ExxonMobil develops new PP resin grades in Europe
ExxonMobil Chemical announced the availability of an advanced polypropylene resin grade – ExxonMobil PP5122E1-designed to provide the high transparency and stiffness required for demanding sheet and thermoforming applications.
ExxonMobil PP5122E1, available only in Europe, is a clarified polypropylene using proprietary ExxonMobil Chemical formulation processes. ExxonMobil PP5122E1 resin not only provides high transparency and stiffness for sheet and thermoformed end-use applications but also offers outstanding clarity, rigidity (flexural modulus ≥ 1850 MPa), and heat resistance.
In addition to these performance properties, the unique design of ExxonMobil PP5122E1 offers fast cycle times and good melt strength for easy processing. According to the company, this new product will accelerate the penetration of polypropylene in sheet and thermoforming applications, replacing PET and polystyrene.
Concurrently, ExxonMobil is introducing a second new grade, ExxonMobil PP5112E1, specifically aimed at mainstream thermoforming applications. Available only in Europe, these two new resins broaden the portfolio offering of polymers in the thermoforming segment.
Potential end-use applications for these grades include (1) Transparent and non-transparent trays for food packaging (fruit, vegetables, biscuits, and yogurt pots), (2) Sheets (stationery, food packaging), and (3) Drinking cups.
Comments: In recent years the intermaterial competition between polypropylene (PP), polystyrene (PS), and PET has intensified prompting the development of newer polypropylene grades. Polypropylene, for the most part, has been unable to make significant inroads into thermoformed and blow-molded products due to poor melt strength. Currently, polypropylene is dominant in injection molding applications while polystyrene is dominant in thermoforming applications with an area of overlap where both materials compete head-to-head. As each material has its inherent processing advantages it seems that polypropylene and polystyrene are somewhat complimentary to each other. However, the region of overlap will continue to grow as technological developments enable thermoforming of polypropylene on a cost-competitive basis. Current developments are mainly focused on enabling polypropylene to compete with polystyrene and not vice versa. The main reasons for this direction of technological advances include polypropylene’s lower cost and recyclability.
For several years, resin producers like ExxonMobil have been developing thermoformable polypropylene resins that can run on existing lines or require minimal equipment modification. Different approaches have been used including, but not limited to, (1) using additives to modify polypropylene, (2) changing polypropylene at a molecular level, and (3) making changes in the equipment.
Sabic considers a joint venture in Phoenix Project with Pemex
Sabic is considering the possibility of setting up a petrochemical production base in Mexico to serve the North American market. The company is in discussions with Petroleos Mexicanos (Pemex) as a potential joint venture partner in the Phoenix project, according to Sabic. The proposed Phoenix project in Mexico would include a cracker to produce 1 million MT/year of ethylene and several derivatives units.
Comments: The Phoenix Project to be constructed in Mexico consists of complexes producing olefins & derivatives.
The Olefins complex will cost about $1.8 billion. It will produce several products including (1) ethylene (1 million MT/year), (2) butadiene (125,000 MT/year), (3) high-/linear low-density polyethylene (450 KT/year each), (4) low-density PE, (5) polypropylene (400 KT), and (6) styrene (500 KT). The aromatics complex will cost about $800 million, and its capacities will include 600,000-700,000 MT/year of para-xylene and 200,000 MT/year of benzene.
Pemex and SABIC will be presenting at our upcoming FlexPO conference in September. PEMX will present a paper on “The Future Petrochemical Vision” in our upcoming conference FlexPO 2004 to be held on Sept. 15-17 in Galveston.
DuPont announces workforce reduction as part of competitiveness actions
DuPont announced its plans to reduce its global employee workforce, excluding INVISTA™, by 6 percent, or 3,500 positions, as part of its $900 million cost improvement program announced on Dec. 1, 2003. In addition, the company is reducing 450 contractor positions.
During the period Dec. 1, 2003, to Dec. 31, 2004, the company expects to eliminate about 3,000 positions through severance programs and about 500 positions through normal attrition. The impact will be primarily in North America and Western Europe. These actions do not include the company’s INVISTA subsidiary.
