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AkzoNobel adds capacity for expandable microspheres; reaches truce with activist investor
STRATEGIES
and operate a masterbatch production plant in Russia’s Kaluga Oblast region. The 27 000 m2 site is to be located at the Vorino Industrial Park, which lies some 90 km southwest of Moscow. The facility will be constructed in four phases; the first phase is scheduled for completion by the end of 2018 and will have a capacity of 2000 tonnes/ year, the company reports. Gabriel-Chemie will invest around 260 million roubles (E3.7 million) in the first stage of the project, which will include relocation from the company’s existing Dorokhovo production site near Moscow. Production capacity at the new facility will rise to 20 000 tonnes/year when all four phases are complete, it says. The company has been producing masterbatch in Russia since 2007 [ADPO, May 2007] and has experienced growing demand for its products in the country, and in neighbouring Azerbaijan, Kazakhstan and Belarus, it says. The expansion of capacity in Russia is in response to this demand growth, Gabriel-Chemie reports. Speaking at the agreement signing event, CFO Andreas Berger revealed that Russian customers are highly appreciative of the company’s expertise in colour masterbatch. He also noted increasing interest in functional additives such as flame retardants, infrared absorbers and laser additives. In other news, the company’s British subsidiary GabrielChemie UK is now offering a laser marking sampling service for plastics manufacturers at its facility in Paddock Wood. A TruMark laser marking station has been installed in the facility’s laboratory, allowing it to provide fast and flexible on-site laser marking trials and tests to customers ‘until the best quality marking has been achieved’. Various services can now be offered, from simple demonstration plaques through to working one to one with customers on-site for product prototyping and development, says Karen O’Dwyer, the company’s head of UK Colour Center & Service. Gabriel-Chemie has been providing laser marking additives and combi-masterbatches for more than 20 years. It says that there has been a marked growth in demand for high-quality and high-contrast laser marking applications in segments such as animal eartags, security seals, medical devices, food & beverage packaging, wire & cable, automotive, and personalized consumer goods. Compared to alternative printing and marking options, laser marking offers a number of advantages, being fast, non-contact, permanent, abrasion resistant and digitally driven, the company comments. More information: www.gabriel-chemie.com
October 2017
AkzoNobel adds capacity for expandable microspheres; reaches truce with activist investor
T
he Specialty Chemicals business of AkzoNobel is increasing production capacity for its Expancel product line of expandable microspheres. In order to meet growing demand, the company is investing in excess of E20 million to expand its Stockvik facility near Sundsvall in Sweden. The additional capacity is expected to be available by the end of 2018. Expancel microspheres comprise a thermoplastic shell encapsulating a gas. On heating, the shell softens and the spheres expand markedly by up to 60 times in volume, which makes them ideal for a variety of uses, such as lightweight fillers or insulating materials, the company says. According to AkzoNobel, the products are considered essential ingredients in many consumer goods, industrial and construction applications. They are also used in several important growth markets including the paints and automotive industries, and the number of applications for the microspheres continues to grow, particularly in products such as vehicles and wind turbines where weight is critical. As a result, the company is seeing ‘a strong increase in demand’ for the products, and the expansion will ensure that it is able to serve its customers globally, says AkzoNobel’s director of Expancel Sylvia Winkel. The company says that the ‘strategic investment’ will also strengthen its leading position in this market. Expancel capacity at Stockvik was last increased in 2012 [ADPO, June 2011]. Elsewhere, the company reached a truce in mid-August with affiliates of activist investor Elliott Advisors (UK) following constructive dialogue. Earlier in the year Elliott had attempted to force AkzoNobel into talks with PPG Industries concerning the latter company’s unsolicited takeover bid [ibid., June 2017]. The agreement included alignment on AkzoNobel’s strategy to spin off its Specialty Chemicals unit into a separate business, as well as mutual suspension of on-going litigation for a minimum of three months. In addition, Elliott agreed to support the appointment of Thierry Vanlancker to AkzoNobel’s board of management together with nominations of new members to its supervisory board. Vanlancker became CEO of the Dutch company in July after Ton Büchner was forced to step down due to ill health. Werner Fuhrmann has been appointed to fill Vanlancker’s previous role as head of Specialty Chemicals at Akzo Nobel.
