OEM Manufacturers React As China Begins Testing Electronics For Toxins.

Telephones and printers will be the first electronics products that will have to be tested to show compliance to China’s version of the Restriction of Hazardous Substances (RoHS) law.

China’s Ministry of Industry and Information Technology (MIIT) recently released its Key Administrative Catalog for the Pollution Control of Electronic Information Products (Batch 1). The long-awaited document says that all forms of printers and telephones, including mobile, traditional landline and networking handsets, will have to be tested before they can be sold in China once this phase of the law is formally adopted by the Chinese government. However, more types of equipment will likely be included in future catalog “batches,” says Michael Kirschner, president of Design Chain Associates, a San Francisco consultancy that advises OEMs about environmental issues.

China RoHS, like Europe’s RoHS, restricts the use of lead, mercury, cadmium, hexavalent chromium, traditional landline and networking handsets, will have to be tested before they can be sold in China once this phase of the law is formally adopted by the Chinese government. However, more types of equipment will likely be included in future catalog “batches,” says Michael Kirschner, president of Design Chain Associates, a San Francisco consultancy that advises OEMs about environmental issues. polybrominated biphenyls and polychlorinated ethers in electronics equipment. Phase 1 of China RoHS went into effect in 2007. However, at that time the only requirement was that OEMs label their products as being compliant to the law or not. The testing requirement is in phase 2 of the law, which included the release of the catalog.

The catalog release was supposed to occur in late 2007, says Gary Nevison, legislation and environmental affairs manager for electronics distributors Premier Farnell and Newark.

“But that slipped to mid 2008, then to mid 2009 and now two years on, here we are,” he says. “This is what the world was waiting for. In fact, the world got fed up waiting for it. But this is where China RoHS kicks into.”

While the law says products will have to be tested in China before they can be sold, details of the testing, including which test houses will be used, have not been released, says Nevison.

“China has said do not start testing until we tell you how to test, where to test and how to fill out the test forms,” says Kirschner at Design Chain Associates. “Presumably they are going to come out with some forms.”

Companies that sell electronics products in China can send comments about the law to MIIT during a “consultation” period that ended Nov. 9. After that, the Chinese government may approve the law and then the restrictions would go into effect 10 months after the approval.

The question is, will 10 months be enough for manufacturers to have their products tested and show compliance to the law? If they can’t show compliance in that timeframe, “the products cannot be sold in China,” Nevison says. “It will be interesting to see what happens.”

Indiana Electronic Recyclers Must Register With State By January 1st 2010.

Time is running out for Indiana’s electronic waste collectors and recyclers to enroll in a new program intended to reduce the amount of electronic waste that ends up in the state’s landfills.

Collectors and recyclers of obsolete electronics have until January  1st to enroll with the state’s E-Waste Program created by a law passed by the General Assembly this year.

The new law specifies that only collectors and recyclers enrolled in the program can work with electronics manufacturers who will soon be responsible for collecting and recycling the devices they sell in the state of Indiana.

Makers of computer monitors, laptops, and televisions must register with the state by April 1, 2010. If they fail to do so they won’t be allowed to sell their products in Indiana. This is a similar scenario with the controversial scenario in the state of New York, which is currently in litigation between the state and several electronic manufacturer trade groups.

Samsung Expects To Sell 200 Million Handsets In 2009. Company Has Sold 40 million Touchscreen Devices In 2009, Compared With 10 million A Year Ago.

Samsung Electronics, the world’s No. 2 mobile phone maker, gave an upbeat forecast for 2009 mobile phone sales due to sharp growth in touchscreen models, but surging sales may not guarantee higher margins.

Growing competition for market share could put Samsung under pressure to lower prices in the high-margin touchscreen phones, with iPhone‘s debut in the domestic market last week set to challenge Samsung and home-town rival LG Electronics.

“Touch phones taking a bigger portion of handset sales will not likely have a significant impact on profitability because makers eventually have to cut prices to appeal to the wider public,” said Hanwha Securities analyst Seo Do-won.

“What we have to set sight on is the smartphone market, in which Samsung is still weaker than Apple, RIM and Nokia (NOK1V.HE). Samsung has strengths in high-function and hardware sides, but is weak in software and services compared with rivals,” Seo said.

Samsung, which trails Finland’s Nokia, said on Monday it was on track to exceed its 2009 mobile phone sales target, with touchscreen models enjoying sharp growth.

It had previously said it aimed to sell more than 200 million phones this year, after selling slightly less than that figure in 2008.

The blockbuster iPhone of Apple made its debut in South Korea recently after local regulators cleared the final hurdle for its sales in a market that is home to 47 million mobile phone users.

