Sumitomo Chemical and Mitsui Chemicals dissolve joint polyolefins business
Sumitomo Chemical Co., Ltd. and Mitsui Chemicals Inc have agreed to dissolve the business arrangementfor their polyolefins joint venture company, Sumitomo Mitsui Polyolefin Co., Ltd. (SMPO), effective October 1, 2003.
Accordingly, SMPO will transfer its marketing and research functions back to both companies, and employees will return to their respective parent companies, on the first of October.
Comments: In March 2003, Mitsui and Sumitomo had discontinued the consolidation talks because the groups could not agree on a consolidation ratio for their various assets. The companies had announced that SMPO would continue its operations.
The Sumitomo-Mitsui saga started in 1999 during the heavy polyolefin industry consolidation period following MITI’s abolition of marketing group agreements. The individual polyolefin players in Japan formed joint ventures in response to: (1) increasing imports, (2) drop in exports due to developments in rest of Asia, and (3) softening demand in Japan, following the trend set by the U.S and Europe.
SMPO, formed on the premise that Sumitomo and Mitsui would consolidate their overall operations, was established as a joint venture for research and marketing prior to the anticipated overall consolidation with the aim of generating synergies in polyolefins businesses as quickly as possible. The major goal of SMPO was to build a global polymer presence leveraged by existing joint ventures including, Evolué Japan Co Ltd (1996), Japan Polystyrene Co. (1997), and Nippon A &L (1999). Operations began in April 2002, with production undertaken by both parent companies.
With the consolidation, the company would have been Asia’s largest and the fifth largest global chemical player, providing the necessary economies of scale and market dominance to compete effectively in today’s highly competitive environment.
Mitsui and Sumitomo are the major financial power houses in Japan. Under the soga sosha system, the two groups were major competitors. Mitsui Chemicals and Sumitomo Chemical were the chemical arms of these two financial houses.
Using the polyolefins trend in rest of the countries, Mitsui Chemicals and Sumitomo Chemicals initiated the discussions in 1999 and proceeded to form the joint venture. However, Mitsui’s and Sumitomo’sfinancial parents never consummated the relationship.Japan, as a nation is very loyal to the “Soga Sosha” system of marketing, production and distribution and cannot progress without an agreement at the basic level.
On the whole, this put both Mitsui and Sumitomo behind in their plans. In general, Mitsui’s objective in polyolefins is to “decommoditize” polyolefins by emphasizing new innovations, while Sumitomo stresses on being the consistent commodity producer.
For further details see our New Generation Polyolefins issue that covers the Japanese Polyolefin Industry.
Formosa Plastics plans polypropylene plant in Ningbo in eastern China
The Formosa Plastics Group (FPG) has decided to increase its petrochemical investment in mainland China by setting up a polypropylene (PP) plant in Ningbo on the eastern cost of the mainland.
The new plant will have a total capacity of 300,000 MT/year, and the investment for the project will be $18.9 million. The company executives will submit the investment application to the Investment Commission under the Ministry of Economic Affairs for approval.
Comments: Formosa Plastics is an innovativeorganization with extensive experience in North America with experience in commodity PP. Formosa has: (1) the technical know-how, (2) experience in China and (3) North American market knowledge and is uniquely positioned to capture the future growth opportunities in China.
NOVA Chemicals details effects of power outage and the impact on third quarter earnings
NOVA Chemicals Corporation announced that its four plants in Ontario, Canada, and its expandable polystyrene plant in Painesville, Ohio are returning to normal operations after suddenly being brought down by the recent power outage that occurred in the Midwestern and Northeastern United States and Eastern Canada.
The company expects to lose roughly 150 million pounds of ethylene, chemical co-products, polyethylene, styrene and expandable polystyrene production by the time its facilities can operate at full capacity. As a result, third quarter earnings will be reduced by approximately $10 million or $.12 per share.
Comments: Nova Chemicals has had a continuously losing streak in earnings extending back to 9 quarters. The losses were attributed to: (1) softening demand, (2) raw material impacts and (3) natural gas prices. In addition, Nova’s major focus is on “commodity polyolefins”. The area of commodity polyolefins have suffered eroding margins, which were responsible for the recent plant shutdowns by Dow.
