News
Michael Wittman |
Wittmann buys Battenfeld
The Wittmann Group, the Austrian-based supplier of robots and auxiliary systems, is buying insolvent Battenfeld Kunststoffmaschinen GmbH (Kottingbrunn, Austria). The two firms are thus creating the world’s first fully integrated supplier of injection moulding machinery, from the dryer and loading system through to the takeoff system at the end of the production cycle.
In a joint statement, the company proprietors Dr. Werner Wittmann and Georg Tinschert of Battenfeld stated, “The integration of both companies leads to significant advantages for our customers and we are sure to enlarge our worldwide market position in progress.”
Battenfeld’s creditors have already approved the deal. It is subject to an assessment in accordance with Austrian anti-trust laws, though Michael Wittmann, general manager of Wittmann, expects there to be no problems with that because the company has no existing presence in the primary machinery business. The deal closes at the end of this month.
The plan is to reinvest in Battenfeld, and bring it back to its former status as a major global player in injection moulding. There are no current plans to fuse the companies’ operations, nor their brand-names.
“Battenfeld has a very good foundation that hasn’t been utilised well in the past few years,” Wittmann said in an interview. “Development will be one of our main focuses. It has a very good workforce and engineering know-how.”
He added that as a privately held company, Wittmann does not have to focus on quarterly results, and can take a long-term approach. It will retain Georg Tinschert, who has led Battenfeld through its liquidity and ownership crisis, as managing director.
“Globally, sales of injection moulding machines are still increasing,” he pointed out. “Battenfeld does not have a big presence in Asia, but we hope to develop that. Wittmann has a bigger footprint in Asia than Battenfeld has, so we can help there.”
Battenfeld has closed an operation in the US over the past year, and previously, it scaled back its efforts in Canada.
“It retreated from areas that were tougher to sell in,” Wittmann added. “We have good exposure to the North American market.”
Detailed plans for specific markets are still under consideration. But he does admit that the new Wittmann Canada headquarters in Richmond Hill, Ont., has a generous amount of space.
“It could make sense to have a showroom in Canada,” he said, “but we will go step by step.
www.battenfeld-imt.com, www.wittmann-canada.com
Michael Wittmann
Time to learn the Basics
 "So you don’t understand why blown film needs to be blown. You never could figure out what a crosslinked polymer was. And you don’t know how hot-runners get hot in the first place.
It sounds like you need the Basics of Plastics, a course designed explicitly for people in plastics-related companies who don’t have a technical background in the industry and its terminology, but would like to learn. The one-day seminar, offered at the low price of $195 per person, is being presented by Plastics in Canada magazine, in conjunction with The Plastics Touchpoint Group (Thornhill, Ont.)
The Plastics Touchpoint Group is headed by Paul Waller, who has taught similar courses in the past, as well as leading technical training in various countries around the globe over a 30-year period. He will cover chemistry for non-chemists, explain the elements of all the major plastics processes and some of the minor ones, including injection moulding and blow moulding, and the various types of extrusion. There’s also a session on environmental topics, so you’ll learn what is a problem, what might become a problem, and what is being blown out of all proportion by people who don’t know what they’re talking about.
The Basics of Plastics is being held at the Rogers Campus on Dixie Rd., in Brampton, Ont. The day’s price includes a book with the presentations in it, lunch, and a diploma for all participants. Full details of the program and on reaching the location are available by clicking on the button at the top of our home page, www.plasticsincanada.com
Paul Waller of The Plastics Touchpoint Group
 Expoplast space draw sells out majority of show
The space draw for the Expoplast trade show last week sold 60 per cent of available exhibit space. The show is held on October 20 and 21 this year, at Montreal’s Palais des Congres.
The draw was held simultaneously in the Mississauga, Ont., offices of the Canadian Plastics Industry Association, which owns the show, and in Montreal. Here, CPIA’s Sally Damstra allocates a booth to Negri Bossi’s Larry Pascucci.
www.expoplast.org
US machinery shipments take a hit
US manufacturers and importers of primary plastics machinery and equipment shipped US$210-million in primary machinery in the fourth quarter 2007, according to the latest statistics from the Society of the Plastics Industry, Inc. Committee on Equipment Statistics (CES). This is eight percent less than the $228-million shipped in the third quarter of 2007.
