My Turn – Dr. Balaji B. Singh – The New Global Strategies – Go West for Survival and Focus on East for Value – Except the center is now The Middle East!
Comments: The Newest strategy for most Global organizations – shift the focus away from ASEAN countries a bit west.
Make the Middle East (including Saudi Arabia, UAE, and Qatar) the Center for producing commodities based on plentiful feedstocks (cost is a different issue) to produce commodities and differentiated commodities to meet the growing demand in already booming countries like India, China, Europe .. yet be ready to capture the newly developing nations in the ROW.
Use the advanced nations for specialties and value addition. Just watch for a flood of announcements based on this strategy for the next six months.
Chemical Market Resources completes its FlexPO 2007 conference
October 17-19 marked the 13th annual FlexPO 2007 conference hosted by Chemical Market Resources and co-sponsored by the PTIT, PTT Polymers, and SCG Group. FlexPO 2007 was held in Thailand at the Shangri-La Hotel. The conference covered a variety of topics ranging from innovations in polyolefins and elastomers to global product migration and alternative feedstocks. All in all, the conference provided a solid picture of the polyolefins landscape for the year ahead.
The conference was inaugurated by Welcome Speech by the President of CMR, Dr. Balaji Singh followed by an address by the Permanent Secretary of the Industry Ministry. Thailand’s government said that the country’s $13 billion-a-year plastics industry, which accounted for 6 percent of the gross domestic product in 2006, is creating strategies and innovations to face a coming downturn. Chakramon Phasukavanich, the ministry’s permanent secretary, said the Thai plastics industry has been experiencing its “golden years,” blessed by strong demand from China.
The conference highlighted the opportunities for polyolefins and elastomers in Southeast Asia. The global and future trends in product development and migration were also presented. An overview of the future of polyolefins and elastomers was presented by Dr. Deepak Parikh, County Director-India, of Dow Chemical Company in India. The presentation was followed by an insight into the new directions for product developments in Japan by Dr. Kashiwa, a Senior Fellow at Mitsui Chemical Company in Japan.
New product innovations in polyolefins and elastomers and advances in polyolefins product technology were emphasized at the conference. Dr. Deen Chundury, Director of Technology at Asahi Kasei Plastics North America, Inc., provided a global compounder perspective of taking polyolefins to the next level of value-addition.
An overview of the polyolefin converting industry was provided by Mr. Somsak Barrisuttanakel, President of TPBI in Thailand. The presentation was followed by a discussion on novel value-added polyolefin hybrids by Mr. Junji Saito of Mitsui Chemicals in Japan. Mr. Gen Kanai, Senior Research Scientist at JPP Corp. in Tokyo, Japan discussed air-quenched blown film by metallocene random polypropylene.
The global trends in olefins and alternative feedstocks were explained by polymer products migration from China to North America by Dr. Gyung Ho Song, President of Creation Corp. in Seoul, S. Korea, and NOVA’s approach to polymer modification by Dr. Shelly Martel, Global Business Development Director at Nova Chemicals.
Polyolefin catalyst and process developments were also discussed. Dr. Jim Bogdanor, R&D Manager at W.R. Grace Co. in Baltimore, MD gave an update on polyolefin catalysts, while Dr. C.P. Cheng, Chief Technology Officer of Shanghai Sud Chemie Jinhai Catalyst Co., Ltd. in Jinshan, Shanghai, P.R. China gave an update on polypropylene catalysts. The progress in MgCl2-supported TiCl4 catalyst and the future direction of olefin polymerization catalysts was presented by Dr. Shin-ichi Kojoh, Polyolefin Catalyst Team Leader at Mitsui Chemicals in Japan. Dr. V.K. Gupta, Vice President -R&D of the Polymer Sector at Reliance Industries, Ltd. spoke on the advancements in external donor technology of supported titanium catalysts for tailoring polypropylene product catalysts. Robert Patterson, Director of New Market Development of PQ Corp. presented on high-performance silica-chrome catalysts for high-density polyethylene production. The final presentation was on the commercialization of custom metallocene catalysts, which was given by Dr. Keng-Yu (Ivan) Shih of W.R. Grace Co. in Baltimore, MD.
