Modern Plastics Worldwide - July/August 2009 - dae uptlax

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were put on hold in China for around
six months but now seem to be gaining
momentum. “It will take some time to
see if this continues but a lot of projects
that were shelved last year are restarting,”
stated Tarrant. In particular, petrochemical
joint ventures need flexible
plastic packaging for their production,
he said. Increased fertilizer production
in China coupled with a tendency to
switch from woven sacks to PE sacks is
also boosting demand.
Chinese processors naturally are also
looking to reduce their plastics’ cost by
reducing material use, which should drive
a shift to greater use of linear low density
polyethylene (LLDPE) for flexible packaging.
One thing standing in the way of
downgauging, however, is that Chinese
businesses continue to manhandle bags
rather than use automated handling.
“They are handled roughly and 120 μm
or 140 μm bags wouldn’t be able to handle
such treatment,” noted Tarrant. Cur-
ASIA-PACIFIC
Business, Strategies & Markets
Clariant’s Heise: W-shaped recovery.
rently the standard in the country is 160
μm. “China needs to revisit its logistics
system before downgauging to gauges of
advanced countries,” adds Tarrant.
Brückner (Siegsdorf, Germany),
meanwhile, has received orders for seven
bi-oriented polypropylene (BOPP) and
polyethylene terephthalate (BOPET)
lines in China so far this year, and officials
there reason it is benefiting from the
availability of financing and a relatively
strong local economy. “At present, processor
margins are slim but their operating
rates are high so cash flow is good,”
noted Phillip Chen, managing director
of Brückner Far East (Hong Kong). As
Chinese processors invest in the more
cost-effective lines, older lines will have
to be shut down or be devoted to niche
products, according to Chen.
“We expect to sign a few deals after
the Chinaplas show,” said Peter Oswald,
managing director of tenter equipment
manufacturer DMT Guangzhou Machinery.
The two latest BOPP projects in
Asia for the manufacturer are at processors
Paoyan (Taipei) and Zhejiang Yiwu
YiMei Film Industry (Yiwu, Zhejiang
Province). Both lines are equipped with
DMT’s TDO inlet sprocket drive, which
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36 JULY/AUGUST 2009 • MODERN PLASTICS WORLDWIDE mpw.plasticstoday.com