My Turn – Dr. Balaji B. Singh – FlexPO2007 October 17-19th, 2007 and Polyolefins Downstream Processing Workshop- October 16th Bangkok , Thailand
Top 3 Reasons why you should attend FlexPO2007 in Bangkok:
Number 3 – First opportunity to meet major suppliers, Government, and downstream processors in Thailand- the Gateway to China;
Number 2 – Come and Meet your future customers – the downstream converting industry in Thailand, and ASEAN Countries;
Number 1 – Bangkok – Hospitality, Food, Tourism; The Future Growth and an Opportunity to meet future growth region
For more information visit www.CMRHouTex.com
Dow considers more investments in Thailand
Dow Chemical could invest in five petrochemical projects in Thailand if the company’s board of directors approves the plan in October according to The Nation newspaper.
The projects could be worth up to $2 billion and would require approval from Dow’s board. In October 2006, Dow agreed with Siam Cement Public Company Limited to invest in a plant in Map Ta Phut in the Rayong province.
Comments: Dow Chemical has been planning investments outside the US. The company is planning the largest grassroots complex in JV with Saudi Aramco. The company has a relationship with Siam Cement in Thailand to manufacture olefins and downstream products. To capture the growing Asian market the company may create another JV with Siam Cement in Thailand. It will be well-positioned with complexes in Asia and the Middle East.
Siam Cement Group (SCG Chemicals Ltd.) one of the two largest chemical companies in Thailand already has a working relationship with Dow Chemical Company for most of the polyolefins distribution and sales. SCG is one of the fastest growing companies in Thailand and is also one of the main sponsors of FlexPO2007 October 17-19th.
Dow introduces AMPLIFY™ IO functional polymers
Dow Chemical Company announced the addition of AMPLIFY™ IO to the company’s family of AMPLIFY functionalized polyolefins. The versatile Ionomers delivers a combination of performance, processing, and economics that makes them ideal for demanding applications such as food packaging, medical and other retail packaging, molded durable goods, and impact modification for nylon.
According to Dow, AMPLIFY IO Functional Polymers offer: (1) excellent optics for good product appearance; (2) high-melt strength for outstanding thermoformability; (3) impact and abrasion/scratch resistance for durability; and (4) adhesion to polyethylene, metals, glass, and nylon.
The AMPLIFY family of polymers benefits coaters, compounders, molders, and fabricators in and across a number of markets. The AMPLIFY IO polymers can be processed via injection molding, films, and coatings. In addition, they provide exceptional processability during extrusion.
The AMPLIFY™ IO functional polymers, ethylene acrylic acid copolymers, are currently available in a variety of sodium and zinc grades to suit different market and application needs. These Ionomers join existing AMPLIFY products AMPLIFY EA ethylene-ethyl acrylate (EEA) copolymers, and AMPLIFY GR maleic anhydride (MAH) grafted polyolefins.
Comments: Dow already has an existing portfolio of acid copolymers and tie-layer resins under the AMPLIFY umbrella. The company’s AMPLIFY GR grades are maleic anhydride grafted polyolefins used in various applications such as impact modification of nylon and coupling agents for PP.
Their AMPLIFY EA are acid copolymers based on ethylene and ethyl acrylate. Now Dow is introducing AMPLIFY IO which is ionomers. Ionomers are typically derived by neutralizing acid copolymers with sodium or zinc ions. The most important application for ionomers includes (1) vacuum-processed meats, (2) skin packaging, (3) golf ball covers, (4) bowling pin covers, and others. Ionomers are used in these applications because of their superior properties such as grease resistance, hot tack, clarity, barrier properties, impact strength, and excellent adhesion to polyethylene and aluminum foil.
Currently, DuPont is the largest producer of ionomers in the US.
In the past, ionomers, the sodium salts of acid copolymers were the center of several technology litigations. Only DuPont was allowed to make and supply ionomer salts in North America under the trade name SURLYN®. Dow was allowed to make acid copolymers and supply/assist customers in making the ionomers – but was not permitted to make ionomers themselves. ExxonMobil (Then Exxon Chemicals) was allowed to make ionomers in Europe only. All this has changed since the patents for ionomers expired around the mid-90s.
An acid copolymer/ionomer is currently the only solution to the lack of polarity in a polyolefin molecule – thus restricting their use in adhesives, composites, paintable parts, etc.
