California officials are drafting what are expected to be sweeping regulations that could force product manufacturers to use alternative, safer chemicals or risk their product being banned from sale in the Golden State.

The Safer Consumer Products (SCP) regulations are the bedrock of the California Environmental Protection Agency’s (Cal/EPA) Green Chemistry Initiative (GCI), aimed at curbing public exposure to dangerous toxins.

Among the initiative’s stated goals: To develop a consistent means for evaluating risk, reduce exposure, encourage less-toxic industrial processes and identify safer, non-chemical alternatives.

Draft SCP regulations by the state Department of Toxic Substances Control (DTSC) are scheduled to be released in March. An informal draft of the SCP regulations was released Oct. 31.

Signed into law by former Gov. Arnold Schwarzenegger (R) in 2008, Assembly Bill 1879 granted DTSC statutory authority to control toxic substances in everyday consumer products (Chapter 559, Statutes 2008).

The SCP regulations will establish an immediate list of roughly 3,000 so-called “chemicals of concern,” which would includes carcinogens, mutagens, neurotoxins and compounds that disrupt hormones. From the list, DTSC will develop a list of “priority projects” that require alternatives assessment by the manufacturer.

AB 1879 also allows DTSC to identify, prioritize, evaluate and regulate any harmful chemicals in all consumer products and collect vital hazard and toxicity information on chemicals in commerce.

Under the law, DTSC may require special product labeling, mandate producer responsibility programs and require the funding of Green Chemistry challenge grants to look for safer alternatives to a chemical.

Companion legislation, Senate Bill 509, calls for an online Toxics Information Clearinghouse to provide information about chemicals used in California (Chapter 560, Statutes of 2008).

Supporters of the Green Chemistry Initiative say the effort will lead to safer consumer products, decreased exposure to dangerous chemicals and a healthier environment. Critics, however, say the sweeping program could be very onerous to chemical companies and the wider manufacturing sector.

The California Chamber of Commerce, in January, warned that the informal draft SCP regulations “create an uncertain regulatory environment that makes investing, innovating and doing business in California substantially riskier.”

In formal comments to DTSC, CalChamber wrote: “A fundamental problem with the draft regulations is that DTSC retains so much discretionary power that it virtually eliminates any certainty that a business might have in terms of regulatory treatment.”

Indian Specialty Chemical Industry Could Reach $80-100bn by 2020

India's specialty chemical business is expected to grow from $22bn to $80-100bn by 2020, according to a McKinsey & Company report.

The 'Building a global scale specialty chemical industry in India' report said that specialty chemicals have accounted for 20% of $2.5tn global chemicals sales in 2010.

The report also said that around one third of the world's specialty chemicals business may move to Asia by 2020.

"By 2020, approximately $350bn of the projected $1tn global specialty chemical industry could move to Asia (excluding Japan), driven by downstream demand and competitive manufacturing costs," the report added.

McKinsey suggested that for the success of the industry, India needs to develop local products at the right price, utilise merger, acquisitions and collaborations, and build a strong value proposition to attract talent.

McKinsey has also suggested the Indian Government encourages specialty chemicals companies to build new plants in petroleum, chemicals and petrochemicals investment regions ( PCPIRs), and upgrade chemical industries to facilitate the success of the industry.

The global consulting firm said the government should also create a specialty chemicals forum to define relevant consumption standards and drive innovation, and establish a database of chemical inventory of the country's chemicals sector.

Specialty chemicals products are used in various applications, including in dyes, pigments, pesticides, fertilisers and colouring industries.

COMPANY NEWS

Lanxess Invests $10 million in BioAmber

Materials maker Lanxess AG has made a $10 million investment in bioplasticizer maker BioAmber Inc.

The investment gives Leverkusen, Germany-based Lanxess a minority stake in BioAmber, which is based in Minneapolis. Lanxess Functional Chemicals business head Jorge Nogueira will serve on BioAmber’s board of directors.

