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Cincinnati and K-M to supply 'hundreds of extrusion lines' to China May 28, 2003
A massive contract to supply extrusion systems to China is being placed with several European companies. Dalian Shide Plastic Industry Co is planning to build 11 PVC window profile plants and is sourcing reportedly 'several hundred' extrusion lines from Cincinnati Extrusion and Krauss-Maffei. In addition it will be buying tooling from Greiner, Technoplast and Topf, and materials handling equipment from Reimelt.
Dalian Shide was set up in 1995 as a joint venture with Theysohn to make PVC profiles, using German-built compounding, extrusion and window manufacturing plant, with an annual capacity of 12,000 tonnes. This rose to 160,000 tonnes by 1999 when it began a major growth programme to increase its capacity by 50 per cent, with further plans to more than double its output. This capacity increase was with Cincinnati Argos extruders running Greiner tooling and with Reimelt materials handling. Current projections are for annual output to reach 700,000 tonnes in 2007 and eventually 1,500,000 tonnes in 2015. Last year Dalian Shide bought 40 of the Krauss-Maffei higher performance 36 D extruders that were introduced in 2001.
The exact numbers or value of extrusion lines on order currently from each company have not been revealed.
Dalian Shide is a cornerstone of the Shide Group which is one of China's biggest users of PVC and VCM and which set up its own PVC and VCM production with the foundation of Dalian Shide Petrochemical Co in 2000. A $1·2 billion 500,000 tonnes PVC and VCM plant is due for completion this year and will be followed by another plant at Jiaxing, in Zhejiang. In addition the group has been negotiating to set up petrochemical production in Saudi Arabia with a view to becoming an international PVC and VCM supplier.
Dalian Shide also has a joint venture company in PVC additives with Chemson of Austria.
The importance of the Dalian Shide business to Cincinnati is such that Cincinnati has set up a spares and service subsidiary, Cincinnati Extrusion (Dalian FTZ) in the Free Trade Zone of the port of Dalian.
SolVin to shut Ludwigshafen PVC/VCM plants May 28, 2003
The Solvay/BASF 75/25 joint venture in PVC is to close its Ludwigshafen, Germany, plant. SolVin, which was set up in 1999 to rationalise the way both companies addressed the PVC market, says the VCM and PVC plants at Ludwigshafen are not run as world scale plants, so will be shut down on January 1, 2006. The capacity will be replaced with increased capacity at other plants, making them more effective.
SolVin has operations in France, Germany, Italy, Spain and the Benelux countries and a total capacity of some 1·3 million tonnes of PVC.
Contract profile laminating company Profile Wrappers of Tamworth has been bought by its management from founders Steve and Janice Collingwood. The company specialises in the application of PVC or paper film to aluminium, UPVC and compressed board products, enabling large extrusion companies to outsource the finishing of extruded profiles with wood effect and other colour foil sheets.
The buy-in was led by Graham Morrell, who has a background in engineering and coatings manufacturing, and plans to expand the company through investment in new machinery and by developing new business in the uPVC door and conservatory markets. Current turnover is around £3 million.
Deceuninck buys in-house seals capacity May 28, 2003
The Deceuninck Group, which recently bought the Thyssen PVC window profile business, has now bought a majority stake in Belgian seals producer Detajoint. The 75 per cent shareholding is part of Deceuninck's strategy of keeping as many processes as possible in-house.
Detajoint, which was established in 1995, specialises in the extrusion of TPE seals and in 2002 had sales of Eur 2·5 million from selling seals to companies in the building and automotive industries. Deceuninck expects Detajoint to double its sales to Eur 5 million in 2003.
The Deceuninck Group uses more than 30 million meters of seals annually, mostly being inserted into the profiles as they are extruded.
Degussa company Röhm Molding Compounds is to increase the price of Plexiglas acrylic moulding compounds from July 1 by Eur 0·25/kg.
