Dow Chemical commercializes developmental olefin block copolymers for several applications
Dow Chemical announced the widespread availability of nine developmental olefin block copolymers (OBCs), which will be marketed as INFUSE™ OBCs upon commercialization. Customers around the world can purchase large-volume quantities of these developmental OBCs without the requirement for confidentiality agreements.
INFUSE OBCs feature unique block architecture that allows for new-to-the-world combinations of performance and processing enhancements. This material innovation was created using INSITE™Technology, which enables olefin elastomers to expand into a wide range of potential market applications for converters and manufacturers of flexible goods and products. The nine newly released developmental OBCs offer specific processing and end-use benefits for several high-volume end-use market segments:
Liquid Packaging – According to Dow, OBCs can improve package performance at lower costs. The advantages include low compression set at 70°C, high-temperature resistance, excellent seal properties, low removal torque, and excellent organoleptic performance.
Soft Touch – OBCs offer processing efficiency and improved haptics. They are highly compatible with both PE and PP, have good filler and oil acceptance; improve injection molding productivity; demonstrate good thermal stability; and provide excellent adhesion for over-molding. These developmental grades also display consistent color over time and good mechanical and compression sets.
Health and Hygiene – OBCs have polyolefin-like processability with high performance at body temperature including excellent extensibility and elasticity, and superior adhesion and cohesion. They provide great form-fitting comfort and are ideally suited for elastic films as well as elastic nonwovens for diapers and adult incontinence products. These characteristics translate into improved performance and the potential for systems cost reduction.
Adhesives – OBCs offer lower application temperatures and provide improved viscosity, char resistance, and reduced gel formation. As a result, they provide an opportunity for formulators and end-users to lower total costs and differentiate their products. These copolymers are easy to mix and provide better peel strength, superior adhesion, UV stability, and improved color and odor performance as compared to currently used systems.
Foams – OBCs enable manufacturers to produce soft and flexible cross-link foam with lighter weight, more durable, and better compression set while maintaining its overall performance due to its low density and lower shrinkage even at elevated temperatures.
Comments: It seems Dow is making good progress in finding suitable markets for the INFUSE grades – a fair newcomer to the market. By their unique molecular architecture and hence attractive attributes, these new OBCs can fill in some unmet needs in the marketplace. Based on the strong interest in OBCs, and – in line with the strategic agenda of preferentially investing in its Performance businesses, Dow is offering these first-of-their-kind materials to customers on a large scale worldwide.
By supplying a broad spectrum of INFUSE grades, Dow hopes to significantly expand trialing and application development efforts with customers and, ultimately, work with them to increase the market for OBC-based end-use products. The INFUSE OBCs feature unique block architecture that allows for creative combinations of performance and processing enhancements. This material innovation was achieved by Dow using its proprietary INSITE™Catalyst Technology, enabling olefin elastomers to expand into a wide range of potential market applications for converters and manufacturers of flexible goods and products.
Reliance and Essar consider the construction of a petrochemicals complex in Venezuela
Mukesh Ambani-owned Reliance Industries Limited (RIL) and the Ruia-owned Essar Oil have submitted proposals to the Venezuelan Government for setting up a petrochemicals complex in the oil-rich nation. RIL has also wrapped up a major deal for a long-term supply of crude oil for its upcoming Jamnagar refinery.
According to RIL, the company would buy 7.5 million tons of crude oil from Venezuela for its upcoming export-oriented refinery at Jamnagar in Gujarat.
Reliance has been sourcing crude oil from Venezuela – the only OPEC member country from Latin America, for its existing 6.60 lakh barrels a day refinery at Jamnagar. It bought 2.32 million tons of oil from Venezuela in 2006-07 and 8.76 lakh tons in April-December 2007-08.
Comments: While most of the developments for the upcoming petrochemical complexes are centered around the Middle East region, it is important to note that the Indian Petrochemical giant (Reliance) and Essar are developing their plans and strengthening their relationship.
