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November 19, 2008
Erie Plastics Corp. preparing to close
The Erie, Pa., Times-News is reporting today that Erie Plastics Corp. is going to close in 60 to 90 days. The story quotes CEO Hoop Roche.
Berry Plastics Corp. in Evansville, Ind., had announced yesterday it has agreed to buy "certain assets" of Erie.
"Erie Plastics previously filed for bankruptcy protection on September 29, 2008, and Berry Plastics was the successful bidder for the majority of the assets of Erie Plastics including equipment, inventory and other tangible and intangible assets," Berry said in a news release.
Plastics News is working on getting confirmation of the plan to shut down Erie Plastics, and we'll post our own story as soon as possible.
The sale to Berry means, of course, that the deal announced in September to sell Erie to Crawford Group of Cleveland is not going to happen.
China's automakers want their own bailout
While the Big 3 automakers are in Washington this week begging for a bailout, their counterparts across the Pacific in China are quietly doing the same thing, according to this New York Times story.
The story notes that auto sales in China have been chugging along for six years with incredible 20+ percent annual growth rates, but they've been flat or down slightly this fall as a result of the global economic meltdown.
The story notes that "The Chinese auto industry faces several threats simultaneously. Weakening economic growth, falling real estate prices and a yearlong plunge in the stock market have made consumers leery of spending money. Fuel prices in China are still high despite the recent decline in world oil prices. And Chinese auto exports, mostly to developing countries in Eastern Europe, Southeast Asia, Africa and Latin America, are starting to crumble."
But the last line of the story is the real kicker. It's from an executive at state-owned Changfeng Motor, who makes the case that potential government support of U.S. manufacturing puts China at a disadvantage.
"If G.M., Ford and Chrysler get a lot of support from their government, it's not fair," said Gordon Chen, the international business manager of Changfeng Motor, which has displayed cars at the last two Detroit auto shows in preparation for entering the American market in 2011 or 2012.
Wow. That's amazing on so many levels. Welcome to the global economy, folks.
Toledo mayor proposes bag tax
Plastic bag taxes are making a rare (up to now, at least) foray into the heartland: The mayor of Toledo, Ohio, has proposed a tax, similar to the plan offered last week by New York Mayor Michael Bloomberg.
According to this story from the Toledo Blade newspaper, Mayor Carty Finkbeiner has not proposed a specific amount, but Council President Mark Sobczak said they have been discussing a 6 cent-per-bag tax -- with 5 cents going to the city and 1 cent to the store.
Reaction from the city council was mixed. District Councilman Lindsay Webb called it "crazy," adding "I think we have had enough with the garbage fee, and I will not support another increase in fees for people."
Councilman Joe McNamara supports the idea, offering some commonly held misconceptions about plastic bags in the process:
"The plastic bags are petroleum-based and they take up a lot of space in our landfill," he said. "Anything that ultimately saves the landfill will save the taxpayers money."
Attention Toledo taxpapers: don't expect to start saving tons of money on those landfill costs anytime soon.
November 18, 2008
NY Times switching to biodegradable bags
The New York Times' Green Inc. business blog is reporting today that in 2009, the Times will begin using PolyGreen biodegradable bags to protect its newspapers shipped around the country. The bags, from GP Plastics Corp., are supposed to degrade in an open environment within a few months, "and within two to three years when in a landfill," according to a Times spokeswoman.
She said the Times is the "first national newspaper to commit to using this environmentally friendly bag. While this new bag is more expensive, we believe it is an important change to make."
Blog readers will recall that we covered the introduction of PolyGreen back in February, with the pithy headline "Will newspapers pay a premium to avoid being hypocritical?"
And now we know one that will.
The best of in-mold decorating
Some processors are making some very attractive products using in-mold decorating, and the Scottsdale, Ariz.-based In-Mold Decorating Association is highlighting some of the best-of-the-best with its second annual IMDA Awards. Check this link for more information, including photos of the honorees.
