2014 pudaily newsbits: europe & america...2014 pudaily newsbits: europe & america 3 / 27...

2014 PUdaily Newsbits: Europe & America

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BASF Plans to Increase R&D Investments

BASF Slashes Chemical Production Targets on Weak Demand

BASF to Build New Plant for Speciality Amines in Ludwigshafen

Bayer Plans to Focus Entirely on Life Science Businesses

Bayer MaterialScience Inaugurates TDI Plant in Germany

Bayer Offers Materials for the World Cup Stadiums in Brazil

BMS to Invest EUR 15 Mln for CO2 Polyols Production

Albemarle and ICL Partner to Set up Polymeric Flame Retardant Joint Venture

Bostik Introduces A New, High Performing Adhesive for Buildings and More

CJSC Orgsyntes Group to Invest over $280ML in MDI Production

COIM to Expand Europe Polyester Polyols Capacity

Dow Automotive Systems launches Amine Emission-free PU Foam for Interiors

India launches Anti-dumping Probe into Chemical Imports from China and Switzerland

Jowat Establishes New Business Unit Global Product Marketing

PTT Global Chemical Increases Stake in French Chemical Firm Vencorex

Sabic and Shell Cancel Sadaf JV Expansion

SAPICI to Expand Aliphatic Prepolymer in Italy and China by End 2014

SAPICI Waterborne Adhesives for Flexible Packaging Help Nurturing Industrial Innovation

Shell Two PO/SM Plants in Moerdijk Experienced Long Unplanned Shutdown in H2 of 2014

Vencorex Announces Increased Capacity of Isophorone Diisocyanate & Expansion of IPDI

Wanhua Chemical and Hungary BorsodChem Merger Plans on Hold

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BASF Plans to Increase R&D Investments

2014/5/30

German chemical

firm BASF has unveiled

plans to increase its

investments in

research and

development (R&D) this year and expects to

carry out 50% of its research activities outside

Europe by 2020.

In 2013, the company invested €1.8bn on

research, compared with €1.7bn in 2012.

In line with its efforts to drive globalisation of

research, BASF opened new laboratories in Asia

and the US.

The German firm also collaborated with

California universities for the 'California

Research Alliance by BASF' (CARA) to focus on

the biosciences and new inorganic materials for

the energy, electronics and renewable

resources.

In Asia, BASF partnered with Chinese,

Japanese and Korean universities for the

research initiative 'Network for Advanced

Materials Open Research' (NAO), which seeks to

develop materials for a wide range of

applications, including products for the

automotive, construction and water industries.

Kreimeyer was quoted by Bloomberg as

saying that the company plans to spend 3% of its

revenues,

excluding an oil

and gas unit, on

research each

year.

In 2013, BASF generated €8bn from sales of

new products introduced within the past five

years and launched 300 new products on the

market.

BASF Slashes Chemical Production Targets on

Weak Demand 2014/10/28

German chemical firm BASF has cut its

chemical production targets for 2014 and 2015

due to weaker global economy.

The company expects its chemical

production to grow by 4% in the current fiscal

and the next, compared to previous estimates of

4.4% and 4.9% respectively.

BASF said that there has been increased

margin pressure for certain products and

partially in the Performance Products segment.

Consequently, the company is restructuring the

segment, which is expected to contribute around

€500m to its earnings from 2017.

Demand for chemical products, particularly

in Europe, was significantly affected by

geopolitical tensions and increasing uncertainty

about the global economic development.

Europe accounts for more than half of BASF


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revenues.

For the three months ended 30 September,

BASF reported earnings of €1.04bn, compared

with €1.1bn for the same period a year ago.

The chemical giant expects earnings before

interest, taxes, depreciation and amortization of

around €12bn for 2015.

BASF to Build New Plant for Speciality Amines in

Ludwigshafen 2014/5/15

BASF is building a new world-scale plant for

the production of speciality amines in

Ludwigshafen, Germany. Start-up of the facility

with a total annual capacity of about 12,000 t is

scheduled for 2015.

The product range of this flexible

multi-product plant comprises 15 amines for

different applications. The major applications are

in the construction, automotive, crop protection,

and pharmaceutical industries. With this new

facility, BASF is expanding its global production

network of amines with plants in Ludwigshafen

and Schwarzheide in Germany; Antwerp,

Belgium; Geismar, LA, USA; and Nanjing, China.

BASF had announced in March 2014 that it is

building another new multi-product plant for the

production of speciality amines at the BASF

Verbund site in Nanjing, China. The main

products of this plant, which is due to start-up

operations in 2015, will be

dimethylaminopropylamine (DMAPA) and

polyetheramine (PEA).

With about 200 different amines, BASF says

it has one of the world’s most diverse portfolios

of this type of chemical intermediates. Along

with alkyl-, alkanol-, alkoxyalkylamines, the

company offers heterocyclic and aromatic as well

as speciality amines. The range is completed by

an expanding portfolio of chiral amines of high

optical and chemical purity. The products are

used mainly to manufacture process chemicals,

pharmaceuticals and crop protection products,

as well as cosmetic products and detergents.

They also serve to produce coatings, special

plastics, composites, and special fibres.

Bayer Plans to Focus Entirely on Life Science

Businesses 2014/9/19

Bayer intends in the future to focus entirely

on the Life Science businesses – HealthCare and

CropScience – and float Bayer MaterialScience

on the stock market as a separate company

within the next 12 to 18 months.

A major reason for this move is to give

MaterialScience direct access to capital for its

future development. This access can no longer

be adequately ensured within the Bayer Group

due to the substantial investment needs of the

Life Science businesses for both organic and

external growth.

Also, as a separate

company, MaterialScience

can align its organizational

and process structures

and corporate culture

entirely toward its own

industrial environment and business model.

Following the intended flotation, MaterialScience

will be Europe's fourth-largest chemical

company; it had global sales in 2013 of more

than EUR 11 billion (pro forma figure). The new

company is planned to have a global workforce of

roughly 16,800, including about 6,500 in


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Germany.It will have a new name and a separate

identity and be headquartered in Leverkusen.

Bayer MaterialScience Inaugurates TDI Plant in

Germany 2014/12/10

Bayer MaterialScience (BMS) has

inaugurated its new 300 kT/year toluene

diisocyanate production facility in Dormagen on

14 December 2014.

Thomas said that the plant would be able to

compete on a delivered-cost basis in Europe with

new capacity due soon in the Middle East.

Thomas added that there will be further

restructuring of BMS European TDI portfolio

following the closure of the old Dormagan facility

and the transfer of staff to the new facility there.

In this March, Bayer cancelled plans to close

its 160 kt TDI plant at Brunsbüttel, Germany by

the end of 2014 due to strong demand from the

bedding and upholstery sectors. The site at

Brunsbüttel is planned to be converted to

produce MDI. After Bayer inaugurated new TDI

plant in Dormagen, Thomas said they will close

Brunsbuttel at the right time.