The unwelcome power outages will have further negative impact in an industry with already eroding margins.
The commodity polyolefin pricing plays a major role in margins. However, most commodity polyolefins are priced in North America based on “independent price indexing”. The same organizations that set the price indexes also turn around and provide the price information – thus the indexing organizations have a major influence on the prices – Tails wagging the Dogs – a philosophy widely accepted and practiced in the polyolefin industry.
Borealis increases European polyolefins prices by €150/ton.
Borealis announced that it will increase the price of its polyethylene and polypropylene plastics in Europe by €150/ton as of September 1, 2003.
According to Borealis, the price increase is required to restore profitability to its European business in order to sustain investments, including in innovation and technology. The company says that ongoing investment is necessary to continue the growth of polyolefins as a material of choice.
Eastman announces steps to improve profitability
Eastman Chemical Company headquartered in Kingsport, TN, announced steps to improve profitability by addressing under-performing businesses and product lines in one of its major segments.
Eastman identified the businesses and product lines in its coatings, adhesives, specialty polymers and inks segment (CASPI) that are performing below acceptable financial levels. The company outlined strategic alternatives to improve the segment’s financial performance. These strategic alternatives include: restructuring, divestiture and consolidation. These steps will help improve the segment’s operating earnings in 2004 by at least $50 million. After the completion of these steps, Eastman expects the annual earnings rate for the CASPI segment to improve by $75 million to $100 million.
The company plans to complete the program within the next eight to 12 months. Eastman has retained J.P. Morgan to assist in evaluating the strategic alternatives for the CASPI businesses and product lines that are performing below acceptable financial levels. The businesses and product lines that are the focus include: (1) acrylate ester monomers, (2) liquid resins, (3) composites (unsaturated polyester resins), and (4) powder resins.
Sales revenues in 2002 for this portion of the CASPI segment were approximately $650 million, and 2002 operating results were a loss of approximately $75 million. The company expects the operating loss in 2003 to be greater than the operating loss in 2002 for these businesses and product lines. There are approximately 2,400 employees associated with this portion of the CASPI segment.
Comments: Westlake narrowed operating losses for its olefins-polyolefins segment from $1.8 million in the year-ago period, to $100,000, due to higher polyethylene margins and ethylene volumes. Operating income from its vinyls segment more than doubled, to $7.6 million, mainly because of higher PVC margins.
Dow increases vinyl acetate monomer pricing
The Dow Chemical Company announced price increases for vinyl acetate monomer in all regions of the world due to tight global supply/demand balances and the need to improve margins. Effective September 1, 2003, Dow will increase selling prices by $130 per metric ton in Latin America; by $110 per metric ton in the Pacific; by 110 Euros per metric ton in Europe; by $130 per metric ton in the Middle East and Africa; and by $.06 per pound in the U.S.A. and Canada, or as otherwise allowed by individual contract terms.
Proctor and Gamble and Kaneka of Japan plan on commercializing the SibS technology by 2005
Procter and Gamble & Kaneka Corporation entered into an agreement for the development of biodegradable polymers using Kaneka’s proprietary technology. The precision polymerization process, cationic living polymerization, was used to develop a styrene-isobutylene-styrene block copolymer having properties such as: (1) high resistance to heat and weather, and (2)good steam and gas barrier properties.
The companies established a High-performance Materials Development Department to speed up commercialization.The companies had agreed in 2001 to commercialize the technology by 2005.
Radical polymerization has been used in the development of various acrylic copolymers. Silyl, allyl or other functional groups have been added to each end of an acrylic oligomer. Potential applications for a new all-acrylic-block thermoplastic elastomer include viscous adhesives and building materials. By fermenting natural oil, glucose and fatty acid, the company has developed a biodegradable polymer which can be produced with a range of hardness and flexibility. Properties are improved by blending the new polymer with a polylactide.
Comments: SibS (Styrene– Isobutylene- Styrene) block copolymer technology, originally developed by University of Akron brings unique products to the table.
