers, compressors and other ancillary equipment as well as the necessary R+D involved a substantial investment.

The intention, says Fetting, is to be able to compete in the big drum market in Southern Africa, which is why it needed the machine to get into produc-tion quickly.

The drums have been submitted for tough UN standards compliance testing including leak, 28-day stack and drop tests and passed, giving Forma of cial entry to the local big drum market.

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BASF's Offi cial Distributor:Lake International Technologies Sherisha Ramruthan Sherisha.Ramruthan@lake.co.zaTel: +27 11 409 5000 (switchboard)Fax: +27 11 388 6423 (direct )CALL CENTRE: 0860 99 00 11

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Fresh portfolio.Colour your world!

BASF South Africa (Pty) Ltd (Plastic Additives)

Charis Lewis Tel: +27 11 203 2596 Cell: +27 71 670 2407 Fax: +27 11 203 2602

E-mail: charis.lewis@basf.com

Experience of mold shows has been different in various countries

IN SA GOING?

INDUSTRY NEWS

AFRIMOLD 2013, the trade fair aimed at the plastic and metal component manufacturing sector, received a lukewarm response from the industry in early June.

Coming so shortly after Propak Africa in March, which achieved increased delegate and exhibitor numbers, this wasnt entirely surprising the guys are busy in their facto-ries and time isnt on tap. Having said that, Propak and its satellite show Pro-Plas were not necessarily a rival, but rather compli-mentary for Afrimold.

But perhaps Afrimold had to trim down to nd its true identity? That, undoubtedly, looks like its the design and toolmaking sector. These sectors lie at the heart of the industry, relating particularly to the blow and injection moulding businesses as well as to the manufacture of extrusion dies. Basi-cally, Afrimold looks at the whole process of product development, from concept to completion.

Design package and solutions suppliers were well represented at the 3-day event at Nasrec in early June, but South Africas plastic toolmakers were nowhere to be seen. That also wasnt surprising, as most

Where is technical moulding

of SAs toolmakers have for long used word of mouth as their chief marketing tool. Now, with the increasing popularity of foreign tool-makers (their places at Afrimold were lled by Chinese and Portuguese toolmakers, although not many of them), our toolmakers are beginning to look at well, possibly being more outward looking.

A further factor which may have bedev-iled this years edition of Afrimold was its positioning earlier in the year (it was held in October in 2012, and exhibitors then inti-mated it was too late in the year), so it was moved forward to June, which meant the last event was held just nine months prior. And its positioning at the National Expo Centre didnt appear to be popular either: the location of such a specialised event at the massive show grounds left the impres-sion that it was small.

But the fact of the matter is that the tech-nical moulding sector in southern Africa has been going slowly for a number of years. The packaging sector has, relatively, in-creased its share of SAs total polymer con-sumption market from an estimated 51% to as much as 55%. Although packaging containers have shown growth, the biggest increase is almost certainly in packaging

Afrimold organiser Ron McLarty with Roy Miller of Miller Methods. Ron is committed to developing Afrimold into a platform for the product design and toolmaking sector in Southern Africa

lm and printing. Technical moulding con-tracts have frequently been going to the Far East, where manufacturers offer relatively high production and tooling skills as well as better turnaround times and very competi-tive prices.

Afrimold is presented as part of Demat of Germanys global mold shows, which include the very popular Euromold, increas-ingly popular Brasilmold and Asiamold (Shanghai) and related shows in the USA, India, the UAE (Sharjah), Egypt, Japan and Russia. The experience in each country has been different, with the events in Germany and Brazil appearing to be most popular.

Afrimold numbers down but poses question:

CRPM stand The Centre for Rapid Prototyping & Manufactur-ing (CRPM) at the Central University of Technology in the Free State has become one of the leaders in the area of product devel-opment and prototype generation in South Africa. Here we see Marinus Potgieter, Jenny van Rensburg and Andre Heydenrych of CRPM, which offers its services to the industry nationallywww.cut.ac.za/faculty_pages/crpm/

Armoloy Evert Bosman of Armoloy SA showed the companys specialised TDC coatings abilities. TDC stands for thin dense coatings, which are chrome coatings applied through an electro coating process, under licence from Armoloy of the USA. In the plas-tics and rubber sectors, this refers chie y to injection and blow moulds. Advantages include reduced wear and friction, higher resistance to corrosion and improved release performance.www.armoloysa.co.za

Ireen Modipa, Patrick Marasi and Olorato Mothibatsela of the Institute for Advanced Tooling on their stand.