The workforce reductions are among the actions DuPont is taking to achieve a $900 million annualized cost improvement in 2005. The company said it is on track to realize that objective through fixed and variable cost reductions, as well as variable margin improvements.
DuPont provided an update on the company’s plan to achieve a $900 million cost improvement in 2005:
$700 Million Fixed Cost Reduction Target: The workforce reductions announced are expected to deliver about $325 million in annualized savings.
$200 Million Variable Margin Improvement Target: The company expects to achieve about half of this improvement through SKU reduction – which enables efficiencies of manufacturing through product line simplification and frees up capacity for higher value products in a number of businesses that are capacity constrained. The remaining improvement will be achieved through specific projects targeting energy utilization, improved product yields, and sourcing optimization. The benefit of SKU reduction will be weighted toward the second half of 2004. The company expects the 2004 variable margin to reflect a $100 million benefit versus 2003 (on a constant volume basis and excluding changes in hydrocarbon prices), with the full $200 million benefit in 2005.
Separately, DuPont reduced the sale price of its Invista textiles and fibers unit to Koch Industries by $200 million, to $4.2 billion.
Comments: DuPont has several business divisions including (1) Agriculture & Nutrition, (2) Coatings & Color Technologies, (3) Electronic & Communication Technologies, (4) Performance Materials, (5) Pharmaceuticals, (6) Safety & Protection, (7) Textiles & Interiors (renamed Invista), and others. DuPont has been undergoing restructuring since 2003. Its Textiles & Interiors business was renamed Invista which is being sold to Koch Industries. DuPont announced a cost reduction of $900 million last year to be implemented in the next two years.
DuPont and Dow enter into agreements on DuPont Dow Elastomers addressing ongoing antitrust investigations
DuPont and The Dow Chemical Company announced that they have entered into a series of agreements that enable DuPont to direct DuPont Dow Elastomers LLC (DDE), a 50/50 joint venture between DuPont and Dow, in its response to ongoing antitrust investigations and related litigation in the synthetic rubber markets. As previously disclosed, DDE has been subpoenaed in connection with these investigations.
Once notified of the investigations, DuPont and Dow directed DDE to form an advisory committee to review the facts with the help of a former U.S. Assistant Attorney General for the Antitrust Division acting as counsel for DDE. DuPont and Dow also directed DDE through its counsel to cooperate fully with authorities conducting investigations in the United States, the European Union, and Canada. The two companies have also taken a number of additional actions to assure that DDE conducts its business activities in full compliance with antitrust law.
DuPont and Dow have concluded that it is in the best interests of all parties involved to consolidate control over directing DDE’s response to these investigations and the related litigation. DuPont has agreed to assume this role and to accept a greater obligation to fund potential liabilities and costs. As a result, DuPont will fund 100 percent of any potential DDE liabilities and costs up to $150 million, with DuPont also funding more than 75 percent of the excess, if any.
Based on the current status of these investigations, DDE is expected to record a pre-tax charge of about $150 million under SFAS No. 5 – Accounting for Contingencies, to establish an estimated liability for these matters. As a result, DuPont also expects to record a first-quarter pre-tax charge of $150 million.
In addition, under US accounting rules, FIN 45 – Guarantors Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, DuPont may also be required to recognize a liability in the second quarter for the estimated fair value of the potential liability of DDE that DuPont has agreed to fund under these agreements. Dow does not have a similar potential liability under FIN 45.
DuPont, Dow, and DDE also have entered into an agreement that provides Dow with an option to acquire in a cashless transaction to Dow certain DDE assets related to ethylene and chlorinated elastomers (based on fair market values subject to an agreed-upon collar). If Dow exercises its option, DuPont will purchase Dow’s remaining equity interests in DDE.
