- Email: [email protected]
Baerlocher increases Malaysian stearate capacity, opens Russian office
STRATEGIES
GmbH, a Frankfurt, Germany-based supplier of chemicals for the rubber, plastics, polyurethane and adhesives industries. Albemarle alleges that the German firm has infringed its intellectual property, specifically its German patent DE 69105046 of European Patent No. 0460922, which protects the company’s process for producing Saytex 8010. The suit asserts that Isochem has violated Albemarle’s patent ‘by importing into and offering for sale in Germany flame retardant products that were produced using the patented process’. Under German law, it is illegal to import into, to offer for sale or to use within Germany products that are produced by a process that is protected by a German patent. Albemarle’s lawyers are confident that the German courts will uphold the validity and enforceability of this patent. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com
New flame retardant, polymer firm launched in USA
A
company has been established in the USA to commercialize a new family of polyphosphonate homopolymers and polyphosphonate–polycarbonate block copolymers that offer excellent flame-retardant properties. FRX Polymers LLLP aims to find initial markets for its products as polymeric flameretardant additives for plastics and as nonburning speciality polymers.
Headquartered in Chelmsford, MA, where it conducts its research and operates both polymer and monomer pilot facilities, FRX Polymers is headed by founding CEO Marc Lebel. The company is a limited partnership, 50% owned by KPP Investments, an investment company with headquarters in Tel Aviv, Israel, and 50% owned by Triton Systems Inc, a private Massachusetts-based R&D company specializing in advanced materials. FRX Polymers is in the process of forming joint development agreements with major polymer and flameretardant additive producers, which it expects will lead to manufacturing and marketing licences. It recently started up a new pilot plant and will use this capacity to seed its growing group of development partners.
November 2007
FRX’s products are non-halogenated, phosphorusbased polymers and have the highest limiting oxygen index (LOI) of all commercial thermoplastics, the firm says. In addition to their excellent flame retardancy, they are transparent and have a very high melt flow rate. As a result of their polymeric nature, they also will not migrate out of the host plastic when used as additives, FRX says. Tests also show that improved mechanical properties – such as heat distortion temperature – can result in certain polymer systems. Although much research has been carried out on polyphosphonates over the past 50 years, FRX Polymers is the first company to commercialize them, Lebel explains. The firm has developed a cost-effective manufacturing route and, through intensive research over the past four years, has dramatically improved the properties of these polymers, he says. The firm has also developed the synthesis process for one of the key phosphoruscontaining monomers, and intends to form a venture to supply this monomer to its polymer licensees. Lebel is confident that the polymers ‘will find applications in the US$15 billion flame retardant plastics market’. Contact: FRX Polymers, LLLP, 200 Turnpike Road, Chelmsford, MA 01824, USA. Tel: +1 978 244 9500, Web: www.frxpolymers.com
Baerlocher increases Malaysian stearate capacity, opens Russian office
I
n response to rapidly growing demand in South-east Asia and the Middle East, German company Baerlocher is investing in a new production unit for vegetable-based calcium and zinc stearates at its Seremban site in Malaysia. Commercial production from the new 5000 tons/ year capacity line will start in mid 2008.
The new state-of-the-art production unit at Seremban will ensure the availability of high-quality metallic stearates in the Far and Middle East, strengthening the company’s position in Asia and allowing better support of customers in the region, it says. The plant will include production of granular
Additives for Polymers
5
STRATEGIES
stearates, which allow customers to optimize their processes and plant hygiene, and support the production of stearates tailored to the individual needs of customers. According to Andreas Holzner, Baerlocher’s director of special additives, the new unit will also enable the firm to supply multinational customers with products of the same high quality as those produced at its other global supply points. The investment also supports the growing demand for vegetable-based products fulfilling the need for sustainable solutions, Holzner says. Calcium and zinc stearates are widely used as acid scavengers and lubricants in the polymerization and processing of polyolefins. They are also used as lubricants for polystyrene and polyamides as well as acid scavengers, stabilizers and lubricants for PVC processing. In addition, they find application as mould release agents in the rubber and pharmaceutical industries. Baerlocher has also recently announced plans to establish a representative office in Moscow to secure and strengthen its market position in Russia and neighbouring countries. The company anticipates ‘very promising future prospects’ for the region’s plastics industry, with double-digit growth rates expected. The office will be managed by Mikhail Schekin, who will act as a direct interface between Baerlocher and its customers in the Russian plastics industry as well as supporting existing sales agents. Headquartered in Munich-Unterschleissheim, Germany, Baerlocher operates 13 production sites worldwide, employs about 1200 and has a sales network covering more than 40 countries. Contact: Baerlocher GmbH, Munich, Germany. Tel: +49 89 14 37 30, Web: www.baerlocher.com
Tronox retains Uerdingen plant, announces further cost reductions…
O
klahoma-based Tronox Inc, the world’s third-largest producer of titanium dioxide (TiO2) pigment, has decided to retain its
6
Additives for Polymers
Uerdingen, Germany, TiO2 plant after full evaluation of the strategic options for this asset. The business and financial market assessments did not accurately reflect the ‘long-term value of this world-class facility’, the company says.
