BP’s olefins & derivatives unit, Innovene to be acquired by INEOS
BP announced its plans to sell Innovene, its olefins, derivatives, and refining group, to UK-based INEOS. The $9 billion cash sale, subject to regulatory approvals, includes all of Innovene’s manufacturing sites, markets, and technologies. The sale is expected to be concluded early in 2006 at which time payment will be received by BP.
BP first announced the intention of separating its olefins and derivatives business from its petrochemicals portfolio in April 2004 with an initial public offering (IPO) as one, possible, disposal option. In the interim, it received a number of approaches from companies considering a trade sale leading to this decision instead of the IPO.
According to INEOS, this acquisition will place INEOS as the world’s fourth largest independent petrochemical company.
Innovene is the 100 per cent BP-owned group created in April 2005. It has 8,000 staff, manufacturing facilities in seven countries in North America and Europe; $18 billion in revenues in 2004; $13 billion of gross assets; $9.9 billion of net assets; pre-tax profits (Jan-Jun 2005) of $0.7 billion; 18 million tons of annual petrochemicals capacity and 412,000 barrels per day of crude oil refining capacity. BP was jointly advised by Goldman Sachs and Morgan Stanley on the IPO and sale.
Comments: The acquisition will impact the individual companies more than the industry itself. Both companies have European backgrounds and BP heritage; making the integration process easy. Innovene has always been operated as a company with oil parentage while INEOS has the experience of running businesses without oil parentage. INOES with its background and experience will be able to manage Innovene acquisition and integration successfully.
This acquisition is yet another example of INEOS’ sustained goal of building a specialty chemical company with diverse businesses. The strength of Innovene in the ethylene and propylene chain will be complemented by the sound management and operational excellence of INEOS. Following a series of acquisitions led by private equity firms, the industry will welcome a more strategic acquisition by a chemical company. INEOS will continue to seek acquisition opportunities in the chemical and polymer business, typically from major chemical corporations that combine excellent people, assets, and market positions.
Please see the enclosed special article on Ineos’ acquisition of Innovene – For additional information refer to several articles in our New Generation Polyolefins related to BP, Amoco, and Innovene.
Chemical Market Resources, Inc to organize a Global Polyolefins & Elastomers Educational seminar in Singapore, covering Markets, Process/Catalyst Technologies, Opportunity Analysis, and Polyolefins Global Product Migration Issues
Chemical Market Resources, Inc is planning to organize a Global Polyolefins & Elastomers Educational seminar in Singapore, covering Markets, Process/Catalyst Technologies, Opportunity Analysis, and Polyolefins Global Product Migration Issues.
The seminar will be held in conjunction with FlexPO2006 in Singapore on 14th March 2006 at The Singapore Marriott Hotel. Please mark your calendars and we hope to see you there.
Please see the enclosed brochure for program details. For further information call Chemical Market Resources at 281-557-3320.
ExxonMobil to license PP process and product technology
ExxonMobil announced that its polypropylene process and product technology are available for license. According to the company, this technology has demonstrated some of the highest single-line production capacities up to 400 KTA. The new technology has the following advantages including (1) economies of scale, (2) reliable and cost-effective operation, (3) market-leading products, and (4) catalyst flexibility.
The investment costs of a single 400 KTA line based on ExxonMobil’s process is up to 30% less than two smaller lines of equivalent total capacity.
The licensees can access the full range of homopolymers, random copolymers, and impact copolymers in key applications such as OPP film, nonwovens, and injection molding.
ExxonMobil technology will give the licensee the flexibility to choose catalysts and suppliers in combination with ExxonMobil Chemical’s proprietary electron donor technology.
Comments: ExxonMobil’s polypropylene process technology is based on a hybridized Spheripol/Hypol process. The Spheripol process is the culmination of years of development work at Montedison, Himont, Montell, and now Basell. The first stage comprises a vertical loop reactor for the bulk polymerization of propylene to obtain homopolymer or propylene and ethylene to produce random copolymers. On exiting the first stage, the polypropylene/propylene slurry is depressurized, and the propylene is flashed off. The powder can be sent to the second stage, a fluidized-bed reactor, where a rubbery ethylene/propylene comonomer is added to obtain impact resistance. The Hypol process, which is offered by Mitsui, comprises a bulk loop reactor first stage for producing homopolymers or random copolymers plus a fluidized-bed second stage for copolymer production or for consuming excess monomer.
