CHEMICAL UPDATE

 

NOVEMBER 2011

 

McIlvaine Company

 

 

TABLE OF CONTENTS

 

INDUSTRY NEWS

French Chemists Develop Plastic That Behaves Like Glass

Trade Group Agrees to List Chemicals Used in Gas Fracking

Green Chemicals Will Save Industry $65.5B By 2020, According To Pike Research

 

COMPANY NEWS

BASF to Base HQ for Dispersions & Pigments Division in Hong Kong

Dow and Mitsui Complete JV in Brazil for Biopolymers Platform for Flexible Packaging, Hygiene and Medical Applications

Rockwood's Chemetall Lithium Business Opens New Butyllithium Operation in India

French Arkema to Buy China's Hipro Polymers, Casda Biomaterials

Novomer Raises Another $10M for Green Plastics

Myriant and Sojitz Form Partnership for Green Chemicals

Techmer to Make Products with Engineering Resins

Bayer Develops Polyurethane Composite for Windmill Blades

Dow Chemical Expands Operations in Africa

Ineos Divests Spanish ABS Group Elix Polymers

 

INDUSTRY NEWS

French Chemists Develop Plastic That Behaves Like Glass

A new material mimics the malleability of glass but retains the toughness and stability of thermoset plastics, C&EN reports. Developed by chemists in France, the material could be useful in the automotive and aerospace industries, as well as a number of other areas.

 

“Anywhere you have a complex shape, you can use this material,” says lead researcher Ludwik Leibler of the School of Industrial Physics & Chemistry, in Paris, part of France’s Centre National de la Recherche Scientifique (CNRS). “It’s much lighter than metal or glass, it’s chemically resistant, and it’s recyclable.”

 

Thermoset plastics, such as Bakelite, are extremely stable to solvents and extreme temperatures. But they must be polymerized in a mold to give them a shape. And once they’ve been polymerized, thermosets can’t be reshaped or reprocessed, either with heat or with solvent. Leibler’s polymer has the stability of thermosets but behaves like glass: Simply heat the material and shape it as desired.

 

The key to the glassy behavior lies within the polymer’s molecular structure; it has an equal number of ester and alcohol groups. When the material is heated it transesterifies; that is, its ester cross-links transfer from one region of the polymer to another with the help of an embedded zinc catalyst. “You exchange links but you never diminish the chemical bonding” that gives the polymer its strength, Leibler explains. “The number of chemical links always stays constant.”

 

The researchers have been able to recycle the material so that it has the same properties as the original. Also, scratches and small breaks in the plastic can be repaired by heating it. Leibler’s team has patented the material and hopes to see it commercialized soon. The chemical components, he says, are inexpensive and readily available.

 

Trade Group Agrees to List Chemicals Used in Gas Fracking

Most natural gas drillers operating in the Marcellus shale region have agreed to disclose voluntarily the chemicals used in the hydraulic fracturing process that makes wells productive, their industry trade group said recently. A statewide environmental group said the initiative falls short.

 

The Marcellus Shale Coalition, a Cecil-based trade group of 200 natural gas companies, drillers and related businesses, issued a statement saying its members agreed to disclosed the contents of the chemicals in the fracking fluid used in each well on a national database, FracFocus.org.

 

"It was really a collaborative effort that had broad support and commitment from the companies and the staff" of the coalition, said spokesman Travis Windle.

 

Several states, including Pennsylvania, have the information available but do not disclose some of the chemicals that companies claim are trade secrets.

 

While some of its members, such as Chesapeake Energy Corp. and Range Resources Corp., had been disclosing the chemicals used in fracking fluid, the coalition will require that, as of Jan. 1, all its members do so, Windle said.

 

Most of the chemicals are included in household products stored under a kitchen sink, Windle noted.

 

Chemicals in fracking fluid are mixed in the millions of gallons of water and sand pumped underground to break apart shale to release natural gas. The fluid can include acids, chlorides, methanol and ethylene. A controversy has arisen over the hazardous nature of the fracking fluid and treatment of the fluid that returns to the surface.

 

Although the intentions of the coalition are good, the companies still have discretion over whether the chemicals are disclosed, said Jan Jarrett, president of Citizens for Pennsylvania's Future, a statewide environmental group with an office in Pittsburgh.

