Plastics News

P L A S T I C S N E W S J U L Y 2 0 1 27

MH/MR/N/200/MBI/12- 14 July 2012Volume 56 No. 7

Chairman - Editorial Board Mr. Jayesh Rambhia

Hon. Editor Mr. Raju Desai

Associate Editor Mr. Hiten Bheda

Members Dr. T. Biswas Mr. A. E. Ladhaboy

Editorial Co-ordination: Padmesh Prabhune, Dhruv Communications,

Mumbai, Tel No: 00-22-2868 5198 / 5049 • Fax No : 00-22-28685495 email: [email protected]

Published by Ms. Uma Gupta on behalf of the owners,

The All India Plastics Manufacturers’ Association

Plot No. A-52, Road No. 1, M.I.D.C., Andheri (E),

Mumbai-400 093. Tel: 67778899 • Fax : 00-22-2821 6390

E-mail : [email protected]

Website : http://www.aipma.net

and printed by her at Dhote Offset Technokrafts Pvt. Ltd.,

Jogeshwari (E), Mumbai-400 060.

Annual Subscription Rs. 1,000/-

Single issue Rs. 75/-

Views/Reports/Extracts etc. published in Plastics News are those of the

authors and not necessarily of the Editor. Furthermore except for copies of

formal AIPMA communications no other matter in this journal should be

interpreted as views of The All India Plastics Mfgrs. Association.

Mr. Ashok AgarwalVice President

(East Zone)

Mr. Manish DedhiaHon. Secretary

Dr. Asutosh GorJt. Hon. Secretary

Mr. Mukesh ShahHon. Treasurer

OFFICE BEARERS

The Offi cial Organ of The All India Plastics Manufacturers Association Estd. 1945

Mr. Jayesh RambhiaPresident

Mr. Anand OzaVice President (West Zone)

Mr. R. K. AggarwalVice President (North Zone)

Mr. Anil BansalVice President (South Zone)

IN THIS ISSUE...20...... AIPMA At Work35...... Company News38...... Environment

40...... Features...‘Keep It in Kilgore’ Pak-Sher encouraging kids to recycle plastic bags

...“High Density Polyethylene Pipes with holes for seggregating solid and liquid waste”

...Polyurethane demand to grow in coming years

...New Thin wall Packaging fi lms

...Blown Film Line

...BASF in India publishes Report 2011

...6th Symposium for Plastics Processing a tremendous success

50...... International News60...... Business News64...... Product News67...... Technology70...... In the News73...... Industry Updates78...... Notifi cation & Circulars

CONTENT


tTM

P L A S T I C S N E W S J U L Y 2 0 1 213P L A S T I C S N E W S J U L Y 2 0 1 213

THE PRESIDENT SAYS

India is now worlds 4th largest economy and one of the fastest growing economy.

By 2050 we would be worlds largest population country and 3rd largest economy, very close to US economy.

Changes have started happening.

Please compare your own lifestyle with your parents and also see lifestyle of generation next. Consumption is booming. Quality of life is improving.

It is also putting more pressure on planet and Sustainability will be key to business by 2020.

Let's see major challenges by 2020 and how plastic will help us to meet those challenges and in the process industry will grow.

This growth will come from serving real needs of growing population and improving their quality of life.

Plastic in AgricultureBy 2020 Indian population would be ~1.4 billion, more

shifting to urban area and with higher income, our food consumption would double.

But our agriculture lands are shrinking.

70% fresh water is used in agriculture and it's in short supply. Ground water table is falling fast and quality of water is also deteriorating.

There is scarcity electricity & farm labor .

How will we double farm production in 8 years?

We can not plan to depend on imports for basic food needs of masses.

In India land ownership is fragmented and size of farms is getting smaller with division of families in each generation.

Our farm productivity is also very low , we grow nearly half the food per acre compared to developed world.

Agriculture growth in Gujarat was 10% against national average of ~2 %. Gujarat has focused on spreading modern technics in farming and this needs to be replicated all over India. Plastic has major role to play in increasing farm production while saving natural resources.

Plastic drip irrigation systems , mulch fi lms , canal lining reduce water consumption by 90%. They also save Fertilizers and insecticide wastage.

Water is precious and saving water also saves power and fuel requirement for pumps.

I n d i s c r i m i n a t e u s e o f insecticides and pesticides in farm poisons our environment and affect consumer health.

Insect nets, green house fi lms, mulch fi rms protects plants and reduce use of insecticides protecting environment and consumer health.

Woven sacks make sure more food from farm reach fork.

Plastic pipes need less power to pump and save water also.

Plastics in agriculture will see great growth.

Food PackagingWith urbanisation, nuclear family where both parents

are working will rise.

To save time in kitchen, processed ready to cook food will become norm.

Also as share of organised retail increases, branded goods demand zooms up all commodity items will be packed and sold to assure consistent quality and prevent duplication or adulteration, protecting food against environment, bacteria, prolonging shelf life of food and protecting consumer health.

Currently, nearly 40% food does not reach from farm to fork.

Lack of infrastructure for storage, logistic and cold chain is cause.

Consumers have to pay higher price for balance food.

Poor do go hungry.

Plastic woven sacks, crates, pallets, fl exible packaging can ensure more food can reach hungry, solving food security challenge.

In packaged food 97% carbon foot print is that of food and only 3% of packaging.

But that packaging saves food and increases its shelf life.

Multilayer packaging fi lm plants, woven sack plants, Pet bottle stretch blow machines , caps and closure lines, labelling, shrink packing, cling wrapping, crates, drums pallets all will see double digit annual growth over next decade.

Use of plastic house-ware from fridge containers to

Plastics : Key to Food Security


microwave-ware, pet jars for food storage saves post consumer food waste. Thermo ware saves food reheating fuel.

Plastic packaging reduces weight saving fuel while transport and cold storage, it consumes less energy to make, is recyclable and gives back energy when used in furnace.

So it makes environmental and economical sense to use plastic to pack food, plastic food packaging sector will boom.

Barriers to growthWhat is barrier to growth of use of plastic in food chain,

when it makes technical, conomical and ecological sense ?1 skewed implementation of govt. policies2 fragmented knowledge and fear psychosis by

environmentalistsI recently visited Punjab for a FICCI conference and UP

for AIPMA Plastic Park project.This is major agriculture region of India.From fl ight I could see whole area was dry. No greenery,

no water in sight.I checked with locals. Water scarcity was real but Drip

irrigation penetration was also low.Farmers in Punjab told me that it takes up to 3 years

to get government subsidy for drip irrigation. Power for agriculture is nearly free. Result is farmers keep running pumps for long hours and keep depleting ground water.

If power cost was to be paid in full and drip irrigation subsidy paid in time, it will save 90% water for future, will also save environment and increase farm production.

If government does not force by law, plastic woven sack will replace jute bags and save food. As plastic is lighter than jute it saves fuel in transport and energy in cold storage.

Plastic is also cheaper and save money for farmer and consumer.

In globalised world economy we are asked to compete with the world and let market forces decide who survives. But in reality power subsidy to farmer limits growth of drip irrigation and protecting jute is limiting growth of woven sack.

A time bound program need to be declared that such protections are gradually withdrawn and let farmers and consumers make right choice.

Drip irrigation systems , plastic pipes, canal lining, mulch fi lms, bird nets, insect nets, green house fi lms, woven sacks, fl exible packaging all help increase farm yield and help reach more food to fork.

Environmentalist focus on fragment of truth & do not see whole picture.

Only 4% crude oil is converted to plastic, less than 2% plastic is used to make polybags.

When we use 96% crude oils in fossil fuels pouring pollution in our air, we do not hear Say No To Petrol / Diesel slogan.

Say No to Plastic slogan is American and USA uses over 100 Kg plastic per head / year against 8 kg in India. It has better environment & economy inspite of this.

Plastic products are more economical to other materials including Jute.

Because they consume less land, energy, water to produce, use and recycle.

when you consider whole life cycle of material and products plastic comes as winner.

Plastic make economy more competitive & life more affordable for masses.

SustainabilityWorld population is growing by 75 million people /year

By 2040, 9 billion people in the world will live mostly in cities.

They would need more than 2.5 times food.

Currently 16 million sq. Km. is crop lands, 40% of world land is cleared for agriculture.

Agriculture uses 60 times more land than residence areas.

30 million sq. km. is pasture lands for animal feed.

2800 cubic km. water is used for irrigation.

Fertilizers have doubled nitrogen & phosphorous in the environment.

30% green house gases are emitted by agriculture activities.

Its more than all factories and automobile combined.

Agriculture is biggest contributor to climate change.

Plastic helps grow more food and saves food. So plastic deserves credit for bringing food to hungry while saving land, water, power, incecticide, fertilizer, labor & environment.

To sustain quality of life and environment,

Use of plastics in smart agriculture would be more important.

Plastic serves, Littering pollutes.

Jayesh RambhiaPresident - AIPMA


THE PRESIDENT SAYS


DEVANSHI ELECTRONICS PVT. LTD.Plot No. R-880, TTC Industrial Area, Rabale, Navi Mumbai. PH : 027642521/22/23Branches:Bangalore: +91 9341405502, [email protected] � Baroda: +91 9375805502, [email protected] � Daman: +91 9375362832, [email protected]: +91 9301505502, [email protected] � Dehradun: +91 9358191555, [email protected]: +91 9370151566, [email protected] � Delhi: +91 9810270470, [email protected]

P L A S T I C S N E W S J U L Y 2 0 1 217P L A S T I C S N E W S J U L Y 2 0 1 217

FROM THE EDITOR

From the Editor’s Pen….

Plastic carrier bags are seen by some as a symbol

of a throw-away culture. Their impact on the

environment is minor but they get a disproportionate

amount of attention. I would like to share with you couple of

interesting facts about thin plastic bags that have occurred

recently one, an Environment Agency study, "Life Cycle

Assessment of Supermarket Carrier Bags" and second,

the event ‘Thin Wall Packaging Films 2012’, which would

further enlighten on the utility all of plastics.

According to the survey done by the British Retail

Consortium on the assessment of life cycle of carrier bags

it was established that thin plastic bags have the lowest

carbon footprint of any type of bag. A cotton shopping bag

has to be used at least 131 times to have less environmental

impact. Plastic is by far the lightest of all carrier bag

materials so it takes much less fuel to transport, producing

fewer emissions. Also the fact remains that thin plastic

carrier bags account for less than 1% of household waste

and are a small proportion of litter. Today's plastic bags

use 70% less plastic than 20 years ago and contain more

recycled content than ever before. There's been a 61%

reduction in the amount of new material used in all carrier

bags since 2006.

Applications of thin wall packaging range from dairy

ice cream tubs and yogurt pots to ready meals, bakery

trays and long-life jar and can replacements. Thin Wall

Packaging Films 2012, the two day program in Chicago,

was launched by Applied Market Information LLC and co-

chaired by AMI consultants with extensive knowledge on

the thin wall packaging.

Though there were many big players from the industry

participating, in the inaugural session, Amcor Rigid

Plastics and Grupo Phoenix (leading

FMCG packaging suppliers in North

America) presented an overview

of the changing landscape of rigid

plastic packaging in the context of

materials and design that helped

the audience understand the role of

innovation in consumer appeal and product differentiation.

As we know, Product differentiation can certainly be

enhanced by in-mold labeling and moreover, the emergence

of T-IML (in-mold label for thermoforming) is not to be

overseen.

The thin wall packaging market witnesses technical

developments in two competing production processes:

thermoforming and injection molding and the conference

provided an opportunity for an open debate be it the benefi ts

of thermoforming, of which cycle speed, high output and

cost were key, or the manufacturing advancements in the

in-line extrusion thermoforming technology. On the other

hand, Kortec Inc. explained how co-injection technology

for multilayer thin wall packaging can improve options

for differentiated marketing, fl exibility of design as well

as scrap and cost control. The manufacturing technology

advancements are equally matched with developments of

new materials in polypropylene, bio-polyethylene for thin

wall packaging.

One thing is clear we are yet to discover many things

about Plastics and let’s drive this message to the decision

makers of our country.

Hon. EditorRaju Desai

[email protected]

Thin plastic bags have the lowest carbon footprint


®

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Sponsorship opportunities are available. Contact Ken Braney, Chair, at [email protected] • Phone : +44-7793144542

Ashok Misra, Co-Chair, at [email protected] • Phone : +91-80-66485501or Sapan Ray, Vice-Chair at [email protected]

Phone : +91-2244780241


AIPMA AT WORK

Report of the meeting held in wake of the supreme court’s proposed banIn order to discuss the issue of plastic ban with a

reference to the Karuna case, a meeting was held at AIPMA auditorium on Saturday June 23, 2012

Mr. Manish Dedhia, Hon. Secretary convened the Meeting with an address to all present on behalf of AIPMA. He then invited President Mr. Jayesh Rambhia, Mr. T. Bandopadhyay-ICPE, Mr. Mukesh Shah-Hon. Treasurer, Mr. Anand Oza-V.P.(West), Mr. Haren Sanghavi-Chairman, Environment Committee, to the dais.

Mr. Manish Dedhia conveyed the importance of the gathering by saying that we are here to discuss the important issue of Plastic Industries such as Karuna Society case fi led in Supreme Court of India and proposed plastic

bags ban in various States. He also emphasized about the benefi ts of plastic in common man’s life.

He requested President Mr. Jayesh Rambhia and Mr. Raju Desai to present a bouquet to prominent persons from various Plastics Associations, as a token of appreciation.

Then Mr. Jayesh Rambhia – President AIPMA took over the dais. President in his address emphasized the importance about the activities being initiated by AIPMA such as:

• AIPMA Plastic Parks in 1000 acres

� Gujarat Dahej & Sanand close to Tata, Maruti, Ford plants


� Karnataka Near Bangalore, Honda plant

� UP Near Kanpur

• Loan from SIDBI : 10000 crore

• Government supports growth of Plastic Industry

• Plastivision Arabia success

• Preparing for Kenya Plast & Plastivision India.

• AIPMA Network : USA, UK, EU, GCC, Africa

He then welcomed the house and proceeded towards the agenda of the meeting.

He explained the root cause of problems such as

AIPMA AT WORK


littering, low awareness among the public, insuffi cient effort to educate about responsible disposal, defi ciency in solid waste management and its waste segregation not implemented by municipality, funds collected by sale of polybag at shops are not being used to manage waste and fi nally, low scrap value.

Moreover, it was said that “Plastic is a poor cousin but it is all of the same family, plastic adds only 2% of the entire production for packaging, used for polybags. He also mentioned as to how we can utilize the waste plastic in different ways.

Focus of the government is mainly on plastics, as there

AIPMA AT WORK


AIPMA AT WORK AIPMA AT WORK AIPMA AT WORK

are other items such as tobacco, alcohol, cigarette which are harmful materials which could be focused upon.

The onus of responsibility in resolving this issue could lay on whether we are common man, an association, manufacturer, trader or distributor as far as littering is concerned.

Then I as Chairman Environment Committee took the dais and spoke on the following main topics of the agenda:

1. The main point of the agenda is based on the Writ Petition Filed in The Supreme Court of India by Petitioner “Karuna Society of Animals and Nature & Others.”

2. Proposed Plastic Bag Ban in various states.

Brief pointsof the Writ Petition Filed in The Supreme Court of India by Petitioner “Karuna Society of Animals and Nature & Others.”:

1. Government’s failure to implement various MSW Rules and Plastic Waste Management.

2. No Segregation of Plastic Waste at source resulting in continuous interface between animals and plastic bags.

3. Open Garbage system leading to animals ingesting garbage with Plastic Waste

4. Cows and bulls eating plastics from the garbage and dying due to choking.

5. Plastic residue entering milk products causing serious threat to human health

6. States have failed to restrict the movement of stray cows and cattle around the waste shortage facilities

7. State and Local Municipal Bodies have failed to implement various Rules and Regulations for sage disposal of Plastic Waste

8. Till now the petitioners have approached the Animal welfare board of India and the Animal Welfare Division of MOEF but did not receive any response from them.

Directions of the Writ Petition Filed in The Supreme Court of India by Petitioner “Karuna Society of Animals and Nature & Others.”:

The Petitioner Karuna have sought prohibition of plastic bags for packaging, segregation of waste at source, abolition of open garbage system, prevention of waste

disposal fi lled in garbage plastic bags and implementation of door to door waste management system.

Industry comments on the Writ Petition:

We are aware that plastic if eaten are harmful to animals and aquatic life as they do not degrade. The important aspect is apart from the ban on animal movement on Indian roads, why they are allowed to roam freely in Indian roads. On one side we talk about cleanliness and hygiene and on the other side we drink milk from animals which are fed with litter and garbage dumped on the roads? The government is not strictly following the implementation of rules/laws on owner of the animals.However, there is no surety of contamination due to residues of plastic ingredients in milk.

The notifi cation issued by the Supreme Court on Monday, 7th May 2011 to Central and State Governments on a plea seeking complete ban on use of plastics in the country. The Supreme Court, the Government and the people should also realize that plastic bags are only fraction of the problem. You can ban bags but you cannot rid yourself of pollution by merely banning the carry bags.

Ban of carry bags in many states of India

Many States are planning a Ban on Plastic Carry Bags in line with New Delhi like Maharashtra, Uttarakhand, etc.

In certain states of India, like Sikkim, West Bengal, Rajasthan, Tamil Nadu and Kerala there has been a plastic bag ban but so far to put into practice it has been proved diffi cult. In Delhi also, the ban has been introduced only last year.

What are these state governments planning to do? Why are they bent on increasing infl ation and hurting common man’s pocket?

I ended his speech with following suggestions: Four Key factors for clean and green environment are Reduce, Reuse, Recycle and Recover. Our Aim No Landfi ll.

Since latest technological resources are available in the fi eld of plastics engineering, it could be utilized to develop and recycle the used plastics.

There were different notions and arguments by the members present in the Meeting. Mr. T. K. Bandopadhyay


AIPMA AT WORK

of ICPE commented about plastics and its various aspects related to the judiciary. Moreover, Mr. Harpal Singh – Member Environment Committee suggested, to all his polybag manufacturers not to produce carry bags below 40 micron thickness.