Based at Tshwane University of Tech-nologys Soshanguve campus, the

IAT is involved in skills development and technology transfer to accelerate

growth in the tooling sector; Patrick is the training coordinator

www.tut.ac.za

Although it has similar demographics, Brazil has a far bigger plastics industry than South Africas, and appears to have a large group of mould makers who also tender for North American projects.

But South Africa has a proud history and culture of mould making, with several world- rsts and a signi cant number of high-stan-dard blow and injection moulding companies in operation.

So, although the turnout at Afrimold 2013 was disappointing, there remains hope that the show will nd its right place and ourish. Ideal delegates for such a moulding show would appear to be brand owners, designers and plastic convertors themselves (particu-larly blow and injection moulding entrepre-neurs), and whilst quite a number of such individuals did attend this year, one suspects that hosting the show in Sandton the busi-ness capital of southern Africa would be more suitable. Its to be hoped the puzzle will be solved, and that the organisers will nd how to empower South Africas mould mak-ers to entertain clients at the show in future.

www.afrimold.co.za

www.demat.de

GECO mould One of the Portuguese mould makers to exhibit at Afrimold, Geco Moldes manufactures thermoplas-tic, thermo-resin, two-component and gas-assisted injection moulds, including large and complex moulds for automotive components, and has been in operation for over four de-cades, 42 years. Here are commercial director Jorge Miguel and Ms Sidnia Juma on the stand. Geco produces moulds for interior, exterior and under-the-hood components. It is active particularly in Brazil, Mexico and the UK and, from its base in Telheiro, Portugal, runs of ces in Germany, the USA and Russia. www.geco-moldes.pt

Save up to 11% on electricity consump-tion with oil! Engens new Hydrokin ESF hydraulic oil can achieve a reduc-tion in your equipments power con-sumption through superior lubrication and lower frictional coef cient. These new oils operate at lower temperatures. Ashwin Perumal of Engen Petroleum discussed the surprising features of these lubricants at Afrimold.www.engenoil.com

Rothco Tim Gilbert, Diane Busch, Nicky Smit and Wesley Williams of ROTHCO, part of Edwin Roth Company, presented their design and 3D printing solutions. Rothco represents Stratasys, which following its recent purchase of Objet of Israel, is the leader in this sector. Established in 1952, Edwin Roth is the oldest machine tool com-pany in South Africa. The design and prototype development technology is thus a value-added option for Edwin Roths machine tool and plastic or metal processing customerswww.edwinroth.co.za

Steinhobel pulls no punchesYouve got to be 150% into it if you want to be a designer

BRIAN Steinhobel wasnt in a mood to hold back in his presentation at the conference that ran in parallel with Afrimold as a result of which he was also the most popular speaker.

Heres a man whos not scared to stick his neck out and challenge conventional wisdom. Many in the audience were aspirant designers and he was quick to disabuse

them of notions of a cushy road ahead.If youre not 150% into it, you may

as well give up now, was one of his opening remarks. But design is a serious business, and Brian believes designers need to observe more and look further and deeper if they plan to come up with designs that will last.

Hes not that impressed with South Africas mould makers either, and sug-gested that many of SAs mould makers change their minds the moment a good product comes along and, instead of designing and making moulds, switch to production. This isnt the case internation-ally, he said.

Keynote Brian Steinhobel, one of SAs best known de-signers, was keynote speaker at the technical conference at Afrimold and he certainly didnt let down, with some challenging and whacky views about design in Africa; here we see him with Alessandra Bosco of HRS ow of Italy, who gave a presentation about her companys hot runner systems; and conference chairman/convenor Bob Bond.

Designs from the Steinhobel stable: www.steinhobel.co.za

Getting Creative Louis Avenant (third from left) of Creative Factory who gave a very interesting presentation, and Roy Miller (centre) of Miller Methods with the CF team www.creativefactory.co.za

FLEX ow electrical cylinderAccurate, stable and easy-to-use

HRS ow of Italy showed its FLEX ow elec-trically driven hot runner system at Afrimold.

The system is designed to accurately ad-just valve pins for large surface applications such as bumpers, instrument panels, door panels that require sequential cascade moulding. The technology is also suited for optical parts, whatever the size. FLEX ow guarantees a completely independent man-agement of each pin during the opening and closing stages by precisely controlling each valve pins position, acceleration, velocity and stroke.

The FLEX ow system is able to ne tune where a complex lling pattern balance is required, even for glass bre material where structural problems could arise.

