Annual Report 2010 - Plastics New Zealand

PLASTICS INDUSTRY BLUEPRINT: CORPORATE AND ENVIRONMENTAL ACTIVITY: MEMBERSHIPS &SUPPORT: AGM & FINANCIAL STATEMENTS FOR 2009-2010 PERIOD Maximising the growthand success of Plasticsbased technology inNew Zealand in aneconomically sociallyand environmentallyresponsible mannerAnnual Report 2010

National President’s StatementTerry MischefskiNational PresidentPlastics New ZealandWelcome to the Plastics New Zealand AnnualReport. I am sure you will find a wealth ofinformation about our Industry within thesepages to enable your business to prosperduring the coming year.Our Industry has survived another year withuncertainties of roller coaster proportions.However, compared to the previous year Iam sure most of you can now see light at theend of the tunnel.I understand that you have had very littletime for extracurricular activities other thankeeping your heads down and surviving inyour businesses.In the meantime PNZ has been workingextremely hard during difficult times inensuring the future of Plastics business inNew Zealand and projecting our energiesinto projects which may take time, but willultimately manifest into profit for our industry.It is imperative that, even during times ofadversity when the odds seem impossible,we continue our vision for the future bysticking to our strategic business plan.The decision to reduce our 2009 Conferenceto one day in Auckland, replacing three daysat Wairakei, was, I believe a good messageto Members that we must reduce ourexpenditure as quickly as possible when ourincome is at risk.The day proved to be very successful, with anemphasis on surviving during tough times.The number of Companies belonging toPlastics New Zealand has remained constantaside from a few who have resigned andthose which have amalgamated with largerorganisations.Growth within the Industry has slowedthrough 2009, Companies have taken theopportunity to reduce costs, and return tothe basics of running a business.Raw materials pricing has provided thegreatest benefit since the melt down ofNovember 2008 having stabilised at lowerlevels, and the demand for our products hassettled over the same period.We all look back on 2009, and begin tounderstand the process in which we havebeen a part of. Most manufacturers are nowfinding new solutions and opportunities tobegin once again to grow their businesses.As we begin a new decade of the newmillennium, we enter a new economy withreduced interest rates, a higher dollar, anda relatively stable work force to begin thecycle again. I wonder if we will learn from ourmistakes, or will we allow, once again, ourGovernment and our Banks to turn young,average hard working citizens into toxic debtrecipients, and repeat that same cycle.Plastics New Zealand continues to preparethe way for increased exports by developingan Export Strategy in partnership withNew Zealand Trade and Enterprise, andinterested Companies.The majority of progress is being made withintwo areas, namely Plasticulture in India, andAquaculture in New Zealand;Plasticulture; an opportunity for New Zealandplastic companies to form a strategic groupwith other compatible industries to developan integrated farm management solution inIndia, targeting irrigation, piping, tanks, andplastic sheeting, to name a few.Aquaculture; form a strategic group todevelop a range of products for use inthe aqua farming sector, with the aim ofexporting to countries which are early in thedevelopment of this industry.One project still sitting at the planning stageis Med-tech;Med-tech; to form a strategic group inconjunction with hospitals, manufacturers,and research organisations, to design andproduce specialised medical componentsfor export.Our Conference for 2010 will be a two dayevent in Christchurch during June, and wewill soon be preparing for the Plastics BiannualAwards due to be held in October.This is a great opportunity for Companies toshow off their latest products and designsto the World.The Plastics Centre of Excellence iscurrently busy on two projects funded byFRST, with another in the pipe line; theCentre is also doing testing and analysis forlocal Companies.The message to all innovative Companies isto invest in Research and Development andimprove your bottom line for the medium tolong term.There are funding agencies out there willing toaccept some or most of the risk. The Centreof Excellence is set up to research polymerscience for clever, intelligent, products andservices and assists in the commercialisation.It is the commercialisation of research thatcan create the maximum benefit to NewZealand’s economy.I encourage all of you to investigateyour options with the Plastics Centre ofExcellence.Our ongoing commitment to environmentaland sustainability issues continues tomake progress through the work carriedout by the Environmental Committee. Thisyear we launched the Degradables Guideat the Centre of Excellence attended byout Prime Minister Mr John Key. The BestPractice Energy Program continues to findenergy savings within Plastics Companiesthroughout New Zealand.I would like to thank Dennise Chapmanfor all the work she has done in herrole as Chairperson of the EnvironmentCommittee. Dennise is stepping down andJohn McKee from Marley New Zealand willmove into the Chair.Commitment to training industry memberscontinues to improve with the successof Barbara Wilkinson and her team atPaMPITO. And with the prospect that ITAT,under its CEO, David Caruthers will continueto succeed through 2010.Now let me, for a moment talk about yourcommitment to PNZ.I understand the year has been tough, tosay the least, however one of the greatestbenefits from belonging to your industryorganisation, is that you have the opportunityto network and participate in activities whichdirectly impact on your business needs.I cannot list all the benefits here in thissummary, but if you flip through these pagesand soak up the possibilities on how youcould participate, I am sure you will findsomething that will excite, and encourageyou to become more involved for your ownself development and business prosperity.I would like to thank the work carried out byRobin Martin and the PNZ team, and let’snot forget the voluntary time provided bymembers of the National Executive, and allthose who support Plastics New Zealand nCORPORATE ACTIVITYANNUAL REPORT 2010I PLASTICS NEW ZEALAND

National ExecutiveCommittees of theexecutive 2009CommitteeIndustrial Relations............... Nigel DonneChairmanEnvironmental...................... Dennise ChapmanChairmanPCOE Governance Board..... Laurie CranfieldChairmanAuckland Branch.................. Eddie Devine (Jnr)PresidentWaikato/BOP Branch……… Ray PryorPresidentWellington Branch................ Vacant (Jan-Sept)Stephen Falvey (Oct-Dec)PresidentSouth Island BranchSector groupsEPS...................................... Mark MaidenChairmanPipes & Fittings (PIPA).......... Robin MartinSecretaryRaw Material Suppliers......... Colin ButlerChairmanDennise Chapman (Jan-Apr)Mark Field (Apr-Dec)PresidentPlastics New Zealand StaffRobin Martin......................... Chief Executive OfficerAdriana Schekotova............. Membership Services Manager(Jan-Jul)Kelly Buchanan-Johns.......... Membership Services Manager(Aug-Dec)Lorna Landon....................... National Office AdministratorSimon Wilkinson................... Best Practice Energy FacilitatorTerry Mischefski: (President) 31 years PlasticsIndustry experience. Director of Expol Ltd.Has twice chaired the EPS group and hasrepresented the EPS Group on the NationalExecutive Committee. Current President ofPlastics New Zealand.David Brittain: (Immediate Past President)Industry involvement started in 1970’s with rolesin chemical and plastics manufacturing, sales,marketing and management, including theestablishment of James Hardie Plastics in 1982.Graduate Diploma in Advanced Management.Director of Capac International Ltd.Ray Pryor: (Vice President) Over 43 years in theplastics industry. Technical director of MillenniumPlastics who are specialists injection moulders.Previously held roles within CHH Plasticsincluding design, engineering, manufacturing,group technical. Holds an NZCE (Plastics) and is aProfessional Member of DINZ. Currently WaikatoBranch President.Dennise Chapman: 29 years experience inthe New Zealand Plastics Industry in polymer,masterbatch and additive manufacturing andsupply. Consultant. Has had various roleswithin Plastics New Zealand over the last 18years including Auckland Branch Affiliate, SouthIsland Branch President and Chairman of theEnvironment Committee. Dennise is also thelongest serving woman in the industry.Graeme Allan: 29 years in Plastics Industry. AProcess and Production Management backgroundin Moulding and Extrusion processes, currentlyHuman Resource Development Manager withIplex Pipelines in Palmerston North. Servedthe Plastics ITO since it began as the NationalTechnical Training Committee, then Chaired thePlastics ITO Executive from 1997 to 2000. Amember of the Industrial Relations subcommittee since 1995.Ken Sowman: Group Operations Manager ofthe Gallagher Group, who have inhouse injectionmoulding and tool-making capabilities, (SunplasEngineering) Ken has been actively involved in thePlastics Industry for nearly 34 years. He has hadtwo terms on the National Executive and has alsoserved on the Environmental Committee.ANNUAL REPORT 2010IPLASTICS NEW ZEALANDCORPORATE ACTIVITY