ExxonMobil has managed to take the best of both processes and made further refinements to provide a process that is capable of state-of-the-art single-line capacities, coupled with the flexibility to produce the full spectrum of polypropylene products. Furthermore, the ExxonMobil technology will give the licensee the flexibility to choose catalysts and suppliers in combination with ExxonMobil Chemical’s proprietary electron donor technology. ExxonMobil will join the ranks of Basell, Dow, Mitsui, Novolen, Innovene, and Chisso who are the leading suppliers of polypropylene process technologies. CMR, Inc. will be featuring ExxonMobil’s polypropylene technology in the upcoming issue of New Generation PolyolefinsBimonthly Review.
Mitsui Chemicals to increase metallocene EPDM capacity
Mitsui Chemicals, Inc. (MCI) announced its plans to construct a plant to manufacture ethylene-propylene-diene terpolymer (EPDM) using metallocene catalyst technology. The new plant will be built at Ichihara Works in Japan with an annual capacity of 75 thousand metric tons. The total investment for the plant will be approximately ¥20 billion. Construction of the plant is expected to start in August 2006 and is expected to be completed by October 2007.
MCI manufactures and sells EPDM (trade name: Mitsui EPT™), which is used in automotive parts, electric wires and cables, and other industrial parts. The decision to establish a new facility was prompted by expanding worldwide demand for EPDM and thermoplastic olefinic elastomer (trade name: MILASTOMER™), of which the main raw material is EPDM.
Currently, there are two production trains at MCI’s EPDM plant at its Ichihara Works, each of which is capable of producing 20,000 to 25,000 metric tons of EPDM per year. However, the planned new facility, which will utilize a new process based on proprietary metallocene catalyst technology, will be able to produce 75,000 metric tons of EPDM per year, the highest capacity in the world for a single train. After the launch of the new production train, MCI will provide a stable supply of high-quality EPDM as the largest supplier in Asia.
Comments: EP Elastomers have grown steadily via incremental improvement over the past 40 years or so. Growth has mainly come from the substitution of other elastomers and penetration into non-automotive markets. Over the past decade, competition from metallocene-based elastomers coupled with uncompetitive manufacturing cost economics resulting from low operating rates prompted many players to reconsider their participation in this industry. The industry seemed to be trending downward until DSM decided to rationalize capacity.
The capacity rationalization coupled with increased demand for EP Elastomers in some developing regions has caused a supply shortage over the past year or so. As a result of this demand-supply dynamic, the EP Elastomers industry has experienced a boost in profitability.
The resulting shortage in the industry as well as increased profitability has prompted many of the existing suppliers to reconsider their expansion strategies. Mitsui over several years has been expanding its Tafmer line of products. Some of the older EPDM lines were converted to accommodate the Tafmer products. The decision to further expand their EPDM assets is a result of growing EPDM markets in Asia-Pacific, especially China, and the inability of other elastomers to replace EPDM in the application requires high-temperature performance and compression set. One of the primary drivers for EPDM growth has been the automotive industry, which in Asia-Pacific is growing at a very healthy rate. Mitsui has chosen to expand its EPDM assets based on metallocene technology which should provide additional manufacturing cost benefits compared to the conventional process. Other EPDM that utilize metallocene technology includes Dow and ExxonMobil.
Innovene to exit Iranian joint ventures
Innovene announced its plans to pull out of Iran and will pursue no further technology licensing opportunities in that country.
The U.S. trade embargo against Iran would make dealing with that country difficult for Innovene, sources say. Innovene recently pulled out of two polyethylene (PE) projects that were being tendered in Iran based on the company’s technology.
“Innovene has decided not to provide its PE technology to two parties bidding for projects at Mahabad and Khoramabad, Iran,” the company says. The 300 KT/year LLDPE/HDPE swing plants are both planned by Bakhtar Petrochemical, a subsidiary of National Petrochemical Co. (NPC; Tehran). Two of the contractors competing for the projects, SembCorp Simon-Carves in a consortium with Chagalesh (Tehran); and Samsung Engineering with Sazeh Consult (Tehran), based their bids on Innovene technology. The other bidder was Tecnimont with Basell technology.