Comments: Formed in 1996, DuPont Dow Elastomers was created by merging the elastomers businesses of DuPont & Dow Chemical. DDE produces and markets several products including EP(D)M, CSPE, polyolefin elastomers, fluoroelastomers, and polychloroprene rubber under trade names such as Acsium®, Engage®, Hypalon®, Kalrez®, Neoprene®, Nordel®, Tyrin®, Vertex®, and Viton®. The company has estimated total sales of about $250 million annually.
The producers of EPDM including Crompton, DuPont Dow Elastomers, and Bayer have been under investigation by the antitrust authorities in connection with price-fixing issues for EPDM. The antitrust class-action lawsuit is filed by end users of EPDM from January 1, 1999, through May 2003. The lawsuit is filed against EPDM producers including (1) Crompton Corp., (2) DuPont Dow Elastomers, and (3) Bayer Corp. The end users allege that the EPDM producers conspired to fix, raise, maintain, or stabilize the price for EPDM above the level and violated the Sherman Anti-Trust Act.
This being a sensitive subject cannot be commented on without having all the details and analysis. CMR Inc. is planning on issuing a special analysis next month, based on a thorough analysis of the public information and our background in elastomers.
Basell announces changes in the company’s management
Basell announced changes in the company’s management that took effect on April 1. Werner Breuers became president of Basell Polyolefins Europe, succeeding Robert Genin, who is retiring after 25 years of service with Basell and its predecessor companies. Just Jansz succeeded Breuers as president of the Technology Business after serving as senior vice president for Basell’s Advanced Polyolefins Business.
In his new role, Breuers will be responsible for Basell’s polypropylene and polyethylene activities in Europe; Jansz will be responsible for Basell’s licensing, catalysts, and new venture activities.
Japanese firms Mitsui and Idemitsu consider merging PP, PE businesses
Mitsui Chemicals Inc, and Idemitsu Petrochemical Co, are expected to merge their polyolefins businesses into joint venture companies.
The two companies inked an agreement to form a refinery and petrochemical alliance in Chiba, and polyolefins would be a likely starting point, as most petrochemical alliances in Japan have historically begun in this sector. If the companies were to merge their polyolefins sectors, the JV would become Japan’s No 1 polypropylene and No 2 polyethylene producer.
Comments: The Japanese polyolefin industry has gone through more changes in the last ten years than any other industry in Japan. As most of the readers are aware, during the late 70s and 80s, the Japanese polyolefin industry was plagued with excess capacity and was under pressure to re-align. The Ministry of Industry and Trade (MITI) of Japan stepped in to reorganize the polyolefin industry to improve profitability and prevent impending bankruptcies.
The Japanese polyolefins industry is impacted by several factors including (1) slow growth in polyolefins demand, (2) increasing imports, (3) decreasing exports, and others. In the early 1990s, Japanese polyolefin producers were organized into four sales groups namely: (1) Dia Polymer (Mitsubishi Kasei & Mitsubishi PetroChem), (2) Ace Polymer (Tonen, Nippon Unicar, Idemitsu, Asahi, & Showa Denko), (3) Mitsui Nisseki (Nippon PetroChem, Mitsui Toatsu, & Mitsui PetroChem), and (4) Union Polymers (Tosoh, Ube, Sumitomo, Chisso, Tokuyama, & Maruzen). All the groups were discontinued in 1994-95.
During 1997-2000, the industry underwent reorganizations. Mitsubishi Kasei and Mitsubishi Petrochemical merged to form Mitsubishi Chemicals. Then Mitsubishi, Tonen from the Ace Group, and Nippon Unicar teamed up to form the largest company Japan Polychem or JPC. Showa Denko, Asahi Chemicals, and Nippon Petrochemicals formed JPO to produce polypropylene. Nippon Petrochemicals was the only non-Mitsui organization from the Mitsui Nisseki group. The rest of the Mitsui Nisseki group joined up with the Ube group from Union Polymer to form major operations in PP and PE. The Sumitomo group, being one of the major groups, to begin with, remained non-aligned with accommodations for the Ube group which joined Mitsui. The independent groups from Ace Polymers – Idemitsu, Asahi – and the independents from Union – Tosoh and Chisso – and Tokuyama remain nonaligned.
