Chemicals & polyolefins producers and other companies report positive fourth-quarter earnings
Dow Chemical
Dow Chemical announced its fourth-quarter earnings. The company had a total sales for the fourth quarter of 2004 of $10.9 billion, up 31% compared to 4Q 2003.
Overall 2004 sales increased to $40.2 billion, 23% higher than in 2003 and a new record for the Company. Volume increased 6 percent and price was up 17 percent.
Sales in Performance Plastics increased to $2.6 billion in the fourth quarter of 2004, an increase of 28 percent compared with the same period in 2003, with volume up 9% and price up 19%.
In Performance Chemicals, sales for the 4Q 2004 were $1.8 billion, an increase of 29% compared with the same period in 2003. Volume increased 11 percent, due in part to the successful integration of the acrylics business acquired from Celanese in the first quarter of the year.
Plastics had a strong fourth quarter, as sales climbed 42% from $2.0 billion in 2003 to $2.9 billion in 2004. There was a continued strengthening of demand for polyethylene, with tightening global supply driving significant price increases across all geographic areas. Polypropylene also reported solid demand in Europe and North America and price increases in every region. The Plastics segment reported an EBIT of $591 million for the fourth quarter, significantly higher than the $211 million reported in the same period last year.
Chemicals sales also rose in the fourth quarter of 2004 compared with the same period in 2003, climbing 25 percent from $1.2 billion to $1.5 billion. The Chemicals segment reported EBIT for the quarter of $411 million, three and a half times that of the same quarter of 2003.
ExxonMobil Corporation
ExxonMobil Corporation reported fourth-quarter results. Net income of $8,420 million ($1.30 per share) was the highest quarter ever for the Corporation. Net income increased $1,770 million from the fourth quarter of 2003, which included a special item of $2,230 million relating to the settlement of a long-running U.S. tax dispute.
Revenues and other income for the fourth quarter of 2004 totaled $83,357 million compared with $65,952 million in 2003. Capital and exploration expenditures of $4,233 million in the fourth quarter of 2004 were down $127 million compared with last year.
Downstream earnings were $2,344 million, an increase of $1,608 million from the 2004 fourth quarter due to strong refining margins and improved marketing results.
Chemical earnings were $1,248 million, an increase of $772 million from fourth quarter 2003 results reflecting strong worldwide demand.
Eastman
Eastman Chemical Company announced earnings of $0.68 per diluted share for the fourth quarter of 2004 versus earnings of $0.13 per diluted share for the fourth quarter of 2003. Included in the results for the fourth quarter of 2004 was an income tax benefit of $26 million resulting primarily from the favorable resolution of a prior year’s capital loss carryback refund claim.
Included in the results for the fourth quarter of 2004 were asset impairments and restructuring charges of $18 million and other operating income of $7 million from the previously announced sale of Ariel Research Corporation. Fourth-quarter 2003 results included asset impairments and restructuring charges of $9 million and other operating income of $13 million.
Specialty Plastics – External sales revenue increased by 19 percent, attributed primarily to higher sales volume. The higher sales volume resulted mainly from continued strong demand for products in new applications, including packaging, opthamalics, and housewares. Operating earnings declined substantially, primarily attributed to selling prices not rising as quickly as rapidly increasing raw material and energy costs, particularly for paraxylene, and costs associated with a planned maintenance shutdown at the Kingsport, Tenn., site’s specialty polymers facilities.
DuPont
Consolidated net sales for the fourth quarter were $6.0 billion compared to $6.5 billion in the fourth quarter of 2003, and $27.3 billion for the full year compared to $27.0 billion in 2003. Net income for the fourth quarter was $278 million or $.28 per share compared to $636 million or $.63 per share in the prior year. Net income for the full year was $1,780 million or $1.77 per share, compared to $973 million or $.96 per share for 2003.
Fourth quarter net income before special items was $371 million or $.37 per share, up 28 percent. Higher selling prices and volume growth more than offset higher energy and raw material costs.
