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Chemson invests in UK manufacturing operation
STRATEGIES
BASF opens US technical lab for plastics applications; completes Chinese tBA expansion
A
t its Southfield site in Michigan, USA, BASF Corp, the North American affiliate of BASF SE, has inaugurated a technical laboratory for its customers in the plastics and coatings industries. It centralizes laboratory operations for the Dispersions & Pigments Division’s Transportation, Industrial Coatings and Plastics (TICP) business, which had previously been operating from three different locations in the USA. The refurbishment of the 32 000 ft2 (c. 2975 m2) building took 14 months to complete and represents a significant investment of approximately US$20 million. The state-of-the-art laboratory will support the formulation needs for pigments, resins, performance and formulation additives that are used in plastics, transportation, industrial, furniture and floor coatings applications, BASF reports. It can accommodate up to 50 people engaged in research, development and technical service, to serve customers and encourage collaboration. BASF’s Dispersions & Pigments Division in North America offers a comprehensive portfolio of resins, binders, latex, organic, inorganic, functional and effect pigments, colorants, and custom solutions to meet specific application needs for the coatings, construction, printing and packaging, plastics and paper markets. Additives products include dispersing agents, rheology modifiers, defoamers, light stabilizers, antioxidants and photoinitiators. Elsewhere, BASF has completed a major capacity expansion at its tertiary butylamine (tBA) plant in Nanjing, China. The tBA plant now has an annual production capacity of 16 000 tonnes, representing an increase of 60% from its initial capacity of 10 000 tonnes/year [ADPO, December 2014 & September 2013]. BASF says that the expansion will enable it to meet the growing demand for tyre additives in China and Asia Pacific; tBA is used as an intermediate for the production of accelerators for the rubber and tyre industry, among other applications. The tyre market in China is forecast to witness strong growth and it is therefore critical to ensure a swift response to the changing market demand, says Narayan Krishnamohan, senior VP, BASF Intermediates Asia Pacific. ‘With the expansion, we will be able to better help our customers in the tyre industry to meet the growing
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Additives for Polymers
demand for high-quality tyres in the automobile industry’, he adds. In addition to the plant in Nanjing, BASF produces tBA in Geismar, LA, USA, and in Antwerp, Belgium. In other news, BASF has extended its long-term polymer additives supply agreement with Russian petrochemicals giant Sibur. Under the terms of the agreement, which dates back to 2013, BASF supplies Sibur’s production facilities with additives used in the manufacture of polypropylene, polyethylene, synthetic rubber and thermoplastic elastomers. In addition, the parties say they will continue to implement their joint projects related to the development of new grades of polypropylene, polymer stabilization optimization and the introduction of customer specific blends. At its recent BASF Investor Day 2015 in Ludwigshafen, the company’s chairman Dr Kurt Bock reported that BASF’s growth strategy is ‘well on track’ despite the challenging environment. The company has slightly lowered its expectations for the global economic environment from 2015 to 2020 and now anticipates a compound annual growth rate of 3.9% for chemical production, revised from 4.0%. BASF says it aims to grow its sales slightly faster than global chemical production in the next few years and its pre-tax earnings ‘well above’ this growth figure. To achieve these goals, the company says it plans to generate E10 billion of sales with products and solutions that have been on the market since 2010, maintain R&D spending at around 3% of sales (excluding oil & gas) and reduce capital investment. It is also launching a further operational excellence programme called DrivE – Drive Efficiency – to run from 2016 to 2018, targeting an annual earnings contribution of E1 billion by the end of 2018. Contact: BASF SE, Ludwigshafen, Germany. Tel: +49 621 60 0, Web: www.basf.com Or contact: BASF Corp, Florham Park, NJ, USA. Tel: +1 973 245 6000
Chemson invests in UK manufacturing operation
A
ustrian-based manufacturer of PVC stabilizers Chemson has invested £1 million (c. E1.4 million) in several new initiatives to help boost the market status of its UK operation. New machinery and technology systems have been installed at the firm’s Newcastle upon Tyne plant to speed up its internal production and