Moreover it meets the requirements of

moulding applications within a narrow process window and engineered material. The total absence of oil makes it suitable for clean rooms.

www.hrs ow.com

THE LOCAL AGENT FOR HRSFLOW IS RGC ENGINEERING OF JOHANNESBURG. WWW.RGCENGINEERING.CO.ZA

HRS ow is part of INglass SpA of Italy, a leader in innovative technology for tooling and hot runner systems for, especially, automotive applications. It was one of the rst to develop an integrated system comprising mould, hot runner system and process control unit capable of producing large fault-free polycarbonate mouldings. It was founded as Incos (Industria Costruzione Stampi) in 1987 by current chairman Maurizio Bazzo, specializing in moulds for automotive lighting.

TDM Solutions Jim Plester, Wes Hogan and Adriaan van der Walt on the TDM Solutions stand. TDM supplies the ZW3D CAD/CAM software for 3D modelling, mould design and machining and VERICUT software, has become the industry standard for simulating CNC machining in order to detect errors, potential collisions, or areas of inef ciency. In operation for over 25 years, the Johannesburg company is one of the experienced suppliers in the sector www.tdmsolutions.co.za

Laser weld and mobile Clyde Eras-mus of the new company Laser Mould & Die, of Port Elizabeth, demonstrated how his welding system can be used to repair moulds or other metal equipment. Clyde operates a mobile unit, and is hence available to repair moulds and dies as well as other metal processing equipment across the Eastern Cape regionwww.laserweld.co.za

Taiwan connection Dave Moore and Garth Maccallum of Mould Base SA visited the joint stand of SSB and TaiStar of Taiwan. Here we see them with Vanessa Chen of TaiStar, a manu-facturer of a complete range of mould accessories, and Lotus Chi of SSB (Steady Stream Business), which manufacturers moulds as well as injection moulding machines and total solutions for closures www.sld.com.tw; www.steady-stream.com

Lowrie Sharp joined Margie and Russell Oosterlaak of 3D Solids Additive Manufacturing at the exhibitor party. 3D is one of the agents for Stratasys, a global leader in 3D printing technology, including the printers, materials and systems. www.stratasys.com

INDUSTRY NEWS

JUNE / JULY 2013

Afrimold

Italian hot runners Alessandra Bosco (second from left) and Osvaldo Carloni (right) of HRS-INglass of Italy, a manufacturer of hot runner systems, were shown around by Craig Howe (second from right) of RGC Engineering of Johannesburg, the groups local agent. Also at the show was Mac Guo, who works with the company in China

The system allows for optimal adjust-ment of pin speed and stroke pro le to remove possible pressure jump

Hot runner system for an automotive bumper system equipped with the new FLEX ow electrical cylinder

Plastics will bene t from primary manufacturers bringing work back to North America

further diminishing margins. These include: trips to and from China by North Ameri-

can managers to check operations; rising local taxes and tariffs; the time and growing cost of product

transit (which is almost always by sea) to North America and elsewhere; and the frequent reengineer-

ing of moulds to correct mistakes or poor quality work.This last item not only

adds cost but delays time-to-market schedules, which affects sales and a companys competitive advantage.

In the early days of off-shore manufacturing, when China-made products were touted as yielding a 30-40% total cost advantage over North American-made goods largely because of inexpensive labour, quality problems, transit time and travel to and from China by managers were not viewed as prohibitive in the overall cost equation.

As an example of how cheap labour was

in China, a German machinery execu-tive in 1996 visited a plant his company was renovating in Beijing for production of extrusion equipment. The factory oor was being covered with 1 in2 (6.45 cm2) ceramic tiles. Rather than install the tiles in prefabricated sheet form, as would have

been done in the West, he said that dozens of Chinese workers were laying them by hand for less money than it would have cost back in Germany.

Advantage shifts from ChinaHowever, costs between the US and China now are head-ing toward equilibrium, says David Sievers, principal, strategy and

operations practice at The Hackett Group, a consulting rm based in Miami, Florida, that analyses reshoring.

When all expenses are factored, Sievers says it now costs a US manufacturer 84 on the dollar to make and ship products

In reality, the savings, while sizeable, never matched expectations. Now that labour costs, tariffs and related production expenses in China are rising, manufactur-ing is moving again this time back to North America in a trend called reshoring.

Reshoring was identi ed in 2012 as a growing transfer of select manufacturing operations from China and other low-cost countries back to the US and Canada. Select in this case means advanced manufacturing: high-tech or complex parts that require skilled product design and mould and tool development, along with sophisticated moulding, extrusion and other process capabilities.

High costs affect productionThe factors that sparked reshoring are straightforward.

China is becoming too expensive in labour and other costs to sustain the pro t margins North American companies want especially the plastics processors and mould-makers that set up operations there to serve OEM customers, generate regional business or ship products to domestic markets.