As the only sulphate-process TiO2 facility within its portfolio, Tronox had considered selling the 107 000 tonnes/year capacity plant in order to focus resources on growing its chloride-process business [ADPO, July 2007]. However, it has now decided that Uerdingen will provide better long-term value for its shareholders if it remains part of its portfolio. The current strong European economic conditions, the company’s recent investments in the facility and its strategic plans for the future were contributory factors in the decision, says Tom Adams, Tronox chairman and CEO. ‘To maximize its value, we will continue to focus on our strategy to drive costs out of the business through improvements in our operations and processes’, he says. While maintaining the core coatings and plastics business, Adams says that Tronox will improve margins by increasing its participation in speciality product markets, many of which favour the high-quality, high-purity sulphate-process pigments produced by the Uerdingen plant. The company has also increased its Project Cornerstone initiative by US$25 million in annual pre-tax cash cost reductions; approximately $18 million of the additional savings will be achieved through operating cost reductions and the remainder through new selling, general and administrative (SG&A) cost reductions. Tronox expects to reach its original Cornerstone cash cost reduction target of $60 million (pre-tax) by the end of 2008 as projected, with the additional $25 million in savings to be achieved during the 2007 through 2009 timeframe. One of the cost-saving measures being implemented is a workforce reduction of about 7% with more than half of these positions already vacated. As part of this process, Tronox has recently eliminated the position of chief operating officer, with the result that Marty Rowland left the company in August. The company has also announced a reduction in its contribution to retirees’ medical and life insurance effective 1 April 2009. Tronox reported a net loss for 2Q 2007 of $21.2 million, compared with a net loss of $14.4 million for
November 2007
GmbH, a Frankfurt, Germany-based supplier of chemicals for the rubber, plastics, polyurethane and adhesives industries. Albemarle alleges that the German firm has infringed its intellectual property, specifically its German patent DE 69105046 of European Patent No. 0460922, which protects the company’s process for producing Saytex 8010. The suit asserts that Isochem has violated Albemarle’s patent ‘by importing into and offering for sale in Germany flame retardant products that were produced using the patented process’. Under German law, it is illegal to import into, to offer for sale or to use within Germany products that are produced by a process that is protected by a German patent. Albemarle’s lawyers are confident that the German courts will uphold the validity and enforceability of this patent. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com
New flame retardant, polymer firm launched in USA
A
company has been established in the USA to commercialize a new family of polyphosphonate homopolymers and polyphosphonate–polycarbonate block copolymers that offer excellent flame-retardant properties. FRX Polymers LLLP aims to find initial markets for its products as polymeric flameretardant additives for plastics and as nonburning speciality polymers.
Headquartered in Chelmsford, MA, where it conducts its research and operates both polymer and monomer pilot facilities, FRX Polymers is headed by founding CEO Marc Lebel. The company is a limited partnership, 50% owned by KPP Investments, an investment company with headquarters in Tel Aviv, Israel, and 50% owned by Triton Systems Inc, a private Massachusetts-based R&D company specializing in advanced materials. FRX Polymers is in the process of forming joint development agreements with major polymer and flameretardant additive producers, which it expects will lead to manufacturing and marketing licences. It recently started up a new pilot plant and will use this capacity to seed its growing group of development partners.