SABIC
Saudi Basic Industries Corporation (SABIC) announced its unaudited fourth quarter and full-year results for 2004. The net profit for the year stood at SR 14.247 billion (US $ 3.8 billion), an increase of 113% over 2003. The fourth quarter profit for 2004 was SR 5954 billion (US $ 1.59 billion).
SABIC achieved 42.9 million metric tons of production in 2004 and total sales stood at 33.3 million metric tons. The sales revenues reached the highest-ever figure of SR 68,7 billion (US $ 18.4 billion) making SABIC the largest industry in the Middle East in terms of revenues.
Nova Chemical
Nova Chemicals reported net income to common shareholders of $162 million ($1.78 per share diluted) for the fourth quarter of 2004. This compares to net income to common shareholders of $56 million ($0.60 per share diluted) in the third quarter of 2004.
In the fourth quarter of 2003, Nova Chemicals reported a net loss to common shareholders of $15 million ($0.18 per share loss diluted). For the full year 2004, net income to common shareholders was $252 million ($2.71 per share diluted) compared with a net loss of $1 million ($0.02 per share loss diluted) for 2003.
The Olefins/Polyolefins business reported a net income of $83 million in the fourth quarter, $5 million higher than the third quarter. Prices increased and contributions from ethylene co-products remained strong. Polyethylene sales volumes were down 2% versus the third quarter but were the second highest in our history.
The Styrenics business reported a net loss of $16 million in the fourth quarter, versus a third-quarter net loss of $10 million. Overall, polymer prices were able to keep pace with increased feedstock costs. Styrene monomer margins fell as spot prices followed a rapid decline in spot benzene prices. Polymer volumes decreased 12% versus the third quarter on seasonally lower demand.
Saudi Aramco and Sumitomo select Basell’s Hostalen technology for a new 300 KT HDPE plant
The Saudi Arabian Oil Company (Saudi Aramco) and Sumitomo Chemical Company selected Basell’s Hostalen® technology for a new 300 KT per year high-density polyethylene (HDPE) plant. The plant will be part of a new integrated refining and petrochemical complex to be built in the Red Sea town of Rabigh, Saudi Arabia. The start-up is planned for late 2008.
According to the companies, the preference for HDPE slurry technologies, such as Hostalen, has been driven by increased demand for specialty bimodal products.
Comments: Bimodal polyethylene markets have exhibited healthy growth rates over the past few years. Many polyethylene-based applications require a compromise in processability/performance. Examples include (1) pipe applications, where both (a) stiffness and (b) ESCR are required, and (2) film applications, where both (a) stiffness and (b) toughness are required. Segments of the PE industry have addressed these problems by producing PEs having a bimodal MWD. The bimodality of the MWD offers processors and end users processing and property benefits derived from having both low MW and high MW components with fewer compromises. It is estimated that global demand for bimodal PE is slightly more than 17 billion pounds or 20-25% of all PE demand.
Bimodality is offered in both LLDPE and HDPE resins, with the latter accounting for the majority of the consumption. The largest market for bimodal PE resins continues to be filmed, followed by blow molding and pipe applications. The interest in bimodal technology in the Middle East has been spurred by the construction industry, mainly the use of bimodal PE resins in pipe applications (natural-gas transmission and large-diameter pipes for potable water).
Basell signs agreement to purchase Qenos polypropylene business
Basell Australia announced that it will purchase the polypropylene business of Qenos. The targeted timing for completing the transaction is the end of February, pending all necessary regulatory approvals.
Basell and its predecessor companies have been manufacturing polypropylene in Australia for more than three decades and Basell Australia currently operates plants in Sydney (170,000 metric tons) and Geelong (70,000 metric tons). The company plans to expand the Geelong capacity to 130,000 tons in early 2006.
Comments: Basell is one of the largest producers of polypropylene with a total capacity of approximately 6 million tons. The company has a strong presence in Australia. Montell Australia was formed in 1995 by the merger of the majority of the olefin interests of the Royal Dutch/Shell Group of Companies with those of the Italian company Montedison S.p.a. The Australian plants had previously been operated by Shell Chemicals. In 1997, Shell announced its purchase of the balance of its shareholding in Basell. In early 1999, Shell sold 50 percent of its share in Montell Australia (now Basell Australia). After the debottlenecking in 1998 and early 1999 capacity in Clyde, New South Wales production had increased from 120 KT to 180 KT. Basell Australia also has another 70 KT per year capacity in Geelong, Victoria at the Shell refinery site.