Moreover, long-standing expenses are

INDUSTRY NEWS

Reshoring productionfrom China to the US will bene t plastics industry

THE great migration of manufacturing from North America to China began 20 years ago when companies, believing they could reduce production costs, began establishing facilities and working with third parties there to bene t from special economic zones, new industrial infrastructure, favourable tariffs, low currency exchange rates and, importantly, cheap labour. This article looks at how things have developed over the years and the growing trend towards reshoring manufacturing to North America.

IN light of the growing South African PET industry, and as a leading local producer of PET, Hosaf is pro-actively monitoring its capacity requirements and evaluating alternatives available to address these requirements - one of which to further increase its production capacity by investing in another expansion of the plant.

Steven Bird, Hosaf sales and marketing director, says that Hosaf has over the years invested substantial capital in estab-lishing and upgrading its plant to cater for the increasing de-mand for PET. In 2009 the plant went through a major upgrade and expansion which enabled Hosaf to implement multiple production ef ciencies. This, together with the installation of the SSP86 plant increased the annual production capacity to the

Hosaf may increase production to meet

growing PET demandExtensive consultations with global

producers, potential technology partners to assess best practice

The Hosaf plant over the years Hosaf has invested substantial capital in establishing and upgrading its plant to cater for the increasing de-mand for PET. In 2009 the plant went through a major upgrade and ex-pansion which enabled Hosaf to implement multiple production ef cien-cies. This, together with the installation of the SSP86 plant increased the annual production capacity to the current 130 000 tons a year

opportunities speci cally, says Michel Janssen, chief research of cer, but its reasonable to ex-pect that plastics will bene t from primary manu-facturers bringing work back to North America.

Plastics stand to gainAnother analyst, Boston Consulting Group of Boston, Massachusetts, identi es seven manufacturing sectors as near a tipping point when it comes to reshoring. One of these is plastics and rubber products. But the sectors also include areas where plas-tics are extensively used transportation, appliances, electrical equipment, comput-ers and electronics.

In a report released in March, Boston Consulting Group states that 67% of respondents in the plastics and rubber products sector who were interviewed in February expect that their companies will reshore production from China to the US.

Of the 106 companies from different industries that participated in the report, 37% with sales of more than $1 billion were planning to reshore or actively con-sidering such a move. Among companies with more than $10 billion in sales, that response rose to 48%.

This would have a ripple effect on related areas such as employment, capital investment, procurement of equipment and technology, and sales of materials.

Janssen, however, advises caution when it comes to predicting bene ts in these areas, especially employment.

Work is coming back, he says, though this wont include all of the jobs that were

lost. While af rming that reshoring is a real trend, he believes that its impact on employment will be nuanced. In other words, jobs are going to be added but the numbers may not be as strong as anticipated.

Reshoring has generated 50,000 US manufacturing jobs across all industries in the past three years 10% of new jobs in this sector and could result in 500,000 new manufacturing jobs by 2015.

Harry Moser, the Reshoring InitiativeHarry Moser, who founded The Reshor-ing Initiative in Kildeer, Illinois, near Chica-go, believes that reshoring has generated 50,000 US manufacturing jobs across all industries in the past three years 10% of new jobs in this sector and could result in 500,000 new manufacturing jobs by 2015.

To promote his message that manu-facturing in the US is more economi-cal than production in China when all factors are considered, Moser developed cost-analysis software called Total Cost of Ownership (TCO), which is free to registered users at his website. This lets decision-makers evaluate the real price of manufacturing in China by comparing numerous cost factors. Moser says that if more companies analyse their offshore

current level of around 130 000 tons of PET a year.

At the time of planning the 2009 expansion, it was envisaged that the additional capacity created would be suf cient to meet the needs of the growing South African PET industry until 2018. However, despite the global economic contraction, since the previous expansion, the PET industry has shown demand growth in excess of 7% per annum. This growth is expected to continue.

Such further expansion would include investing in the latest technologies available, optimising the plant size and layout, consider-ing logistical requirements as well as focussing on the environmental impact of such expan-sion, says Bird.

He adds that in evaluating all these factors, Hosaf has had extensive consultations with

various global producers and potential technology partners, including visits to a number of global facilities to assess best practices.

An expansion of this magnitude requires extensive planning and the timing for its implementation is an important part of the planning process. Hosaf is actively investigating the opportunity to increase capacity, whilst constantly monitoring the capacity requirements to identify the most appropriate time to present such proposal for approval, Bird explains.