Innovene’s existing contracts in Iran will not be affected. The company signed a deal with NPC earlier this year to provide technology for a 250 KT/year polystyrene plant for Pars Petrochemical, an NPC subsidiary, at Bandar Assaluyeh.
Comments: Due to the trade embargo, US-based polyolefins companies have been at a disadvantage compared to European and Japanese when it comes to licensing technologies into Iran. The Iran petrochemicals & plastics industry is poised to grow at a very rapid rate over the next several years increasing its capacity six-fold by 2012. One of the critical factors to sustain this rapid development is the influx of technology into the country. Basell and Mitsui have historically licensed in Iran. Licensed Basell technologies include Spherilene, Hostalen, and Lupotech. Mitsui has primarily licensed the CX process. Iran has also licensed IFP technology (i.e., Alphabutol) for its co-monomer needs. Although primarily a European company, Innovene’s global headquarter are based in Chicago, Illinois.
Prior to the recent acquisition by Ineos, doing business in Iran could have presented some difficulties. However, post-acquisition the situation may be different.
DSM to sell its SBR business to private equity firm, Lion Capital
DSM announced its plans to sell its styrene-butadiene rubber (SBR) business unit to private equity firm Lion Chemical Capital for $30 million (EUR25 million).
DSM SBR is a business unit of DSM Copolymer, based in Baton Rouge, Louisiana, where it operates its sole rubber production facility. Lion Chemical is acquiring the business as a going concern, a DSM spokesman said. The SBR business generated 2004 sales of around $170 million (EUR 140 million) worldwide, sales mainly from the tire industry and conveyor belts, vibration dampers, and footwear manufacturers.
Comments: DSM entered the SBR business 60 years ago mainly concentrating on the manufacture of tires. Other applications for SBR include conveyor belts, vibration dampers, and footwear. The North American market is close to 1,800 million pounds out of which 80% of the total market is consumed by the tire industry. The demand for SBR in North America is currently growing at 2.1%.
DSM’s sale of its SBR plant is a result of its overall corporate strategy. The company is focusing on becoming a specialty company concentrating on life science products and performance materials. Lion Chemical Capital is a private equity firm that is focused on investing in the chemical and related industries. Lion acquired the largest independent rubber compounding business in North America from PolyOne Corporation in 2004. The company, Excell Polymers has its headquarters in Solon, Ohio, USA, and has five manufacturing plants in the USA and one each in Mexico and the UK.
Its first compounding facility in China is expected to open near Shanghai later this year.
Celanese sells Ticona’s Topas® unit to Daicel Chemical
Celanese Corporation announced its plans to sell its cycloolefine copolymer business (COC) to Daicel Chemical Industries Ltd. and Polyplastics Co., Ltd. As the company announced, Daicel and Polyplastics intend to form a joint venture in Germany to which all employees and production and research facilities will be transferred. Daicel and Polyplastics intend to hold interests in the Joint Venture of 55% and 45% respectively. Celanese subsidiary Ticona markets COC under the brand name Topas®.
The conclusion of the deal is expected at the end of 2005, pending approval by the management of the companies and regulatory authorities. As part of its portfolio optimization strategy, Celanese decided in December 2004 to divest its COC business.
The COC business has approximately 100 employees at production and research facilities primarily in Oberhausen and Frankfurt, Germany, as well as in the USA.
Comments: Cyclic Olefin homopolymers and copolymers are engineering thermoplastics derived from norbornene molecules. Norbornene is made from dicyclopentadiene (DCPD) and ethylene. These resins have glass-like transparency, low dielectric loss, low moisture absorption, dimensional stability, high heat resistance, and high melt-flow rates.
Diacel’s joint venture partner, Polyplastics has been involved in the marketing of COCs in Asia for Ticona and hence is familiar with the business.
Tier I supplier to US automotive industry, Delphi files for bankruptcy
Delphi and 38 of its domestic U.S. subsidiaries filed voluntary petitions for business reorganization under Chapter 11 of the U.S. Bankruptcy Code. Delphi’s non-U.S. subsidiaries were not included in the filing and will continue their business operations without supervision from the U.S. courts.