Additives for Polymers
5
STRATEGIES
For the first half of 2017, the company’s revenue increased by 4% year on year to E7.45 billion, with volumes up 2%. EBIT increased 1% to E837 million while net income attributable to its shareholders fell 2% to E541 million. AkzoNobel’s Specialty Chemicals business posted a 6% rise in six-monthly revenue to E2.55 billion and a 3% increase in EBIT to E355 million in 1H 2017. More information: www.akzonobel.com or expancel.akzonobel.com/
Fumed silica expansions underway at Cabot and Evonik
I
n China, Cabot Corp and joint venture (JV) partner Inner Mongolia Hengyecheng Silicone (HYC) have started construction of a new fumed silica manufacturing plant in Wuhai. Meanwhile, Evonik has announced that it is expanding fumed silica capacities at its production site in Antwerp, Belgium. In both cases, the new facilities are currently scheduled to become operational during 2019. The Cabot/HYC project was announced in September 2016 with the formation of the JV, which is investing about US$60 million to build a ‘world-class’ production facility with a capacity of 8000 tonnes/year [see also ADPO, February 2017]. Cabot will own an 80% share in the facility and bring its latest technological advances in plant design and operations to the project, while HYC will provide a reliable and long-term feedstock source, the partners say. Initially scheduled for early 2017, ground-breaking for the Wuhai plant took place in June, although completion of the construction project is still expected in 2019. According to Cabot, the new capacity is intended primarily to meet growing market demand in China. The company reports that its Cab-O-Sil® fumed silica is used in a variety of applications, including silicone elastomers and composites used in growth markets such as construction, automotive and renewable energy. ‘Our new facility will allow us to better serve our customers in parts of China where we expect to see significant growth and development in the coming years. At the same time, it will enable us to strengthen our overall production capacity to keep pace with growing global demand’, explains Nick Cross, president of Cabot’s Performance Chemicals segment. Cabot has operated in China for near-
6
Additives for Polymers
ly 30 years. The new Wuhai plant extends its manufacturing footprint in the country alongside its existing production sites in Shanghai, Xingtai, Jiangxi and Tianjin. Evonik’s Antwerp expansion involves an investment in the upper double-digit million euro range. The additional capacity has not yet been disclosed; however, the company reports that, as a result of the planned expansion, it will in future be able to supply its customers with hydrophobic fumed silica products from Antwerp in addition to the current hydrophilic grades, both of which are marketed under the Aerosil brand name. Furthermore, modernization of the silane capacity at the site is intended to secure the raw material supply for the fumed silica production as well as for silanes used in tyre production, Evonik reports. Aerosil is generated as fumed silica from the high-temperature hydrolysis of silanes in a hydrogen flame, it explains. The company expects the new facilities at Antwerp to become operational in the summer of 2019. According to Evonik, its Aerosil products provide reinforcement of silicone elastomers, optimum adjustment of rheology during processing, excellent insulation properties, even at high temperatures, and high chemical purity, among other benefits. Typical applications for the fumed silica grades include coatings and paints, modern adhesive systems and transparent silicones, as well as non-flammable, high-performance insulation materials. The company reports that the global market for fumed silica shows growth rates greater than 4%, with applications in speciality silicones, adhesives for wind turbines and non-flammable, high-performance insulation posting ‘above-average development’. [NB: A recent market study from MarketsandMarkets (www. marketsandmarkets.com) forecasts that the global fumed silica market will grow at a compound annual growth rate of 7.1% between 2017 and 2022.] The Antwerp investment is ‘a good fit’ for the company’s strategy to ‘concentrate more on distinct speciality chemicals businesses’ and gradually create a morebalanced portfolio, comments Evonik’s CEO Christian Kullmann. ‘With this investment in the silica business, which has low cyclicality, we are consistently following our growth course and solidifying our position as a leading global provider’, he adds. Alongside Evonik and Cabot, the major players in the global fumed silica market are Wacker Chemie, Tokuyama, Cargill, China National Bluestar, Applied Material Solutions, Chifeng Shengsen Silicon Technology Development, Kemitura and Orisil.