Hosaf manufacture four PET grades: The standard Cazeden T86 with IV 0.83 and its variant T96 with IV 0.86. Bird explains that the latter was brought out to assist plastics converters using recycled PET as recycled material resin available www.hosaf.co.za

currently in SA has a lower IV of around 0.75. The third type is Polyclear 1101, a fast re-heat made under licence from Invista. This is the principal resin for CSD. The fourth grade is the Cazeden Biopet manufactured for Coca Cola where the MEG portion is derived from plants and not oil.

Hosaf do not manufacture bre polymers any longer.

Our market is approximately 68% CSD/water, 10% edible oil, 10% household and 10% sheeting with cosmetics making up the remaining 2%. The Polyclear 1101 is by far our biggest volume given CSD domi-nance of PET end use, adds Bird.

back to North America from China. At this level its a toss-up as to whether any economic bene t is realised from manufacturing in China.

Wages in China have been rising at an an-nual rate of 15-18%, and while workers in pro-cessing plants still make much less than their counterparts in North America, the advantage of cheap labour in China is ending.

A key driver here, and arguably the factor that has generated most attention among deci-sion makers, is labour cost. And while workers in mould and tooling shops and processing plants still make much less than their coun-terparts in North America, the advantage of cheap labour in China is ending.

There are rising costs in other areas. Many tax incentives that China offered to foreign manufacturers are expiring, energy to operate plants is expensive, and shipping costs are increasing.

Sievers refers to all of these expenses as part of total landed cost (TLC).

Other expenses include: capital investments in equipment

and facilities; production costs; handling and inventory; transit to a port; tariffs and other taxes; insurance and shipping; receiving and distribution in North America; product inspections; correcting quality problems; and, of course; labour.

The 16% differential between TLC and US production expenses, Sievers says, was reached this year. He expects it will result in many companies reshoring production to North America.

Among the industries that bene t from this will be plastics, especially mould makers and processors, the industrys front line in building business.

The Hackett Group hasnt looked at plastics

Made in China labels have become commonplace in virtually all markets but now, as the author suggests, a number of top brand-owners have begun to move production back to the West

manufacturing operations with TCO soft-ware, they will see that savings based on product price alone evaporate rapidly.

Wage and currency changes are over-whelmingly the reasons that manufacturers consider reshoring, based on data Moser collected. Other factors include quality and rework issues, delivery delays, shipping costs, multiple trips to and from a Chinese production plant by manag-ers, inventory disputes, costs that emerge once production has started, and com-munication problems.

Moser believes that if all manufacturers use TCO software, and if wage trends continue rising in China, as expected, its realistic to expect that those 500,000 US manufacturing jobs will be created by 2015. And this doesnt account for the equal number of support jobs that would be gener-ated as a result.

Before this can happen, he concedes, there needs to be a change in how corpo-

rate decision makers analyse business and cost opportunities, along with the param-eters on which they base manufacturing strategies. It could, Moser remarks, take more time than it should.

Or maybe not, since one aspect of operations in North America

that is also in uencing reshoring is the growing

productivity of work-ers and efforts by large companies to reduce costs further. In March, The Hackett Group re-leased a study that states US

manufacturers in all sectors are targeting

an aggressive 1.5% reduction in cost of goods

(COG) sold for 2013 in an effort to drive margin growth.

Productivity gains in North AmericaA major factor behind this, according to the consultant, is continuing advances in internal manufacturing productivity, which could account for 50% of cost reductions.

In a statement, The Hackett Group reports that outsourcing was aggressively

used through 2011 by many companies to reduce manufacturing costs. Data show that in 2011, the average COG reduction by companies was 0.3%. The shift away from outsourcing as a cost cutting strategy and toward internal productivity began in 2012, when companies increased total cost-reduction efforts by a factor of ve to 1.5% that year. If successful in their 1.5% total COG reduction goal in 2013, companies will have slashed production costs tenfold in only two years.

Among the reduction targets this year that should contribute to total declines in COG are an anticipated 1.7% drop in internal manufacturing costs and a 0.5% cut in materials costs both of which follow the downward trend of 2012, when companies cut internal manufacturing costs by 1.8% and materials expenditures by 0.3%.

Meanwhile, favourable energy prices and stable aggregate demand reduced logistics costs by 1.8% last year and warehousing costs by 1.5%. Hackett expects additional savings of 2% in logistics and 1.7% in warehousing costs this year.

Ironically, sluggish economies in many countries are partly behind these achievements. Hackett Group says that relatively stable GDPs give manufacturers a clear picture of business demand and allow

INDUSTRY NEWS

Among the industries that bene t

from this will be plastics, especially mould makers and

processors, the industrys front line

in the building business.

JUNE / JULY 2013

Mould makers, processors and equipment suppliers watch reshoring play out daily.

