PETpla.net Insider 04 / 2014

NEWS 9 PET planet insider Vol. 15 No. 04/14 www.petpla.net PET overcapacity ‘crisis’ PET markets globally are facing an overcapacity crisis as waves of new production resources come on stream in China, according to Francesco Zanchi, CEO of busi- ness services group GSI Global Service International. He delivered his analysis at the second ICIS PET Confer- ence, held March 11/12, 2014 at the Hilton Amsterdam, The Netherlands. He that global PET demand in 2014 will increase 6% over 2013, to 19.7million t/a. However, he claimed that supply will increase by 20%, to 29.4million t/a, leaving the market around 50% over-supplied. The main source of the problem is asserted to be China, where local demand of 4.2million - 4.5million t is almost doubly catered for, with capacity of around 8mil- lion t. He forecasts a surge in Chinese exports, from 1.85million t in 2013 to 2.2milllion - 2.3million t this year. Chinese PET facilities will achieve operating rates of only around 65% during 2014. He further claimed that the situ- ation in Europe is also deteriorating. While the region has traditionally been a net importer of PET because capac- ity lagged demand, two new projects scheduled to come on stream will change the picture. The additions of Lotte’s 200,000t/a plant in the UK and Indian group JBF Indus- tries’ 440,000t/a facility in Belgium will be partially offset by closures at La Seda de Barcelona in Italy (180,000t/a) and Indorama at Workington (160,000t/a). Other projects have also been delayed or cancelled but Europe in 2014 will still have around 300,000t/a of new capacity, and facilities in Turkey and Egypt are also adding up to 900,000t/a of new capacity, which is mostly targeted at Europe. Furthermore, a new free trade agreement (FTA) with South Korea is lowering tariff barriers to zero, allowing it to export around 300,000t/a of PET towards Europe. Turkey, Thailand, Egypt and Indonesia all also have 0% duty arrangements, meaning a total of 2.4million t of PET capacity will be targeted on Europe. Mr Zanchi forecast that operating rates in Europe are likely to plum- met from over 80% in 2013 to around 60-65% by 2015/16. On the other hand, he said that positive developments were likely to include reductions in the price of both PET and feedstock PTA, which will help European competi- tiveness and, consequently, stimulate demand. Earlier in the conference, Nexant Consultant Stuart Hardy, forecast that huge volumes of PTA capacity being added in China - around 17million tonnes from 2014 to 2017 - would lead to “terrible” margins, low operating rates and periodic plant shutdowns. www.gsiplastic.com Piovan’s golden year Italian company Piovan is marking its its golden anni- versary. The company now known as Piovan was formally established in 1964, which means that this year – 2014 – marks its 50th year of the design, manufacture and supply of auxiliary machinery for the plastics industry. Over that time it has accumulated more than 50,000 custom- ers worldwide. In fact, its roots go back even further than 50 years. In 1934, Costante Piovan & Figli was founded in Padua, Italy, as a metalworking shop - but its founder, Costante Piovan, had ambitions that went beyond merely producing moulds for other companies, no matter how prestigious they were. His customer-focused approach was unusual for the time, but this guiding principle has linked all three generations of the Piovan family. 1964 was the year when Piovan launched its first equipment on the Ital- ian market - a granulator and a material loader. It now has five production facilities:in Italy, Germany, Brazil, China and the United States, 21 subsidiaries, agents in more than 70 countries, and a total of 900 employees, of which 140 are customer assistance engineers. Piovan’s range of products and services includes feeding, blending, drying and recy- cling systems, industrial chillers and temperature control- lers. It integrates its wide array of equipment with propri- etary production monitoring and control software. Piovan likes to claim that it continues to offer a customer-oriented approach as not just a supplier but as a partner, working alongside its customers. Piovan’s milestones:  1934: Costante Piovan & Figli (then Centro Meccanica), a specialist in precision mechanics, is established in Padua.  1964:Piovan produces its first granulator, followed by the Convair dryer and Convector feeder.  1970s: The first refrigeration line, in 1972, and its first central feeding, blending and drying system. A joint ven- ture with Star, a Japanese robot manufacturer, gives life to Star Automation. Piovan Germany opens in Garching, near Munich, 1974.  1980s: Specialisation in PET, introduction of electronics, partnerships with key OEMs, further growth on foreign markets. Inauguration of the new facility in Santa Maria di Sala, near Venice, Piovan’s current headquarters. Piovan France opens in Brion, 1986.  1990s: Piovan extends into Automotive, Electronics and Textile, and opens new branches in Canada, Brazil and Asia. Acquisition of a software company to develop remote plant monitoring and control systems.  2000s: Two factories are started in Brazil and China; new branches opened in Mexico, UK, Austria, Hungary and the Czech Republic, India, Turkey, Thailand, Indone- sia and Vietnam.  In 2008, Piovan purchases US company Universal Dynamics, (UNA-DYN). In 2010, it acquires majority stake in FDM, a German company specialising in extru- sion technology. www.piovan.com MachinePoint reports profitable 2013 MachinePoint, the European specialist in the sale of used plastic machinery, has reported increased revenues, sales and profitability in 2013. Its turnover rose by nearly 39% over 2012, which was itself 24% higher than the previ- ous year. MachinePoint was founded in the early 1990s and was an early adopter of e-commerce. Around half of its business in 2013 came from returning customers. www.machinepoint.co m