Buy-out at PVC recycler May 22, 2003
PVC recycler Plasgrind of Burnley has been bought by its management from Plascoat International. Former operations director Chris O'Connor, becomes managing director. The company has a current turnover of around £800,000, with a target of 20 per cent growth in the first year, and to achieve this it plans to recruit more staff and install new machinery.
Borealis restructures its R & D May 22, 2003
Borealis has now finalised the rationalisation of its research and development facilities which it announced earlier this year and the new structure will become operative from June 1. The company's R & D activities had been fragmented because of the way the company has evolved, and now have been aligned with product development and marketing. They have been consolidated in four Innovation Centres in Linz, Austria; Porvoo, Finland; Rønningen, Norway; and Stenungsund, Sweden.
Engineering applications (automotive and household appliances) are focused on Linz; film and fibre on Linz and Rønningen; moulding on Rønningen; pipe, wire and cable on Stenungsund; and catalyst and process research will be carried out at Porvoo.
With the new concentration has come a reduction of around 100 in staff levels, to some 500.
New Lexan grade is the key to degradable one-trip DVD May 20, 2003
An optical disc process that relies on the disc medium degrading to the point of obscurity is to be tried in the USA. The patented EZ-D DVD from Flexplay is made with a specially developed grade of Lexan polycarbonate from GE Plastics. It is supplied in a sealed package, and on opening starts to degrade through contact with the air. After 48 hours the disc has lost sufficient transparency to prevent it being read.
The target is the rental market. By making the DVD degrade it becomes a one-trip disc. This means that the renter doesn't have to return it, does not face extra charges for late return, and because a brand new disc is supplied on each rental, there is no risk of it having been scratched or otherwise damaged by previous rentals. The disc can be sold through any retail outlet because there is no need for a returns structure, increasing the convenience factor.
Facilities are being put in place for users of the EZ-D disc to mail it to a recycling centre.
The new Lexan grade is a copolymer in which the polycarbonate is produced with an undisclosed additional monomer to bring on the oxygen degradation. The structure of this copolymer 'controls the kinetics' - it enables the rate at which degradation occurs to be defined. The material has been developed specifically for this application in a two year programme with Flexplay. GE intends to 'maximize this technology globally'.
The Flexplay DVD behaves like a conventional DVD, can be read in all types of DVD players and gaming systems, and has the same copy protection systems as conventional DVDs. The obscuration process only starts when the package is opened, and the disc has a shelf life of about a year before opening. A visual indication of degradation is given to the user by the disc colour changing from red to black. There are no residues or other effects on the DVD player.
Flexplay says its discs are made conventionally with only 'limited modifications' to existing replication machines.
The EZ-D is to start test marketing in the USA in August when The Walt Disney Company's Buena Vista Home Entertainment Division will start to distribute feature films with it.
Flexplay's degradable DVD technology was used a couple of times last year as a promotional tool. In November MGM Studios produced a flexible play DVD to promote the new James Bond film Die Another Day. The DVD contained Madonna's video for the film's theme song, film trailer highlights and additional footage, and was limited to a 36 hour life.
In October, MTV Video Music Awards Latin America used the Flexplay DVD for its first Latin America awards. The disc contained a compilation of music videos and other content and was distributed with the evening's program book.
Albemarle Corporation is increasing the price of its NcendX P-30 flame retardant globally by 10 per cent on June 15. NcendX P-30 is a bis phosphate ester used in alloys such as PC/ABS and HIPS/PPO, primarily for enclosures for televisions, computer monitors and other electrical office equipment.
The price of Saytex brominated flame retardants is also being increased worldwide on a selective basis by up to 7 per cent.
DuPont raises fluoropolymer profile with move to Distrupol and AlphaGary agreement May 18, 2003
The DuPont fluoropolymers distribution business, which has remained with Resin Express since the very public transfer of the engineering polymers business to Distrupol at Interplas last year is now also moving to Distrupol.