In 2003, the merger of Mitsui and Sumitomo was dissolved. Now, the news of the possible merger of Mitsui & Idemitsu is no surprise considering the events in the past. Mitsui and Idemitsu Kosan both have oil parentage to support them in the market position.
BP to sell its performance chemicals unit to Koch Industries subsidiary, Flint Hills Resources
Flint Hills Resources, LLC, agreed to acquire assets from BP’s global performance chemicals business unit.
The proposed purchase includes a production facility in Joliet, IL, as well as a long-term agreement for the production from a Geel, Belgium, plant, which will continue to be operated by BP. In addition, Flint Hills Resources will also acquire research and marketing capabilities associated with the performance chemicals business.
The purchase remains subject to several conditions, including the Hart-Scott-Rodino review as well as other regulatory approvals. The transaction is expected to be complete in the second quarter of this year.
The Joliet plant will complement Flint Hills Resources’ existing chemicals production facility, located inside its Corpus Christi, Texas, complex that refines about 290,000 barrels of crude oil daily. Flint Hills Resources currently produces about 4 billion pounds of commodity chemicals annually, including pseudocumene, as well as other chemicals such as orthoxylene, metaxylene, paraxylene, benzene, cumene, and toluene.
Flint Hills Resources, a subsidiary of Koch Industries, Inc., is currently finalizing an acquisition of a 220,000 barrel-per-day refinery near Fairbanks, Alaska, and product terminals in Anchorage and Fairbanks. In July 2003, it completed an investment in Excel Paralubes in Lake Charles, LA, expanding its marketing capabilities into a new petroleum product line. Excel produces about 21,000 barrels per day of Group II base oil, used to make motor oil and other lubricants. Flint Hills Resources also has crude oil purchasing and transportation interests in Canada, performs other crude oil supply activities, markets petrochemicals worldwide, and markets refined products.
Comments: In these tough economic times BP is streamlining its assets to optimize earnings. The company is conducting a detailed analysis to form its asset allocation strategy. This is one of the first assets sold by BP after announcing its twin-track strategy. BP has also made announcements to sell its fibers division and linear alpha olefins business as a part of its ongoing asset allocation strategy.
BP will continue to monitor all its assets and look for opportunities to further optimize the use of its assets and capital. This strategy suggests that BP will invest in assets with higher returns, operate others as cash cows and divest assets that do not meet their performance criteria.
Huntsman to restart ethylene production unit
Huntsman LLC announced that it will restart an idled 400 million pound per year ethylene manufacturing facility at its Port Neches, Texas site.
The company had taken the unit down in 2001 for a scheduled turnaround and inspection (T&I) and decided because of ethylene market conditions not to bring it back up at that time.
Huntsman said full-scale engineering will begin the week of April 12 with the unit expected to be online in the third quarter. Most of the capital to upgrade and prepare the unit was expended during the 2001 T&I so the cost to restart will be minimal.
Comments: This unit is insignificant in supply/demand terms in the US market with less than 1% of US capacity. Ethane is perhaps the most cost-effective feedstock in the US now since the ratio of natural gas to crude is still trending downward (heavy crackers are therefore relatively more expensive in terms of crack spread) as crude prices stay high. Huntsman’s move may make sense for their internal needs on an incremental basis but for such a small unit, costs have to be high. Perhaps the real meaning of this announcement is for negotiation purposes, what large producer wants to see capacity come on stream, even if it is small?
Total to sell off chemicals in next three years
French-owned Total Group has set a three-year time frame to divest portions of its Atofina chemical division. The company first plans to improve the results of the division, and then divest it either as a spin-off or through an initial public offering. The spin-off company currently dubbed CIP (chlorochemical, intermediates, and performance products) will include Atofina’s PVC, PMMA, and engineering plastic businesses.
Other plastics assets, notably polyolefins, and PS, will remain within Total’s new petrochemicals divisions.
Comments: Earlier this year Total had announced its plans to divest its chemicals branch, Atofina. Now the company has set a time frame for its decision. For more information refer to “Global PO&E – Vol. 2 – Issue 6”.