 

"Our position is it has to be mandatory. It's clear that all (the companies) should do it," Jarrett said. "Keeping the stuff (contents) secret raises the public's concerns and suspicions."

 

Opposition to disclosing the chemicals often has come from the service companies providing them rather than the drillers or owners of the well, Jarrett noted.

 

Congress should act to close what has been referred to as the "Halliburton loophole" in the Safe Drinking Water Act, which prohibits the Environmental Protection Agency from regulating the hydraulic fracturing fluid, Jarrett said.

 

A bill introduced by Sen. Bob Casey, D-Scranton, to give federal regulators such authority is a mistake because it removes that responsibility from the states' environmental agencies, Windle said.

 

Green Chemicals Will Save Industry $65.5B By 2020, According To Pike Research

In the last decade there has been a great deal of activity in the development of renewable feedstocks for a variety of chemical processes. Compared to conventional petroleum-derived feedstocks, these new materials offer greenhouse gas emissions and reduced toxicity. More importantly to the companies that use chemicals in their industrial processes, they offer significantly lower costs. In contrast to the consumer market, where choosing green products usually entails paying a premium, greener is cheaper in industry. Most renewable feedstocks are produced through biological processes or thermal and chemical processes applied to cellulosic materials, such as wood, agricultural waste, or non-food plants like switchgrass – all of which are less costly than the purchase of petroleum products.

 

According to a recent report from Pike Research , the use of green chemistry in a range of industrial activities will grow rapidly in the coming decade, offering significant direct cost savings as well as indirect savings in the form of avoiding liability for environmental and social impacts. The total amount saved, the cleantech market intelligence firm forecasts, will reach $65.5 billion by 2020.

 

Originally developed in the 1990s, partly as a result of the passage in the United States of the Pollution Prevention Act of 1990, green chemistry is less a description of a distinct industrial segment than a way of carrying out industrial activities from design to manufacturing. The primary pathways for green chemistry, in Pike Research's view, include waste minimization in the chemical production process, replacement of existing products with less toxic alternatives, and the shift to renewable, non-petroleum-based feedstocks. The evolution of these practices is being driven by a combination of technical, regulatory, consumer preference, and economic factors. Most notably, rapid advances in biotechnology have created powerful new toolkits for the manipulation of organisms (bacteria, yeasts, and algae) to produce industrially useful compounds with great efficiency and minimal waste. At the same time, the rising price of petroleum – critical both as a source of process energy and as a feedstock for many chemical processes – has fueled interest and investment in finding alternative, renewable feedstocks.

 

Overall, green chemistry represents a market opportunity that will grow from $2.8 billion in 2011 to $98.5 billion by 2020.

 

COMPANY NEWS

BASF to Base HQ for Dispersions & Pigments Division in Hong Kong

BASF plans to establish the global headquarters of its Dispersions & Pigments division in Hong Kong. As of January 1, 2012, the division head and about 50 global positions, currently located in Ludwigshafen and Basel, will transition to Hong Kong. Transfer of positions will be realized over a period of about 12 months.

 

“Asia is already the largest market for our division today. We want to further participate in the dynamic growth in that region and beyond. To this end, we want to change the perspective from which we view our customer industries . By forming a global team at an international location we will also further increase attractiveness of BASF as a global employer ,” said Dr. Markus Kramer, President of BASF’s Dispersions & Pigments division.

 

The portfolio of the Dispersions & Pigments division includes pigments, resins, dispersions and additives such as photoinitiators, light stabilizers and formulation additives. Main customer industries are the coatings and paints industry, as well as the adhesive, printing and packaging industries. The division posted sales of €3.2 billion in 2010.

 

Dow and Mitsui Complete JV in Brazil for Biopolymers Platform for Flexible Packaging, Hygiene and Medical Applications

The Dow Chemical Company (NYSE: DOW) announced recently that Dow and Mitsui & Co., Ltd., of Tokyo, Japan ("Mitsui") have secured all necessary governmental regulatory approvals and completed the formation of a previously announced 50:50 joint venture in Brazil, making Mitsui a 50% equity interest partner in Dow's operation in Santa Vitória, Minas Gerais, Brazil.