Lanxess’ investment “shows our commitment to launching a new generation of plasticizers that meet regulatory requirements and can also score in terms of sustainability,” Nogueira said in a Feb. 22 news release. BioAmber already had planned to build a bioplasticizer plant adjacent to a Lanxess facility in Sarnia, Ontario, with an opening set for 2013.

Lanxess is a major producer of phthalate-free plasticizers. In October, the firm made an acquisition in that field, buying Unitex Chemical Corp. of Greensboro, N.C. The global market for phthalate-free plasticizers is estimated at more than $1.5 billion per year, with annual growth of almost 7 percent.

Specialty chemical and rubber products made by Lanxess include specialty grades of nylon resin. The firm has annual sales of more than $9 billion.

SABIC Signs Polyurethane Technology License Deal With Mitsui

Saudi Basic Industries (SABIC) has entered into a technology license deal with Mitsui Chemicals as part of its strategic plan to be a global provider of polyurethane (PU).

Under the deal, Mitsui will provide manufacturing technology for producing Toluene diisocyanate (TDI) and Methylene diphenyl diisocyanate (MDI), both used as raw materials for producing PU.

Both companies have also agreed to jointly develop new TDI and MDI technologies as part of the agreement.

SABIC vice chairman and CEO Mohamed Al-Mady said: "The agreement will spur our strategic business plan to penetrate the global polyurethane market as well as power the ambition and competitive advantage of our customers for the long term.

"It will also enable a fast development of PU application industries in Saudi Arabia, especially with regards to thermal insulation which will contribute to employment creation as well as energy savings.

"Through this technology license agreement, we will strengthen our product capabilities with high quality TDI and MDI and expand into the polyurethane business."

Mitsui Chemicals president and CEO Toshikazu Tanaka said they will support the project and are committed to its success.

"I hope that it will be just the first step in a future business partnership with SABIC, which may include establishment of a strategic supply base for competitive TDI/MDI," Tanaka said.

PU can be used in various sectors including building and construction, automotive and transportation, furniture and bedding, sports and footwear, food packaging, cold chain and refrigeration, and home appliances.

Michigan DEQ, Dow Agree On Midland Cleanup Plan

Dioxins: Dow is also offering to buy 50 properties near its manufacturing site

The Michigan Department of Environmental Quality (DEQ) said recently that it has reached an agreement with Dow Chemical on the outlines of a plan to clean up to 1,500 residential properties in Midland, Mich., that are contaminated with dioxins.

In a related development, Dow said it is offering to buy approximately 50 homes and lots located within the area outlined in the proposed dioxin cleanup agreement announced by the Michigan environmental agency.

DEQ is proposing a site-specific dioxin “action level” of 250 parts per trillion for residential soils in Midland—site of Dow’s corporate headquarters and a manufacturing plant that polluted the area with dioxins from the late 1890s until the 1970s. Studies have indicated that the soil contamination downwind of the plant is a result of airborne emissions from Dow’s historic waste incineration activities.

Under the agreement, Dow will devise a detailed work plan and submit it to the state for review in March. There will be a 45-day public comment period; DEQ will also hold a public hearing in April on Dow’s proposal.

DEQ says it developed the cleanup level of 250 ppt in accordance with Environmental Protection Agency-approved risk assessment procedures and with input from the federal agency.

The total cost of the endeavor will not be known until it is determined how many of the 1,500 properties require cleaning and how much work needs to be done. Dow will cover all of the costs. Soil sampling in residential areas is expected to begin in June, according to DEQ.

“This proposed plan represents tremendous effort by the many partners gathered to address Midland’s dioxin issue,” DEQ Director Dan Wyant says. “The proposal is just the beginning of the work that lies ahead. I commend Dow officials for their commitment to the community and Michigan’s environment, and we look forward to working with them on this effort.”

Property owners will decide whether to accept Dow’s offer to clean or buy their properties. The program will also offer relocation support for those who rent their homes, if the property owner participates in the program. Property owners who choose not to relocate will be offered testing and remediation of their properties, if necessary, according to the company.