November 2007
FRX’s products are non-halogenated, phosphorusbased polymers and have the highest limiting oxygen index (LOI) of all commercial thermoplastics, the firm says. In addition to their excellent flame retardancy, they are transparent and have a very high melt flow rate. As a result of their polymeric nature, they also will not migrate out of the host plastic when used as additives, FRX says. Tests also show that improved mechanical properties – such as heat distortion temperature – can result in certain polymer systems. Although much research has been carried out on polyphosphonates over the past 50 years, FRX Polymers is the first company to commercialize them, Lebel explains. The firm has developed a cost-effective manufacturing route and, through intensive research over the past four years, has dramatically improved the properties of these polymers, he says. The firm has also developed the synthesis process for one of the key phosphoruscontaining monomers, and intends to form a venture to supply this monomer to its polymer licensees. Lebel is confident that the polymers ‘will find applications in the US$15 billion flame retardant plastics market’. Contact: FRX Polymers, LLLP, 200 Turnpike Road, Chelmsford, MA 01824, USA. Tel: +1 978 244 9500, Web: www.frxpolymers.com
Baerlocher increases Malaysian stearate capacity, opens Russian office
I
n response to rapidly growing demand in South-east Asia and the Middle East, German company Baerlocher is investing in a new production unit for vegetable-based calcium and zinc stearates at its Seremban site in Malaysia. Commercial production from the new 5000 tons/ year capacity line will start in mid 2008.
The new state-of-the-art production unit at Seremban will ensure the availability of high-quality metallic stearates in the Far and Middle East, strengthening the company’s position in Asia and allowing better support of customers in the region, it says. The plant will include production of granular
Additives for Polymers
5
STRATEGIES
stearates, which allow customers to optimize their processes and plant hygiene, and support the production of stearates tailored to the individual needs of customers. According to Andreas Holzner, Baerlocher’s director of special additives, the new unit will also enable the firm to supply multinational customers with products of the same high quality as those produced at its other global supply points. The investment also supports the growing demand for vegetable-based products fulfilling the need for sustainable solutions, Holzner says. Calcium and zinc stearates are widely used as acid scavengers and lubricants in the polymerization and processing of polyolefins. They are also used as lubricants for polystyrene and polyamides as well as acid scavengers, stabilizers and lubricants for PVC processing. In addition, they find application as mould release agents in the rubber and pharmaceutical industries. Baerlocher has also recently announced plans to establish a representative office in Moscow to secure and strengthen its market position in Russia and neighbouring countries. The company anticipates ‘very promising future prospects’ for the region’s plastics industry, with double-digit growth rates expected. The office will be managed by Mikhail Schekin, who will act as a direct interface between Baerlocher and its customers in the Russian plastics industry as well as supporting existing sales agents. Headquartered in Munich-Unterschleissheim, Germany, Baerlocher operates 13 production sites worldwide, employs about 1200 and has a sales network covering more than 40 countries. Contact: Baerlocher GmbH, Munich, Germany. Tel: +49 89 14 37 30, Web: www.baerlocher.com
Tronox retains Uerdingen plant, announces further cost reductions…
O
klahoma-based Tronox Inc, the world’s third-largest producer of titanium dioxide (TiO2) pigment, has decided to retain its
6
Additives for Polymers
Uerdingen, Germany, TiO2 plant after full evaluation of the strategic options for this asset. The business and financial market assessments did not accurately reflect the ‘long-term value of this world-class facility’, the company says.
As the only sulphate-process TiO2 facility within its portfolio, Tronox had considered selling the 107 000 tonnes/year capacity plant in order to focus resources on growing its chloride-process business [ADPO, July 2007]. However, it has now decided that Uerdingen will provide better long-term value for its shareholders if it remains part of its portfolio. The current strong European economic conditions, the company’s recent investments in the facility and its strategic plans for the future were contributory factors in the decision, says Tom Adams, Tronox chairman and CEO. ‘To maximize its value, we will continue to focus on our strategy to drive costs out of the business through improvements in our operations and processes’, he says. While maintaining the core coatings and plastics business, Adams says that Tronox will improve margins by increasing its participation in speciality product markets, many of which favour the high-quality, high-purity sulphate-process pigments produced by the Uerdingen plant. The company has also increased its Project Cornerstone initiative by US$25 million in annual pre-tax cash cost reductions; approximately $18 million of the additional savings will be achieved through operating cost reductions and the remainder through new selling, general and administrative (SG&A) cost reductions. Tronox expects to reach its original Cornerstone cash cost reduction target of $60 million (pre-tax) by the end of 2008 as projected, with the additional $25 million in savings to be achieved during the 2007 through 2009 timeframe. One of the cost-saving measures being implemented is a workforce reduction of about 7% with more than half of these positions already vacated. As part of this process, Tronox has recently eliminated the position of chief operating officer, with the result that Marty Rowland left the company in August. The company has also announced a reduction in its contribution to retirees’ medical and life insurance effective 1 April 2009. Tronox reported a net loss for 2Q 2007 of $21.2 million, compared with a net loss of $14.4 million for
November 2007