November 2015
STRATEGIES
despatch processes, several new highly skilled appointments have been made and a staff training programme has been undertaken, Chemson reports. The company says that these initiatives will ‘significantly increase’ its product range and improve customer response times. Among the investments at the UK manufacturing facility are a new state-of-the-art packing machine, a new fleet of forklift trucks and additional warehouse storage capability. The company says it has also ‘invested considerably’ in training and development, working with a management consultancy and training provider on programmes to increase the technical expertise of its workforce. According to Chemson, these improvements will give it the capability and flexibility ‘to vastly increase its range’ of bespoke PVC stabilizer recipes and products for its global client base, as well as providing considerably faster customer response and turnaround rates. In addition, the UK operation has recently recruited four new technical, engineering and sales personnel in a move it says will help it access ‘untapped potential’ in the business. Mark Dobson joins as sales director for the UK and Scandinavia, Chris Cheeseman has been appointed technical service manager, and Carl Atkinson and Glenn Roach join the engineering team to improve manufacturing processes. The new recruits will be responsible for the implementation of a nine-step improvement plan to boost quality and capability at Chemson’s North Tyneside plant, as well as the development and promotion of innovative new PVC stabilizer solutions, the company says. Chemson, which claims to be the world’s largest manufacturer of PVC stabilizers, was acquired by Turkish industrial conglomerate Oyak Group in 2013 [ADPO, February 2014]. ‘Under the new committed ownership of Oyak, we now have a long-term strategy for growth in place and this significant investment will help us to further build our client base by offering a vastly increased product range and considerably faster response times’, comments Paul Knowles, managing director of Chemson’s UK manufacturing facility. Acknowledging that the UK plant has experienced ‘a period of undeniable turbulence’, Knowles says that it is now making ‘huge strides’ in turning around its position to create ‘an agile, forward-thinking, customerfocused business’ – well-equipped to meet the polymer and plastic industry’s future needs. ‘This level of investment also demonstrates a high degree of confidence in the UK site and recognizes its global importance’, he says. Chemson’s Newcastle plant concentrates on the production of PVC additives for profiles and sheets, pipes and
November 2015
fittings, and cable insulation/sheathing. The company reports that the facility is on target to phase out leadbased production by the end of 2015 in line with Vinyl Plus, the voluntary commitment of the European PVC industry [ADPO, October 2011 & August 2015]. Contact: Chemson Polymer-Additive AG, Arnoldstein, Austria. Tel: +43 4255 2226 0, Web: www.chemson.com Or contact: Chemson Ltd, Hayhole Works, Northumberland Dock Rd, Newcastle upon Tyne NE28 OPB, UK. Tel: +44 191 259 7000
Ashland plans to separate into two companies to focus on speciality chemicals
T
he board of directors of Ashland Inc has approved a plan to separate the company into two independent, publicly traded entities: ‘New Ashland’ and Valvoline. The decision follows a comprehensive strategic planning review by the company’s leadership team to better understand its markets, customers and the opportunities for each business to create the most value for stakeholders. It also represents the final step in Ashland’s more than decade-long transformation from an oil refiner to a speciality chemicals company, during which it completed dozens of acquisitions and divestitures. The new Ashland will comprise the current Ashland Specialty Ingredients and Ashland Performance Materials units, and will be ‘a global leader in providing speciality chemical solutions to customers in a wide range of consumer and industrial markets’, according to the company. It will focus on driving growth in higher-margin, highly differentiated core product lines; leveraging the innovation pipeline to generate new product introductions; optimizing its business and product portfolio; and taking a disciplined approach to capital investment, Ashland says. Key markets and applications for the new entity include adhesives, automotive, construction, energy, pharmaceutical, personal care, food and beverage, and architectural coatings. Together these businesses generated approximately US$3.6 billion in sales for the 12 months ended 30 June 2015. Valvoline will retain its focus on high-performance lubricants for the engine and automotive maintenance sectors. ‘We believe that separating