Delphi, the largest U.S. auto supplier, filed for bankruptcy Saturday and is expected to slash jobs and wages and close many of its 31 U.S. plants as part of its reorganization. General Motors Corp., Delphi’s largest customer, and former parent said it might have to assume up to $11 billion in retirement benefits for Delphi’s union-represented employees.
Delphi’s second quarter 2005 sales reached $7 billion and it recorded a net loss of $338 million. In 2004 the firm cut 8,500 jobs worldwide as part of cost-saving measures, while 3,600 jobs have been eliminated in 2005.
Comments: Delphi’s bankruptcy highlights the problems of increasing costs associated with pensions and health care. For years, Delphi has been struggling against rising raw-material costs and high inherited labor costs, including generous benefits and open-ended medical coverage. Delphi hopes that under court protection it will be able to re-engineer its business, closing unproductive plants and people that a restrictive collective bargaining agreement now protects. The company wants GM to guarantee monthly purchases of parts worth at least $1 billion, and to persuade workers to accept $16-$18 per hour in wages and benefits instead of the current $65.
At the end of the day, Delphi’s move into Chapter 11 seems to have less to do with its imminent operations than it has to do with forcing the hand of the United Auto Workers and GM. GM may not be able to escape a) supply disruptions if Delphi plunges into open warfare with its workforce and b) some contribution, perhaps as high as $11 billion, in pensions and benefits to Delphi’s past and present employees.
The plastic industry may not be as much impacted as GM but might see a decrease in usage and purchase of raw materials.
Nova Innovene to permanently close EPS plant in Europe
NOVA Chemicals Corporation announced its plans to cease expandable polystyrene (EPS) production in Berre, France, and to permanently close an idled EPS plant in Carrington, UK.
The company will take a non-cash asset write-down of approximately U.S. $75 million in the third quarter of 2005 related to the NOVA Innovene Joint Venture.
NOVA Innovene is the recently launched European styrenic polymers joint venture between NOVA Chemicals and Innovene. The Berre plant has an annual production capacity of 145 million pounds (65 KT). NOVA Innovene also said it will permanently close an EPS plant in Carrington, UK, which was idled in October 2002 and had an annual production capacity of 165 million pounds (75 KT).
The two rationalizations will remove nearly 30% of NOVA Innovene’s total EPS capacity and more than 10 percent of Western European industry capacity. These actions represent a first step toward a minimum of $40 million in synergies targeted to be delivered by the joint venture.
Comments: The Berre, France EPS plant closure is one that was planned along with the permanent write-down of the Carrington, UK EPS capacity idled earlier by Nova. When Nova and BP (now Innovene) merged their European polystyrene assets last year, some rationalizations were ordained to produce the $40mm in savings envisioned by the joint venture. Berre, the smallest polystyrene plant in France, was to be one of the closures which will become a $75 million write-down (Berre & Carrington) for Nova in the third quarter of 2005.
Comments: There is a lot of activity in the last two decades around using biodegradable polymers for environmental reasons. Thus far the success has been limited. In the last few years countries such as Australia and other European countries have tried to pass legislation requiring the use of environmentally friendly materials. It seems unlikely that legislation requiring a complete ban on plastic packaging will be successful. Partial replacement seems a more likely scenario. The use of ‘sustainable development’ has also been promoted for the efficient use of natural resources.
The closures in Europe will cut about 30% of the Nova-Innovene joint venture’s expanded polystyrene capacity in Europe. The move will cut roughly 10% of the industry’s total Western European capacity.
EPS plants can be problematic in terms of emission and effluent abatement because of the nature of the suspension process. Standards in Western Europe are continuing to be among the lowest or strictest in the world so it is reported that the Berre plant would require additional investment to continue compliance. Incremental investment at a plant that is present in an overcapacity situation and likely losing money on a cash basis can’t be justified, even with incremental economics.