This a strategic development and smart move by Reliance to reduce its dependence on just Middle East-based crude oil.
Reliance Petroleum considers the construction of a PP plant in Kuwait
Reliance Petroleum plans to construct a PP unit in Kuwait in line with its plans to set up greenfield projects outside India. Reliance Petroleum Ltd (RPL) has embarked upon the groundwork and is in the process of completing the necessary surveys for the project. If RPL is successful in getting the project on track, it will be Reliance’s first unit outside India. The company is in talks with a couple of players to join in the polypropylene project.
Reliance is Asia’s largest polypropylene manufacturer and has a combined capacity of over one million tons, catering to 3% of the world’s consumption of polypropylene.
Comments: Reliance continues to strengthen its Polypropylene franchise in Asia. Currently, Reliance is one of the key exporters of polypropylene to China and this project should help expand its reach to the Middle East as well. It is important to note that Reliance’s execution plans are in line with its global expansion and strategic collaborative intent with oil-rich nations.
Mitsui Chemicals to increase PP compounds capacity in North America, Thailand, and China by 2009
Mitsui Chemicals, Inc., and Prime Polymer Co., Ltd. have announced their plans to expand annual polypropylene compound production capacity in North America, Thailand, and China by 24%, for a combined annual total of 73,000 tons. This move is being taken to ensure MCI can respond to the growing demand for polypropylene-based automotive materials in North America and Asian regions. In fact, combined with a new production site in India (15,000 tons) which is under construction, MCI plans to increase capacity by 29% to 88,000 tons within the next two years.
The MCI Group positions the polypropylene-based automotive materials business, chiefly overseen by subsidiary Prime Polymer, as one of the core businesses of its Basic Chemicals Business Sector.
MCI and Prime Polymer continue to strengthen and expand their polypropylene compound business by enhancing production, sales, and technology service structure to supply high-quality products, responding to Japanese automobile manufacturers’ global deployment.
Advanced Composites, Inc. was established in September 1991 with an investment of US$14.1 million. The joint venture partners are Mitsui Chemicals America, Inc. (59.8%), Prime Polymer Co., Ltd. (3.0%), and others (37.2%). The plant and office for this JV are located in Ohio and Tennessee.
Advanced Composites Mexicana S.A. DE C.V. was established in February 1994 as a subsidiary of Advanced Composites, Inc.
A joint venture between Mitsui (452.%), Prime Polymers (3%), SCG (46.2%), and others called Grand Siam Composites was established in February 1996. The plant for this JV is located in Rayong, Thailand.
Established in April 2004 with a capital investment of $9.23 million, Mitsui Advanced Composites (Zhongshan) Co., Ltd. is a JV between Mitsui (65%), Prime Polymer (5%), SCG Chemicals-Singapore (20.0%), and others (10.0%). The head office and plants are located in Zhongshan, Guandong Province, China Mitsui Prime Advanced Composites India PVT LTD was established in September 2007 with a capital investment of Rs.480 million as an 80:20 JV between Mitsui and Prime Polymer. The plant location in India will be in Neemrana, Rajasthan with a scheduled start date of April 2009.
Comments: Mitsui has been focusing on investing in PP compounds for some time now. The Mitsui Chemicals Group views the polypropylene-based automotive materials business, chiefly overseen by subsidiary Prime Polymer, as one of the core businesses of its Petrochemicals Business Group.
Over the last few years, Mitsui has set up several subsidiaries and joint ventures. In January 2003, Advanced Composites Inc. was established with a capital investment of US$14.1 million. The partners are Mitsui Chemicals, Prime Polymer (62.8%), and others (37.2%), with manufacturing locations in Ohio and Tennessee. Advanced Composites Mexicana S.A. DE C.V. was established in February 1994 with an investment of US$2.6 million as a subsidiary of Advanced Composites Inc. (100%).