Additives for Polymers
9
BASF opens US technical lab for plastics applications; completes Chinese tBA expansion
A
t its Southfield site in Michigan, USA, BASF Corp, the North American affiliate of BASF SE, has inaugurated a technical laboratory for its customers in the plastics and coatings industries. It centralizes laboratory operations for the Dispersions & Pigments Division’s Transportation, Industrial Coatings and Plastics (TICP) business, which had previously been operating from three different locations in the USA. The refurbishment of the 32 000 ft2 (c. 2975 m2) building took 14 months to complete and represents a significant investment of approximately US$20 million. The state-of-the-art laboratory will support the formulation needs for pigments, resins, performance and formulation additives that are used in plastics, transportation, industrial, furniture and floor coatings applications, BASF reports. It can accommodate up to 50 people engaged in research, development and technical service, to serve customers and encourage collaboration. BASF’s Dispersions & Pigments Division in North America offers a comprehensive portfolio of resins, binders, latex, organic, inorganic, functional and effect pigments, colorants, and custom solutions to meet specific application needs for the coatings, construction, printing and packaging, plastics and paper markets. Additives products include dispersing agents, rheology modifiers, defoamers, light stabilizers, antioxidants and photoinitiators. Elsewhere, BASF has completed a major capacity expansion at its tertiary butylamine (tBA) plant in Nanjing, China. The tBA plant now has an annual production capacity of 16 000 tonnes, representing an increase of 60% from its initial capacity of 10 000 tonnes/year [ADPO, December 2014 & September 2013]. BASF says that the expansion will enable it to meet the growing demand for tyre additives in China and Asia Pacific; tBA is used as an intermediate for the production of accelerators for the rubber and tyre industry, among other applications. The tyre market in China is forecast to witness strong growth and it is therefore critical to ensure a swift response to the changing market demand, says Narayan Krishnamohan, senior VP, BASF Intermediates Asia Pacific. ‘With the expansion, we will be able to better help our customers in the tyre industry to meet the growing
8
Additives for Polymers
demand for high-quality tyres in the automobile industry’, he adds. In addition to the plant in Nanjing, BASF produces tBA in Geismar, LA, USA, and in Antwerp, Belgium. In other news, BASF has extended its long-term polymer additives supply agreement with Russian petrochemicals giant Sibur. Under the terms of the agreement, which dates back to 2013, BASF supplies Sibur’s production facilities with additives used in the manufacture of polypropylene, polyethylene, synthetic rubber and thermoplastic elastomers. In addition, the parties say they will continue to implement their joint projects related to the development of new grades of polypropylene, polymer stabilization optimization and the introduction of customer specific blends. At its recent BASF Investor Day 2015 in Ludwigshafen, the company’s chairman Dr Kurt Bock reported that BASF’s growth strategy is ‘well on track’ despite the challenging environment. The company has slightly lowered its expectations for the global economic environment from 2015 to 2020 and now anticipates a compound annual growth rate of 3.9% for chemical production, revised from 4.0%. BASF says it aims to grow its sales slightly faster than global chemical production in the next few years and its pre-tax earnings ‘well above’ this growth figure. To achieve these goals, the company says it plans to generate E10 billion of sales with products and solutions that have been on the market since 2010, maintain R&D spending at around 3% of sales (excluding oil & gas) and reduce capital investment. It is also launching a further operational excellence programme called DrivE – Drive Efficiency – to run from 2016 to 2018, targeting an annual earnings contribution of E1 billion by the end of 2018. Contact: BASF SE, Ludwigshafen, Germany. Tel: +49 621 60 0, Web: www.basf.com Or contact: BASF Corp, Florham Park, NJ, USA. Tel: +1 973 245 6000
Chemson invests in UK manufacturing operation
A
ustrian-based manufacturer of PVC stabilizers Chemson has invested £1 million (c. E1.4 million) in several new initiatives to help boost the market status of its UK operation. New machinery and technology systems have been installed at the firm’s Newcastle upon Tyne plant to speed up its internal production and
November 2015
STRATEGIES