All of these issues were summarized and expanded on by Chemical Market Resources, Inc. during a comprehensive panel discussion.
Chemical Market Resources, Inc. extends its sincere gratitude to all of you who made this year’s FlexPO such a success.
Polyolefin producers report 3rdquarter earnings
Dow Chemical
Dow Chemical Company reported sales of $13.6 billion for the third quarter of 2007, a 10 percent increase compared with the same period in 2006. Profit before tax for the third quarter was $1.1 billion, including a $59 million pretax charge for purchased in-process research and development costs related to recent acquisitions. This compares with $670 million in 2006, which included pretax charges totaling $579 million for restructuring activities.
Net income for the third quarter was $403 million, reflecting the impact of a charge to the tax provision of $362 million arising from a change in German tax law and the charge for purchased in-process research and development referenced previously. Dow reported earnings of $0.42 per share, including the impact of the items referenced above and reflecting a higher underlying tax rate than seen in recent quarters.
Performance Plastics – In the Performance Plastics segment, sales for the third quarter were $3.88 billion, an increase of 12 percent compared with the same period in 2006. Volume climbed 7%, with very good demand in Europe, Asia Pacific, Latin America, and IMEA more than offsetting a decline in North America. The Specialty Plastics and Elastomers portfolio achieved its third consecutive quarter of record sales, with particular strength in the Performance Elastomers and Plastomers business, which reported continued high demand for ENGAGE™ polyolefin elastomers and early success with its newly launched INFUSE™ olefin block copolymers. The segment’s Wire and Cable business also reported a good quarter, as ongoing demand for fiber optic cable worldwide and for power distribution products in Europe and Asia Pacific more than offset a decline in U.S. housing and automotive applications. Third quarter EBIT1 for the segment was $409 million, compared with $144 million in the same period last year which included restructuring charges of $242 million.
Performance Chemicals – Sales in the Performance Chemicals segment were $2.15 billion for the third quarter of 2007, 7 percent higher than the $2.01 billion in the same period last year.
Basic Plastics – Basic Plastics sales rose 7% in the third quarter, from $3.11 billion in 2006 to $3.32 billion in 2007. Price was up 5%, with healthy improvements in all geographic areas outside North America and a double-digit increase in Europe. Volume edged 2% higher compared with the same period last year, as robust demand in Europe and the Asia Pacific more than offset a decline in volume due to last year’s plant shutdowns in Canada and the sale of the Company’s Safripol business in South Africa. The PE business reported a solid quarter, with double-digit sales increases in both Europe and Asia Pacific compared with the same period last year. Fundamentals remained sound across the globe, with solid demand from a broad variety of end-use applications, including packaging, where polyethylene is increasingly being used as a more sustainable alternative to glass and metal. Polypropylene and Polystyrene also posted healthy results. Polypropylene recorded good demand in both North America and Europe, enabling price increases and allowing the business to shift more of its product to higher-value applications including pipe and durable goods. Equity earnings declined in the third quarter of 2007 compared with the same period last year, as better results at EQUATE failed to offset a decline at Equipolymers – due in part to the change in German tax laws – and a decline at Siam Polyethylene. Third quarter EBIT for the Basic Plastics segment was $556 million, compared with $592 million in the same period in 2006 which included restructuring charges of $16 million.
Lyondell Chemical
Lyondell Chemical Company announced income for the third quarter of 2007 of $206 million, or 78 cents per share on a fully diluted basis. For the first nine months of 2007, income from continuing operations was $483 million, or $1.83 per share on a fully diluted basis.
Ethylene, Co-products, and Derivatives Segment — The primary products of this segment are ethylene, ethylene co-products (propylene, butadiene, and benzene), and derivatives of ethylene (polyethylene, ethylene oxygenates, and vinyl acetate monomer or VAM).
