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May 23, 2007

17 Min Read
e-Weekly News Briefs May 21-25


Ineos adds more PVC supply with Kerling purchase

Ineos Capital (London, England) has acquired Kerling ASA, the PVC supply business of Norwegian company Norsk Hydro, for €670 million (almost $900 million). Ineos wins an enhanced position across its chlor-alkali, plastics, and compounding businesses, and acquires a 50% share in the Noretyl ethylene cracker at Rafnes, Norway, which is a joint venture with Borealis.

Kerling employs 1200 and has production facilities in Norway, Sweden and the U.K. The business also has interests in joint ventures in Norway, Qatar, and China and a shareholding in the Portuguese PVC supplier Cires. Hydro, an energy and aluminum supplier, announced last December that as part of its strategy to divest non-core assets it was considering a public listing or divestment of its plastics business. Ineos, with $36 billion in annual sales, has rather rapidly become the world’s third-largest chemicals company; a leading manufacturer of petrochemicals, specialty chemicals, and oil products, with 68 manufacturing facilities in 17 countries that annually produce more than 30 million tonnes of petrochemicals and 20 million tonnes of fuels. Ineos was formed in 1998 and since then has acquired a number of businesses, including the PVC business of EVC and the Innovene chemicals business, including vast polyolefin supply facilities, formerly owned by BP. It is the largest PVC supplier in Europe, the largest PVC film extruder in Europe, and with a number of partners ranks as the world’s third largest polyethylene supplier. It also holds leading positions in a number of other polyolefins and major precursor materials.


Expanded K all booked up

With roughly five months until the triennial event, K 2007 (Oct. 24-31; Düsseldorf, Germany) show organizer Messe Düsseldorf is reporting that the exposition, which thanks to an addition will be 86,000-sq-ft larger, is completely booked, with more than 2900 exhibitors from 57 countries covering 1.8 million sq ft of exhibit space.

Exhibitor Council Chairman Ulrich Reifenhäuser said in a release pre-registration represents a diverse cross section of plastics. “The growth has penetrated all industry sectors without exception,” Reifenhäuser said, “from production/distribution through machine building and processing to recycling.”

Although machinery dominates, Messe reports that raw material suppliers will occupy 53,800 more square feet, for a total of 387,500 sq ft, which equates to 1/5 the total show area.

In terms of exhibitor nationality, after the 57% occupied by German firms, Italy (322,900 sq ft), Switzerland (89,300 sq ft), Austria (69,900 sq ft), and Taiwan (57,000 sq ft) will take up the most, with France, Great Britain, and the U.S. all occupying around 43,000 sq ft. A preliminary exhibitor list can be found at www.k-online.de.


Metabolix explores PHA from sugar cane

Metabolix (Cambridge, MA), developer of the microbe-generated corn-sugar-fueled Mirel PHA (polyhydroxyalkoanate) polymer, has entered into an agreement with Australia’s Cooperative Research Centre for Sugar Industry Innovation through Biotechnology (CRC SIIB) to develop bioresins directly in sugarcane. The company has created its PHA material directly in switchgrass at its lab in Cambridge, skipping the introduction of corn sugars to microbes, and it hopes that will be the second-generation platform for its Mirel resin, helping to lower costs. Switchgrass, however, favors climates similar to North America, while sugar cane thrives in more tropical regions. In a statement, Oliver Peoples, chief scientific officer at Metabolix, said the company believes sugar cane can be “developed to produce an advanced biorefinery feedstock for the production of natural plastics, fuels, and chemicals.”

In 2008, Metabolix, which had an IPO earlier this year, plans to open a large-scale production facility in Clinton, IA, adjacent to its joint-venture partner, Archers Daniel Midland. Production is currently handled from a 30,000-lb/month pilot line in Cambridge. Prior to the launch of Telles, which will market and produce the Mirel PHA polymer, Metabolix undertook a nationwide web survey to gauge the public’s knowledge about plastics’ environmental impact. The survey found that 72% of those polled don’t know that conventional plastic is petroleum derived and 40% think such materials will biodegrade. The survey found that those polled place the national recycling rate of plastics at 38.2%, while in reality it is only 5.7%. The survey also asked respondents, once they knew plastics are derived from fossil fuels, whether they’d be willing to pay 5-10% more for a natural, biodegradable plastic, with 50.1% answering they would be likely or very likely to. The online survey administered by InsightExpress was completed by 0501 people, randomly chosen, with a ±4.89% margin of error.