For all of 2007, total machinery shipments were down 12 percent in terms of dollars, compared to last year. The total number of units shipped in 2007 was 722, a decrease of 13 percent from the 827 shipped in the fourth quarter of 2006.
Economist Bill Wood, who provided the analysis for SPI's report, forecasts that "the negative growth rate in the overall equipment spending data will persist through the first half of 2008, but investment is expected to rebound gradually in the second half of the year."
The cost of resins and energy continue to hinder the ability of plastics processors to invest in new equipment. "In addition,” Wood says, “demand for plastics products remains hindered by the sharp declines in both residential construction activity and domestic auto production." For 2008 as a whole, Wood's forecasts a two percent decrease in total investment for new industrial equipment when compared with 2007.
Extrusion machinery shipments in the fourth quarter totaled $31.5-million, 20 percent lower than the $39.5-million shipped during the same time period of 2006. For the year as a whole, the total shipments value in dollars for extrusion was actually up slightly in 2007 when compared with 2006.
However, auxiliary equipment bookings totaled $80.6-million in the fourth quarter of 2007, a one percent increase when compared with the $79.4-million booked in the fourth quarter of 2006.
www.plasticsindustry.org
How Germany manages tool building
Canadian toolmakers are concerned that they’re now among the world’s most costly to use. Yet Germany’s mouldmaking industry, with even higher cost structures, is prospering. Horst Schmidt, president of the Canadian Tooling & Machining Association told a CTMA meeting last month that a disciplined approach is paying dividends for German tool builders.
“We are now one of the highest cost MTDM sources in the world,” Schmidt said. “Most of our customers are declining and releasing less work, or sourcing their work in lower cost countries. Customers are slow paying, and all our input costs are increasing.”
Germany, by contrast, is taking a different attitude to the business.
“They are managing their customers rather than letting their customers manage them,” he said. “They complete 100 percent of the engineering and part analysis before they start the build, minimizing costly and disruptive changes during the build. They know their true detailed costs when they quote.”
German mouldmakers are fully booked out well into 2008 and they are shipping tools into China. They are succeeding despite more stringent work place safety regulations than Canada has, an enforced 35-hour work week with no overtime permitted, the highest labor rates for the least hours worked by any worker in the world, high tax structures, little or no government assistance, and tooling costs well above comparable Canadian costs.
“A German tool supplier’s objective is to understand the complete system for which he is designing and building the tool so that the tool is properly thought out for the overall process rather than the production of the part,” Schmidt said. “The supplier then becomes part of the production team working with the customer to provide the best tool/part solution for the process.”
Schmidt’s full talk is available on the CTMA website at:
www.ctma.com
REACH program not well known
Despite a November 30 deadline for complying with the REACH program, a PricewaterhouseCoopers survey shows awareness of it is alarmingly low, especially in North America and outside the chemicals industry. Failure to meet the terms of REACH could lead to a ban on exports to the European Union so compliance is relevant to producers around the world, not just those in Europe.
REACH stands for Registration, Evaluation, Authorisation and Restriction of Chemicals. It became law in the EU on June 1 last year, and it aims to streamline and improve the former legislative framework on chemicals there.
It places greater responsibility on industry to manage the risks that chemicals may pose to health and the environment. In principle, REACH applies to all chemicals, not only those used in industrial processes but also in products such as cleansers, paints and appliances that touch day-to-day lives. The aims of REACH are to improve the protection of human health and the environment; enhance the competitiveness of the EU chemicals industry; promote alternative methods for the assessment of hazards; and ensure the free circulation of substances on the internal market of the EU.
"There's no question REACH will have a major impact on businesses that use or produce chemical substances," says Dean Mullett, leader of PricewaterhouseCoopers Canadian industrial products practice. "Compliance will be expensive and challenging."
The company’s survey of 241 senior executives across six industries in 29 countries found that two in five companies have limited awareness of the regulation and one in four executives feels Europe's newest rules on chemicals and their safe use will have no impact on operations. European firms are the most aware of REACH with North American companies falling behind by a considerable margin. Large companies have greater awareness of REACH than smaller ones.