Bayer Offers Materials for the World Cup

Stadiums in Brazil 2014/6/20

Brazil has modernized and expanded its

infrastructure in preparation for the 2014 Soccer

World Cup and other major athletic events. One

main area of activity was the renovation and

construction of sports stadiums. Clever material

solutions from Bayer MaterialScience are

contributing to the comfort and safety of

spectators, in everything from floors to roofing.

One example is the “Estadio Nacional” in

Brasilia. The capital of this emerging nation lies

in a tropical climate zone with high temperatures

and heavy precipitation. Transparent solid

sheets made of polycarbonate protect the

70,000 spectators in the stadium from sun and

rain. The Makrolon® UV 2099 sheets have UV

protection on both sides that survives years of

weathering without damage. With a

transparency of over 80 percent, the sheets

simultaneously promote grass growth.

The team of architects from gmp (Architects

von Gerkan Marg and Partner) and Castro Mello

Arquitetos have designed a beautifully shaped

roof for the stadium. It is a circular suspension

roof comprising double-walled structure held in

place by a concrete ring. The final inner ring of

the stadium roof in Brasilia consists of 110 metric

tons of Makrolon® sheets, with each sheet 12


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millimeters thick and over 10 meters long. The

sheets cover a total surface area of roughly

7,500 square meters. Because polycarbonate is

significantly lighter than other materials, a

complex and costly substructure was

unnecessary.

Makrolon® sheets not only can be easily

installed directly at a construction site, they are

also sturdy, highly impact-resistant and

breakproof, making them a lasting and

cost-efficient solution that has proven its worth

in previous new stadium structures, for example

in China and Poland.

The “Arena das Dunas” in Natal City on the

coast of Brazil is another World Cup stadium that

benefits from the outstanding properties of

transparent Makrolon® sheets. In the “dune

stadium” it is the extraordinary flexibility of

design that comes to the fore as none of the 20

individual segments is the same. Stable and

strong, the sheets of the roof over the arena

have different radii.

Raised floor markings

Before kickoff, before the players clear a

path to their opponent’s goal, a sea of fans will

pour into the stadiums to find their seats in the

stands. For the blind and visually impaired,

situations of this kind can quickly become a

nightmare: Among the jostling of the crowd,

they can progress only slowly and must try to

find their way with

their limited sight.

To help them, the

World Cup organizers

have installed an

innovative wayfinding

system on the floors in

the public areas of

several stadiums. It comprises colored plastic

panels with bumps and ridges that are raised a

few millimeters and can easily be detected with

the feet. This kind of tactile feedback helps

people walking over the panels to keep their

bearings. Bayer MaterialScience developed a

material solution for the flooring based on the

thermoplastic polyurethane (TPU) Desmopan®

DP 3059D.

BMS to Invest EUR 15 Mln for CO2 Polyols

Production 2014/5/15

The greenhouse gas carbon dioxide can be used

as a basic building block for plastics. Following a

successful test phase and promising market

analysis, Bayer MaterialScience plans to invest

EUR 15 million in the construction of a production

line at its Dormagen site, which will use CO2 to

produce a precursor for premium polyurethane

foam. The line will have an annual production

capacity of 5,000 metric tons. The permit

application will be submitted to the Cologne

district authority in the next few weeks. The

objective of the “Dream Production” project is to

launch the first CO2-based polyols on the market

starting in 2016. Processors of polyols and

polyurethanes have already expressed

considerable interest.

High-quality polyols based on CO2 are not

currently available on a commercial scale. The

new polyols from Bayer MaterialScience have at

least the same high level of quality as

conventionally manufactured materials and a

more sustainable impact. Using a certain amount Back


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of CO2 as a building block enables a reduction in

the amount of the petroleum-based raw material

propylene oxide, which polyols are normally

made entirely from. The CO2 balance of the new

process is far better than that of the conventional

production method.

Successful with partners

Bayer MaterialScience developed the

manufacturing process in collaboration with

partners in industry and academia. The company

discovered the catalyst that brings about the

chemical reaction with the required level of

efficiency, and developed it together with the

CAT Catalytic Center, a research facility in

Aachen, Germany. The process was tested

extensively in a pilot plant at the Leverkusen site

as part of the publicly funded Dream Production

research project. This was accompanied by a

study of market demand.

Vencorex Announces Increased Capacity of

Isophorone Diisocyanate & Expansion of IPDI

2014/12/8

PUdaily, Shanghai-In March, 2014, Vencorex

is studying the closure of production of its

toluene diisocyanate (TDI) at its Pont-de-claix,

France, which results in hundreds of layoffs,

according to a report said in French.

The manufacturer is said to have been under

challenging business circumstance for TDI since

the global financial crisis in 2009 and the

company has been suffering of constant deficit.

According to the French report, Vencorex

will transformer the facilities of TDI after closure

to HDI. The nameplate TDI capability is 126 kt

per annual, HDI capability is 25 kt per annual.

In this early Nov., Vencorex is expanding its

capacity of aliphatic isocyanates to further

strengthen the company’s positions world-wide.

Several industrial projects will enhance the

ability to serve the growing market for years to

come.

Vencorex’s objective is to strengthen its

global position in Aliphatic Isocyanates business.

(HDI, IPDI, Tolonate™ & Easaqua™ grades and

new products). The first step includes an

expansion of the monomer capacity in Pont de

Claix, France by 70,000 MT and a new derivative

unit, Tolonate™, with 12,000 MT initial capacity

in Rayong, Thailand. The derivative unit in

Thailand will be operational by the second half of

2015 while the additional monomer capacity will

be available from mid-2016.

Vencorex will also invest in new production

of polyisocyanates, Easaqua™, for waterborne

PU coatings in Freeport, Texas.

In addition to the capacity expansions,

Vencorex will also further strengthen its R&D

capabilities and global Marketing & Sales

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organization.

On Dec. 8, Vencorex is significantly

expanding its capacity of Isophorone

Diisocyanate (IPDI).

The expansion of this monomer capacity will

take place at Pont de Claix site, France. The new

capacity will be 20 kT to be available by the end

of 2016. IPDI is an aliphatic isocyanate monomer

used as raw material in the synthesis of

polyurethane resins (PUR).

Vencorex is a joint venture between Thailand

PTT and Sweden Perstorp, whose stock share is

51% and 49% respectively.

Albemarle and ICL Partner to Set up Polymeric

Flame Retardant Joint Venture 2014/9/2

Albemarle and Israel Chemicals (ICL) have

partnered to set up a joint venture (JV) to

produce polymeric flame retardants in the

Netherlands and Israel.

The Netherlands facility will produce 2,400t

of ICL's FR-122P and Albemarle's GreenCrest

polymeric flame retardants, which will replace

hexabromocyclododecane (HBCD).

Expected to commence operations in the

fourth quarter of this year, the Israel plant will

have an annual production capacity of 10,000t.