Tony Miller: 28 years experience in the PlasticsIndustry mostly as GM and CEO of several flexiblepackaging and injection moulding businesses. Heis now the owner operator of a custom injectionmoulder Lane Plastics. He has previously servedon the ITO board, Industrial Relations WorkingGroup, Packaging Council and served on theNational Executive for 14 years.Nigel Donne: Human Resource Manager, withMarley New Zealand for 16 years. PreviousPresident Plastics ITO. Previous PresidentAuckland Branch. Currently Chairman of theIndustrial Relations Group.Colin Butler: With 20 years technical salesexperience, Colin has a tertiary quaklification inChemistry and has spent time with UK companyCroda both here and overseas, and Omya ofSwitzerland, before beginning with Hunt Agenciesin 2002. Currently serving on the AucklandBranch Committee, the ITO Board as well asPNZ National Executive as Corporate SuppliersRepresentative.John Bennett: 22 years experience in the plasticsindustry and 36 years within the manufacturingsector. Has held roles in Engineering, Technical,Quality and Operations Management with anumber of companies. Operations Manager ofChemvin Plastics Ltd.Eddie Devine (Jnr): Current Auckland BranchPresident. Holds a Bachelor of Business Degree(Accounting/Marketing Management), along withCertificates in Plastic Processing. Officially hasbeen involved in the Industry for the past 11 years,even though he’s been involved since a youngchild. Is the Operations Director for Simaplas Ltdand is married to Lisa, with two primary schoolaged children.Mark Maiden: 10 years in the EPS Industry andis the Managing Director of Koolfoam Industries. Aqualified Builder, he holds both trade and advancedtrade certificates. He also holds Bachelor ofbusiness papers in Accounting and Management.He is also on the Board of the Claddings Instituteand has been nominated as an industry rep onseveral NZ Standard committees including therevision of NZS 4218. Current Chairman of theEPS Sector Group.Laurie Cranfield: 40+ years experience in theraw material side of the plastics industry. ManagingDirector of TCL Hunt (formerly Hunt Agencies). Hehas had a number of roles in Plastics New Zealand,becoming President in 1997-98 and Life Memberin 2005. Currently Chairman of the Advisory Boardfor the Plastics Centre of Excellence.Barbara Wilkinson: Chief Executive of PaMPITOsince August 2007. 20+ years of Managementexperience and a background in consultingto the manufacturing sector on training andmarketing issues. Provides strategic leadershipto the Plastics Industry on training and employeedevelopment. Has an MBA from the University ofAuckland.John McKee: Has been involved in the PlasticsIndustry for over 20 years in primarily technicalroles with experience across most processes andmaterials. Formal education includes a BSc (Hons)in Polymer Engineering and a PhD ModifyingPolyesters, both from the UK. Over the last 5years there has been involvement with PlasticsNew Zealand on the Environmental Committee,Plastics Centre of Excellence, DDSP programme and a varietyof standards committees. Currently employed as the TechnicalManager for Marley New Zealand.Stephen Falvey: Director - BusinessDevelopment. Uniplas NZ Limited; Over 30years experience in the plastics supply andmanufacturing industry. In 1998, acquired AllPlastics Ltd, an injection moulding and plasticwaremanufacturing and distribution operation based inLower Hutt. In 2006 All Plastics Ltd merged withit’s neighbour Lamnei Plastics to form UniplasNZ Ltd, specialising in custom injection moulding and toolmaking.Currently Wellington Branch President and also current Chairmanof the Board of PaMPITOMark Field: 8 years experience in the plasticsindustry with 27 years experience in themanufacturing sector. Currently General Managerof Elastomer Products Ltd, specialists in plasticsand silicone rubber profile extrusion. CurrentSouth Island Branch President.CORPORATE ACTIVITYANNUAL REPORT 2010I PLASTICS NEW ZEALAND

Key Projects 2009-2010Informing• Industry Newsletters• Technical Evenings• Database/Trade Website Upgrade & Redevelopment• www.plastics.org.nz Website Upgrade & RedevelopmentMarketing• Re-negotiation of the Multi Employer Collective Agreement- 2009• Further development of the Industry Strategic Framework- Ongoing• Relationships with organisations that can add value toMembers businesses• Continued lobbying at Government level - particularly R&D• Design Awards 2010• Annual Conference 2010• Membership Drive 2009/2010Training & Education• Ongoing Development of the Centre of Excellence at theTamaki Campus of University of Auckland• Development of a B.E. Mechanical (plastics option) atUniversity of Canterbury• Launch of the Post Graduate Certificate in Engineering(Plastics) at University of Auckland• Delivery of the Diploma in Design and Specification of Plastics• Arranged overseas expert visits to New Zealand - Bill TobinStrategic Issues• Free Trade Agreements with India, Thailand, and others• Further projects to progress the Strategic Framework– Toolmakers Research & Follow Up Activity, Export StrategyDevelopment• Working with NZTE and other Govt. agencies on theimplementation of Manufacturing+ StrategyEnvironmental• Best Practice Energy Programme• Best Practice Benchmarking web based tool• Mass Balance improve accuracy• Recycling Survey – improve reach• Update recyclers list• Distribute Plastics ID code 1 to 7 – widely and encouragecouncil use• HSNO Group standards spreadsheet and advice to members• Review Plastics Sustainability Initiative for 2008• Participate in Negotiating of Third Packaging Accord• Assess Product Stewardship Provisions or Waste Minimisationand resource RecoveryKeeping You InformedEventsIn 2009 we kept you informed on current issues with:• PCOE First Birthday Celebrations• Export Strategy, Manufacturing+ and other NZTE Initatives• The 65th Annual Plastics New Zealand Conference at theCentra Hotel in Auckland• Plastics New Zealand regular email communications withlinks to information viewable on www.plastics.org.nz.• Regular updates on industry statistics, tenders and tariffsduty concessions• Visits to member companies - over 60 companies visitedduring the year• Ongoing updates of our www.plastics.org.nz information site• Education and Training – Plastics Centre Of ExcellenceDevelopment, New Post Graduate Certificate inEngineering (Plastics)• Diploma in Design and Specification of Plastics over 200participants at various levels• Advised of those people, with specific skills, seekingemployment in the industry website/email• Statistics collected via Mass Balance Survey• Statistics collected via recycling Survey• 2009 Boatie Bags• 2009 MECA Negotiations• Media Releases – Degradable Plastics In New Zealand,Plastic Bags, PET Water Bottles, Microwaveable Plastics,Plastics Packaging Accord and 5 Year Progress Report.seminars, workshops, tours andtechnical sessions• Sector group meetings• Best Practice Degradables Workshop and ongoingworking group• Best Practice Seminars on Energy with Sam Fairley• Best Practice Energy ProgrammeSponsorship• Platinum, Gold and Silver sponsors of Plastics NZSocial Events throughout ourbranch network• Golf Tournaments (Auckland, Wellington, South Island)• Go Karting (Auckland)• Fishing (South Island)• Auckland Branch 50th Jubilee Dinner• South Island Branch 50th Anniversary Dinner• Technical Evenings (South Island, Auckland, Waikato,Wellington)• Christmas Dinner (South Island)• AGMsANNUAL REPORT 2010 IPLASTICS NEW ZEALANDIn addition we responded to thousands of phone calls, faxesand e-mails about the industry and generated many leads onyour behalf.CORPORATE ACTIVITY

