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NPE2018 Show Daily - Tuesday

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TUESDAY NPE 2018 : THE PLASTICS SHOW SHOW DAILY B U L K M AT E R I A L H A N D L I N G S Y S T E M S E N S I G N E Q.C O M l 61 6. 7 3 8 .9 0 0 0 l SA L E S @ E N S I G N E Q.C O M Booth W8780 Mega-Trends, conঞnued from page 6 flexible barrier packaging a reality, and Nova says it's seeing the development of new types of pouch fitments to further support new flexible applicaঞons. "We're also seeing new legislaঞon drive innovaঞon to allow for tethered caps and closures to ensure that they enter the recycle stream properly," Kay says. Another example is the conঞnued switch in beverage caps and closures from two-piece to one-piece construcঞon, improv- ing manufacturing efficiency and closure re- cyclability. E-commerce: "We are working with film producers, package makers, and brand own- ers to develop food packaging with the dura- bility (sঞffness/toughness balance) and other properঞes that are required for the rigors of the e-commerce supply chain," Kay says. "We have an exhibit here with informaঞon about the supply chain requirements, and the work we're doing in the value chain to help improve packaging for this fast-growing segment." The consumer of today is very different than the consumer of 20 years ago, according to Nova. "The younger generaঞon's typical lifestyle is busier and busier, and at the same ঞme, they're looking for healthier opঞons, which o[en require performance packaging," Kay explains. "Everyone is on the go and these buyers want the products they con- sume to be delivered quickly, consumed easi- ly, and disposed of efficiently." E-commerce is a game-changing example of the convenience trend, and its efficiencies coupled with the ease of comparison shop- ping are also driving down prices in many sectors. As Business Insider reports, E-com- merce is driving virtually all retail growth, and its impact on flexible packaging will grow with it. According to the Food Markeঞng In- sঞtute, the online grocery market alone may reach $100 billion by 2022. BeŽer perform- ing flexible packaging soluঞons, especially seal integrity and abuse resistance so prod- ucts arrive at the consumer's door intact, will be a must to support the more rigorous e-commerce supply chain. Rigid industrial packaging like drums and intermediate bulk containers (IBCs) may be uঞlized to ship goods in bulk to online sellers, who will then repackage the goods into smaller packages for customer orders. Computer Modeling/Applicaঞon Devel- opment: Nova Chemicals points out that modeling technologies are a powerful tool to speed the product development cycle and reduce both cost and material usage in the process. "We are demonstraঞng our propri- etary Bonfire tool for modeling flexible film structures online and our customized caps computer modeling tool in our suite," Kay notes. Nova is also highlighঞng its Centre for Performance Applicaঞons, which opened in 2016 a[er an expansion. "We help custom- ers develop new products and applicaঞons at this facility in Calgary that offers blown and cast film producঞon capabiliঞes, a range of rigid and flexible converঞng equipment, and laboratory test capabiliঞes, all under one roof," Kay says. "One of the biggest challenges we see moving forward is the ability to innovate at the rate required to keep up with rapidly evolving business models and market de- mands," Kay says. "However, there are many technologies on the market including 3D prinঞng, fluid dynamics, and computer-aided modeling that enable rapid prototyping to help shorten product development ঞmelines." Kay notes that success can only come if the enঞre supply chain collaborates with an- swers for all of the mega trends. "If a material supplier focuses only on consumer conve- nience packaging challenges, then quite likely key design decisions like lightweighঞng, recy- clability and packaging line speeds and effi- ciencies get lost in the equaঞon," Kay says. Nova is also emphasizing recent expan- sions, acquisiঞons and joint ventures, includ- ing: the PE1 plant expansion where approxi- mately 1 billion lb of butene LLDPE resin started up in December 2016; acquisiঞon of a Geismar, Louisiana ethylene plant from Wil- liams Partners in 2017; the AST2 plant build with addiঞonal capacity of octene LLDPE in Sarnia, Ontario; and the Novealis joint ven- ture with Total Petrochemicals, including a new ethane cracker in Port Arthur, Texas; new PE unit in Bayport, Texas, as well as the exist- ing Total PE unit in Bayport, with start-up expected in late 2020. supplier administraঞon and supplier-inclusion efforts. Midway through Walmart's 10-year com- mitment to source $250 billion in U.S.