SibS due to its partial hydrogenation has properties of SEBS the fully hydrogenated SB copolymer in spite of no hydrogenation step. SibS is in a unique position to meet the hydrogenated di-block end uses.
The significant stumbling blocks for the technology included: (1) anionic polymerization instead of normal cationic polymerization of the SB copolymers, (2) unproven costs and (3) industry acceptance.
The major problem stems from the anionic polymerization that requires cryogenic operation. With the exception of ExxonMobil and Bayer for the butadiene rubbers, there is no polymerization technology in existence based on cryogenics.
BP Chemicals, (the old Amoco) had an on-going research on SibS that was recently donated to a university.
ExxonMobil Chemical expands plant, adds 30 million pounds of OPP film capacity
The films business of ExxonMobil Chemical has completed an expansion of its oriented polypropylene (OPP) film plant in Shawnee, OK. Anew 6.6 meter orienter line will give ExxonMobil an additional capacity of 30 million pounds per year. It will help meet growing demand for white opaque films for food packaging, labels, and imaging.
ExxonMobil Chemical’s OPPalyte® and Label-Lyte® white opaque films are used in the ice cream novelty, confection, snack food and beverage markets.ExxonMobil Chemical’s films business makes OPP film at seven plants: three in Europe (Virton, Belgium; Kerkrade, the Netherlands; and Brindisi, Italy) and four in North America (LaGrange, Georgia; Stratford, Connecticut; Shawnee, Oklahoma and Belleville, Canada). ExxonMobil’s European head office is in Luxembourg.
Comments: ExxonMobil is the largest supplier for bi-axially oriented polypropylene (BOPP) films with global capacity at 551 million pounds and North American capacity at 280 million pounds. The installation of new 6.6 meter orienter line will increase ExxonMobil’s North American BOPP film capacity by 11% to 310 million pounds. This additional capacity will be utilized for producing specialty white opaque films that are used in various applications in food packaging, labeling, and imaging markets. Suppliers are interested in specialty BOPP film markets as they provide superior margins and higher growth rates.
White opaque BOPP films are typically manufactured by the tenter frame process. The foreign particulate material is mixed with homopolymer polypropylene resin while manufacturing the film. The opacity depends on the amount of particulate material presents in the film. Sometimes opaque films are metallized and used in label and candy packaging applications. White opaque films can be solid or cavitated. Almost 95% of the commercially available white opaque BOPP films are cavitated.
White opaque films account for about 7% of the total BOPP film market. Labels and confectionery packaging applications are the two major markets for white opaque BOPP films. Labels is the largest market for white opaque BOPP films accounting for almost 75% of the demand while confectionery packaging accounts for the remaining 25% of the market.
Repsol halts operations at Puertollano, Spain petrochemical complex due to fatal refinery blast
Repsol-YPF has halted operations at its Puertollano, Spain petrochemical complex following a fatal explosion and fire on August 14 at the company’s adjacent refinery. The blast killed three workers and injured at least six, did not damage the petchem complex. The petchem complex includes a 250,000 MT/year ethylene plant, 150,000 MT/year of polyethylene, 120,000 MT/year of polypropylene, and 160,000 MT/year of styrene.
Repsol has not planned to declare force majeure on deliveries of any of those products from the plant. The company will investigate the causes of the accident, which occurred in gasoline storage tanks at the refinery.
Clariant to invest in new polyolefin waxes, Licocene produced using metallocene catalysts
Clariant has introduced new polyolefin waxes manufactured using metallocene catalysts under the trade name Licocene®.
The property profile of these “metallocene waxes” is unique & can be optimized and tailored to suit diverse applications such as dispersing aids in the production of masterbatches, adhesives and sealants, fiber glass coatings for composites. The family of waxes includes polyethylenes and focuses on specialty grades of polypropylenes and copolymers.
Clariant currently manufactures the waxes in a continuously operating small pilot plant. In order to satisfy strongly increasing demand from customers, the company has planned to build a production plant at the Höchst Industriepark site, scheduled to come on stream by the beginning of 2006. As a result Clariant’s expertise in polyolefin wax technology and products will be focused at this site.