 

The initial scope of the joint venture includes production of sugar cane-derived ethanol for use as a renewable feedstock source, bringing new, biomass-based feedstocks to Dow while diversifying the Company's raw material streams from traditional fossil fuels.

 

The close of this transaction follows Dow's July 19 announcement of plans to form the new joint venture and of the execution of a Memorandum of Understanding (MOU) with Mitsui aimed at providing innovative and sustainable product solutions for global flexible packaging, hygiene and medical applications. This represents the world's largest biopolymers play and Dow's largest investment in Brazil, a country in which Dow has operated successfully for more than 50 years.

 

"The formation of this joint venture marks a historic next step in our drive to bring world-leading technology and sustainable solutions to one of the fastest-growing regions of the world," said Andrew N. Liveris, Dow's Chairman and Chief Executive Officer. "This move advances Dow's strategy and demonstrates our unwavering commitment to invest for growth in high-value, innovation-rich sectors through strategic partnerships."

 

Engineering and equipment fabrication for a new sugarcane-to-ethanol production facility in Santa Vitória accelerated in the third quarter of 2011 and is proceeding according to schedule, with operations expected to commence in the second quarter of 2013.

 

Dow and Mitsui have a positive history of partnership, having also formed a joint venture on the U.S. Gulf Coast to build a world-scale chlor-alkali plant, driving integration advantage for Dow's downstream businesses and customers.

 

Rockwood's Chemetall Lithium Business Opens New Butyllithium Operation in India

Chemetall Lithium India Pvt. Ltd., a business unit of Rockwood Holdings, Inc. (NYSE: ROC), has inaugurated a new butyllithium operation in Gujarat, India. The new site is located in the Dahei SEZ (Special Economic Zone) and will function as the main platform for the supply of Chemetall's lithium products to India and other markets in the region.

 

Chemetall has based the installed technology at the new plant on expertise Chemetall has acquired over the last several decades as the leading manufacturer of air and moisture sensitive organometallic compounds. The facility will operate at the highest standards of safety and will ensure a reliable supply of high quality butyllithium, which is widely used as an initiator for anionic polymerization and as a base in organic, pharmaceutical or agrochemical syntheses.

 

In addition to butyllithium operations, the facility will also be expanded to store and sell other specialty chemicals manufactured by Chemetall. With an internationally trained team, the site will simplify the logistics, reduce the lead time and boost Chemetall‘s presence locally in India and the region.

 

French Arkema to Buy China's Hipro Polymers, Casda Biomaterials

French chemicals group Arkema said recently it is to acquire China's Hipro Polymers and Casda Biomaterials as part of its growth strategy for the rapidly expanding Chinese market.

 

Hipro Polymers produces biosourced polyamide 10.10, while Casda Biomaterials makes sebacic acid, which is derived from castor oil and used to manufacture polyamide 10.10.

 

Arkema said the acquisition price is "based on an enterprise value of $365 million for 100% of the capital of both companies," which were majority owned by a joint venture consisting of Chinese specialty chemicals firm Feixiang Chemical and private equity group Bain Capital.

 

Both companies had combined annual sales of $230 million, and employ around 750 staff at its two production sites in China. The acquisition is subject to the approval of the Chinese authorities and is expected to be completed by early 2012.

 

"This acquisition...will help us boost our position in China, one of Arkema's geographic priorities for the last five years. With polyamide 10.10, it aptly complements our high added value polyamide 11 and 12 product range, and fits in well with our growth strategy in green chemistry," said Thierry Le Henaff, Arkema chairman and CEO.

 

Novomer Raises Another $10M for Green Plastics

Plastics developer Novomer Inc. has raised $10 million in an equity round as it works to commercialize technology that would use feedstocks to produce plastic-like materials, according to a filing with the U.S. Securities and Exchange Commission.

 

Waltham-based Novomer says that its technology will allow chemical feedstocks to be combined with carbon dioxide or carbon monoxide to produce sustainable chemicals and materials. The materials can sequester the CO2 and CO for the life of the product, mitigating global warming and climate change, according to the company.

 

The company has been backed by Flagship Ventures of Cambridge, OVP Venture Partners of Seattle, Physic Ventures of San Francisco, DSM Venturing of The Netherlands and Kensa Group LLC of Ithaca, N.Y.