Here's the list of winners:
Best Part Design – Aspasie IML (Canada) for Swatch Buttons
Best Thin Wall Packaging – North America IML Containers (Canada) for Chapman's YogurtPlus
Best Injection Mold Part – Polisport (Portugal) for Dirt Bike Spoilers
Best Blow Mold Part – Viappinai Printing (Italy) for Seven Powers Perfume bottle
Best IMD Durable Product – IGH Solutions (USA) for Nescafé Lenticular Cup
Best Label Design – Spies Kunststoffe GmbH (Germany) for Mövenpick Schätze der Welt
Best Label Design, Honorable Mention – Ropak Packaging (USA) for Preen Garden Weed Preventer
Best Product Family – Smyth Companies/Technimark (USA) for P&G Olay Skin Care Products
Best Product Family, Honorable Mention – Gateway Plastics (USA) for Maxx Scoop Litter (7 kg)
Very colorful! Congratulations to all the winners.
November 17, 2008
BPA in microwave-safe containers
The Milwaukee Journal Sentinel continued its "Watchdog report" series on bisphenol A safety this weekend. The newest wrinkle: the results of lab tests on containers either marketed for infants or billed as microwave-safe.
According to the story, the 10 products tested release "toxic doses" of BPA when heated.
If regulators agree with the "toxic" defiinition -- and if the lab results are accurate -- it could extend the issue of BPA safety beyond polycarbonate baby bottles and reusable sport drink containers.
"The newspaper's test results raise new questions about the chemical and the safety of an entire inventory of plastic products labeled as 'microwave safe,'" the story says. "The newspaper tests also revealed that BPA, commonly thought to be found only in hard, clear plastic and in the lining of metal food cans, is present in frozen food trays, microwaveable soup containers and plastic baby food packaging."
Frederick vom Saal, the University of Missouri researcher who has kept a spotlight on BPA safety for the past decade, oversaw the Journal Sentinel's testing. He's quoted in the story saying: "There is no such thing as safe microwaveable plastic."
Some manufacturers quoted in the story dispute that conclusion. The story quotes John Faulkner, director of brand communications for Campbell Soup Co., who wrote: "These levels are EXTREMELY low. In fact, you might just be able to find similar levels in plain old tap water due to "background" levels. We are talking 40 to 60 parts per trillion (ppt). What is 40 to 60 ppt? 40 to 60 seconds in 32,000 years! Essentially, these levels have absolutely no relevance in terms of human risk."
The Journal Sentinel's Web site includes that emailed response, as well as a statement from the American Chemistry Council and statements from manufacturers of other products that were tested.
Rubbermaid, for example, notes that "BPA is used in a small fraction of our products including Premier to provide the clarity and stain & odor resistance consumers desire. Based on numerous thorough, empirical scientific studies and the positions taken by major regulatory authorities from around the globe, including the U.S. Food and Drug Administration and the European Union, we continue to believe Bisphenol A is safe in our applications." But the company goes on to say that the company has a new page on its Web site to help consumers "easily identify which Rubbermaid food and beverage containers do and do not contain BPA, to help consumers choose alternatives if they wish."
It looks like BPA safety issues are getting ready to leap into new segments of the packaging and housewares markets. It will be interesting to see how companies respond.
November 14, 2008
The cost of GM's death
Of all the stories that are part of the global financial crisis, the potential collapse of General Motors Corp. is, to me, both the scariest and the most fascinating. So far, most of the headlines have been about the company's efforts to lobby for government assistance, and speculation about what could happen if it fails.
Our sister newspaper Automotive News posted a very good editorial on the topic -- the headline is "The cost of GM's death." The story is only available to AN subscribers, but here's a taste:
If Congress thinks a bailout of General Motors is expensive, it should consider the cost of a GM failure.Let's be clear. The alternative to government cash for GM is not a dreamy Chapter 11 filing, a reorganization that puts dealers and the UAW in their place, ensuring future success.
No, even if GM could get debtor-in-possession financing to keep the lights on (which it can't), Chapter 11 means a collapse of sales and a spiral into a Chapter 7 liquidation.
GM's 100,000 American jobs will die. Health care for a million Americans will be lost or at risk. Hundreds of GM's 1,300 suppliers will die. Their collapse could take down Ford Motor Co. and Chrysler LLC, perhaps even North American transplants. Dealers in every county of America will close.