3Q07 v. 2Q07 — Ethylene and ethylene derivative product sales volumes decreased by approximately 140 million pounds (approximately 4.5 percent) versus the second quarter of 2007 due to lower derivative sales. Compared with the second quarter, our quarterly average prices for ethylene, polyethylene, and ethylene glycol increased by approximately 6 cents, 5 cents, and 3 cents per pound, respectively. The company’s average cost-of-ethylene-production metric (COE) increased by approximately 6 cents per pound versus the second quarter primarily due to increased production costs from crude oil-based raw materials. The cost of ethylene production from natural gas-based raw materials also increased; however, the impact was somewhat smaller within our portfolio. Acetyls’ results increased by approximately $10 million as a result of higher product prices.
3Q07 v. 3Q06 — Ethylene and ethylene derivative product sales volumes increased by approximately 110 million pounds (approximately 4 percent) versus the third quarter of 2006. The quarterly average prices for ethylene and polyethylene each decreased by approximately 1 cent per pound, while our ethylene glycol price increased by approximately 3 cents per pound. The company’s average COE metric increased by approximately 6.5 cents per pound primarily due to increased costs from crude oil-based raw materials. Acetyls results improved by approximately $10 million as a result of increased acetic acid and vinyl acetate monomer prices. Higher incentive-related compensation costs reduced the segment’s results by a total of approximately $25 million.
Dow Chemical executive talks joint-venture possibilities
Dow Chemical executive gave more insights into how a major joint-venture deal might look for the chemical giant while continuing to downplay the possibility of a merger.
Dow Chemical with more than $40 billion in market capitalization, has been actively tying up its business with low-cost feedstock providers to hedge against the rising cost of raw materials. Since 2002, feedstock has climbed from 22% of costs in 2002 to 40% more recently. Speculation on a possible merger or joint-venture deal has been adding volatility to the stock over the past year.
Speaking on the call with analysts, Chief Executive Andrew Liveris said, “Whatever a new entity looks like, let’s call it a joint venture, will have to be a growth company…not just a consolidation play, not just an exit strategy, not a leverage play but a growth company.”
Secondly, it has to preserve Dow Chemical’s integration, particularly in its performance plastics and chemicals businesses, and provide a petrochemical “cracker” that can support the company’s broad portfolio, he said.
“A strategic partner…is almost certainly going to have access to feedstocks somewhere in the world, notably the Middle East, but not just there,” Liveris said. “They are going to be able to provide us those feedstocks on an ongoing basis, not just on one project.”
Liveris then held up Dow’s Kuwati partner and ethylene producer MEGlobal as the right kind of partner for Dow Chemical, praising the firm’s global-wide footprint.
For the third quarter, earnings from the Dow’s joint ventures were down 7% but remained up 14% year to date. The ventures have also helped the company achieve more than half its revenue stream from outside the U.S.
Comments: There has been a lot of speculation regarding Dow Chemicals’ future strategy – these speculations increased when Dow recently postponed one of its analyst meetings. Since the beginning of 2007, Dow has been looking at options for joint ventures or divestiture in commodity plastics and options for acquisitions in specialty areas.
The strategy outlined by Dow indicates that they are looking at the company in terms of basics and performance products. For the basics portfolio, Dow is looking for joint venture options with companies that have feedstock advantage while the company will continue with a strategy focused on innovation and differentiation for the performance products portfolio.
The current remarks by Dow during its earnings call seem to be in line with the outline strategy and other public statements made by the company throughout the year. There are many speculations regarding the potential joint venture – it is hard to speculate who the joint venture partner would be but it is much easier to understand the nature of the joint venture and the characteristics of the JV partner. The characteristics of the joint venture partner would include: (1) sustained access to low-cost feedstock, (2) access to growing markets, and (3) the ability to understand and operate Dow’s integrated portfolio. Any player fitting the above characteristics would be a suitable JV partner for Dow. It would seem that these characteristics are more prominent in strategic buyers/partners than financial buyers/partners.