Dow has committed to purchase the 50 properties, but has not set aside a specific dollar amount, a company spokesman states.

The announcement came just a day before EPA released a scientific assessment of the health effects other than cancer of exposure to 2,3,7,8-tetrachlorodibenzo-p-dioxin. That document, which will affect cleanups of chlorinated dioxins, furans, and polychlorinated biphenyls, was more than two decades in the making.

Reliance and Sibur to Invest $450 Million in Butyl Rubber JV in India

Reliance Industries, India's largest private firm, said recently it had finalised a joint venture with Russian petrochemicals giant Sibur to produce synthetic rubber to meet demand from Indian automakers.

The venture called Reliance Sibur Elastomers Pvt Ltd will invest $450 million to set up a factory in Jamnagar, western India by mid-2014, close to where Reliance operates the world's largest oil-processing refinery.

It will be the first time butyl rubber has been produced in India and the firm aims to be the fourth largest global supplier of the synthetic rubber, Reliance and Sibur said in a joint statement.

"This venture will cater to the demand for synthetic rubber from the Indian automotive industry of over 75,000 tonnes per year," the statement said.

This demand is currently met through imports.

India has been one of the world's fastest-growing car markets.

Reliance, controlled by India's wealthiest man Mukesh Ambani, will hold a 74.9 percent stake in the venture and Sibur the balance.

Reliance operates the world’s largest oil-processing complex in Jamnagar where two adjacent refineries can process a combined 1.24 million barrels of oil a day.

Sibur will develop basic engineering design for the facility and also train the venture's personnel at its production site in Togliatti, Russia.

Asahi Kasei Grants Thermylene PP Manufacturing Rights To Polyplast

Asahi Kasei Chemicals's wholly owned subsidiary Asahi Kasei Plastics North America has licensed German-based Polyplast Compound Werk (PCW) to manufacture and distribute its Thermylene® family of specialty chemically coupled glass reinforced polypropylenes (PP) in Germany.

Thermylene PPs are used in automotive OEMs and tiers as replacements for nylons (6 and 6/6), PBT and long fiber technology (LFT) in automotive applications such as sunroof frames, door modules and shifter bases.

The chemically coupled PPs are expected to provide knit line strength and stiffness, elevated temperature performance, creep resistance, toughness, chemical resistance and tensile strength.

Thermylene PP will also reduce part weight and tool wear as well as improve surface appearance, according to Asahi Kasei Plastics.

Polyplast Muller Group chief financial officer Matthias Hildenbrand insists thermylene offers the company's customers options for reducing weight and improving performance as a cost-effective alternative to nylon and long glass reinforced polypropylene in automotive and other applications.

"Our customers will appreciate the product design flexibility and process enabling benefits Thermylene provides," Hildenbrand said.

Asahi Kasei Plastics president John Moyer said licensing thermylene to Polyplast makes the company's products available across the world.

"Asahi Kasei Plastics values partners like Polyplast who share our philosophy to produce quality products and are committed to delivering a high level of customer satisfaction," Moyer added.

EXPANSIONS / ACQUISITIONS

Bayer to Construct TDI plant in Dormagen - EUR 150 million Investment

Bayer MaterialScience can begin construction in Dormagen of a new world-scale plant for a key plastics precursor. The Cologne regional administration has now granted the permit for an early start to construction, clearing the way for the extensive construction work to begin promptly. The final operating permit is expected in the spring. Plans call for the construction of a EUR 150 million high-tech plant in Dormagen for the particularly ecological production of the chemical TDI (toluene diisocyanate), which is required for flexible polyurethane foam.

“We are pleased that the construction for this important project can now begin and be completed within the next two years as planned," says Dr. Joachim Wolff, head of the polyurethanes business and member of the Executive Committee of Bayer MaterialScience. “With an annual capacity of 300,000 metric tons, the future world-scale plant is the final building block of a long-term investment strategy in Dormagen in addition to being a key element for optimizing our isocyanate production in Europe.” In the medium term, it will replace the existing plants for the production of TDI in Dormagen and Brunsbüttel. Bayer MaterialScience expects demand for this precursor for flexible polyurethane foams to continue to grow.