DuPont says the reason for the change in distributorship - which takes effect on July 2 - is its growth strategy for fluoropolymers, under which it is aiming to increase the use of melt-processible fluoropolymers in injection moulding. Included in the range are Teflon PFA and FEP, and Tefzel ETFE. Distrupol was also appointed to handle DuPont's packaging and industrial polymers in September last year.
In another move to increase sales of its fluoropolymers DuPont has joined with AlphaGary to develop cable covering compounds. The specific target is data cabling, for which fluoropolymers are seen as providing superior safety and transmission performance.
While attempting to expand the use of melt processible fluoropolymers, DuPont is also defending its more traditional fluoropolymer activities - such as cookware coating - against environmentalists in the USA.
There have been media claims of dangers to health from perfluorooctanoic acid (PFOA) residues in cookware. DuPont says that PFOA used to make Teflon products is removed during the process, that FDA testing of Teflon coated cookware has not found any PFOA, and that anyway, in 50 years of experience and scientific studies, TFOA has not been found to be a health hazard. The Environmental Protection Agency has called for an enquiry, while adding that it did not believe consumers should stop using Teflon-coated products. DuPont is supporting the EPA's call.
Happier times for Basell in a miserable market May 18, 2003
A diverging future was predicted for European producers of the major polyolefins by Basell's chief executive Volker Trautz, reviewing the European market at a meeting on Friday. He forecast a tightening of polypropylene supply with an average five year European growth of 4·5 per cent, while polyethylene growth would be lower at 3·5 per cent, and with European producers under greater pressure from Middle East imports. By 2007, he said, 10 per cent of European PE demand would be accounted for by imports, holding down margins.
Against this background there would be further rationalisation and consolidation among producers, and little expansion of capacity, improving operating rates.
At present the European market demand is 'flat to negative' and still suffering from yo-yoing feedstock prices which defy attempts to establish margins that could return necessary income - and return it consistently.
The difficult market conditions in the past couple of years provided a backdrop to Basell's turnaround, which brought a net profit of Eur 7·4 million from the 'badly off target' loss of Eur 214 million in 2001. But on a turnover of Eur 5·89 billion this was 'still a long way from acceptable profitability'.
Apart from selling volume plastics, Basell's income also comes from lower volume but higher priced performance polyolefins, and from licensing its technologies.
Basell's Advanced Polyolefins business is only around 10 per cent of the company's total production tonnage, but accounts for around 28 per cent of its turnover - and a higher but undisclosed percentage of its profit.
A quarter of this business is provided by materials made using the Catalloy continuous gas phase process which have applications from packaging to engineering components. Annual growth in this business is around 20 per cent and Basell is planning a (relatively) major expansion. At present total capacity is 385,000 tonnes, but over the next two years Basell plans to add another 200,000 tonnes. 40 - 50,000 tonnes will come from debottlenecking at its three plants at Moerdijk in the Netherlands, Ferrara in Italy and Bayport in the USA. After that Basell is planning a second North American facility by converting its gas phase plant at Lake Charles to Catalloy.
Although Basell is not prepared to discuss investment costs, it obviously finds satisfaction in a 48 per cent increase in capacity for a high income product being paid for by making existing plant more efficient, and converting something else it has already paid for.
Basell's licensing business covers both polymerisation and catalysis. It reckons to be the world leader in PP licensing with Spheripol, and has four PE processes - Hostalen, Lupotech T, Lupotech G and Spherilene. Its catalyst patents cover Ziegler, Ziegler-Natta, chromium and metallocenes.
Recent major wins for the licensing business were the largest single contract ever for a PP license in China, and the availability of a new Ziegler-Natta catalyst family. This latter addition to the catalyst portfolio is of succinate catalysts which enable the production of PP grades with broad molecular weight distribution, resulting in improved processability and performance in applications such as pipes, film and injection moulding.
With succinates, says Basell, it is possible to either improve Izod impact while maintaining flexural modulus or improve flexural modulus while maintaining impact and even simultaneously achieve improvements in both impact and flexural modulus.