With established strength in premium and feature phones, Samsung and LG have recently boosted their smartphone line-ups to compete with Apple and Blackberry maker Research In Motion samsung-sgh-i780-blackijack-2

Samsung said its global market share in handsets rose over 20 percent for the first time in the third quarter, with its telecom unit posting a profit margin of 10 percent in the third quarter, unchanged from the second quarter.

Research firm Gartner said this month global mobile phone salesthis year would be roughly on par with 2008 and grow 5-8 percent next year.

Samsung said in a statement handsets adopting full touchscreens would account for about 20 percent of its mobile phone sales this year. In 2008, such phones made up only 5 percent of Samsung’s total sales.

Samsung had sold around 40 million full touchscreen devices between January and November this year, compared with 10 million in 2008.

Feature-packed premium phones and smartphones with intuitive user interfaces have prompted a boom in touchscreen models that allow users to manipulate cellphones more easily.

“Samsung will continue to expand the global full touch phone market by introducing phones tailored to individual regions and user requirement with stylish designs, intuitive UIs and cutting edge features,” JK Shin, head of Samsung Electronics’ Mobile Communications Division, said in the statement.

Samsung Mobile Display, Samsung Electronics’ mobile screen venture, expects touchscreens to be adopted by about 50 percent of major portable devices — mobile phones, digital cameras, navigations and digital media players – sold in 2013.

By afternoon, shares of Samsung, also the world’s largest maker of memory chips and flat screen televisions, were up 2.3 percent, in line with the broader market’s 2.5 percent gain.

Linda McFarland Becomes Executive Vice President Of Business Development Of 5R Processors

 Paragon Green, a leader in the information technology (IT) asset recovery and e-waste recycling industry, announced today the appointment of Linda McFarland as executive vice president of business development for joint venture partner 5R Processors Ltd. (5R), based in Ladysmith, Wis. She will continue to serve as CEO of Paragon Green and president and CEO of Classic Computer Recovery, Inc. (CCR), which are both based in Garden City, Mich.

Paragon Green is a joint venture formed by McFarland, founder and owner of CCR, and Tom Drake, founder and CEO of 5R. Between CCR and 5R, the companies recycle an estimated 20 million pounds per year, and Paragon Green projects that it will collect and recycle more than 50 million pounds of materials in 2010.

McFarland is a visionary entrepreneur in IT asset recovery and the electronics recycling industry. She is known for being creatively passionate about diverting e-waste from curbside disposal by working to responsibly convert recoverable electronic equipment into re-marketable used products or component parts. Any equipment Paragon Green collects that does not have a resale value in the used market is safely dismantled and converted into commodities for reclaimed metals, plastic and other recyclable materials.

“With the global economic recession, IT departments are focusing on cost reduction as a leading priority in their budget planning,” McFarland said. “Reclaiming, refurbishing and remarketing IT equipment is an innovative and environmentally proactive approach for companies to offset IT budgets by converting used assets to cash.”

Paragon Green’s asset recycling program is a full circle, end-to-end market managed recycling solution that supports a zero e-waste environmental agenda.

“Paragon Green accepts all e-waste from the commercial markets, including what others consider non-value electronics, including monitors and televisions,” McFarland said. “We also do not ship unprocessed, hazardous e-scrap, such as lead-based glass found in monitors and televisions to other countries. Instead, our lead-based glass de-manufacturing solution, called glass-to-glass processing, is the only true, environmentally sound recycling process.”

In addition to e-waste, Paragon Green is a waste recycling resource for a broad range of goods including fluorescent lights, cardboard, plastic, rubber, and hazardous materials such as lead acid batteries. Paragon Green also takes an active role with schools and community governments by participating in collection events and pilot programs that encourage the community to recycle.

Paragon Green serves medium-sized companies and large corporations within the healthcare, education, government, hospitality, solid waste, e-waste and asset recovery industries, as well as school districts, government entities and solid waste agencies. It operates four plants with nine locations in six states, totaling 300,000 square feet of space, located in Michigan, Illinois, Georgia, Wisconsin and Tennessee.

California Integrated Waste Management Board Honors 250 Businesses That Reduce Waste Sent To Landfills

photo_lg_californiaThe California Integrated Waste Management Board on Monday honored more than 250 businesses and nonprofit organizations for efforts to reduce the amount of waste sent to landfills.

Winners in the state’s Waste Reduction Awards Program ranged from tech giants Hewlett-Packard Co, Intel Corp and NEC Electronics America Inc. Hewlett-Packard’s Roseville campus  now diverts 91 percent of its waste material, from recycling cardboard and paper products to reusing bubble wrap. NEC’s manufacturing plant, also in Roseville, last year diverted 82 percent of its solid waste, raising $430,625 in recycling revenue for the company.