 

In 2009, Novomer reported a $14 million equity round.  That funding came a year after the firm announced the hiring of CEO James Mahoney and relocated to Boston from Ithaca where it launched with technology from Cornell University.

 

The company also has received several grants from federal and state agencies, including an $18.4 million grant from the U.S. Department of Energy in 2010.

 

Myriant and Sojitz Form Partnership for Green Chemicals

U.S. based Myriant Corporation ("Myriant") and Japan based Sojitz Corporation ("Sojitz") have signed an agreement for the creation of a sales and marketing partnership to distribute biobased succinic acid in Japan, China, South Korea and Taiwan (the "Territory").

 

Under the terms of the agreement, Sojitz and Myriant will collaborate in the sales and marketing of biobased succinic acid exclusively in the Territory for applications such as plasticizers, polymers, urethanes and solvents. The agreement combines the strength of Myriant's biobased succinic acid manufacturing platform with Sojitz's strong market presence. Sojitz, a US$50 billion company, has a strong presence in chemical sales and marketing and distribution throughout Asia with over 25 sales offices.

 

"Sojitz's significant presence in the market provides Myriant with "Best in Class" representation which we expect will drive significant long term value for our biobased succinic acid platform produced in the Territory," said Dr. Cenan Ozmeral, Chief Operating Officer of Myriant. Sojitz has demonstrated a clear commitment to the market, having invested already in a wide array of products in the field of biobased chemicals. With Sojitz's sales force and expertise in chemical sales and marketing, we are confident that our partnership will expedite Myriant's commercial efforts in the Territory.

 

"This is another significant example of Myriant's ability to capitalize on global markets where we have demonstrated a clear leadership in the production of cost-effective biobased succinic acid for a wide variety of applications. The combination of Sojitz's sales and marketing as well as their intent to expand our production capacity were the twin catalysts for this agreement," said Stephen J. Gatto, Myriant's Chairman and Chief Executive Officer.

 

"Our plan is to set up a commercial biobased derivatives plant that we expect to come online in 2015, which will consume 150 million pounds of Myriant's biobased succinic acid," said Mr. Izutani, General Manager of Functional Materials and Fine Chemicals Department of Sojitz. "By establishing our partnership with Myriant, Sojitz is enhancing its presence in the green chemicals industry in Asia. By gaining access to Myriant's biobased succinic acid, Sojitz will be in a position to grow its business of green chemical derivatives. We have spent over two years analyzing various technologies for production of biobased succinic acid, and after a detailed review we found, with high confidence, that Myriant has the most cost effective process while delivering the highest quality product."

 

Techmer to Make Products with Engineering Resins

An expansion will allow color and additive concentrates maker Techmer PM LLC to make products based on engineering resins at its California plant for the first time.

 

Clinton-based Techmer also recently added a new mega compounder twin-screw extrusion line in Clinton, allowing for an existing line to be moved to its plant in Rancho Dominguez, Calif.

 

“We’ve had a position in California for many years,” Techmer president and CEO John Manuck said in a recent phone interview. “Now we’ve got more space for capacity, and that’s going to allow us to use engineering resins.”

 

Previously, the California site only had made colorant and additive masterbatches based on commodity resins. New lab equipment and additional processing equipment — including an injection molding machine and a pelletizer — also have been installed in rancho Dominguez, pushing the total investment there to more than $2 million.

 

The new business there will operate as Techmer Engineered Solutions and will allow for the processing of additives ranging from carbon fiber to pigments and dyes. Resins used in the new operation will include nylon and polycarbonate, as well as high-temperature materials such as polysulfones and PEEK.

 

Moving the line from Clinton will add 10 million pounds of capacity in Rancho Dominguez and allow Techmer to add 10 jobs there, Manuck said.

 

In Clinton, Techmer has installed a new line that will increase the site’s annual capacity by more than 5 million pounds. The line includes an ergonomic material handling system that officials said has been proven to increase efficiencies and reduce the risk of injury to machine operators.

 

The $3 million line has been engineered to handle complex formulations with multiple components. “Our formulations are becoming more complex with a need for very accurate additions of key ingredients,” Abe Mor, technology vice president, said in a news release.

 

The work in Clinton and Rancho Dominguez comes a year after Techmer acquired the Irgasurf HL-brand line of hydrophilic melt additives from BASF SE for an undisclosed sum. “We’ve incorporated that business and it’s increased sales for us,” Manuck said.