HBCD is a widely used flame retardant in

expanded (EPS) and extruded (XPS) polystyrene

foam applications, but the compound is being

banned in the European Union, Japan and other

countries.

The companies will continue to offer

independent marketing, sales and technical

service across the world in order to ensure a

smooth transition of EPS and XPS producers to

the polymeric flame retardant.

Bostik Introduces A New, High Performing

Adhesive for Buildings and More 2014/8/11

Bostik, one of the worldwide leader in

adhesive and sealant technology, announces a

new, high performing adhesive for product

assembly applications. The H20182 is the latest

innovation in HMPSA technology from Bostik.

Bostik chemists engineered the H20182

smart adhesive to meet the evolving demands of

adhering to difficult substrates while maintaining

bond performance properties at low

temperatures. Not only can the H20182 be used

for indoor finished goods, it can also be used in

some outdoor applications including field turf,

non-structural window and door assemblies,

insulation, and similar building materials. With

an aggressive hot tack and a relatively low

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viscosity, the high performing product has a wide

processing window in both spray and extrusion

equipment.

CJSC Orgsyntes Group to Invest over $280ML in

MDI Production 2014/4/24

CJSC Orgsyntes Group is introducing a

project for the production of Methylene diphenyl

diisocyanate (MDI) with an output capacity of

100 ktpa in their Novocheboksarsk plant, OJSC

Khimprom.

The proposed project for the production of

MDI consists of the additional production of

several new products such as nitrobenzene (100

ktpa), aniline (75 ktpa), formalin (from methanol)

(40 ktpa), as well as carbon monoxide and

hydrogen from the steam reforming of methane.

MDI (Methylene diphenyl diisocyanate) is

widely used in construction (thermal and

acoustic insulation, foam, sandwich-panels),

wood composite production (chipboard, strand

board, fiberboard), decorative interior items

production, automotive production (interior

items, auto components), as well as the

production of elastic fibers, glue, paint, shoe

soles, artificial leather and a variety of other

unique industry applications.

Nowadays, production of MDI in the Russian

Federation as well as other CIS countries is

non-existent, making the market entirely import

dependent.

Yulia Smolina, Chief Financial of CJSC

Orgsyntes Group, when commenting on the

progress of the project said the following:

Earlier this year CJSC Orgsyntes Group

announced a $150mln investment in the

production of

glyphosate, as well

as an $87 mln

investment into

hydrogen peroxide

production facility,

the construction of

which is planned to

begin in June.

COIM to Expand Europe Polyester Polyols

Capacity 2014/03/12

Global polyurethane chemicals producer,

announced today it will break ground to expand

its European polyester polyols manufacturing

capacity in Offanengo, Italy.

The investment is expected to be completed

by September 2015 and will increase the

capacity of aliphatic and aromatic polyester

polyols by 35,000 metric tons.

"The growing demand of COIM’s aliphatic

and aromatic polyester polyols will soon saturate

the actual polyester polyols capacity”, said Lucio

Siano, C.E.O. of COIM. “This decision

demonstrates COIM’s commitment to the

European rigid foam insulation market, C.A.S.E.,

footwear applications as well as captive use."

Financial details are not being disclosed.

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Dow Automotive Systems launches Amine

Emission-free PU Foam for Interiors 2014/8/6

Dow Automotive Systems, the

Switzerland-based division of Dow Chemical, has

launched what it describes as the first truly

viable amine emission-free polyurethane (PU)

foam solution for interior applications. This

technology enables automotive seat pad foams

to meet stringent industry requirements such as

German OEMs’ specifications for ultra low

emissions, physical and mechanical properties,

and ageing and processing advantages.

The new foam has been tested and validated

by Faurecia, the French maker of automotive

seating, at its foam production facility in

Magny-Vernois.

Traditionally PU foams require amine

catalysts to promote reaction between polyols

and water with the isocyanate component (the

gelling and blowing reactions). Until now, these

added catalysts have contributed to amine

emission issues that can impact on the physical

performance of PU foam over time.

Dow Automotive Systems has designed a

new additive polyol family with high and

specifically balanced catalytic activity. This

allows foam makers to completely eliminate the

addition of catalysts when manufacturing PU

foam and thereby eliminates amine emissions.

The company claims the new additive polyol

family results in an improved processing window

and improved ageing and mechanical properties

of foams based upon Specflex Activ.

India launches Anti-dumping Probe into

Chemical Imports from China and Switzerland

2014/7/31

The Directorate General of Anti-Dumping

and Allied Duties (DGAD), an arm of the

Commerce Ministry of India, has launched an

anti-dumping probe over imports of

Diketopyrrolo Pyrrole Pigment Red 254 from

China and Switzerland.

The move comes after a domestic producer

filed a petition with DGCA over alleged dumping

of the chemicals into India.

Diketopyrrolo Pyrrole Pigment Red 254 is a

chemical primarily used in the paint industry.

DGAD said that it has found sufficient

evidence of dumping from China and Switzerland.

The agency is verifying the import data from

January 2013 to December 2013 and will also

consider the data of 2010-11 and 2011-12 to

evaluate its impact on domestic producers.

Following the investigation, DGAD could

recommend an anti-dumping duty, which will be

imposed by the Finance Ministry.

Jowat Establishes New Business Unit Global

Product Marketing 2014/3/14

Jowat has established the new Global

Product Marketing business unit with the

objective of accelerating the market maturity of

new innovative adhesive systems.

Product marketing, product portfolio, and

management of innovations, are the core tasks

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10 / 27


of the newly created business unit of Jowat AG.

Timm Schulze took over as head which makes

him also responsible for all activities with

solution partners. The Global Product Marketing

operates worldwide and across all industrial

sectors, with the objective of accelerating the

market maturity of new innovative adhesive

systems.

PTT Global Chemical Increases Stake in French

Chemical Firm Vencorex 2014/9/2

PTTGC Netherlands, a wholly-owned

subsidiary of Thailand's chemical producer PTT

Global Chemical (PTTGC), has acquired

Perstorp's 34% stake in French chemical maker

Vencorex for an undisclosed amount. The

European Commission approved at the end of

July under the EU Merger Regulation the

acquisition of Vencorex of France by PTT Public

Company Limited of Thailand, via its Dutch

subsidiary PTTGC International.

The deal will increase the Thai company's

interest in Vencorex to 85% and strengthens its

presence in the downstream polyurethane

market.

The acquisition will allow the company to

expand production of Toluene diisocyanate (TDI)

and Hexamethylene diisocyanate (HDI) and its

derivatives in order to meet demand in Asian

markets.

TDI, HDI and its derivatives are used as

feedstock in manufacturing polyurethanes,

which are used in foams and coatings for the

automobile and construction industries.

PTTGC Netherlands has made an initial

payment for the stake; the remaining amount

will be calculated based on the performance of

Vencorex Holding during this year and 2015 and

will be paid at a later date.

PTTGC said it will support Vencorex as a R&D

centre for isocyanate.

