Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology

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Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
October 2020/November 2020
A     PUBLICATION
                                                                     Vol. 37. No 5

                                                 Keep
                                                 Cool
                                                PU: THE KEY
                                                INGREDIENT
                                              FOR EFFICIENT
                                                INSULATION

                                                           Q-BOT:
                                                     FOR THE FOAM
                                                   UNDER YOUR FEET

    www.utech-polyurethane.com   REPORTING ON THE GLOBAL PU INDUSTRY SINCE 1984
Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
CONTENTS
  newslines                                      6-18
6 Dow launches AI for PU formulations, Cannon
    unveils smart mix head, Cost controls help
    business bounce back at Recticel, Fall in
    Japan’s PU production slows down

                                                                                                                 20
7 EU diisocyanate restriction scheduled to start in
    2023, Vita joins in circular mattress economy, PCC                                                                  It would be
    and Petronas to make polyols in Malaysian JV                                                                        better to
8 Kingspan weathers first half storms, A rollercoaster                                                           invest in training
    ride for Ciech Pianki, Coronavirus hits earnings
    at FoamPartner
10 Ballytherm expands into UK, Europe’s flex foamers
                                                              10                                                 to improve skills,
                                                                                                                 so there will be
                                                             Storopack uses polyols from sugars
    back at full strength, New Adiprene prepolymers
    from starchy sources, PU aids antibacterial
                                                                                                                 long term jobs
    membrane, Storopack expands renewable content                                                                Simon Storer, IMA
    of PU packaging

                                                                                                                 23
12 Coronavirus helps Purple to 54% first half sales
    growth, Lower earnings at Nike offset by online                                                                    We saw a
    growth, Automotive woes hung heavy on Adient                                                                       downturn
    in Q3, Lear profits down 30% in H1, Johns Manville
    breaks ground for new plant                                                                                  in the second
13 PU facilities included in Dow cutback plans, ACC                                                              quarter, then a swift
    and OSHA renew safety pact                                                                                   recovery after that
14 American Excelsior spends on polyurethane                                                                     Doug Kramer, Huntsman
    processing, Lubrizol invests for extra flexibility
                                                                                                                 Building Solutions
15 China’s PU feedstock market reflects double-digit
    decline, Hongbaoli raises capital for rigid polyol                                                   19
                                                                                                                 27    There are
    expansion, Slow start to Q1 2021 for Sheela,
    Covestro’s record turbine, Wanhua and 3Trees             Efficient insulation cuts carbon use
    partner in a joint lab                                                                                             incentives for
16 Sinomax slumps to operating loss, Mlily to expand                                                             public and private
    in Spain and Arizona, Profits down in first half at
    Wanhua, China’s refrigerator exports up by
                                                                                                                 sectors to invest in
    two-thirds in August                                                                                         building insulation.
18 Pricing: Supply constraints tighten markets                                                                   I am optimistic
                                                                                                                 Luca Ceresa, Saip

  features                                    19-33
19 Tackling the insulation conundrum Reducing the
                                                                                                                 28  We have a
                                                                                                                     new four-
                                                              23
    energy consumption of domestic and commercial
    buildings is the key to meeting future climate goals.                                                        component mix
    We look at how different parts of the world are
    approaching the issue                                                                                        head; it is the only
                                                             Applying spray foam
23 Building a global leader in SPF Huntsman’s recent                                                             one on the market
    acquisition of Icynene-Lapolla, and before that                                                              Francesco Abba, Cannon
    Demilec, has given the company a big foothold in
    the spray polyurethane foam market. Doug Kramer

                                                                                                                 30
    tells Sarah Houlton how the integration is going.
                                                                                                                         When we
26 Rigid markets march ahead The production of a lot
    of plant and equipment was paused in March, April                                                                    make social
    and May, yet 2020 has proved a surprisingly
    resilient year for rigid polyurethane.
                                                                                                                 media posts that
                                                                                                                 includes Q-Bot, it
29 Under floor SPF solution Floors are the ‘missing
    link’ in domestic insulation, as retrofitting it under                                                       is clickbait gold –
    existing floorboards is not an easy task. We talk to
    the inventors of a semi-autonomous robot designed
                                                                                                                 everyone wants to
    to spray foam under the floorboards.                                                                         talk about it
31 Keeping cool, Chinese style China’s dynamic and
    rapidly growing cold chain sector relies on PU
    insulation to keep food frozen all the way to the
    table. Jane Ho looks at the market’s structure
                                                                                                        29       Peter Woodcock, Econ
                                                                                                                 Polyurethanes