The other polypropylene producer in Australia is Qenos with whom Basell shares the domestic market. Qenos was formed in 1999 and is a joint venture between the Australian company Orica and ExxonMobil Chemical. Qenos operates a 60 KT polypropylene plant at its Altona site. After this acquisition, Basell would control almost 90% of the domestic polypropylene market. After this acquisition, there is no other supplier of polypropylene in Australia.
Basell to increase polypropylene capacity in Australia
Basell announced its plans to increase its polypropylene production capacity in Australia by 60,000 MT/year with an expansion project at its Geelong plant.
The planned increase is scheduled to be completed by the first quarter of 2006. This expansion will increase the Geelong plant’s capacity to 130,000 MT/year. It is expected that 50 jobs will be created during the construction phase of the project.
Basell and its predecessor companies have been manufacturing polypropylene in Australia for more than three decades. Currently, Basell Australia employs 170 people in total in its Australian operations, which include plants in Sydney and Geelong.
Comments: Many polypropylene players with old assets are finding it harder to compete with newly built state-of-the-art plants with 2X-3X single-line capacities. This is especially true in Asia-Pacific where new plants are constructed with the intent to leverage economies of scale and produce only a few grades.
Basell Australia manufactures polypropylene resins from refinery gases at two petroleum refineries operated by the Shell Company of Australia at Geelong, Victoria, and at Clyde, New South Wales. The Geelong plant has a capacity of about 70 KT and supplies about 40-50% of the Australian market. The expansion by Basell should allow the Geelong plant to achieve better economics and keep pace with the technology in that region.
Chevron Phillips licenses its loop slurry PE technology to Unipar subsidiary Polietilenos União
Chevron Phillips Chemical entered into a contract to license its proprietary loop slurry polyethylene technology to Polietilenos União S.A., a wholly-owned subsidiary of UNIPAR.
Chevron Phillips Chemical’s proprietary loop slurry PE technology will be employed in a new 200,000 metric tons per year reactor that is part of Polietilenos União’s strategic PE expansion at its plant in Santo André, São Paulo, Brazil. The facility is expected to start up in 2007. Chevron Phillips Chemical will provide consultation and support during the detailed design, construction, and start-up of the Polietilenos União facility.
Ethylene for the new plant will be supplied by debottlenecking Petroquimica União’s ethylene capacity at São Paulo Petrochemical Complex. Chevron Phillips Chemical’s loop slurry PE technology is currently used in 86 reactors in 13 different countries.
Comments: Polietilenos União S.A. entered the Brazilian polyethylene market in last 2000. The use of high-pressure autoclaves limited the company to produce LDPE and EVA resins for films, injection, blow, coating, hot melt, and other applications. The above announcement to expand has been spurred by: (1) the drive to keep pace with the growing regional markets for polyethylene, and (2) take advantage of the slurry loop technology to diversify their product portfolio. The expansion will strengthen UNIPAR’s position in the industry by increasing total capacity to 850 KT.
Dow purchases 28% interest in PBBPolisur from Repsol/YPF
The Dow Chemical Company announced that it has acquired from Repsol/YPF the company’s 28 percent interest in PBBPolisur. Dow now has full ownership of the Argentinean facility, which it purchased with Repsol/YPF in 1996
. According to the company, PBBPolisur provides an important platform to the Mercosur and access to advantaged feedstock which ensure a reliable supply of polyethylene to their customers throughout the region.
The acquisition will have no impact on operations at the facility, its leadership, or its staffing.
Comments: Dow Chemical acquired 63% of PBB, which was formerly known as Petroquimica Bahia Blanca, in 1995 and 70% of Polisur in 1996. The two petrochemical companies later merged.