This lack of awareness raises concerns that North American companies may miss important REACH deadlines and, as a result, suffer significant business disruptions. The European Chemicals Agency (ECHA) estimates between 10 and 30 percent of classified chemicals listed with ECHA will disappear as a result of the program.
A document called Waking up to REACH is available to download at www.pwc.com/chemicals
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Our last poll – results
The US election debate has opened the idea of NAFTA possibly being revised. Do you feel:
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| Good – it needs constructive revision |
 26% |
| Bad – we'd probably never get a better arrangement |
 39% |
| I never trust politicians to get trade deals right |
 35% |
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Plastics in Canada's enewsletter goes out weekly to over 7,500 confirmed recipients. Advertising to reach all these decision-makers can be very cost efficient. Call Gillian Thomas today at 416-764-1506 to find out more. Creative advice and services are also available.
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Changes
Husky Injection Molding Systems (Bolton, Ont.) has integrated production of the Altanium line of hot-runner controllers it acquired last summer, with its manufacturing of the hot-runner systems themselves. The Altanium plants in Moore Park, Cal., and in Ireland, have closed, and Altanium manufacturing is now done at Milton, Vt., Luxembourg, and Shenzhen, China.
www.husky.ca
Norcyn Enterprises Ltd. (Toronto) has recently acquired a 730-ton HPM injection moulding machine, capable of producing parts up to 80 oz shot size. Custom injection moulder Norcyn has been in business since 1966, and has 10 moulding machines from 35 to 730 tons.
Norcyn@on.aibn.com
Dow Polyurethanes, a business group within The Dow Chemical Company and its subsidiaries (Midland, Mich.) has broken ground on a major capacity expansion at its polyols plant in Terneuzen, The Netherlands. Dow’s investment in the Terneuzen facility will expand polyol production capacity by 180 kilotons per annum (KTA).
www.dowpolyurethanes.com
McMaster University’s Faculty of Engineering (Hamilton, Ont.) has named David Wilkinson, P.Eng., as its new dean. His specialty is the mechanical behaviour of materials. He is director of the GM Canada Centre for Automotive Materials and Corrosion, and director of the McMaster Manufacturing Research Institute. His appointment takes effect April 1.
www.mcmaster.ca
M2M International Ltd. has closed its Wallaceburg, Ont., mouldmaking plant. The cause is nonpayment by customers, some of whom are nine months in arrears. M2M makes injection tooling for the automotive industry. Company operations continue at MS-2 LLC, a toolmaking subsidiary in Gadsden, Ala., and at 1 Source Plastics Ltd., a moulding plant in Wallaceburg that handles short-run products. A subsidiary in Chennai, India also continues in business.
www.m2mintl.com
Klaus Erkes, managing director of Demag Plastics Group, has left the company. His last major responsibility was guiding the company through its acquisition by Sumitomo Heavy Industries Ltd. “My task, to pilot Demag into a safe harbour, has been accomplished,” he stated in a press release.
www.dpg.com
Metso Minerals Industries, Inc. Brunswick, Ohio is expanding its manufacturing operations in Northeast Ohio. The company expects the new facility to be online this spring. The expansion is part of the company’s effort to be the preferred supplier of precision-engineered equipment and turnkey-systems for the bulk material-handling industry. The Brunswick operation (formerly BEST, Inc.) was acquired by Metso in March of 2007.
www.metso.com
Manufacture of Eurotherm’s Continental range of solid-state relays, solid-state contactors and IO modules has been moved from Alberta to Reynosa, Mexico. Eurotherm’s plant in Leesburg, Va., remains the operating headquarters for Continental. From here Continental’s global sales and marketing functions will continue to be overseen, as well as research and development efforts and new product introduction. www.ciicontrols.com, www.eurotherm.com
J. Schmalz GmbH of Glatten, Germany, is opening a Canadian branch office in Cambridge, Ont. The manufacturer of vacuum technology will provide Canadian clients with full support in sales and service, consulting, engineering, inventory, and emergency services.
schmalz@schmalz.de
Eastman Chemical Company (Kingsport, Tenn.) is investing in commercial scale operations that will expand production capacity for Eastman Tritan copolyester products at its facility in Kingsport. The expansion project, expected to be completed by late 2009, includes both the construction of new manufacturing facilities as well as conversion of some existing operations.