Ferro restructures its plastics business and creates an Engineered Polymer Products unit
Polymer additives producer Ferro’s Organic Specialties Group has restructured its plastics business to better serve its customers. Ferro has created a new Engineered Polymer Products (EPP) unit by restructuring and by combining several of its sub-businesses. The company plans to use the new division to offer a broader product line and manufacturing synergies, simplified sales contacts, and reduced costs.
According to the company, EPP’s focused approach simplifies providing what customers need and expands their access to Ferro’s depth of the intellectual property and applications understanding in plastics.
EPP will supply mineral and glass-filled compounds, color concentrates, and thermoplastic polyethylene (TPE) products. It supplies a variety of industries including appliances, automotive, medical, liquid handling, food packaging, and more.
The company’s products are available from its plants in the US, Mexico, Venezuela, Spain, and the Netherlands. Ferro, which develops polymer alternatives to engineered thermoplastics, is a global supplier of technology-based performance materials.
Comments: Ferro headquartered in Cleveland has manufacturing facilities in 20 countries and is currently a major player in the manufacture of technology-based performance materials. The company caters to markets such as electronics, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products. Ferro is also a major player in polymer additives and specialty plastic compounds and colorants in the United States.
Ferro’s move to create a specialized unit for engineered polymers will allow it to develop and market to a wider range of applications that require high-end performance products.
UAE-based film manufacturer Taghleef Industries to acquire BOPP films producer Radici Films
Packaging film manufacturer Taghleef Industries (TI) plans to acquire European BOPP producer Radici Films. The new company will emerge from the deal with a combined film production capacity of about 290 KT per year and TI has plans to add further capacity. The takeover is “friendly” as both firms see benefits from combining markets and resources. TI and Radici Film will integrate their activities over the next 12 months.
TI is part of the Al Ghurair group of companies of the United Arab Emirates (UAE) and owns three production sites in the UAE, Oman, and Egypt. TI manufactures BOPP and CPP films and its new production line in Oman with a capacity of 35,000 TPA is due to come on stream later this year.
Comments: Taghleef Industries is currently the largest producer of BOPP films in the Middle East. The company owns Dubai Poly Film and Al-Khaleej. The company had a combined capacity of close to 100 KT in 2006. Taghleef Industries operates three manufacturing units situated in the UAE, Oman, and Egypt. The facility in UAE is Dubai Poly Film and the facility in Oman is Al-Khaleej. The company also had plans to add another 35 KT BOPP line at its facility in Oman which is due to come on stream later this year. The new production line was to become operational in the first quarter of 2008. In February 2008 Taghleef Industries (TI) announced the formation of a joint venture with Shorko Australia in which TI acquired 50% of the equity shares from Hastings Funds Management.
Radici Films (a business unit of Radici Group), one of the major European producers of BOPP films, is headquartered in Italy. The manufacturing facilities of Radici Films are located in Giorgio de Nagaro, Italy. Radici Group made a significant acquisition in May 2001 when it acquired Biafol. Biafol was the major BOPP producer from Hungary with a BOPP capacity of 22,000 metric tons per year.
The combined organization will be among the largest BOPP producers in the world. The Middle East will slowly start increasing its participation in the downstream industry as it produces a large number of polyolefins. The Middle East has the advantage of cost-competitive raw materials and labor. The labor costs in the Middle East are comparable to those in Asia. Films are the easiest to export as the logistics cost are similar to those of resin. In the next few years, the industry will witness more participation from the Middle East in the downstream chemical sector.
Bayer MaterialScience and Baulé establish a systems house joint venture
Bayer MaterialScience AG and Michel Baulé SA have signed an agreement to merge their respective cast elastomers businesses into a joint venture named Baulé SAS, in which each company will hold a 50 percent interest. It will be headquartered in Romans, France. Deliveries and technical support for customers all over the world will be ensured by the joint venture ́s French and German sites and its subsidiaries in the United Kingdom, the United States, and China. The transaction will be completed subject to the approval of the relevant antitrust authorities.
