High growth in PP demand to continue

October 28, 2000 - An exceptional growth in polypropylene demand in 1999 has been followed by slightly lower, but still good, demand this year, leading to an annual average of 8·3 per cent through to 2004, according to US analyst Phillip Townsend Associates. This represents an increase in demand of 13·5 million tonnes over the 1999 - 2004 period.
     In its 6th annual report on polypropylene Townsend shows higher-than-worldwide average growth in Asia/Pacific and North America. Asia/Pacific is the largest consuming region with a demand of 7·5 million tonnes. Townsend says that growth of 13·7 per cent proves that the Asian economic crisis has passed.
     Growth in North America was 12·4 per cent in 1999.
     Only the Middle East/Africa (1·8 million tonnes, 9·5 per cent growth) and South America (1·2 million tonnes, 7·2 per cent growth) experienced 1999 growth rates that were less than their five-year averages.
     Polypropylene's price and performance have spurred its growth in injection moulding, and over the next five years Townsend is predicting a 9·1 per cent annual growth rate. In fibres, says the company, spunbonded products are displacing staple fibre in non-woven applications in North America and Western Europe, and Townsend predicts average growth rates of 12·0 and 9·4 per cent for fibres in North America and Western Europe respectively.

The latest price rises

October 28, 2000 -
 All Basell's polyethylene grades are going up by DM 0·1/kg on November 1.
 Ticona is increasing the European prices of some of its engineering polymers on November 1. The increases are:

• Hostaform acetal standard grades: Euro 0·20/kg
• Hostaform acetal glass reinforced grades: Euro 0·26/kg
• Hostaform acetal speciality grades: Euro 0·28/kg
• Celanex PBT and Impet PET: Euro 0·20/kg
• Vandar thermoplastic polyester blends: Euro 0·31/kg
• Riteflex TPE-E: Euro 0·31/kg
• Fortron PPS: Euro 0·31/kg

 Technyl and Oromid nylon 6 and 66 made by Rhodia Engineering Plastics go up Euro 200/tonne on November 1.
 Rubber blacks made by Degussa-Hüls go up by Euro 40/tonne in Europe on November 15. As well as high crude oil prices, the company blames the weakness of the Euro for the increase.
 Kaolin and ground calcium carbonate produced by Imerys Pigments and Additives Group will increase in price on November 15 in North America and on January 1 in Europe. The amount of increase will vary according to product, but will be in the region of 6 - 13 per cent in most cases.
 Cytec Industries is increasing the price of its liquid and powder Cyrez rubber chemicals globally on November 1 by up to $0·15/lb.

Higher costs and falling volumes hit Borealis' profits

October 28, 2000 - Despite rising polyolefin prices since the third quarter of last year, Borealis says that feedstock costs have outstripped them and this, coupled with reduced demand, has brought lower third quarter profits. The company's operating profit for the third quarter fell from Eur 63 million last year to Eur 28 million. Despite this third quarter drop, Borealis' first three quarters' operating profit increased from Eur 130 million to Eur 141 million on lower sales volumes.

FR/filler distribution deal

October 28, 2000 - Fire retardants and fillers from the USA are being brought to Britain in a new co-operation between Cairn International and Delamin.
     Cairn is to distribute Delamin's zero-halogen FR additives Delamag Hydro magnesium hydroxides and Melem, together with the Microglass milled glass fibres and Micronite Wollastonites from Fibertec USA.

Wide bonding compatibility for TPV

October 28, 2000 - A thermoplastic vulcanisate that can bond to ABS, polycarbonate, ABS/PC blends, polystyrene, acrylic, ASA and PET has been developed by Advanced Elastomer Systems.
     The new Santoprene TPE B100 material, initially available as a developmental grade in 55 Shore A but intended for production in other hardnesses, will enable the same material to be used to add soft touch elements to components made from different engineering polymers but assembled into a single product, giving consistency across coloration and feel of the soft touch.
     The first commercial application is for a handle grip on a commercial vacuum cleaner.

Borealis' Brazil compounding venture is finalised

October 28, 2000 - The planned co-operation between Borealis and South America's biggest polymer producer OPP Petroquímica of Brazil announced last year is coming to fruition in a 50,000 tonnes/year polypropylene compounding business.
     A new company, Borealis-OPP, is to be set up which will be owned 80 per cent by Borealis, and will take over OPP's two compounding plants. The aim will be to produce compounds for automotive and home appliance companies in South America. The new company will increase Borealis' compounding capacity in this market by 30 per cent to 200,000 tonnes.