PolyMirae introduces high gloss PP to replace ABS in refrigerator visible parts
PolyMirae Company Ltd, a joint venture company of Basell in Korea, has produced a new polypropylene grade that has been selected by Samsung’s appliances division for the manufacture of refrigerator visible parts. The resin has replaced ABS and has enabled the Korean appliance manufacturer to achieve cost savings.
There are three ranges of refrigerators manufactured in Korea by Samsung’s appliances division that now fit a total of 23 different polypropylene components, ranging from ice trays to vegetable baskets and shelf units.
According to the company, the lower resin costs compared with styrenic materials, such as ABS and HIPS, PP’s low density means that manufacturers can get up to 14% more components per kilo of resin compared with competing materials.
The shift to polypropylene is part of Samsung’s strategic drive to increase the competitiveness of its white goods products. The specification for the materials for Samsung’s refrigerator applications was fairly stringent.
Together with the Basell R&D group, PolyMirae has been able to develop a copolymer reactor grade meeting Samsung’s specific request.
Comments: This is a welcome development in PP product attributes to compete with the styrenic materials, especially replacing the more expensive ABS resin in selected applications such as refrigerator parts – ranging from ice trays to vegetable baskets and shelf units. The key advantages are the cost and the lower density of this unique PP copolymer – Moplen EP649N that is produced by Basell’s advanced polymerization process. This may be just the beginning of new product opportunities for this interesting material that has high stiffness and impact resistance at low temperatures, coupled with excellent gloss and scratch resistance. Hopefully, other PP producers will follow suit – offering competitive versions.
Borealis introduces PP grade for beverage caps
Borealis has designed a unique polypropylene (PP) grade, RE450MO, to produce caps for bottled water, as well as sports and energy drinks. This new solution supports the beverage industry’s ambitions to create ever-more sophisticated and differentiated user-friendly closures. RE450MO retains the natural taste of the liquid inside while delivering design possibilities not previously available with existing polyethylene (PE) or PP caps.
RE450MO is a new solution based on Borealis’ unique Borstar® technology. This proprietary Borealis technology allows the tailoring of molecules to fit the needs of the value chain by combining good mechanical properties with good processability. The strength, flexibility, and easy integration of coloring and organoleptic properties of the new grade, provide product differentiation and recognition for brand owners and attractive, safe, user-friendly packaging for consumers.
The material does not contain additives that could taint the natural taste or odor of the bottled product. Retaining the natural taste and odor of a bottled liquid is a top priority. Until recently, the organoleptic properties of PE have made it the only option for unlined caps used for taste-sensitive drinks such as water. RE450MO contains ultra-low levels of volatile organic compound (VOC), giving the material high purity. Tests have shown that it fully matches the excellent taste and odor properties of standard PE grades commonly used for beverage caps.
From a design perspective, RE450MO offers good flow, low-stress whitening, and good hinge performance. Its flow flexibility allows versatile designs based on transparency, translucency, or coloring. Hinges and closure fittings can withstand the stress of repeated use with minimal discoloration.
Borealis worked closely with Seaquist Closures, a leading manufacturer of dispensing closures and systems, to introduce this pioneering development in the market.
Comments: Another innovative PP product by Borealis based on the unique Borstar® technology in meeting the market demand – the beverage industry’s ambitions to create ever-more sophisticated and differentiated user-friendly closures. Until recently, the organoleptic properties of metallocene -PE have made it the only option for unlined caps used for taste-sensitive drinks such as water. Thanks to the Borealis process/catalyst innovations, this new product – RE450MO contains ultra-low levels of volatile organic compound (VOC), giving the material high purity. Based on the organoleptic and purity properties, this new PP material may be derived from Borealis’ single-site catalyst technology. Hopefully, we will see other interesting applications for this new material.
Dow Europe GmbH introduces new polypropylene products, including advances in melt flow rate and taste and odor performance
Dow Europe GmbH announced the introduction of approximately twenty new and upgraded polypropylene products for rigid packaging and film converters, to be produced at its Wesseling plant in Germany. The new products include a random copolymer for thin-wall injection molding with a 100 melt flow rate (MFR) and outstanding taste and odor performance, and a state-of-the-art 42 MFR random copolymer for food contact injection molding applications. These products are the first wave of new offerings from the Dow Horizon Project, a new initiative by Dow to stretch the polypropylene performance envelope by leveraging the latest UNIPOL™ high activity catalyst.