CEO ReportRobin MartinChief Executive OfficerPlastics New Zealand2009 has been another busy year for everyone in the industry. Busy for a number ofreasons – some positive and some not sopositive. There are a number of sectors in theindustry and some were more affected by thedownturn than others – farm conversions,building industry, infrastructure sectors allhave had major adjustments. Other sectorssuch as dairy, local food retail and insulationhave been less affected. So depending onwho your customers are will reflect on yourown company circumstances.In addition to all these uncertainties we havethe new Government investigating a range ofissues that will be announced in the New Yearand others that will be announced in the 2010Budget. Some of these issues could be ofmajor benefit to the plastics industry – R andD Strategy focused on commercialization,support for the Aquaculture Industry, supportfor the Medical Technologies sector and theoverall push to overhaul Australian economicout put, in the medium to long term.It is clear from my conversations withMembers that trading is difficult, cash flowis not easy, and capital expenditure is offthe ‘to do’ list. I believe that 2010 will not bevery different with improvements in tradingunlikely to emerge, and if they do, it will notbe until, towards the end of 2010.Against this backgroundof uncertainty anddifficulty Plastics NewZealand has beenworking on your behalfto support you on yourendeavors.Some of the outcomes achieved through2009 include:Industry Strategic PlanThe Industry plan created in 2004 continuesto be the founding document for manyactivities, lobbying and funding applications.This document will be updated in 2010 toreflect the changes in the industry and ourcustomers over the last 5 years. The factthat, as an industry, we have a plan forthe future helps with our discussions onlegislation, funding and other issues whenwe liaise with NZTE, FRST, TEC and otherGovernment Departments.The Plastics Centre ofExcellenceThis partnership between Plastics NewZealand, on behalf of the Industry, andThe University of Auckland, based on theUniversity of Auckland, Tamaki Campus,continues to go from strength to strength. TheIndustry was pleased to host the new PrimeMinister, Hon John Key, and the Minister ofResearch Science and Technology, the HonWayne Mapp – to see what the Industry wasdoing to enhance the Industries ability toto add value to the Industries exports. Wewere also pleased to support the AustralasiaRotomoulding Association (ARMA) and theirtraveling road show of high quality highlydesigned Italian rotomoulded productswhere over 200 people visited an exhibitionand a Technical seminar.The centre has been busy during 2009progressing the 2 projects that we receivedFRST funding for in 2008. The PLA projecttocreate a tear resistant PLA film – hasbeen particularly successful with IP beinggranted and more to come. It is expectedthat commercial product, with the supportof Clariant and Convex Plastics, should beavailable for sale in the 2nd quarter of 2010.With the PVC project – to produce a nonhalogenated flexible PVC replacement – isalso progressing well with concepts provenand with a good likelihood of IP in early 2010.Over 50 companies have used the testingand analysis facilities in the last 12 months.There is however much work to be done toensure a long lasting world class service –work to encourage Industry Members, BrandOwners and overseas potential clients – toactually use the Centre. The key stumblingblock is funding and much work is going onto secure funding for a variety of identifiedprojects that would add benefits to theIndustry and the New Zealand economy.CollaborativeSolutions BasedExport StrategyThis project continues with the supportof NZTE and based on a report byPricewaterhouseCoopers and a series ofbranch meetings around the country it wasagreed to target the Plasticulture Industryin India and the Aquaculture Industry inNew Zealand. There has been significantactivity in both markets with a delegationin India as this report is being written. Afurther delegation will go to India in March2010. The Aquaculture market is benefitingfrom some major support and attentionfrom Central Government and with theexpected legislative changes in early 2010the Industry is expected to grow andprosper in the next few years in pursuitof their stated goal of a $1 billion exportIndustry by 2016. The Plastics Industryis well placed to benefit from this growthwith a number of design programs thatcould be run through the Plastics Centre ofExcellence and many sectors of the Industrywell placed for growth in that market- frominfrastructure, farming and harvestingthrough to packaging and logistics.CORPORATE ACTIVITYANNUAL REPORT 2010I PLASTICS NEW ZEALAND

www.plasticsnz.comThis trade portal is being revamped withsupport from NZTE. This potentially hugelyimportant business tool to Members will begoing live in the early part of 2010 and, inconjunction with a new style database willbe able to act as a world wide salesman. Apotential customer anywhere in the worldwill be able to log on and make an enquiryfor the supply of product. The effectivenessof the site will largely depend on theaccuracy of the data that members supplyto the database.www.plastics.org.nzThis information site is also being revampedwith the support of NZTE. With a newstructure, a new graphical design andincorporating the latest in technology we arevery excited about the potential of this site.Market SectorDevelopmentThe new National Government is undertakingsome sweeping reviews in a number of areasthat is likely to have a positive impact onthe Plastics Industry. There is considerablesupport for the Aquaculture Industry with6 Ministers being involved with legislativechanges to encourage development ofsuitable shallow and deep water farming.It is likely that the legislation will also allowthe introduction of a levy to fund Researchand Development- a model that the PlasticsIndustry could find appropriate.With the support of NZTE the MedicalTechnologies market has been identifiedas a market where there is considerableopportunity for high value, high added value,export orientated products. This placesthe Plastics Industry in good space to takeadvantage of this support.TrainingThe need for training was identified in theIndustry Research and the Industry StrategicPlan as a fundamental issue if we were tomeet our objectives to reach a turn over of$4 billion by 2015. As a result of this needPlastics New Zealand has worked hard onyour behalf in a number of areas• The University of Auckland will introducea Post Graduate Certificate in PolymerScience in 2010. This will be the firsttertiary level qualification offered in NewZealand. For more information contactnr.edmonds@auckland.ac.nz• This Post Graduate qualification will alsobe offered by Plastics New Zealand, tothose who do not have a first degreebut have the knowledge and skills topass the course. For further informationplease contact robin@plastics.org.nz• Bill Tobin visited New Zealand inMarch with a week of courses opento all members and then a week ofwork at specific individual companies.Both offerings were well received andresulted in some excellent outcomes• The DDSP was again run in Aucklandwith some good attendances andexcellent support from Fisher andPaykel Healthcare. We have started totarget the brand owners and we weresuccessful in attracting some FoodTechnologists. We now want to targetPackaging Technologists and MarketingPersonnel (Marketing Managers andBrand Managers) as plastics used inpackaging is a key element that needsto be addressed. For further informationcontact robin@plastics.org.nz• ITAT continues to thrive (see separatereport)- and as wholly owned subsidiaryof Plastics New Zealand we wouldencourage Members to use theirservices. For further information contactDavid Carruthers on david@itat.co.nzInformingOne of the key responsibilities of PlasticsNew Zealand is to keep Members informedof what is going on in the Industry and theareas of the political, economic and socialaspects of the community we live in. To thisend Plastics New Zealand has delivered thefollowing benefits to its members• Newsletter – we have had 3 of thesethis year that have been distributedelectronically to all Members and otherinterested parties• Branch Activity – see separate reportsfor the details. This year we have hadexcellent support and activities fromthe Branches with both Auckland andSouth Island commemorating their 50thAnniversary with some well attendedevents. The Branches are the life bloodof Plastics New Zealand and theenthusiasm and work done at this level- technical, social and sporting - augerswell for the future• The Annual Conference was held thisyear in Auckland as a 1 day event. Theplanned 3 day event was cancelled asa result of the economic environment.This was attended by over 100Members and was incorporated intoan evening event to commemoratethe 50th Anniversary of the AucklandBranch which also attracted over 100Members. The change to a 1 day eventwas well received and reflected therealities of doing business today• The MECA – as this report is beingwritten the MECA negotiations areincomplete. A mediation session isplanned in mid December. It wouldappear from events to date that theconcept of a MECA, from the employersperspective, is under severe strainANNUAL REPORT 2010IPLASTICS NEW ZEALANDCORPORATE ACTIVITY