Ashland to distribute Borealis polypropylene in Spain and Portugal
Ashland Plastics Europe, a business unit of Ashland Distribution Company, has been appointed distributor for Borealis engineering grade polypropylene thermoplastic resins in Spain and Portugal.
Borealis extended its current distribution agreement with Ashland to include polypropylene for small- and medium-sized automotive and household appliance molders.
Comments: Ashland and Borealis established their distribution partnership in 1997 when Ashland began to provide local sales and service of Borealis-produced polyethylene and polypropylene thermoplastics to small- and medium-sized plastic processors in Western Europe.
Solvay to combine its plastics and processing sectors
The Solvay group announced a new step in the implementation of its strategy: the Group intends to simplify and increase the efficiency of its organization, with two important structural changes
.Firstly, in the pharmaceuticals area, a new company will be created, and incorporated in Luxembourg, which will hold and consolidate the strategic management of all pharmaceutical companies of the Solvay group. This company will itself be held by Solvay SA. Its CEO will be Jürgen Ernst, Director and Solvay Executive Committee member in charge of the Pharmaceuticals Sector. Throughout the whole process, Solvay will abide by the required social procedures.
Secondly, on June 1, 2004, when Henri Lefèbvre, Member of the Executive Committee and General Manager of the Plastics Sector, will retire, Solvay will unite its Plastics and Processing Sectors into a single one, which will be called Plastics Sector. The Strategic Business Units (SBU) concerned, active in Specialty Polymers and fuel systems on one hand and in Vinyls and derivates on the other hand, will continue to be led by their current managers. From June 1, Jacques van Rijckevorsel, Member of the Executive Committee, currently General Manager of the Processing Sector, and Solvay Innovation Sponsor, will be responsible for this new Sector. This new, more compact, and more interactive structure will, among others, allow the alleviation of several horizontal processes common to all activities of the Sector.
Comments: Currently Solvay has four business units including (1) Pharmaceuticals, (2) Plastics, (3) Processing, and (4) Chemicals. The company’s processing sector consists of industrial foils, Inergy Automotive Systems (a joint venture between Solvay and Plastic Omnium) producing automotive fuel systems, and Pipelife (a joint venture between Solvay and Wienerberger) distributing complete pipes and fittings systems. Solvay’s Plastics sectors comprise four divisions including (1) Vinyls, (2) Specialty Polymers, (3) BP Solvay Polyethylene, and (4) Performance Products.
Following the announced reorganization, the Group will consist of three sectors – Pharmaceuticals, Chemicals, and Plastics – instead of four today.
ABB Lummus withdraws out of Oman polypropylene joint venture
ABB Lummus Global announced the withdrawal from a joint venture to build Oman’s $230 million polypropylene plant.
According to Oman Polypropylene Company, ABB has pulled out of the project due to internal reasons. Oman Polypropylene is a joint venture set up in 2002 where state-run Oman Oil Company (OOC) holds a 60 per cent stake and South Korea’s LG Engineering holds 20 per cent ABB had a 20 per cent shareholding for the 340,000 MT/year project due to be completed in 2006. The plant will be built next to the 75,000 barrels per day Sohar refinery, which is under construction.
Comments: ABB has been in financial trouble due to the asbestos liabilities in the US. The company lost $691 million in 2001 due to a slump in the markets for its major products, such as power systems and equipment and industrial automation and controls. The company has put its oil & gas businesses for sale to reduce the company’s debt but has been unsuccessful in finding a buyer.
Due to the company’s financial problems, it has been losing several projects. Recently, Essar Oil called off its proposed equity private placement deal with ABB Lummus through the foreign currency convertible bond (FCCB) issue and also announced replacing ABB Lummus as the EPC contractor for its upcoming 10.5 million refinery project at Vadinar, Gujarat, India.
The polypropylene plant to be built will be using Novolen technology. The Oman government is now looking for a replacement for ABB Lummus.