                                                             Q-Bot sprays where you can’t

                                                             Front cover picture:
 departments                                         34      Ice cream and other consumer favourites
                                                             rely on insulation made with rigid PU. Find
30 Dates and Data                                            out more in our feature, starting on page 19.
    Key events for the PU industry                           Picture: iStock

                                                                               3                                 www.utech-polyurethane.com
Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
COMMENT

                                                                                          VOLUME 37, NO. 5 ISSN 1754-1352 (USPS 012611)
                                                                                          Published in February, April, June, August, October and
                                                                                          December by: Crain Communications Ltd,
                                                                                          Urethanes Technology International,
                                                                                          Postal address: Office 127, 61 Willow Walk, London SE1 5SF UK.
                                                                                          Tel: +44 (0)203 287 5979
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                                                                                          LEADERSHIP
                                                                                          Chairman: Keith E Crain
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Boom now… bust later?
                                                                                          Editor: Simon Robinson
                                                                                          Tel: +44 (0)203 287 5979 Email: srobinson@crain.com
                                                                                          Associate Editor: Sarah Houlton
                                                                                          Email: sarah@owlmedia.co.uk
                                                                                          Art Director: Amy Steinhauser
                                                                                          Email: asteinhauser@crain.com
It's only a theory, but I suspect that one of the reasons economies are bouncing          NORTH AMERICAN OFFICES (Editorial):
                                                                                          Don Loepp, Tel: +1 313 446 6767 Email: dloepp@crain.com
back as I write this is coronavirus-related spending. It’s been particularly noticeable   INTERNATIONAL CORRESPONDENTS:
for those fortunate enough still to be in work, and able to work at home.                 CHINA: Jane Ho,
    Now they have no commuting costs, lunches to buy, or twice-daily coffee shop          Tel: + 86 189 3057 2271 Email: janeadios@gmail.com
visits, these lucky people have suddenly found themselves with more disposable            KOREA: Choong-Ha Lee,
                                                                                          Tel: + 82 (0)31 211 2073 Email: puworld@naver.com
income. This is in stark contrast to their thoughts at start of lockdown, when they
                                                                                          INDIA: Satnam Singh
became increasingly worried about about the disease and money.                            Email: Satnamsingh41@hotmail.com
    The result of the buoyant bank balances? They’ve been buying themselves               TRADE SHOWS/EXHIBITONS
treats, with a shiny new TV or surround-sound system often top of the list.               Director: Debbie Hershfield
                                                                                          Tel: + 1 303 608 0231 Email: dhershfield@crain.com
    Having upgraded the viewing experience, the seating experience is next. The old
                                                                                          NORTH / SOUTH AMERICA, UK, OPEN AREAS:
sofa may well have been fine for a couple of hours’ relaxation in the evening, after      Advertising director: Ed Rich,
an uncomfortable trip to and from work, with a day spent on ergonomic seating             Tel: +1 330 869 0375 Email: erich@crain.com
between the two. But it’s just not up to the job after six hours of videoconferencing     NORTHERN EUROPE: Arthur Schavemaker,
                                                                                          Tel: +31 (0)547 275005, Fax: +31 (0)547 271831
from the kitchen table. Time for a new sofa.                                              Email: arthur@kenter.nl
    While we’re at, it how about a nice new foam mattress for those of us forced to       SOUTHERN EUROPE: Fabio Potesta,
work in our bedrooms? And as we’ve stopped cooking and are eating frozen con-             Tel/fax: +39 010 570 4948,
                                                                                          Fax: +39 010 553 0088 Email: info@mediapointsrl.it
venience food, let’s get a bigger refrigerator.                                           CHINA: Winnie Song,
    These are relatively small purchases, however. It’s noticeable that sales of some     Tel: +86 13810 173625 Email: songwei@wkexpo.com
of the bigger ticket items are definitely suffering. In many parts of the world, people   AFRICA, INDIA, MIDDLE EAST: Taher Patrawala,
are not buying cars, perhaps because they are worried about their jobs. One possi-        Tel: +971 4 297 0512 Email: taher@mediafusionme.com
                                                                                          KOREA: Min Pyo
ble indicator of this comes from here in the normally spendthrift UK. The proportion      Tel: +82 (0) 31 211 2073 Email: minpyo@hotmail.com
of income people are saving has averaged 8.6% since 1963. Yet in the second quar-         Media services manager: Patrick Alfes
ter of this year, it rose to 29.1%.                                                       Tel: +1 313 446 0387 Email: palfes@crain.com
    As you will see in the news (page 10) and in our feature (page 26), these trends
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that there is demand for plants to make domestic re-
                                                                                          Subscriptions (abonnement) enquiries correspondence:
frigerators and insulated building panels.                                                Circulation Dept, Urethanes Technology International,
    Long may spending continue... but the clouds may                                      1155 Gratiot Ave. Detroit, MI 48207, United States.
be gathering.                                                                             Tel: +1 313 446 0450
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Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
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Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
INTERNATIONAL NEWSLINES