Without these European capacity closures, operating rates in Western Europe for EPS could be closer to 70% than the industry would like to envision. A major reason for this is flagging domestic demand where just like in North America, major quantities of Asian EPS are available for import at prices somewhat below domestic postings. In the US, up to 15% of the domestic market has been taken by Asian imports in recent months and there is no letup in sight. Conditions in Western Europe are probably at least on par – it is possible to expect more developed market EPS plant closures as capacity in regions like China continues to increase and exports to developed markets continue to increase.
Dow sells its 50% interest in UOP to Honeywell
Dow Chemical announced that its wholly-owned subsidiary, Union Carbide Corporation, plans to sell its indirect 50 percent interest in UOP LLC to Honeywell. Honeywell currently owns the remaining 50 percent interest in UOP. The sale price is $825 million plus or minus half of the net cash in the venture at closing.
The transaction, which is subject to regulatory review, is expected to close in the final quarter of 2005.
UOP has been a joint venture between UCC and Honeywell since August 1988. It is a leading international supplier and licensor of process technology, catalysts, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries. The company employs about 3,000 people at its facilities in the United States, Europe, and Asia and last year had sales of approximately $1.2 billion.
Comments: This is cash sided arrangement for Dow and a strategic platform-sided deal for Honeywell. Dow is a leader in science and technology, providing innovative chemical, plastic, and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in markets: food, transportation, health and medicine, personal and home care, and building and construction. Although Dow could be a user (and developer of some) of UOP’s technology, the core of Dow’s emphasis is on the production and marketing of polymer and chemical products where Dow is a global leader in most of its business areas such as ethylene and its derivatives with leading manufacturing positions around the world.
Honeywell International is a $26 billion diversified technology and manufacturing leader, with aerospace products and services; control technologies for buildings, homes, and industry; automotive products; turbochargers; and specialty materials. Honeywell’s Specialty Materials group has been on a string of 10 non-core divestitures over the past several years including the pending sale of the company’s nylon carpet business. Specialty Materials, where UOP will reside, will focus on selected growth platform technologies including fluorines, electronic materials advanced fibers, and composites. UOP, as a technology offering firm fits into the strategic orientation of Honeywell as a process service or provider to the industry just like the control systems area.
In 2003, UOP received the National Medal of Technology. Of the major 36 petroleum refining processes in use today, UOP developed 31 including important segments of the petrochemical industry that were based and created on processes developed by UOP.
UOP has led in the environmental arena also with production processes for lead-free gasoline, biodegradable detergents, and many plastics would not be available without processes developed by UOP. UOP has shown that American companies can compete globally with innovation and enterprise – in 1997 UOP signed its 100th process license in China. Honeywell expects future global building of petrochemicals and the probability of refinery expansions and construction will show a business with in excess of 5%/year growth.
Nova to invest $225 million in styrenics
Nova Chemicals announced its plans to invest about $225 million to improve its styrenics business. The company will increase its performance polymers capacity by the end of 2007.
The company plans to increase annual capacity for four performance plastics—Arcel®, Dylark®, Zylar®, and Silver EPS®—from about 30 million pounds to 390 million by the end of 2007, generating EBITDA (earnings before interest, taxes, depreciation, and amortization) of $150 million to $170 million per year. Nova brought on its first Zylar food packaging line in July at Belpre and will start producing Dylark at the site by the end of the second quarter of 2006. At Beaver Valley, the company will expand Arcel moldable foam capacity by 2006. As another part of its strategy in styrenics, Nova will seek to earn more out of the value chain for its high-tech polymers.
Comments: Over the last few years, Nova has been trying to improve styrenics and strengthen its high-margin products position. The company has formed joint ventures with Innovene and Grupo Idesa for its commodity styrenics business and the joint ventures have decided to shut down plants that are not performing. This overall attempt to improve styrenics should help Nova achieve its goal.
The significant issue is the attempt at “Commoditization of Specialties – take them to the next level” Most of the performance styrenics stagnated for a long time because no one took them to the next level of commoditization. Nova should be congratulated for taking the step to take these products to the next level – this will assure the continued profitability of styrenics.
Solvay to construct R&D center in China
Solvay announced that it is in the process of setting up a new Technical Center in Shanghai, China, to meet fast-growing demand from Chinese clients for Specialty Polymers. The new entity – Solvay High-Performance Materials R&D (Shanghai) Co., Ltd – is scheduled to be operational in the first quarter of 2006.