Film producers cry foul over crippling legislation

October 28, 2000 - Flexible packaging producers in the UK are now the least profitable in Europe following a 78 per cent plummet in profits over three years, according to their trade association the Flexible Packaging Association.
     The FPA says that investment of more than £150 million has been necessary in this period to meet UK environmental legislation and to apply new technologies crucial to competitiveness, and is now calling on MPs and MEPs to ease the growing number of restraints it sees being placed on the industry.
     The FPA, in a joint initiative with the British Plastics Federation and Packaging and Industrial Films Association, points out that flexible packaging employs 250,000 people and contributes £17 billion annually to the economy. But it says that factors including a strong currency, relatively high interest rates, extremely high fuel costs and increasing burden of environmental legislation have undermined the viability of the industry over a very short time, such that the first quarter of this year showed the worst results for the sector ever recorded.

Maag adds screenchangers to gear pumps

October 28, 2000 - Maag Pump Systems, the Swiss gear pump manufacturing division of US-based Textron Fluid Handling Products, is buying German screenchanger manufacturer Wil-Man. Production will continue in Germany, but screenchangers for the US market will be built at Maag's new plant in Charlotte, North Carolina.
     Last year Textron bought US gear pump maker LCI Corporation.

Genge broadens his role at Atofina

October 28, 2000 - Mike Genge, currently Atofina UK's Chemicals Division director, is to become commercial director overseeing sales for both chemicals and plastics. He takes up his position on the retirement of Plastics Division director Roger Mallaburn at the end of the year.

Acetal expansion

October 28, 2000 - Ticona is increasing capacity for acetal at its Kelsterbach site in Germany. The expansion will take the site up from 77,000 to 100,000 tonnes and is scheduled for completion by the end of 2002, at a cost of Eur 25 million. With its US production this will bring Ticona's worldwide POM capacity up to 186,000 tonnes.
     Ticona also has a 45 per cent stake in Polyplastics of Japan, which brought a 30,000 tonnes plant on stream in Malaysia earlier this year, taking Polyplastics' acetal capacity up to 150,000 tonnes.

Dow plans Chinese epoxy plants

October 28, 2000 - Dow Chemical is to build a 40,000 tonnes converted epoxy resin production plant at its Zhangjiagang site in China. Production should start in the first half of 2003, and a 40,000 tonnes liquid epoxy resin plant will be added in 2004.
     Dow is currently also building an emulsion polymers plant on the site, and its joint venture with Asahi Chemical is building a polystyrene plant there.

GE to acquire a major position in nylon

October 26, 2000 - The takeover of Honeywell International - until recently AlliedSignal - by The General Electric Company which was approved by the boards of both companies this week is significant in some key industrial areas - avionics, automated controls, power and transportation and performance materials. While the detail of how the businesses will be integrated is unlikely to become clear much before the anticipated completion of the deal next February, it is apparent that GE Plastics will benefit substantially from the addition of the ex-AlliedSignal polymer portfolio.
     In particular, Honeywell is a major player in nylons, with prominent brands in both engineering applications and fibres. It is also a pioneer in nylon recycling through the Evergreen joint venture with DSM which opened in November last year with the capability of returning around 90,000 tonnes a year of nylon 6 carpet scrap back to caprolactam.
     Honeywell also brings to GEP capacity in speciality polyethylenes and polyesters. Other product ranges in the Honeywell portfolio which augment GEP's semi-finished materials businesses include high strength and speciality fibres and fluoropolymer films.

Arrk buys South-West toolmaker

October 26, 2000 - Rapid Tooling specialist Arrk Formation has bought Paignton-based injection moulder and toolmaker PTS Europe. PTS specialises in the design and manufacture of multi-cavity two-plate, three-plate and hot runner tools with emphasis on the cosmetic packaging, electrical and automotive sectors.