The government will face greater unemployment, more Americans without health insurance and greater pension liabilities.
The column concludes: "Absent a bailout, GM dies, and with it much of manufacturing in America. Congress needs to do the right thing -- now."
It's amazing to me that there are people in Washington who don't understand all that. Are they so far removed from caring about U.S. manufacturing that they would allow this to happen? Say what you want about the quality of GM's management -- but in my book, the politicians who would refuse to save GM are completely incompetent.
November 12, 2008
Floating plastics that help the environment
Here's an interesting application for plastics that I haven't seen before. The city of Naples, Fla., is using floating islands made of recycled plastic to help clean three local lakes and Naples Bay. According to this story from WZVN-TV in Fort Myers, the islands "look like big, brown floaty devices" when they're launched. Workers then plant native vegetation on top, which naturally filter out oils, metals and other pollution.
I found a few links to companies that market these "floating islands," including this one in Montana and this company in Maryland. Check their sites for photos of the islands and more information.
It's nice to see a marine application for plastics that helps the environment, in contrast to the big marine debris problem.
One bag ban rejected, another proposed
Bag bans and taxes continue to pop up across the country, but defenders of plastic bags can point to a victory in Red Bank, N.J., where the borough council decided to drop a proposed ban on Monday. The Asbury Park Press reported on the move today, noting that the decision came after a "spirited debate."
The story notes that the proposal has been in discussion for almost 10 months. It would have banned plastic bags starting July 1.
Once again, an industry promise to step up bag recycling efforts was an important part of the arsenal. Donna Dempsey of the American Chemistry Council's Progressive Bag Affiliates spoke at the meeting, arguing that "A better approach is to sit down with people who know plastic bags, recycling, stores and solid waste."
Meanwhile, as I noted, plastic bag legislation is continuing to spread. In Toronto, where city officials are discussing a new packaging proposal, a group of elementary school kids are going to speak to the city council's works committee today to push for a bag ban, according to this story from the Globe and Mail.
"When we're adults, we want a clean world, we don't want it polluted all over with plastic bags and whatnot," said David Cash, 11.Their teacher, former human-rights lawyer Harriet Simand, says the exercise has taught the children about organizing to fight for a cause.
"They have a very clear sense of right and wrong," Ms. Simand said. "Sometimes adults need to hear it."
It seems fitting to see 11-year-olds take up the issue. Watching the plastics industry battle against bag bans already seems like watching a kid play Whac-A-Mole. Whenever they knock one down, another pops up somewhere else.
Bob Simpson on US manufacturing
Bob Simpson, a former executive at Milacron Inc. and Siegel-Robert Automotive Inc., shared his thoughts about U.S. manufacturing with IndustryWeek in a Q&A interview posted on the magazine's Web site today.
Simpson was interviewed prior to the November election. Here's what he had to say about what he's hoping for from Washington:
If you take a look at U.S. manufacturing, it's a world of vanishing boundaries. While we talk about the [weakening of the] U.S. dollar, in some ways it's helped us export more of our equipment. It allows us to introduce more technology out there. When we talk with people from China, Japan, India, Russia and various European countries here [at IMTS], they all want the technology that we have in the United States. Every one of them. So we're hoping that with whatever new administration that we have that we can help the U.S. manufacturing base become a global leader with the type of equipment and technology that we have here.
He also had these comments on the future of U.S. manufacturing:
My kids are 24, 22 and 20, and whatever I can do to help make their future brighter, that's what I want to do. It's encouraging to see the projects that people are working on, and why they're working on it, whether it be in the aerospace industry or medical equipment or automotive. People are asking us things like: "How do I make myself or my business more profitable? How do I gain access to India or China or somewhere else overseas? How do I improve this manufactured part?" We hope the technology and the know-how and the testimonials of other companies will encourage people to consider their options, and U.S. manufacturing again catches fire.
Simpson is president of the Association for Manufacturing Technology, a trade group that sponsors IMTS, the International Manufacturing Technology Show.