Perstorp president and CEO Jan Secher said:

"This financial transaction is fully in line with

Perstorp's long-term strategy to focus on its core

business activities outside the isocyanates

market."

Perstorp Holding and PTTGC formed a joint

venture in May 2012 and named it Vencorex

Holding.

Following the completion of the latest deal,

Perstorp will continue to support Vencorex as the

new strategy is being implemented and the

transaction will enable Vencorex to invest in

downstream isocyanates.

PTTGC operations comprises upstream

business with a petrochemical capacity of 8.2

million tonnes per year and a petroleum products

capacity of 228,000 barrels per day;

downstream business, which includes polymers;

EO-based performance; green chemicals and

high-volume specialities.

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11 / 27


Sabic and Shell Cancel Sadaf JV Expansion

2014/10/27

Saudi Basic Industries Corp and Royal Dutch

Shell have cancelled plans to expand an existing

petrochemical joint venture in Saudi Arabia

following feasibility studies.

The two partners in the joint project, known

as SADAF joint venture in Jubail, on the Gulf

coast of Saudi Arabia, first announced plans to

explore an expansion of their petrochemical

plant in 2012.

The expansion was due to add polyols,

propylene oxide and styrene monomer.

SAPICI to Expand Aliphatic Prepolymer in Italy

and China by End 2014 2014/2/11

Sapici has announced plans to increase

aliphatic isocyanate prepolymer in Italy and

isocyanate prepolymer capacity in China by the

end of 2014.

The investment will see more capacity at the

firm’s San Cipriano Po, Pavia, said the company.

The Italian plant opened in 2004. More capacity

is planned for Zhuhai, Guangdong, China factory,

which opened in 2006 is also scheduled, said the

firm.

Sapici general manager Cristian Furiosi

described the investments as “significant” but

the firm declined to quantify them. He added

that the increase in Sapici’s isocyanate

prepolymer and hardeners for coating and

adhesives production at Zhuhai would allow the

company to produce a wider range of specialty

and customised products for the Asian market.

He said San Cipriano Po will synthesise 100%

solid content products for coatings.

SAPICI Waterborne Adhesives for Flexible

Packaging Help Nurturing Industrial Innovation

2014/7/21

SAPICI competence, passion and continued

investment in research

and development not

only allow the

Company’s clients to

access new,

sustainable and

effective products and

solutions, but they also

make available

advanced formulations for R&D activities carried

on by Universities and other international

organizations.

This is the case of a research project

conducted by the Department of Food,

Environmental and Nutritional Sciences –

Packaging Division, of the University of Milan,

Italy. Coordinated by Prof. Luciano Piergiovanni,

the project has investigated the possibility of

laminating polyester CNC (Cellulose

Nano-Crystals) coated films to a polyolefinic

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12 / 27


layer by using special waterborne adhesives.

In fact, the laminates properties are directly

related to the affinity between the laminating

film, CNCs and the selected adhesive that

represents a key element in the final structure.

The best results in terms of oxygen-barrier and

mechanical properties have been obtained with

the combination of PET coated (CNCs) / PE.

SAPICI waterborne specific polyurethane

adhesives for flexible packaging have

contributed to both the effectiveness and the

sustainability values of the studied solutions.

The positive and promising results of the

project, aimed at evaluating the feasibility for

demanding food packaging of novel multilayer

structures, make it possible a complete low

impact process: CNCs, the perfect efficiencies of

nanotechnologies from renewable resource,

no-emission waterborne adhesives, one plastic

barrier film less. The final packaging (PET / CNC

/ waterborne PUD adhesive / PE) shows

incredible gas and vapor barrier, and it is now

opening new sustainability routes for the food

packaging industry.

The innovative R&D project "Strategies for

Implementing Nano-Cellulose Coatings in

Flexible Packaging" was presented during the

6th Edition of the Shelf Life International Meeting

held on June 11-13, 2014 in New Brunswick,

New Jersey, USA.

Shell Two PO/SM Plants in Moerdijk Experienced

Long Unplanned Shutdown in H2 of 2014

2014/12/24

PUdaily, Shanghai-Shell propylene

oxide/styrene monomer (PO/SM) 1 plant at

Moerdijk site in Netherlands was taken off-line

after steam leakage happened at cracker in the

site on Oct. 2 and it has resumed production in

December

Shell declared force majeure on Oct. 4 on

ethylene and propylene at its 900,000 tons/year

steam cracker at Moerdijk; ethylene and

propylene are both raw materials to make

propylene oxide and styrene monomer is

produced as byproduct.

Another production line at the site called

PO/SM 2 was shut down in June due to

unexpected blast

happened on June

3 that caused

severe damage to

the plant. BASF SE

declared force

majeure on

propylene oxide supply on June 4, “current view

product availability will remain to be impacted

until at least the end of 2014…Therefore, we will

have to leave in place the allocation of 55% of

the contract quantity in the first 5 months of

2014,” quoted from the company statement.

However, it has yet to resume as of Dec. 31,

2014.

PO/SM 1 is run by Shell Netherland Chemie

and has a capacity of 210 kt (PO) and 450 kt

(SM). The second plant, operated by Ellba, the

joint venture between BASF and Shell Chemicals,

has a capacity of 250 kt (PO) and 550 kt (SM).

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13 / 27


Vencorex Announces Increased Capacity of

Isophorone Diisocyanate & Expansion of IPDI

2014/11/3

PUdaily, Shanghai-In March, 2014, Vencorex

is studying the closure of production of its

toluene diisocyanate (TDI) at its Pont-de-claix,

France, which results in hundreds of layoffs,

according to a report said in French.

The manufacturer is said to have been under

challenging business circumstance for TDI since

the global financial crisis in 2009 and the

company has been suffering of constant deficit.

According to the French report, Vencorex will

transformer the facilities of TDI after closure to

HDI. The nameplate TDI capability is 126 kt per

annual, HDI capability is 25 kt per annual.

In this early Nov., Vencorex is expanding its

capacity of aliphatic isocyanates to further

strengthen the company’s positions world-wide.

Several industrial projects will enhance the

ability to serve the growing market for years to

come.

Vencorex’s objective is to strengthen its

global position in Aliphatic Isocyanates business.

(HDI, IPDI, Tolonate™ & Easaqua™ grades and

new products). The first step includes an

expansion of the monomer capacity in Pont de

Claix, France by 70,000 MT and a new derivative

unit, Tolonate™, with 12,000 MT initial capacity

in Rayong, Thailand. The derivative unit in

Thailand will be operational by the second half of

2015 while the additional monomer capacity will

be available from mid-2016.

Vencorex will also invest in new production

of polyisocyanates, Easaqua™, for waterborne

PU coatings in Freeport, Texas.

In addition to the capacity expansions,

Vencorex will also further strengthen its R&D

capabilities and global Marketing & Sales

organization.

On Dec. 8, Vencorex is significantly

expanding its capacity of Isophorone

Diisocyanate (IPDI).