Another recent technology from Basell that is being groomed for expansion is the Spherizone multi-zone circulating reactor process that went commercial last summer at Brindisi in Italy. This produces new and different grades of polypropylene, and as the Brindisi plant has shown, does so at a lower cost than the Spheripol process. Basell is contemplating a second plant, which could be new, or could be a conversion. The process is also applicable to polyethylene, but as yet Basell is undecided about the commercial feasibility of this route.
Cellular Mouldings rescues Rim-cast customers May 18, 2003
Polyurethane casting company Rim-cast, which recently went into voluntary liquidation two years after being bought from its retiring founders, has been absorbed into neighbouring PU casting specialist Cellular Mouldings of Kettering.
Rim-cast's process uses soft tools which are unsuitable for other forms of PU casting, and Cellular Mouldings is urging any companies who retrieved their tooling from Rim-cast not to try to use it with other process, because it would almost certainly be destroyed. The company reckons there are around 250 customers left without production facility following Rim-cast's closure and is aiming to fill this vacuum.
Cellular Mouldings anticipates that the Rim-cast business will be viable in its own operation by sharing the overheads of its other businesses, rather than having to support them all itself.
BP has increased its Asian PTA capacity through further investment in its Taiwanese and Korean joint ventures. It now owns 59·02 per cent of China American Petrochemical Company (CAPCO) in Taiwan and 47·41 per cent of Samsung Petrochemical Company (SPC) in Korea. This increases BP's equity PTA capacity in Asia by 14 per cent to around 3 million tonnes a year.
CAPCO is the largest producer of PTA in Asia operating six units with a total capacity of 2·1 million tonnes. BP bought an additional 9·02 per cent from Central Investment Holding Company (CIHC), which still holds 15·98 per cent. Chinese Petroleum Corporation has the other 25 per cent.
SPC is the third largest producer of PTA in Asia with four units in Korea totaling 1·4 million tonnes. BP bought its additional stake from minority shareholders and its ownership now equals that of Samsung.
BP's worldwide PTA capacity is almost 7 million tonnes at wholly owned plants in the United States, Belgium and Malaysia, and through joint ventures in China, Korea, Indonesia, Taiwan, and Brazil.
Joint venture in glass reinforcements May 18, 2003
Glass makers Owens Corning and Saint-Gobain - which operates the Vetrotex business - are planning a joint venture to make glass fibres for the composites industry. They are not yet saying where the plant will be, but it should be making product by the end of next year, with both companies selling it on equal terms.
Dow extends Kuwaiti ethylene co-operation May 18, 2003
Dow Chemical is to join with Petrochemical Industries Company of Kuwait in an ethylene and derivatives complex, extending the co-operation between Dow's Union Carbide subsidiary and PIC in the Equate Petrochemical Company.
The new Olefins II complex will be built at Shuaiba in Kuwait and should come on stream in 2007. It will be similar to the existing plants at Equate with an 850,000 tonnes ethane cracker and a new world-scale 600,000 tonnes ethylene oxide/ethylene glycol plant.
The existing capacity for Unipol polyethylene will be expanded to use the additional ethylene. In addition to Olefins II, PIC and Dow expect to build an ethylbenzene/styrene unit of 300,000 tonnes, supplied with ethylene from Olefins II and benzene from the PIC Aromatics Project, to be built simultaneously on the site adjacent to Equate.
PIC also runs a 100,000 tonnes polypropylene plant through special arrangement with Equate.
Anker PET Molds & Tooling, which last year opened a £2·5 million tooling and machine rebuild centre in Accrington, is planning to expand into the USA. It will offer mould making services and rebuild and technical support service for Nissei, Sidel, Husky, Aoki, Krupp and Demag PET equipment. The US operation, for which a location is still being sought, is expected to cost in the region of $3·1 million over three years.