Dow launches AI for                                                                                                  Fall in Japan’s
                                                                                                                     PU production

PU formulations
Midland, Michigan – Dow                                                          quirements. ‘There is not an
                                                                                                                     slows down
                                                                                                                     Tokyo – Polyurethane pro-
                                                                                                                     duction in Japan fell by
                                                                                                                     12.4% in July 2020 com-
has launched an automat-                                                         expectation that customers          pared with the same month
ed polyurethane formulation                                                      provide this information direct-    in 2019.
system. Initially it is aimed at                                                 ly through the tool,’ the com-         This is the 11th straight
flexible and rigid applications,                                                 pany added.                         month of production falls in
but eventually it will extend                                                       Dow is using Microsoft’s         Japan. However, July rep-
into other types of formulation.                                                 Azure platform. This combines       resents the second consec-
The system relies on artificial                                                  machine learning and artificial     utive month of a rebound,
intelligence to devise formulas                                                  intelligence with Dow’s mate-       from a drop of 44.4% year-
based on Dow raw materials                                                       rials science, reaction kinetics    on-year in April.
to customer specifications.                                                      data and rheology from histor-         The figures come from
   At first, the tool will be for                                                ical data, predictive modelling     Japan’s Ministry of Interna-
prediction, and not for for-                                                     and automated work process-         tional Trade and Industry.
mulation control on the fly on                                                   es and scale up apps.                  In total, Japan produced
a production machine. It will                                                       The process is designed          16.3 kT of polyurethane in
include additives and com-          Robinson: smarter, more cost effective       to integrate with Dow’s order       July 2020.
ponents from other suppliers                                                     processing system.                     This compares with 18.65
because, the company said,          ification it will recommend the                 ‘We are integrating new dig-     kT in July 2019, a fall in pro-
Dow products and proprietary        formulation. This should be a                ital tools across all business      duction of 2320 tonne.
systems often include these.        good starting point if further               operations to change the way           The country produced
   Customers will be able to        modification is needed, Dow                  we work and how customers           10.3 kT of flexible foam
use a web interface to specify      said.                                        do business with us,’ said Alan     in July 2020, down 1,908
parameters such as hardness,            Addressing a question on                 Robinson, Dow Polyurethanes’        tonne in July 2019.
density and cost. The software      data privacy, Dow said that                  commercial VP for North                The figures for rigid foam
will simulate formulation reac-     the tool is designed to let us-              America. ‘We are making our         are 6.1 kT in July 2020, and
tions under manufacturer’s in-      ers explore the properties of                processes smarter and more          6.5 kT in the same month in
dividual conditions, and once       its formulations, and to match               cost-efficient, building novel      last year.
the simulation meets the spec-      those with the customer’s re-                capabilities’.