The company has a total annual production capacity of polyethylene of 660 thousand metric in Argentina. The demand for polyethylene in Argentina is close to 550 KT and is growing close to 9.0% which is one of the highest in South America. The South American demand for polyethylene is about 2,500 KT and is expected to grow at 7.0% for the next five years.
Dow’s other major project in Argentina is Mega SA, a joint venture with Repsol–YPF (38%) and Petrobras (34%), Dow’s share is 28%. The joint venture buys natural gas from Repsol-YPF, crack it down into different component, and sell it to Petrobras and Dow.
Basell announces worldwide availability of new polyethylene catalyst
Basell announced that its new family of Ziegler catalysts designed for use in gas-phase polyethylene technologies – to be marketed under the grade name Avant Z 230 – is available for purchase on a global basis.
According to the company, the new Avant catalysts can produce the entire range of narrow molecular weight LLDPE, MDPE, and HDPE, and typical applications include film, injection molding, and roto molding grades.
The Avant Z 230 catalyst uses a magnesium chloride support. The combination of new proprietary catalyst chemistry, with a more stable support structure, has resulted in a catalyst with expanded product properties and improved operational stability.
The Z 230 catalyst was developed in Ferrara, Italy, and has been demonstrated on commercial Spherilene process plants.
Comments: Basell’s strength in catalyst stems from its heritage in Ziegler-Natta catalysis. Basell has worked over the years to increase ZN-based catalyst performance via innovative electron donor technology and improvements in supports (i.e., RGT – Reactor Granule Technology). The Avant Z 230 catalyst uses a magnesium chloride support compared to silica supports that have been widely used. The more stable support structure of Avant Z 230 has resulted in a catalyst with expanded product properties and improved operational stability. The current catalyst offering is designed for use in gas-phase polyethylene technology, which has been historically dominated by Univation and BP.
ExxonMobil Chemical to expand ethylene capacity in Singapore
ExxonMobil Chemical announced its plans to expand the capacity of its steam cracker in Singapore.
The Singapore Chemical Plant, ExxonMobil Chemical’s single largest investment, started up in 2001. This project will increase its ethylene capacity by 75,000 MT/year to more than 900,000 MT/year. Project completion is expected by 4Q 2006.
Ethylene is a basic building block for a variety of chemicals and plastics, such as polyethylene, which is used in applications such as plastic containers and bags.
The economic growth in Asia Pacific has been robust, and the demand for petrochemical products closely mirrors this trend. This expansion will help position us to continue to meet the growing demand in this region, according to the company.
Comments: Singapore is an epicenter of the Asian ethylene business. With PCS, Shell, and Exxon dominating the local derivative markets, this expansion is welcome news. 75,000mt/year is not a large increase in capacity (9%) at the Jurong Island facility but it brings the total ExxonMobil production to a lofty 900,000mt/yr which is noteworthy. ExxonMobil will be the second largest ethylene producer in Singapore after the expansion following PCS – a privately held group with over 1,000,000 MT/year of installed ethylene capacity. Reportedly, ExxonMobil’s facility with a total investment of over $2B after the expansion will be ExxonMobil’s largest current single chemical global investment. Size aside, the added ethylene is needed in the local market for incremental polyethylene capacity which is growing for film and container applications for example at approximately 2X the average rate of growth in the rest of the developed world. Shell has already announced a $1B ethylene-based expansion for Jurong Island to come before 2009. This incremental expansion by ExxonMobil does not address the company’s rumors of a second ethylene plant in Singapore later which at present was neither confirmed nor denied as a possibility. The initial ExxonMobil cracker was started up in 2001 and this expansion comes within 5 years of the initial startup, the company declined to comment on the specific investment for the ethylene expansion.
Nova Chemicals to expand ARCEL® resin manufacturing capacity
Nova Chemicals announced its plan to expand ARCEL® moldable foam resin manufacturing capacity to 100 million pounds per year by the end of 2006 via a series of expansions.
ARCEL resin combines the toughness of polyethylene and the processability of polystyrene to yield a uniquely resilient inter-polymer packaging material.