The Meeting concluded with Vote of Thanks by Mr. Anand Oza, Vice President (West Zone). After the national Anthem Mr. Oza invited the attendees for lunch.

Subsequently the visitors proceed for Lunch.

After Lunch the leaders of various associationsagain accumulated in Mr. Jayesh Rambhia’s offi ce to fi nd a solution to the Writ Petition. During this meeting after lot of deliberation it was fi nalized and approved by various associations like TAPMA, APPMA, KPMA, AIPIA, KSPA, etc. as follows:

1. AIPMA will take the initiative to implead in the Supreme Court and mention names of all the associations agreed to below terms and conditions.

a. All the Association interested to join AIPMA will pay a nominal share of Rs.10, 000.00 towards the cost of impleadment.

b. All the Association interested to implead will send AIPMA a letter confi rming that they are willing to be part of the impleading proceedings.

2. Their confi rmation will have to reach AIPMA no later than 5th July’2012 as the last date of impleading is 10th July’2012.

This meeting concluded after Mr. Jayesh Rambhia thanking all the association’s for coming to a consensus and giving support to AIPMA for the Plastic Industry.


AIPMA AT WORK AIPMA AT WORK AIPMA AT WORK

AIPMA President at FICCI conferenceMr Jayesh Rhambia, President AIPMA,was invited

for Inaugural session of the conference “Potential for downstream plastic industry in North India” organized by FICCI

FICCI had organized a conference at Chandigardh about “Potential for downstream plastic industry in North India” on Tuesday June 26 2012. I was honored to give welcome speech at the Inaugural session of conference. Mrs. Neelkamal Darbari was the chief guest.

During the interactions at FICCI conference she proudly announced on the forum that Plastic is now becoming just like core sector industry as we’d discussed it a day earlier. I suggest if we keep using same phrase at all public platforms, one day government will accept to offi cially include plastic in core sector industry list.

Acceptance of Plastics in core sector industry list will mean cheaper fi nance, lower tax and more Government support for growth of industry. Its biggest service AIPMA

can render to industry.

To have a wider appeal I gave my speech in Hindi and elaborated how Plastic can help agriculture and food processing sector to increase yield and add value to farm produce. The speech was well received and appreciated by all.

Mr. Prabh Das of HMEL invited AIPMA to take an active role to set up Plastic Park in Punjab. He had also arranged meeting with Principal and Industry secretary and has formed a team of four including myself to prepare list of incentives needed to attract plastic processors.

All FICCI, ASSOCHEM, IMC, CII events are a must attend and we should participate in larger numbers for better visibility and networking.

Mr. S K Ray of Reliance, Mr. Prabh Das MD & CEO of HPCL-Mittal Energy Ltd with his full team, Mr. Saurabh Khemani from IPF, a team of nearly 6 high ranking offi cials from IPI, UNIDO, CIPET, Indian Agriculture Research Institute, Mr. Talwar, Principal Secretary Govt. of Punjab, Mr. Thind from Thind Farms and many others were speakers. The conference had audience of over 100 individuals from various business industry and that included farmers as well!

Incidentally I had met Mrs. Darbari at UNIDO event in Delhi a day earlier and had explained her how plastic industry is facilitating growth and new avenues for auto, agriculture, construction, FMCG, white goods and several other industries. She had also agreed to the fact that Plastic industry is now almost like a core sector industry.


AIPMA AT WORK

A New Venture of AIPMA “MSME-Cell”

1. INTRODUCTION:The Micro, Small and Medium Enterprises sector

accounts for the major share in number of industrial units, output in manufacturing sector and exports in the State besides being a major employment provider, the need for vitalizing this sector assumes greater importance. AIPMA have been continuously for the development of Micro and Small Enterprises. All these have warranted a separate policy for the fi rst time, exclusively for Micro, Small and Medium Enterprises sector.

Based on these facts, AIPMA had formed a In-house separate MSME-CELL, being managed by Mr. Raja M. Shah as Chairman of the CELL.

2. MISSION:To accelerate development in Micro, Small and Medium

Enterprise sector by maximizing investment, output, growth, employment and manufacturing competitiveness through infrastructure.

MSME-CELL is a multinational CELL having various activities providing better services to MSME levels.

3. OBJECT:For capacity building, strengthening Database and

to increase effi ciency of Association by development of MSMEs and by conducting Symposiums and workshops and to provide various services for the betterment. Cell shall be approaching untapped area for membership which has not been previously followed.

4. BASIC FUNCTIONS:A wide fi eld but basically and primarily the Cell shall

function in various aspects like:

(i) DATA BANK: A reliable Database is a key input to policy decision making process. To keep latest Data on various Groups of Plastic Industries like Raw materials, Machineries, Ancillaries, Tools, Moulds and Dies, Finished products and processing Plastic Industries details, and so on.

This is very wide fi eld requiring about ONE AND HALF YEAR time or more to collect data and to update it regularly. This shall also help indirectly AIPMA to elaborate and update its Directory or even better planning of PVI Exhibitions.

(ii) MSMEs - PROMOTION PROGRAMME: We shall provide basic guidelines related to Plastic Industries, as in general,

(a) Functions and Assistance:-

i. Procedures for registration with MSME and documentations required thereof.

ii. Procedure, General terms and conditions for the various types of loans offered, by SIDBI/Other Financial Institutions.

iii. Type of fi nancial assistance available.

iv. Repayment schedules and rates of interest and processing fees, if any.

“MSME are witnessing a paradigm shift from comparative to competitive era. Time is ripe for entrepreneurs in Indian MSME sector to embrace management-oriented business strategies for overall growth”. Mr. S. MUHNOT, Chairman and Managing Director – Small Industries Development Bank of India.

Mr. Raja M. ShahM.E., Chairman,

MSME-CELL


v. Statutory licencees and clearances required from various departments.

vi. Financial assistance / Guidelines referred to MSME/NSIC/SIDBI, etc.

vii. Promoting JV / Collaboration of Foreign Companies with Indian Companies.

viii. Commercialization of technologies.

ix. Reimbursement to ISO = 120000/22000/27000 Categories upto 70% on Actual Expenses- maximum upto Rs.1.00 Lakh

x. To promote Projects for Solar Energy, Rain Harvesting, CO2 saving systems etc.

This group has no limitations.

(iii) EDUCATIONAL SUPPORT / JOB ORIENTATIONS:

To guide students / entrepreneur for various courses in Plastics Engineering conducted by CIPET, IIT, IIP and other Engg. Colleges in India.

Shall keep in touch with various companies for

vacancies in their companies and the Cell shall forward the candidatures to these companies and to conduct interviews if possible in the cell. This move shall strengthen the activities of AIPMA.

5. CONCLUSIONS:Global practices have come to the Indian market and a

high level of technological sophistication is being expected of MSMEs.

To remain competitive MSMEs must constantly upgrade technology and make fresh investments. For this achievement, MSMEs shall extend fullest co-operation to any entrepreneur.

For guidance:Please contact:

Mr. Raja M. Shah, M.E,Chairman,

AIPMA, MSME-CELL,Cell: 9833116051

Tel.: 022 6777 8899/890

Definitions of Small and Medium Enterprises (SME):-Government of India have adopted investment limit

in terms of the value of Plant and Machinery items of any Industrial unit, as the sole criterion for defi ning the Small Scale Industry (SSI) sector. In its pursuit to help the sector to grow further, the investment limit of the SSI sector has been raised from time to time ranging from Rs.5 Lakhs in Plant and Machinery value in the year 1960 to Rs.500 Lakhs in Plant and Machinery value in the year 1960 to Rs.500 Lakhs in Plant and Machinery value in 2006.

As a response to the long standing demand of the SSI sector and considering the emergent need to provide a legal framework to address the developmental concerns of what is globally known as “Small and Medium Enterprises” Government of India in its recent enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, has changed the nomenclature of SSI sector into SME sector, giving due importance to the emergent segment and at the same time bringing or emerging the medium sector into its fold. Salient features of the Act are given below.

� The Act defi nes “Enterprises”, instead of “Industry” to give due recognition to the Service Sector.

� Manufacturing Enterprises have been defi ned in terms of investment in Plant and Machinery (excluding land & buildings) and further classifi ed into:-

� Micro Manufacturing Enterprises-Investment up to Rs.25 Lakhs.

� Small Manufacturing Enterprises Investment above Rs.25 Lakhs and upto Rs.5 Crores.

� Medium Manufacturing Enterprises-investment above Rs.5 Crores and upto Rs.10 Crores.

� Service Enterprises have been defi ned in terms of their investment in equipment (excluding Land & buildings) and further classifi ed into:-

� Micro Service Enterprises:- Investment upto Rs.10 Lakhs.

AIPMA AT WORK


� Small Service Enterprises – Investment above Rs.10 and upto Rs.2 crores

� Medium Service Enterprises – Investment above Rs.2 Crores and upto Rs.5 Crores.

3. Need for Policy for Micro, Small and Medium Industries:-

Global practices have come to the Indian market and a high level of technological sophistication is being expected of MSMEs.

To remain competitive MSMEs must constantly upgrade technology and make fresh investments.

MSMEs should be enabled to access the latest technology, indigenous R&D and innovation trends need to be encouraged and infrastructure improved.

Considering the fact that the Micro, Small and Medium Enterprises sector accounts for the major share in number of industrial units, output in manufacturing sector and exports in the State besides being a major employment provider this sector assumes greater importance. Further the Micro and Small Industries Association in the State have been continuously pressing for a separate Policy for the development of Micro and Small Enterprises in the State. All these have warranted a separate policy for the fi rst time, exclusively for Micro, Small and Medium Enterprises sector.

5. Direct catalytic subsidy support

5.1 Support to Micro Manufacturing Enterprises

All Micro Manufacturing Enterprises established anywhere in the State will be eligible for the following incentives.

5.2 Capital subsidy:-A capital subsidy will be extended at the rate of 15%

on eligible plant and machinery as indicated in the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 and rules.

5.1.3 Employment Intensive subsidyAn employment intensive subsidy of an additional 5%,

subject to a maximum of Rs.5 lakhs, will be granted if at least 25 workers have been employed for a minimum period of 3 years within the fi rst fi ve years from the date of commencement of production. The evidence for the employment of workers would be the related statutory returns such as the returns fi led under the Employees Provident Fund Act, etc.

5.1.4 Additional capital subsidy for select category of Entrepreneurs

An additional capital subsidy of 5%, subject to a maximum of Rs.2 lakhs will be given to enterprises set up by Women, SC/ST, Physically disable and Transgender enterprises.

In additional the Government will also provide support to Mini Tool projects to be taken up by any Industrial cluster / Association at the rate of 25% of the project cost, subject to a ceiling of Rs.1.00 Crore in strategic locations based on demand. The industrial cluster / Association concerned should arrange for the land.

� Waiver of Earnest Money Deposit will continue for Micro and Small Enterprises –

5.1.5 Marketing support:-i) Participation in international Fairs – ( Full

subsidy on space rent and shipment of exhibits of MSEs)

ii) MSE Market Development Assistance – (funding upto 90% in respect of to and fro air fare for participation by MSE Entrepreneurs in overseas fairs / trade delegations. The scheme also provide for funding for producing publicity material (upto 25% of costs)

Dear Committee Members:

Please provide details of various schemes for uplifting of MSMEs:

AIPMA AT WORK


Ministry of Trade,

Republic of Kenya CIPET

AIPMA House, A-52, Road No. 1, M.I.D.C. Marol, Andheri (East), Mumbai - 400 093, Maharashtra, India

+91-22-6777 8899 / 815 / 861 +91-22-2821 6390

[email protected], [email protected] www.aipma.net

Tel.: Fax :

Email : Website :


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ESTD 1945

AIPMA House, A-52, Road No. 1, M.I.D.C. Marol, Andheri (East), Mumbai - 400 093, Maharashtra, INDIA.

Telephone : +91 - 22 - 6777 8899 (100 lines) Email : [email protected] Website : www.aipma.net

The All India Plastics Manufacturers' Association

MOU with SIDBI

Fast Track Finance

For Industrial

Processing Time : upto 2 crore,

4 Weeks for higher slab

Interest Rate : 13.5%*

Margin Money : 35%

Tenure : up to 7 years

When Buyers get Fast Track Finance

More Machines will be sold, Easier

You can recommend your customers,

AIPMA will help faster processing of term loan.

All for Very Affordable Charges

Contact :

Land, Building, Machines

2 Weeks

[email protected]


Joins

EUROPEAN PLASTICS CONVERTERSInitiative ofLaunches

Waste Free Waters

To collect Floating Plastic Waste From

Water Ways & recycle

Plastic Serves, Littering Pollutes

Litter ends up in waterways

Just 11% plastic is in solid waste

Floating plastic is more

Visible in Water & gets 100% Blame

Blame attracts Ban

works for

Sustainable Growth & Goodwill of Plastic Industry

Support

Opportunity to Advertise for good Cause

AIPMA

“Waste Free Waters”

Contact : [email protected]

AIPMA House, A-52, Road No. 1, M.I.D.C. Marol, Andheri (East), Mumbai - 400 093, Maharashtra, INDIA.

Telephone : +91 - 22 - 6777 8899 (100 lines) Email : [email protected] Website : www.aipma.net

The All India Plastics Manufacturers' Association


COMPANY NEWS

Enterprise Products plans to build propane dehydrogenationEnterprise Products Partners

L.P. announced that it plans to build one of the world’s largest propane dehydrogenation (PDH) units on the Texas Gulf Coast, with the capacity to consume up to 35,000 barrels per day (BPD) of propane to produce up to 1.65 bln lbs pa (approximately 750,000 metric tpa or approximately 25,000 bpd) of polymer grade propylene (PGP). The facility would integrate with Enterprise’s existing natural gas liquids (NGL) and propylene facilities. Supported by long-term, fee-based contracts executed with companies that have investment grade debt ratings, the PDH facility is expected

to begin commercial operations in the third quarter of 2015.

From a propane feedstock supply perspective, the PDH unit would be supported by Enterprise’s NGL fractionation and storage system on the Texas Gulf Coast. By 2015, with completion of expansions that have already been announced, Enterprise would have 708,000 bpd of NGL fractionation capacity, which would provide up to 177,000 bpd of propane supply. In addition, the facility would be supported by the partnership’s approximately 100 million barrels of NGL and petrochemical storage

facilities in the Texas Gulf Coast region. In 2015, the PDH unit would also be complemented by Enterprise’s 5.3 billion pounds per year (approximately 2.4 mln tpa or approximately 80,000 bpd) of propylene fractionation capacity, which fractionates refi nery grade propylene to produce PGP. The integration of the PDH unit with Enterprise’s propylene fractionation facilities would provide operational reliability and fl exibility for both processes. Enterprise also has PGP storage facilities and a 102-mile pipeline system, capable of delivering PGP to 18 downstream customers and to international markets through

Linde receives engineering contract for ethylene plant from SIBUR in RussiaTechnology company The

Linde Group has received an engineering contract for the licensing and front end engineering design (FEED) of one of the world's largest ethylene plants in Tobolsk, Western Siberia. The contract was awarded by Russia's largest petrochemical company, SIBUR LLC. The two companies signed an agreement today in St. Petersburg. "We are delighted to be working on this project and continuing our successful collaboration with Russia's most important petrochemical company," said Professor Dr Aldo Belloni, Member of the Executive Board of

Linde AG. "We also hope that this agreement will lead to further key contracts for our engineering business in this Eastern European growth market." The ethylene plant is to be built at the petrochemical complex "ZapSibNeftekhim" in Tobolsk, which is being planned by the company ZapsibNeftekhim, a subsidiary of SIBUR. Once fi nished, the new plant will produce around 1.5 mln tpa of ethylene, 500,000 tpa of propene and 100,000 tpa of butadiene from the feedstocks ethane, propane and n-butane. The products produced by the plant are important building blocks for the plastics manufacturing industry.

The FEED services provided by Linde are the fi rst step in the project to realise the new plant. The Group’s work will provide a foundation for the detailed engineering and construction phase. Linde’s services also include a cost estimate, which will be used by SIBUR to inform the fi nal investment decision. Linde is currently constructing a polypropylene plant for SIBUR at its Tobolsk site. The unit has an annual capacity of 500,000 tons and is set to go on stream next year. This project is currently one of the key investments in Russia’s petrochemical industry.


COMPANY NEWS

Enterprise to build 750,000 tpa polymer-grade propylene plant in Texas

Enterprise Products will build a wo r l d - sca le p ropane

dehydrogenation (PDH) unit on the Texas Gulf coast, with the capacity to consume up to 35,000 bpd of propane to produce up to 1.65 bln lb/year (750,000 tpa or 25,000 bpd) of polymer-grade propylene (PGP). Operations are slated to commence in Q3-2015. The facility would integrate with Enterprise’s existing natural gas liquids (NGL) and propylene facilities.

For propane feedstock supply, the PDH unit will utilize Enterprise’s NGL fractionation and storage system on the Texas coast. By 2015, with completion of previously-announced expansions, Enterprise plans to have 708,000 bpd

of NGL fractionation capacity, which would provide up to 177,000 bpd of propane supply. In addition, the facility will be supported by its 100 million bbl of NGL and petrochemical storage facilities in the Texas Gulf coast region.In 2015, the PDH unit will also be complemented by Enterprise’s 5.3 bln lb/year (2.4 mln tpa or 80,000 bpd) of propylene fractionation capacity, which fractionates refi nery-grade propylene to produce PGP. Enterprise also has PGP storage facilities and a 102-mile pipeline system, capable of delivering PGP to 18 downstream customers and to international markets through the partnership’s propylene export terminal in Seabrook, Texas.

the partnership’s propylene export terminal in Seabrook, Texas. “We are excited to announce the extension of our propane value chain with the addition of the PDH facility,” said A.J. “Jim” Teague, executive vice president and chief operating offi cer of Enterprise’s general partner. “This project is a natural fi t and integrates beautifully with our midstream system of assets. With access to reliable supplies of propane, this new facility will give us feedstock flexibility in addition to providing our customers with unsurpassed reliability and optionality. I want to congratulate our employees for their creativity and drive as we pursue new opportunities to grow our business and better serve our customers.” Teague added, “The

opportunity for this PDH project is directly attributable to the success producers have achieved in the growth of NGL-rich natural gas production through the development of the shale and non-conventional resource plays in the United States. This has led to a rebirth of the U.S. petrochemical industry. By switching their feedstocks from more costly, imported crude oil derivatives to domestically produced ethane, the U.S. ethylene industry is now one of the lowest cost producers of ethylene in the world. The impact of this change in feedstocks, however, has resulted in a decrease in the associated production of propylene. Since 2006, the supply of propylene as a co-product from the ethylene industry has decreased in the aggregate by

approximately 5.8 billion pounds and has contributed to periodic shortages of propylene. Our PDH unit will utilize growing supplies of domestically produced propane to provide another source of competitively priced polymer grade propylene. This is a great success story for the U.S. economy by helping to maximize the value of U.S. energy production, investing in domestic energy infrastructure, creating U.S. jobs and reducing U.S. reliance on imports of crude oil derivatives,” stated Teague.