An innovative process makes production in Dormagen particularly efficient and climate-friendly. Compared with a conventional plant of the same size, the new facility will reduce energy consumption by up to 60 percent while requiring as much as 80 percent less solvent.

It also satisfies the most stringent of safety requirements. Safety measures include a continuously monitored, earthquake and stormproof housing. In theory, a variety of materials can be used for such a shell. Bayer MaterialScience chose a metallic housing fastened to a stable steel base structure. In the unlikely event of a materials leak, this in combination with a robust ventilation system ensures that none of these substances escape the housing, thus protecting people and the environment. Bayer has based the design of this housing on a mature, globally recognized industry standard in full consideration of the technical parameters of this production process.

Details about the construction project are available on the Internet under www.tdi-dormagen.bayer.com.

BASF Buys Merck KGaA's Electrolytes Business

BASF SE announced its third acquisition in battery technology in two months, saying it would buy Merck KGaA's electrolytes business for high-performance batteries to tap into growing demand for electric vehicles.

"This acquisition enhances the expertise we offer to automotive and battery manufacturers around the world," BASF board member Andreas Kreimeyer said in a statement recently.

The two companies did not say how much BASF was paying in the deal, which includes technologies and products Merck developed to boost the performance of batteries, such as additives for electrolytes used to make lithium ion batteries.

Merck said it is selling the business because it has little in common with its other chemicals activities and meets only a fraction of the needs of customers who make batteries.

BASF late last year announced plans to pool all of its battery activities geared towards electromobility into a new business unit, joining the race for next generation lithium-ion battery cells for electric cars.

Since then, it has announced plans to buy U.S.-based nickel-metal hydride battery technology specialist Ovonic Battery Co as well as a stake in lithium-sulfur battery maker Sion Power.

Stricter laws governing greenhouse gas emissions, depleting fossil fuels and the rising price of crude oil are pushing carmakers across the world to roll out new zero-emission cars that can run entirely on electricity.

Akzonobel Ashington £100m Paint Factory Approved

Plans for a £100m pound paint factory in Northumberland, UK have been approved.

AkzoNobel said its site in Ashington would be "one of the biggest manufacturing investments in the region in recent years".

Building is due to begin later this year and the factory expected to open in late 2014, when its Prudhoe site will close.

It will house the firm's UK Decorative Paints manufacturing operations, currently based in Slough.

The company said staff in Slough and Prudhoe could relocate to the new site and would be given training and development opportunities.

Its UK director, Guy Williams, said: "This investment highlights the importance of the north-east to AkzoNobel's operations, placing the region at the heart of our UK manufacturing business for the long term."

Slough will remain the company's headquarters for UK decorative paints marketing, research and development.

A large global paints and coatings company, AkzoNobel makes products including Dulux, Cuprinol, Hammerite and Polycell.

SABIC Opens State-of-the-Art Pilot Facility in Mt. Vernon, IN

SABIC’s Innovative Plastics business recently opened a new, state-of-the-art pilot facility in Mt. Vernon, Indiana that will allow chemistry and process development for its high performance polymers (HPP) – Ultem*, Siltem* and Extem* resins – product line. The new 3,000-sq.-ft., world-class facility is an innovation resource that will enable SABIC to more rapidly produce new polymers – particularly custom formulations – for customers. It will also significantly increase customer access to SABIC research scientists, product development specialists and the intricate application development process. Previously, piloting was done externally; now this work will be seamlessly integrated into product research and development and scale-up to commercial production.