www.eastman.com
The Center for the Polyurethanes Industry of the American Chemistry Council has called for entries for the 2008 Polyurethane Innovation Award nominations. This year’s award program’s three categories include polyurethane chemicals, processing equipment and finished product. Finalists will be selected and winners will be announced at the Polyurethanes 2008 Technical Conference, being held from September 29 to October 1 at the Marriott Rivercenter Hotel in San Antonio, Tex.
www.americanchemistry.com/polyurethane
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Classified Ads
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The Plastics in Canada e-newsletter Classified Ads section offers a platform to reach 7,500 recipients every two weeks.
Just e-mail gillian.thomas@plastics.rogers.com with your classified ad and we take care of the placement.
The cost is $150.00 per insertion.
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Coming Events
2008
March 19: Ontario region of the Canadian Plastics Industry Association (CPIA) breakfast seminar, on the economic health of the plastics industry. At the Toronto Airport Marriott Hotel (Contact Desiree Johnston at 905-678-7748 or djohnston@cpia.ca).
March 20: Society of Plastics Engineers, Ontario section, annual University Night. At McMaster University, Hamilton, Ont. (Contact: Leonardo Simon at 519-888-4567 or lsimon@uwaterloo.ca).
April 6-9: The International Card Manufacturers Association (ICMA) Annual Expo will be held at the Loews Royal Pacific Resort in Orlando, Fla. (Contact: Stacy Flint at 609-799-4900, ext. 62, or SFlint@icma.com).
April 8-11: Plastimagen 2008, Mexico's premier plastics show, at Centro Banamex, Mexico City (Contact: Guadalupe Olvera Arellano at 52-55-1087-1650 or golvera@ejkrause.com).
April 10: Basics of Plastics, an introduction to the elements of the plastics industry. At the Rogers campus in Brampton, Ont. (Contact: Edward Mason at 416-764-1514 or edward.mason@plastics.rogers.com)
May 12-13: Tenth International Conference on Progress in Biofibre Plastic Composites. At the Toronto Airport Renaissance Hotel. (Contact: Guida Williamson at 519-249-0545 or www.biocomposites-toronto.com)
May 22: The Plast-Ex Summit 2008 is a look at the urgent issues facing the plastics industry in Canada. Co-sponsored by Plastics in Canada magazine and the Canadian Plastics Industry Association. At the Rogers Center, Toronto. (Contact: Nick Passingham at 416-764-1527 or nick.passingham@plastics.rogers.com).
May 22: Plastic Film Manufacturers Association of Canada, 27th annual golf tournament. At Richmond Hill Gold Club. (Contact: Marilyne Berman, 905-678-7748 or mberman@cpia.ca).
May 26 - 29: Aseanplas 2008 incorporating Aseanrubber 2008, Southeast Asia's main international trade fair for plastics and rubber. At Singapore Expo. (Contact: Messe Düsseldorf North America at 312-781-5180 or info@mdna.com).
June 5: Canadian Plastics Pioneers 12th annual reunion and citation awards dinner. At the Donalda Club, Don Mills, Ont. (Contact: Tom Thomas at 416-498-4016 or tom.thomas@rogers.com)
September 30-October 2: Interplas 2008, Britain's national plastics show, at the Birmingham NEC, UK. (Contact: Graham Earl at 020 8910 7890 or graham.earl@reedexpo.co.uk).
October 22-23: Rotoplas '08, the international rotational moulding event, at the Donald E. Stephens Convention Center, Rosemont, Ill. (Contact: Maria at 630-578-3266 x225, or mariap@cmservnet.com)
October 20-21: Expoplast 2008, Quebec's triennial plastics show, at the Palais de Congres in Montreal. (Contact: Tom Sockett at 905-678-7748 or tsockett@cpia.ca)
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Coming Soon From Plastics In Canada Magazine - April issue
Precision Parts- Moulding to Tight Specifications
Extrusion Report- Innovations in Blown Film
Spotlight on Granulators and Shredders
Product Review of Printing & Decorating
Product Review of Welding Systems
Raw Materials Report
Processor Profile
Closing: May 14, 2008
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