Ciba Specialty Chemicals is to join with Astra Polymers in Saudi Arabia to make customer-specific additive masterbatches for sale in the Middle East. Astra Polymers is building an extension to its plant at Damman in Saudi Arabia and will use Ciba's additives and technology to make multi-component blends combining stabilisers and other additives, with the emphasis on ease of handling. Ciba will be responsible for sales and technical support.
Chevron Phillips adds Ryton compounds plant May 18, 2003
A compounding plant has been opened in the USA by Chevron Phillips Chemical Company to supply North and South American customers with Ryton PPS compounds as part of a strategy of local supply of globally available compounds. Chevron Phillips also makes Ryton compounds in Belgium and Singapore.
The new plant, at La Porte, Texas, has a capacity of around 6,700 tonnes.
Exxon facilitates Sumitomo olefin copolymer development May 18, 2003
ExxonMobil Chemical Company has licensed Sumitomo Chemical Company to use its metallocene technology to produce and use a new metallocene catalyst system. The new catalyst has been developed by SCC for use in its solution process plant at Chiba in Japan, and produces a new type of olefin copolymer composed mainly of propylene with other comonomers.
These copolymers, which have a completely amorphous structure, provide a property combination of softness, adhesion and high temperature resistance for a variety of end uses such as plastic 'leather', protective films, and replacement of soft PVC.
Degussa has raised the price of tyre and MRG blacks by Eur 30/tonne, and anticipates further slight increases in the coming months as the oil price fluctuates.
Borealis has continued its trend towards profitability in recent times with a Eur 5 million operating profit in the first quarter of this year. In Q1 last year it lost Eur 13 million and in the last quarter it lost Eur 9 million.
Polyolefin prices were raised to counter higher feedstock prices - naphtha prices were 70 per cent higher in this year's first quarter than a year ago - but first quarter margins were still 'unsatisfactorily low'. The effect of higher prices could be seen in the sales revenue of Eur 972 million, compared with Eur 843 million in Q1 2002 and Eur 848 million in the fourth quarter last year.
But while chief executive John Taylor was 'encouraged to see a first quarter operating profit', last year Borealis turned in a full year operating profit of Eur 115 million - showing how volatile the polyolefins market is quarter by quarter.
Honeywell to buy bi-ax nylon films capacity May 6, 2003
Honeywell is expanding its position in speciality films with an agreement to buy Kolon's biaxally oriented nylon films plant in Dangjin, South Korea. The company is already a leading producer of biaxally oriented nylon film, which can be used to replace more traditional rigid methods of packaging such as jugs, jars, cans, and bottles.
Biaxially oriented nylon film is a growth market and the capacity added in this transaction will make Honeywell more able to meet increased customer demand anywhere in the world.
Extruder manufacturer APV Baker has been put up for sale as part of the reorganisation of its parent group Invensys. The company has become a 'stand-alone company within the Invensys Development Division' and says new financial partners or new owners are being sought for it.
European cash for West Midlands moulders May 2, 2003
A £2 million technology boost is being given to West Midlands plastics companies by the University of Warwick's Warwick Manufacturing Group and Rapra Technology. They are to administer a grant from the European Regional Development Fund to help West Midlands plastics companies adopt new technology, environmental improvements and waste reduction activities.
The scheme, entitled Plastics West Midlands, will cover more than 470 projects with West Midlands companies. Each of these will involve at least five days of direct support and will be provided free of charge to the companies who participate.
To qualify companies must employ fewer than 250 staff, must not be part of a larger group, and must be located within the West Midlands Objective 2 region.
Kreyenborg buys the other side of pelletising technology May 1, 2003
The Kreyenborg group is adding strand pelletising technology to its underwater pelletising systems by buying a majority stake in IPS - Intelligent Pelletizing Solutions - based in Grossostheim, Germany. IPS will become part of the Kreyenborg Group, but will operate as an independent company.
Kreyenborg makes melt filters and pumps, diverter valves and extrusion heads, and has an affiliate company, BKG Bruckmann & Kreyenborg Granuliertechnik, making under water pelletising systems and centrifugal dryers.
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