Cannon unveils                                                                    Cost controls help business
                                                                                  bounce back at Recticel
smart mix head                                                                    Brussels – Recticel gener-
                                                                                  ated first half 2020 sales of
                                                                                  €374.3m, down 18% on H1
                                                                                                                       To cope with the fall in de-
                                                                                                                    mand, Recticel cut produc-
                                                                                                                    tion. It also laid off workers
Milan, Italy – Cannon has           warning can be given, or the                  2019, but business came           temporarily, and introduced
launched an intelligent mix         system can self-compensate.                   back as the half progressed.      strict controls over spending
head. The company said it was          Maurizio Corti, who filed                  Adjusted EBITDA across the        and capital expenditure.
designed to offer total process     the patent, said that a cloud                 business fell by 45% to €19m         ‘As a consequence, the
control, including monitoring       of signals can be detected in                 in the half. In the same peri-    cash consumption of our
its own working conditions and      advance. This will allow pre-                 od in the previous year, the      continued operations and
mechanical performances.            dictive maintenance to be pre-                figure was €34.6m.                the negative impact on ad-
   The design, based on the         planned for the mix head and                     CEO Olivier Chapelle said      justed EBITDA have been
company’s SR models, can            related control and command                   that coronavirus had hit the      reduced to the maximum ex-
be supplied with up to 30 dif-      systems.                                      company in the first half of      tent possible,’ he said.
ferent microsensors. These             ‘The problem with tradition-               the year, but things are get-        Recent M&A activity left
measure pressure, vibration,        al, dumb mix heads is that,                   ting better. ‘After reaching      Chapelle more positive. ‘The
stresses, strains and tempera-      apart from vibration measure-                 a low point of 51.5% in April     Group ended the second
ture within the mix head while      ments, there is very little to tell           2020 versus April 2019, the       quarter with a net positive
mixing and recirculation is in      the user how it is performing                 sales shortfall versus last       cash position of €11.4m and
progress.                           and what its actual working                   year has improved to 35.4%        ample financial headroom
   The information it generates     and maintenance status is,’ he                in May and 9.3% in June. This     to focus and engage in the
is saved to a database in real      said. ‘This talking mix head is               recovery trend continues          execution of its growth strat-
time. If the information shows      another tool in the polyure-                  with July 2020 being 4.1%         egy in its higher value-added
any parameter in the mix head       thane sector’s move into in-                  lower than July 2019.’            business segments,’ he said.
drifting out of tolerance, a        dustry 4.0 operation.’

 www.utech-polyurethane.com                                                  6
Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
INTERNATIONAL NEWSLINES

EU diisocyanate restriction
scheduled to start in 2023
Brussels, Belgium – Using           launch this as soon as possi-                                                  ing programme could take
diisocyanates will be formally      ble,’ he said.                                                                 40 minutes once every five
restricted in the EU from 24           A launch is planned by the                                                  years. ISOPA has a publication
August 2023, but the qualifi-       end of 2020 in selected Eu-                                                    designed to help companies
cations required to use them        ropean countries. He did not                                                   navigate the regulations.
could be straightforward, ac-       specify which, but the initial                                                    He added that the asso-
cording to ISOPA. Its director      training languages will be En-                                                 ciation is talking to member
general, Jorg Palmersheim,          glish and German. It will even-                                                states and stake holders to
said the association is exam-       tually be available across the                                                 make sure they understand
ining ways of offering the in-      EU, he added.                                                                  the industry is working on this.
dustry three routes that would         ‘General management as                                                         The regulation will apply to
enable people to handle the         well as people on the shop-                                                    companies handling unreact-
chemicals safely.                   floor should take part in the                                                  ed diisocyanates. ECHA, the
   ISOPA is considering full        training as part of their com-             Palmersheim: commitment to safety   European chemicals agency,
e-learning, a web-based op-         mitment to health and safety                                                   said it was introducing the re-
tion with a virtual trainer, or a   at work,’ he said.                        stressed this should not be          striction to prevent more than
face-to-face class option. ‘We         There will be a fee to carry           a burden on the industry. He         3000 new cases of occupa-
think that it is important we       out training, but Palmersheim             suggested that the e-learn-          tional asthma a year in the EU.