-made products, Marsiglio said the giant retailer was "90% of where we thought we'd be five years ago." She adds, "About two-thirds of what we sell is made domesঞcally, but there's more to do. And as a retailer, having domesঞcally sourced products allows us to be more re- sponsive to the customer. We're doing a lot of exciঞng things, and they are working. But hold us accountable." Marsiglio joined Walmart in 2007, a[er working for the Florida Chamber of Com- merce and serving as a Deputy Secretary for the State of Florida's Department of Manage- ment Services. She has more than 20 years of government, retail and manufacturing experi- ence, and is a graduate of Florida State University. She is acঞvely involved with Walmart's Women's Officer Caucus, the Pres- idents' Inclusion Council, WAL-PAC, and is an execuঞve board member of the Florida Retail Federaঞon. "Walmart has made a tremendous com- mitment to expand its U.S. product sourcing and that commitment is very exciঞng for U.S. plasঞcs manufacturers who are eager to con- ঞnue to invest in U.S. jobs and leverage the windfall of price-advantaged polyethylene being produced domesঞcally," says Nick Va- fiadis, v.p. of plasঞcs for IHS Markit. In addiঞon to Marsiglio's discussion of Walmart's merchandising strategy and U.S. sourcing, the industry briefing featured an in-depth look at the global economy presented by Perc Pineda, chief economist, PLASTICS. In addiঞon, Vafiadis and the team of IHS Markit plasঞcs experts provided an in-depth market outlook for the key plasঞcs including PE, PP, PET, and engineering resins. Willem Sundblad, CEO of Oden Technolo- gies, gave an update on the current Industry 4.0 technology, which now enables plasঞcs manufacturers to quickly and easily collect and analyze data from exisঞng machines and sensors, enabling them to monitor all valuable metrics, together, in real ঞme. He discussed the soluঞons that exist to help increase oper- aঞonal efficiency and value, and presented specific examples of how this technology can help processors improve producঞon, elimi- nate waste, and make beŽer products for their customers. Says Vafiadis, "The global PE industry, which is the world's most-used plasঞc, has experienced an unprecedented record run of prosperity. Global demand for PE has been robust and integrated margins have remained at elevated levels for several years, despite record new addiঞons of cost-compeঞঞve ca- pacity being added in North America and else- where. It is this robust demand growth, com- bined with producঞon constraints, that con- ঞnues to drive ঞght PE margins, but one of the quesঞons we explored during the briefing is how long this wave of prosperity will last." According to IHS Markit, global demand for PE in 2017 totaled more than 96 million m.t. (212 billion lb), with demand in 2018 expect- What IHS Markit's Nick Vafiadis finds so amazing is the rapid pace of change, in terms of PE demand growth. Walmart, conঞnued from page 1 ed to be 100 million m.t. (220 billion lb). By 2022, annual global PE de- mand is expected to reach 120 mil- lion m.t. (265 billion lb). What Vafiadis finds so amazing is the rapid pace of change in terms of PE de- mand growth. "In 1999, global de- mand for PE was 50 million m.t. (110 billion lb) per year and by 2017, de- mand exceeded 96 million m.t. (212 billion lb). That is an astounding rate of PE demand growth and China is the key driver of that growth. China accounts for about 60 percent of new global demand growth for plas- ঞcs resins such as PE." The rapid growth of online shop- ping trends, along with China's recy- cling ban on plasঞcs trash, are help- ing increase the demand for virgin PE material, Vafiadis says, but other in- fluencers are also playing a key role, which his team explored during the briefing. "The issue of sustainability is perhaps the most criঞcal influencer for the plasঞcs indus- try as a whole, both today and in the future. Many communiঞes across the globe are ex- ploring plasঞc bag bans, but marine waste is an issue that the industry must take a leader- ship role in addressing because the industry has learned it must be a cooperaঞve, mulঞ- organizaঞonal approach that brings all the stakeholders together to solve such a very complex problem," Vafiadis says. "Based on our discussions with industry leaders, that challenge is something they are commiŽed to addressing." 94 NPE.ORG A PRODUCT OF PLASTICS INDUSTRY ASSOCIATION

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