EnvironmentalPlease see the separate report for theEnvironmental portfolio but I would like tomention a few highlights.• Much excellent work has beencompleted by Simon Wilkinson in theEnergy Efficiency sector with a numberof audits having been completed withup to 20% savings being identified• The Environment Committee chairedby Dennise Chapman has hadsome excellent results in difficultcircumstances – in particular thecompletion of the Mass Balance Surveyassisted by Bruce Dunlop and the finalreport under the Packaging Accord• Plastics New Zealand also facilitateda number of meetings creating adegradable guide which was launchedby the Prime Minister at the PlasticsCentre of ExcellenceThe FutureThere are a number of issues that PlasticsNew Zealand faces which need to beaddressed. The key issue is that of fallingMembership due to Industry changesresulting from buyouts and amalgamations.This has resulted in a significant decline inMembership subscriptions, which, in itself,means that we are not able to deliver all thebenefits to our Members. This is a significantissue that needs to be addressed.ThanksI would like to thank a wide number ofMembers who have made significantcontributions to the running of PlasticsNew Zealand during 2009. In particularTerry Mischefski who, as President, hasspent countless hours on a variety of issues– all for the benefit of our Members. TheNational Executive has run smoothly underhis chairmanship. I would also like to thankLorna for her tireless administrative support,to Adrianna who served us all well while Kellywas on maternity leave, to Simon Wilkinsonfor his work to encourage members to bemore energy efficient and lastly to Kelly whohas slipped back into her role as MembershipServices Manager, very efficiently.For further information please contactRobin Martin: robin@plastics.org.nz n2010 PlasticsIndustry BiennialDesign AwardsThe New Zealand Plastics IndustryDesign Awards 2010Supreme AwardIn 2010 Plastics New Zealand willagain host the Plastics IndustryBiennial Design Awards. Theseawards are an opportunity toshowcase the Plastics Industryand to recognise those memberswho are transforming the way inwhich Plastics are perceived inthe market. Innovation, productsubstitution, value-addedproducts, technology and a keenentrepreneurial spirit are the keypoints driving this transformation.Entries open in early April 2010and close on the 30th July 2010.A Gala Evening & AwardsPresentation will take place atthe Ellerslie Convention Centre,Auckland on Friday 8th October2010, where we will celebratethe innovative and exceptionalproducts and people that existin our Industry. Key people fromIndustry Strategic Partnerships(such as NZTE, EECA, MFE,MRST, UoA) will be in attendanceand an invitation extended to thePrime Minister to be our GuestPresenter.Membership ServicesKelly Buchanan-JohnsMembership ServicesManagerPlastics New ZealandI am very pleased to be back working atPlastics New Zealand, albeit on a parttimebasis, and thank Adriana Schekotovafor filling in for me while I was away onMaternity Leave. While some things havechanged during my year away, others haveremained the same and I am happy to seemany familiar faces.Planning for the Annual Conference beingheld in Christchurch in June 2010, isunderway in conjunction with the SouthIsland Branch. The conference format hasbeen revised and will comprise 2 daysof speakers, sector groups and paneldiscussions. There will be a gala dinner onthe evening of the first day. Other socialactivities will occur prior to, or immediatelyafter, the conference for those wishing tostay longer and participate in these.We are shortly to get underway with the2010 Plastics Industry Biennial DesignAwards. Entries will open for this inearly April with the Gala Evening andannouncement of the winners occurringon Friday 8th October 2010. Start planningyour entries now and we look forward toseeing some innovative and exceptionalproducts taking centre stage in 2010.In the coming year some of the other mainitems I will be focusing on include;• Events & Activities – AnnualConference June 2010 (Christchurch),2010 Plastics Industry BiennialDesign Awards (8th Oct 2008),Branch Activities, DDSP, Seminars,Roadshows• Membership – Database & website redevelopment& launch, MembershipRecruitment, Membership Directory(online), Membership Benefits,Member visits.• Environmental - Annual Mass BalanceSurvey, Recycling Survey• Communications – PNZ Newsletters,Publications, Websites, ImprovedCommunication Tools, MediaRelations, Key Supplier Relationships,Trade & General Public Queries nCORPORATE ACTIVITYANNUAL REPORT 2010I PLASTICS NEW ZEALAND

Baekeland AwardDr PeterPlimmerThe BaekelandAward is madeperiodicallyby PlasticsNew Zealand for outstandingcontributions to the plastics industry.It is an award made in recognitionof exceptional work usually in thetechnical, commercial or educationand training fields, but is notnecessarily limited to these areas.As the notes on the first 50 years ofPNZ record, the Baekeland Awardis the individual award most highlyprized in the Society. Only fivesuch awards have been made in thehistory of the Society.Previous recipients have been DougMillar (1977), Ken Fletcher (1981), BillConolly (1991), Morris Watson (1995)and Gordon Wyatt (1998).At the Annual Conference &Auckland Branch 50th JubileeDinner in June 2009 a sixth awardwas given to Dr Peter Plimmerin recognition of his outstandingenthusiasm and dedication to thesuccess of the Plastics Centre ofExcellence, his willingness to sharehis knowledge and experiences andhis contributions to the Upskilling &Training of the Industry nBranch ActivitiesAucklandBranch ReportEddie Devine(Simaplas Ltd)President Auckland BranchPlastics New ZealandThis year has been a very interesting year,where we have seen a real battening downof the hatches by most Member companies.The recession has forced companies torelook at their business model. This haslead to changes in restructuring of staff,running down of stocks, and doing withoutto ensure an at least breakeven result forthe year.But at the time of writing this report, themarket has appeared to have bounced back,with most Members getting back towardsthe capacity they were operating at prior tothe recession.During the year, Auckland Branch hascontinued with their focus of facilitatingalterrnate social and technical eventsthroughout the year.These have included;• Annual Golf Tournament• EMS Grivory Presentation (Andre Suiter)• Annual AGM – Rachel Barker (F&PHealthcare) appointed as Vice President• Sponsorship of PAMPITO Course• 50th Golden Jubilee• Matrix Presentation (Don Campbell)• Annual Go Karting• Energy Savings Presentation (SimonWilkinson)• Christmas DinnerThe highlight of the year was the celebrationof Auckland Branches 50th Golden Jubilee.This took place on the night of the AnnualPNZ Conference, which enabled friends fromother parts of the country the opportunity tojoin in on the celebrations.The night started with a parade and photosession of the 12 Past Presidents, that wherein attendance, and apologies of others.Two PNZ awards were then presented to DrPeter Plimmer (The Bakerland Award), and toDavid Brittian (The PNZ Life Membership).There was then a tongue in cheek presentationabout Auckland, and the changes that haveoccurred during the past 50 years. This thenlead to our Guest Speaker Morris Watsongoing back down memory lane about someof the moments he was involved in during histime with the Auckland Branch.The night concluded with dancing to thegreat band RSB, and catching up withfriends in the Industry.I would like to thank those who have attendedevents during the year, and hope that youhave enjoyed them as much as we have.Special thanks to those companies that havecontributed via way of sponsorship.We are continuing to boost our ranks atthe committee level, and welcome anyonewho would be keen to become involved atthis level.Thank you for your support during 2009, wehave already penciled in some of the morepopular events to repeat again, and added insome new and exciting events in which welook forward to seeing you at next year.From the lessons learnt through this past year,I hope that you all enjoy a more prosperousyear in 2010 nCORPORATE ACTIVITYANNUAL REPORT 2010IPLASTICS NEW ZEALAND11