October 2017
and operate a masterbatch production plant in Russia’s Kaluga Oblast region. The 27 000 m2 site is to be located at the Vorino Industrial Park, which lies some 90 km southwest of Moscow. The facility will be constructed in four phases; the first phase is scheduled for completion by the end of 2018 and will have a capacity of 2000 tonnes/ year, the company reports. Gabriel-Chemie will invest around 260 million roubles (E3.7 million) in the first stage of the project, which will include relocation from the company’s existing Dorokhovo production site near Moscow. Production capacity at the new facility will rise to 20 000 tonnes/year when all four phases are complete, it says. The company has been producing masterbatch in Russia since 2007 [ADPO, May 2007] and has experienced growing demand for its products in the country, and in neighbouring Azerbaijan, Kazakhstan and Belarus, it says. The expansion of capacity in Russia is in response to this demand growth, Gabriel-Chemie reports. Speaking at the agreement signing event, CFO Andreas Berger revealed that Russian customers are highly appreciative of the company’s expertise in colour masterbatch. He also noted increasing interest in functional additives such as flame retardants, infrared absorbers and laser additives. In other news, the company’s British subsidiary GabrielChemie UK is now offering a laser marking sampling service for plastics manufacturers at its facility in Paddock Wood. A TruMark laser marking station has been installed in the facility’s laboratory, allowing it to provide fast and flexible on-site laser marking trials and tests to customers ‘until the best quality marking has been achieved’. Various services can now be offered, from simple demonstration plaques through to working one to one with customers on-site for product prototyping and development, says Karen O’Dwyer, the company’s head of UK Colour Center & Service. Gabriel-Chemie has been providing laser marking additives and combi-masterbatches for more than 20 years. It says that there has been a marked growth in demand for high-quality and high-contrast laser marking applications in segments such as animal eartags, security seals, medical devices, food & beverage packaging, wire & cable, automotive, and personalized consumer goods. Compared to alternative printing and marking options, laser marking offers a number of advantages, being fast, non-contact, permanent, abrasion resistant and digitally driven, the company comments. More information: www.gabriel-chemie.com
October 2017
AkzoNobel adds capacity for expandable microspheres; reaches truce with activist investor
T
he Specialty Chemicals business of AkzoNobel is increasing production capacity for its Expancel product line of expandable microspheres. In order to meet growing demand, the company is investing in excess of E20 million to expand its Stockvik facility near Sundsvall in Sweden. The additional capacity is expected to be available by the end of 2018. Expancel microspheres comprise a thermoplastic shell encapsulating a gas. On heating, the shell softens and the spheres expand markedly by up to 60 times in volume, which makes them ideal for a variety of uses, such as lightweight fillers or insulating materials, the company says. According to AkzoNobel, the products are considered essential ingredients in many consumer goods, industrial and construction applications. They are also used in several important growth markets including the paints and automotive industries, and the number of applications for the microspheres continues to grow, particularly in products such as vehicles and wind turbines where weight is critical. As a result, the company is seeing ‘a strong increase in demand’ for the products, and the expansion will ensure that it is able to serve its customers globally, says AkzoNobel’s director of Expancel Sylvia Winkel. The company says that the ‘strategic investment’ will also strengthen its leading position in this market. Expancel capacity at Stockvik was last increased in 2012 [ADPO, June 2011]. Elsewhere, the company reached a truce in mid-August with affiliates of activist investor Elliott Advisors (UK) following constructive dialogue. Earlier in the year Elliott had attempted to force AkzoNobel into talks with PPG Industries concerning the latter company’s unsolicited takeover bid [ibid., June 2017]. The agreement included alignment on AkzoNobel’s strategy to spin off its Specialty Chemicals unit into a separate business, as well as mutual suspension of on-going litigation for a minimum of three months. In addition, Elliott agreed to support the appointment of Thierry Vanlancker to AkzoNobel’s board of management together with nominations of new members to its supervisory board. Vanlancker became CEO of the Dutch company in July after Ton Büchner was forced to step down due to ill health. Werner Fuhrmann has been appointed to fill Vanlancker’s previous role as head of Specialty Chemicals at Akzo Nobel.