Among the approximately twenty new and upgraded polypropylene products launched by Dow today is DR7032, the first random copolymer to combine a 100 melt flow rate (MFR) with outstanding taste and odor performance. The key benefit of the high melt flow rate is that it enables converters to improve their productivity by reducing cycle times. In addition, DR7032 offers a good visual appearance in finished injection molded articles, which is a top priority for brand owners and consumers. Also introduced today is DR7023, a 42 MFR random copolymer for food contact injection molded applications that delivers excellent taste and odor performance.
Comments: The total demand for polypropylene in Europe is close to 10,000 KT with 50% of the total demand consumed in the injection molding application which includes 1) rigid packaging, (2) consumer/industrial, (3) automotive, (4) medical products, and others. The end-use applications for these markets include caps & closures, housewares, thin-walled containers, thick-walled containers, consumer products, appliances, toys, interior & exterior automotive, under-the-hood applications, and others.
The film market has one of the fastest growing applications consuming close to 16% of the total polypropylene European demand. The growth for polypropylene demand in Europe is at 4.8% with Eastern Europe growing even higher at 6.7%.
Dow’s introduction of a series of polypropylene grades will allow it to take advantage of the growing film and rigid converting market in Europe.
Dow to construct new solution styrene butadiene rubber (SSBR) plant in Europe
Dow Chemical announced that it is constructing a new Solution Styrene Butadiene Rubber (SSBR) plant in Schkopau, Germany. Scheduled for completion in the second half of 2008, the world-scale facility will have a production capacity of 60 KT (132 MM lbs). The new facility includes a capacity rights agreement with JSR Corporation, based in Japan. Dow will own and operate the new asset.
SSBR is the fastest-growing segment of the rubber market, with an anticipated annual growth rate of five to six percent over the next several years.
Dow is a leading manufacturer of synthetic rubber including SSBR, Styrene Butadiene Rubber (SBR), and Poly-Butadiene Rubber (PBR), with facilities also in Germany and France. Dow is back integrated into butadiene and styrene, the major raw material used in the production of SSBR, which enables the company to maintain a reliable supply with cost-advantaged economics.
Comments: The main application for solution SBR (SSBR) is in producing tires. This product is increasingly being used in many applications where higher performance is required. The main advantage of using SSBR-based tire application is that it has less rolling resistance without sacrificing traction as compared to Emulsion SBR. This property leads to vehicles with better tire performance and higher fuel efficiency. Solution SBR in recent years has experienced an increase in demand due to the automotive industry’s move to produce vehicles that have lesser fuel consumption. Dow Chemical’s move to build the plant allows it to take advantage of the SSBR growth and increase its SBR market share.
Iranian company considers joint venture with IOC
Iranian company, National Iranian Oil Company (NIOC) announced that it is planning to form a joint venture with India to run an olefins project. Indian Oil Corp. (IOC) was said to be the likely joint venture candidate, by acquiring a stake in an existing facility. IOC has plans to expand its presence in the petrochemical business by building large facilities. Among some of its projects are a 120,000 ton/year linear alkylbenzene (LAB) plant in Gujarat and a 550,000 ton/year paraxylene/purified terephthalic acid (PX-PTA) facility.
Comments: Economies in Asian counties such as India and China are exhibiting robust growth. Economic growth has also translated into healthy growth for the petrochemical industry. This growing demand needs a competitive supply source. All the countries in the Middle East are being targeted by different countries to secure long-term contracts for cost-advantaged feedstock. These talks are in very early stages and it is hard to predict the outcome of such negotiations. India has also been having discussions with Iran about a pipeline for the supply of natural gas. It would seem that while India is negotiating with Iran the country would also be looking to other countries in the Middle East for similar ventures.
Formosa Plastics scales down investments in China
Formosa Plastics Group (Taipei) has scaled down a previously announced multi-billion-dollar investment project in mainland China. Formosa Plastics Corp. (FPC), the parent of Formosa Plastics Group, has dropped plans to build a second polyvinyl chloride (PVC) unit at the company’s Ningbo, China petrochemicals site.
The company’s existing PVC plant at Ningbo is nonintegrated and has a capacity of 400 KT/year. The second project would have involved building an integrated complex including chloralkali, ethylene dichloride, vinyl chloride monomer, and PVC plants. It would have formed part of a previously announced upstream investment by the Formosa group, including a 10-million m.t./year refinery and a 1.2-million m.t./year ethylene plant. The group also dropped an originally planned isocyanates complex at Ningbo because of environmental concerns and oversupply.