EOS makes rapid manufacturing push in the U.S.

Three years after establishing a formal sales presence and office in the U.S. with a sales/service space in Novi, MI, direct metal and plastic laser sintering machine manufacturer, EOS GmbH (Electro Optical Systems; Munich, Germany) cites the U.S. as its fastest growing market, with 42 units installed and strong growth of late in the aerospace and medical industries. Martina Methner, marketing/communications specialist for EOS, told MPW during the Colorado leg of a six-week U.S. tour, that roughly 75% of those 42 U.S. machines are used for the rapid manufacturing—or e-manufacturing in EOS parlance—of plastics.

Globally, EOS, which has been in business since 1989, has 660 units installed, led by Germany with 250. On the basis of improved hardware, in the form of a more tightly focused laser; improved software, via the company’s exposure program, which slices CAD models; and new materials, branching out from bronze alloy into stainless steel, tool steel, and cobalt chrome; Methner says the company has seen a switch from rapid prototyping to rapid manufacturing, where the systems are used in a production mode for finished parts. EOS itself has 23 laser-sintered components in its new Formiga machine. Methner says advances in the laser’s spot focus allow for thinner layers, higher resolution, and smoother finishes, with tolerances in plastics down to .1 mm.

Building from its first U.S. hire, Jim Fendrick, in 2002, EOS now has 13 U.S. employees out of 220 total. The exposure to new markets has also boosted sales, with revenues rising from $30 million in 2000 to $71 million for the fiscal year that ended Sept. 30. In addition to the Formiga line, which recently launched as a more economical system, starting at around $100,000, EOS will also add three titanium alloys to its material offerings in June in a bid to enter the medical-transplant market.


Expanded choice: another foaming process for moldings

Just prior to last week’s Chinaplas exhibition, Welltec Machinery Ltd., a Hong Kong-based manufacturer of injection molding machinery, announced it would display a new chemical foaming agent-based foam injection molding process during the tradeshow. Welltec developed the technology, called Hyperfoam, with Hong Kong-based additives supplier CVI Modern Technology Development Ltd.

Hyperfoam is patent pending in China. According to Welltec, the process can reduce part weight by 10-30%, lower clamping force requirements by 50-60%, decrease operational power consumption about 30%, and shrink cycle times. MPW will speak with Welltec during Chinaplas and update readers thereafter on any additional information.

Hyperfoam will ring bells of familiarity with any processor as yet familiar with the MuCell process of introducing supercritical gas (commonly nitrogen, but occasionally carbon dioxide) to foam a part. MuCell is the trade name of the microcellular injection molding technology developed and licensed by Trexel (Woburn, MA). Hyperfoam works by fusing carbon dioxide gas, produced by chemical foaming agent, into polymer melt under its supercritical state. When this supercritical fluid is injected into the mold cavity at very high injection speed, instantaneous cell nucleation takes place, forming a honeycomb-like structural foam upon cooling. Requirements include an endothermic chemical foaming agent, a nitrogen injection accumulator, and a high-pressure shutoff nozzle.

Welltec’s parent firm, Cosmos Machinery Ltd. (Wuxi, China), announced in April it will establish a 50:50 joint venture, Wuxi Ube-Cosmos Machinery Ltd., with Ube Machinery Corp. (Ube, Japan) for the production of injection molding machines in China. Ube and Cosmos have maintained a business relationship since 2002 through Ube’s licensing of technology to manufacture its ST (hydraulic toggle, 1450-7000 tons clamp force) and PZIII (hydraulic toggle, 350-1000 tons) series injection molding machines at Cosmos subsidiary Wuxi Grand Tech Machinery Group (see May 2007 MPW, pg. 16).