GAIL and DuPont India formed a marketing alliance for pipe coatings
Gas Authority India Limited (GAIL) and DuPont India have signed a marketing alliance for selling the DDG system, which comprises DuPont Fusabond® adhesive products, DuPont Nap-Gard® epoxy powder, and GAIL’s high-density polyethylene compound, as a package in India and abroad.
According to the agreement, the two companies will market the three-layer polyethylene pipe coating system in India and select world markets, to begin with, and explore other opportunities for expanding the market. The DDG system will henceforth be a preferred choice for all the pipeline projects undertaken by GAIL.
Comments: The marketing alliance between DuPont and GAIL will help both companies increase the market shares for their products. DuPont’s Fusabond® adhesive products comprise of functionalized polyolefins mainly used in coupling and adhesives applications. The DDG pipe coating systems are comprised of three layers of polyethylene and are widely used for steel pipes.
GAIL Ltd is India’s principal gas transmission and marketing company and was set up by the Government of India in August 1984 to create gas sector infrastructure for sustained development of the gas market in the country. The company then expanded into Gas Processing, Petrochemicals, Liquefied Petroleum Gas Transmission, and Telecommunications. The company has also extended its presence in Power, Liquefied Natural Gas re-gasification, City Gas Distribution, and Exploration & Production through equity and joint venture participation. This deal will not only help GAIL in increasing markets for HDPE but also help them market the coatings for their pipelines.
BASF sells polystyrene specialty compounds business to Spartech
BASF sold its specialty polystyrene business – which includes compounds of flame retardant and antistatic polystyrene specialty products – to Spartech Polycom SAS, a subsidiary of Spartech Corporation and a leading producer of polymer compounds with production facilities in the US, Mexico, and France. Annual sales of the business amount to approximately 9 Million Euros in Europe for the year 2003.
The production of polystyrene compounds will be transferred to Spartech’s production plant in Donchery, France. BASF will close its polystyrene compounds production in Ludwigshafen, as announced in October 2003.
Polystyrene compounds with special flame retardant or antistatic properties are materials that have been developed for customer-specific processes, providing processors with efficient economic solutions. Flame retardant polystyrene is widely used in the electric/electronic sector (E&E), whereas antistatic polystyrene is applied in the packaging industry. These polystyrene compounds add to Spartech’s product range of compounded polystyrene and polyolefins.
Comments: Most people probably don’t remember but Spartech, former Polycom-Huntsman, former Polycom, had the first major tolling contracts from Shell Polystyrene’s Belpre, Ohio plant to make Ignition Retardant Polystyrene (IRPS) for the big TV market of the 1970’s when the US still made these products here and UL standards ruled and polystyrene won out over several competing polymer systems for TV’s.
Shell Chemical virtually invented IRPS and Spartech’s lineage continues this experience tradition. Spartech has run (Shell + Huntsman + NOVA) probably more IRPS than all other producers combined in the World. This move to move a similar business from BASF to Spartech’s French Plant is a logical strategic move, for both parties. The next challenge in this market for everyone is non-halogenated IRPS. The jury is still out on the best road here.
AEI Compounds Ltd. develops soft TPO specialty compounds
UK-based company AEI Compounds Limited has developed innovative specialty compounds based on Engage® polyolefin elastomer from DuPont Dow, using patented ‘RM’ in-process reaction compounding technology in close cooperation with DuPont Dow Elastomers.
According to the company, the development offers elastomeric compounds with enhanced thermal, abrasion, and mechanical toughness for applications such as flexible cable insulation and sheathing, and automotive flooring and profiles made by blow molding, calendering, sheet extrusion, over molding and slush molding.
The first compounds resulting from the collaboration are AEI Compounds CT03-77A, a translucent material with excellent resistance to abrasion and stress whitening for extruding or calendering into automotive profiles or sheets for automotive flooring, and CT03-77B which is co-grafted during the reactive compounding process for paintability without priming, and for adhesion to polar substrates.
According to DuPont Dow, the patented Engage RM technology is at the leading edge of soft TPO performance and the two new products from AEI further expand the performance envelope of soft TPOs for the automotive and other industries.