Vita joins in circular                                                        PCC and Petronas to make
                                                                              polyols in Malaysian JV
mattress economy                                                              Duisberg, Germany – PCC
                                                                              and Petronas are setting up a
                                                                                                                      Construction is set to start in
                                                                                                                   2021, with production slated to
Middleton, UK – Vita Group,                                                   50:50 partnership for the joint      commence 2023. A joint R&D
which makes flexible polyure-                                                 production of oxyalkylates in        centre will also be established.
thane foam, has joined Dow’s                                                  Malaysia. PCC is to sell 50%         PCC set up the Malaysian proj-
Renuva mattress recycling                                                     of the shares in its subsidiary      ect company in 2017, aiming
programme.                                                                    PCC Oxyalkylates Malaysia to         to expand its business in the
   It will be using polyols pro-                                              the Petronas Chemical Group          Asian market.
duced by the process to make                                                  (PCG), thus gaining greater ac-         ‘Through this joint venture,
flexible PU foams.                                                            cess to the south-east Asian         we are boosting the expansion
   ‘Sustainability and innova-                                                and Asia-Pacific markets.            of PCC’s core businesses with
tion are integral to Vita’s cul-      Robb: Sustainability a core value          The plan is to construct a        the polyols and surfactants
ture, purpose and values,’ said                                               new production plant at PCG’s        segments in the growth mar-
Ian Robb, Vita Group’s CEO.         ols under its Renuva brand.               Kerteh Integrated Petrochem-         kets of Asia,’ said Waldemar
‘We are committed to being pi-      They are made from post-con-              ical Complex in Terengganu,          Preussner, PCC’s chairman.
oneers in the development of        sumer mattress waste collect-             Malaysia. The products it will       ‘The Kerteh site is ideal due
a circular economy within our       ed under France’s Eco-Mobil-              manufacture will include poly-       to the availability of important
industry, where post-consum-        ier scheme, and generated at              ether polyols for the polyure-       raw materials and an excellent
er flexible PU foams will be re-    Orrion Chemicals’ Orgafoam                thane market.                        infrastructure.’
cycled into new raw materials       site in France using technolo-
for use in our manufacturing        gy that was developed by Ger-
process to produce new, qual-       many’s H&S.
ity foams.’                                                                    Songwon expands CASE FR portfolio
   Vita expects to start using                                                 Ulsan, South Korea – Song-             It is also suitable for
                                     Clarifciation:
polyols at its ICOA plant in                                                   won has added a new prod-           flame-retardant textiles.
                                     Dow has asked us to clari-
Crancey, France in early 2021.                                                 uct to its Songflame family of         The company claims the
                                     fy that the reaction mixture
It will also work with mattress                                                flame retardants. A new man-        new product has low viscosi-
                                     produced during its chem-
brands in France and across                                                    ufacturing line for the range       ty, a high active content, and
                                     ical recycling process for
Europe to promote the use                                                      has also been completed.            is easy to handle in water-
                                     mattress foam contains
of foam made with recycled                                                        Songflame WB 201 is a            borne systems. It said it com-
                                     50% recycled material, and
polyols in the new mattress                                                    solvent-free, aqueous flame         bines the efficiency of con-
                                     not as stated in Urethanes
market. It also plans to look for                                              retardant dispersion for the        ventional products with the
                                     Technology International
other applications.                                                            CASE market.                        benefits of water miscibility.
                                     Aug-Sept 2020, page 6.
   Dow is promoting the poly-

                                                                          7                                             October/November 2020
Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
EUROPE NEWSLINES

Kingspan weathers first half storms
Kingscourt, Ireland – PU and        length of government restric-                                                  almost uninterrupted by the
PIR insulation manufacturer         tions,’ he said.                                                               pandemic. In Canada, howev-
Kingspan recorded sales of             ‘With over €1bn cash and                                                    er, severe lockdown measures
€2.1bn in the first half of 2020,   undrawn [borrowing] facilities,                                                were imposed, and sales were
a fall of 7.6% compared with        we are well placed to come                                                     significantly below the 2019
the same period in 2019. Trad-      through the crisis in a strong                                                 level. Overall in the division,
ing profit across the business      position. We have completed                                                    sales dropped by 7.8% be-
fell by 13.0% to €200m. In the      our agreed terms on three ma-                                                  tween the first half of 2019 and
same period in the previous         jor business acquisitions with                                                 2020, to €1.3bn. Trading profit
year, the figure was €230m.         revenue totalling over €400m.                                                  in the division fell by 15.8% to
The company will not be pay-        We also continue our organic                                                   €123m.
ing an interim dividend.            expansion with new facilities                                                     Geographic performance in
   CEO Gene Murtagh said his        being developed in locations                                                   the insulation boards sector
company had delivered a re-         including Russia, Brazil and                                                   matched that for the panels
silient first half result in what   also Sweden.’                                Murtagh: a resilient first half   business, and sales shrank by
he described as a period of            In the company’s insulated                                                  18.2% between the 2019 and
unparalleled challenges. ‘Per-      panels business, sales started          hit that business outside the          2020 periods. Trading pro-
formance has varied substan-        well in the half, with the order        Americas.                              fit fell slightly faster, and was
tially from region to region,       backlog up 8% on the previous              The US and Brazilian busi-          down by 20% at €48m, com-
depending on the severity and       year. Coronavirus lockdowns             nesses continued to trade              pared with €60m last year.