Basell stopped producing polypropylene in Varennes, Quebec in 2008
Basell announced that it will stop producing polypropylene at its Varennes, Quebec site in April 2008. The plant is expected to continue normal operations until the time it ceases production.
According to the company, Basell has been present in Varennes for thirty years, so this was not an easy decision. Although the initial slurry technology was replaced at Varennes in the late 1980s with a single Spheripol process plant, as a stand-alone site with small capacity, the operating costs are no longer competitive.
This past June, Basell announced that it would also stop producing polypropylene at its Sarnia, Ontario site in mid-2008.
Production will be shifted from two Canadian facilities to other Basell and Basell-affiliate sites that utilize advanced Spheripol or Spherizone process technologies. In addition to being more cost-effective, this will also allow Basell to improve our portfolio of grades and enhance overall product quality which will benefit its customers.
Basell currently operates two polypropylene lines in Bayport, Texas, and is in the process of re-starting a third line at that site. The company also has two polypropylene lines in Lake Charles, Louisiana. All of these units use Spheripol process technology. Basell’s joint venture in Mexico, Indelpro, operates a Spheripol process line and is building a new 350 KT Spherizone polypropylene plant at Altamira which is scheduled to start up in early 2008.
Comments: Basell has been rationalizing its capacity to improve its cost position and product offering. Earlier this year Basel announced the closure of its Ontario site. The timing of the shutdown of both these facilities matches the timing of the restart of the facility in Texas. The facility in Texas offers newer assets and economies of scale. After the acquisition of Lyondell, Basell may also have a better feedstock position in the US. Lyondell is long on propylene while Basell is short on propylene – this might help the combined company have a better cost position. This year Basell’s joint venture in Mexico is also expected to start the new Spherizone plant.
European Union grants approval for Basell to acquire Lyondell
European Union antitrust regulators cleared Basell’s $12.6 billion acquisition of its U.S. rival Lyondell Chemical Co., a deal that will create one of the world’s largest chemical companies.
The European Commission said the 8.79-billion euro buyout did not pose any competition concerns. The EU executive said the companies’ activities in the EU “are largely complementary” due to their different production areas.
Lyondell, based in Houston, Texas, produces ethylene and propylene oxide, used to produce of variety of chemicals or chemical products. Basell, with headquarters in the Netherlands, is owned by U.S.-based Access Industries, a private industrial holding company founded by industrialist Len Blavatnik, who serves as chairman.
The combined Basell-Lyondell would have annual revenue of more than $34 billion and more than 15,000 employees around the world, the companies said.
The company is working on finding a new name for the combined Basell-Lyondell entity.
Comments: For more information on the acquisition of Lyondell by Basell, please refer to our analysis.
Mittal in five prong petrochem MoU with HPCL, GAIL, Oil India, and Total
LN Mittal has extended his group’s foray into oil exploration and refining with an entry into petrochemicals to widen his presence in the hydrocarbon value chain. Luxembourg-based Mittal Investments Sarl has signed an MoU for setting up an integrated refinery-cum-petrochemicals complex at Visakhapatnam, with Indian refiner-marketer Hindustan Petroleum, Indian gas utility major GAIL, Oil India Ltd, and French major Total. Feasibility studies are being conducted for the project in which Total will take the lead. GAIL would be responsible for studying the petrochem unit’s viability. About 2,500 acres near HPCL’s existing 7.5 million tpa refinery at Vizag have been acquired for the project.
The estimated project investment outlay will be US$6 billion for the plant that will have the capacity to process 15 million tpa of crude a year and produce 1 million tpa of petrochemicals. The exact equity structure and project finance will be finalized upon completion of feasibility studies.
This is Mittal’s second venture with HPCL – the first one being a 49% partnership in HPCL’s Bhatinda refinery. Mittal has also formed 2 JVs with ONGC for acquiring acreages and oil/gas transportation.