Comments: Dow introduced ethylene-octene copolymers in 1993 using Dow’s Insite® catalyst technology. Ethylene-octene copolymers of more than 20% octene content are classified as elastomers and are sold under the trade name Engage. Engage competes with other elastomers such as footwear, compounding, wire & cable, industrial, and others.
Engage elastomers are used in the manufacture of TPOs. TPOs based on engagement are used in various applications such as automotive, recreational goods, appliances, housewares, and other miscellaneous applications.
In recent years soft TPOs have gained popularity and are growing at very high rates. Soft TPOs based on Engage offer performance benefits that help in reaching newer markers.
Rexam acquires the plastic pharmaceutical packaging business of Compagnie Plastic Omnium
Rexam announce the signing of an agreement with Compagnie Plastic Omnium, a French plastics company, to acquire its pharmaceutical packaging business, Plastic Omnium Medical, for a total cash consideration of EUR 32.5 million, including borrowings assumed with the business.
Plastic Omnium Medical has one factory based in La Verpillière, south of Lyon in France, and employs approximately 170 people. The business serves a number of European plastic pharmaceutical packaging market segments, including drug delivery devices and inhalers. It is one of the main suppliers of the multidose dry powder inhaler to GlaxoSmithKline, a product that is also supplied by Rexam.
In 2003, Plastic Omnium Medical had sales, excluding tooling, of EUR26m and EBIT of EUR5.4m. As of 31 December 2003, its net operating assets were EUR16m.
Comments: Rexam is one of the leading packaging companies participating in food, healthcare, pharmaceutical, beauty, beverage, and others. Recently Rexam sold its healthcare flexible packaging business to Amcor. This was the only flexible packaging business for Rexam and the company decided to divest it and focus on its core competencies. Continuing to expand in areas of its core competencies Rexam is acquiring a plastic pharmaceutical packaging business from Compagnie Plastic Omnium. This acquisition will make Rexam the joint No 2 supplier of pharmaceutical molded plastic packaging in Europe.
In 2003, Rexam sold part of its healthcare flexible packaging business to Amcor to reduce debt. The deal included four plants in the US and 6 other plants.
Kuraray to manufacture methacrylic resin sheets in China
Kuraray Co., Ltd. has announced its plans to manufacture methacrylic resin sheets using a casting process in China. Construction of a 3,000 MT/year factory will begin in June 2004, and the new plant will commence operations in the summer of 2005. The total investment in the project will be $500 million.
The new company will be named Kuraray Methacrylate (Zhang Jia Gang) Co., Ltd.
Comments: The demand for cell cast acrylic sheets in China for 2003 is about 13 KT. Glazing and building panels are the largest applications constituting about 52% of the overall Chinese Cell cast sheet markets. Signs and displays constitute 18% while sanitary ware constitutes 14% and the rest is accounted for by miscellaneous applications. The demand far outstrips the production leading to significant import volumes. Taiwan and Japan are the leading exporters of acrylic sheets to China.
The booming construction industry is the critical market driver for cell-cast acrylic sheets in China for building panels and glazing. The 2008 Olympics in Beijing boosted demand for building materials as the city has to prepare a solid infrastructure and build enough facilities to house the event. Modernization of several cities in China has resulted in increasing demand for acrylic advertising signs & displays. The number of up-market condominiums and hotels is growing at a rapid pace, so demand for acrylic sheets for use in bathtubs and other furnishings is fast expanding. This market, consequently, is expanding at an annual rate of slightly over 10%.
An acrylic sheet offers excellent clarity as well as superior weather ability and making it an ideal choice in applications that include electric signboards, lighting fixtures, and automobile taillight covers. Kuraray’s new factory will have an annual capacity of 3 KT, and will primarily produce sheets for bathtubs, signboards, and displays.