Rosti buys McKechnie Engineered Plastics

Stockholm-based Rosti AB, which has injection

molding plants in China, India, the Netherlands, Poland and Scotland, is expanding in the United Kingdom by purchasing McKechnie Engineered Plastics Ltd. The company will be integrated with Rosti Europe, a division of Stockholm-based Rosti AB. McKechnie currently supplies most of Rosti’s existing markets and the strategic fi t between the two businesses was described by Rosti CEO Börje Vernet as “impressive.” Rosti is owned by Nordstjernan AB, a Stockholm-based investment company. The purchase price is 30.7 million pounds ($47.9 million). Both companies previously had U.S. plants, but none are included in this deal.


COMPANY NEWS

Formosa resumes production at some units of petrochemical complex in YunlinTaiwan’s Formosa Plastics

Group (FPG) has resumed production at 54 out of the complex’s 66 units at its petrochemical complex in Yunlin County, shut adhoc by a power failure mid week. An investigation pinpointed the cause to be malfunctions of the double busbar circuit system at the petrochemical complex’s public

utility area. FPG is in the process of completing safety inspections on these sites where the power failure occurred as Tropical Storm Talim approached Taiwan. All affected units are expected to come back online later in the day after these inspections.

The complex houses an oil refi nery

Chevron Phillips breaks ground for 1-hexene plant at Cedar Bayou ComplexOffi cials with Chevron Phillips

broke ground for the world’s largest on-purpose 1-hexene plant capable of producing up to 250,000 metric tpa at the company’s Cedar Bayou Chemical Complex in Baytown, part of a US$5 bln “US Gulf Coast Petrochemicals Project” expansion by the company. Baytown was chosen

for the new plant because it has the land and infrastructure able to accommodate large-scale growth. The plant is expected to open during Q1-2014. “1-hexene is a critical component used in the manufacture of polyethylene,” said Van Long, the plant manager of Chevron Phillips Chemical’s Cedar Bayou facility. The

Technip awarded two FEED contracts for a petrochemical complex in RussiaTechnip has been awarded by

ZapSibNeftekhim LLC (an affi liate of JSC Sibur Holding) two front end engineering and design (FEED) contracts for plants located in Tobolsk in the Tyumen Region of Russia. One contract is for a linear low/high density gas phase polyethylene plant; the

second one is for a high density slurry phase polyethylene plant.

Each plant will consist of two parallel production trains with a total capacity of 1.5 mln tpa of polyethylene. Both will be developed using INEOS Technologies licenses.

company has executed agreements with S & B Engineers and Constructors Ltd., to engineer and build the plant utilizing Chevron Phillips Chemical’s proprietary, 2nd generation, on-purpose 1-hexene technology, which produces comonomer grade 1-hexene from ethylene with exceptional product purity.

with capacity to produce 25 mln tpa of crude oil and three naphtha crackers with a combined capacity to produce 2.94 mln tpa of ethylene. The complex also comprises other petrochemical plants, heavy machinery plants, a co-generation power plant and the Mailiao Industrial Harbor


ENVIRONMENT

Recycled Plastics

The demand for polyethylene terephthalate (PET) bottles

and recycled PET (RPET) continues to outpace supply. With additional RPET production capacity coming online recently and announcements of future expansions on the part of companies such as US Fibers and Perpetual Recycling Solutions, demand is likely to continue exceeding supply, which will affect pricing for RPET and PET bales.

“The demand for bottles to recycle and RPET continues to grow in the market as more manufacturers and products continue to look for opportunities to create and promote sustainability and a green story regarding their product offerings,” Turner Plunkett, president of the board of directors at Clear Path Recycling LLC, Fayetteville, N.C., says.

Clear Path is a joint venture between Shaw Industries Group Inc. and DAK Americas LLC created to recycle post-consumer PET bottles to produce RPET fl ake. Shaw Industries is a carpet manufacturer and floor covering provider, while DAK Americas produces polyester staple fi ber PET resin.

“Demand is a lways greater than supply,” says Dave Cornell, technical director of the Association of Postconsumer Plastics Recyclers (APR), Arlington. He says government mandates, brands and economics

drive demand for RPET. While PET containers continue to grow in terms of market share, the recovery rate for this material has been holding fairly steady.

Supply SituationAccording to the “2010 Report

on Post Consumer PET Container Recycling Activity,” issued in late 2011 by the National Association for PET Container Resources (NAPCOR), Sonoma, California, in combination with the APR, the recycling rate for PET bottles and jars reached 29.1 percent in 2010. Of the 5,350 million pounds of PET bottles available for recycling in the U.S., 1,557 million pounds were recovered and sold for recycling that

year. The amount of bottles collected for recycling increased by 113 million pounds in 2010 compared with 2009, the report states, in light of an increase in the number of bottles available for recycling, a 50 million-plus increase in the weight of bottles collected through deposit program expansions in Oregon, Connecticut and New York, new curbside programs and commercial recovery efforts.

With the relatively fl at recycling rate compared to the 28 percent achieved in 2009, reclaimers in the U.S. again needed to look outside of the U.S. for their supply, purchasing 89.5 million pounds of post-consumer bottles from Canada and Mexico as well as from

Plastic has its own importance and the demand for recovered PET containers and RPET continues to exceed supply in US says DeAnne Toto

PET Bottles - Photo for purpose of representation only


ENVIRONMENT

South and Central America, NAPCOR says. “Domestic reclaimers also reported buying 20.3 million pounds of alternative feedstock, include pre-consumer bottles, post-consumer strapping and other unprocessed industrial scrap,” the report notes.

“The collection rate for bottles has been somewhat lackluster for the last 10-odd years,” says Steve Navedo, vice president of sales and quality assurance for East Farmingdale, N.Y.-based Pure Tech Plastics LLC, which largely produces RPET for direct-food

contact applications. He is also a member of the APR board of directors.

To fulfi ll the available PET recycling capacity in the U.S., Navedo says the bottle recycling rate would need to be in the neighborhood of 40 to 50 percent. He estimates that the industry has a capacity utilization rate of from 65 to 70 percent currently. “At least 30 percent of the capacity is not being used.”

Dennis Sabourin, executive director of NAPCOR, says the nature of the plastic container stream has changed dramatically in the last few years with the growth of thermoform containers,

which are formed from PET sheets. He estimates that thermoforms account for one-third of PET packaging, while bottles and jars account for two-thirds. He says much of the growth in PET container market share is in thermoforms, prompting NAPCOR and APR to dedicate efforts to growing the recovery of this material. Navedo says that in an effort to get additional material for recycling, the industry has had to look to other areas, such as thermoforms. “We cannot afford to ignore that potential stream.”

Gutierrez adds. Dennis Denton of ORPET, St. Helens, Ore., says it is a “known fact” that curbside material is more contaminated that PET bottles collected through deposit programs, which contributes to the regional nature of the U.S. plastics recycling industry. “You don’t want to haul contaminated material a long way,” he says.

ORPET is a partnership between private investors headed by Denton of Denton Plastics, Portland, Ore., and Tom Leaptrott and the Oregon Beverage Recycling Cooperative, a

statewide industry cooperative and the predominant administrator of the Oregon bottle deposit law.

U.S. reclaimers told NAPCOR that their yield losses ranged from 24.4 percent for deposit bottles to 32.2 percent for curbside material in 2010, a marked increase from 2009. With nearly half of the PET bottles recovered for recycling being exported to China for processing, quality and supply issues are likely to remain a problem for the foreseeable future.

Source: the Association of Postconsumer Plastics Recyclers (APR)

PET recycling Machine - Photo for purpose of representation only

Quality ConcernsBale quality can tend to deteriorate

when supply tightens, says Carlos Gutierrez, president and CEO of New United Resource Recovery Corp. (NURRC), Spartanburg, S.C. He says, “Suppliers here are not obliged to improve their quality” as long as buyers for Chinese consumers are sourcing material from the U.S. “The Chinese will buy anything.”NURRC produces RPET for food-contact applications.

Quality problems, specifi cally with material from curbside programs, is further narrowing reclaimers’ already thin processing margins,


‘Keep It in Kilgore’ Pak-Sher encouraging kids to recycle plastic bags

Texas based Pak-Sher, which makes plastic storage bags, food handling bags, delivery bags and carryout

bags has developed an incentive program at Kilgore to encourage school children to recycle plastic bags.

Called as ‘Keep It in Kilgore’ program, the 600 children at Kilgore Intermediate School bring the plastic shopping bags their family accumulates to the school—about a pound at a time or roughly 75 bags—in exchange for a chance to win movie tickets every two weeks and a shot at a Kindle Fire at the end of each school semester.

Each of the 27 participating classroom teachers also received iPads for their part in encouraging the students at the school -- which educates children in the fourth and fi fth grades -- to participate in the program.

The used bags are taken to the Pak-Sher plant where they are recycled and made into black bags with the Kilgore Chamber of Commerce’s City of Stars logo. The bags are then sold to local merchants in a business-helping-business model where the students received extra incentive tickets for turning the black bags back in---making the bag recycling process full cycle.

David Motley, Pak-Sher’s chief fi nancial offi cer, said the school produced almost 2,000 pounds of recyclable material in just the fi rst semester of the recently completed school year—or enough to produce 50 cases of the new bags. At the end of the 2011-12 academic year, The Kilgore Intermediate School students had collected more than 3,500 pounds or more than 262,000 bags.

Pak-Sher also gave nearly 300 fi fth-graders a tour of the bag manufacturing plant so the students could see exactly what came of their bags of bags.

“At the time, I said: ‘This will be something that’s neat, but it’s probably no big deal,’” Motley said. “But I have been completely amazed at the enthusiasm of the kids. I thought it would be a semester long deal and then fi zzle out, but it hasn’t. The kids just kept collecting bags.”

At the end of the 2011-12 academic year, The Kilgore Intermediate School students had collected more than 3,500 pounds or more than 262,000 bags.

Pak-Sher also gave nearly 300 fi fth-graders a tour of the bag manufacturing plant so the students could see exactly

what came of their bags of bags.

“The key is to get these kids, in this generation, to recognize that this is not trash that needs to go in the landfi ll,” said Motley. “The whole purpose [was for them to] see how something that normally goes into the trash can be converted to a product that they could put their hands on and do something with.

“It really grew much more than I thought it would and was received much better by the students than I thought it would be,” Motley said.

The incentive program grew out of a plan to get the school children involved in a hands-on recycling exercise, Motley said, and through a partnership with the Kilgore Economic Development Corp., which provided $25,000 to Pak-Sher to defray the cost of some of the equipment needed for the project.

“This project is a multi-generational, hands-on learning experience melding economic, social and ecological behaviors,” said KEDC Executive Director Amanda Nobles “It benefi ts Pak-Sher and their green marketing efforts, and teaches students that green is not only what’s right but also what’s profi table.”

Partially because of the project, Pak-Sher received the Community Small Business of the Year award in December for its commitment to the local East Texas community.

“Obviously Pak-Sher’s not doing this for the profi t,” Motley said. “A 50-case job is a small job for us. It’s a subsidized project, but it’s worth it. We are doing it again next year because we feel so strongly about it.”

Motley said the Keep It in Kilgore project has expanded the company’s thinking about “what we think we can do. “There was always a hesitation to recycle bags because they’re more diffi cult to handle,” Motley said. “We’ve decided we can do it, because we did it here. The next step is to determine, ‘How can we do this more effi ciently?’”

On a larger scale, he said the company is asking itself “‘How can we participate more broadly in the recycling effort around the country?’ We are all impacted by our resources,” Motley said. “It was a step for us in the evolution toward being a better local member of society.”

FEATURES


FEATURES

“High Density Polyethylene Pipes with holes for seggregating solid and liquid waste”

– Ms Poorvi C. Desai, Service to Plastic Industry

New Product and New Enduse Innovations For Entrepreneurs in Plastics Industry

New product as well as new enduse innovations in “Plastic Industry-Dawn Of Indian Industry”

would bring in expansions related to each manufacturing process of plastics. To share colours of knowledge amongst manufacturers of plastic products would lead to colours of rainbow of money in plastic industry with each manufacturer attain a safety net for his business. Plastics have grown from a mole to a mountain bringing in “Polymer-A Growing Plant Towards Fruition of Plastic Products”. New product as well as enduse innovations would help manufacturers achieve a safety net for their business for a period of above 15-20 years.

These manufacturers would have the flexibility of jumping from one enduse to another enduse which would lead to a multiplication of endusers in his business. These new product and new enduse innovations would help in increasing the selling price of the fi nal product which would lead to an increase of average selling price of the fi nal product bringing in a higher net profi tability and lower payback periods in comparison to existing business. An extremely high market potential of plastic products would bring in additional feather to the cap of existing business of manufacturers in Indian Industry. Plastics, coming out of its infant stage yesterday have moved towards a growing phase leading to a growing phenomenon today would continue to be “Plastic Industry-Dawn of Indian Industry”.

Enduse innovations in plastics would help manufacturers manufacture products for new enduses without an investment on plant and machinery and also without much investment in marketing of the products with new enduse innovations. New product innovations would help manufacturers to increase the product mix with an investment only in moulds and dies without any investment on plant and machinery and could manufacture products on the same plant and machinery. New product and new enduse innovations would make plastic rank as one of the top ranking material in agribusiness, building & construction, infrastructure and automotive enduse sectors helping plastic

increase the per capita consumption from a single digit to triple digit in the country.

Plastics For EntrepreneursIndian Industry, initiation of which takes place with

initiatives of entrepreneurs brings about a chain of new products each day as new born products. Plastic Industry which forms an element of Indian Industry brings about a fl exibility for entrepreneurs to manufacture multiple products on the same machinery with only an investment in dies, moulds etc in the form of new product innovations. New enduse innovations would be implemented without an investment in machinery and much investment on marketing by manufacturing plastic products on the same machinery with multiple enduses. Plastics to a new are few, plastics to a few are new. Plastics, an ocean of products which makes an entrepreneur produce products involving projects with low investments as high investments would bring in a fl exibility for entrepreneurs to start with low investments as well as high investments and plough back his profi ts into business bringing abut projects with high investments. Plastics, a growing phenomenon has grown from a mole to a mountain. Stepping in of plastics for entrepreneurs in Indian Industry has stepped up the future of entrepreneurs which has made the future of entrepreneurs bright. Plastics, in its raw stage makes entrepreneurs begin an industry which is in a raw stage growing into a growing phenomenon bringing about fruits of money helping entrepreneurs accomplish the mission of achievements with this growing phenomenon. Business in plastics, would bring about fruits of money for entrepreneurs with these “able” materials having the ability of producing tonnes of money with its versatility of longeivity and cost benefi ts to common man which has made plastic most common amongst common man.

Plastics, and its unbound boundaries which open up unbound gates due to its processability with multiple products made out of extrusion, injection moulding, blow moulding, thermoforming, calendaring and rotational moulding brings in limitless entrepreneurs into this industry. Colours of rainbow to plastic industry are new product as well as new enduse innovations which would lead to


FEATURES

“Plastic Industry-Dawn Of Indian Industry”. New product innovations would help entrepreneurs manufacture multiple products on existing machinery with an investment only in dies and moulds. New enduse innovations would help entrepreneurs manufacture products with multiple enduses with no investment in machinery and not much investment in marketing. Plastic involves high volume businesses out of which pipes made up of high density polyethylene would involve extremely high market potential and thus a high volume business in the country.

Plastics, materials of science brings in scientifi c results for common man making plastics most common amongst common man. Plastics, could be defi ned as “able” materials of being formed into multiple shapes, colours, designs and dimensions and could be defi ned as “capable” materials with its capability of being manufactured by more than a single manufacturing process e.g. extruded high density polyethylene pipes could be manufactured by blow moulding process(small length and small diameter pipes). Plastics, to a new are few, plastics to a few are new. Plastics, and its unbound boundaries have unlocked doors of money for entrepreneurs also helping them accomplish the mission of their achievements. Plastics, Greek and Latin to common man would bring about new enduses for the benefi t of common man. e.g. High Density Polyethylene pipes would help in segregating soild and liquid waste wherein liquid waste would pour out of the holes and solid waste would remain as residue. Seggregation of waste would thus become easier and less time consuming. Plastics, are versatile materials which bring in uncommon results for common man making plastics most common amongst common man.

Plastics, production with which have produced results for entrepreneurs would produce uncommon results for common man. Plastics, forms products of multiplicity bringing in multiplication of enduses and endusers. Plastics, which involves new product as well as new enduse innovations would bring about “Plastic Industry-Dawn Of Indian Industry”. Plastics, which formulates the future of entrepreneurs brings about new formulations of money for entrepreneurs in this industry. Plastics, roots with which have routed the future of entrepreneurs in this industry brings about fruits of accomplishments followed by money for entrepreneurs in Indian Industry. Plastics, have been unbound with new product as well as new enduse innovations which is directly proportional to the population of the country would bring in innovative results for the population of the country. Plastics, a tie with which entrepreneurs have been able to produce tonnes of money

have made entrepreneurs tie a tie of new product as well as new enduse innovations.

New Enduse Innovation - High Density Polyethylene Pipes with holes for segregating solid & liquid waste1. Waste is a material that no longer serves a purpose and

so is thrown away. If not carefully disposed off, it will have an impact on the environment, whether it be unsightly litter in urban streets or contaminated air, soil, or water. But what is equally important about waste is that it is recyclable. For example, if all human, animal and solid wastes are recycled back to soil, than we do not need inorganic fertilisers to maintain the yield of crops.