Additives for Polymers
5
STRATEGIES
For the first half of 2017, the company’s revenue increased by 4% year on year to E7.45 billion, with volumes up 2%. EBIT increased 1% to E837 million while net income attributable to its shareholders fell 2% to E541 million. AkzoNobel’s Specialty Chemicals business posted a 6% rise in six-monthly revenue to E2.55 billion and a 3% increase in EBIT to E355 million in 1H 2017. More information: www.akzonobel.com or expancel.akzonobel.com/
Fumed silica expansions underway at Cabot and Evonik
I
n China, Cabot Corp and joint venture (JV) partner Inner Mongolia Hengyecheng Silicone (HYC) have started construction of a new fumed silica manufacturing plant in Wuhai. Meanwhile, Evonik has announced that it is expanding fumed silica capacities at its production site in Antwerp, Belgium. In both cases, the new facilities are currently scheduled to become operational during 2019. The Cabot/HYC project was announced in September 2016 with the formation of the JV, which is investing about US$60 million to build a ‘world-class’ production facility with a capacity of 8000 tonnes/year [see also ADPO, February 2017]. Cabot will own an 80% share in the facility and bring its latest technological advances in plant design and operations to the project, while HYC will provide a reliable and long-term feedstock source, the partners say. Initially scheduled for early 2017, ground-breaking for the Wuhai plant took place in June, although completion of the construction project is still expected in 2019. According to Cabot, the new capacity is intended primarily to meet growing market demand in China. The company reports that its Cab-O-Sil® fumed silica is used in a variety of applications, including silicone elastomers and composites used in growth markets such as construction, automotive and renewable energy. ‘Our new facility will allow us to better serve our customers in parts of China where we expect to see significant growth and development in the coming years. At the same time, it will enable us to strengthen our overall production capacity to keep pace with growing global demand’, explains Nick Cross, president of Cabot’s Performance Chemicals segment. Cabot has operated in China for near-
6
Additives for Polymers
ly 30 years. The new Wuhai plant extends its manufacturing footprint in the country alongside its existing production sites in Shanghai, Xingtai, Jiangxi and Tianjin. Evonik’s Antwerp expansion involves an investment in the upper double-digit million euro range. The additional capacity has not yet been disclosed; however, the company reports that, as a result of the planned expansion, it will in future be able to supply its customers with hydrophobic fumed silica products from Antwerp in addition to the current hydrophilic grades, both of which are marketed under the Aerosil brand name. Furthermore, modernization of the silane capacity at the site is intended to secure the raw material supply for the fumed silica production as well as for silanes used in tyre production, Evonik reports. Aerosil is generated as fumed silica from the high-temperature hydrolysis of silanes in a hydrogen flame, it explains. The company expects the new facilities at Antwerp to become operational in the summer of 2019. According to Evonik, its Aerosil products provide reinforcement of silicone elastomers, optimum adjustment of rheology during processing, excellent insulation properties, even at high temperatures, and high chemical purity, among other benefits. Typical applications for the fumed silica grades include coatings and paints, modern adhesive systems and transparent silicones, as well as non-flammable, high-performance insulation materials. The company reports that the global market for fumed silica shows growth rates greater than 4%, with applications in speciality silicones, adhesives for wind turbines and non-flammable, high-performance insulation posting ‘above-average development’. [NB: A recent market study from MarketsandMarkets (www. marketsandmarkets.com) forecasts that the global fumed silica market will grow at a compound annual growth rate of 7.1% between 2017 and 2022.] The Antwerp investment is ‘a good fit’ for the company’s strategy to ‘concentrate more on distinct speciality chemicals businesses’ and gradually create a morebalanced portfolio, comments Evonik’s CEO Christian Kullmann. ‘With this investment in the silica business, which has low cyclicality, we are consistently following our growth course and solidifying our position as a leading global provider’, he adds. Alongside Evonik and Cabot, the major players in the global fumed silica market are Wacker Chemie, Tokuyama, Cargill, China National Bluestar, Applied Material Solutions, Chifeng Shengsen Silicon Technology Development, Kemitura and Orisil.
October 2017