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2 September 2010
The UK trade association representing plastics film and flexible and rigid packaging suppliers, PAFA, has issued a warning that one of the recognised price indices used to set polymer prices has inexplicably diverged to the degree that it no longer reflects reality in the market place.
The weekly price indices, Platts and Icis, are published for use across the industry to help indicate price movements and are often used to determine price movements to end customers.
PAFA chief executive, Barry Turner, said: "After an extremely difficult period of increasing prices paid by converters for their raw material, they face a further challenge from an unexplained divergence in the UK polymer price indices which are crucial to maintaining a real-time, realistic view of the cost of polymers and therefore end prices. This divergence is so significant that it may not only seriously affect end market price stability, it could even result in price indices being abandoned as a reliable polymer pricing mechanism."
According to Turner, this divergence is of particular concern to converters because it follows a sustained period where margins have been squeezed.
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1 September 2010
Canadian plastics closures manufacturer Crealise Conditionnement has been acquired by Novembal, the caps and closures business unit of Tetra Pak.
58-year-old Crealise has strong sales throughout Canada and a growing presence in the US, and its business is principally focused on 55mm closures for 11- and 18-litre plastics bottles. Novembal operates a network of business units across North America.
“In uniting Crealise’s North American bottled water market expertise with Novembal’s global caps and closures portfolio, we are able to offer our customers in the bottled water market more innovative and cost effective solutions,” said Novembal’s managing director Lorenzo van Haelst.
Crealise, which is based in Quebec and employs 60 people, will be renamed Novembal Canada.
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1 September 2010
First half profits have risen at Bunzl as the UK-based packaging manufacturer considers further acquisition targets.
The company reported profits of £100 million ($154m), up from £94.6m ($145.7m), supported by strong growth in North America, which helped offset a decrease in revenue in the UK and Ireland.
Bunzl has spent about £100m ($154m) on eight acquisitions this year, including the purchase of US plastics and pulp packaging distributor Cool-Pak, and Brazil’s AM Supply.
Sources suggest that markets of interest to Bunzl include Austria, Chile, Italy, Norway and Sweden.
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31 August 2010
US-based Arpac Group has formed Arpac Europe to support its growth strategy in the European packaging market.
Tony Hacker, an industry veteran who previously worked for case erector and sealer manufacturer Endoline Machinery, has been named general manager of the European business.
Hacker is confident that Arpac’s operator-friendly yet versatile machines will deliver a low cost of ownership ideally suited to the European market.
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31 August 2010
Plastics bottles and jars manufacturer Alpha Packaging has signed an agreement to be acquired by equity firm Irving Place Capital (IPC), for $260 million.
IPC is investing in partnership with St. Louis-based Alpha’s existing management team, led by chief executive David Spence and chief operating officer Dan Creston.
Spence will remain as Alpha’s chief executive following the completion of the deal, while Creston will oversee all acquisition integration as executive vice president of corporate development.
IPC has made several recent investments in the packaging sector, including Multi Packaging Solutions, Chesapeake, and Mold-Rite Plastics and has raised more than $4 billion of equity capital.
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26 August 2010
Nestlé Waters North America has received a 2010 Gold Connecticut Quality Improvement Award’s (CQIA) Innovation Prize for its Eco-Shape 50cl bottle, which uses 25 per cent less PET plastics than its predecessor Eco-Shape bottle.
Eco-Shape is credited with reducing Nestlé Waters’ carbon emission equivalents by more than 356,000 tonnes since 2007, while the bottle also features a label that is 35 per cent smaller on average than the previous label, saving nearly 10 million pounds of paper annually.
The company commissioned a peer-reviewed life cycle assessment (LCA) in February to better understand the environmental impact of bottled water. The LCA found that Eco-Shape is one of the most environmentally responsible packaging drink choices because it contains the least amount of plastics among the packaged beverage options reviewed in the study. The bottle weighs 9.3g.
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26 August 2010
The chairman and vice president of the EuPR PET Working Group, Casper van den Dungen, has criticised a report by SRI Consulting for claiming that the disposal of bottles in landfill generates a lower carbon footprint than recycling or incineration.
The report, PET’s Carbon Footprint: To Recycle or Not to Recycle, also states that waste ‘shipping distances are not footprint critical’, a claim that EuPR says is not consistent with the move towards a recycling society.
This publication is unwise, dangerous for sustainability and goes against the European legislation,” says van den Dungen. “By applying the SRI Consulting results we would lose valuable material in landfills."
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26 August 2010
Australian packaging company Amcor has predicted another year of strong growth after posting a 14 per cent rise in full year profit on the back of its $1.9 billion takeover of Alcan Packaging and various cost savings.
Net profit for the financial year rose to A$409.2 million (US$362.9m) from A$360.5m (US$319.7m), despite the impact of a strong Australian dollar and a tough economic backdrop.