Comments: Mittal has been very successful in his acquisitions and joint ventures in the steel industry and now he is using the same strategy in the petrochemicals industry. The petrochemical industry has been growing at a very healthy rate in India and with this MoU, Mittal Holdings is planning to further solidify its position in the Indian petrochemical industry.
Basell announces expansion of its polybutene-1 plant in The Netherlands
Basell announced that it plans to debottleneck its four-year-old, 45 KT per year PB-1 plant located in Moerdijk, The Netherlands, which will increase its nameplate capacity to 67 KT per year in 2008.
According to Basell, the company will continue to strengthen its capability and assets in the markets where its customers are investing and where there is high demand for resins and services.
Basell uses its proprietary manufacturing process to produce PB-1 products, which possess outstanding properties that combine flexibility and excellent creep resistance. PB-1 is selected by customers for use in a wide range of applications, including easy-opening packaging, hot melt adhesives, polyolefin modification, sanitary pipe, as well as surface heating and cooling systems. As an all-polyolefin resin, PB-1 is also recyclable.
Comments: Polybutene-1(PB-1) is used in various applications in the industry. The 2 main markets are Film and Piping. In the film application, PB-1 can improve sealing performance for applications such as carton liners for cereal packaging or prepacked products such as cold meats, cheeses, and smoked salmon. In Europe, PB-1 has been developed over the past 30 years to be commonly used for hot and cold water plumbing and heating piping systems. The main advantage PB-1 brings is that it does not corrode or become coated with a mineral deposit in hard water areas, it does not split at sub-zero temperatures, and is quieter, and does not have a water hammer effect. PB-1 is not used for piping applications in North America due to the Lawsuit that Shell faced when it supplied PB-1 for plumbing applications. The court held Shell liable for defective pipes causing leakage even though there was no evidence that the polybutylene resin supplied by it was defective.
The increase in capacity for PB-1 will cater to the growing demand for the material in piping applications especially for new housing construction or replacement of the old copper pipes in Europe, especially Eastern European countries as it catches up to Western Europe.
Volker Trautz to be the CEO of Basell-Lyondell
Basell CEO Volker Trautz has been selected to become CEO of the combined Basell and Lyondell Chemical once the merger of the companies is completed, according to a recent Lyondell announcement to employees.
Dan Smith, chairman and CEO of Lyondell, has been offered the position of chairman of the combined company. “I expect to meet again with Len Blavatnik, the new company’s owner, soon to discuss that opportunity,” Smith said in a memo to employees that was included in Lyondell regulatory filings.
The deal should close sometime in the fourth quarter, Lyondell says. “While the closing date of the merger has yet to be determined, we are working toward a completion date in the fourth quarter of 2007, although there can be no assurance regarding the exact timing,” Lyondell says. A special meeting of Lyondell shareholders has been called for November 20 to vote on the proposal.
FTC to analyze Hexion-Huntsman deal
Hexion Specialty Chemicals Inc. said in a regulatory filing the U.S. Federal Trade Commission under the anti-trust act has sought more information on the company’s pending acquisition of Huntsman Corp.
This is the second request from the FTC and will extend the waiting period by 30 days from the date of the parties’ substantial compliance with the request.
Hexion Specialty, a unit of private equity firm Apollo Management, July, had said it agreed to buy chemicals company Huntsman for $28 per share in cash.
Comments: Hexion after the acquisition of Huntsman will have combined sales of $13 billion on an EBITDA of $1.6 billion. Revenues for Hexion will increase by 2.5 times and EBITDA will increase by 2.2 times. EBITDA over sales for Hexion will increase from 9.6% to 14%. Across its newly-transformed portfolio, Huntsman has a #1 or #2 position globally. Hexion also has the number 1 position in the majority of its businesses. The combined businesses therefore will have leading market positions. Due to the market shares of the combined company, there is an FTC inquiry into some of the business units.