Film aids view into Grand Canyon’s abyss

Until now, the view from the rim of the Grand Canyon down to the Colorado River was not for the faint-hearted. In some places, the gaze plunges 1800m into the depths of the UNESCO World Heritage site in Arizona.

But since March visitors to the canyon can get their thrills by walking out the 100m long steel and glass horseshoe-shaped walkway, the Skywalk, which is situated some 1220m above the chasm. The view may still not be for the faint-hearted but the thrill remains the same as visitors walk over transparent floors. The view down through the parapet is safe thanks to its safety-glass construction which benefits from special Trosifol film calendered from highly transparent polyvinyl butyral (PVB) manufactured by Kuraray Europe (Troisdorf, Germany).

The laminated safety glass for the floor and parapet was made by two Germany glass manufacturers, Kinon Protz (Cologne) and Glas Döring (Berlin). The 1.5-mm thick PVB film prevents annoying color effects and reflections. Its safety effect is the same as in automotive windscreens. A businessman working together with the Hualapai Native American tribe financed the $40-million investment of the “glass balcony” above the canyon. Opening the attraction in March was the second man on the moon, Buzz Aldrin.


Plasticolors expands lab and UV testing capacity

Plasticolors Inc., a supplier of additives for thermoset plastics and non-plastic materials, completed a 4200-sq-ft laboratory expansion at its Ashtabula, OH, headquarters. In addition to the lab expansion, Plasticolors increased capacity in the area of ultraviolet (UV) stability testing by investing in additional weatherometers for accelerated weathering testing. “We have increased our xenon arc, accelerated weathering capacity by 30 percent,” said Larry Haines, director of marketing for Plasticolors.

Thermoset composite parts are inherently poor performers when exposed to UV radiation. Within a few months of outdoor exposure, chalking can occur, fiberglass can become exposed, and the appearance becomes visibly and generally degraded. Plasticolors says its UVSolutions range of additives has proven successful in a number of composite applications, ranging from significant improvements in composite durability to the ability to eliminate paint altogether. Commercial applications include light housing units, grill components, transit components, and various pultrusion applications.


EOL-V an accident that happened

A recently completed study commissioned by the Environment, Public Health and Food Safety (ENVI) Committee of the European Parliament shows progress among EU member states on the End-Of-Life Vehicles (ELV) Directive has been slow, with only four countries measuring up so far. The Directive dictated that by last year, 85% of all new vehicles (based on vehicle weight) must be reused, recycled or otherwise recovered. According to the report, only Austria, Germany, the Netherlands and Sweden have made sufficient progress so far. The EOL-V Directive came into force in 2003. Germany is Europe’s largest car manufacturing nation followed by France and France.

Among hindrances to the regulation have been some countries’ avoidance in adding costs to car manufacturers, who must agree to take responsibility for vehicles’ recycling/reuse.


Briefs

Plastics processor Haider Kunststofftechnik (St. Gallen, Austria), a supplier of BMS, Philips, Siemens, Bosch, Gorenje, and Flextronics, has been acquired by Greiner Packaging (Kremsmünster, Austria). Haider owners, the Haider family, said further expansion would be difficult without a partner.

Plastics products using resin from polymer producer Bayer MaterialScience (Leverkusen, Germany) have taken top prizes in this year’s design competition of the “iF material awards” presented by the International Forum Design (iF) during the recent Hanover, Germany industrial fair. One winner is the Kaynemaile seamless mesh produced of Makrolon-brand polycarbonate. These flexible, mobile safety nets are suitable for applications in corrosive environments such as seawater, wind protectors, cargo nets, conveyor belts, or filter systems.

Euro-Moulders (Brussels, Belgium) has published its second raw materials cost index covering the first quarter of this year. The index charts cost fluctuations in five bulk raw materials used by Euro-Moulders’ members to manufacture polyurethane car seats. Further information is available at: www.euro-moulders.org.