Flexible packaging for food, tobacco and medical products remains Amcor's biggest business, but plastics bottles also fared well during the period.
Amcor plans to use its improved cash flow to pay dividends and reinvest in the business. It also expects forecast savings from the takeover to be achieved by the middle of next year.
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25 August 2010
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| Carrier bag consumption has declined by more than 40 per cent |
The trade lobbying group fighting environmental misinformation on plastics carrier bags, the Carrier Bag Consortium (CBC), says that the latest report from the UK government’s Waste & Resources Action Programme (WRAP) shows the success of the voluntary scheme by the country’s retailers.
WRAP figures show a total decline in all types of carrier bags issued to 4.5 billion (41 per cent) over the years 2006-2010, saving 39,700 tonnes of material from entering the waste stream.
The biggest decline in so-called single-use bags was in Wales where consumers are being threatened with a bag tax next year.
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25 August 2010
Packaging manufacturer Robinson has turned a loss last year into a first half 2010 profit as volumes recovered to pre-recession levels and revenues from Central Europe grew some 40 per cent.
Profit before tax for the six months was £190,000 compared with a £960,000 loss for the corresponding period last year.
Despite revenues falling at the company’s Toronto, Canada, plant, its focus on Europe was reflected in strong growth, tempered by demanding market conditions for the rest of this year.
The company said that any overstocking during the run-up to Christmas would have an impact on early 2011 revenues.
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25 August 2010
The first plant in China to manufacture polypropylene resin from coal has started production in the Inner Mongolia Autonomous Region.
China Shenhua Coal Liquefaction Chemical is operating a 300,000 tonnes per year plant using Unipol technology by Dow Chemical Company.
The objective of the plant is to help satiate the growing demand for PP in China.
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17 August 2010
Reynolds Group Holdings, a subsidiary of New Zealand-based billionaire Graeme Hart's Rank Group has agreed to acquire consumer and food packaging manufacturer Pactiv Corporation for approximately $6 billion.
Under the terms of the agreement, Pactiv shareholders will receive $33.25 in cash for each share of Pactiv common stock held, representing a premium of approximately 39 per cent over Pactiv's closing price of $23.97 on May 14, 2010.
Reynolds is based in Chicago, Illinois, and operates through four primary segments: SIG, Evergreen, Reynolds Consumer, and Closure Systems International.
With 2009 sales of $3.4bn, Pactiv derives more than 80 per cent of its sales from market sectors in which it holds the number one or number two market-share position. Pactiv's Hefty brand products include waste bags, slider storage bags, disposable tableware and disposable cookware.
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16 August 2010
Packaging producer Artenius PET Packaging Europe (APPE) has announced a new model for growth after its owner La Seda de Barcelona Group (LSB) completed a financial restructuring programme that includes a €300 million ($384.9m) capital investment by investors.
The company is moving away from its previous strategy of vertically integrated resin and PET product businesses to a focus on developing its plastics packaging product range using specialist resins and recycled PET.
Following its debt restructuring, LSB admits that it must develop new customers in new sectors and support this by targeting additional areas of the packaging market.
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12 August 2010
US plastics additive manufacturer Chemtura has won approval from the Bankruptcy Court for a plan designed to finance the company’s exit from bankruptcy protection with approximately $1 billion in new debt.
The plan involves Chemtura borrowing $275 million in a revolving credit facility and as much as $750m through an unsecured term loan or notes.
Chemtura will seek final approval for the financing when it confirms a Chapter 11 plan. Chemtura Canada filed for bankruptcy yesterday in order to become included in the reorganisation plan filed by its US parent company.
Alongside this news, Chemtura reported a net loss from continuing operations of $41m for the second quarter 2010. This was despite net sales rising 22 per cent from the same period last year to $767m and operating profit also increasing to $79m.
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12 August 2010
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| Wells Plastics has become the first company to be certified in the UAE for oxo-biodegradable additives |
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Wells Plastics in the UK has become the first company to obtain the ‘Emirates Quality Mark’ certification for oxo-biodegradable additives from the Federal UAE Authority: ESMA, for its ‘Reverte’ brand.
The newly introduced UAE Standard: S 5009 ‘Standard & Specification for Oxo-biodegradation of Plastic bags and other disposable Plastic objects’ was issued to both Wells Plastics and its UAE-based distributor Excel International FZC.
Bags or film made with ‘Reverte’ are said to degrade via a two-step process when discarded into the waste stream. The carbon-carbon bonds in the long chain polymer undergo oxidative cleavage, leading to embrittlement due to lowering of molecular weight, which then leads to the second stage: biodegradation. Here the smaller molecules biodegrade in the presence of microbes, converting to water, biomass and carbon dioxide.