Customers wishing to reformulate material properties of an existing application or create a new product using SABIC’s high-performance plastics can choose from the company’s extensive portfolio or collaborate on solutions for unique application needs. SABIC will work with a customer as it engineers a solution. The new pilot facility becomes a critical enabler for new material development, production support of the Mt. Vernon commercial plant and customer application testing. Once the customer is satisfied that a material has met its requirements, the SABIC team may produce bulk quantities at its full-scale manufacturing operation in Mt. Vernon.

The pilot facility began operations in the first quarter of 2012.

AOC, Dow Award PO Unit Contract to Foster Wheeler

Aramco Overseas Company (AOC), a subsidiary of Saudi Aramco, and Dow Europe have awarded a contract to Foster Wheeler to develop a propylene oxide (PO) unit at Jubail Industrial City in the Eastern Province of Saudi Arabia.

Construction of the PO unit, which will be constructed, owned and operated by a joint venture (JV) of Saudi Aramco and Dow, Sadara Chemical, is expected to be completed during the first quarter of 2015.

Foster Wheeler said the engineering, procurement and construction management (EPCm) deal has been awarded as an extension to the front-end engineering design (FEED) contract given by AOC and Dow in 2008.

The undisclosed contract value for the project will be included in the company's fourth-quarter 2011 bookings, according to Foster Wheeler.

"The PO unit of the Jubail project will be managed by our Thailand operation, bringing the additional benefit of rolling over the high-performing, experienced Thai PO project team onto the Jubail project," said Foster Wheeler COO Umberto della Sala.

"We also continue to support Saudi Aramco and Dow by executing additional FEED work scopes and assisting in the management of various other elements of the overall Jubail project."

PO, which is mainly used for the production of polyether polyols, is used for making polyurethane plastics.

Foster Wheeler also supplies and delivers technically advanced, reliable facilities and equipment.

The company's Global Engineering and Construction Group designs and constructs processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries.

AkzoNobel Invests €80 million to Supply New Suzano Pulp Mill in Brazil

AkzoNobel is planning to invest €80 million in the construction of a new pulp Chemical Island facility in Brazil. The plant, operated by the company's Pulp and Paper Chemicals business, Eka Chemicals, will supply the Suzano Maranhão pulp mill. This is AkzoNobel's second largest investment in Brazil in the past 12 months and further expands Eka Chemicals' sustainability-focused Chemical Island concept.

"This 15-year agreement emphasizes the importance of high growth markets for AkzoNobel and will help drive the company's medium-term strategy of doubling revenue in Brazil to €1.5 billion," said Rob Frohn, AkzoNobel Executive Committee member responsible for Specialty Chemicals.

The investment will involve supplying, storing and handling all chemicals for the 1.5 million ton per year pulp mill, which is being constructed in Imperatriz, Maranhão, Brazil. The mill is expected to come on stream in the last quarter of 2013.

"We are very proud to have been awarded this project; it underlines the value our Chemical Island concept brings to our customers," said Pulp and Paper Chemicals General Manager Ruud Joosten. "The future demand for pulp and paper in Latin America and China is forecast to increase substantially over the next decade and these investments ensure that we are part of that growth."

Commenting on the agreement, Ernesto Pousada, COO at Suzano Papel e Celulose, said: "Eka Chemicals is a long and reliable partner to Suzano Papel e Celulose. Via this deal, we are ensuring our plant will use the latest and most sustainable chemicals available – something which has been key for us."

The new facility will expand AkzoNobel's well-established pulp and paper activities in Brazil. The business already successfully runs Chemical Islands, as well as other production units, on several customer sites. It also operates bleaching and paper chemical plants in Jacareí, Rio de Janeiro, Três Lagoas and Jundiaí.

AkzoNobel currently employs over 2,700 people in Brazil, and its 2010 revenue totaled close to €850 million. The majority of revenue is generated from local demand. The company’s ambition is to achieve revenue of €1.5 billion in Brazil by 2015.

Kao to Build New Surfactant Plant in Indonesia

Kao Indonesia Chemicals, a subsidiary of Kao Corporation, will build a new surfactant production plant at Karawan International Industry City (KIIC), Indonesia, according to president and CEO Motoki Ozaki.