Comments: During the fourth quarter of 1999, Clariant started a pilot plant production facility in Hochst, Germany, to manufacture metallocene catalyzed polyethylene wax. The production capacity of this pilot plant facility was 2 million pounds and the total cost of the plant was estimated to be about $3 million. Clariant was planning to start a full-scale operation facility by year 2002. Clariant has now decided to start the full-scale operating facility to meet the increasing demand. The experience of operating the pilot facility for 3 years should help Clariant in effectively managing the full-scale operation facility.
Clariant claims that its new metallocene based polyethylene can provide various property advantages such as: (1) excellent control over melting point of the wax, (2) hardness, and (3) transparency. Further, the new technology can reduce production costs. The metallocene waxes are currently priced at about $1 per pound, However Clariant can reduce the price after full scale commercialization. Metallocene polyethylene is targeted towards the following market segments: (1) textiles (corrosion protection), (2) polishes, (3) rubber/plastic processing, (4) pigment dispersion aids, and (5) cosmetics.
One of the leading producers for polyethylene waxes, Dow Chemical Company, is also producing and marketing metallocene waxes. Dow Chemical Company had recently announced its agreement with Marcus Oil under which Marcus Oil will market Dow’s metallocene based polyethylene waxes. For further information, refer to our previous issue of Polyolefins & Elastomers.
Shanghai Chlor-Alkali Invests in West Region PVC
Shanghai Chlor-Alkali Chemical (SCAC) announced its plans to form a joint venture with two Chinese companies to build a 120,000 MT/year polyvinyl chloride (PVC) plant in Ningchuan, Ningxia in western China.
The two local partners are Ningxia Ninghe National Chemicals Group Co, a producer of calcium carbide, which will hold a 40% stake, and Ningxia Yinglite Power (Group) Co., Ltd. which will hold 30%. SCAC will also own a 30% stake. The three companies have signed an agreement for the joint investment in the construction of the 120,000 MT/year PVC plant and 130,000 MT/year calcium carbide plant.
The company will have a total investment of RMB930 million and a registered capital of RMB279 million. Ninghe Minzhu will provide RMB110 million, and Shanghai Chlor-Alkali and Yinglite Group will each provide RMB83.84 million, each holding 30% of the equity. Each party will make the investment in cash.
The new company will be called West Region PVC Co., Ltd. and will become China’s biggest PVC producer using the calcium carbide process.
Comments: The demand for PVC in China is increasing at a growth rate of about 8-10%. There have been lots of PVC capacity announcements in China. Companies such as LG Chemical, Shaanxi Chemical, and others have already announced PVC capacity additions by 2005. Once the planned capacity comes on stream, China’s dependency on the imports will reduce.
Bayer Polymers to stop production of Cobalt-Polybutadiene rubber
Bayer Polymers announced its plans to stop production of the elastomer cobalt-polybutadiene (CoBR) at Marl, Germany, due to falling demand. The company’s Bayer Buna GmbH subsidiary will shut down a 45,000 MT/year plant at Marl in the first half of 2004 with the loss of 75 jobs.
Bayer Polymers says it will concentrate butadiene rubber (BR) production at Dormagen, Germany; Orange, TX; and Port-Jérôme, France.
CoBR produced by Bayer Buna at Marl is a general-purpose rubber used in tires and, in particular, as a modifier for high-impact polystyrene (HIPS). According to Bayer, the demand for CoBR in HIPS applications has fallen due to substitution by lithium-BR.
Comments: There are three types of polybutadiene rubber including: (1) high cis polybutadiene, (2) lithium based polybutadiene, and (3) high trans polybutadiene rubber. Cobalt-polybutadiene rubber is a type of high cis polybutadiene rubber. The cobalt system produces a highly branched BR with a low solution viscosity that makes a good polystyrene and acrylonitrile-butadiene-styrene modifier. CoBR has been facing lot of intermaterial competition from lithium based BR.