2. Today, India produces 180 million tonnes of foodgrains and consumer 13 million tonnes of inorganic fertilisers at a huge cost. Therefore, time has come when we have to look at the waste not merely as an environment polluter but recyclable material of great potential and energy saver.

3. In India, we produce 300 to 400 gms of solid waste per person per day in tonnes of normal size. The fi gure is 500 to 800 gms per capita per day in cities in Delhi and Bombay. The problem in these cities is how to dispose large mass of solid waste daily.

HDPE Pipes with holes for seggregating solid and liquid waste

(Source :http://harenvironment.gov.in/html/notifications/HOUSEHOLD%20WASTE.pdf)


FEATURES

Commonly practiced waste disposal/waste management processes in India include composting, biomethanation and incineration of Refuse Derived Fuel(RDF) pellets for power generation.

MSW Collection to Disposal Value Chain - Following steps :

1. Source Storage & Seggregation

2. Collection & Transportation

3. Dump Sites (Recyclable Materials Seperated)

4. Waste Transportation

5. Disposal in Landfi lls

(Source : EAI)

(Source : http://www.ebtc.eu/pdf/110926_Rep_Ebtc_Greentech_SolidWaste.pdf)

Urban India produces about 42 million tons of municipal solid waste annually i.e. 1.15 lakh metric tons per day

(Source : http://www.sparktherise.com/projectdetail.php?pid=5582)

High Density Polyethylene pipes would help in segregating soild and liquid waste wherein liquid waste would pour out

of the holes and solid waste would remain as residue. Seggregation of waste would thus become easier and less time consuming

� 1000mm Dia PE pipe as per IS 14333 for sewerage application.

� The wall thickness of the pipe: 61mm

� It weighs about: 175kg / Mtr

� Drilled Holes of 12 mm

(Validation & Inputs from a Large Diameter High Density Polyethylene Pipe Manufacturer in India)

ConclusionNew Enduse Innovations as

well as New Product Enduse Innovations in plastics would not only help increase the per capita consumption of plastics making but will also help the overall industry consequently making plastic as one of the top ranking material in agribusiness, building and constructions, infrastructure and automotive, medical and pharmaceutical enduse sectors bringng in “Plastic Industry-Dawn Of Indian Industry”.


FEATURES

Polyurethane demand to grow in coming yearsThe global market value of polyurethane will rise in

the coming years, with thermal insulation potentially becoming a key material application, predicts a new report by business analysts GBI Research. The report states that polyurethane rigid foams made from Methyl Diphenyl Diisocyanate (MDI), which have been used for thermal insulation purposes in developed countries for years, are now gaining acceptance in other regions and boosting the global demand.

In Europe, the energy performance of buildings is seen as key in achieving EU Climate & Energy objectives: cut 20% of greenhouse gas emissions by 2020, and make a saving of 20% on energy expenditure by the same year.

Polyurethane rigid foam as an insulation material is becoming more widely used in the Asia-Pacifi c region, as well as Central and South America, as governments formulate more policies promoting energy effi ciency and conservation. For example, China’s Ministry of Finance recently announced it was to allocate 1.7 billion RMB (US$11 billion) to support construction energy effi ciency programs in the country under its 12th fi ve-year plan, and this growingly relevant material is expected to be an

important part of this effort.

The global demand for polyurethane has steadily increased, due in no small part to Asia’s booming economies. Furthermore, GBI Research expects worldwide demand to grow at a Compound Annual Growth Rate (CAGR) of 5.8% from 12,018,579 tons in 2010, to 16,882,412 tons in 2016, with the Asia-Pacifi c region accounting for over 60% of this fi gure. Over the last decade, polyurethane manufacturing companies have moved into Asia in order to take advantage of lower production costs. The increase in the number of production facilities in countries such as China is considered to be the primary reason for demand growth – an assertion reinforced by an Asia-Pacifi c share of 53.5% of the total global demand in 2010.

GBI Research’s analysis shows that flexible and rigid polyurethane foams made up the bulk of the total end-use segment in 2010, accounting for 60% of the full amount. These materials, which are commonly used in the construction, automotive/transport, furniture and footwear industries, are expected to continue as the leading polyurethane products in the coming years.

New Thin wall Packaging filmsApplications of thin wall packaging range from dairy

ice cream tubs and yogurt pots to ready meals, bakery trays and long-life jar and can replacements. Applied Market Information LLC launched a new packaging event- Thin Wall Packaging Films 2012. The two day program was co-chaired by AMI consultants with extensive knowledge on the thin wall packaging markets: Jon Nash and Martyna Zimakiewicz.

In the inaugurating conference session, Amcor Rigid Plastics and Grupo Phoenix (leading FMCG packaging suppliers in North America) presented an overview of the changing landscape of rigid plastic packaging in the context of materials and design that helped the audience understand the role of innovation in consumer appeal and product differentiation. Greiner Packaging (a leading European

supplier of dairy packaging, with growing presence in the Americas) discussed different 'green' packaging options available on the market and stressed the importance of recyclability.

Product differentiation can certainly be enhanced by superior decorating technologies, of which in-mold labeling is a perfect example. There were a number of in-mold label producers in the audience, as new market opportunities in this segment attract research and development initiatives. Printing Company Verstraete assured that IML not only allows for excellent graphics and improved shelf appeal, but it can also provide functional barrier properties to extend product shelf life, when applied in combination with high barrier multilayer fi lmic substrates. Although IML is predominantly used with injection molded containers, the


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emergence of T-IML (in-mold label for thermoforming) is not to be overseen; Hekuma Automation's second and third generation machinery designs are contributing to bridging the gap on the market with that in regard.

Nevertheless, brand owners and packaging converters must realize certain limitations of IML, especially contour doming, multi-dimensional curves and contours, as pointed out by Fame Technology Solutions. The company highlighted the importance of prototyping and the pilot phase in order to minimize adjustments on production equipment. The thin wall packaging market witnesses technical developments in two competing production processes: thermoforming and injection molding.

This Chicago conference provided an opportunity for an open debate - Illig Maschinenbau (represented by Midwest Plastics) looked at the benefi ts of thermoforming, of which cycle speed, high output and cost were key. This topic was further developed on the second day of the conference by OMV-USA, which highlighted manufacturing advancements in the in-line extrusion thermoforming technology. On the other hand, Kortec Inc. explained how co-injection technology for multilayer thin wall packaging can improve options for differentiated marketing, fl exibility of design as well as scrap and cost control. This topic is well known to Husky Injection Molding, a machinery supplier, which presented the advantages of using integrated production solution and hot runners (i.e. single source supplier responsibility, higher performance and integrated controls).

The manufacturing technology advancements are equally matched with developments of new materials. Braskem discussed innovations in polypropylene for thin wall packaging and the benefi ts of bio-polyethylene, while Kuraray America presented the latest achievements of using high performance EVOH barrier fi lms, especially applicable for plastic packaging replacing traditional metal or glass packaging formats.

Netstal Machinery continued this topic and talked through a number of barrier solution technologies, their strong points and challenges. In terms of material sourcing for thin wall packaging, the role of recyclate is an area of steady growth. Amut North America tackled the challenge of improving sustainability though recyclability and changing 'trash to cash'. The company demonstrated its sorting, washing and fl aking capabilities, which allow for effi cient

and sustainable material recovery from post-consumer PET bottles.

The second day of the conference focused greatly on barrier and retort packaging in response to the growing industry demand, resulting mainly from can replacement initiatives.

Rexam Food Containers analyzed the range extension opportunities for ambient packaging, proposing the concept of a 'plastic can'. The presentation by Winpak Inc., supplier of peelable retortable lidding to the thin wall industry, shared scientifi c data on retort process versus oxygen and moisture barriers, impact resistance properties and retort shock. Furthermore, Marbach (the headline sponsor) discussed molds, automation, temperature and quality control systems - the technical aspects of using barrier IML technologies. Printpack continued the discussion of material and design optimisation for high barrier ambient food packaging, introducing its desiccant technology, which would enhance EVOH retort performance and minimize the retort shock. Lastly, Graham Packaging took a stand on the topic of extended shelf life packaging for food products, comparing the existing technologies and categorizing their downfalls. He stressed the importance of different cooking/preparation methods in the choice of barrier technology, as well as regulatory issues.

AMI Consulting report says thin wall packaging markets to consolidate in EuropeAn earlier report from AMI Consulting, published in March 2012, pinpoints that in recent years thin walled packaging, has become a space of dynamic structural changes in the rigid plastics market especially in Europe. Large participants of this 2.8 million tonne market have been in the vanguard of change as they fi ght to secure profi tability in the face of the price and innovation requirements of their customers. Particularly within thermoforming applications, profi t erosion has been a symptom of overcapacity and the standardisation of packaging.In response, the industry is evolving to satisfy market needs more profi tably, characterised by:a) Greater throughput across a reduced number of converting sites, b) Focused investment in core sites, c) Investment in integrated extrusion thermoforming, d) Exit from unprofi table business,e) Emphasis on differential advantage. In 2011, the top 10 converters accounted for over 40% of the market. Thin wall packaging supply in Europe remains relatively fragmented and more consolidation is expected.


Blown Film Line• Reifenhauser kiefel - world's largest range of blown fi lm lines

from single source.

• Gravimetric control system with individual weighing hoppers for accurate dosing.

• Extruder sizes ranging from 40 mm OD to 200 mm OD.

• REItorque drives.

• High Output at reduced melt temperature processing.

• High Effi ciency Mixer which produces over 200,000 mixing cycles for homogeneous melt.

• Flexible screw design for production of PE-LD, PE-LLD, PA, EVOH, k-resin, PET without screw-change.

• Own development, design and manufacturing of extruder screws.

• High wear protection screws & Armouring of barrels within the Reifenhauser group by ReiloyMetall GmbH.

• Extruder barrel with heating and cooling unit.

• Widest range of 3 layer die heads Ø 100 – 2200 mm

• Most universal program for 5 layer Ø 150 – 1200 mm

• Two die head systems for 7 and 9 layer Ø 300 – 700 (750) mm

• Five different types of cooling rings for various requirement.

• All the three options for gauge control – Air volume control,thermal control air ring and thermal controlled die.

• Both Stack and spiral diehead option for 5 and 7 layer fi lm.

• Non contact turner bar – microporous turner bars.

• Multiple option of winders.

• Rapid change Automation system.

• Excellent after-sales network.

For more info please contact:

Reifenhauser (India) Marketing LimitedMumbai, Maharashtra

Tel: +91 22 - 2686 2711Fax: +91 22 - 2686 2722

E-mail :[email protected]

5 layer blown fi lm

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BASF in India publishes Report 2011� Report outlines economic, environmental and social

performance for BASF companies in India

� Strong financial performance: sales in India touch Rs.7500 crores

� Greenhouse gas emissions down by 10%, air pollutants down by 30% despite increased production

� BASF recognized for safety practices in India

� Social outreach programs focusing on education

Mumbai / Bangalore, India – June 29, 2012 – BASF in India has published its 2011 corporate report, based on its performance across three dimensions of sustainability - economy, environment and society. In its third year of publication, the BASF in India Report documents business highlights, to sales and employee fi gures, to environmental data, to social and educational initiatives undertaken and awards and recognition achieved in 2011.

“The BASF in India Report shows how we create value for our stakeholders by combining economic success with social responsibility and environmental protection,” said Mr. Prasad Chandran, Chairman BASF Companies in India & Head South Asia. “With this report, we aim to ensure transparency in our business operations and promote open dialogue with our stakeholders and the communities where we operate.”

EUR 1.158 billion sales to customers in IndiaBASF in India achieved EUR 1.158 billion in sales by

location of customer (Rs.75,137 million ), an increase of 15% compared to 2010 (Rs.61,056 million) despite economic volatility. With the merger of BASF legal entities in India and acquisition of the specialty chemicals business of Cognis in India, the focus remained on chemical innovations that address the challenges brought about by global megatrends, such as the need for resource effi ciency, enhanced food and nutrition, and better quality of life.

Managed emissions with increased production

In 2011, BASF in India achieved a reduction in greenhouse gas (GHG) emissions of 10% (59,219 metric tons), while

emissions of air pollutants saw a decrease of 30% (327 metric tons) compared to 2010. Total primary energy consumption, which constitutes electricity, fuel and steam consumption per ton of product, decreased by 11% (38,536 MWh), 19% (61,196 MWh) and 4% (65,823 metric tons) respectively. Overall energy effi ciency also improved due to improvements in certain production processes.

In 2011, BASF’s Mangalore site won fi rst position in the state-level “Safe Industry” award from the Government of Karnataka, in recognition of BASF’s consistent care and commitment towards the safety and security of its employees and the local communities surrounding its operations in Mangalore.

Social outreach focuses on educationOn the social front, BASF in India undertook a joint project

on Water Education with UN-HABITAT and The Energy & Resources Institute (TERI). The project targets 5,000 students from 25 schools in Mangalore and aims to bring about behavioral change among young students regarding water use. It will equip schools and students to analyze the physical and chemical properties of water and impart skills on how to purify water.

Under its “Million Minds” initiative, BASF worked closely with industry associations to formulate a code of ethics for corporates, to help improve governance standards. BASF also held its seminar series on corporate governance and business ethics in collaboration with educational institutes.

In the International Year of Chemistry, 2011, BASF added momentum to its ongoing educational projects and strengthened academic relationships through contests and lectures in science colleges. BASF also continued the roll-out of its global chemistry education program, BASF Kids’ Lab, which aims to introduce young students to the fascinating world of chemistry.

About BASF in IndiaBASF has successfully partnered India’s progress for

over a century. Today, our portfolio ranges from chemicals, plastics, performance products, functional solutions to agricultural solutions. With our innovative products and

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solutions, we are well positioned to meet the current and the future needs of India. We create chemistry for a sustainable future by balancing our business, ecological and social goals. In 2011, BASF in India registered sales of €1.2 billion. On the ecological front, we have a robust Environment, Health and Safety (EHS) policy in line with global standards. On the social front, we focus on contributing to the society with initiatives around relief and rehabilitation, women empowerment, education and improving governance standards in India. BASF in India has 2070 employees, 9 production sites and 2 R&D centers that work closely with BASF’s Global Technology platform.

About BASFBASF is the world’s leading chemical company: The

Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success, social responsibility and environmental protection. Through science and innovation we enable our customers in almost all industries to meet the current and future needs of society. Our products and system solutions contribute to conserving resources, ensuring healthy food and nutrition and helping to improve the quality of life. We have summed up this contribution in our corporate purpose: We create chemistry for a sustainable future. BASF posted sales of about €73.5 billion in 2011 and had more than 111,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com

6th Symposium for Plastics Processing a tremendous successMore than 200 visitors attended the 6th Plastics

Processing conference, held by the KREYENBORG Group on os" and io" May, 2012 at "Gut Havichhorst in Muenster, Westphalia.

With a total of 18 exciting presentations, attendees could educate themselves on the topic "New trends in the plastics industry".

Jbrg Auffermann (BASF - The Chemical Company) presented the fully biodegradable product Ecovio® to interested attendees. Ecovio is made of renewable raw materials and of Ecofl ex®, the familiar BASF biodegradable plastic on a petrochemical basis. The fi rst item in this new product class is called Ecovio® and it contains, aside from Ecofl ex®, polylactic acid (PLA). PLA comes from corn, a renewable raw material, and it is purchased by BASF. The fi rst area of application will be fl exible fi lms used for shopping bags, among other things .

Frank Brauer (BKG Bruckmann & Kreyenborg Granuliertechnik GmbH) presented innovations in the fi eld of underwater pelletizing technology. The focus was BKG's Optigon system, which allows for enormous energy savings.

Under the topic "From machine to plant automation" Heiner Bommers (BSG Bruckmann Steuerungstechnik GmbH) outlined the benefi ts from complete automation due to reduction of interfaces - during engineering and

installation as well as production.

Frank Knittel (Buss AG) talked about "High-performance Carbon Black Masterbatches using 4-Flight Kneader Systems". Successful compounding of carbon black masterbatch requires high output rates while maintaining a constant level of quality and consistency. An optimum dispersion and product homogeneity is the key for end-user and extrusion properties as well as processing parameters. The Buss Kneader® provides optimum product dispersion leading to improved product and end-user performance.

Sabine Schonfeld (Coperion GmbH) presented the ZSK Mc18 - the new dimension in compounding technology. This is a new, constructive development with a signifi cantly improved profi tability. The energy effi ciency was increased due to reduced specifi c energy input. The ZSK Mc18 offers maximum fl exibility due to a wide range of applications. At the same time, the throughput could be increased by 30%.

Kai Kappe (Extricom GmbH) showed new trends in the fi eld of worldwide PET recycling and introduced the RingExtruder XPV extrusion system. Extricom claims that the patented unique design represents a successful approach to international PET recycling facilities and is already successfully in operation in such systems for PET recycling at very high throughput rates.

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The presentation title of Dieter Grofs and Dr. Wolfgang Schneider (FEDDEM GmbH & Co. KG) was "From Pellet to Pellet - Customized solutions worldwide" where they identifi ed the process requirements on plant suppliers.

In the field of foamed polyolefins, Florian Rapp (Fraunhofer Institute for Chemical Technology ICT) presented the incorporation of new additives (e.g. fl ame retardants), the investigation of new material compositions, and the decrease of bulk density as future challenges.

KREYENBORG Plant Technology GmbH & Co. KG presented the highly energy effi cient drying of different materials with KPT's infrared technology IRD (Andreas Holt) as well as a case study of a turn-key mixing plant in the fi eld of plastics recycling (Wilfried Binternagel).

Stefan Wbstmann (KREYENBORG GmbH) talked about the latest development in the fi eld of melt fi ltration. The new V-Type-Backfl ush-Screen-Changer with power backfl ush technology type K-SWE-4K-75-V/RS was presented at the NPE in Orlando at the beginning of April for the fi rst time worldwide.

Oliver Brandt (KREYENBORG GmbH) explained the process engineering tasks of gear pumps in direct extrusion and showed the related control concepts in direct extrusion lines.

Stefan Kalt (K- Tron Switzerland LLC) talked about the process optimization in extrusion and explained the factors infl uencing the product formulation. Only a perfectly adjusted system will deliver a perfect fi nal result.