The new company will develop, produce, and market prepolymer systems for hot- and cold-cast elastomers and the low-pressure dispensing equipment for processing them. The systems are used for high-quality specialty applications in various sectors, ranging from the paper industry through the sports and leisure goods sector to concrete processing and mining. They are characterized by exceptional elasticity, tear resistance, and abrasion resistance. Services available include customized formulations, processing equipment, intensive application technology support, and the development and optimization of processes and prototypes.
Comments: Bayer MaterialScience has been investing in this business for quite some time now. This joint venture brings together the comprehensive and unique know-how of Bayer MaterialScience in polyurethane cast elastomers including the competence of the global BaySystems network of systems houses, and the long-term experience and extensive processing knowledge of the globally operating and successful polyurethane elastomer systems house Baulé.
For the company, polyurethanes is the largest business unit (others being Coatings, Adhesives, Sealants, and Inorganic Basic Chemicals) and will contribute to most of the systems segment’s future growth. In order to ensure this, the company has made acquisitions/JVs in this business.
DuPont introduces new bio-based polymers for packaging applications
DuPont expanded its renewably sourced portfolio of offerings for the packaging market with the launch of new DuPont™ Biomax® TPS thermoplastic starch and DuPont™ Biomax® PTT (polytrimethylterephtalate) injection moldable resin. The launch took place at the global Interpack packaging trade fair in Dusseldorf, Germany.
Biomax® TPS is a renewably sourced thermoplastic starch for packaging applications. The offering consists of sheet stock that contains 85-90 percent renewably sourced content for thermoformed trays and articles and resins for injection-molded parts and containers. Biomax® PTT contains up to 35 percent renewably sourced content for packaging applications. It is especially suitable for use in injection-molded containers, cosmetic packaging, and other parts where polyesters are used.
The new Biomax® products join other high-performance polymers made with renewable resources including DuPont™ Hytrel® RS thermoplastic elastomers, DuPont™ Sorona® EP thermoplastic resins, DuPont™ Selar® VP breathable films and renewably sourced grades of DuPont™Zytel® long chain polyamides.
Comments: DuPont has been one of the most active participants in the bio-based materials market. Following their recent success in this arena, they have made significant investments to promote their biobased products. The current introduction of BIOMAX resins is an important addition to its long list of offerings including SORONA, HYTREL, SELAR, ZYTEL, etc. Bio-based plastics are particularly suited for applications such as packaging where their biodegradability is their key selling point. DuPont has focused beyond this attribute, on the various performance properties to enhance their competence relative to petrochemical-based counterparts. With ongoing R&D and investments in renewably sourced materials, DuPont is expected to be a leader in this arena.
BASF announces expansion of biodegradable plastics
BASF SE has announced plans for a significant expansion of its production plant for the biodegradable plastic Ecoflex® at the company’s Ludwigshafen site. The move will raise Ecoflex production capacities from the current 14,000 to 60,000 metric tons per year. Production at the expanded plant will commence in the third quarter of 2010.
Ecoflex is a petrochemicals-based plastic that has the properties of conventional polyethylene but is fully biodegradable by DIN EN 13432 requirements.
At the same time, BASF plans to increase the production capacity of the compounding facility in Ludwigshafen where the newly developed product Ecovio® is manufactured. Ecovio, a derivative of Ecoflex, contains 45 percent by weight of the renewable raw material polylactic acid (PLA). The PLA content means Ecovio is not only biodegradable but also largely biobased. Polylactic acid is a material obtained from corn (maize).
Comments: Biodegradable and bio-based plastics are growing at rates of more than 20% a year mainly promoted by their carbon footprint and attribute of degradability in landfills and other similar environments. The new production capacity comes in response to the growing demand for renewably sourced materials. Ecoflex® and Ecovio® have already given BASF significant visibility in this growing market. It is expected to strengthen its position in environmentally friendly plastic materials.