PVC: Vestolit pulls out of EVC takeover while Solvay expands in Brazil

October 14, 2000 - Vestolit will not now be buying European Vinyls Corporation. Earlier in the year the German PVC producer made a cash-based approach to EVC which was being considered, but a downturn in the PVC market has negatively affected EVC's profitability and cash flow and the discussions between the two companies have been closed.
     EVC says that the combination of reduced demand, lower selling prices and higher oil costs looks like giving it an operating loss in the third and fourth quarters, causing it to restructure its existing loans. EVC has plans for a restructuring process to reduce costs, and is planning to cut Euro 20 million of fixed costs over the next 12 months. It is also considering disposing of some of its businesses.
     Vestolit is the former Hüls PVC business which became a wholly-owned subsidiary of Degussa-Hüls in 1995, and in December last year was bought by an international financial consortium led by Candover in London and D George Harris & Associates in New York.
 Solvay, on the other hand, has been successful in expanding its PVC business, and has just announced a new joint venture in Brazil to make compound. It has linked with the Dacarto group to form Dacarto Benvic, with three production units and 400 employees.
     Solvay's Benvic business has 200,000 tonnes of PVC capacity in Europe and specialises in rigid compounds. Dacarto is the Brazilian leader in plasticised compounds, with a range of some 1,200 recipes.

Borstar PP now a reality

October 14, 2000 - The 'multi-modal' Borstar polypropylene process, introduced two years ago by Borealis, is now officially on-line at the company's Schwechat plant in Austria after its start-up in May. The combination loop/gas phase process is said to be capable of producing new PP copolymers combining high strength with easier extrudability. The Schwechat plant has a capacity of 200,000 tonnes. Borealis is also offering the process for licensing.

TiO₂ distributor

October 14, 2000 - Cornelius Chemical is now the official UK distributor for all grades of chloride and sulphate route titanium dioxide pigment made by Kerr-McGee.

Dow promotes ESI in Japan

October 14, 2000 - Dow Chemical has joined with Mitsui Chemicals to develop Japanese markets for its ethylene styrene interpolymers. These are copolymers of ethylene, styrene and potentially other monomers as well made possible by Dow's Insite technology. ESI materials have properties including stress relaxation and high mineral filler loading capability that Dow says will open up new applications.
     The deal with Mitsui extends the relationship between the two companies which, in 1999, brought a cross-licensing agreement in metallocene-catalysed ethylene copolymers.
     Dow is currently making ESIs in a 22,700 tonnes development plant in Canada.

Black masterbatch price increase

October 14, 2000 - Degussa-Hüls is increasing European prices for its pigment black masterbatches by 4 per cent from November 1. This latest increase in carbon black prices reflects higher materials costs, but the company warns that it does not yet take into account higher costs for transportation in Europe.

TP taken over by Japanese moulder

October 14, 2000 - Telford-based injection moulder TP Consumables is being bought by major Japanese injection moulding and tooling company Shimizo Industry Co. Shimizu has bought part of TP Consumables and renamed it TP Moulding.

Japanese additives producer sets up in Europe

October 14, 2000 - Japanese additives manufacturer Asahi Denka Kogyo has set up a European distribution company and is planning European manufacture. It has formed Adeka-Palmarole in which its former distribution agent Palmarole Group holds a share. The new company is located at the former office of Palmarole France in Bettlach, France, near Basel in Switzerland. As well as selling the ADK range of polymer additives, Adeka-Palmarole will also sell products developed by Palmarole. ADK's range includes PP nucleating agents, light stabilisers, antioxidants, biocides and non-halogenated flame retardants, while Palmarole adds custom masterbatches, additive blends and some commodity nucleating agents.
     ADK has manufacturing sites in Taiwan, Thailand, Malaysia, Korea and the USA, and Adeka-Palmarole intends to set up European production of selected products from the ADK range.

Berry continues cap expansion

October 14, 2000 - Berry Plastics Corporation, the US-based packaging injection moulding group which took over and renamed Norwich Injection Moulders, has bought another European aerosol cap moulder. Earlier this year it bought Capsol Certwood UK, and has now followed this by buying the Italian Capsol company, and a related company called Ociesse. Capsol has sales of more than $10 million in aerosol overcaps and closures, and will be renamed Capsol-Berry Plastics. Berry now produces overcaps at four sites, two in the US and two in Europe - in the UK and Italy.