PetroVietnam allocates $6 billion for the second refinery project
State-owned PetroVietnam has allocated $6 billion toward the construction of the country’s second refinery project at Nghi Son in the central province of Thanh Hoa, the Vietnam News Agency reported Wednesday.
“PetroVietnam will contribute between $1.8-2 billion or 30% of the combined capital needed to build the complex,” Dinh La Thang, PetroVietnam’s chairman said. Other major domestic investors include the Vietnam Post and Telecommunications Group, the Bank for Foreign Trade of Vietnam, the Vietnam Bank for Agriculture and Rural Development, the Vietnam National Petroleum Corporation, and other shareholders, with a contribution ratio of 8%, 10%, 10%, 10%, and 32% respectively, the report said.
PetroVietnam is currently negotiating with Idemitsu of Japan to form a joint venture (for the project),” said Thang. PetroVietnam has also signed a deal with Dutch trader Trafigura and Swiss-based oil trader Glencore to meet the domestic need for crude oil for the next 30 years and into the long term, Thang said without elaborating.
Vietnam, which currently exports all its crude oil output of some 300,000 b/d, is widely expected to become a net oil importer once its planned refinery projects come onstream. The Nghi Son refinery is expected to have a capacity of around 6.5 million mt/year (130,000 b/d) and is slated to come onstream by 2013, the VNA quoted another official as saying.
PetroVietnam is currently in the process of setting up Vietnam’s first refinery, a 130,000 b/d plant at Dung Quat in the central province of Quang Ngai. The project, 100% owned by PetroVietnam, is expected to cost around $2.5 billion and is scheduled to become operational in 2009. PetroVietnam has taken loans of around $1.3 billion and has raised funds in the international bond market to fund this refinery project. PetroVietnam has also received government approval for a third refinery with a capacity of 7 million mt/year in the Long Son area of the southern province of Ba Ria-Vung Tau and is looking for investors in this project, the VNA said.
Comments: The first refinery by Petrovietnam took a long time to materialize and this might be the case with the second one as well. On the positive side, the addition of refineries in the country will pave the way for more investments in petrochemical complexes and help in the country’s economic growth.
Solvay Engineered Polymers introduces new adhesive tie-layer material
Solvay Engineered Polymers, Inc. has introduced its first adhesive tie-layer material for use in the production of the extruded sheet. The new ADDHERE™tie layer is designed specifically to bond an acrylic layer onto a substrate of thermoplastic polyolefin (TPO) for use in thermoforming applications.
According to the company, the ability of the ADDHERE material to bond simultaneously to both an acrylic and an olefinic layer is a breakthrough in the production of olefinic sheet stock. ADHERE adhesive tie layer is a pelletized material that can be co-extruded with a TPO substrate, to which acrylic film roll stock can be laminated in-line. Or sheet producers can tri-extrude each of the three materials – acrylic, a tie layer, and TPO – from the melt phase to produce a multi-layer sheet.
The new ADDHERE tie layer can be colored and recycled – Color can be introduced into an acrylic/TPO sheet in the opaque tie layer. With the acrylic layer free of pigment, it can provide optimum gloss, depth of image, and scratch resistance. At the same time, the absence of pigment from the TPO substrate means its performance properties can be easily and economically controlled.
Both major forms of scrap produced in the process of producing a sheet for thermoforming can be recycled back into the TPO substrate – both the line-trim from the sheet extrusion and the trim removed after the forming of the final shape. Solvay Engineered Polymers provides guidelines for recycling material containing the new ADDHERE™ tie layer so that the properties of the TPO substrate are maintained.
Bonding an acrylic cap to a TPO substrate with an ADHERE tie layer increases the melt strength of the resulting sheet. Compared with that of a monolayer TPO, sheet sag in the thermoforming process is improved by up to 15%, depending on the thickness of the multilayer sheet. ADDHERE adhesive tie layer has been developed to work with three different extrusion-grade TPO and engineered polyolefin materials produced by Solvay Engineered Polymers: DEXFLEX® E118 thermoplastic polyolefin, SEQUEL® E3000 engineered polyolefin, and SEQUEL® E5800 engineered polyolefin. This selection of substrate materials provides a wide range of economical performance alternatives.