Branch ActivitiesWaikatobranch reportRay Prior(Millennium Plastics Ltd)President Waikato BranchPlastics New ZealandThe Plastics scene in the Waikato enjoyed ahigh level of activity across most disciplinesleading up to the first quarter of 2009 butthis was reduced significantly through the2nd & 3rd quarters due to the “knock-on”effects of the global recession with someplants reducing staffing levels and operatinghours to ensure their viability.The year is finishing off with improveddemand for most sectors.Bi-monthly branch meetings have been heldthrough 2009 with consistent attendanceof a core group representing membercompanies.The main theme to branch meetings hasbeen technology updates with presentationsby global supplier representatives.A top team again represented the Waikatoat the Auckland Go-Karting event later in theyear – an event enjoyed by all.At the Branch AGM held in May Ray Pryorwas re-confirmed as Branch Presidentand Craig McFarlane was elected as VicePresident. The opportunity was taken to holdour annual dinner following the meeting withvery good attendance from representativesof most Member Companies.The “short form” version 2009 AnnualConference was run successfully atthe Auckland Centra in June with thepresentation of plenty of “food for thought”in facing up to the challenges ahead overthe balance of the year. The eveningwas rounded off well with the AucklandBranch Jubilee Dinner following on fromconference proceedings.Thanks to the Waikato conference committeeMembers and Robin’s team for their effortstoward this event.June activities also included two Membercompanies again participating in the annualWaikato Careers Expo for secondary schools,and six member companies who supported“Get a Life Day” which was an Engineeringawareness day organized in conjunction withWINTEC & WECA for Waikato secondaryschool students – an initiative to providestudents the chance to discover the careeropportunities within the broad range of localengineering based industries.A highlight presentation later in the year wason Energy Savings Opportunities by SimonWilkinson and Sam Fairley following hisNPE visit (sponsored by EECA). There wasobvious benefit in having an “expert focus” inthe review of emerging technologies at thisplastics expo, many at the meeting identifiedpotential opportunities within their business’as a result. The knowledge gained by Samwill also evolve into the Energy audit processbeing offered in conjunction with EECA -another gain for our industry.Waikato Branch finances remain positive andthere are local opportunities for Membershipstill to be explored which will further improveon this position.I would again take this opportunity tothank the Members of our branch for theirenthusiasm and support of our activities,and special thanks to Robin and his teamfor their support and guidance from PNZHead Office nWellingtonBranch ReportStephen Falvey(Uniplas NZ Limited)President Wellington BranchPlastics New ZealandIn spite of the regions historical resilience toeconomic downturn, the last 18 months hasresulted in a wide variation in impact on localoperations. Several Members reported thatthey have remained relatively unscathed,while others indicated very sluggish salesand uncertainty about prospects in 2010.There have been no unplanned closuresalthough there has been retrenchment andstaff reductions across the sector.Dux Engineering, who have been part ofthe Plastics Industry in Wellington sinceproducing the first plastic toilet cistern inNew Zealand in 1965, shifted their mouldingoperation offshore in 2008, finally stoppingproduction in the latter part of that year.Robertson Engineering – Upper Huttestablished an injection moulding operationin early 2009 and is a welcome addition tothe sector.The retirement of two members of theWellington Branch committee (GarrettMartens - Chemiplas and Andrew Clarke -Polychem) together with a lack of unifyingissues, resulted in the branch itself takingan informal recess over the 2008/09 period.The Branch came out of recess at the AGMin October, with a good attendance at themeeting and renewed interest in developinga programme of activities in the forthcomingyear. We will be encouraging suppliersto include Wellington on their overseasspecialist visit schedule on the basis that withadequate notice, we will be able to muster aworthwhile seminar attendance.ANNUAL REPORT 2010I12PLASTICS NEW ZEALANDCORPORATE ACTIVITY

The 2009 committee includes:Simon Jones (Thermoplastic Engineering)John Matthews (Calvert Plastics)Steve Logan (Cryovac)Nick Marsden (BRANZ)In spite of the recession, skill shortageswill continue to be a major concern fordeveloping businesses into 2010 andbeyond. The unifying issue for the branchmay well be training and skills developmentto improve the pool of skilled staff availableto the industry.I would like to thank current and pastcommittee members for their efforts andinvolvement in activities. A special thanksto Immediate Past President – Simon Joneswho has very skilfully managed branchactivities while maintaining a hands-oninvolvement in business operations on bothsides of the Tasman nSkill shortages willcontinue to be a majorconcern for developingbusinesses into 2010and beyondSOUTH ISLANDBranch ReportMark FieldPresident South Is BranchPlastics New Zealand2009 has been a tough year for many of ourBranch Members with the recession takingits toll and iconic companies like Fisher andPaykel moving their manufacturing off shore.Despite these challenges the South IslandBranch has remained upbeat and active.Socially the Branch has been busythroughout the year. 25 teams competed inthe Go Karting competition which is growingevery year thanks to excellent organisationby Robert and Stephanie Fowler. The fiercelyfought competition was eventually jointly wonby Ristrom Packaging and Action Plastics.RX Plastics hosted the annual S.I. Branchgolf tournament to the usual high standardand a most enjoyable and social day washad by all.Events such as a beer tasting evening anda fishing trip to Kaikora were also held butthe highlight of the social calendar wasthe Branch’s 50th Anniversary Dinner. In1959 the South Island Branch was formedand Robertson Stewart was elected thefirst President. In September 2009 theBranch celebrated 50 years of successwith an Anniversary Dinner held at the regalMona Vale Homestead. A large number ofBranch Members, Life Members, and PastPresidents attended and our guest speakerMr Tom Thomson re-counted many fond andfunny memories from the past. Mr Thomsonalso highlighted the need to bring youngpeople into the PNZ network to ensure itsongoing success. This was a very enjoyableevent with many people who have left theindustry in attendance.The Branch bestowed a life membershipupon Murray Knight at the AGM dinner.Murray has been in the industry for 30 yearsand has been on the South Island committeesince 1989. A very worthy recipient.A challenge faced by our Branch this yearhas been finding ways to utilise the PlasticsCentre at CPIT. The economic environmenthas meant that companies are not taking onstaff and are reducing training expenditure.As a result we have not been able to usethis excellent facility in the way in the waywe would like. With an eye for the futurethe Branch has invested in the INZONEcareers modules with the aim of attractingschool leavers into our industry. This willsee a Plastics Industry careers video on theINZONE careers kiosks in 25 Schools in theSouth Island.I would like to thank the committee for theeffort this year and to acknowledge thebusinesses that allow them to participate:Denise Chapman(Immediate Past President) ConsultantJohn Lovett(Vice President) Talbot Plastics LtdRobert Fowler(Junior Vice President) Comspec LTDAndrew Stewart General Cables NZ LtdWarren Jones Chemiplas LTDMurray Knight Polymers International LtdPaul Wilson RX Plastics LtdGraeme Rickard Plastech Industries LtdAziz Nabi Viscount Plastics LTDSteffan Jacques C.P.I.TDennise Chapman our Immediate PastPresident is also involved at the NationalExecutive level as Chairman of theEnvironmental Committee.I would like to acknowledge the effortsof Mike Murphy who stepped down fromthe committee this year. Mike has heldpositions at both the Branch and NationalExecutive levels.Finally on behalf of the South Island BranchCommittee I would like to thank the Teamsat PNZ, PamPITO and CPIT the efforts andassistance throughout the year nCORPORATE ACTIVITYANNUAL REPORT 2010IPLASTICS NEW ZEALAND13

Sector ReportsEPS SECTORMark Maiden(Koolfoam Industries)Group ActivityThe Group held three meetings this year withvarious topics and projects discussed.Promotional ActivityIn 2008 it was decided that the Group wouldformulate a letter to all territorial authorities.This letter was to inform the Building ControlOfficers that all members of the EPS SectorGroup produce Expanded Polystyrene thatcomplies with the relevant standards andthe New Zealand Building Code. Howeverafter feedback on the initial draft it wasdecided by the Group that such a letterwould be ineffectual and that each individualmanufacturer would be better to provideproof of compliance as necessary.Insulation Standards and theEECA Insulation SchemeNZS 4218 was re written and published thisyear to bring it in line with the H1 documentof the building code which now requires agreater level of thermal insulation in our newresidential buildings.The EECA home insulation scheme wasexpanded by the Government this yearand is beneficial for all insulating materialsincluding EPS.ProjectsThere are currently no projects underwayhowever in 2010 the Group has anopportunity to become involved in a projectthat involves EPS with BRANZ.AMEPSThe Asian Manufacturers of EPS metin Melbourne in November 09. OurRepresentative Ken Rowley, myself andTerry Mischefski attended the meeting. Manyof the member countries from Asia haveextensive recycling centres and recover allEPS waste.The recycling of EPS has been very successfulin many of the member countries for exampleKorea has had all government restrictions onthe production of EPS packaging removedas a result of their recycling programme.Future DirectionOver the last two years there has beena consolidation of some EPS producercompanies which effectively has lead to lessindividual Members.However after some discussion in the Groupit is clear that the direction and forum thegroup provides is still relevant to all involved.RetirementThis year saw the retirement of Tony Georgeand Paul Mason from Intermex Plastics andon behalf of the Group I would like to extendour thanks for their contribution to the EPSgroup over the years.AdministrationThe Group extends its thanks to Robin Martinand the Executive of Plastics New Zealandfor the assistance over the past year nITATDavid CarruthersManaging DirectorITAT2009 has been a strong year for ITAT with anumber of critical milestones achieved.We tripled our training volume in 2009, withmost customers receiving 100% TEC fundedtraining. This strong relationship with TEChas continued, with similar funding availablein 2010 for the continuation of training.The threefold increase in training activity hasproduced a strong profit in 2009, along withstrong cashflow.The “Working Capital” advance from PNZhas been fully repaid and ITAT enters 2010with the potential to provide a good cashflowstream back to PNZ coffers.Competitive Manufacturing has been by farthe most popular training programme withthe majority of our customers choosingthis during 2009. Companies are alreadyreporting benefits gained from their traineeslearning and applying the disciplines ofCompetitive Manufacturing.Prospects look good for 2010, with plenty ofactivity for products/markets in:- competitive manufacturing- distance learning- plastics processing skills- 4098 courses- First Line Management- OSHAnyone interested in finding out more aboutfully funded ITAT in-house training whichcaters to your specific needs, need only callDavid Carruthers on 09 271 0597, or emaildavid@itat.co.nz nANNUAL REPORT 2010I14PLASTICS NEW ZEALANDCORPORATE ACTIVITY