Coating equipment agency

October 14, 2000 - Coating equipment manufacturer Pagendarm BTT of Germany has appointed Engelmann & Buckham as its UK representative. The company builds coating systems, dryers and moisturisers for applying technical coatings to films, paper and foil.

Taylor continues plant investment

October 14, 2000 - Taylor Engineering & Plastics has followed its £1 million investment in RIM machinery with a further £100,000 investment in a robotised painting line at its Rochdale plant.

Uponor scoops Transco pipe business

October 14, 2000 - The largest ever order in Uponor's history has been won by its British subsidiary Uponor (UK). BG Transco is to buy all its polyethylene gas pipes and fittings from Uponor over the next three years and possibly five, potentially £100 million - £160 million worth of sales depending on the actual duration and demand. In a previous five year agreement Uponor supplied two thirds of Transco's UK needs.

First extrusion OEM for MuCell

October 14, 2000 - Trexel has signed up its first extrusion machinery manufacturer to build equipment using its MuCell microcellular foam technology. It has sold a licence to ExtrusionTek Milacron of the USA to equip new single or twin screw extruders with the process, or retrofit extruders of any make.

Werner & Pfleiderer joins Buss, Waeschle

October 13, 2000 - ThyssenKrupp has taken another step away from plastics machinery with the sale of its Werner & Pfleiderer compounding machinery division. W & P was left behind when ThyssenKrupp sold its blow moulding businesses earlier this year to the Swiss SIG packaging group.
     Now it has been sold to a new company set up by Georg Fischer of Switzerland and financiers West Private Equity of Britain and Westdeutsche Landesbank Girozentrale of Germany. Georg Fischer already owns Waeschle and Buss which are both involved in building machinery for compounding, and takes a 50·1 per cent stake in the new business. The aim is to sell off the group in 3 - 5 years, most likely by a public flotation.
     Where this leaves the Werner & Pfleiderer offshoot in the UK is still to be decided. Since the sale of the blow moulding businesses and restructuring of the former Krupp Plastics Machinery company in Milton Keynes to become SIG Plastics Technologies, Krupp W & P has continued its major operations from its Marple site near Stockport, using the Milton Keynes company as an administration bureau. Georg Fischer, however, already has a UK compounding equipment company, Buss Waeschle, in Cheadle Hulme.

K-Tron buys Colormax

October 4, 2000 - K-Tron International has bought Colormax. Both companies make filterless hopper loaders, the Colormax machine using Dyson vacuum cleaner technology. Colormax will continue to operate from its Telford base under the control of its founder Roger Lee as a group company of K-Tron International.

Milacron adds Canadian ancillaries companies

October 13, 2000 - Milacron has further widened its position in plastics equipment with the purchase of two related Canadian companies. Ontario Heater and Supply Company and Rite-Tek Canada are involved in maintenance and repair, and make heater bands.

You wait for a new PBT plant, then two come along at once

October 12, 2000 - Bayer has pulled out of the consortium studying the feasibility of a new European PBT plant, and instead has joined with DuPont in a more decisive joint venture. The potential for a new plant to meet demand growth of 7 - 9 per cent for PBT - one of the highest annual growth rates for engineering polymers - was being considered by DSM and Ticona. Bayer announced its intention to join in earlier this year. DSM and Ticona had set a target of 2003 for a world scale plant which would feed PBT into both their existing product lines.
     Bayer's decision to withdraw from the study comes with the signing of a letter of intent with DuPont to build an 80,000 tonnes plant also to come on stream in 2003. Siting has not been decided, but it is expected to be at an existing Bayer or DuPont facility.
     Meanwhile, the original Ticona/DSM project has been stepped up a gear, with the two partners now looking worldwide, although the focus remains on building a plant in Europe.

Owens-Corning restructures to meet asbestos claims

October 12, 2000 - Glass fibre giant Owens-Corning has filed for Chapter 11 bankruptcy protection in the USA while it reorganises its financial structure to protect the cash flow it needs to continue in business. The move has come after a series of legal claims for damages from an asbestos product called Kaydo which it made and sold between 1952 and 1972. More than 460,000 asbestos-related personal injury claims have been made against the company, with damages and costs exceeding $5 billion - coincidentally the equivalent of the company's annual revenue.
     With the Chapter 11 filing has come a $500 million financing commitment from the Bank of America which, with other finances on hand says Owens-Corning, will give the company sufficient liquidity to meet future financial obligations. Group companies outside the USA are not affected.