PolyOne (Cleveland, OH) has expanded its global reach by increasing its manufacturing capacity and sales presence in South America. Now a full line of the company’s OnCap additives, engineered materials, and OnColor colorants are being offered in the region. The company also penned a deal with Brazil-based Plásticos Novacor to manufacture PolyOne’s engineered materials product lines. The company expects to generate 30% of its revenues outside North America by 2010.

Technology licenser Univation (Houston, TX) has recently signed a contract to provide Rio Polímeros (Riopol, Rio de Janeiro, Brazil) with XCAT EZ100 metallocene catalyst know-how to produce linear low-density polyethylene (mLLDPE) on a Unipol line. EZP mLLDPE, being sold by Riopol under the Metapol brand, is said to process well on both LLDPE and high-pressure LDPE extrusion lines.

Extrusion and recycling equipment maker Hosokawa Alpine (Augsburg, Germany) is investing €9.5 million in the first stage of a 6500-sq-m plant expansion, expected to be completed in spring next year.

Polyolefins producer Basell (Hoofddorp, Netherlands) is celebrating its 35th anniversary of Lupolen-brand high-density polyethylene (HDPE) used in cross-linked PE pipes (PEX). In 1972, pipe processor Wirsbo (today Uponor) extruded the first commercial PEX under-floor heating pipes.

Processing equipment manufacturer Krauss-Maffei Kunststofftechnik (Munich, Germany) says it is now producing single- and twin-screw extruders from the KMD series, manufactured by the company’s Extrusion Technology division, on a synchronized flow basis. All electrical and mechanical sub-assemblies are produced on this so-called “pulled” system in four synchronized stages. Commissioning machines is not part of the system.

Software providers Jetcam International (Waltham, MA) and Vistagy (Monaco) have announced a collaboration that will allow 3D data to be exchanged between Vitagy’s FiberSIM composites design program and Jetcam’s Expert CAM suite. FiberSIM serves engineers in the field of advanced composites, aiding with the design of applications for the aerospace, automotive, marine, and wind-energy industries. Jetcam’s nesting software allows the creation of composite shapes with less material waste.

U.K.-based polyvinyl chloride (PVC) recycler Dekura will open new satellite operations in the South West and Wales. The company collects PVC waste from more than 1000 window and door fabricators, and it processes more than 17,000 tonnes of post-production scrap, in addition to post-consumer PVC waste. The satellite plants break down the PVC into pellets so mostly material, vs. material and air, is shipped, reducing the truck miles Dekura needs to drive. Dekura is one of 30 Recovinyl recyclers: a nationwide group funded by the PVC industry body Vinyl 2010 with backing from the British Plastics Federation.

In order to meet the growing demands of the Middle East and India, specialty chemicals and flame-retardant manufacturer Albemarle Corp. (Richmond, VA) will open a regional sales office in Dubai of the United Arab Emirates. Ahmad Khalifeh will act as managing director of the office, coming over from Jordan Bromine Co., an Albemarle/Arab Potash Co. joint venture. In addition to flame retardants, Albemarle supplies refining catalysts and additives; petrochemical catalysts; antioxidants; bromine and derivative chemicals; and fine chemistry services.

Although net sales dropped, income was up for packaging firm Graham Packaging Holdings Co. (York, PA) in the first quarter, on the basis in part of $5.5 million saved from lower resin costs, which were down compared to year-prior prices impacted by hurricanes Katrina and Rita. Operating income was $43.4 million, up 16.1% or $6 million. Net sales fell 3.6%, to $621.8 million, compared to $645 million. Net sales in North America were down 5.8%, while Europe and South America rose 14.3% and 9.3%, respectively.

Engineering plastics manufacturer Rhodia (Lyon, France) has opened a technical center in Shanghai, offering services from concept development to part optimization. The operation will include computer-aided static and dynamic structural analysis; acoustic behavior and noise-emission analysis; and airflow simulation.

In additional Rhodia news, the company announced it will collaborate with SpecialChem’s plastics web portal Omnexus. Rhodia will offer its Technyl polyamide 6/6 material and technical services, via the web. Support for design and validation; product development; regulations; and manufacturing will be available.