The major applications of BR include: (1) tires (threads, and sidewalls), (2) impact modifiers in polymers such as polystyrene and acrylonitrile-butadiene-styrene, and (3) golf balls cores.
Bayer has made the strategic decisions to shut down the Marl plant in order to improve the profitability.
Hercules’ subsidiary FiberVisionsannounces agreement to purchase polypropylene fiber company Meraklon S.p.A
Hercules Incorporated has reached an agreement to purchase Meraklon S.p.A, an Italian polypropylene fiber company. Meraklon is located in Terni, Italy, with 2002 sales of approximately €65 million. The proposed acquisition will be effected through Hercules’ FiberVisions subsidiary in Denmark.
According to the company, this transaction reflects Hercules’ commitment to the polyolefin fiber business and affirms Hercules’ strategy for growth through bolt-on acquisitions.
The addition of Meraklon to the FiberVisions family will broaden its portfolio of products, particularly in the industrial and technical fibers markets, expand capacity, and provide better access to the markets of southern Europe and the Middle East.
The transaction, which is subject to certain regulatory approval, is expected to be completed in the fourth quarter of this year.
Comments: Hercules comprises of 4 main business units: (1) Aqualon, (2) FiberVisions, (3) Pinova and (4) Industrial Specialties. FiberVisions business group based out of Denmark produces fibers for thermalbonds, spunlaced and needlepunched nonwovens at several locations including Varde, Denmark, Athens & Covington, Georgia, USA, and Suzhou, China. These fabrics are utilized for diapers, feminine care, adult incontinence, medical, automotive, geotextiles and other nonwoven applications.
Meraklon S.p.A is an Italian based manufacturer of polypropylene staple fibers as well as continuous filament yarns with plants located in Terni, Italy and Rome, Italy. The staple fibers are used for a host of nonwoven applications while the filament yarns are used for floorcoverings and textile end used.
The acquisition strengthens Fibervisions position in the European nonwoven staple fiber markets and also diversifies the company’s product offering by including the filament yarns for floorcoverings and other applications.
Finnish firm Wihuri to acquire Walothen GmbH, Bayer subsidiary’s polypropylene films business
Bayer announced its plans to sell its subsidiary Walothen GmbH to family-owned Finland based group Wihuri.Walothen, located in Walsrode Industrial Park, Germany, is a producer of polypropylene (PP) films supplying into four main segments including: (1) over wrapfilms, (2) standard films, (3) print lamination, and (4) tobacco sectors, and generates sales of €60 million ($67 million)/year.
According to Bayer, the divestment is part of its restructuring. Bayer’s activities in Walsrode will be focused on its subsidiary, Wolff Cellulosics, a producer of cellulose derivatives for use in building materials, printing inks, coatings, pharmaceuticals and cosmetics.
The Packaging Division of the Finnish Wihuri group already has facilities in the Walsrode Industrial Park producing high-grade composite films for food packaging, medical and technical applications.
Comments: The Wihuri Group’s packaging division produces multilayer films for food packaging as well as for medical and technical applications at its 16production sites worldwide. The company’s packaging group operates as Wipak group in Europe, and Winpak Group in North America, with combined sales of about €600 million.
In 2001, Bayer had sold its subsidiary Covexx Films Walsrode to Wipak, subsidiary of Wihuri group Covexx, a company specializing in high-performance plastic film, had sales of €108 million ($96 million).
Australian firm Amcor acquires Rexam’s healthcare packaging unit
Rexam PLChas announced its plans to sells itshealth care flexible packaging business to Australian packaging company Amcor Ltd. for $215 million. The sale will include 10 plants on four continents, including four plants in the United States.
Currently, Amcor has six flexible plantsall of which are based in Europe. The deal is set to finalize in October 2003. Amcor is buying out the 28.1 percent minority stake in Amcor Flexibles Europe formerly held by Danisco Flexible A/S and Ahlstrom Corp. for close to €100 million ($109 million).
Amcor’s product portfolio will cater for medical films, laminates, converted bags,pouches, blister films and barrier films.