 A rollercoaster ride for Ciech Pianki
 Warsaw – Sales at Ciech Pi-        the closing down of shopping            tal sales were PLN1.5bn in the
                                                                                                                    News in Brief

 anki fell by 18.8% between         centres and furniture stores            first half of 2020, down 14.7%
                                                                                                                    Metso Outotec adds
 the first half of 2019 and the     in Poland and Europe led to             on the same period last year.           another Baltic plant
 first half 2020, as demand         a temporary reduction in de-            However, the company man-               Siauliai, Lithuania – Mining
 for the company’s prod-            mand for furniture and mat-             aged a 56.1% increase in ad-            products company Metso
 ucts went on a rollercoaster       tresses. This fed throgh to             justed EBITDA to PLN28.1m in            Outotec has opened a new
 ride in the period. Overall        lower demand for the foam.              the half.                               factory in Siauliai making
 sales for the business were           ‘The most significant drop              Pianki is accounted for in           polyurethane and rubber
 PLN112m ($29.4m) in the first      in sales was recorded in                Ciech’s organic business.               parts for the mining in-
 half of 2020, compared with        April,’ the company said.               Here, sales fell by 15.0% be-           dustries. The plant makes
 PLN138m in the equivalent          ‘May saw an improvement,                tween the first half of 2019            a range of products from
 period last year.                  June brought a significant              and the first half of 2020, to          conveyor components to
    Parent company Ciech, the       improvement, and this month             PLN136m. Adjusted EBITDA                screening panels.
 chemicals-based conglomer-         the sales of foams returned to          in the division fell by 14.5%              ‘I am very pleased that
 ate, said that coronavirus-in-     pre-pandemic levels.’                   to PLN4.7m in the first half of         the ramp-up of the new fac-
 duced trade restrictions and          As a whole, Ciech said to-           this year.                              tory in Lithuania has been
                                                                                                                    now completed,’ said Sami
                                                                                                                    Takaluoma, the company’s

Coronavirus hits earnings at FoamPartner
                                                                                                                    president for consumables.
                                                                                                                    ‘First products have been
                                                                                                                    sent to our customers.’
Zurich, Switzerland – Conzze-       half dropped to CHF122.1m, a            business. In the first half of             This is the company’s
ta, the Swiss conglomerate          fall of 32%. EBIT in the division       2019, it was 55%.                       11th plant, and Lithuania
that owns FoamPartner, gen-         declined by 80%, to CHF1.7m.               Efficiency measures in the           was chosen because of its
erated sales of CHF576.2m              FoamPartner had to close             half saw the start-up of Foam-          closeness to Eastern Eu-
($620.5m) in the first half of      a number of sites in China,             Partners’ plant in Duderstadt           rope and Russia. It also has
2020, down 25% on the first         Europe and the US during lo-            and the closure of its site in          good logistics connections
half of 2019. EBIT fell by 45%      cal lockdowns caused by the             Statallendorf. Both of these fa-        to the Middle East and Afri-
to CHF50m. In the same peri-        coronavirus pandemic. These             cilities are in Germany.                ca, the company said.
od in the previous year, EBIT       were matched by shutdowns                      The company also an-                When fully operational,
was CHF90.9m.                       at customer industries.                 nounced that Covestro’s Car-            the plant will employ a total
   FoamPartner forms the bulk          Closures in the automotive           dyon polyols will be used in a          of 80 people.
of Conzzeta’s chemical spe-         sector had a particularly ad-           range of its OBoNature foams.              This is Metso Outotec’s
cialties business, following the    verse impact, the company               These are designed to be lam-           second recent investment
disposal of another business        claimed in its half yearly re-          inated with textiles and used in        in Lithuania. In 2019, the
in February this year. Using the    port. Revenues in this sector           car interiors. Headliners will be       company opened a service
numbers Conzzeta provided           fell by 35.2% in the half, and it       the first application, but door         centre in Vilnius, which em-
for the division without the dis-   now accounts for 48% of the             panels, seat covers and arm             ploys 100 people.
posed business, sales in the        chemical speciality sector’s            rests will also be targeted.