Driven by aggressive state mandates, recycling has become a major industry in California. The sector employs 85,000 and produces $10 billion in goods and services annually, according to the waste board.

To make the list of recycling honorees, a company must demonstrate an annual improvement in its waste-reduction practices, according to Beatriz Sandoval, a spokeswoman for the Integrated Waste Management Board.

The agency has been publishing the list since 1993. Because of the breadth of industries represented, there are no set standards for qualifying, Sandoval said. Nearly every company submitting documentation to the agency wins an award.

Nokia Files Lawsuit Complaint Against 11 LCD Manufacturers In San Francisco Court. Alleges Price Fixing

nokia-n96-n-gage-conceptNokia Corp. is suing 11 companies and a number of their units in the U.S., alleging they colluded to fix prices on liquid crystal displays.

Nokia’s suit comes as the LCD industry begins to emerge from a long downturn that had led to weak panel prices. LCDs are used in screens for mobile phones, personal computers and televisions.

The Finnish mobile handset giant alleges in the complaint—filed Nov. 25 with the U.S. District Court for the Northern District of California in San Francisco—that the companies raised “the price of LCDs above the price that would have prevailed in a competitive market” from at least Jan. 1, 1996 through Dec. 11, 2006.

Nokia said it purchased LCDs from the companies and then incorporated them into its mobile wireless handsets.

Three of the LCD makers accused in the suit said Tuesday they hadn’t received any documents from the U.S. court, three others said they were looking into the matter, two declined to comment and the rest couldn’t be reached for comment.

Nokia spokesman Mark Durrant said his company also filed related complaints in the U.K., against makers of LCDs and cathode ray tubes, which are used in older televisions.

Nokia believes it has a strong position in the case because there is no doubt that price fixing has been going on, Mr. Durrant said, though he declined to say how much money could be involved.

Mr. Durrant said it could take a few years to reach a settlement in court, but added that his company is interested in discussing compensation outside of the court system.

Analysts said legal battles take a while to settle so the suit won’t likely have an immediate impact on the LCD makers, though they said the companies may need to set aside provisions from their earnings in the longer term.

The complaint against the group of companies—which includes AU Optronics Corp., Chunghwa Picture Tubes Ltd., Samsung Electronics Co., Sharp Corp. and LG Display Co.—is the latest in a string of accusations of price fixing in the LCD industry.

AT&T Corp. alleged in a suit filed in October in U.S. District Court in San Francisco that AU Optronics, LG Display, Samsung Electronics and other LCD makers were involved in a “long-running conspiracy” from January 1996 to December 2006 to fix prices of LCD panels.

That complaint, filed by AT&T and its BellSouth and Pacific Bell units, Southwestern Bell Telephone Co. and others, alleged the LCD makers formed an international cartel to illegally restrict competition in the U.S. for LCD panels.

Nokia’s complaint also comes about a year after the U.S. Justice Department fined several LCD makers for price fixing.

Sharp, Chunghwa and LG Display agreed in November 2008 to plead guilty to the U.S. charges of price fixing in the LCD market from as early as April 2001 to December 2006. The companies paid $585 million in criminal fines.

Samsung Electronics, the world’s largest LCD maker, wasn’t cited in the Justice Department’s decision but it cooperated with U.S. investigators in the probe, people close to the case said. The probe into the LCD industry became public in 2006.

The European Commission in May 2009 sent formal charges to a number of companies supplying LCDs on suspicion that they have operated a cartel. The commission didn’t name the companies at the time but in July, Philips Electronics N.V. confirmed it received cartel charges from the European Commission alleging price fixing.

Other companies named in Nokia’s suit include Philips Electronics, Tatung Co., Seiko EpsonCorp., Samsung SDI Co., Hitachi Displays Ltd. and Toshiba Corp.

Hitachi Displays agreed in March to plead guilty to the U.S. Justice Department’s price-fixing charges and paid a $31 million fine. Hitachi isn’t a defendant in the AT&T case.

“Nokia suffered damages as a result…and is entitled to treble damages and injunctive relief to remedy these injuries,” Nokia said in its complaint.

Chunghwa Picture Tubes deputy spokesman Wilbur Chien said Tuesday his company hasn’t received any court documents and declined to comment further on the Nokia case. Freda Lee, a spokeswoman for AU Optronics, also said the company hasn’t received any court documents from the U.S.

A Tatung investor relations official also said the company hasn’t received any official documents from the court.

Toshiba spokesman Keisuke Ohmori declined to comment. Samsung Electronics also declined to comment.

Officials at Seiko Epson, Samsung SDI and LG Display said they were looking into the matter, while officials at Sharp, Hitachi, and Philips, weren’t immediately available for comment.