Jan/Feb 2018

By February 12, 2018Uncategorized


Several IPANA members have committed to exhibit at the inaugural Industrial Pack in Atlanta, Georgia on April 4 and 5. Industrial Pack is the only free event in the US that focuses on industrial, transit and protective packaging. The event will feature conference sessions, an awards program and live on-site testing. Mr. Kyle Stavig, Chairman of IPANA, has accepted an invitation to deliver the keynote address at the opening conference session on April 4 where he will highlight the State of the Nation and address challenges and opportunities our industry will face in the next five years. You can click here to view who is exhibiting as well as register to attend.

SCHÜTZ has signed a purchase agreement for 100 per cent of the shares of Envases y Laminados, S. A. de C. V. (ELSA). Closing is expected to take place in early 2018, subject to the approval of the Mexican antitrust commission. The company has been co-operating with SCHÜTZ under license agreements for the manufacturing and sale of SCHÜTZ IBCs and plastic drums for almost 20 years. “We are excited about this unique opportunity to be present in Mexico with a fully owned subsidiary”, stated Roland Strassburger, CEO of the SCHÜTZ Group. “ELSA is well established and Mexico offers interesting growth perspectives for our industry as our customers perceive Mexico to be an integral part of the NAFTA region.”

Greif recently announced they plan to deploy 3,000 new branded trailers to serve its customers throughout North America. “This multi-million dollar investment is an expression of our commitment to be industrial packaging’s best performing customer service company in the world,” explained Adam Galliers, Senior Manager Logistics & Supply Chain for Greif. “These new trailers will provide our customers additional assurance their valued packaging will be protected from contamination and reduce the risk of damage during transit.” The process for replacing the older trailers will take approximately six months.

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Regulatory Updates

From November 27 to December 6, 2017, the United Nations Sub-Committee of Experts on the Transport of Dangerous Goods (SCETDG) held its 52nd session in Geneva, Switzerland. This was the second session of the new biennium. Changes to the UN Model Regulations (UNMR), agreed to at all four sessions of this biennium, will form the basis for amendments included in the 21st revised edition of the UNMR which would be expected to be implemented in the DOT Hazardous Materials Regulations effective 1 January 2021. This meeting was attended by Frits Wybenga and Ronce Almond. Major issues affecting packaging, and specifically IBCs, included multiple marking of packagings, marking of IBCs that have undergone routine maintenance, and cold temperature conditioning of plastic packagings. You can view the full report written by Mr. Wybenga here.

The Trump administration has claimed that federal agencies beat the goal he set when he took office to cut two federal rules for every new rule proposed along with no increase in regulatory costs. According to the semi-annual Unified Regulatory and Deregulatory Agenda published by the White House Office of Management and Budget (OMB), the administration withdrew or delayed 1579 planned regulatory actions in 2017. President Trump said the never-ending growth of red tape has come to a “sudden, screeching and beautiful halt.” In a press release, the White House and GOP cite an article written by Roncevert Almond, Marina O’Brien, and Andy Orr, entitled, “Regulatory Reform In The Trump Era – The First 100 Days,“ (Yale Journal On Regulation ) in support of their first year accomplishment. Click here to view the GOP briefing. The administration also announced plans for more deregulation in 2018 aiming for a “3 for 1” reduction. Trump’s goal is to reduce the Federal Regulatory code from the over 185,000 pages it is today to the 20,000 pages it was in 1960 while still protecting the health and safety of workers.

On Jan. 2, the Occupational Safety and Health Administration (OSHA) adjusted the civil penalty fees for violations of workplace safety and health standards. The penalties were increased by two percent over 2017. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, requires the Department of Labor to adjust penalties for inflation each year. New penalties for willful and repeat violations are $129,336 per violation; serious, other-than-serious, and posting requirements are $12,934 per violation; and failure to correct violations is $12,934 for each day the condition continues.

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China is no longer accepting imports of used plastic and paper according to Mark Lashier, CEO of Chevron Phillips Chemical. “If you pull recycled plastic out, that market demand is going to increase.” This action is expected to create a market opportunity for US plastics producers. China accounted for 51% of the worlds scrap imports in 2017 according the Institute of Scrap Recycling Industries (ISRI) with the bulk coming from the United States. With China’s focus on reducing scrap imports, a market opportunity exists for new resin shipments as a replacement. To read more click here.

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People, Places & Things

Ken Roessler has been named CEO of SCI Packaging, which now oversees the combined operations of Mauser and BWAY. Meanwhile, Peter Schaefer has stepped down as CEO of Mauser, although he will continue to serve on the SCI Board of Directors. “Ken has successfully led and expanded BWAY for the past 15 years and we continue to believe his deep knowledge of the business, reputation in the debt and equity markets and his proven record for delivering results make him the ideal person to lead the consolidated company going forward,” Mauser says.

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