Plastics Centre of ExcellenceLen HarveyChief Executive OfficerPlastics Centreof ExcellenceLike many New Zealand businesses inthe Industrial and Manufacturing area,we have had a full year of challenges andopportunities. As the year progressed wesaw evidence of belt-tightening reflectedin our Contract work. However, despitethat, PCoE has had a successful yearin expanding its reach across a widesegment of the New Zealand PlasticsIndustry. We carried out a range ofanalytical work; meetings with clients onprocessing issues and polymer selectionthat covered a number of different marketsegments. As our Industry reach grows,there are gaps appearing on our abilityto provide the full range of service. Thiswill need to be addressed in 2010. Itwas disappointing that the Industry didnot use a period of economic downturnto discuss their research needs goingforward given that our facility can be usedas an extension to a company ‘s productdevelopment programme.On the two major research fundedprogrammes we are currently carrying out forPlastics New Zealand, we have applied foran IP on the development work completedto date with the PLA programmne and asuccessful conversion into an end product.The next step is for the Industry Partners tocommence the commercialization phase.The second research programme to finda PVC replacement is progressing welland we are now at a stage of developingthe product characteristics needed tomeet the defined spectrum of the end-useperformance goals.In July we hosted the Prime Minister JohnKey at the Centre. His visit coincided with thelaunch of the Plastics Industry DegradablePlastics Guide. Also in the same month aluncheon was held and was well attendedby the Plastics Pioneers Group.In November we celebrated our 1st YearBirthday with a visit by the Hon. WayneMapp, Minister for Science and Technology.At the same time we opened the Centre tothe public to view a travelling worldwideexhibition of Italian designed rotationalmoulding items along with a two-daySeminar run by the Association of RotationalMoulders (ARMA).Prior to the visit by Wayne Mapp, meetingshad been held with him to ensure ourresearch needs are met in the currentGovernment review of Research for Industryfunding.Future OutlookAs the Centre provides access to Industry andacademic specialists capable of providingeducation and training in 2010, we will seethe commencement of a PostgraduateCertificate in Engineering (Plastics). Thisprogramme will also be open to personnelwho have not completed a Bachelor ofEngineering or equivalent qualification.Operational Income in what are the start-upyears of the Centre’s history is proving to bea challenge and in 2010 will see the PCoEbecoming more aligned to the strategicdirection and culture of the University.It is up to the total Plastics Industry tochallenge, support and participate in thePCoE development. Failure to do so willmean that this vital avenue to grow anddevelop the New Zealand economy will belost. At present there is indication that thisCentre will become part of academia.There is some $4.2 million of CapitalFunds remaining under the PartnershipAgreement for the expansion of the Centrethat can be used to purchase additionalresearch equipment. Discussion with theGovernment and the Funding bodies hasconfirmed, that future funded Industryresearch programmes have to clearlydemonstrate and achieve a commercialoutcome. This is good news for the totalPlastics Industry, especially for those thatoperate at the coalface and are in directcontact with the brand owners. Also thispolicy change fits well into the currentoperational model of the PCoE.The challenge going forward is to haveIndustry lead and drive funded researchprogrammes through the Plastics Centre ofExcellence. If this is not forthcoming earlyin 2010, this at present easy access to anavenue to growth, will be lost.For more information contact Len Harvey,Director, Plastics Centre of Excellence, email:l.harvey@auckland.ac.nz nANNUAL REPORT 2010I16PLASTICS NEW ZEALANDCORPORATE ACTIVITY

Environmental ReportThis will be my last report as EnvironmentalChair for Plastics New Zealand. John Mckeewill be taking on the role next year. Johnhas been on the Environment Committeefor a number of years and I believe will doan excellent job for the industry.I would like to take this opportunity to thankall the committee members (listed below),and their companies, who have given oftheir time and expertise voluntarilyEnvironment CommitteeDennise ChapmanTerry MischefskiDeryk MasonDr Peter PlimmerMorris WatsonJohn McKeeRachelle LynchDarren McClenaghanKen JohnsRobin MartinSimon WilkinsonKelly Buchanan-JohnsAdriana SchekotovaChairPresident, PNZHuhtamakiConsultantPremier PlasticsMarleyChemiplasSealed AirAstron PlasticsPNZPNZPNZPNZDennise ChapmanChairmanEnvironment CommitteeI would also like to thank the PNZ team anda very special thanks to Dr Peter Plimmerwho has made an invaluable contribution toour activities.There have been insufficient funds toemploy an Environmental Manager after KetBradshaw left and the committee has takenon the extra workload. The funding situationunfortunately does not look like improvingover the short term. I firmly believe thatthe industry needs a specialist dedicatedenvironmental manager in order to keep usat the forefront of government legislation, ontop of media and public issues and to movethe Industry forward in the areas of energyconservation, and product stewardship.I challenge Industry (Members and NonMembers) to acknowledge the importanceof environmental issues in the success oftheir businesses and to work with PNZ tofind funding options.We have continued to work through our 2year strategic plan set in 2008. However,with the reduced staff and funding situationwe have had to cut back on the media andcommunication goals. We have still achieveda great deal in 2009 and I am delighted tocover these below.BiopolymersOn July 2nd Prime Minister, the HonJohn Key launched the DegradablePlastics Guide; Managing the Transition,Degradable Plastics in New Zealand,a Guide and industry Commitment,at the Plastics Center of Excellence.This was the culmination of three yearsof work and a great example of industrycooperation and self regulation managedby PNZ. My sincere thanks go to theDegradables Working Group Members fortheir dedication and commitment.Since the launch of the guide we have runa workshop at the Wasteminz conferencein Christchurch and have been liaising withthe Commerce Commission on issuessurrounding degradable plastics. We hope tohave a ruling from the Commerce Commissionbefore the end of this year which will helpus to set our direction for the degradablesreference group for the next year.We have had a large number of enquiriesfrom the public, local councils andbusinesses on degradable plastics and theguide has been a valuable asset. We havealso met with retailers, manufacturers andcouncils to discuss these issues with verypositive feedback.The Guide is available to download off thePNZ website; http://www.plastics.org.nz/_attachments/docs/pnz-degradables-guidesigned.pdfANNUAL REPORT 2010 PLASTICS NEW ZEALANDI18ENVIRONMENTAL ACTIVITY