According to the company, its ARCEL business tripled in size during the last two years by delivering significant benefits to the multi-billion-pound protective foam packaging market. With the rapid increase in online sales, the value proposition for protective packaging has fundamentally changed. Protective foams require higher-performing resins to reduce the risk of damage that is a reality in business-to-consumer deliveries, according to the company.
ARCEL resin is processed by customers in North America, South America, Europe, Asia, and Australia and is available globally from NOVA Chemicals and its molding partners. ARCEL resin runs on standard expandable polystyrene (EPS) molding equipment, processes more easily than competitive materials, and is recyclable in the polystyrene recycling stream.
Comments: Nova’s Arcel® is regarded as a high-performance, moldable foam resin that consists of 70% polystyrene (PS) and 30% polyethylene (PE). Arcel was developed for bodyboards in the mid-80s, as a light, strong foam used for bodyboard cores. Arcel’s property includes tough, flexible, durable foam that is stronger and more water-resistant than polyethylene. Arcel’s other advantage includes resistance to solvents having a high puncture resistance and being 100% recyclable. Arcels applications include infant car seats, automotive dunnage, marine dock bumpers, boogie boards, and model stunt plane. In recent years the demand for Arcel has been increasing due to packaging for items such as computer components and other electronic products. The trend is due to more consumers using the Internet for online purchasing.
Traditionally, polymer blends and alloys have been in the arena of engineering thermoplastics. In recent years, polyolefin(PO)/polyolefin blends, normally known as TPOs, have had tremendous success in automotive applications. So far, PO/non-PO blends have not been as successful. However, this is an area with many opportunities.
PS and PO are synergistic, where POs impart toughness and chemical resistance, and PS offers low shrinkage and high modulus. PS/PO blends have drawn much research attention, but so far the commercialization is not satisfactory. Polimeri Europa has commercialized PE/PS blend as Koblend in Europe. It targets refrigerators, packaging, and automotive industries. The volume is still low. Making PS/PO blends using post-consumer recycled materials may present an opportunity.
For more details on Polymer Blends and Alloys, please refer to our article in the coming issue of the New Generation of Polyolefins.
Lanxess spin-off accomplished
The separation of Lanxess AG from the Bayer Group was accomplished on January 28, 2005, with the entry of the spin-off of the new chemicals group in the commercial register for Bayer AG. This completes the most fundamental restructuring in Bayer AG’s history.
Bayer plans to concentrate in the future on its growth- and innovation-driven core businesses in the fields of health care, nutrition, and high-tech materials. The portfolio of Lanxess comprises large parts of Bayer’s previous chemicals business and about one-third of its former polymers business.
Placing Lanxess on the stock market is a crucial part of Bayer’s strategic realignment. The preparations for the spin-off took little more than a year.
By the spin-off, all the shares of Lanxess AG are being allotted to Bayer AG stockholders in the ratio of one Lanxess share for every ten Bayer shares held. For technical reasons, the allotment will not take place until after the close of trading on Friday. The number of Lanxess shares to be allotted to each Bayer stockholder is dependent on the number of Bayer shares he or she holds at that time
Comments: In 2002, Bayer Group reorganized its chemicals and polymers portfolio as part of a plan to prepare the chemicals unit for a possible joint venture with another partner. The company formed four separate operating subsidiaries: Bayer Polymers; Bayer Healthcare; Bayer CropScience, and Bayer Chemicals, which started operations in January 2003. Upon the failure of the company’s efforts to find a partner for the entire chemical group in 2002, Bayer Chemicals had been undergoing restructuring since earlier 2003. Under the restructuring program, Bayer cut about 1,300 jobs representing 9% of the global headcount of Bayer Chemicals and closed about 90,000 MT/year of chemicals capacity. Closures included a paper chemicals unit at Leverkusen and an iron oxide pigments capacity at New Martinsville, WV.