GE Advanced Materials’ Noryl® finds application in painted automotive body panels
The recently launched BMW 6 Series has started using GE Advanced Materials’ NORYL GTX® resin for its series of molded painted body panels. The resin, a modified high-performance PPO®/PA alloy, was selected by BMW for its broad chemical resistance, stiffness, impact strength, and superior high-heat performance. BMW sees lightweight technology as one of the most important elements of future car development and design.
General Electric’s NORYL GTX, XENOY, or LEXAN SLX-based fenders, or other body panels can reduce weight by up to 40 percent compared with steel. They also offer chemical and impact resistance and can withstand dents and dings from low-impact collisions. Automotive designers have increasingly preferred GE Advanced Materials’ resins because they can enhance both styling freedom and performance and can be molded into complex shapes that are difficult to achieve in metal.
Comments: GE introduced Noryl® modified polyphenylene oxide (PPO) resin in 1964 and since then these resins are widely used in various applications including (1) computer and business housings, (2) automotive instrumental panels,(3) microwavable food packaging, (4) automotive under the hood components, (5) appliances and others. All Noryl products are based on PPO resins and are blended with either polystyrene or polyamide.
GE manufactures Noryl at its plants in Selkirk, New York, in Japan, and the Netherlands. Noryl resin properties that are suitable for automotive application include resistance to automotive fuels, greases, and oils, and resistance to detergents, alcohols, and aliphatic and aromatic hydrocarbons.
Studies question health effects related to nanotechnology
Conclusions from a recent study are the first indications of nanoparticles’ toxicity in aquatic environments. A recent study by Southern Methodist has concluded that exposure to C60 fullerenes can cause brain damage in fish. C60 fullerenes have been studied as a way of cleaning up groundwater and sediments, but the most recent data indicates their use could have a toxic effect that requires further examination, researchers say. Fullerenes are also being studied for use in drug delivery systems and fuel cells. Industry representatives say SMU’s findings are preliminary and have not yet been peer-reviewed.
Congress established the National Nanotechnology Initiative (NNI) last year, authorizing $3.7 billion in R&D. An undetermined part of that funding is earmarked for research into the health and environmental effects of nanoparticles. Senator Ron Wyden (D., OR), a sponsor of the law, told attendees at an NNI conference that there is currently too little known about the adverse health and environmental impacts of nanoparticles to regulate them. Wyden says lawmakers should allow scientists to proceed with research before issuing regulations.
Researchers at DuPont found last year that carbon nanotubes can damage lungs if inhaled. The nanotubes are so small that the cells that normally resist other air contaminants are not equipped to handle them, animal studies show. Activist groups say they are concerned that research into new applications for nanoparticles is outstripping the pace of health effects research.
Comments: Safety is one of the major issues associated with nanotechnology. There have been mixed feelings regarding the interaction of nanomaterials with people and the ecosystem. Nanoparticles that can be used as drug-delivery agents to cross the blood-brain barrier and deliver therapeutic agents to particular parts of the brain have been developed. However, conflicting data have been reported by scientists regarding the adverse effects of these particles. One of the most common ways for humans to get exposed to nanoparticles is through inhalation. Due to their lightweight, carbon nanotubes become airborne. When inhaled, these particles are deposited through the respiratory tract and eventually end up in body parts such as the liver, central nervous, and cardiovascular systems. Research has shown that ultrafine particles (smaller than 100 nm) are significantly more potent at inducing inflammatory lung injury than larger particles. It has been found that on an equal weight basis, carbon nanotubes can be more toxic than carbon black or quartz if they reach the lungs. Therefore, strategies to minimize human exposure need to be implemented in case of the presence of nanotubes in the workplace.
Besides the technological advances it promises, nanotechnology brings risks along with it, whose perception has been on the rise. The toxicology of carbon nanotubes is poorly understood and the answers to its health effects are not known yet. Continued research and testing is required before these questions can be answered.
FlexPO2004 will discuss the current status of nanotechnology in polymers – The basic question we want to discuss is – “Are we ready for nanotechnology in polymers or is it a misunderstood technology with devastating consequences later on?”
Contact us at ADI Chemical Market Resources to learn how we can help.