DSM plans to further invest in its UHMW-PE fiber Dyneema®
Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, today announces plans for a substantial capital expenditure program, expected to involve up to USD 450 million. This will increase production capacity in its Dyneema® business, enabling DSM to capitalize on expected continuous growth in demand in the United States for the world’s strongest fiber™. DSM Dyneema’s sales have grown by more than 15% per year in recent years and DSM expects the business group to accelerate its growth path.
Engineering studies have now commenced for the planned investment program, which is expected to involve several phases of implementation over the next 2-3 years. The expansion is expected to result in a significant increase in DSM’s US production capacity for the Life Protection market and will also include breakthrough technology for ballistic and other applications. This will be the largest investment program since the start of the large-scale production of Dyneema®.
This planned capital expenditure program is another step in a series of significant investments DSM has made in its Dyneema® business in recent years. In October 2007 a 25% increase in production capacity in the US Life Protection business was announced. More recently, in March 2008 DSM welcomed the start-up of its latest Dyneema® fiber production line in Greenville (North Carolina). The first additional line of this new multi-stage investment program is expected to be operational in 2009. The majority of the investments are likely to be in the United States.
Comments: DSM’s Dyneema® is a high-strength fiber based on ultra-high molecular weight polyethylene. The overall supply-demand dynamics of this material are fairly balanced for the next 1-2 years. However, if the demand continues to grow as it has done in the last few years, there will be a supply shortage. Capitalizing on this growing demand and potential supply shortage, DSM has decided to invest in this business. Additionally, the material is used in military applications mainly for its strength characteristics.
Canada plans to ban polycarbonate-based baby bottles
The Canadian government decided to ban polycarbonate infant bottles, the most popular variety on the market, after it officially declared one of their chemical ingredients toxic.
The action, by the Department of Health and Environment, is the first taken by any government against bisphenol-a, or BPA, a widely used chemical that mimics a human hormone. It has induced long-term changes in animals exposed to it through tests.
Senator Charles E. Schumer, Democrat of New York, said he intended to introduce a bill that would ban many uses of BPA-related plastics. It would prohibit them from all children’s products, including nonfood items they may put in their mouths, as well as any product used to contain food or beverages.
The toxic designation will allow Canada eventually to ban the manufacture, import, or sale of baby bottles made with polycarbonate. Polycarbonate, which dominates the North American baby bottle market, mimics glass but is lighter and shatter-resistant.
The toxic designation is to be followed by a 60-day comment period, but there is little chance of a reversal, given the lengthy government examination that preceded the move. Because of regulatory procedures, however, government officials said that a ban probably would not be fully in effect for about a year.
Comments: This will not impact the consumption of polycarbonate significantly as baby bottles account for a very small percent of the total polycarbonate demand.
The largest demand for polycarbonate is in automotive, optical, glazing & sheet, appliances, and others. Sabic (GE) is the largest supplier of polycarbonate followed by Bayer and Dow Chemical.
The role played by retailers in the chemical industry is the larger issue to be considered here. As retailers become larger they have much more control than regulatory authorities to impact the sale of plastics. Retailers only have to worry about the general perception of the masses and can take quick decisions. The chemical industry may soon have to start making its case to the retailers along with regulatory bodies.
Clariant Masterbatches expands its capabilities globally
Clariant Masterbatches has added seven multi-Layer blow molding machines at sites worldwide in order to facilitate the development of new, head-turning effects in plastic bottles for packaging-industry customers.
The company has installed new bi- and tri-layer blow molding machines at various sites on four continents. In the last twelve months, a total of seven machines will have been started up at facilities in Argentina, Brazil, Mexico, China, Indonesia, Thailand, and France. They supplement the capabilities of other single- and multi-layer machines located around the world, which have been operating for many years.