Acrylic/polyolefin sheet could provide advantages over the ABS, metal, or fiberglass materials now employed in large, durable, and decorative applications. Compared with ABS, polyolefins exhibit superior low-temperature ductility and resistance to stress cracking – particularly in parts that involve movement or vibration.
A. Schulman and Delphi to sell TPO blend
Automotive supplier Delphi Corp. and compounder A. Schulman Inc. announced their plans to jointly sell the TPO blend developed by Delphi.
Delphi spent more than four years developing a thermoplastic polyolefin blend for slush molded skins on instrument panels and door panels. Rather than keeping that blend as a proprietary secret, though, Delphi has decided that by teaming with Fairlawn, Ohio-based Schulman to license the blend for wider use, the company can get more exposure. It is a collaborative approach to problem-solving that is important for the industry, Delphi executives said. It meets automakers’ requests to make materials available throughout the supplier base and also helps to widen Delphi’s customer base.
Slush molding has been a standard processing system for PVC-based auto interior skins for decades, but as the auto industry moved away from PVC, molders moved toward TPO. Delphi has produced TPO skin with vacuum forming but wanted a TPO blend that could be used in slush molding — directly replacing PVC.
Slush molded skins are better able to conform to tight angles and deep curves, giving automakers and designers more interior options.
Schulman can market and sell the resin without the same complications of competition as Delphi could on its own, and also has a global network for producing and supplying the blend.
The wider industry exposure for Delphi’s resin also should help to provide another stable platform for Delphi’s interiors group as it prepares to spin away from Delphi. The company — which has been operating in Chapter 11 bankruptcy protection for two years — has a deal on the table to sell the interiors group to private equity buyer Renco Group Inc. of New York.
Comments: Delphi’s move to team up with A. Schulman Inc. will allow it to expand its exposure to a larger consumer base. The move will let Delphi take advantage of marketing its proprietary TPO resin that it developed for slush molded skins on instrument panels and door panels. A Schulman is a global company supplying high-performance plastic compounds and resins with 14 manufacturing facilities in North America, Europe, Mexico, and the Asia-Pacific region.
Delphi is a former subsidiary of General Motors and is one of the world’s largest makers of auto parts.
The company’s primary business divisions include vehicle electrical systems, powertrain systems, electronics and safety parts such as sensors, security systems, seat belts, airbags, navigation and entertainment systems, Steering, and Thermal Systems. Delphi’s main business comes from former parent GM.
California passes bill banning the use of phthalates in toys & child-care products
California Gov. Arnold Schwarzenegger signed a bill banning phthalates in children’s products. The bill prohibits the manufacture, sale, and distribution of toys and childcare products used by children under the age of three that contain phthalates, which have been linked to cancer and reproductive defects, according to the governor’s office.
The bill aimed at the chemicals used to help mold and smooth toys and other plastic products such as teething rings comes amid growing concern among U.S. consumers over substances used by manufacturers in China to make toys, prompting recalls, including by Mattel Inc., the world’s biggest toy maker.
“While I believe the circumstances related to phthalates warrant taking action now, I do not believe that addressing this type of concern in the legislature on a chemical-by-chemical, product-by-product basis is the best or most effective way to make chemical policy in California,” Schwarzenegger said.
Comments: California is usually the first state in the US to implement environmental-based regulations. The ban on phthalates has already been in effect in Europe and South Korea and now it has been extended in the US also. Plasticizer producers have been working on introducing phthalate alternatives and have been successful so far in Europe. The six phthalates that are under scrutiny include: (1) di-isononyl phthalate (DINP), (2) di-2-ethyl hexyl phthalate (DEHP), (3) di-n-octyl phthalate (DNOP), (4) diisodecyl phthalate (DIDP), (5) butylbenzyl phthalate (BBP) and (6) di-butyl phthalate (DBP).
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