The expansion of this monomer capacity will

take place at Pont de Claix site, France. The new

capacity will be 20 kT to be available by the end

of 2016. IPDI is an aliphatic isocyanate monomer

used as raw material in the synthesis of

polyurethane resins (PUR).

Vencorex is a joint venture between Thailand

PTT and Sweden Perstorp, whose stock share is

51% and 49% respectively.

Wanhua Chemical and Hungary BorsodChem M

erger Plans on Hold 2014/2/25

Wanhua Industrial Group said it has no plans

to merge its Wanhua Chemical subsidiary with

Hungary’s BorsodChem in 2014.

Wanhua Industrial stated, shortly after it

purchased a 96% stake in BorsodChem in

January 2011, was that it would merge Wanhua

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14 / 27


Chemical and BorsodChem when the correct

conditions were met.

One of the key conditions was that

BorsodChem would make sufficient profit.

Wanhua initially suggested it would like to merge

the units by August 2012. According to figures

filed in Hungary in 2012 BorsodChem had sales

of Euro 14.28m ($19.7m) and made an

operating profit of Euro 16,400. 2012 is the last

year for which figures are available

Wanhua declined to comment on when it

expects to see an improvement in performance

at BorsodChem.

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Dow and KDG Build PU Distribution Partnership in U.S.

Dow-Mitsui Chlor-Alkali Facility Achieves Successful Start-upBASF to Build

Huntsman Experiences PO/MTBE Manufacturing Disruption in Q2 and Q3, 2014

Huntsman MDI 2013 Sales Volume Grew 8% YOY

Huntsman to Expand Polyols for PU in the Port of Rotterdam

Wanhua to Increase Price of Wannate HMDI Worldwide

Wanhua-BorsodChem Sets Office in Brazil

Arkema Opens New Development and Application Laboratory in Brazil

Brief Analysis of Influence of US MDI Force Majeure on Global Market

Bayer MaterialScience Acquires DuPont's Aniline Production Facility in Baytown

China’s Anti-Dumping against TDI from Japan, South Korea and US Terminated

Honeywell Resins and Chemicals to Increase Production Capacity at Virginia Plant

INVISTA’s Latest TERRIN™ Polyol Offering Completes TSCA Registration

Japanese PP Compounder Expanding in US, China; Targets Auto Sector

Lanxess Launches New Compounding Plant in Brazil Aimed at Auto Market

LyondellBasell to Build World Scale PO/TBA Plant on U.S. Gulf Coast

PPG to Invest $40 Million in Coatings Facility Expansion in Brazil

PolyOne Closing Two Plants in Brazil

Royal Adhesives & Sealants Acquires Chemque

US PU Foam Market to Reach $7.2bn in 2017

Visteon Completes Acquisition of Electronics Business of Johnson Controls

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16 / 27


Dow and KDG Build PU Distribution Partnership

in U.S. 2014/1/17

The Dow Chemical Company has announced

that they have partnered with KODA Distribution

Group (KDG) to form an alliance in the U.S. for

the supply of Isocyanates and Polyols to the

Polyurethane market.

The partnership includes all the Aromatic

Isocyanates and Polyols sold under the Dow

brands ISONATETM, VORANATETM, PAPITM,

VORANOLTM and VORALUXTM.

The non-exclusive agreement between Dow

and the KDG companies covers Polymeric MDI,

polyols and TDI. The authorization becomes

effective January 1, 2014 and includes the

following regions:

Ribelin Sales - Southeast and Southwest

PT Hutchins Company - West

Dow-Mitsui Chlor-Alkali Facility Achieves

Successful Start-up 2014/4/1

The Dow Chemical Company (NYSE: DOW)

announced today that its joint venture

membrane chlor-alkali facility with Mitsui & Co.,

Ltd. of Tokyo, Japan (“Mitsui”) successfully

initiated full-scale, commercial production.

Dow’s share of the chlorine produced at the

Dow-Mitsui Chlor-Alkali Freeport, Texas, facility

will serve the growing feedstock needs of its

performance- and market-driven businesses. In

addition, Dow will market the caustic soda on

behalf of the joint venture.

The new facility has a nameplate capacity of

approximately 800 kilotons per annum (KTA) of

chlorine. As previously announced in December,

2013, this new world scale facility will replace

800 KTA of older capacity on the site.

Huntsman Experiences PO/MTBE Manufacturing

Disruption in Q2 and Q3, 2014 2014/8/18

Huntsman Corporation announced on June

19 that during the second quarter of 2014 it

experienced an unplanned manufacturing

disruption within its Polyurethanes division.

The disruption occurred at its propylene

oxide and MTBE facility in Port Neches, Texas.

The manufacturing facility recovered normal

operating rates in mid-to late June. The

estimated financial impact of the manufacturing

disruption in the second quarter of 2014 was

approximately $10 million.

On August 14, Huntsman experienced

another unplanned manufacturing disruption on

a production unit at the Port Neches facility and

was caused by equipment failure.

The Port Neches facility manufactures

methyl tertiary butyl ether (MTBE), propylene

oxide (PO) and propylene glycols (PG). The

manufacturing disruption also impacts internal

PO supply to downstream MDI systems, amines,

surfactants and propylene oxide

derivatives. The affected unit is expected to be


17 / 27


off-line for two to three weeks, with an estimated

negative impact of $30 million EBITDA for

Huntsman’s Polyurethanes and Performance

Products divisions.

The plant has propylene oxide (PO) capacity

of 240 kt per year and by-product MTBE at 742 kt

per year. It is yet to be determined whether this

will impact the planned maintenance scheduled

for the first half of 2015.

Huntsman MDI 2013 Sales Volume Grew 8%

YOY 2014/2/12

Huntsman’s full year and final quarter report

reflect an increase in demand for polyurethanes,

the company said.

The company reported revenues of $1.23bn

(EUR800m) in final quarter of last year compared

to $1.18bn in the final quarter of 2012, a hike of

4% or $48m.

Polyurethanes sales revenues rose by 1%

from $4.89bn in 2012 to $4.96bn in 2013.

The increase in polyurethanes revenues was

primarily due to higher sales volumes and

favourable sales mix partially offset by lower

average selling prices.

Huntsman’s MDI (methylene diphenyl

diisocyanate) sales volumes increased 8%

against prices which the report said had

remained “essentially flat.” The company said

the hike was the result of improved demand in all

regions and across most major markets.

Polyurethane earnings before interest, tax,

amortisation and depreciation stood at $173m

for the final quarter of 2013 compared to $190m

during the same period in 2012.

Over the full year, there was a 6.4% drop in

polyurethanes pre-tax earnings between 2012

($788m) and 2013 ($740m).

Huntsman to Expand Polyols for PU in the Port of

Rotterdam 2014/5/13

Huntsman and Tebodin signed partnership

contracts on all engineering projects for

Huntsman Holland on an EPCm (Engineering,

Procurement, Construction management) basis

as well as on Consultancy services. The contracts

cover the cooperation of the companies for 5

years, according to press release at Port of

Rotterdam.