Rhodia to increase nylon production

October 7, 2000 - Rhodia Engineering Plastics is increasing nylon production in Europe. It has recently made production investments in Korea, Poland and North America, and now the company has slated capital spending of around Euro 23 million to increase nylon 6 and 66 polymerisation and compounding capacity at three sites in France, Italy and Poland. The investment will raise Rhodia's capacity by 20 per cent.

DuPont raises prices

October 7, 2000 - DuPont is raising the prices of its engineering plastics. On October 16 the prices of Crastin PBT, Rynite PET, Delrin POM, Hytrel TPE, Minlon reinforced materials and Zytel nylon 6 and 66 go up by a minimum of Euro 0·2 - 0·3/kg.

PVC impact modifier price increase

October 4, 2000 - Rohm and Haas is increasing the European price for its Paraloid impact modifers on November 1. MBS resins will go up 7 per cent and acrylic modifiers by 5 per cent.

Borealis/DuPont joint venture underway

October 4, 2000 - The ethylene copolymer joint venture between Borealis and DuPont has begun operations. Speciality Polymers Antwerp is making ethylene copolymers and polyethylene at the 125,000 tonnes Zwijndrecht, Belgium, plant formerly owned by Borealis in which the two partners now each have a 50 per cent stake.
     The plant will be used to further develop EVA and ethylene acrylate copolymers, and there are plans to broaden the range of copolymers produced.

DSM seeks a partner for its petrochemicals businesses

October 1, 2000 - DSM is planning to hive off its polyethylene, polypropylene and hydrocarbon businesses by combining them into a separate operation to be shared with 'a global industrial partner'. The plan is part of its long term strategy to reduce dependance on volume businesses which are sensitive to economic cycles, and instead to major on speciality chemicals.
     The company is currently working towards a sales target in 2002 of Euro 8 billion of which 60 per cent will come from life science products and performance materials. By 2005 it wants to raise that to Euro 10 billion, with 80 per cent accounted for by advanced chemical and biotechnological products and performance materials. The rest of its sales it sees coming from products such as melamine and caprolactam.
     DSM describes its petrochemicals businesses at Geleen in the Netherlands and Gelsenkirchen in Germany as among European leaders, partly because of their high capacity per site. This is a good position for future growth, and large investments are planned for 2001 - 2004, mainly at Geleen. But because of the global changes that are taking place in this sector it is looking for another international company to share the investment.

Basell gets US green light

October 1, 2000 - The US Federal Trade Commission has approved the merger of Shell and BASF's polyolefins operations into Basell. The 50:50 joint venture has already been approved, subject to conditions by the European competition authorities.
     Merging Montell, Elenac and Targor will create the world's leading polyolefins producer with revenues of more than $6 billion. Basell will be the global leader in polypropylene and the fourth largest producer of polyethylene, with more than 20 production sites in Europe, Asia and the Americas and about 10,000 employees.

EC approves German window frame merger

October 1, 2000 - The European Commission has approved the purchase from receivership in Germany of the Kömmerling extrusion/adhesives/sealants group by H T Troplast, part of the RAG group. Both companies are involved in the PVC window frame market, but the EC has decided that the merger will not create or strengthen a dominant position.

Silicas up in price again

October 1, 2000 - Degussa-Hüls is increasing European prices for silicas and silicates by 8 per cent on November 1. Earlier this year it increased prices 5 per cent.

ATO to expand in acrylics

October 1, 2000 - ATOFina is raising its world wide methyl methacrylate monomer capacity to 250,000 tonnes through a deal with Rohm and Haas in the USA. Rohm and Haas is to add 115,000 tonnes of MMA capacity to its Deer Park, Texas site, where it already has 360,000 tonnes, and the majority of the additional capacity will be allocated to ATOFina, primarily for use by its subsidiary Atoglas in acrylic sheet and resins production.

OPP film agency deal

October 1, 2000 - Film distributor Soretrac has taken on representation of the biaxially oriented polypropylene films made in Germany by Bayer group subsidiary Walothen. The films are used in a variety of markets including print laminating, wrapping of durable items like CDs, and in form, fill and seal applications such as for bakery goods.