Subsequently Bayer Group decided to combine chemicals with polymers into a new company, NewCo, and focus Bayer’s activities towards HealthCare, CropScience, and MaterialScience. The name BAYER has always been associated with pharmaceuticals, especially aspirin. Until recently they were not allowed to use the BAYER’s name in North America, thus Mobay was used. In the last six years, the Mobay name was changed back to BAYER. This still creates confusion in the minds of the general public. The decision to use BAYER for life sciences and separate the chemicals/plastics to NewCowas is a good move.
In April 2004, the company decided to name the new company Lanxess. It was believed that being independent of Bayer should provide Lanxess several benefits including (1) efficient utilization of capital resources for the enhancement of its competitiveness, (2) easy to-focus management resources on the specific needs of the chemicals business, and activating niche markets utilizing new business models. The reorganization combined about one-third of Bayer’s polymers businesses with most of Bayer Chemical to form a new company called Lanxess Corporation. The polymer businesses going to Lanxess produce rubber products and chemicals, styrenics, and semi-crystalline products. Bayer AG planned to list Lanxess on the stock market by early 2005 either through a sale of Lanxess shares or the spin-off of Lanxess shares to Bayer AG stockholders.
In November 2004 the spin-off was approved by the shareholders. After the approval of shareholders Lanxess could be placed in the stock market as an independent company. It was decided that for every 10 shares of Bayer, the shareholder would receive one Lanxess share in addition. It was intended to list the shares on Lanxess in early 2005. As planned the spin-off was completed in early 2005 on January 28, 2005.
Arkema to continue its focus on the vinyl products business segment
Arkema announced its plans to continue to focus on its Vinyl Products business segment and invest about EUR 500 million in a capital expenditure program over the next five years.
Arkema presented the Central Works Council with a draft consolidation plan to secure its long-term competitiveness and ability to ride out the economic climate. The plan entails no plant closure and no redundancies.
The Vinyl Products business segment – Chlorochemicals, PVC (polyvinyl chloride), Vinyl Compounds, and Pipe and Profile Converting – accounts for 27 % of Arkema’s turnover, achieved to a large extent in the European market.
With its overcapacity and acute competition, this market is also characterized by very clear economic cycles and ongoing erosion of margins over many years.
A draft plan to consolidate the Vinyl Products business segment was presented to Arkema’s Central Works Council. The implementation of the plan is subject to the legal information and consultation process involving the trade unions.
Zeon Chemicals reaches agreement in NBR (acrylonitrile-butadiene rubber) investigation
Zeon Chemicals L.P. announced today that it has entered into a plea agreement with the U.S. Department of Justice with respect to the DOJ’s ongoing investigation into acrylonitrile-butadiene rubber (NBR). The company fully cooperated with the investigation and, under the terms of the agreement, has agreed to pay a fine of $10.5 million to resolve allegations that it engaged in anti-competitive activity from May 2002 through December 2002. The company established a reserve in the fourth quarter of 2004. The plea agreement, if approved by the court, resolves all charges by the government against the company and its affiliates for activities related to the NBR business in the U.S.
Comments: This is one of the most recent developments in a series of price-fixing investigations by the US Department of Justice. A separate investigation on price fixing of EPDM has led to a $50 million fine to Crompton, a $33 million fine to Bayer, and a $25.4 million fine to Dupont Dow. Very recently, Dupont Dow has also been fined $84 million for the price-fixing of another synthetic rubber, Neoprene. Price is becoming a very sensitive issue for all the major chemical companies.
Based in Kentucky, Zeon Chemical L. P. is a wholly owned subsidiary of Zeon Corporation of Tokyo, Japan.
US Customs and Border Protection Border Patrol to use vests made with new DuPont Kevlar® innovation
DuPont announced that the United States Customs and Border Protection (CBP) Border Patrol signed a multi-year agreement to outfit its agents with protective vests containing new DuPont’s Kevlar® Comfort XLT technology.
The latest Kevlar innovation, Kevlar Comfort XLT technology, allows vests to weigh at least 25% lighter than current all-aramid fabric designs while maintaining the same high levels of ballistic performance. Vest manufacturer U.S. Armor recently delivered the first shipment of vests with the new technology to the CBP Border Patrol.