Rexam has plants located in Mundelein, Ill.; Madison, Wis.; Mt. Holly, NJ; Ashland, MA; Sligo, Ireland; Stoke Gifford, England; Coulommiers, France; Cidra, Puerto Rico; São Paulo, Brazil, and Singapore.Amcor has medical and pharmaceutical flexibles plants in Gent, Belgium; Siliera, Italy; Alcacer do Sal, Portugal; Burgos and Logroño in Spain and in Lund, Sweden.
Comments: The acquisition of Rexam would make Amcor one of the leading suppliers of flexible packaging to the healthcare industry. This deal also gives the Australian company a foothold in the United States.
In 2002, Rexam had sold its flexible food packaging business in England to Amcor Flexibles UK, a subsidiary of Amcor Ltd (Melbourne, Australia) for $16 million.
Sonoco Products to close flexible packaging plant in Fulton, NY
Sonoco Products Co. (Hartsville, SC) has announced its plans to closeits flexible packaging plant in Fulton, NY.The company will phase out production at the Fulton plant by the end of the first quarter of 2004affecting 130 employees.
The Fulton operations will be consolidated into Sonoco’s flexible packaging plants at Edinburgh, IN, and Morristown, TN. This consolidation is part of the company’s previously announced plans to reduce its average cost structure by more than $60 million and is expected to result in significant savings.
The facility was acquired by Sonoco in 1993 and converts and prints film for a variety of packaging applications.
Degussa focuses on functional polymers
Degussa opened a project house Functional Polymers@Interface and Surfaces on September 1, 2003 in Dusseldorf Germany.
The goal of the project house is to consolidate the efforts of about 20 scientists from various Degussa divisions to develop new and innovative “tailor made polymers to address requirements like heat reflection, conductivity, scratch resistance and weather resistance properties. These applications considered to be the next step for polymer materials have applications in high value added applications like medical, electrical, communication and information technologies.
The project house will combine know-how from specialty polymers, nanomaterials and surface and interface modification. Experts from different Degussa businesses and service units will be working with university and industry partners to develop functional polymers and production methods.
Comments: The major areas of focus for plastics future development include: (1) polar polymers, (2) scratch resistance, (3) optical properties, (4) incorporation of light sensitivity, (3) electrical and heat resistance and (4) disposability.
Since these properties reflect high value added applications, the major approach being attempted is through developments in additive technologies and/or post-reactor modifications.
Degussa is an innovator in post-reactor modification of plastics
Netherlands based Wavin acquires Czech Republic’s pipe manufacturer Ekoplastik
Plastic pipe manufacturer Wavinhas entered into an agreement to acquire Ekoplastik, a producer of hot and cold tap water pipe systems based in the Czech Republic. The acquisition is expected to be completed by the end of 2003.
Ekoplastik is one of the leading manufacturers of polypropylene based plastic pipes and fittings in Central and Eastern Europe with its plant located near Prague.
Wavin has factories in Poland, Hungary and Lithuania, and has a sales presence in nearly all countries in the region. Currently it has no production facilities in the Czech Republic, but sells sewer and utility pipes and fittings for underground applications via a number of its own depots.
Comments: Wavin is one of the largest suppliers of plastic pipe systems in Europe. The company manufactures and supplies plastic pipes and fittings in three markets: (1) building (soil & waste, rainwater, hot & cold), (2) civils (sewer, drainage, irrigation), and (3) utilities (gas, water, cable ducting).
Wavin produces pipes and fittings made of PVC, PE or PP, infiltration systems, inspection chambers, manholes, plumbing systems, water management systems, underfloor heating systems.
The European Plastic pipe market has seen slow growth in the recent years due to over capacity and slow in construction. The demand for plastic pipes is dependent on the construction industry and the demand for plumbing and heating applications. Any growth in the plastic pipe industry will arise from substituting the older metal pipes especially in Western Europe. Opportunity in new growth is expected when the ten new eastern European countries join the European Union in 2004.
German firm Mauser GbmH to acquire packaging business unit of Hoover Materials Handling Group, Inc.