Mold component supplier D-M-E Co. (Madison Heights, MI) will combine its Northern Supply, Nickerson, and OHS maintenance, repair, and operating supply businesses under one brand: D-M-E Molding Supplies. The company will offer a new, combined catalog in June, with updated versions every 12 to 18 months thereafter. D-M-E President Dave Lawrence said in a release the move will speed delivery and help towards a goal of global standardization.

Latin American polypropylene supplier Suzano Petroquimica (Sao Paolo, Brazil) has named additives supplier Chemtura (Middlebury, CT) its 2006 ’Supplier of the Year’.

Rapid prototyping machine manufacturer Object (Rehovot, Israel) has opened Objet Geometries GmbH in Griesheim, a suburb of Frankfurt, Germany, to handle what Object calls its “growing customer base” in Germany, Austria, and Switzerland. The German subsidiary is the second new office that Objet has opened this year. In January it announced the opening of its U.S. subsidiary; Objet also has offices in Shanghai and Hong Kong. Object makes and markets ultra-thin-layer, high-resolution 3D printing systems and materials that utilize the firm’s PolyJet polymer jetting technology, to print 16-micron thin layers.


Names in the News

Auxiliaries equipment manufacturer Sterling (New Berlin, WI) has named Brad Wiley as the new systems and contracting manager. He will be responsible for on-time deliveries and installations.

Robert Butts has joined the team of AEC (Schaumburg, IL) as eastern regional sales manager for the auxiliaries equipment maker. He previously worked as product manager at compounding extruder manufacturer Leistritz in its U.S. subsidiary.

Joining flat die manufacturer Extrusion Dies Industries (EDI, Chippewa Falls, WI) as product manager for the Liberty range coating systems is Tom Johns, formerly with Liberty Coating Equipment. EDI is marketing this product line under the Liberty trade name after acquiring Liberty Coating Equipment in March.

Two new additions to polymer and additives manufacturer PolyOne (Cleveland, OH) are Gina Rendar, director of marketing and product management and Matthew Borowiec, regional sales manager, both at the company’s engineered materials group.

Rudi Baumann, sales manager at auxiliaries equipment manufacturer AZO (Osterburken, Germany), is retiring after more than 40 years with the company.

Tier One automotive supplier Lear Corp. (Southfield, MI) has elected Wendy Foss to the corporate secretary position, in addition to her role as VP of finance and administration, and it has also promoted Liam Hart to deputy general counsel. Both will report to Daniel A. Ninivaggi, executive VP and general counsel for Lear.


Global Plastics Bulletin Board

bioplastics Magazine is currently organizing the first PLA (polylactic acid) Bottle Conference to be held Sept. 12-13 in Hamburg, Germany at the Grand Elysee Hotel. The event will feature information on raw materials, preform manufacture, preform design, bottle design, barrier technology, and more. Information on the conference, including its program and speakers, can be found at www.pla-bottle-conference.com.

German plastics processors association GKV (Frankfurt) says it is still searching for more apprentices to train as operators as demand within the sector for well-trained youth continues to outpace the supply. Last year saw a 4.2% increase in the number of contracts for training (total: 2215) compared to the previous year. Ralf Olsen, responsible for the GKV’s training program, nevertheless says the country runs the risk in the future of losing its key position as a processor nation if more young people do not enter the field. Last year more than 800 apprenticeships remained vacant because processors were unable to find qualified young people, he says.


Weekly futures activity from the LME

Futures trading of linear low-density polyethylene (LLDPE) and polypropylene (PP) on the London Metal Exchange (LME) for the shortened trading week of May 14-18 saw a low price for LLDPE of $1190/tonne set on Monday, May 14, and Wednesday, May 16, for June buyers. LLDPE’s high of $1240/tonne was reached on Tuesday, May 15, Thursday, May 17, and Friday, May 18, for August sellers.

For PP, a low price of $1260/tonne was reached on Thursday, May 17, for June buyers. The high of $1295/tonne was reached on Monday, May 14, for June-August sellers.

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