despatch processes, several new highly skilled appointments have been made and a staff training programme has been undertaken, Chemson reports. The company says that these initiatives will ‘significantly increase’ its product range and improve customer response times. Among the investments at the UK manufacturing facility are a new state-of-the-art packing machine, a new fleet of forklift trucks and additional warehouse storage capability. The company says it has also ‘invested considerably’ in training and development, working with a management consultancy and training provider on programmes to increase the technical expertise of its workforce. According to Chemson, these improvements will give it the capability and flexibility ‘to vastly increase its range’ of bespoke PVC stabilizer recipes and products for its global client base, as well as providing considerably faster customer response and turnaround rates. In addition, the UK operation has recently recruited four new technical, engineering and sales personnel in a move it says will help it access ‘untapped potential’ in the business. Mark Dobson joins as sales director for the UK and Scandinavia, Chris Cheeseman has been appointed technical service manager, and Carl Atkinson and Glenn Roach join the engineering team to improve manufacturing processes. The new recruits will be responsible for the implementation of a nine-step improvement plan to boost quality and capability at Chemson’s North Tyneside plant, as well as the development and promotion of innovative new PVC stabilizer solutions, the company says. Chemson, which claims to be the world’s largest manufacturer of PVC stabilizers, was acquired by Turkish industrial conglomerate Oyak Group in 2013 [ADPO, February 2014]. ‘Under the new committed ownership of Oyak, we now have a long-term strategy for growth in place and this significant investment will help us to further build our client base by offering a vastly increased product range and considerably faster response times’, comments Paul Knowles, managing director of Chemson’s UK manufacturing facility. Acknowledging that the UK plant has experienced ‘a period of undeniable turbulence’, Knowles says that it is now making ‘huge strides’ in turning around its position to create ‘an agile, forward-thinking, customerfocused business’ – well-equipped to meet the polymer and plastic industry’s future needs. ‘This level of investment also demonstrates a high degree of confidence in the UK site and recognizes its global importance’, he says. Chemson’s Newcastle plant concentrates on the production of PVC additives for profiles and sheets, pipes and
November 2015
fittings, and cable insulation/sheathing. The company reports that the facility is on target to phase out leadbased production by the end of 2015 in line with Vinyl Plus, the voluntary commitment of the European PVC industry [ADPO, October 2011 & August 2015]. Contact: Chemson Polymer-Additive AG, Arnoldstein, Austria. Tel: +43 4255 2226 0, Web: www.chemson.com Or contact: Chemson Ltd, Hayhole Works, Northumberland Dock Rd, Newcastle upon Tyne NE28 OPB, UK. Tel: +44 191 259 7000
Ashland plans to separate into two companies to focus on speciality chemicals
T
he board of directors of Ashland Inc has approved a plan to separate the company into two independent, publicly traded entities: ‘New Ashland’ and Valvoline. The decision follows a comprehensive strategic planning review by the company’s leadership team to better understand its markets, customers and the opportunities for each business to create the most value for stakeholders. It also represents the final step in Ashland’s more than decade-long transformation from an oil refiner to a speciality chemicals company, during which it completed dozens of acquisitions and divestitures. The new Ashland will comprise the current Ashland Specialty Ingredients and Ashland Performance Materials units, and will be ‘a global leader in providing speciality chemical solutions to customers in a wide range of consumer and industrial markets’, according to the company. It will focus on driving growth in higher-margin, highly differentiated core product lines; leveraging the innovation pipeline to generate new product introductions; optimizing its business and product portfolio; and taking a disciplined approach to capital investment, Ashland says. Key markets and applications for the new entity include adhesives, automotive, construction, energy, pharmaceutical, personal care, food and beverage, and architectural coatings. Together these businesses generated approximately US$3.6 billion in sales for the 12 months ended 30 June 2015. Valvoline will retain its focus on high-performance lubricants for the engine and automotive maintenance sectors. ‘We believe that separating
Additives for Polymers
9