Kuhne GmbH, represented by Dr. Werner Rahm, presented its compact-extruder series KCE, which enables the direct extrusion of PET sheets without pre-drying.

Gunther Klammer (MAS Maschinen- und Anlagenbau Schulz GmbH) compared recycling and compounding with the conical co-rotating extruder with other systems, especially with the co-rotating twin screw extruder.

Uwe Stellmann (Schenck Process GmbH) talked about small quantity dosing feeders. In the compound industry small quantity feeding asks for the highest quality of the complete feeding system consisting of the feeder and the entire plant installation in which the feeder is operated. Therefore, prior to placing orders, a close coordination between the LlW feeder supplier and the customer is necessary to select the exact feeder for the process required

by the customer within the customer specifi c plant. In case modifi cations or reconstruction of the existing installation are required, the related expenses can be considered to be a reasonable investment regarding a precise and reliable small quantity feeding system.

Dr. Thomas Grimm-Bosbach (Seebach GmbH) explained that the polymer industry is driven by cost pressure (higher throughput, longer lifetime) and required product quality (fi ner fi ltration, "optical" quality). Grimm-Bosbach is of the opinion that modern melt fi lters must fulfi l these requirements. The optimization of melt fi ltration is done by enlargement of the fi lter area, usage of the smallest possible unit, adjustment of the fi lter medium to the customer process, as well as choosing of the right fi ltration technology. These points have proven successful with Seebach fi lter elements in KREYENBORG piston screen changers.

Andreas Pechhacker (Starlinger & Co. Gesellschaft mbH) illustrated the factors infl uencing rPET quality and gave an overview of the recoSTAR PET lines.

After the presentations, interested visitors could participate in tests at BKG's in-house test facility. The test facility is equipped with a 60mm twin screw extruder, a melt pump GPE 90/90-01, different screen changers with and without backfl ush function as well as pelletizers type AH 2000 and Compact 120, and the appropriate water system Optigon2 and CrystallCut® CCR 1.

Additionally an IRD B-type and an IR-Batch are available. Experimental throughputs up to 1,000 kg/h are possible. In the fi rst step, rPET bottle fl akes with a bulk density of 0.28 kgs/m3 were crystallized and dried in the IRD-B-180/270-135. Then these were emptied into a buffer tank, from which the dried fl akes were transferred to the extruder. The subsequent melt fi ltration was done by a KREYENBORG backflush screen changer type K-SWE-125 4K175-V/RS. In the next step, the fi ltered melt was processed into spherical pellets with a BKG pelletizer type Compact 120. The Drying was carried out on a water system Optigon 2 (BKG).

For more info please visit Reifenhauser (India) Marketing Ltd. Email:- [email protected]

www.reifenhauserindia.com

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INTERNATIONAL NEWS

QAPCO to proceed with petrochemical complex project in Ras LaffaQatar Petrochemical Company

(QAPCO) has confi rmed that the planned US$ 5.5 bln Ras Laffan Mega Petrochemical Complex Project is on schedule in accordance with the original timetable and scope, and that no changes to either are currently under consideration. Dr. Mohammed Yousef Al-Mulla, QAPCO Vice Chairman and CEO, said "We

are proceeding with the project as per the announced scope, size, and shareholding pattern, and hopefully our facility will be commissioned on the scheduled date. No changes on the ownership of the project have taken place; Total Exploration and Production is our partner in QAPCO ownership, and will have a stake of QAPCO's share from the project, as

Packaging firms in Russia appeals to block ban on PET beer bottleLeading Russian PET packaging

producers have called on the Russian government to block a ban on PET beer bottles in Russia, Belarus and Kazakhstan. The companies claim the ban will result in thousands of workers losing their jobs.The Russian government proposed a ban on PET beer packaging last year as an attempt to curb drinking in the country.According to the Russian business paper RBC, several PET packaging companies have challenged the

ruling, including Naberezhnye Chelny, Nalchik, Krasnodar and Saratov. The market share of PET packaging in Russia is currently estimated at 50 percent and, according to Russian analysts, a ban may also have a negative impact on the water and soft drinks businesses. It is also expected to hurt local producers of polymer raw materials. Alexander Melnikov, commercial director at Europlast, a Russian plastic packaging producer, a ban will put the clock back by 5-6

The latest Waste & Resources Action Programme (Wrap)

figures show that plastic bag use in England and Northern Ireland is up over last years According to the organization, 8 billion thin-gauge bags

years in the industry.The same opinion is shared by Vladislav Kuznetsov, CEO of Sibur-PET, one of Russia’s largest producers of PET resin. In the meantime, the world’s largest beer producers, operating in Russia, have also warned that the transition to glass containers will result in an increase of beer prices in Russia by 15 percent, which, in turn, may result in a drop of beer sales in Russia by two times and the increase of the share of strong spirits.

per our Joint Venture agreement." The complex, which will be built at an estimated investment cost of QAR20.1 bln (US5.5 bln) includes a world scale steam cracker, with the feedstock coming from natural gas projects located in the north of Qatar. The project will be carried out on a lump sum turnkey basis and is scheduled for completion in 2018.

were issued in the United Kingdom in 2011, a 5 percent increase.But when you drill down on those fi gures, you see a 22 percent drop in Wales, a 7.5 percent rise in England, an 8.1 percent rise in Northern Ireland and

no signifi cant change in Scotland over the period. Wales has a plastic bag tax. The British Retail Consortium’s head of environment, Bob Gordon, said waste from plastic bags is not signifi cant.

Plastic bags in England on rise


First-its-kind bio propylene glycol production plant unveiled in Belgium

BASF and Oleon have celebrated the opening of a fi rst-its-kind

bio propylene glycol production plant in Ertvelde, Belgium. The plant leverages a highly sustainable glycerin-based manufacturing technique devised and licensed by BASF to manufacture bio propylene glycol. Oleon played a key role in the realization of the process. Hydrolysis of propylene oxide, a product derived from crude oil, is the

traditional process to manufacture propylene glycol. On the other hand, glycerin is used as the starting material at the Ertvelde facility. Glycerin is derived from oils and fats formed as by-products during the production of oleochemicals. Moreover, the ground-breaking glycerin-based process employed at the Ertvelde plant involves fewer manufacturing steps when compared to hydrolysis, thus enabling

INTERNATIONAL NEWS

PolyOne plans to open new facility in South Africa

In a bid to serve customers throughout Africa, PolyOne

Corporation has announced plans to open a new facility in the Montague Gardens industrial precinct in Cape Town, South Africa. Leveraging newly acquired ColorMatrix technology, PolyOne will initially supply liquid colorants, additives and dosing

equipment, which are used by customers who manufacture products such as PET containers for the beverage and personal care markets. The facility is expected to open in August 2012, providing services such as sales, technical support and rapid color development through the on-site color laboratory. "When we

Oman and Abu Dhabi to develop refinery and petrochemicals complex planned in Duqm

Oman Oil Company (OOC) and International Petroleum

Investment Company (IPIC), owned by the Government of Abu Dhabi have formed a joint venture company to own and manage the development of a refinery and petrochemicals complex planned in Duqm. OOC

and IPIC will each own 50% stak in the new company to be named Duqm Refinery and Petrochemical Industries LLC. The refi nery, which is the first phase of the project, is planned with a capacity of 230,000 bpd, and expected to be completed by 2017. The second phase of the

Oleon to achieve highly effi cient bio propylene glycol production. BASF also delivers the chemical catalysts, which play a key role in the cutting-edge bio propylene glycol production. Propylene glycol is a multifunctional alcohol used in cosmetic products and pharmaceuticals, as well as in plasticizers and solvents.

project will focus on the development of a petrochemicals complex. The project gains signifi cance due to its establishment at a strategic location like Duqm area and its vicinity to one of the world’s key maritime routes.

acquired ColorMatrix last year, we committed to a global 'invest to grow' strategy that would add value to our customers and our shareholders. Our new facility in South Africa illustrates our commitment to this strategy," said Robert M. Patterson, executive vice president and chief operating offi cer, PolyOne Corporation


INTERNATIONAL NEWS

Scotland mulls tax on plastic bags

The Scottish Government is planning to charge a tax

for using plastic bags. Accroding to releasethe government is set to launch a three-month consultation on the possibility of retailers charging a 5-pence levy (about 8 cents) on plastic carrier bags.Scotland’s environment secretary, Richard Lochhead, said: “Carrier bags are a highly visible aspect of litter. By reducing the amount being carelessly discarded we can cut litter and its impact on our environment and economy. A small charge should also encourage us all to stop and think about what we discard and what can be reused. “This initiative will see retailers donating the proceeds to charitable good causes. It is hoped this could be up to 5 million pound sterling per year (about $7.78 million) after retailers have covered their costs.”

Tver oil refining complex mulls petrochemical unit in Zhytomyr region

Russia’s closed joint-stock company Tver oil refi ning

complex plans to build a new petrochemical facility in Zhytomyr .

According to report Tver oil refi ning is studying the issue of building petrochemical production facilities in Zhytomyr region. According to

the release the new petrochemical production facilities in the region are to produce motor fuel, organic synthesis products and mineral fertilizers. Oil, natural gas and coal will be used as feedstock. It is also learnt that the approximate cost of the project is around US$20 bln.

New standard to encourage plastics recycling in Europe

A new European wide standard for recycling post-consumer

plastics should increase recycling rates across the region, according to the scheme’s partners. The new certification and audit scheme -- EuCertPlast -- will implement existing CEN standard 14343 on post-consumer plastics recycling. By standardizing the process and focusing on traceability, plastics recycling rates will increase, says the organization.

The certifi cation will also improve REACH and food contact compliance and increase transparency, it adds. Antonio Furfari, from Brussels-based European Plastics Converters (EuPC), one of the scheme’s partners, says the aim was to have a well-established and transparent plastics recycling industry.

“Recyclers need to show the customers – the converters and suppliers – that they are operating correctly,” said furfari

Furfari says EuCertPlast will monitor the entire recycling process, from entry of waste material to fi nal recycled product, and will check the manufacturer has the necessary permits for stages such as stock management, recycling process and recycling output.

Next year, EuCertPlast will combine with Germany’s Blue Angel scheme, a certifi cation for products that are environmentally friendly. Products certifi ed by EuCertPlast across Europe could potentially show the Blue Angel label, said Furfari.

EuCertPlast is currently audited by Germany-based Cyclos but the organization are looking to accredit more auditors across the EU, “at least one per country,” he added.

The partners include the European Plastics Recyclers (EuPR), EuPC, Cyclos, the European Plast ics Recycling Organisation (EPRO), Recovinyl, ITW Group and Scoeller Arca Systems. EuPR says the European plastics recycling industry currently comprising 1,500 companies which recycle more than 4.5 million metric tons or waste per annum.

According to a paper released by EuPR in 2010, 24.9 million metric tons of plastics used by consumers ended up as post-consumer waste in 2008.

Some 51.3 percent of this waste was recovered, with 5.3 million metric tons recycled as material and feedstock and 7.5 million metric tons recovered as energy.


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Linde Philippines awarded contract by JG Summit Petrochemicals Corp

Linde Philippines Inc, a member of The Linde Group, announced that it had been awarded a contract

by JG Summit Petrochemicals Corporation to install and operate nitrogen and hydrogen on site plants to support JG Summit's petrochemical plant and the installation of the fi rst naphtha cracker plant in the country of Philippines. According to the release Linde's total investment of PHP 630 mln for these facilities will further consolidate its position as the leading industrial gas supplier in the country. In January 2012, Linde Philippines brought onstream its new 24 tons per day carbon dioxide plant in Balamban, Cebu with an investment value of PHP 205 mln. The company is also investing PHP 95 million to install a nitrogen generator in Muntinlupa City to meet additional demand. Linde Philippines has also recently invested PHP 17 million in its regional production hub for VAPORMATE, a post harvest fumigant with applications for the agricultural sector. Mr Tristan Dumlao MD of Linde Philippines said that "We are delighted to be able to support our valued customer JG Summit in this watershed project, which is expected to provide a boost to the petrochemical industry in the Philippines and contribute to further growth in the national economy." Mr Rob Hughes, cluster head responsible for Linde's businesses in Korea and the Philippines, said that "This latest investment is refl ective of The Linde Group's commitment to grow its business in the Philippines, which we see as an attractive investment destination given its strong growth prospects. We look forward to a successful long term partnership with JG Summit Petrochemicals as it moves forward with its growth plans."

Mr Lance Gokongwei president & COO of JG Summit said that "By investing to build the fi rst naphtha cracker plant in the country, JG Summit will have a steady source of olefi ns for its petrochemical plants. It will also be able to supply other plants which are presently relying on imports to sustain their local operations. I am pleased that we have reached this agreement with Linde Philippines and look forward to a successful long-term partnership."


BUSINESS NEWS

Fresh Loans for Haldia PetrochemicalsHaldia Petrochemicals (HPL)

has managed to secure Rs 150 crore in fresh loans from public sector banks. According to reports, the April-June quarter that was its worst quarter ever, as HPL suffered loss of Rs 400 crore as it could operate at 50% capacity because of a funds crunch. The State Bank of India, IDBI and Allahabad Bank have provided extra working capital loan in a bid to aid the company to buy more

feedstock naphtha, helping prop up run rates to 70%. The company has now started making a small profi t at the operating level. The buoyancy in the petrochemical business has helped the company, too. Falling naphtha price improved profitability, giving the banks the confi dence to lend to HPL. No default on part of HPL for repayment of its interest or principal despite being under severe fi nancial strain also helped its case.

JBF Petrochemicals signs deal with BP for PTAJBF Petrochemicals Ltd., a

subsidiary of JBF Industrie has entered into an agreement with BP for licensing BP’s latest generation Purified Terephthalic Acid (PTA) technology. Plans are underway to build a 1.25 mln tpa unit at Mangalore SEZ to produce PTA, the primary feedstock for polyesters to go on stream by the end of 2014. With this, the company’s requirements for captive PTA will be met at the lowest possible cost. It would also make the integrated operations in India and the UAE competitive.

This is the fi rst third party, non-affi liate, license agreement that BP has signed. Nick Elmslie, chief executive of BP's global petrochemicals business, ''Our PTA technology has signifi cantly lower capital and operating costs compared with conventional PTA plants and is more energy effi cient, uses less water, and produces less solid waste than its competitors. We

have invested significantly in our proprietary technology and there are two routes to monetise this; one is through investment and one is through licensing. We have decided that the maximum value to BP will come both from investing in projects such as our Zhuhai 3 project in Guangdong, China and through licensing.''

Over the years the PTA market has continued to grow with over 80% of the demand now in Asia, of which China alone accounts for 50%. ''The market is now of such a scale - greater than 50 mln tpa and continuing to grow at close to 7% - that three or four new world-scale plants per year will be needed. This creates a material opportunity for us to add value by way of our technology,'' says Elmslie. B C Arya, chairman JBF Industries Ltd, and director JBF Petrochemicals, says, ''This investment is highly strategic for us, fulfi lling our captive requirements for PTA at the lowest possible cost. This

will make our integrated operations in India and the UAE highly competitive for the long term and underpin our position as one of the world's leading polyester producers.''

Pennsylvania to provide financial aid to Braskem’s acquisition

Pennsylvania will provide financial assistance for

Braskem America's acquisition of parts of Sunoco Inc's idled Marcus Hook refi nery, the state governor said, as per Reuters. The state will support Braskem's acquisition of propylene splitters from the shuttered refi nery with US$15 mln in fi nancing so long as the company invests at least US$56 mln at the project site, Governor Tom Corbett said. The deal is also contingent on Braskem creating a minimum of 28 new jobs and retaining 119 existing employees for at least fi ve years. The total cost of the acquisition was not disclosed.

The company has secured feedstock supply for its operations in Pennsylvania. Braskem had bought Sunoco's polypropylene bus iness in 2010 and has been receiving output from the refi nery for reuse in its chemical manufacturing process.


BUSINESS NEWS

Idemitsu Kosan Formosa Petrochem to sell hydrogenated hydrocarbon resinIdemitsu Kosan Co., Ltd. and

Formosa Petrochemical Corp. have concluded a basic agreement on the establishment of a joint-venture company to manufacture and sell hydrogenated hydrocarbon resin. Plans call for fi nalizing detailed terms in the future, aiming to establish the joint-venture company in the H2 of fiscal 2012 and to complete installation of equipment in fiscal 2014.Hydrogenated hydrocarbon resin (trade name: I-MARV) is a colorless, transparent, odorless resin with

outstanding thermostability and thermal resistance, used in applications such as tackifi ers for hot melt adhesives used in disposal diapers and polyolefi n resin modifi ers. Since 1994 Idemitsu Kosan has produced hydrogenated hydrocarbon resin using its own unique technologies at the Tokuyama Plant (manufacturing scale: 10,000 metric tons/year). However, in light of expectations for growth in the hydrogenated hydrocarbon resin business in response to growing demand in emerging countries, it

has concluded with Taiwan FPCC a basic agreement and memorandum of understanding on establishment of a joint-venture company to strengthen manufacturing and sales. Taiwan FPCC, a member of the Formosa Plastics Group (FPG), is engaged in petroleum refi ning and manufacture and sale of petroleum products. It also has advantages in areas such as the ability to provide a stable supply of raw materials for hydrogenated hydrocarbon resin and its location in an area experiencing growing demand.

Ineos licences PP processes to Russia’s ZAo Vostochnaya NeftechemicheskayaIneos Technologies has announced

that is has licensed its Innovene G, Innovene S and Innovene PP processes to ZAO “VOSTOCHNAYA N E F T E C H E M I C H E S K A Y A COMPANY” (ZAO VNHK), a subsidiary of OJSC NK ROSNEFT for VNHK’s new petrochemical complex in Nakhodka Russian federation. This is a second award for INEOS Technologies by ROSNEFT companies. Thus JSC Angarsk Polymer Plant in Angarsk, Russian Federation selected Innovene S PE technology in 2010. All VNHK’s units will incorporate INEOS’ latest polymer technology advances. Engineering work is now underway. Peter Wil l iams, CEO of INEOS Technologies, commented: “We are

delighted that ROSNEFT’s subsidiary, one of the world’s leading oil and gas companies – following the results of bidding – has selected INEOS as for execution of Nakhodka petrochemical complex project. The combination of broad product coverage and excellent

operability of the dual PE and PP platforms meets the requirements of both existing and future markets fully. We look forward to working with “VNHK” through engineering and construction to make the Nakhodka project a success.”