Huntsman Holland is located in the Botlek

area in the port of Rotterdam with a 85 hectare

site on which it produces differentiated chemicals.

Tebodin has supported with comprehensive

EPCm services in the construction of a MDI

Splitter unit(Keystone project) in 2013. The unit

is designed to handle globally sourced MDI

(methylene diphenyl diisocyanate) precursor.

Project Capstone will be commissioned in the

next months and provides a more efficient

manufacturing expansion within the existing

polyols facility.


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Wanhua to Increase Price of Wannate HMDI

Worldwide 2014/12/15

With effect from January 1st, 2015, or as

contracts allow, Wanhua will increase price of

Wannate HMDI by 10 percent worldwide.

Price increase is necessary due to the current

market situation, significantly higher raw

materials cost and rising cost of environment,

health and safety.

Wanhua-BorsodChem Sets Office in Brazil

2014/3/24

Wanhua-BorsodChem has opened a

representative office in Sao Paulo, Brazil, the

company said. It added that the office will be

headed by Susana Balada, General Manager who

joined BorsodChem in 2008.

Wanhua-BorsodChem said that the new

office helps to make its global network more

complete and demonstrates its commitment to

the South American region.

Wanhua claims to be the world’s largest MDI

producer and fastest growing marketer of

polyurethane materials . It acquired

BorsodChem in 2011. BorsodChem is the sole

isocyanate producer in Central Eastern Europe

and largest TDI producer in EMEA region, said

Wanhua-BorsodChem.

Wanhua owns intellectual property rights,

leading global technology and the most

integrated isocyanate manufacturing complex in

the world today with significant influence on the

worldwide PU market.

Arkema Opens New Development and

Application Laboratory in Brazil 2014/4/28

Arkema has opened a new development and

application laboratory at its Araçariguama plant

in Sao Paulo, Brazil, dedicated to the Arkema

Coating Resins and Coatex businesses. Arkema

Coating Resins is a business unit of Arkema;

Coatex is a subsidiary of Arkema Group.

The new facility will focus on innovation and

technical customer support across several

market segments, including coatings, adhesives,

construction, textiles, mineral processing, paper

and graphic arts. More than 150 agents,

authorities, suppliers and partners were invited

to attend an opening ceremony at the new

facility on April 23, 2014.

Arkema has invested approximately $2.5

million to construct and equip the new lab, which

opened on April 23. Tests performed at the

facility will include methods crucial to customer

applications, including: chromatography, glass

transition temperature, metal finishing

technology (MFT), rheometer – RheoStress 6000,

CEM – Smart 5, scrub resistance, washability,

peel, shear, tack, elongation, traction and

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19 / 27


particle size.

Brief Analysis of Influence of US MDI Force

Majeure on Global Market 2014/9/19

PUdaily, Shanghai-On September 9, due to a

critical raw materials curtailment, Bayer

MaterialScience was enforced to declare Force

Majeure on all the MDI products, with immediate

effective. The affected production is at the

Baytown, Texas plant.

Meanwhile, BASF also declared Force

Majeure for all MDI products in the plant of

Louisiana due to unforeseen circumstances

beyond the control, effective from September 9,

2014.

BASF and Bayer are two major MDI

producers in US, with a total capacity of 560 kt

per year, taking up almost half of total capacity

in US. The force majeure occurring at the same

time has already exerted an immediate influence

in US MDI supply.

"Since Sep. 9, we received many emails and

calls from our customers in US, asking about

current MDI market in China." said PUdaily MDI

Market analyst.

She added, "Insiders from other regions also

pay a close attention to this event but compared

with US customers, their response is relatively

calm."

A MDI distributor based in Dubai thinks, "As

for the forced majeure in US, for sure it will be a

good news to the global market. But one thing

should be considered that US market is always

an independent market from other regions, like

Euro and Far East. So we cannot expect too

much influence to other regions, except North/

South America market." Another trader in Euro

also shares the same idea. However, its influence to Asian market, as

one of the major export destinations for US MDI,

is expected to gradually appear if the force

majeure lasts for a long time.

According to PUdaily, in 2013, US exported

around 33,000 tons of polymeric MDI to China

and about 18,000 tons to South Korea.

Meanwhile, US also imported around 49,000

tons from China. Along with shrinking MDI

supply in US, its export to China is likely to

decrease accordingly. Besides, MDI exporters in

China may also increase exports to US, which

should be a good chance for China market.

However, whether the increase in exports can

stimulate China market or not still remains to be

seen.

Another senior MDI analyst from

Chem366.com, a Chinese platform for PU market

said, "If the force majeure lasts for more than a

month, it’s undoubtedly a good news for the

market. On the one hand, Wanhua, the leading

MDI exporter in China, may increase exports to

US. On the other hand, the oversupply pressure

in China market is thusly relieved. However,

considering of commercial operation of

Wanhua’s new 600 kt MDI facility in Yantai by

end of Sep. and maintenance accomplish of

Japan NPU 200 kt MDI plant in early Oct., the

whole balance of supply and demand would have

no much change. Anyway, we don’t rule out the

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20 / 27


possibility of market hyping based on shortage

supply of some brands."

Bayer MaterialScience has lifted force

majeure on MDI in US, starting from Oct. 17,

2014 while BASF lifts MDI force majeure in US,

effective November 21, 2014.

Bayer MaterialScience Acquires DuPont's Aniline

Production Facility in Baytown 2014/3/5

Bayer MaterialScience LLC announced

Monday it has acquired DuPont's aniline

production facility in Baytown, Texas.

Aniline is a primary feedstock used to

manufacture methylene diphenly diisocyanate

(MDI), a chemical used to produce rigid

polyurethane foams for insulation in the

construction industry. The chemical is also used

to manufacture coatings, adhesives, sealants,

elastomers and binders.

"North America is poised for strong MDI

growth driven by recovery in the construction

market, energy code advancement and home

comfort trends,” Craig Caputo, vice president,

polyurethanes regional product manager, for

Bayer MaterialScience said in a statement. “This

strategic acquisition positions Bayer to meet this

growing demand while further strengthening our

leadership in the polyurethane industry.”

Bayer Materials Science, which has its North

American headquarters in Robinson, said the

aniline facility is located within Bayer's Baytown

plant, the company's largest U.S. manufacturing

facility. Since 2011, Bayer has invested roughly

$120 million in process, reliability and

environmental improvements at the plant.

Financial terms of the deal were not

disclosed.

China’s Anti-Dumping against TDI from Japan,

South Korea and US Terminated Effective from

Nov. 21, 2014 2014/11/20

PUdaily, Shanghai-On November 20, 2014,

the Ministry of Commerce of the People's

Republic of China (hereinafter referred to as the

"Ministry of Commerce") issued Announcement

No.73 of 2014, announcing that the

anti-dumping duties against imports of toluene

diisocyanate (TDI 80/20) originated in Japan,

South Korea and US will be terminated, effective

from November 21, 2014.