Conery Manufacturing Inc, an Ashland, Ohio-based producer of industrial and other parts, is opening an injection moulding plant after reshoring production from China.

Chris Shafer, vice president, says the plant, called Hedstrom Injection, opens in April. The 2,322 m2 facility starts operations with eight injection moulding machines and has room for eight more. Conery had moulds and parts made in China for 16 years.

We initially saved money, Shafer remarks, but recently began to notice that prices were starting to climb due to freight costs, taxes and labour.

The company decided to reshore much of its manufacturing to the US, where he expects bene ts ranging from lower total product cost to improvements in mould qual-ity and performance.

Unique Tool and Gauge, a Canadian mould maker in Windsor, Ontario, that does 95% of its work for automotive suppliers, is seeing more interest from customers in hav-ing moulds built in North America. The rea-son for this sizeable shift, says company president Darcy King, is the expectation that

Processors see advantagesquality is more consistent despite the initial higher price.

Our customers main job is making parts. If a lot of preventive maintenance is needed for their moulds, they will be more costly to run and that will affect their bottom line, he says. This metric is being looked at more closely.

At equipment supplier Wittmann Bat-tenfeld in Torrington, Connecticut, national sales manager Sonny Morneault says reshoring is increasingly evident among customers, especially custom moulders. Medical, electronics and automotive seem to be the main markets for reshoring, and moulders are adding business as a result.

One of my customers lost $10 million of business to China, he remarks, but has gotten back $2 million in the past two years. He thinks he will get all $10 million back, and more.

A year ago you didnt hear much about reshoring, remarks Steve Petrakis, vice president of US and Canadian sales at auxiliaries supplier Conair of Cranberry Township, Pennsylvania. Now, based on what one representative in California tells him, 15% of new equipment business is for projects from China.

In discussing reshoring and the persistent quality problems that dogged much though not all of the work from China, Pet-rakis says that for many years cost bene ts overrode quality concerns at companies. But now that the cost of production there is catching up with North America, manufac-turing in China is becoming problematic, especially with no signi cant or consistent improvements in quality and other key areas.

For almost 20 years China has been touted as the future of manufacturing and portrayed as Goliath on an unstoppable global juggernaut. Reshoring demonstrates that an ongoing commitment to productiv-ity and cost-cutting, along with core values of product quality and customer service, make a better business model for sustain-able growth than a strategy based almost entirely on price.

VIRGIN POLYMERS & RECYCLED MATERIAL HDPE LDPE LLDPE PP PVC EVA PET Natural & Synthetic Rubber

Masterbatch Additives & Inks Purging Compounds Chemicals & Solvents

DISTRIBUTION AGENT INTO AFRICAContact: Tel: +27 11 803 0333 Fax: +27 11 803 0332 Cell: 0082 604 5926 Email: safrique@safrique.com

50 Wessels Road, Rivonia, Gauteng, South Africa

Reshorings role is evident in foreign companies that are investing in US plants to achieve cost-ef-ciencies in export. Among those cited by Boston Consulting Group are Toyota, which is manufactur-ing Camry sedans in Georgetown, Kentucky

them to make precise plans when it comes to allocating capacity, inventory and sales and presumably, to make decisions about the viability of reshoring.

In fact, greater productivity, cost reductions and reshoring are expected to increase export activity and add 2.5 million to 5 million US jobs by the end of the decade, according to Boston Consulting Group.

Cost reductions, coupled with comparatively low prices on a global basis for electricity and natural gas, could by 2015 give the US an export cost advantage of 5 to 25% over Germany, Italy, France and the UK, as well as Japan.

Boston Consulting GroupIn a study released last year, the company stated that cost reductions, coupled with comparatively low prices on a global basis for electricity and natural gas, could by 2015 give the US an export cost advantage of 5 to 25% over Germany, Italy, France and the UK, as well as Japan.

The consultant believes that this would result in the US taking an export share of 2-4% from the four European countries and

JUNE / JULY 2013

3-7% from Japan by the end of the decade. This in turn would increase US export revenue from these countries by $90 billion and globally by $130 billion.

The US is becoming one of the lowest-cost producers in the developed world, and companies in Europe and Japan are taking notice, comments Harold Sirkin, a senior partner at Boston Consulting Group, in a statement about the report.

Reshorings role here is evident in the North American companies that are bring-ing manufacturing back from China. Also in foreign companies that are investing in US plants current or planned to achieve cost-efciencies in export. Among those cited by Boston Consulting Group are Toyota, which is manufacturing Camry se-dans in Georgetown, Kentucky, and Sienna minivans in Princeton, Indiana, both for export to South Korea; and Honda and Nis-san, which plan to increase vehicle exports from plants in Marysville, Ohio (Honda), and Smyrna, Tennessee, and Canton, Missis-sippi (Nissan).