RIL holds roadshow in Singapore for $1.5 bln loanReliance Industries held the

first leg of a road-show in Singapore to raise US$1.5 bln foreign loans to fund the expansion of its petrochemicals facility at

Jamnagar. The second leg of the road-show will be held in Taipei on July 13. The Indian major requires banks to commit their fund offerings by early August.


BUSINESS NEWS

BPCL and LG Chem together to set up petrochem plant in KochiBharat Petroleum Corporation

(BPCL) has entered into a joint venture agreement with Korea’s LG Chem to set up a petrochemical plant with an investment outlay of Rs 6000 crores. The petrochem plant will be located adjacent to its refi nery in Kochi as part of plans of backward integration. The new plant will produce superabsorbent polymers, acrylic acid, acrylate, and butanol

- using 300,000 tons of propylene produced by the Petrochemical Fluid Catalytic Cracker (PFCC) unit of Kochi Refinery. Completion of the petrochemical fl uid catalytic cracker (PFCC) will coincide with completion of the refi nery expansion in 2015-16. The joint venture would invest up to Rs 6,000 crore as debt and equity to set up the plant beginning early next year.

Kemya plan to build specialty elastomers project at Al-Jubail

Kemya, a 50-50 joint venture b e t w e e n S A B I C a n d

Exxon Chemical Arabia Inc have announced that they will together construct a world-scale specialty elastomers facility at the Al-Jubail Petrochemical Company . The facility will be integrated with the existing Jubail complex and is expected to be completed in 2015. The companies have approved the next stage of project development -- engineering,

procurement and construction (EPC). The facility will have the capacity to produce up to 400,000 tpa of rubber -- including halobutyl, styrene butadiene, polybutadiene, and ethylene propylene diene monomer (EPDM) rubbers -- thermoplastic specialty polymers, and carbon black to serve local markets, the Middle East and Asia. Kemya has awarded the EPC contract for the elastomers facility to Technip, Tecnicas Reunidas and Daelim. Mohamed

Al-Mady, SABIC Vice Chairman and CEO, said, “The Kemya elastomers facility demonstrates our commitment to build and champion a first-rate rubber industry in Saudi Arabia

Oman and Abu Dhabi to develop refinery and petrochemicals complex in Duqm

Om a n O i l C o m p a n y (OOC) and International

Petroleum Investment Company (IPIC), owned by the Government of Abu Dhabi have formed a joint venture company to own and manage the development of a refi nery and petrochemicals complex planned in Duqm. OOC and IPIC will each own 50% stak in te new company to be named Duqm Refi nery and Petrochemical Industries LLC.The refi nery, which is the fi rst phase of the project, is planned with a capacity of 230,000 bpd, and expected to be completed by 2017. The second phase of the project will focus on the development of a petrochemicals complex. The project gains signifi cance due to its establishment at a strategic location like Duqm area and its vicinity to one of the world’s key maritime routes.

Saudi Aramco, Sumitomo sign up Petrofac for the Rabigh IISaudi Aramco and Japanese

company Sumitomo Chemical have signed a contract for British group Petrofac to build two units for the Rabigh II petrochemical expansion project. Under Rabigh II, an existing ethane cracker will be expanded and

a new aromatics complex will be built using around 3 million tonnes per year of naphtha to make higher-value petrochemical products. Sources feel the total value of the two contracts was around $500 million.


Brazil's Braskem to invest $56 mln in USBraskem SA will invest $56

million and create at least 28 new jobs as part of a deal to acquire Sunoco Inc.'s propylene splitter assets and retain its PP operations in Marcus Hook. Pennsylvania offi cials said in the release that the state offered Braskem $15 million in state support to retain production at the polypropylene facility. Braskem had opened the facility in 2010, using propylene produced by Sunoco as an offshoot of its gasoline refinery in Marcus Hook, but the future of that site was placed in doubt when Sunoco decided to shutter the unprofi table refi nery. "The acquisition of the splitter reinforces our position as the leader in Polypropylene in the United States and ensures the future

of our Marcus Hook operations," said Braskem America CEO Fernando Musa. Pennsylvania officials noted that the deal also requires Braskem to retain 90 jobs at its Philadelphia headquarters and 10 jobs as its technology center in Pittsburgh.

BUSINESS NEWS

Taiwan's Kuokuang to set up petrochemical plant in Malaysia

The Johor government and Taiwan's CPC Corp (formerly known as Chinese Petroleum Corp) have signed an agreement early last

week to build a US$10.99 bln (35 bln ringgit) petrochemical complex in Pengerang, Johor, according to Reuters. Financial executives close to the deal say CPC's unit Kuokuang Petrochemical Technology Co, in whixh it holds a 43% stake, will take the lead in building the complex.

Braskem acquired the PP resin plant from Sunoco, who in turn had acquired the plant from Epsilon. The PP resin plant was operating under the Epsilon name in the mid-1990's, obtaining propylene monomer from the Sunoco refi nery.


PRODUCT NEWS

Octal has introduced the new unique direct-to-sheet

process (DPET™) that eliminates five energy-intensive stages of the conventional sheet production process (pelletizer, SSP, compactor, dryer and extruder). DPET™’s direct-to-sheet process results in a material with superior clarity and gloss and ensures that there is no chance for contamination to enter the system.

Novel injection molding process from MecaplastLeading automotive plastics

component supplier Mecaplast (Monaco) believes it can cut the weight of interior and exterior trim parts by between 30% and 50% by using a newly patented injection molding processing technology in combination with novel polypropylene compounds. Mecaplast is about to embark on a French government-sponsored project called Plume (French for "feather") to industrialize the process, which relies on a combination of moving mold cores, a chemical blowing agent, and lightweight reinforcing fi llers.

The project starts in September, and will run for two years. It will have a total budget of €2.4 million ($3 million The project will also involve the participation of several other French-based companies: Japanese compounder Sumika Po lymer Compounds (Saint-Martin de Crau); mold-maker Cero (Nantes); polymer science research laboratory IMP at the University of Saint-Etienne; and Cemef (Sophia Antipolis), a research

laboratory with expertise in process simulation. "Incorporation of parts made by the Plume process could lead to a total vehicle weight reduction of between 5 and 7 kg," says Elsa Germain, Research and Innovation Engineer at Mecaplast. "This will have an important knock-on effect on fuel consumption, with resulting carbon dioxide emissions falling by around 0.5-0.7 g/km." The process is similar to one already used in Japan for production of parts used by such automotive companies as Honda and Toyota.

However, that process has some limitations, especially in terms of surface finish, since the parts are made with talc-filled polypropylene (PP). The Plume process will use newly-developed compounds that contain little or no talc. In the Plume process, material is injected into a mold with moving walls that are initially in the forward position.

Once all the material has been

injected, and the skins of the part have solidifi ed, the walls retract. This lowers the pressure in the mold cavity, and chemical blowing agent, until now dissolved in the melt, comes out of solution in the areas of the part that are still fl uid to create a cellular structure that fi lls the newly created space.

The foaming process on its own (disregarding compound formulation) enables a weight reduction in the part of at least 30%, compared to a conventional solid molding.Cemef will look at melt rheology and its effects on the process and it will also carry out analysis of the microstructures created by the chemical foaming. IMP-UJM will study the mechanical behavior of parts made under various conditions.

Mecaplast plans to trial the process on two components, a tailgate interior trim and exterior beltline moldings. The beltline moldings will be produced in two versions, one with a grained surface that will require no painting and another that will be paintable

It also ensures a finished polymer that is fully devoid of moisture, thus thermoformers see an elimination of all moisture defects.

There is absolute traceability as the resin is constrained to one source - providing origin of the resin and quality. DPET™ is manufactured to a typical caliper variation of +/- 1%. Operationally, this outstanding

Octal introduces New direct-to-sheet process DPET™consistency allows thermoformers to specify a thinner sheet and still achieve package performance in fi nished trays.

The surface also al lows for subsequent printing processes to allow for high-impact merchandising. It can be run at a 10% faster cycle time, and at temperatures up to 5 degrees lower than conventional APET.


PRODUCT NEWS

Composites lighten the load in monorail trains

DK Composites in partnership with Gurit GmbH (Kassel,

Germany) and its Australian subsidiary, together with Umeco(Warwickshire, UK), has developed a series of glass-reinforced composite panels a ceiling, seat and apron door foi Monorail. The ceiling adopts a sandwich construction made from a phenolic/glass prepreg —offering fi re retardant properties while delivering the target weight—and PET (polyethylene terephthalate) foam was developed.

A vacuum-infused epoxy/glass laminate was used for the molding process. The ceiling weighs in at 413 kg per train carriage, representing a 53% weight reduction versus an aluminum composite panel with a tubular steel frame. The ceiling

meets British Standard BS 6853 for fire/smoke/toxicity requirements. Development started in June 2010 and it was commercialized in February 2012. The seat development with an aim to reduce weight, a high pressure laminate (HPL) and aluminum honeycomb were introduced together with acrylic resin, which enables a higher loading of fl ame retardant to be incorporated.

The seat is also 53% lighter than a traditional seat made of stainless steel sheet with a tubular frame, and total seat weight per train carriage is 760 kg.The apron door development started in August 2010. The door enables a 49% weight reduction versus an aluminum composite panel with a tubular steel frame. 745 kg of

weight comprises such doors in a train carriage.

Development of the nose cab mask for Kuala Lumpur Monorail commenced in November 2010, with the fi rst production unit delivered in January 2012. Production is on-going. A sandwich construction made from red phosphorus filled epoxy/glass prepreg and PET foam is adopted.

The main advantages of the new components include weight reduction, compliance with fi re standards and appearance of the fi nal parts (shapes impossible to realize using metal). The nose cap mask weighs in at 268 kg, which is 30% lighter than the previous hand-laminated polyester/glass/PVC foam system.

Momentive introduces SilForce UV9815 and SilForce UV9800 for odor sensitive applicationsMoment ive Per fo rmance

Materials has released two silicone release polymers, SilForce UV9815 and SilForce UV9800, for use with UV9880C photoinitiator. The innovative polymer and catalyst technology enables the use of SilForce UV curable release coating products for odor sensitive applications.

The SilForce coating is an ideal solution for coaters, when odor-free performance is required for disposable diaper tapes and various other personal care products. In

addition, the product helps to save energy costs as it requires a low-temperature cure process.

SilForce UV9880C, an odor-free catalyst, is developed for application with the company’s SilForce line of low odor UV curable polymers. It does not contain organic solvents and is compatible with medium pressure mercury vapor UV lamps.

Other features of SilForce UV9880C include cationic type photocure; fast photocure in ambient atmosphere; high

reactivity; and low temperature cure usually required for thermally sensitive fi lm and paper substrates. SilForce UV9815 and SilForce UV9800The odor-free polymers offer several benefi ts, including stable release from a broad range of adhesives; highly crosslinked coating with minimal silicone transfer; a rating of 1 on a 1 (none or slight) to 5 (strong) scale utilized in independent odor panel testing; and extended catalyzed bath life while stored in dark, cool conditions.


PRODUCT NEWS

Suzuki Motor introduces Suzuki Super PolypropyleneSuzuki Motor Corporation has

introduced a polypropylene (PP) material which is approximately 10% lighter than the current PP and excellent in material coloring, called the Suzuki Super Polypropylene (SSPP). SSPP has been adopted on the front bumper under garnish of the Escudo which was launched in Japan on 11 July, 2012. In order to satisfy both rigidity and impact resistance, the mainstream of the current resin material of automobile’s PP adds rubber and inorganic fi ller material such as talc to its base PP

resin. The talc was the main factor of increasing weight and color-dulling due to degradation of transparency. SSPP can be characterized by its satisfaction of rigidity and impact resistance by adding only styrene series thermoplastic elastomer to the high rigidity base PP resin without adding talc. Compared to the current PP, flexural rigidity is at the same level while keeping weight due to talc-free base PP resin. When compared with the parts of the same size, it can be lighter by approximately 10%. And by the heightening of material

transparency, it can have excellent material coloring.

The front bumper under garnish equipped to the Escudo has adopted SSPP on market models for the fi rst time in the world. It realizes high brightness silver metallic color without painting due to the high colorability of SSPP. Because it has no paint layer, in case of scratches such as stone chips, it is diffi cult to distinguish a scratch. It can also reduce environmental load because it does not emit volatile organic compounds (VOCs).


Lyondell grants Spheripol technology licence for Sibur

lyondellBasell announced that ZapSibNeftekhim L.L.C, a fully

owned subsidiary of SIBUR, has selected the Spheripol process technology from LyondellBasell for a new 500 KT per year single-line polypropylene (PP) plant to be built in Tobolsk, Russia Federation. The project is expected to Star in 2017. "This will be the largest capacity plant built to date using the Spheripol process technology," said Bob Patel, Senior Vice President of Olefi ns and Polyolefi ns, Europe, Asia, International (EAI) and Technology at LyondellBasell. "This will provide ZapSibNeftekhim an economical method to produce

a wide range of premium-quality PP grades."Key features of Spheripol technology include leading monomer consumption, unmatched product quality, an operability among the best in the industry, fast start-up and grade changes, and capacities of up to 550 KT per year, which make it the technology of choice for the production of polypropylene. LyondellBasell is a leading licensor of polypropylene and polyethylene technologies with more than 250 polyolefin process licenses. In addition to the Spheripol process, LyondellBasell's portfolio of licensed polyolefi n technologies and associated technical services includes:

Spherizone - the latest-generation polypropylene technology based on a multi-zone reactor for the production of polypropylene and novel polyolefi ns. Metocene PP - an innovative add-on technology for the production of specialty polypropylene products using single-site catalyst systems Lupotech - the leading high-pressure tubular and autoclave process technologies for the production of LDPE and EVA copolymers . Spherilene - a fl exible, gas-phase process technology for the production of LLDPE, MDPE and HDPE. Hostalen - a low-pressure slurry process for the production of high-performance multimodal HDPE.

TECHNOLOGY

Bacteria strain that could degradable polyethylene

Researchers from Department of Biotechnology Engineering,

at theBen-Gurion University of the Negev in Israel, published a paper in the Journal of Applied Microbiology regarding the biodegradation of polyethylene. This study claims that polyethylene, which is considered to be inert, can be biodegraded if the right microbial strain is isolated. Polyethylene, while it's recyclable, can last up to hundreds of years in the environment if it's left untouched. According to the researchers, previous studies showed no signs of deterioration could be observed in a polyethylene sheet that had been incubated in moist soil for 12 years and only partial degradation was observed in a polyethylene fi lm buried in soil for 32 years. "It is

widely accepted that the resistance of polyethylene to biodegradation stems from its high molecular weight, its three-dimensional structure and its hydrophobic nature, all of which interfere with its availability to micro-organisms," the researchers stated. Nevertheless, the researchers said several studies have demonstrated partial biodegradation of polyethylene.The researchers goal was to select a polyethylene-degrading micro-organism and study the factors affecting its biodegrading activity. They isolated from soil a thermophilic bacterium Brevibaccillusborstelensis strain, which utilized low-density polyethylene as the sole carbon source and degraded it. Incubation of polyethylene with Brevibaccillusborstelensis (30 days, 50ºC) reduced its gravimetric

and molecular weights by 11% and 30% respectively.Enrichment culture methods were effective for isolating a thermophilic bacterium capable of utilizing polyethylene as the sole carbon and energy source, the researchers stated. Maximal biodegradation was obtained in combination with photo-oxidation, which showed that carbonyl residues formed by photo-oxidation play a role in biodegradation. Brevibacci l lusborstelensis also degraded the CH2 backbone of non-irradiated polyethylene.According to the researchers, the signifi cance of the study was that biodegradation of polyethylene by a single bacterial strain contributes to our understanding of the process and the factors affecting polyethylene biodegradation.


TECHNOLOGY

Firm develops solar rotomoldingCa l i f o r n i a b a s e d L i g h t

Manufacturing LLC have developed a way of rotationally molding plastic parts without relying on an electricity grid. Karl von Kries has a vision of harnessing the sun to make plastic products.The CEO of Light Manufacturing LLC said he and coworkers have developed a way of rotationally molding plastic parts without relying on an electricity grid. Sun energy is focused by mirrors to heat a rotomold and photovoltaic cells generate electricity to run the rotomolder’s armature. “It’s good where energy costs are high,” Von Kries said. Areas where the technology is most practical include the southern United States, Africa and Australia.“Nearly half the earth’s surface is viable for solar rotomolding,” he explained. Light Manufacturing’s technology

relies on tensioned, metalized PET membranes, or heliostats, to track the sun’s position and act like mirrors. Small solar rotomolding plants can be placed near customers to avoid high transportation costs of bulky items like agricultural tanks, he explained. “We will supply turnkey sysems of the heliostats, armature and photovoltaic array to small companies,” Von Kries said. Large companies with engineering departments could work with LightManufacturing to develop production systems. Light Manufacturing runs a test facility at its Pismo Beach head offi ce. It tests about 25 22-square-foot heliostates, each capable of making several-gallon water tanks. As a rule of thumb, an 11-square-foot heliostat can generate about a 1,000 watts of energy in full sunlight. Von Kries got the idea for

solar rotomolding several years ago when he worked as a mechanical engineer in new product design with a New England rotomolder.

“We use solar energy in its raw state and capture it,” Von Kries explained. The technology circumvents traditional solar strategies of converting the sun’s rays to electricity, which then must be transmitted some distance for use. And unlike conventional sun-to-electricity programs Light Manufacturing’s approach does not rely on subsidies. Von Kries said he is working on expanding solar heating to other processes, including injection molding and blow molding. It would probably be more capital intensive than rotomolding and likely entail use of light pipes to bring solar energy into a plant.