On November 20, 2009, Ministry of

Commerce issued Announcement No.92 of 2009,

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21 / 27


deciding to continue to impose aforesaid

anti-dumping measures; such anti-dumping

measures were extended for five years as of

November 21, 2009 and will expire on November

20, 2014.

On May 30, 2014, Ministry of Commerce

issued Announcement No.31 of 2014, saying

that the anti-dumping measures will expire on

November 20, 2014 and as of the issuance of the

Announcement, any natural person, legal person

or relevant organization in or on behalf of the

domestic industry may, at least 60 days prior to

the expiration of such anti-dumping measures,

apply for expiry review in written form to the

Ministry of Commerce.

During the period, no apply for expiry review

was put forward by domestic TDI manufacturers

nor the Ministry of Commerce actively initiated

such expiry review. In view of this, Ministry of

Commerce announced that the aforesaid

anti-dumping measures will be terminated,

effective from November 21, 2014.

Honeywell Resins and Chemicals to Increase

Production Capacity at Virginia Plant 2014/5/5

Honeywell Resins and Chemicals will ramp

up production capabilities at its facility in

Chesterfield, Virginia, with a new production line,

which will allow it to cater to the demand for

high-grade nylon polymers.

The expanded facility will produce both nylon

6 and copolymer nylon 6/6.6 resins, and will

have a capacity of 40,000t per annum (tpa).

Expected to commence production in the

fourth quarter of 2015, the new line will increase

capacity at the facility to 200,000tpa

Sold under the Aegis brand, Honeywell's

resins are used in various applications, such as

fibres and filaments for carpeting, fabrics, nets

and cords, as well as engineered plastic

components for automotive, consumer and

industrial applications, and films for food and

protective packaging.

Honeywell's Resins and Chemicals division

offers technology and customer-focused

application development services, and conducts

nylon-related R&D at technology centres in New

Jersey and Virginia, as well as in Shanghai,

China.

The unit provides caprolactam, ammonium

sulfate fertiliser and chemical intermediates,

including phenol, cyclohexanone and acetone.

INVISTA’s Latest TERRIN™ Polyol Offering

Completes TSCA Registration 2014/6/3

After introducing the TERRIN™ polyols brand

to the market in 2013, INVISTA recently

manufactured the first commercial batch of

TERRIN™ 170 polyol at its facility in Wilmington,

N.C., completing TSCA registration for the entire

TERRIN™ polyol family and placing it on the U.S.

Chemical Inventory. INVISTA continues its

commitment to sustainability and the

polyurethane industry by developing products

with recycled and renewable content.

The TERRIN™ product portfolio contains 100

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percent aliphatic polyester polyols that contain a

minimum of 50 percent recycled content—with

some containing renewable content, as well.

They can be used in lieu of or in combination with

conventional polyether or polyester polyols to

formulate a variety of polyurethane products.

TERRIN™ polyols are versatile materials that can

be used in applications ranging from viscoelastic

foam to spray coatings and adhesives to

elastomeric resins.

The TERRIN™ polyols team, as well as

INVISTA’s Terate® polyols and TERATHANE®

PTMEG teams, will be exhibiting at the Urethanes

Technology North America exhibition (booth 529)

June 4-5 at the Charlotte Convention Center in

North Carolina.

Japanese PP Compounder Expanding in US,

China; Targets Auto Sector 2014/11/14

Japan Polypropylene Corporation (JPP,

Tokyo; a joint venture of Mitsubishi Chemical

and JNC Corp.) has announced plans to expand

polypropylene (PP) compounding capacity in

North America and China in 2015. The new

capacity will supply automotive applications in

both markets.

Wholly-owned subsidiary Mytex Polymers

(Jeffersonville, IN,) will increase its capacity by

20,000 tonnes/year to reach 93,000 tonnes/year,

while Beijing Ju-Ling-Yan Co. Ltd, (55%-owned

by JPP) plans to raise capacity by 10,000

tonnes/year to reach 76,000 tonnes/year in

order to fulfill strong customer demand that is

currently seeing their respective plants run at full

rate. Further capacity expansions are planned

for 2016 at JPP's global compounding operations.

Furthermore, last February, the ownership of PP

compound and long glass fiber reinforced

PP-related companies operating outside Japan

was transferred from JPP's parent companies to

JPP itself in an initial step to transform the

company into a "One-Window Global Supplier" of

PP for automotive applications. The offshore

compounding facilities now under the control of

JPP include two in the US, three in China, and

one each in Thailand and India.

Tatsuo Suzuki, JPP Chief Executive states: "By

this integration, we are now ready to capture

global growth of automotive by utilizing JPP's

strong background of development and analysis

technology as well as bolstering laboratory

functions outside Japan. Capacity expansion is

one of our important decisions after the

integration. We will also maximize collaboration

with our parent companies."

Lanxess Launches New Compounding Plant in

Brazil Aimed at Auto Market 2014/4/14

Lanxess AG has officially opened its

auto-oriented thermoplastics compounding plant

in Porto Feliz, Brazil.

The Cologne, Germany, company said on

April 10 that the 20 million euro ($27.7 million)

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investment has initial annual capacity of 44

million pounds to compound nylon and

polybutylene terephthalate with additives and

glass fiber reinforcements in creating its

Durethan and Pocan brand materials. The

compounding operation will employ up to 50.

Lanxess first announced the project in

spring of 2013. Automotive is a fast growing

market in Brazil and Latin America, creating

demand for lightweight materials to replace

metals. Automakers also are promoting more

uniformity for components, opening up

opportunities for global suppliers in regional

markets.

Rising needs for high-performance plastics

has spurred Lanxess to expand capacity for the

polymers. A new nylon plant in Antwerp, Belgium,

underlines Lanxess’s focus on such plastics. The

new factory will have annual capacity of 200

million pounds when it starts up in the third

quarter of 2014.

Lanxess’s other operations in Porto Feliz

include rubber additives and components, and

inorganic pigments. The firm employs about

1,100 at seven sites in Brazil, which accounts for

about 9 percent of its global sales.

Lanxess’s performance polymers business

logged sales of 4.5 billion euros ($6.2 billion) in

2013. The polymers business is integrated with

other company units making glass fibers and

caprolactam monomer for nylon 6.

LyondellBasell to Build World Scale PO/TBA Plant

on U.S. Gulf Coast 2014/8/26

LyondellBasell (NYSE: LYB) announced plans

on Aug. 25 to build a world scale PO/TBA plant

on the U.S. Gulf Coast with an annual capacity of

900 million pounds of propylene oxide (PO) and 2

billion pounds of tertiary butyl alcohol (TBA) and

its derivatives. The preliminary timetable is to

have the plant operational in 2019. The project is

expected to generate up to 1,200 construction

jobs at its peak.