Media andCommunicationsThere has been a lot of attention on plasticsin the media this year, with articles onBPA in babies’ bottles, microwaving ofplastics, phthalates and plastic supermarketbags. Many of these have been based onmisinformation and emotive statements. Thecommittee has responded to all the articleswhich it has been aware of and has hadincreasing success at getting our responsesprinted and acknowledged. We have limitedresources and have decided to use a seriesof ‘fact sheets’ which state the known factson each topic with references. These arenow all available on our website for anyoneto use: www.plastics.org.nz/page.asp?section=news+%26+infoThere has beena lot of attentionon plastics thisyear...many articlesbased onmisinformation...Packaging Accord, MassBalance and RecyclingSurveyOn 17th November the Packaging AccordGoverning Board released the final progressreport on the 5 year agreement.The report shows that the recycling targetsset for each packaging material have beenmet or exceeded. Tony Nowell, Chair of theGoverning Board, said:“This is an impressive result given the impactof the recession on commodity pricesparticularly for paper, steel and plastics. Lastyear packaging recovery fell back slightly to58% across all materials however this is inthe context that:• New Zealand packaging productionincreased overall by 1.8%;• Consumption increased by 4% overallwith the exception of steel which hasdeclined;• Recovery increased by 2% with allsectors reporting increased tonnagesexcept for paper; and• Collection of steel, aluminium andplastics has increased with theintroduction of the Auckland MaterialsRecovery Facility.“Trading conditions are tougher than ever.Achieving the targets set during a moreprosperous global economy in 2004 hasrequired an enormous effort by all parties.Since 2004 the total quantity of packagingrecycled increased by 26%, whereasconsumption of packaging increased ata slower pace by 14%. On a per capitabasis the quantity recycled by every NewZealander increased by from 83kg to100kg. In total, New Zealanders would fillabout 22,000 shipping containers with theirrecycling each year.”“Under the voluntary Packaging Accord, NewZealand has achieved a recycling rate whichis on a par with countries such as Sweden,Denmark, UK, Germany and Australia.”From a purely Plastics perspective;24% of plasticpackaging is nowrecycled, exceedingthe Accord target,with post industrialplastic wasterecycling at 99%New Zealanders collected 36,918 tonnes ofplastic packaging, equivalent to 922 million2 litre plastic bottles. This is an increaseof 8914 tonnes and a 32% improvementsince the start of the Accord delivering arecycling rate which is comparable withother countries.Plastic manufacturers sent less than 1% oftheir total plastic waste to landfill. Over 99%of plastic waste was recycled.Plastics New Zealand has collated recyclingdata for 17 years and used an independentconsultant to prepare the final Year 5 survey.Consumption increased by 4.6% (or 6,765tonnes) and the amount of recovered plasticsincreased by 9.3% (or 3,148 tonnes).ENVIRONMENTAL ACTIVITYANNUAL REPORT 2010IPLASTICS NEW ZEALAND19

PolypropylenePolystyrenesoftens at 70°C75°Csolvent weldedscratches easilyversatilesolventsand geo-textilesmilk cratesslip sheetstraysplastic timberplastic timberCurrent and Projected Consumption andRecycling of Plastic Packaging in NZYearConsumedRecoveredRecyclingProportion2000 117,475 20,809 182001 128,985 23,758 182002 123,485 23,305 192003 125,955 23,816 192004 137,909 28,004 202005 145,650 31,310 212006 156,359 34,891 222007 147,616 33,770 232008 153, 825 36,918 24For the full sector report and mass balancefigures please go to: www.plastics.org.nz/page.asp?id=500The Environment Committee is workingclosely with the Packaging Council todevelop a replacement scheme for theAccord. This is most likely to be in the formof an Industry led voluntary umbrella productstewardship scheme for packaging with theflexibility to incorporate individual sectoror product specific stewardship schemeswithin its boundaries.PublicationsPlastics Identification Code;This year we printed a revised version of thison recyclable Polypropylene sheet. Theseare available from PNZ or you can downloadit off the website: www.plastics.org.nz/page.asp?id=681This document is printed on polypropylene, code number 5. It can be recycled.SYMBOL TYPE OF PLASTIC PROPERTIES COMMON USES RECYCLED IN PACKAGING NON PACKAGINGPETPolyethylene TerephthalateHDPEClear, tough, solvent resistant,ba rier to gas and moisture,Hard to semi-flexible, resistantto chemicals and moisture, waxyHigh Density Polyethylenesurface, opaque, softens at135°C, easily coloured,processed and formedStrong, tough, can be clear, canbe solvent welded, softens atUnplasticised Polyvinyl Chloride PVC-UPlasticised Polyvinyl Chloride PVC-PFlexible, clear, elastic, can bePVCLDPELLDPEPPLow density PolyethyleneLinear low density PolyethylenePSEPSExpanded PolystyreneOTHERSoft, flexible, waxy surface,translucent, softens at 80°C,Hard but sti l flexible, waxysurface, softens at 145°C,translucent, withstands solvents,Clear, glassy, rigid, bri tle,opaque, semi-tough, softensat 95°C. A fected by fats andFoamed, light weight, energyabsorbing, heat insulatingIncludes a l othe resins, multimaterials (e.g. laminates) andLe ters below indicate ISO code fordegradable plastics. Propertiesplastic type including SAN (styrene,dependent on plastic oracrylonitrile), ABS (Acrylonitrilecombination of plasticsbutadiene styrene), PC (polycarbonate),Nylon, degradable plastic e.g. PLASoft drink and water bo tles, saladdomes, biscui trays, salad dressing andpeanut bu ter containers, fleece clothingPi low and sleeping bag fi ling,clothing, soft drink bo tles, carpetCrinkly shopping bags, freezer bags, Recycling bins, compost bins,milk bo tles, ice cream containers, juice buckets, detergent containers,bo tles, shampoo, chemical and detergent posts, fencing, pipesbo tles, buckets, rigid agricultural pipe,Cosmetic containers, electrical conduit, Flooring, film and sheets, cables,plumbing pipes and fi tings, blister packs, speed bumps, packaging,wa l cladding, roof sheeting, bo tlesbinders, mud flaps and matsGarden hose, shoe soles, cablesheathing, blood bags and tubing, watchstraps, commercial cling wrapCling wrap, rubbish bags, squeeze Rubbish bin liners, pa let sheets,bo tles, black i rigation tube, black mulchfilm, rubbish bins, shrink wrapDip po tles and ice cream tubs, potatochip bags, straws, microwave dishes,ke tles, garden furniture, lunch boxes,blue packing tape, automotive partsPegs, bins, pipes, pa let sheets,oil funnels, car ba tery cases,CD cases, plastic cutlery, imitation ‘crystal Coat hangers, coasters, whiteglassware’, low cost bri tle toys, video ware components, stationerycases, water station cup, safety helmets trays and accessoriesFoamed polystyrene hot drink cups, Car parts, concrete aggregate,hamburger take-away clamshe ls, foamedmea trays, protective packaging forfragile items, insulation, insulation panelsPackaging, car parts, appliance parts,computers, electronics, water coolerbo tles, medical devices,Car parts, concrete aggregate,Design for the Environment Guidelines;We continue to use this document in theDDSP courses and now have it availablein CD format. We have started updatingthe environmental content of the DDSPand the Guideline document will also beupdated in 2010. www.plastics.org.nz/page.asp?id=725Managing the TransitionDegradable Plastics in New Zealand AGuide and Industry Commitment;Available in CD format or from the website.This is a living document and will beupdated as required. www.plastics.org.nz/page.asp?id=531Iconic Kiwi Plastic ProductsAvailable from PNZ or from our website:www.plastics.org.nz/page.asp?id=749Waste Minimisation ActThe criteria for the Waste Minimisation fundhas been released and we will be looking atapplying for funding for educational projectsthat promote waste minimisation activities.Boatie BagsLast year we distributed 63,000 of these toboating clubs around the country and wehave begun another round this year. Thisis a self funding activity with sponsorshipfrom Elldex, Clariant, TCL Hunt andTop Catch. Thanks to Morris Watson forrunning this campaign.For further details or to place an order email:info@plastics.org.nzBest Practice EnergyProgrammeSimon Wilkinson, Best Practice Energycoordinator continues to successfully runthis programme. We have obtained fundingthrough to the end of 2010 and haveinstigated a new auditing programme forsmall businesses which has proven to bea winner. For full details on this please seeSimons report on the following pages.In conclusion I would like to assure you, ourMembers that our environmental portfolio isdesigned to reflect the changing economicclimate and the move towards sustainabilityand product stewardship as tools forbusiness growth and competitiveness. Wewelcome your support and feedback nbest practice programmeANNUAL REPORT 2010 PLASTICS NEW ZEALANDI20ENVIRONMENTAL ACTIVITY