Alpharetta, GA basedHoover Materials Handling Group, Inc. announced that it had sold its blow-molding operations to Mauser GmbH allowing Hoover to focus its resources on its primary businesses. Under the agreement, Mauser will purchase Hoover’s Industrial Packaging Business Unit. This business unit includes Hoover’s limited-use Intermediate Bulk Container (IBC) facilities in Mt. Vernon, OH and Anniston, AL.; in addition to the company’s plastic drum plants in Charlotte, NC, and Pine Bluff, AR. Hoover will continue to own and operate its metal IBC plant in Beatrice, Nebraska.
Mauser is focusing on making the US a core market for the company. The company employs some 1,300 people worldwide and has sales of €300 million. A large part of sales come from Mauser’s blow-moldedbarrels made of high density polyethylene(HDPE) used for transporting chemicals.
Comments: The Mauser group has close to 48% of its sales in plastic packaging markets. Other markets forMauser include metal packaging, container servicing and machinery. Mauser products include high density polyethylene based bottles for chemical and pharmaceutical application, lube oil and large part blow molding application like 120-220 liter drums.
The demand for plastic drums and IBCs has grown in Europe and is expected to grow rapidly in North America. This acquisition gives Mauser a strong foothold in North America, and puts it in a good position to capture growing market for plastic drums & IBCs.
IBCs & plastic drums are used in the transportation and storage of chemicals, agricultural products, powders, and other materials. Due to high melt strength, toughness, rigidity, and ESCR requirements, typically high molecular weight resin is preferred. Other technical requirements include: (1) light weight, (2) corrosion resistance, (3) chemical resistance (4) processability, (5) impact strength (6) colorability, and (6) explosion resistance.
Rohm & Haas to supply Kynar 500® polyvinylidene fluoride resin in powder coating
AtoFina Chemicals, Inc. has granted a Kynar 500® license to Rohm & Haas Company for the production of powder coatings using Kynar 500 PC polyvinylidene fluoride (PVDF) resin. The license grants Rohm & Haas the authority to formulate powder coatings in a palette of colors using a minimum of 70% Kynar PVDF resin from AtoFina and market these powder coatings under the Kynar 500 PC trademark.
PVDF due to its exceptional abrasion and stain resistance properties has a long history of reliability and weathering resistance in architectural uses like roofing, spandrels and curtain walls.
BASF wins grand innovation award for development of engine oil-sump from thermoplastic
BASF has won the special award for engineering innovation from the Society of Plastics Engineers (SPE) for the development of the world’s first truck engine oil-sump to be made from a thermoplastic material. Among those working on the project was a group of engineers from BASF, whose expertise in plastics engineering and design was a significant contribution to the sump’s technical success. The material used is a BASF Ultramid® nylon resin.
Comments: The replacement of metal parts continues to drive growth of plastics in the automotive industry. Plastics have been able to reduce manufacturing costs via (1) lower processing costs, (2) light weighting, and (3) consolidation of multiple parts into a single assembly. Polypropylene has led the way in exterior and interior components, but has had difficulty in under the hood applications requiring high heat resistance and dimensional stability.
Reinforced nylon, due to its higher thermal resistance, has been making significant inroads in under the hood applications (especially for air intake manifolds). The European automotive market already has significant experience with using nylon for replacing metals and other thermoset materials. Currently, about 115-120 million pounds of reinforced nylon is consumed for under the hood applications in North America with growth pegged at 5-6%. However, the usage could significantly increase if the European trend catches on.
Further restructuring at Akzo Nobel Polymer Chemicals
Akzo Nobel Polymer Chemicals has announced further restructuring plans to improve its performance. In March 2003 a number of cost savings measures were taken which, however, have failed to improve performance sufficiently.
According to Akzo Nobel, further restructuring is essential for the future of the business. The restructuring measures, which are additional to the already discontinued production in Gillingham, United Kingdom, and Burt, New York, United States, will result in a reduction of some 150 jobs. The reductions will be in R&D, control & accounting, information management, sales, administration and manufacturing. All regions around the world will be affected. The implementation of this restructuring program will take place during the remainder of this year and continue in 2004.
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