The new plant in Jakarta will cover an area of about 120,000m², which is double the area of the production site currently being used.

Kao Indonesia is initially investing ¥4bn ($51m) for the new plant, with construction expected to start in February 2012 and commercial operations in January 2013.

The new plant will be equipped with a gas cogeneration system to reduce CO2 emissions and energy costs.

The transfer of the current production base to KIIC was done because of an advantageous location and favourable infrastructures in relation to future expansion of production facilities, Kao Indonesia said.

The transfer of all operations from the existing plant located in Tambun, a suburb of Jakarta, will be completed by the end of December 2014 and integrated with the new plant, which will increase annual surfactant production capacity by approximately 50%.

With the construction of the new plant, Kao Indonesia aims to enhance and expand its function as a supply base for surfactants in the Asian market.

The surfactants are used as raw materials for toiletries and chemical products for industrial use.

Kao is involved in various business fields, including beauty care such as cosmetics, skin care and hair care products; human health care, covering functional health drinks and sanitary products; and fabric and home care products, such as laundry detergents and household cleaners.

Infineum Plans to Construct New Salicylate Plant

Infineum, a provider of petroleum additives, is planning to start construction of its new salicylate manufacturing plant at Jurong Island, Singapore, in the first quarter of 2012.

As part of the construction, Infineum has selected Chiyoda Singapore to provide detailed engineering, procurement and construction (EPC) phase services for the new project.

The new plant, which will add to the company's global supply of chemical additives, is expected to start production operations at the end of 2013.

Infineum Sales & Marketing vice president and chief strategy officer Trevor Russell said: "With excellent assistance from the relevant Singapore government departments, we are on track to meet our 2013 start up target.

Infineum Group vice president of supply and project VP sponsor Sara Lefcourt said the project has progressed well over the last nine months.

"The location of the new Singapore facility will allow it to supply more readily the fast growing Asia Pacific market and to further strengthen supply reliability globally," Lefcourt added.

Calcium salicylate is a detergent component, which is a critical part of Infineum's highly-differentiated top-tier passenger car, heavy-duty engine oil formulations and its marine oil additive product slate.

Infineum, which is a joint venture of ExxonMobil and Shell, is involved in developing and manufacturing lubricant additives, which are primarily used in automotive, heavy-duty diesel and marine engines, and additives for gasoline and diesel fuels.

The company's range of products also includes speciality additives for automotive transmission fluids, and gear and industrial oils.

Tokuyama Begins Polycrystalline Silicon Plant Second Phase Construction

Tokuyama Malaysia, a subsidiary of Tokuyama Corporation, has initiated the second-phase construction of its polycrystalline silicon plant at the Samalaju Industrial Park in Sarawak, Malaysia.

The estimated construction cost of the second-phase plant will be approximately ¥100bn ($1.25bn).

The company, which aims to start production operations in April 2014, uses the Siemens method to produce polycrystalline silicon for solar cells at a capacity of 13,800 tonnes per year (tpa).

Tokuyama Malaysia said by combining the second-phase capacity with that of the first-phase plant, which is currently under construction in the same industrial park, the production capacity of its new plant will reach 20,000tpa.

Tokuyama's present aim is to raise its global share of polycrystalline silicon for solar cells to 10% or more, to meet the accelerating solar cell demand in the future.

Tokuyama is involved in various business segments, including chemicals, which comprises soda ash and calcium chloride, chlor-alkali, vinyl chloride, and new organic chemicals.

The company's other business segments include speciality products, consisting of electronic materials, fumed silica, precipitated silica, fine chemicals, Shapal, IC chemicals, cleaning systems and NF business units.

Tokuyama is also engaged in the cement industry, advanced components such as polypropylene film, medical diagnosis systems, dental materials, ion exchange membranes, gas sensors / detectors, and plastic sashes.

McIlvaine Company

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Tel: 847-784-0012; Fax: 847-784-0061

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