In the Asia Pacific region, a tri-layer machine was installed in late 2007 in Shanghai, China, and a bi-layer blow molder has been commissioned in Tangerang, near Jakarta, Indonesia. Still, another bi-layer machine has been in operation in Chonburi, Thailand, since mid-2007. These locations were chosen because of their proximity to major centers of plastics packaging development along the Pacific Rim.
Meanwhile, in Latin America, Clariant Masterbatches started up tri-layer blow molding machines in São Paulo, Brazil, and Santa Clara, Mexico. A bi-layer machine was also recently installed in Lomas de Zamora, Argentina. The Company has had mono-layer blow molding machines in Brazil, Colombia, and Mexico for several years. In Europe, a tri-layer blow molder has been installed in the new Technology Centre at Cergy Saint-Christophe, near Paris, France.
By placing sometimes-expensive color and special-effect materials in a relatively thin surface layer (and using less-costly plastic materials in other parts of the package wall), it is possible to save money without compromising on aesthetic qualities. Multi-layer blow molding technology also can add functionality (e.g., barrier and strength properties) and facilitate the increased use of recycled plastics. Recycled material can be “buried” between outer and inner layers of virgin material, with different color/effect recipes used for each layer.
Clariant Masterbatches products are marketed under six global brand names: REMAFIN® masterbatches for olefins; RENOL® masterbatches for engineering resins, styrenics, and PVC; CESA® additive masterbatches; HYDROCEROL® chemical foaming and nucleating agents; OMNICOLOR® universal color masterbatches; and ENIGMA® special effects.
Comments: Overall, Clariant has been trying to focus on pricing and margins as opposed to volumes. This may be the company’s high-margin business relative to the others and hence this investment.
One of the important aspects of Clariant’s new strategy is to separate the more commoditized, product-driven businesses (volumes) from service-driven ones thus recognizing very different market drivers as well as emphasizing the need for a differentiated strategic approach. In particular, whereas the former businesses (approx. 40% of group sales) will be managed for cash, the latter will be managed for growth.
The company has installed blow molding machines wherever its customers are using blow molding techniques for the manufacture of converted products.
Indian masterbatch producer Plastiblends to add significant capacity
India’s largest producer of plastic masterbatches, Plastiblends India announced its plans to add 22 million pounds of capacity at its plant in Daman, India.
Mumbai, India-based Plastiblends added about 13m pounds of capacity at its plant in Roorkee, India, in August. The two plants cover a total of 430,000 square feet of space, employing 325 on a variety of twin-screw extruders, continuous mixers, and pelletizing lines.
Sales for Plastiblend’s 2007-08 fiscal year are expected to hit $40m ( 25m), an increase of more than 30% from the year before. Exports make up about 35% of the firm’s overall sales, and according to the company, export sales are expected to continue to grow at an even faster rate than India’s booming domestic sector.
Packaging has been a big growth market for Plastiblends, along with masterbatches for pipe used in telecommunications and other industries. Its masterbatches also are used in fibers used to make woven sacks, as well as in BOPP film and multilayer blown film.
Masterbatches made by Plastiblends are based on polyethylene, polypropylene, PET, and other resins. Its total production for 2008 is estimated at 90m pounds in an Indian masterbatches field that’s estimated at 500m pounds in size.
Comments: This is a timely move in the right direction by Plastiblends – India’s largest plastics masterbatch exporter by adding capacity to its operation in India to meet the market demand both domestically and abroad. First of all, the domestic market in India is booming – moving away from being controlled by smaller cottage industries, mainly family-run shows towards large integrated operations. For domestic industries in India, this is the only way to be a low-cost and quality supplier to the competitive world market.
Recognizing and taking advantage of this inevitable but opportunistic global trend, Plastiblends is not only trying to grow its domestic market but also to expand its overseas market share – mainly Europe and US. Packaging has been a big growth market for Plastiblends, along with masterbatches for pipe used in telecommunications and other industries. Its masterbatches also are used in fibers used to make woven sacks, as well as in BOPP film and multilayer blown film.
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