The rest of the Ningbo investment cannot progress until the Taiwanese government relaxes its rules on upstream investment in mainland China, however. Formosa Plastics Group submitted its original proposal for approval by the Chinese government about two years ago and its plans are still undergoing environmental evaluation. Formosa may find it difficult to obtain a permit to build the refinery because its application is for a 100% Formosa-owned complex, C.T. Lee says. China likes to have control of its refineries and may require Formosa to team up with a local partner. FPC is due to start up a 450,000-m.t./year, Novolen-process polypropylene plant at Ningbo next September and is scheduled to bring onstream an acrylics complex there in October.
Comments: Investment in commodity petrochemicals in China may be reaching a peak. Formosa’s concern about competing against coal-based PVC and overcapacity in PVC markets are the key reasons for this decision. The company is investing alternatively in debottlenecking its cracker in Taiwan.
Coal is used to manufacture acetylene which is then used to produce VCM. Coal based PVC route has a short-term cost competitive advantage over ethylene-based PVC.
DuPont to invest $200 million in new plants
DuPont Engineering Polymers announced that it will invest $200 million in new manufacturing plants and research equipment between 2008 and 2010, matching the amount the company spent from 2005-07.
The $200 million investment will be used as capital for plant operations, marketing labs, and technology labs for products such as nylon and specialty nylon.
The company plans to invest most of the amount in the Asia Pacific region.
DuPont also plans to launch commercial sales of its Sorona-brand biodegradable resin in the second half of 2007. The product will use a feedstock made from corn sugar produced at a plant in Loudon, Tenn. It then will be polymerized in Kinston, N.C., before being compounded at several DuPont locations.
The first commercial application of Sorona is likely to be in automotive electronic connectors, which could be seen on vehicles in the next two to three years, McCann said.
DuPont also expects to roll out a nanocomposite-based resin in early 2008. The material can offer stiffness and toughness in injection molded and extruded packaging applications, McCann added.
Other recent successes for DuPont applications include: (1) Rocker covers made with Minlon-brand nylon 6/6 for six-cylinder auto engines, (2) Lower-weight truck body panels made from Crastin-brand polybutylene terephthalate, (3) Blow molded air ducts made with Zytel-brand nylon for large trucks, and (4) Safety-enhanced auto headlight systems made from Zytel-brand high-temperature nylon.
In 2006, DuPont’s Performance Materials unit — including DuPont Engineering Polymers — recorded sales of almost $6.9 billion, making it the largest of DuPont’s five units. The sales mark was about 2 percent higher than its 2005 mark and represented almost 24 percent of DuPont’s total sales. The Performance Materials unit’s pretax profit of $627 million was up almost 17 percent from 2005.
Comments: DuPont has been improving its marketing and sales effectiveness. Coupled with a revitalized R&D engine (>3,000 new products over the last 3 years), DuPont has achieved 13 straight quarters of pricing gains.
Recently, there have been investments in the engineering polymers area and DuPont has announced its decision to maintain its leadership position.
Huntsman takes majority share in Saudi Polyurethanes Joint Venture
Brussels, Belgium – Huntsman Corporation (NYSE: HUN) and Basic Chemical Industries Limited (BCI) today announced they have signed an agreement to transfer majority ownership in the two companies existing Arabian Polyol Company (APC) joint venture in Saudi Arabia from BCI to Huntsman.
The joint venture manufactures and sells MDI-based polyurethane systems in the Gulf countries and will be re-named Huntsman APC. Huntsman APC will be based at the existing Dammam site on Saudi Arabia’s east coast, supported by a Huntsman sales office in Dubai.
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances, and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 14,000 employees and over 75 operations in 24 countries. The Company had 2006 revenues from all operations of over $13 billion.
BCI, Basic Chemicals Industry Group, located in Dammam, Saudi Arabia, is a producer and distributor of more than 600 chemical products in the inorganic and specialties segments (hydrochloric acid, adhesives, polyurethanes, water treatment, resins, etc.). The Group has 400 employees and an annual turnover of $ 150 million. BCI was established in 1975 as a manufacturer of commodities and specialty chemicals for local Saudi and export markets.
Comments: Huntsman’s polyurethane operations (acquired from ICI) have always been in Global Top 3 (Dow, Bayer, and ICI).
The current market focus of Saudi Arabia is on growth in China. Saudi Arabia provides an excellent location and extremely generous investment capital under the SIDF system to attract organizations to set up production facilities to address the growing markets in China.
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