Unique fluoropolymer capabilities fuel Performance Plastics' growth

An Ohio processor is growing 15-20% per year in part due to

proprietary technology to injection mold tight-tolerance medical components from tough-to-process fl uoropolymers. One of its biggest breakthroughs has been development of a direct gating technology that eliminates runner waste.Ken Kelly, general manager, said that Performance Plastics has added three Roboshot electric molding machines from Milacron recently and is on track to buy another. "We have $1

million in additional medical business coming in the third quarter," he said. So far the focus is on Class 1 medical devices, but the company is bidding on Class 2 work where the inertness of the highly crystalline fl uoropolymers could play a critical role.

Behind the growth is a ten-year project to perfect the molding of fl uorinated ethylene propylene (FEP) and perfluoroalkoxy (PFA), which are highly inert and compatible with most organic compounds, while also

possessing good barrier, friction and wear properties. The materials have high continuous-use temperatures that can withstand repeated steam sterilization.

Fluoropolymers are also well known for their extremely low coeffi cient of friction properties that can reduce liquid, gel and powder adhesion and stick slip without the need for silicone coatings. Any reduction in chemical contaminants is a major plus in the current medical environment.


TECHNOLOGY

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Those properties make FEP and PFA great candidates for medical applications. There's a perception obstacle, however.

"Many people stil l think that sintering or machining are the only viable processing alternatives for fluroropolymers because of corrosion and thermal issues during the traditional injection molding process," Kelly said. Part of that perception is based on the fact that polytetrafl uoroethylene (PTFE) cannot be melt processed. But many people are not aware of the work that can be done with FEP and PFA.

Sealed Air steps up use of mushroom-based packagingElmwood Park, N.J., -based

Sealed Air Corp. is teaming up with Ecovative Design LLC of Green Island, N.Y., to accelerate the production and marketing of plant-based packaging technology. The EcoCradle technology uses agricul tural byproducts as a feedstock for fungal mycelium, or mushroom roots. The mycelium is grown in molds and oven-dried to

form rigid packaging. According to Ecovative, the material can replace expanded polystyrene, expanded polypropylene and expanded polyethylene.

Sealed Air will be the exclusive licensee of Ecovative’s EcoCradle packaging for the North American protective packaging market.


IN THE NEWS

New group forms to encourage recycling of food-service packagingThe Foodservice Packaging

Institute has formed a Plastics Recovery Group with the intent of making it “the catalyst to propel recovery of used plastic foodservice packaging in North America.”The Plastics Recovery Group is the second group FPI has recently formed to address recycling. Last year it formed the Paper Recovery Alliance to focus on recycling paper foodservice packaging.The initial 19 members of the plastics group include Cascades Inc., Command Packaging, Dart Container Corp., Dyne-A-Pak Inc., Fabri-Kal Corp., Genpack Corp., Havi Global Solutions, NatureWorks LLC, Pactiv Corp., Solo Cup Co., American Styrenics LLC and BASF

SE. FPI said it has engaged Resource Recycling Systems to help the plastics group:

• Analyze current market and needed volumes of materials.

• Understand current collection and recovery practices in the foodservice industry and beyond.

• Map potent ia l end markets and associated collection and processing requirements.

• Identify and prioritize short- and long-term initiatives to increase recovery.

• Roll out multi-material, multi-brand recovery initiatives in U.S. and Canada.

• Develop the packaging generation and material fl ow data for plastic foodservice packaging.

“[The plastics group] is currently reviewing collection and processing opportunities that will allow cross supply-chain allies and partners to pursue a multi-faceted approach to recovery, using all potential landfill diversion options,” said FPI Vice President Natha Dempsey.

She said the group intends to support new pilot projects throughout the value chain, test the economic viabi l i ty of exist ing and future initiatives, and work closely with other organizations focused on plastics and packaging recovery.

Malaysian plastics firms finance anti-litter campaign

Malaysian plastics industry has launched a 600,000

ringgit ($188,000) public education campaign aimed at reducing litter, following the government’s imposition of a once-a-week ban on stores giving out free shopping bags. The Malaysian Plastics Manufacturers Association said its campaign, dubbed “Don’t be a Litterbug,” includes newspaper advert isements, printed plastic shopping bags with anti-litter messages and projects like working with school groups and beach cleanups. It also includes a Facebook page, www.facebook.com/DontBeaLitterbug.The group unveiled it June 23 at their

annual dinner in Kuala Lumpur, in a ceremony attended by the deputy head of the country’s Ministry of Housing and Local Government. The ministry has jurisdiction over solid waste issues. MPMA, based in the city of Petaling Jaya, said its effort is broader than just plastic bags.

MPMA President Lim Kok Boon said the campaign will be in several phases, with later phases focusing on promoting the 3Rs – reduce, reuse and recycle – and on discussing the sustainability benefi ts of plastic products.Litter is one of the reasons the public targets plastic bags and

other plastic products as polluting the environment, but it hopes that its campaign will “raise awareness among the public that litterbugs are the real polluters.”

MPMA has had ongoing efforts to reach out to schools in the nation of 27 million people, beginning an awareness program about the 3Rs with fi ve schools in 2010, six in 2011 and 50 this year.

MPMA has about 600 member companies with 75,000 employees. The anti-littering campaign is equal to between 20 and 25 percent of its annual budget, Lim said.


IN THE NEWS

International conference on Innovation in technologies for processing Polymer Processing Academy (PPA) has planned to organize an International Conference on “Innovation In Technologies For Processing Of Rubber & Elastomers” in Mumbai on 26th & 27th October, 2012 at Hotel Ramada Inn, Juhu, Mumbai. Polymer Processing Academy (PPA) would like to invite active participation from all concerned with Polymer Processing from Academia and Industries to this Conference. PPA is therefore, inviting Technical Papers on the following broad topics:

• Importance of Rheology and its understanding in enhancing

the processing of Rubbers & Elastomers.

• C o m p o u n d i n g o f R u b b e r s & Elastomers for improved processing.

• Emerging processing technologies of Rubbers & Elastomers.

• New development in testing & evaluation.

• Current s tatus in R&D and Polymer modifi cation in Rubbers & Elastomers.

• Innovations in reinforcements, additives and Nano materials.

• Emerging trends in recycling of Rubbers & Elastomers.

• Green technologies and advances in sustainability issues.

• Shift in applications from Rubbers to TPEs.

PPA also calls for registration of a large number of delegates from Polymer producers, processors, equipment suppliers, users, suppliers of Additives, Consultants and others who are connected with Polymers to participate and share their views. Polymer Processing Academy (PPA) was established on 5th March, 2011 in Mumbai to provide a single forum of all branches of Polymer Processing e.g. plastics, rubbers, elastomers, fi bres, coatings, adhesives etc.

Report emphasizes importance of shale gas to plastics

Shale gas is the “magic bullet” needed for the full recovery

of the U.S. petrochemical industry, according to a recent report from the Chemical Market Resources Inc. consulting firm. Increased use of technologies such as horizontal drilling and hydraulic fracturing -- or “fracking” -- has allowed for development of large amounts of natural gas throughout North America. These new supplies have prompted numerous plastics and chemicals firms to announce new construction or expansion of capacities for ethylene feedstock and polyethylene resin. New cracker announcements would add at least 11.7 billion pounds of ethylene capacity in North America by 2017, according to the report from Houston-based CMR. Expansions and debottleneckings could add another 5 billion pounds

to that total. In PE, expansions announced by ExxonMobil Chemical Co. and ChevronPhillips Chemical Co. LP alone would add more than 5 billion pounds of capacity. Such announcements were unthinkable just five years ago, when natural gas supplies were dwindling and the material was priced in double-digits.

PE “will be the dominant derivative for shale gas,” according to the report, which was written by CMR President Balaji Singh and market analyst J.N. Swamy.

But the report also questions how many of the announced projects actually will be built, and how much of new capacity for ethylene or PE will be sold into export markets.

“Companies tend to analyze new capacity in terms of its percentage

of existing capacity,” the report said. “This makes the numbers appear more acceptable, especially when overlaid on projected demand growth.”

Shale development also could have a negative impact on propylene feedstock and derivatives such as polypropylene resin, since natural-gas based ethane produces less propylene than crude oil-based naphtha does. The CMR report estimates that ethane use in ethylene crackers has increased from 70 percent to 87 percent since the shale boom began.

Overall , however, the report states that shale gas is a positive development. “Shale gas will have a transformative effect on the U.S. petrochemical industry, leading to new invests, more jobs and greater sense of excitement,” it said.


Law doubles user fees on medical device makers in USPresident Barack Obama

has signed into law this month a compromised bill that will double the user fees medical device manufacturers will pay over the next five years in exchange for faster government review and approval of products. Under the industry-approved deal, medical device manufacturers will pay $595 million in user fees to the Food and Drug Administration over the next fi ve years, compared with the $287 million they paid the previous fi ve

years.In exchange for the higher fees, FDA has put together a fi ve-year plan and agreed to have 90 percent of pre-market approval applications approved in 385 days, which would be a dramatic improvement from the current 38 percent rate. Typically, 40 PMAs are submitted annually. Similarly, FDA is aiming to process 95 percent of the 4,000 501(k) applications it typically receives in a given year within 124 days, which would be an increase of 5 percentage points from its current rate.

IN THE NEWS

Pak-Sher encouraging kids to recycle plastic bags

Texas based Pak-Sher, which makes plastic storage bags;

food handling bags, deli bags and carryout bags has developed an incentive program at Kilgore to encourage school children to recycle plastic bags. Called as ‘Keep It in Kilgore’ program, the 600 children at Kilgore Intermediate School bring the plastic shopping bags their family accumulates to the school—about a pound at a time or roughly 75 bags—in

exchange for a chance to win movie tickets every two weeks and a shot at a Kindle Fire at the end of each school semester.Each of the 27 participating classroom teachers also received iPads for their part in encouraging the students at the school -- which educates children in the fourth and fi fth grades -- to participate in the program.The used bags are taken to the Pak-Sher plant where they are recycled and made into black bags with the

Kilgore Chamber of Commerce’s City of Stars logo. The bags are then sold to local merchants in a business-helping-business model where the students received extra incentive tickets for turning the black bags back in---making the bag recycling process full cycle.

Pak-Sher also gave nearly 300 fi fth-graders a tour of the bag manufacturing plant so the students could see exactly what came of their bags of bags.

US agrees to revise rules on BPA in baby bottlesTh e F o o d a n d D r u g

Administration has agreed to exclude baby bottles and sippy cups from regulation that permit companies to use bisphenol A in food-contact applications.

The decision, announced July 17 in the Federal Register, was the result of an October 2011 petition from the American Chemistry Council, to clarify for consumers that BPA is no longer used in those products. All major baby bottle manufacturers that make products for the U.S. market agreed in 2009 not to make or sell baby bottles or sippy cups that contain BPA. ACC’s request also was aimed at bringing a halt to state and local legislative efforts to ban BPA. “Consumers can be confi dent that these products do not contain BPA,” FDA spokesman Allen Curtis said in a statement.

“Although governments around the world continue to support the safety of BPA in food contact materials,

confusion about whether BPA is used in baby bottles and sippy cups had become an unnecessary distraction to consumers, legislators and state regulators,” said Steven Hentges, director of ACC’s Polycarbonate/

BPA Global Group. “FDA action on this request now provides certainty that BPA is not used to make the baby bottles and sippy cups on store shelves, either today or in the future,” Hentges said in a news release.


INDUSTRY UPDATES

GOVERNMENT OF INDIAMINISTRY OF FINANCE

DEPARTMENT OF REVENUECENTRAL BOARD OF EXCISE AND CUSTOMS

Notifi cation No.52/2012 - Customs (N.T.)DATED THE 21st June, 2012

S.O. (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in super session of the notifi cation of the Government of India in the

Ministry of Finance (Department of Revenue) No.49/2012-CUSTOMS (N.T.), dated the 7th June, 2012 vide number S.O.1304 (E), dated the 7th June, 2012, except as respects things done or omitted to be done before such super session, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specifi ed in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 22nd June, 2012 be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

SCHEDULE-IS. No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees

(a) (b)(For Imported Goods) (For Export Goods)

1. Australian Dollar 57.60 56.352. Bahraini Dinar 152.50 144.403. Canadian Dollar 55.50 54.304. Danish Kroner 9.65 9.405. EURO 71.70 70.106. Hong Kong Dollar 7.25 7.157. Kenyan Shilling 68.35 64.508. Kuwaiti Dinar 206.10 194.459. Newzealand Dollar 45.10 43.8510. Norwegian Kroner 9.55 9.2511. Pound Sterling 88.90 87.0512. Singapore Dollar 44.55 43.6513. South African Rand 7.00 6.6514. South Arabian Riyal 15.35 14.5015. Swedish Kroner 8.15 7.9016. Swiss Franc 59.80 58.3017. UAE Dirham 15.65 14.8018. US Dollar 56.35 55.55

SCHEDULE-IIS. No. Foreign Currency Rate of exchange of 100 units of foreign currency equivalent to Indian rupees

(a) (b)(For Imported Goods) (For Export Goods)

1. Japanese Yen 71.85 70.05

(M. SATISH KUMAR REDDY)DIRECTOR (ICD)


GOVERNMENT OF INDIAMINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notifi cation No.28/2012-Central Excise (N.T)

New Delhi, the 20th June, 2012

G.S.R. (E).-In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit (Sixth Amendment) Rules, 2012.

(2) They shall come into force on the 1st day of July, 2012.

2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 2, —

(a) in clause (a), -

(i) in sub-clause (A), in item(viii), after the words, “their chassis” the words “but including dumpers and tippers” shall be inserted;

(ii) for sub-clause (B), the following sub-clause shall be substituted, namely:_

“(B) motor vehicle designed for transportation of goods including their chassis registered in the name of the service provider, when used for-

(i) providing an output service of renting of such motor vehicle; or

(ii) transportation of inputs and capital goods used for providing an output service; or

(iii) providing an output service of courier agency”

(iii) for sub-clause (C), the following sub-clause shall be substituted, namely:_

“(C) motor vehicle designed to carry passengers including their chassis, registered in the name of the provider of service, when used for providing output service of-

(i) transportation of passengers; or

(ii) renting of such motor vehicle; or

(iii) imparting motor driving skills”

(b) for clause (e), the following shall be substituted, namely:-

‘(e) “exempted service” means a-

(1) taxable service which is exempt from the whole of the service tax leviable thereon; or

(2) service, on which no service tax is leviable under section 66B of the Finance Act; or

(3) taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken; but shall not include a service which is exported in terms of rule 6A of the Service Tax Rules, 1994.’

(c) in clause (k), for sub clause (B), the following sub-clause shall be substituted, namely:-

INDUSTRY UPDATES


“(B) any goods used for -

(a) construction or execution of works contract of a building or a civil structure or a part thereof; or

(b) laying of foundation or making of structures for support of capital goods, except for the provision of service portion in the execution of a works contract or construction service as listed under clause (b) of section 66E of the Act;”

(d) in clause (l),-

(i) for the words “ taxable service”, the words “output service” shall be substituted;

(ii) in sub-clause (ii), for the words “ but excludes services”, the words “ but excludes” shall be substituted;

(iii) for sub-clause (A), the following sub-clause shall be substituted, namely:-

“(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specifi ed services) in so far as they are used for -

(a) construction or execution of works contract of a building or a civil thereof; or structure or a part

(b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specifi ed services; or”;

(iv) in sub-clause (B), for the words, brackets, letters and fi gures “specifi ed in subclauses (o) and (zzzzj) of clause (105) of section 65 of the Finance Act”, the words “services provided by way of renting of a motor vehicle” shall be substituted;

(v) for sub-clause (BA), the following sub-clause shall be substituted, namely: —

“(BA) service of general insurance business, servicing, repair and maintenance , in so far as they relate to a motor vehicle which is not a capital goods, except when used by-

(a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person ; or

(b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or”;

(e) for clause (p), the following clause shall be substituted, namely:-

‘(p) “output service” means any service provided by a provider of service located in the taxable territory but shall not include a service,-

(1) specifi ed in section 66D of the Finance Act; or

(2) where the whole of service tax is liable to be paid by the recipient of service.’

3. In rule 3 of the said rules,-

(a) in sub-rule (1),-

(i) for the words, “provider of taxable service”, wherever they occur, the word “ provider of output service” shall be substituted;

(ii) after item (ixa), the following item shall be inserted, namely:-

“(ixb) the service tax leviable under section 66B of the Finance Act;”,

(iii) after item (xi), in item (i), for the words “premises of” the words “by” shall be substituted;

(b) after sub-rule (4) of the said rules, following shall be inserted, namely:-

“Explanation. - CENVAT credit cannot be used for payment of service tax in respect of services where the person

INDUSTRY UPDATES


liable to pay tax is the service recipient”

(c) in the proviso to sub-rule (5B), for the words “taxable services” the words “output services” shall be substituted;

4. In rule 5,-

(i) in sub-rule (2), in the second proviso, for the words and fi gures “Export of Services Rules, 2005” the words and fi gures, “Service Tax Rules, 1994” shall be substituted;

(ii) in Explanation 1, for the words and fi gures “the provisions of Export of Services Rules, 2005, whether the payment is received or not” the words, fi gures and letter “rule 6A of the Service Tax Rules 1994” shall be substituted;

5. In the said rules, after rule 5A, the following rule shall be inserted, namely:-

“Refund 5B. of CENVAT credit to service providers providing services taxed on reverse charge basis.- A provider of service providing services notifi ed under sub-section

(2) of section 68 of the Finance Act and being unable to utilise the CENVAT credit availed on inputs and input services for payment of service tax on such output services, shall be allowed refund of such unutilised CENVAT credit subject to procedure, safeguards, conditions and limitations, as may be specifi ed by the Board by notifi cation in the Offi cial Gazette.

6. In the said rules, in rule 6,-

(i) in the marginal heading, for the words “ provider of taxable service” the words, “ provider of output service” shall be substituted;

(ii) in sub-rule (3), after the second proviso, the following proviso shall be inserted, namely:-

“Provided that in case of transportation of goods or passengers by rail the amount required to be paid under clause (i) shall be an amount equal to 2 per cent. of value of the exempted services.”