All of these companies are, of course, major users of plastics in their vehicles. Incidentally, as regards Toyota, the distance

from Japan to South Korea is 650km, while the distance from Princeton, Indiana, to South Korea is 9,700km. The cost savings from US-based manufacturing is clearly compelling.

THIS ARTICLE WAS ISSUED BY THE PRESS OFFICE OF THE K2013 TRADE FAIR FOR PLASTICS AND RUBBER, WHICH TAKES PLACE IN DSSELDORF, GERMANY, ON 16-23 OCTOBER.

INDUSTRY NEWS

Global colour, additive supplier gets involved in Africa

Ampacetopens SA of ce

AMPACET, a global leading manufacturer of masterbatch, has opened an of ce in South Africa.

Haley Clark is the sales manager at the of ce in Johannesburg and is responsible for South Africa as well as the neighbouring countries and East Africa. Warehousing and distribution facilities are established in Durban.

Established in 1937, Ampacet is one of the most experienced colour and additive manufacturers internationally, although it was, obviously, not involved in plastics masterbatch in the early years. It now supplies a complete range of colours including black and white making it, in fact, one of only a few of the masterbatch suppliers to offer the full range. Most of the main suppliers have tended to steer clear of black and white, which tend to attract dedicated manufacturers.

Ampacet strives to offer solutions to all your masterbatch requirements. Our masterbatch technology brings plastic alive, giving it the right look and function for almost any end use, said Haley.

The sectors which Ampacet additives are suited are Food & beverage, household, industrial Cosmetics, hygienics, personal care Agriculture, geo-textiles Consumer goods: toys, garden, leisure,

sport www.ampacet.com

Haley Clark, who has spent almost her entire career to date in the colour supply sector, at the Ampacet of ce in Boksburg

Construction, E&E and automotiveAmpacet operates manufacturing sites and R&D centres in North and South America, Europe and Asia,

We offer exceptional products and service the world over, and back that up with an exceptional service, said Haley, who has spent most of her career to date in the colour sector, including a number of years in pigment supply.

Thomas Ringheim of Labotek of Denmark, Martin Hollinger of Ferrostaal of Johannesburg and Dieter Mller of Battenfeld-Cincinnati, the world leading extrusion system manufacturer which exhibited at Afriplast

SolidWorks Jonathan Morland, Roenique du Plessis and Dieter Leleu on the Mecad stand. Mecad is the agent for SolidWorks, a package that allows for construction-related simulation of the injection process which allows you to nd out how the design of parts will affect manufacturability, before production starts! And then provide the solutionwww.mecad.co.za

Heidi Boyce, Peter Weir, Alice Louw, Wayne Hockly and Mari McNamara on the Sondor standwww.sondor.co.za

Afriplast swamped at 10-shows-in-one eventTHE Afriplast show was held as part of the new 10-shows-in-one Industry and Technology Fair (INDUTEC) at Gallagher Convention Centre in Midrand in May.

Besides the Afriplast Expo, the event hosted Empowertec Africa; Energex Africa; Industrial Greentec Africa; Intermac Africa; Manutec Africa; Petrotex Africa;

Pumps, Valves & Pipes Africa; Watertec Africa; and Smart Automation Africa.

The reality of this is that plastics compo-nents are used by every one of the other sectors involved but the problem was that the plastics exhibitors were fairly swamped by the sheer number of exhibitors who, indeed, are potentially their customers.

A further factor was the large number of Chinese exhibitors at the event, who most of the local suppliers were virtually power-less to compete against, since the Chinese manufacturers seem to be able to offer prices which we cannot compete with.

www.exhibitionsafrica.com

Bag levy increase: Govt reluctant to engage with industrySOUTH Africas shopping bag manufacturers must be fuming. First, the bag levy is increased without consultation, and then SARS refuses to consult with industry representatives. Bag manufacturers, working with the industry body PlasticsSA, prepared a submission in response to the gazetted legislation, but at the time of writing had not been able to get an appointment to meet with the responsible government representatives.

Phillip Abelheim of Transpaco, one of the countrys biggest manufacturers of shopping bags, isnt impressed.

In terms of the MOA, the sole purpose of the levy was to fund the Section 21 company, which no longer exists so there is no basis for the levy to still apply. I have written to the Minister of Finance who has acknowledged receipt of my letter, but still await a response.

Based on the standard 24-litre VTC, the levy amounts to a tax equal to 33% of the value of raw material, which is outrageous. This is a substantial amount taken out of the value chain which hampers our ability to recover cost increases such as raw material, electricity, labour and petrol.