The primary function of the new center will be to provide R&D services and innovative solutions to Chinese clients who plan to design and process new parts manufactured with Solvay’s range of specialty polymers. Future developments could include upstream research work in various areas of the specialty polymers value chain. Located in the Shanghai Zhangjiang High-Tech Park, the new site will also allow Solvay to group its local teams active in the Chemical and Plastics sectors in state-of-the-art facilities.
Solvay Specialty Polymers are already generating an annual turnover of more than EUR 100 million in Asia and sales are developing rapidly.
The Shanghai Zhangjiang High-Tech Park was designated for the development of new and high technology, mainly in the fields of information and communication technology, biotechnology, pharmaceuticals, and innovative materials. The Park, established in the Pudong New Area, and fully supported by Shanghai Municipal Government, enjoy a high-quality infrastructure.
Comments: As the Chinese economy grows, it drives the demand not only for commodity plastics but also for specialty plastics. Chinese resin suppliers and compounders have been focusing on general-purpose grades, while most performance grades are supplied by multinational companies including Solvay. As the demand continues to grow, many companies are starting to establish local manufacturing as well as local R&D centers.
Companies that have set up R&D centers in China in recent years include Bayer, GE, Dow, Dupont, DSM, Degussa, Albemarle, and Ciba, to name just a few. Shanghai has become the location of choice for these R&D centers due to the high concentration of well-trained professionals, the adjacent to the manufacturing sites and customers, and the benefits and support provided by the local government. Most of these centers focus more on providing local technical support than on fundamental research. It is more development than research. However, it will not be a surprise that the focus will slowly switch toward research as the new centers focus on domestic markets.
Indian Oil Corp. considers stake in Haldia Petrochemical
Indian Oil Corp. announced its intentions to try and gain a controlling stake in Haldia Petrochemicals Limited. HPL is owned by a combination of private shareholders and the Indian government. The company said Indian Oil would consider purchasing any state-owned shares in HPL should they be offered for sale.
Comments: Indian polyolefin producer, Haldia Petrochemicals is jointly owned by West Bengal Industrial Development Corporation, The Chatterjee Petrochem (Mauritius) Co. Ltd., and the Tata Group with an investment of $1.2 Billion. The Government holds a 36 percent stake, TCG 53 percent stake, and the Tata Group 3 percent stake in Haldia Petrochemicals. There have been ongoing issues between the Indian state government and private investors about their stake in Haldia. The government has been considering several options including (1) IPO, (2) divesting its stake and others. Recently, the state government sold its 9.5% stake in Haldia Petrochemicals to Indian Oil Corp (IOC). IOC is further willing to increase its stake if possible.
Haldia has an excellent potential to be a major force to be reckoned with in India. The major stumbling blocks are – government operation and its low technology end use – The most innovative product in Haldia’s portfolio – A polyolefin bag replacing a jute bag for shipping agricultural waste – ??????
Formosa Plastics’ Point Comfort plant to resume operations after the blast
Formosa Plastics Corporation, U.S.A. announced that the last remaining minor fire resulting from an explosion on October 6 at its Point Comfort, Texas plant was extinguished and that operations at the facility had resumed.
According to the company, the damage from the explosion and resulting fire appear to have been limited to what is known as the “Purification Area” of the Olefins 2 production unit. The Olefins 2 unit produces ethylene and propylene which are used in the production of polyethylene (PE), polypropylene (PP), polyvinyl chloride plastic (PVC) resins, and ethylene dichloride (EDC).
Production has resumed at the plant’s vinyl chloride monomer (VCM) and PVC units, though at less than full capacity. VCM is a feedstock — or ingredient — used in the production of PVC. The plant’s Olefins 1 unit is expected to be back online later during the next few days with additional downstream production units expected to follow sometime next week.
Ongoing testing and monitoring by the company and government agencies have found no indication of the environmental impact resulting from the incident.
The initial phase of the company’s internal investigation, supported by numerous eyewitness accounts, has determined that the fire and explosion were caused when a contractor’s employee, using a forklift truck to move a cart, backed into a liquid propylene line, causing a break in a fitting or valve. The propylene released by the break vaporized into a cloud and traveled along the ground until it found an ignition source.