Best Practice Energy ProgrammeSimon WilkinsonBest Practice ProgrammeCoordinatorPlastics New Zealand2009 has been a challenging year, helpingcompanies with serious capital expenditureconstraints to improve efficiency and drivedown energy costs.It was motivating to hear business guruGraham Foster at the Annual Conferencestate that the number one tactic for improvingthe bottom line in tough trading times isto reduce costs. Reducing costs such asenergy, delivers greater improvements to thebottom line than increasing turnover.Energy typically represents the fourth largestcost to plastics manufacturers, after labour,raw materials and rent/rates. It is also one ofthe easiest costs to reduce.We have now been running the Best PracticeEnergy Programme for 3 years. In that timewe have completed energy audits at 27manufacturing sites. These 27 sites havea combined energy use of 80.9 gigawatthours (GWh) costing the companies atotal of $8.7 million per annum. The BestPractice Energy programme audits haveidentified potential energy savings of 8.9GWh (11%) and potential financial savingsof $1.2 million (13%).Energy audits conducted through PlasticsNew Zealand are 50% subsidised. EECAhas recently announced that energy auditsfor companies in New Zealand will onlybe subsidised by 35% due to a shortfallin funding in 2009/10. The higher levelof subsidy available to PNZ Membershighlights the benefits of running anenergy efficiency programme through yourIndustry Association.This year we have also started providingan affordable energy audit to Plastics NewZealand Members with an energy spendless than $100,000 p.a. For just $500companies receive a brief site audit andreport. The results have been spectacular.The audits have found the 6 companies anaverage of $7,000 worth of energy savings.Many of these savings have instant paybackor less than 12 month paybackAudits Completed: 27 kWh $Total Annual Energy Use 80,901,468 $8,728,766Total Savings Identified 8,924,294 $1,158,265Average % Savings 12% 14%Savings with less than 12 months payback 4,527,122 $729,345Savings implemented to-date 2,957,482 $447,370Actual carbon emissions reduction 1,534 tonnesAnnualenergyspendAnnualSavingsFound% ofannualenergyspendZero costsavingsSavings thatpayback inless than12 monthsCompany 1 $32,030 $7,716 24.1% $4,679 $4,761Company 2 $83,888 $8,519 10.2% $1,055 $3,991Company 3 $90,525 $9,538 10.5% $9,404 $9,538Company 4 $30,188 $2,172 7.2% $1,130 $2,172Company 5 $49,085 $11,887 24.2% $869 $10,000Company 6 $66,677 $858 1.3% $0 $518As well as delivering high quality energyaudits, we have been working on thefollowing components of the programme:• Energy Efficiency TrainingWhen we deliver the findings of theenergy audits we have been runninga 2 hour technical training session tohelp staff better understand the ongoingenergy efficiency opportunities in aplastics manufacturing plant. Thesesessions have been well received andhelp motivate staff to make changesfollowing their energy audits.• Development of Training UnitStandards PAMPITO and Plastics NewZealand have been scoping out thepotential to integrate energy efficiencyinto the industry training framework.• Technology Transfer SeminarsSam Fairley of Energy NZ attended NPEin Chicago on behalf of the PlasticsIndustry to look at new technologiesemerging for energy efficiency in theIndustry. Sam reported his findingsat seminars in Auckland, Waikato,Wellington and Christchurch. A total of73 people from the industry attendedthese seminars to learn about new andemerging technologies. Feedback onthe seminars was positive and generateda lot of interest. Funding is availableto send someone to K-Fair in 2010,so watch for more seminars afterNovember 2010.Finally, some information that may be ofinterest:13.16¢ The average electricity pricepaid per kWh by the 27 audited plasticsmanufacturers10.55 – 18.35¢ The range ofelectricity prices paid per kWh by the 27audited plastics manufacturers2.88 kWh/kg The average energyuse index for 9 audited NZ injectionmoulders3.12 kWh/kg The average energyuse index for European injection mouldersThere are benchmark energy use figures forother plastics processes. Try benchmarkingyour energy use and costs using the freeand confidential Plastics New ZealandBenchmarking Tool at http://benchmark.plastics.org.nz/If you are interested in more informationabout any part of this programme, or youwould like an energy audit of your siteplease contact Simon Wilkinson, BestPractice Programme Coordinator on 021944992 or email simon@plastics.org.nz.There is also information on the resultsof the programme on the Plastics NewZealand website nENVIRONMENTAL ACTIVITYANNUAL REPORT 2010IPLASTICS NEW ZEALAND21

Life Members* H C URLWIN AND H.L LEWISAt the Annual meeting held in Wellington on the 4th November 1964. J.B (Brian) Williamson, National President.* J D M FOREMANAt the Bi-Annual meeting held at Wairakei on 5th May 1969. J.H (Harry) Hobin, National President.* R FAULCONBRIDGEAt the Annual meeting held in Wellington on the 10th November 1971. A.O (Hap) Hawkins, National President.* J N HOBINAt the Bi-Annual meeting held at Waitangi on the 1st May 1972. W.R (Wal) Raine, National President.* H G CALVERTAt the Annual meeting held in Wellington on the 1st November 1972. W.R (Wal) Raine, National President.* J J QUINNAt the Bi-Annual meeting held in Wairakei on the 28th April 1975. B. (Barry) Blackshaw, National President.* W R RAINE (FPRI)At the Annual meeting held in Auckland on the 1st November 1978. R.A (Rob) Poffley, National President.* M S CALVERTAt the Annual meeting held in Queenstown on 24th April 1989. R.I (Rob) Mouncey, National President.* J W F FOREMANAt the Annual meeting held in Rotorua on 28th April 1990. S.E (Steve) Wilson, National President.* A O HAWKINSAt the Annual meeting held in Wellington on 22nd April 1994. J. (John) Tucker, National President.* R J CAVEAt the Annual meeting held in Wellington on 22nd April 1994. J. (John) Tucker, National President.* SIR ROBERTSON STEWARTAt the Annual meeting held in Auckland on 16th May 1996. C. (Cam) Moore, National President.* J H (HARRY) HOBINAt the Annual meeting held in Auckland on 16th May 1996. C. (Cam) Moore, National President.* K J (JOHN) TUCKERAt the Annual meeting held in Queenstown on 14th May 1998. L (Laurie) Cranfield, National President.* I D (IAN) RISTROMAt the Annual meeting held in Queenstown on 14th May 1998. L (Laurie) Cranfield, National President* C J (COLIN) McGOWANAt the Biennial Awards dinner held in Auckland on 11th October 2000. G. (Geoff) Bickerton National President.* C C (CAM) MOOREAt the formal dinner held at the 2001 Conference at the Millennium Hotel, Queenstown, on 17th May 2001.G (Geoff) Bickerton President.* J F (JOHN) RICHARDSONAt the formal dinner held at the 2001 Conference at the Millennium Hotel, Queenstown, on 17th May 2001.G (Geoff) Bickerton President.* M E (MORRIS) WATSONAt the formal dinner held at the 2002 conference at the Wairakei Resort, Taupo, on 23rd May 2002.G (Geoff) Bickerton President.* W F (WARREN) WILSONAt the formal dinner held at the 2003 conference, Wellington on 8th May 2003. G. (Graeme) Allan President.* G (GEOFF) BICKERTONAt the formal dinner held at the 2004 conference, Queenstown on 8th May 2004. G. (Graeme) Allan President* R (Roger) BowlerAt the formal dinner held at the 2004 conference, Queenstown on 8th May 2004. G. (Graeme) Allan President* G (Graeme) AllanAt the formal dinner held at the 2005 conference, Rotorua on 21st May 2005. S. (Steve) Wilson National President* L (Laurie) CranfieldAt the formal dinner held at the 2005 conference, Rotorua on 21st May 2005. S (Steve) Wilson National President* T (Tom) ThomsonAt the formal dinner held at the 2006 conference, Queenstown on 13th May 2006. S (Steve) Wilson National President* S (Steve) WilsonAt the formal dinner held at the 2007 conference, Nelson on 12th May 2007. D (David) Brittain National President* S (Steve) HarbershonAt the formal dinner held at the 2008 conference, Paihia on 17th May 2008. D (David) Brittain National President* D (David) BrittainAt the 2009 Conference & Auckland Branch 50th Jubilee Dinner, Auckland on 19 June 2009. T. (Terry) Mischefski National PresidentCORPORATE ACTIVITYANNUAL REPORT 2010IPLASTICS NEW ZEALAND23

Plastics New ZealandP O Box 76 378Manukau CityNew ZealandPhone: 64 9 255 5662Fax: 64 9 255 5663info@plastics.org.nzTrade: www.plasticsnz.comInformation: www.plastics.org.nzKey Contacts:Robin MartinChief Executive Officer09 266 6552 ext 102robin@plastics.org.nzKelly Buchanan-JohnsMembership Services Manager09 266 6552 ext 103kelly@plastics.org.nzLorna LandonAdministrator09 266 6552 ext 101lorna@plastics.org.nzSimon WilkinsonBest Practice Facilitator09 266 6552 ext 114simon@plastics.org.nz