 

Techmer — founded by Manuck in 1981 — employs about 600 and has annual sales of about $200 million. The firm also operates plants in Wichita, Kan., and Dalton, Ga.

 

Bayer Develops Polyurethane Composite for Windmill Blades

Bayer Material Science has developed a class of polyurethane-based composites for use in large windmill blades. The company said it developed the class of stronger composite materials in response to the wind power industry’s move toward developing and manufacturing longer, larger, and more productive blades.

 

Bayer details the results of the development of the low-viscosity, long-gelling polyurethane in a paper published by Dr Usama Younes, principal scientist with Bayer, and Frank Bradish, a researcher with Molded Fibre Glass Research Company.

 

 The characteristics of the newly introduced Baydur resin infusion polyurethane systems were compared against those of epoxy- and vinyl-ester-based composites.

 

Peter Emrich, Moulded Fibre Glass’s vice-president of technology, told The Engineer: ‘High-fibre volume polymer composites can be brittle and subject to failure from out of plane stresses. However, polyurethane resins are very tough.’

 

He said the polyurethane composite has excellent fatigue performance, which makes it particularly appealing for use in large wind turbine blades.

 

Emrich added the work completed by Bayer shows that polyurethane composites have similar or better properties to epoxy and can cure faster.

 

He said: ‘Faster cure allows for shorter cycles, more output, lower costs. Also the polyurethane has very good coupling to carbon and polymer fibres allowing broader use of these composites.’

 

The project focused on megawatt-class wind blades but Emrich believes the results could be applied to structural elements in smaller parts, produced in high volume, such as those found in transportation vehicles and sporting goods.

 

Bayer said that the polyurethane composites are environmentally friendly as they contain low-to-no volatile organic compounds and use sustainable raw materials from renewable resources.

 

 

Dow Chemical Expands Operations in Africa

The Dow Chemical Company is expanding its operations in Africa by opening offices in Algeria and Ghana, according to a press release.

 

The new sales offices will complement existing Dow operations in Egypt, Kenya and South Africa, where the company has more than 50 years of operating history and employs more than 240 people.

 

“With a population of over 1 billion people, significant and consistent economic growth rates over the last 10 years and improved corporate governance and transparency, there has never been a better time to expand Dow’s focus and participation in Africa,” said Dow Chairman and CEO Andrew Liveris. “This expansion signifies Dow’s commitment to investing in the needs of growing regions to help our customers address tomorrow’s challenges today.” 

 

Ineos Divests Spanish ABS Group Elix Polymers

Elix Polymers, the Spanish ABS offshoot of global petrochemicals giant Ineos, is being divested by the group to meet an EU antitrust condition for the formation of Styrolution, the new BASF/Ineos styrenics joint venture.

 

In June, the EU competition authorities gave a conditional green light to the 50:50 venture which will combine the existing styrene monomer, polystyrene and ABS operations of Ineos and BASF.

 

Initially, Tarragona-based Elix has been “carved out” from Ineos to form an independent producer of a broad spectrum of natural and pre-coloured ABS grades and ABS specialities, pending its sale to a third party, according to the Spanish firm.

 

In the short term, the manufacturer of ABS and butadiene-containing modifiers, will continue to offer a broad ABS product range currently under the Ineos ‘Lustran’ and ‘Novodur’ brands.

 

But in parallel, the Spanish company will re-brand and develop a comparable Elix branded ABS portfolio. This will be “based on the same intellectual property, process technologies and specifications” established over the last 35 years at the firm’s production site in Tarragona and be sold in Europe and exported further afield, stated Elix.

 

It will focus its activities on customised ABS products, pre-coloured ABS and on its established Elix modifier portfolio commercialised since last year, it stated.

 

Meanwhile, Styrolution will combine BASF plants in Germany, Belgium, Korea, India and Mexico with the Ineos units in Germany, France, Sweden, Canada and the USA.

 

Ineos is also acquiring the other 50% stake in its existing 50:50 styrenics joint venture with Nova Chemicals and merging this operation with the new Styrolution business based in Frankfurt, Germany.

 

 

McIlvaine Company

Northfield, IL 60093-2743

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