Comments: Formosa is one of the few polyolefin companies in North America that is genuinely interested in innovation and developing newer opportunities – we hope they recover from this unexpected low probability high consequence event.
Mitsui Chemicals forms a compounding joint venture in Germany
Mitsui Chemicals, Inc. (MCI) announced its plans to form a new joint venture with German compounder Polymer-Chemie to compound and sell MILASTOMER and ADMER products.
MCI produces and sells the compounding products (polymer-blended materials) of thermoplastic olefinic elastomer (MILASTOMER™ ) used in automobile and construction materials and adhesive polyolefin (ADMER™ ) used in food-packaging materials.
The joint venture will be called Sun Alloys Europe GmbH and will be in operation from January 2006. The compounding plant having a capacity of 15 thousand metric tons will be located near Frankfurt, Germany. The total investment for this project will be EUR 2 million.
MILASTOMER™ and ADMER™ are used in several applications including (1) automotive parts, (2) construction, (3) food packaging materials, and others. Currently, the company has production sites for these two products in three regions worldwide, Japan, the U.S., and Europe.
Comments: MILASTOMER™ and ADMER™ are compounded (blended and mixed) with additives to achieve the properties of Mitsui’s customer’s requirements. Milestone is used in automotive interiors and Admer is used as an adhesive tie-layer in food packaging films. Currently, the company has production sites for these two products in three regions worldwide, Japan, the U.S., and Europe. However, in order to cope with an anticipated surge in demand in Europe, the company has decided to increase its capacity by forming a joint venture with a major compounder in Germany.
MILASTOMER™ is resistant to weather, and ozone as well as heat and cold, it also possesses outstanding electrical characteristics and chemical resistance. Due to its lightweight and recyclable features, the material is used also being marketed as one of the environment-conscious materials. This has led to an increased use in automotive and construction applications. Mitsui has been successful in marketing MILASTOMER™ as a standard environmentally-friendly material and has gained a high reputation from increasingly environment-conscious European auto manufacturers. ADMER™ as an adhesive polyolefin has been marketed for various applications such as container, packaging, and automotive parts. Mitsui has been manufacturing and selling ADMER™ in Europe for about 20 years. The current expansion plans will help Mitsui cater to the growing markets of these materials.
Dr. Robert Moreland of Amoco-BP-Innovene died suddenly in Naperville – Our sincere condolences!
Dr. Robert Moreland, the market development manager for BP’s linear alpha olefins passed away suddenly due to complications from illness. Dr. Moreland had been a well-known person in the polyolefins industry for the last 25 years through Amoco, BP, and Innovene. He was very active in the CDMA and SPE activities and was instrumental in several key Amoco PP projects.
In addition to his exceptional professional skills, he was an avid magician dedicating his time to magic shows for several organizations. Dr. Balaji Singh says, “I remember giving an executive briefing at Amoco on elastomeric homopolymer polypropylene. I was about to start the presentation and was desperately looking for a pointer to use, when he simply took out his handkerchief and said, “Oh! You are looking for a pointer?…and the handkerchief just turned into a pointer covered in handkerchief…”
He did a lot of tricks that kept the audience amazed with his technical savvy and magic. Our sincere condolences to his family – we are going to miss him a lot.
DSM develops a new process to combine paper and plastic to produce fuel pellets
DSM has developed a process to combine waste from paper mills with recycled plastic and produce fuel pellets with the energy equivalent of coal. The pellets contain up to 60% plastic, burn efficiently, and can fire part of their production process, the company says. The process has already been proven at a paper mill in the Netherlands, DSM says and is now available for license via the yet2.com Web site.
According to DSM, pellets are manufactured by squeezing excess moisture from mill waste. then shredding and drum-drying to a moisture content of less than 5%. Fluff from the dryer containing plastic and paper is fed into a proprietary pelletizer; the plastic melts during the pelletizing process, making the pellets hard, consistent, and easily storable without breakage or dust. Markets for the pellets include power plants and cement furnaces, where they can be used to substitute for coal.
The process has a particular advantage in European countries where waste disposal is restricted and expensive, DSM says.
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