As the mobile uniformed law enforcement arm of the Department of Homeland Security (DHS), the CBP Border Patrol is responsible for policing 6,000 miles of Mexican and Canadian international land borders and 2,000 miles of coastal waters surrounding the Florida Peninsula. In the wake of the terrorist attacks of Sept 11, 2001, the CBP Border Patrol has stressed an even greater priority in seeking and deploying specialized technologies to assist its agents, including the latest advances in personal body armor.
Comments: Developed by DuPont in 1965, Kevlar(R) is an organic fiber in the aromatic polyamid (aramid) family that combines high strength with lightweight, and comfort with protection. Kevlar is five times stronger than steel on an equal weight basis, providing reliable performance and solid strength. DuPont is maintaining its leadership position in specialty fibers through innovation.
Solvay signs agreement aiming at selling rigid plastic foils activities to Ineos
Solvay SA announced the signing of a memorandum of understanding with Ineos aiming at the sale of its subsidiaries active in the production, marketing, and sales of rigid plastic foils, Adriaplast and Caleppiovinil, to Ineos. Both parties will now enter into exclusive talks and intend to finalize the transaction in the first quarter of 2005, pending relevant regulatory approval.
Adriaplast and Caleppiovinil are respectively located in Monfalcone and Fucine di Ossana, North-Eastern Italy. Their products are used, among other applications, for food, consumer, and pharmaceutical products packaging. They had a total turnover of EUR 62 million in 2004 with 235 employees.
The operation would enable Adriaplast and Caleppiovinil to integrate a group that considers rigid plastic foils as a core development area. In addition, these units would constitute an appropriately located downward integration for Ineos for its majority-owned subsidiary EVC. Ineos is the major shareholder in EVC, Europe’s leading PVC manufacturer and a global leader in VCM/PVC technology.
Comments: The transaction between Ineos and Solvay includes production, marketing, and sales of the Adriaplast and Caleppiovinil businesses, located in north-east Italy at Monfalcone and Fucine di Ossana respectively. Solvay supplies rigid foils from its ISO-certified facilities in Adriaplast and Caleppiovinil. Rigid foils are mainly used in packaging applications. There are various types of rigid foils available in the market such as (1) lined foil for the food sector, (2) metalized foil, (3) single-layer foil, (4) foil for the pharmaceutical sector, (5) stretched foil, (6) foil for boxes, and (7) foil for graphic design. Solvay believes that it is a minor player in this market and therefore decided to focus on other areas. However, this business would be useful to Ineos as the company’s core business includes rigid foils.
DuPont’s First Biologically Derived Polymer Receives Global Recognition As Environmentally Sustainable Innovation
DuPont’s Sorona® offers unique properties to consumers and manufacturers. Consumers appreciate the unique qualities that DuPont(TM) Sorona brings to fabrics, including exceptional softness, easy care, and UV- and chlorine resistance. Mills and manufacturers appreciate its easy dyeability and handling. In addition, products made with Sorona are naturally stain-resistant, requiring no additional chemical treatment to prevent stains. Sorona can be used in a variety of applications including soft floor covering, textiles for apparel and interiors, engineering resins, and packaging.
DuPont scientists recently developed a way to make Bio-PDO®, the key Sorona ingredient, from corn using a new biological process that requires over 40 percent less total energy than the traditional petrochemical feedstock. It will be commercially available in 2006.
In 2003, the U.S. Environmental Protection Agency presented DuPont with its annual “Presidential Green Chemistry Award” for the company’s research leading to the development of Bio-PDO.
Comments: DuPont had been the leading contender in fibers and textiles for the last 50 years. DuPont manufactures fibers that are functionally attractive starting from tough Kevlar to commodity-based nylons and everything in between.
The Sonora is an appropriate answer to the recent developments in Dow’s XLA fibers – a fiber that was developed through extensive focus group analysis and customer-based innovation – a niche covering: (1) moderate stretch, (2) colorability, and (3) chlorine resistance. Sonora in addition to meeting this need makes the move into biopolymers.
See our upcoming issue of New Generation Polyolefins Bimonthly Review for a detailed analysis of market/technology developments in this field.
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