The plant is

expected to sell

PO in the global

marketplace to

meet growing

demand for

polyurethanes,

which are used primarily for the manufacture of

bedding, furniture, carpets and car seats. TBA

and its derivatives will be sold to meet the need

for high octane gasoline blending components as

well as for use in manufacturing synthetic rubber

and lubricant additives.

"While we have not finalized the exact

location of the plant, the abundant natural gas

liquids associated with shale gas make the U.S.

Gulf Coast an advantaged feedstock region,"

said Pat Quarles, LyondellBasell Senior Vice

President of Intermediates and Derivatives.

"This project combines our leading proprietary

PO/TBA technology with low cost feedstock and

demonstrates our continued commitment to

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capturing maximum advantage of market

opportunities."

LyondellBasell is one of the world's largest

plastics, chemical and refining companies. The

company manufactures products at 55 sites in

18 countries. LyondellBasell products and

technologies are used to make items that

improve the quality of life for people around the

world including packaging, electronics,

automotive parts, home furnishings,

construction materials and biofuels.

PPG to Invest $40 Million in Coatings Facility

Expansion in Brazil 2014/6/18

On June 17, PPG

Industries (NYSE:PPG)

announced an

investment of about

$40 million in its

coatings

manufacturing facility

located in Sumare, São Paulo, Brazil.

The expansion project will add a

65,000-square-foot plant for on-site resin

production. The resin will be used to

manufacture PPG’s electrocoat products to meet

growing demand among automotive original

equipment manufacturers (OEMs) and industrial

coatings customers in the region. PPG

anticipates completion of the project in 2015 and

expects to add more than 30 new positions at the

facility.

PolyOne Closing Two Plants in Brazil

2014/7/17

Materials maker PolyOne Corp. is closing

two of its four Brazilian plants in order to

streamline operations and improve its financial

performance in the region.

Avon Lake, Ohio-based PolyOne will close

plants in Diadema and Joinville, while continuing

to operate plants in Novo Hamburgo and Itupeva,

officials said in a July 15 news release.

The firm will see cash costs of about $5

million related to the closings and $12 million in

non-cash charges. In the release, President and

CEO Robert Patterson said that the asset

realignment will accelerate PolyOne’s specialty

strategy in Brazil. Officials added that PolyOne

will continue to invest in the Novo Hamburgo and

Itupeva sites.

PolyOne ranks as North America’s largest

compounder and concentrate maker and as one

of the region’s largest resin distributors. The firm

posted sales of $3.8 billion in 2013.

Royal Adhesives & Sealants Acquires Chemque

2014/9/4

Royal Adhesives & Sealants LLC (Royal) a

portfolio company of Arsenal Capital Partners

(Arsenal) announced that its subsidiary Royal

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Adhesives & Sealants Canada LTD will acquire

substantially all of the assets of Chemque.

Chemque, based in Toronto Canada, is a

major supplier of polyurethane foams and

adhesives to the telecom, flooring and

construction markets. This acquisition builds on

Royal's strong platform of leading adhesive,

sealant and coating solutions.

Since its acquisition by Arsenal, Royal has

grown organically and via acquisition. This is the

company's seventh add-on acquisition since

2010.

US PU Foam Market to Reach $7.2bn in 2017

2014/1/14

The US

polyurethane

foam market is

forecast to climb

at 5% annually to

reach a value of

$7.2bn (EUR

5.3bn) in 2017,

according to a latest study.

Polyurethane foam constitutes roughly half

of the US foam plastics market, which Freedonia

said will be worth $14.1bn in 2017 - a fifth bigger

than its value of $11.6bn in 2002.

The figure represents a significant

turnaround from the declines posted over the

2007-2012 period, said the report.

Boosts to the construction industry will

create greater demand for rigid polyurethane,

one of the most effective insulation materials

available for roof and wall insulation, insulated

windows and doors and air barrier sealants.

However, according to researchers, those

construction market gains will be threatened by

competition from fibreglass and foamed

polystyrene.

The focus on new housing will boost smaller

volume markets for rigid polyurethane foams

which include household products – both for

appliance insulation and furniture – packaging

and motor vehicles. Meanwhile, opportunities

will arise in bedding based on the expanding

consumer awareness of memory foam

mattresses as well as related products such as

mattress toppers and pillows.

According to the study, growth in the carpet

underlay segment will stem from construction

industry growth, particularly in the residential

sector as well as the increased use of higher-end

frothed polyurethane products.

Increased motor vehicle output also bodes

well for polyurethane seat cushioning although

gains will be tempered by the use of lighter,

thinner foam products and the popularity of

smaller, more fuel-efficient vehicles, which have

lower foam requirements than larger vehicles,

according to the report.

It predicts that packaging will remain the

leading outlet for plastic foam. The packaging

sector is less cyclical than others because of the

significance of nondurable goods such as food

however, the market is mature and will post

steady but below average advances through the

forecast period, the report said.

Gains will be constrained by ongoing

environmental concerns over the disposal of

packaging foams, which have resulted in the

establishment of bans against foam foodservice

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containers in some areas, the report said.

Nevertheless, demand will continue to be

supported by the cost and performance

advantages of plastic foams over alternative

materials and by opportunities for foam used to

protect delicate items.

Visteon Completes Acquisition of Electronics

Business of Johnson Controls 2014-07-01

Visteon Corporation (NYSE: VC) today

announced that it has completed the acquisition

of the automotive electronics business of

Johnson Controls (NYSE: JCI), creating one of

the world's three largest suppliers of vehicle

cockpit electronics. The two companies

announced plans for the $265 million cash

transaction on Jan. 13.

The acquisition will enhance Visteon's

competitive position in the fast-growing vehicle

cockpit electronics segment by strengthening its

global scale, manufacturing and engineering

footprint, product portfolio and customer

penetration. The combined global electronics

enterprise has more than $3 billion in annual

revenue, with a No. 2 global position in driver

information and above-average growth rates for

the cockpit electronics segment, supplying nine

of the world's 10 largest vehicle manufacturers.

The business acquired Johnson Controls

provides automakers with driver information,

infotainment, connectivity and body electronics

products. The transaction involves about 5,000

employees, including approximately 1,000

engineers, electronics specialists and designers

in Europe, Asia and North America. Visteon's new

electronics business has 24 manufacturing

locations, eight global technical centers and

about 10,500 employees worldwide.

In the fiscal year ended Sept. 30, 2013, the

business acquired by Visteon generated

approximately $1.3 billion in revenue and

about$58 million in EBITDA (earnings before

interest, taxes, depreciation and amortization).

This EBITDA includes a deduction of

approximately $12 million for corporate

allocations that will not transfer with the

transaction. The transaction offers opportunities

for long-term margin expansion through

economies of scale, with estimated annual cost

synergies reaching more than $40 million by

2017.

Advising Visteon on the transaction were

Rothschild Inc. and Skadden, Arps, Slate,

Meagher & Flom LLP.

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