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| Thursday, August 12 | | · | BOREALIS CONTINUES FINANCIAL IMPROVEMENTS |
| · | EASTMAN EXPANDS CHDM CAPACITY |
| Monday, August 09 | | · | GRAHAM FEEDS DOMESTIC MARKET WITH ACQUISITION |
| Thursday, August 05 | | · | BILCARE INVESTS IN INEOS FILMS BUSINESS |
| Wednesday, August 04 | | · | MATERIAL COSTS ADD TO INTERTAPE WOES |
| · | BOOST FOR GRAHAM AHEAD OF CHINESE ENTRY |
| Tuesday, August 03 | | · | AMCOR COMPLETES PLASTIC PACKAGING AMERICAS ACQUISITION |
| Monday, August 02 | | · | HEINZ FLAGSHIP BEANZ TO GO PLASTIC |
| Wednesday, July 28 | | · | BEMIS SEEKS FURTHER ACQUISITIONS |
| Tuesday, July 27 | | · | NOVOMER WINS GRANT FOR CO2 PLASTICS |
| · | APPLETON SHEDS FILM OPERATIONS |
| Friday, July 23 | | · | SONOCO INCOME RISES UPON DEMAND |
| Thursday, July 22 | | · | WINPAK BAGS THIRD SUCCESSIVE GROWTH QUARTER |
| Wednesday, July 21 | | · | RECKITT BENCKISER GETS PERSONAL WITH SSL ACQUISITION |
| · | SLEEVING SPECIALIST BUYS GRAHAM ENGINEERING |
| · | RPC PROFITS FEND OFF POLYMER PRICE INCREASES |
| · | PACTIV PURSUES FIBRE CONTAINER INVESTMENT |
| Tuesday, July 20 | | · | PETROQUIM PLANT STARTS UP AFTER EARTHQUAKE |
| · | EUROPEAN PET BOTTLE COLLECTIONS CLOSE TO 50 PER CENT |
| Friday, July 16 | | · | EUROPACK SUMMIT SEEKS TO HELP PACKAGING EXECUTIVES |
| Thursday, July 15 | | · | EXOPACK BUYS BEMIS ASSETS |
| Wednesday, July 14 | | · | PREGIS INTEGRATES INTELLIPACK UNDER ONE ROOF |
| Friday, July 09 | | · | EUROPEAN PANEL DELAYS PUBLISHING BPA OPINION |
| · | RECYCLED PLASTICS PACKAGING AWARD |
| Thursday, July 08 | | · | REXAM ANNOUNCES PLANT CLOSURE DATE |
| Tuesday, July 06 | | · | RIO TINTO FINALLY COMPLETES ALCAN PACKAGING DIVESTMENT |
| · | DUBAI GETTING THE PLASTICS TRADE BALANCE RIGHT |
| Thursday, July 01 | | · | GRAHAM PACKAGING MOVES INTO CHINA |
| Wednesday, June 30 | | · | SONOCO SECURES APT ACQUISITION |
| · | R&D SALES GROWTH INSPIRES PSL INVESTMENT |
| Thursday, June 24 | | · | STATE SWEETENERS ENCOURAGE REXAM TO KEEP HOT SPRINGS |
| Wednesday, June 23 | | · | FLINT ACQUIRES TORDA |
| · | PET MANUFACTURER PLANS TO BOOST OUTPUT |
| Monday, June 21 | | · | GERRESHEIMER APPOINTMENT |
| Thursday, June 17 | | · | NEW RESINS FROM CEREPLAST |
| Wednesday, June 16 | | · | AMCOR TO BUY BALL'S PLASTICS PACKAGING BUSINESS |
| Tuesday, June 15 | | · | EUROPACK SUMMIT UNVEILS TOMORROW'S PACKAGE |
| Thursday, June 10 | | · | MOLD-MASTER RELOCATES UK OPERATIONS |
| · | LPS BOOSTS SUSTAINABILITY |
| · | GRAHAM APPOINTMENT |
| Wednesday, June 09 | | · | CEREPLAST PREDICTS LARGE RISE IN BIOPLASTICS SHIPMENTS |
| · | MASTERBATCH ANNOUNCES ULTRACROME EXTENSION |
| Tuesday, June 08 | | · | ENVIRONMENTAL BILL COULD SECURE INDIAN PLASTICS FUTURE |
| · | BOROUGE AWARDS INNOVATION CENTRE CONTRACT |
| · | REWARDS FOR RECYCLING OFFERS BOOST FOR PLASTICS COLLECTION |
| Monday, June 07 | | · | NEW FILMS FROM INNOVIA |
| Friday, June 04 | | · | PLASTICS EQUIPMENT DEMAND GROWS IN PAKISTAN |
| · | ALPHAPET FULLY OPENS US PET PLANT |
| Thursday, June 03 | | · | HUSKY MAKES AS GOOD AS NEW |
| · | GUNDLE PERFORMS WELL FOR WINHOLD |
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