(iii) in sub-rule (3A), in clauses (a), (b), (c) and (h), for the words “taxable” wherever they occur, the words, “output” shall be substituted;

(iv) in sub-rule 3(B), for the words, brackets, letters and fi gures “providing taxable service specifi ed in sub-clause (zm) of clause (105) of section 65 of the Finance Act” the words, “engaged in providing services by way of extending deposits, loans or advances” shall be substituted;

(v) in sub-rule 3(D), for the Explanation I, the following Explanation shall be substituted, namely:-

“Explanation I. - “Value” for the purpose of sub-rules (3) and (3A),—

(a) shall have the same meaning as assigned to it under section 67 of the Finance Act, read with rules made thereunder or, as the case may be, the value determined under section 3, 4 or 4A of the Excise Act, read with rules made thereunder;

(b) in the case of a taxable service, when the option available under sub-rules (7),(7A),(7B) or (7C) of rule 6 of the Service Tax Rules, 1994, has been availed, shall be the value on which the rate of service tax under section 66B of the Finance Act, read with an exemption notifi cation, if any, relating to such rate, when applied for calculation of service tax results in the same amount of tax as calculated under the option availed; or

(c) in case of trading, shall be the difference between the sale price and the cost of goods sold (determined as per the generally accepted accounting principles without including the expenses incurred towards their purchase) or ten per cent of the cost of goods sold, whichever is more.

INDUSTRY UPDATES


(d) in case of trading of securities, shall be the difference between the sale price and the purchase price of the securities traded or one per cent. of the purchase price of the securities traded, whichever is more.

(e) shall not include the value of services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;”

(vi) for sub-rule (6A), the following sub-rules shall be inserted, namely:-

“(7) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the taxable services are provided, without payment of service tax, to a unit in a Special Economic Zone or to a developer of a Special Economic Zone for their authorised operations or when a service is exported,

(8) For the purpose of this rule, a service provided or agreed to be provided shall not be an exempted service when:-

(a) the service satisfi es the conditions specifi ed under rule 6A of the Service Tax Rules, 1994 and the payment for the service is to be received in convertible foreign currency; and

(b) such payment has not been received for a period of six months or such extended period as maybe allowed from time-to-time by the Reserve Bank of India, from the date of provision.”

7. In the said rules, in rule 7,-

(i) for clause (d), the following clause shall be substituted, namely:-

“(d) credit of service tax attributable to service used in more than one unit shall be distributed pro rata on the basis of the turnover during the relevant period of the concerned unit to the sum total of the turnover of all the units to which the service relates during the same period.”

(ii) after Explanation 2, the following Explanation shall be inserted, namely:-

“Explanation 3. - (a) The relevant period shall be the month previous to the month during which the CENVAT credit is distributed.

(b) In case if any of its unit pays tax or duty on quarterly basis as provided in rule 6 of Service Tax Rules, 1994 or rule 8 of Central Excise Rules, 2002 then the relevant period shall be the quarter previous to the quarter during which the CENVAT credit is distributed.

(c) In case of an assessee who does not have any total turnover in the said period, the input service distributor shall distribute any credit only after the end of such relevant period wherein the total turnover of its units is available.”

8. In the said rules, in rule 9, in sub-rule (2), in the proviso, for the words, “provider of taxable service”, the words “provider of output service” shall be substituted;

9. In the said rules, in rule 13, for the words “taxable service” wherever they occur, the words, “output service” shall be substituted.

[F. No. 334/1/2012-TRU]

(Raj Kumar Digvijay)Under Secretary to the Government of India

Note - The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 10t h September, 2004, vide notifi cation number 23/2004-Central Excise (N.T.), dated the 10th September, 2004, vide number G.S.R. 600(E), dated the 10th September, 2004] and was last amended vide notifi cation number 25/2012- Central Excise (N.T.), dated the 8th May, 2012, vide number G.S.R. 341 (E), dated the 8th May, 2012.

INDUSTRY UPDATES


Government of IndiaMinistry of Finance

(Department of Revenue)

Notifi cation No.39/2012 - Service Tax

New Delhi, the 20th June, 2012

GSR …. (E). In exercise of the powers conferred by rule 6A of the Service Tax Rules, 1994 (hereinafter referred to as the said rules), the Central Government hereby directs that there shall be granted rebate of the whole of the duty paid on excisable inputs or the whole of the service tax and cess paid on all input services (herein after referred to as ‘input services’), used in providing service exported in terms of rule 6A of the said rules, to any country other than Nepal and Bhutan, subject to the conditions, limitations and procedures specifi ed hereinafter,-

2. Conditions and limitations:-

(a) that the service has been exported in terms of rule 6A of the said rules;(b) that the duty on the inputs, rebate of which has been claimed, has been paid to the supplier;(c) that the service tax and cess, rebate of which has been claimed, have been paid on the input services to the

provider of service;

Provided if the person is himself is liable to pay for any input services; he should have paid the service tax and cess to the Central Government.

(d) the total amount of rebate of duty, service tax and cess admissible is not less than one thousand rupees;(e) no CENVAT credit has been availed of on inputs and input services on which rebate has been claimed; and(f) that in case,-

(i) the duty or, as the case may be, service tax and cess, rebate of which has been claimed, has not been paid; or

(ii) the service, rebate for which has been claimed, has not been exported; or(iii) CENVAT credit has been availed on inputs and input services on which rebate has been claimed, the

rebate paid, if any, shall be recoverable with interest in accordance with the provisions of section 73 and section 75 of the Finance Act, 1994 (32 of 1994)

3. Procedure.

3.1 Filing of Declaration.- The provider of service to be exported shall, prior to date of export of service, fi le a declaration with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, specifying the service intended to be exported with,-(a) description, quantity, value, rate of duty and the amount of duty payable on inputs actually required to be

used in providing service to be exported;(b) Description, value and the amount of service tax and cess payable on input services actually required to

be used in providing service to be exported.3.2 Verifi cation of declaration.- The Assistant Commissioner of Central Excise or the Deputy Commissioner of

Central Excise, as the case may be, shall verify the correctness of the declaration fi led prior to such export of service, if necessary, by calling for any relevant information or samples of inputs and if after such verifi cation, the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise is satisfi ed that there is no likelihood of evasion of duty, or as the case may be, service tax and cess, he may accept the declaration.

NOTIFICATIONS & CIRCULARS


3.3 Procurement of input materials and receipt of input services.- The provider of service to be exported shall,-(i) obtain the inputs required for use in providing service to be exported, directly from a registered factory or

from a dealer registered for the purposes of the CENVAT Credit Rules, 2004 accompanied by invoices issued under the Central Excise Rules, 2002;

(ii) receive the input services required for use in providing service to be exported and an invoice, a bill or, as the case may be, a challan issued under the provisions of Service Tax Rules, 1994.

3.4 Presentation of claim for rebate.-(a) (i) claim of rebate of the duty paid on the inputs or the service tax and cess paid on input services shall be

fi led with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, after the service has been exported;

(ii) such application shall be accompanied by, –(a) invoices for inputs issued under the Central Excise Rules, 2002 and invoice, a bill, or as the case may be,

a challan for input services issued under the Service Tax Rules, 1994, in respect of which rebate is claimed;(b) documentary evidence of receipt of payment against service exported, payment of duty on inputs and

service tax and cess on input services used for providing service exported, rebate of which is claimed;(c) a declaration that such service, has been exported in terms of rule 6A of the said rules, along with

documents evidencing such export.(b) The jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as

the case may be, having regard to the declaration, if satisfi ed that the claim is in order, shall sanction the rebate either in whole or in part.

Explanation 1. - For the purposes of this notifi cation “service tax and cess” means,-

(a) Service tax leviable under section 66 or section 66B of the Finance Act, 1994 (32 of 1994);

(b) Education cess on taxable service levied under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004); and

(c) Secondary and Higher Education Cess on taxable services levied under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007).

Explanation 2. - For the purposes of this notifi cation “duty” means, duties of excise leviable under the following enactments, namely:-

(a) the Central Excise Act, 1944 (1 of 1944);(b) the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);(c) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);(d) National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended

by section 169 of the Finance Act, 2003 (32 of 2003), section 3 of the Finance Act, 2004 (13 of 2004) and further amended by section 123 of the Finance Act, 2005 (18 of 2005);

(e) special duty of excise collected under a Finance Act;(f) additional duty of excise as levied under section 157 of the Finance Act, 2003 (32 of 2003);(g) Education Cess on excisable goods as levied under section 91 read with section 93 of the Finance (No.2) Act,

2004 (23 of 2004); and(h) the additional duty of excise leviable under section 85 of the Finance Act, 2005 (18 of 2005).(i) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section

138 of the Finance Act, 2007 (22 of 2007).



Annexure

FORM ASTR-2

(Application for fi ling a claim of rebate of duty paid on inputs, service tax and cess paid on input services)

(PART A: To be fi lled by the applicant)

Date ________________________

Place ________________________

To,

Assistant Commissioner of Central Excise/Deputy Commissioner of Central Excise…………………………..………….

(full postal address).

Madam/Sir,

I/We………………………………….., (name of the person claiming rebate) holding service tax

registration No. …………………………………………, located in………………………. (address of the registered premises)

hereby declare that I/We have exported ………………………………………service (name of the service) under rule 6A of

the Service Tax Rules, 1994 to …………………… (name of the country to which service has been exported), and service

tax amounting to ……………………. (amount in rupees of service tax) and education cess amounting to …………………….

(amount in rupees of cess) has been paid on input services and duty amounting to ………….................. (amount in

rupees of duty) has been paid on inputs.

2. I/We also declare that the payment against such service exported has already been received in India in

full…………………………………………………. (details of receipt of payment).

3. I/We request that the rebate of the duty, service tax and cess on inputs and input services used in providing service

exported by me/us in terms of rule 6A of the Service Tax Rules, 1994 may be granted at the earliest. The following

documents are enclosed in support of this claim for rebate.

1. __________________________________________________

2. __________________________________________________

3. __________________________________________________



Declaration:

(a) We hereby certify that we have not availed CENVAT credit on inputs and input services on which rebate has been

claimed.

(b) We have been granted permission by Assistant Commissioner of Central Excise or Deputy Commissioner of

Central Excise, vide C. No. _________________, dated _________________ for working under notifi cation

No. _________________, dated _________________.

(Signature and name of the service provider or his authorised agent with date)

(PART B: To be fi lled by the sanctioning authority)

Date of receipt of the rebate claim: ____________________________

Date of sanction of the rebate claim: ___________________________

Amount of rebate claimed: Rs. ________________________________

Amount of rebate sanctioned: Rs. _____________________________

If the claim is not processed within 15 days of the receipt of the claim, indicated briefl y reasons for delay.

Place:

Date:

Signature of the Assistant Commissioner/

Deputy Commissioner of Central Excise

4. This notifi cation shall come into force on the 1st day of July, 2012.

(Raj Kumar Digvijay)

Under Secretary to the Government of India




RBI/2011-12/601

DPSS.CO.PD. No. 2256 /02.14.006/ 2011-12

June 14, 2012

Policy Guidelines for issuance and operation of Prepaid Payment Instruments in India- Amendments

A reference is invited to our circulars RBI / 2008-09 / 458 DPSS. CO. PD. No. 1873/02.14.06/2008-09 dated April 27,

2009, RBI / 2010-11 / 261 DPSS. CO. No. 1041 / 02.14.006 / 2010-2011 dated November 04, 2010 and RBI / 2011-12 /

144 DPSS. CO. PD. No. 225/02.14.006/2011-12 dated August 04, 2011 on the subject.

2. On a review of the development of the issuance and acceptance market for prepaid payment instruments, the Reserve

Bank has considered it necessary to carry out the following amendments:

• The limit of Rs 1000/- for semi-closed prepaid payment Instrument that can be issued under Para 6.4 (i) of guidelines

dated April 27, 2009 has been raised to Rs 2000/- Hence Para 6.4 (i) may be read as follows:

“Semi-Closed System Payment Instruments up to Rs 2000/- may be issued against any identity document furnished

by the customer subject to reporting of annual turnover/suspicious transactions. It shall be ensured that under no

circumstances, more than one active instrument is issued to the same holder by the same issuer”.

• The issue of semi-closed prepaid payment instrument upto Rs 10,000 without separate KYC being conducted by

the issuer, for payment of utility bills/ essential services/ air and train travel under Para 6.4 (iii) was permitted on the

premise that full KYC of the customer is already being done by the provider of such services. The control exercised

by the issuer has been on the acceptance side, ie. utility of the card for the specifi c purpose at the specifi c merchant.

Based on this rationale, it has been decided to redefi ne the merchant categories under Para 6.4 (iii). Accordingly Para

6.4(iii) of the guidelines dated April 27, 2009 (as amended by circular dated November 4, 2010) may now be read as:

"Semi-closed system payment instruments which permit only payment of utility bills/ essential services / air and train

travel tickets; and recurring payment of college fees, school fees, government taxes up to a limit of Rs 10,000/- can

be issued without separate KYC being undertaken by the issuer. The persons issuing such instruments may ensure

that these instruments are made acceptable only at institutions which maintain the full identity of the customers. The

utility bills/ essential services shall include only electricity bills, water bills, telephone/mobile phone bills, insurance

premium, cooking gas payments, rental for Internet/Broadband Connections, Cable/DTH subscriptions and Citizen

Services by Government or Government bodies. .

3. This directive is issued under section 18, of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

(Vijay Chugh)

Chief General Manager



1. Savings – Investment ImbalanceStructurally, Indian economy has been characterized by a savings – investments mismatch. Therefore, the country

needs foreign capital to meet its investment needs. The current account imbalance is notionally viewed as a refl ection

of this continued imbalance. The inability to channelize the available domestic household savings into capacity

building activities further adds to this imbalance. Table 1 contains the relevant fi gures. It can be noticed that the

current account balance (CAD) as a percentage share of GDP has gradually been increasing in the recent past.

Table 1

Savings, Investments and Current Account Balance as % of GDP

Domestic Savings Rate

Investment Rate Investment – Savings Gap

Current Account Balance

2000 – 01 23.7 24.3 -0.6 -0.6

2001 – 02 23.5 22.8 0.7 0.7

2002 – 03 26.3 25.2 1.1 1.2

2003 – 04 29.8 27.6 2.2 2.3

2004 – 05 32.4 32.8 -0.4 -0.3

2005 – 06 33.5 34.7 -1.2 -1.2

2006 – 07 34.6 35.7 -1.1 -1.0

2007 – 08 36.9 38.1 -1.2 -1.3

2008 – 09 32.2 34.5 -2.3 -2.3

2009 – 10 32.0 36.6 -4.6 -2.8

2010 – 11 QE 32.3 35.1 -2.8 -2.7

2011 – 12 est 31.6 35.2 -3.6 -3.6

2012 – 13 proj 32.5 35.5 -3.0 -3.0

Sources: Prime Minister’s Economic Advisory Council

2. Nature of Foreign Investment FlowsThe conventional wisdom indicates that foreign equity is more desirable than foreign debt. Further, within equity

direct investment is better than portfolio investment because it is less mobile and hence less likely to cause exchange

rate fl uctuations. Quick infl ows and outfl ows of large pools of hot money destabilize capital markets and causes

exchange rate fl uctuations. Apart from this, over dependence on short-term foreign resources by private sector

would result in exchange rate vulnerability. As foreign direct investments are long term in nature their mobility during

diffi cult times does not take place unlike as in the case of non – FDI foreign investments. The composition of foreign

investments fl ows into India testifi es this point. Please refer Table 2.



Table 2

Composition of Foreign Investment

(Rs. Crore)

Year FII FDI Total FI FDI as % share of FI

Equity Debt Total

2000 – 01 10,207 -273 9933 10733 20666 51.9

2001 – 02 8,072 690 8763 18654 27417 68.0

2002 – 03 2,527 162 2689 12871 15560 82.7

2003 – 04 39,960 5805 45765 10064 55829 18.0

2004 – 05 44,123 1759 45881 14653 60534 24.2

2005 – 06 48,801 -7334 41467 24584 66051 37.2

2006 – 07 25,236 5605 30840 56390 87230 64.6

2007 – 08 53,404 12775 66179 98642 164821 59.8

2008 – 09 -47,706 1895 -45811 142829 97018 147.2

2009 – 10 110,221 32438 142658 123120 265778 46.3

2010 – 11 110,121 36317 146438 88520 234958 37.7

Sources: SEBI and DIPP

3. India’s External DebtThe country’s external debt, of late, has increased rapidly and stood at US$ 335 billion by December 2011. The

sharp increase in external commercial borrowings (ECBs) and short term debt mainly explain this. It is projected to

go up further as the current government strategy envisages greater reliance on debt fl ows in order to fi nance CAD.

Consequently, India’s net international investment position weakened as net liabilities increased to US$ 216 billion at

end – December 2011. As in the case of investments, long – terms loans are better than short – term ones because

they are not subject to immediate repayment. Moreover, if investments are fi nanced by short term borrowings the

maturity mismatch i.e., meeting the investments needs with short term borrowings, more dependence on debt

(higher debt equity ratio) results in more vulnerability. Exchange rate fl uctuations can also affect the debt serving

capacity of Indian corporate and even can result in insolvency of fi rms.

Furthermore, exchanging large quantities of local currency for serving their foreign currency loans cause the local

money supply to contract and liquidity to tighten. As a result the short – term rate of interest in debt servicing

requirements that arise out of massive exchange rate depreciation. The composition of India’s external debt indicates

that the percentage share of external debt and short – term debt in GDP are rising.



4. Foreign Exchange ReservesForeign exchange reserves are the working capital of a country. Inadequately of foreign exchange reserves for

supporting imports, debt service, and net short – term capital outfl ows affects the country’s ability to honour its

obligations and thereby its international standing. In case of India, the adequacy of forex reserves has been falling

aas can be noticed from Table 3.

Table 3

India’s Forex Reserves

(in US $ million)

Year Total Import Forex Reserve Forex as % of Total Imports

2004 – 05 111517 141514 126.9

2005 – 06 149166 151622 101.6

2006 – 07 185735 199179 107.2

2007 – 08 251439 309723 123.2

2008 – 09 298834 251985 84.3

2009 – 10 288373 279057 96.8

2010 – 11 352575 304818 86.5

2011 - 12 488640 292927 59.9

Source: RBI

Note: 1. 2011 – 12 import from Ministry of Finance

2. Forex reserve for 2011 – 12 as of date 6th April, 2012


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