BRIEFLYJUST

THE Wegalux roof tile is a new innova-tion in energy ef ciency and green living, offering solar heating solutions to blend harmoniously with historically-inspired roof tops. The Wegalux tile marks the collabo-ration between Italian construction and energy solutions organisation, Wegaplast and engineering plastic moulding resins supplier Styrolution. Together, these two organisations developed a durable, easy to install, thermoplastic roof tile tted with photovoltaic cells.

Wegalux photovoltaic roof systems offer the ideal solution for historical districts requiring minimal visual impact from solar heating systems. The tiles can be inte-grated with every type of common Mar-

seille clay tile, allowing the sunniest part of the roof to be powered while preserving unexposed tiles.

The thermoplastic roof tile is manu-factured from Styrolutions Acryonitrile-Styrene-Acrylate grade Luran S 797 SE UV, a UV-stabilised ASA grade. ASA is the material of choice due to its unpar-alleled long-term dimensional stability under varying temperatures and excellent weatherability without loss of mechanical properties. Luran S also offers versatility both in terms of design and colouration. The thermoplastic ASA component is recyclable, ensuring green building and sustainable architecture.

Styrolutions colour matching compe-tencies allowed optimum blending of the thermoplastic tile with existing Terracotta-coloured roof tiles and colour consistency is guaranteed through their reputable compounding capabilities.

Styrolutions South African distribution partner, Plastichem, hopes the Wegalux roof tile will inspire many new applications where exposure to extreme conditions requires the use of Luran S. Judging by the interest shown in the tile displayed at the recent ProPlas show in Johannesburg, it will be no surprise should many a local

www.wegalux.it

The Wegalux tile marks the collaboration be-tween Italian construction and energy solutions organisation, Wegaplast and engineering plastic moulding resins supplier Styrolution. Together, these two organisations developed a thermo-plastic roof tile tted with photovoltaic cells

rooftop be adorned in Wegalux roof tiles in the near future.

Wegalux roof tiles offer a high-value product to customers who want functional and aesthetic value in the long run.

Solar heating solutions blend with historically-inspired rooftops

www.plastichem.co.za

The thermoplastic Wegalux roof tile is manufactured from ASA grade Luran S 797 SE UV, with added UV stabilisation

MAT

ERIA

LS

Thermoplastic, eco-ef cient roof tiles

JUNE / JULY 2013

New world-class manufacturing plant in Chamdor also creates 35 more jobs

TRIOPLASTICS has started breaking ground at their brand new world-class manufacturing plant in Chamdor, Krugersdorp, to house two new machines which will be used to establish the new plant, at the same time creating jobs for more than 35 people.

Established in 2007, Trioplastics was and still is, performance driven. They successfully service the packaging industry through the supply of imported rigid plastic lms in roll form such as PVC and PET rolls.

To evolve in todays ever-changing and competitive business world, it is companies that do not simply follow industry trends but constantly reinvent and innovate themselves that survive. The directors of Trioplastics Derek Moonsammy, Chris Rossouw and Mike Wright - continuously anticipate future competition and monitor industry developments in order to invest in new ef cient processes and be progressive in the plastics industry.

The balance of the trade gap is increasing in the plastics industry which is importing more than it exports. Wanting to close that gap, Trioplastics will manufacture and produce locally, good quality rigid calendered-process PVC rolls and PET lms up to 1.5m wide. These rigid materials are used in thermo and vacuum forming, pharmaceutical and food grade packaging, as well as in stationery and box folding.

Trioplastics will now be able to match world-class quality standards, previously only found in imported lms. Manufacturing

locally will not only mean that Trioplastics will be able to produce a world-class quality product at competitive prices, but will also signi cantly decrease the lead-time of the product.

More jobs will be created once the manufacturing plant is up and running.

A new website tooTrioplastics have also given their website a facelift with the launch of phase 1 of their newly developed homepage (www.trioplastics.com). Once the manufacturing plant is up and running and production is in place, phase 2 of the website revamp will be implemented, which will be the e-commerce phase.

During this phase, customers will receive a login and password enabling them to go into their account, download statements and invoices, check availability of stock, sizes and price and will be able to purchase or place orders on-line, view the status of an order, and much more. An on-line virtual walk-through of the manufacturing plant will also be placed on the website enabling current and potential customers to experience Trioplastics as a whole.

Exciting times lie ahead for Trioplastics who are serious about investing in the South African economy. However, their main objective still remains to service customers and the industry worldwide with quality products at the best price and through excellent service a sentiment all of us in the industry appreciate!

Trioplasticsbreaks new ground

INDUSTRY