 www.utech-polyurethane.com                                             8
Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
EUROPE NEWSLINES

Ballytherm expands into UK                                                                                     PU aids
Ross-on-Wye, UK – Bally-             supplied by Hennecke-OMS,              for the UK motorway network,       antibacterial
                                                                                                               membrane
therm plans to install a 38m         and is designed to operate at          will be aimed at the market in
double belt conveyor and as-         45m/min, with potential for up         the southern British Isles.
sociated equipment to make           to 70m/min, Ballytherm said. It            Output from the Ballycon-
1.2M m³ flexible-faced polyiso-      includes a continuous foaming          nell plant will supply the north   St Gallen, Switzerland – Sci-
cyanurate panels at a facility in    line, conveyor, foaming/mix-           of the country or could be ex-     entists at EMPA, the Swiss
Herefordshire.                       ing /distribution units, cross         ported within the EU, the com-     Federal Laboratories for Mate-
   The new plant, which will         cutting unit, a panel cooling          pany said.                         rials Science and Technology,
have about three times more          section, and the stocking and              ‘Brexit was a part of the      have developed a cellulose
capacity than the company’s          packing equipment for the fi-          thought process about locat-       membrane for wound dress-
original site at Ballyconnell,       nal products.                          ing the plant,’ said Cosgrove.     ings to prevent infections and
Ireland, will be housed in a            ‘The new plant offers sig-          He added that it would di-         antimicrobial resistance. The
257,000 sq ft (2.4ha) facility on    nificant opportunity for future        lute any potential problems        membranes rely on polyure-
a 15-acre (6ha) site. Installation   growth,’ said Brendan Cos-             supplying the UK, although         thane to give them sufficient
was scheduled to start in Oc-        grove, Ballytherm’s managing           it is still too soon to say what   flexibility and stability.
tober this year, with commis-        director.                              the exit agreement between            The team from the Biointer-
sioning planned for Q2 2021.            Products made at the new            the UK and EU will mean for        faces lab led by Katharina Ma-
   The complete line will be         plant, which is well positioned        cross-border trade.                niura made fine membranes
                                                                                                               from cellulose via electrospin-

Europe’s flex foamers back at full strength
                                                                                                               ning technology, with polyure-
                                                                                                               thane added into the mix to
                                                                                                               confer flexibility and stability.
Brussels – EuroPUR an-               celled. Order books were                     EuroPUR gained nine          These fibres, less than 1µm in
nounced in late September            looking strong until November          members in the first half of       diameter, were woven into a
that its members serving the         or December, with volumes              2020. These include two flex-      delicate, multi-layered, fabric.
furniture and bedding mar-           set to be within 10% of 2019           ible foam makers, Greiner’s           The membranes were treat-
kets are experiencing high de-       levels.                                South African subsidiary and       ed with a solution of antimicro-
mand. However, the automo-              However, companies sup-             Ghana’s Ashfoam, which is          bial peptides, which saturated
tive sector is struggling.           plying the automotive industry         headquartered in Accra but         the fibre scaffold. Lab studies
   The association of flexible       reported that car plants were          has plants in Benin and Niger.     showed they were well toler-
foam producers said plants           at just 50–60% of capacity in             Foam adhesive compa-            ated by human skin cells, and
supplying furniture makers           mid-June, and have remained            ny SABA Dinxperlo has also         killed more than 99.99% of
have been operating close to         stuck at that level since.             joined the group, as has sil-      bacteria in test cultures.
maximum capacity since mid-             There were, however, big            icone surfactant company              The team speculate that the
June across the continent.           differences between OEMs.              Siltech. Five companies and        structures could also have fur-
Plants Europe-wide have been         Demand in the sector could be          organisations involved in poly-    ther therapeutic potential per-
operating additional shifts,         down by 18–20% on 2019, the            urethane recycling have also       haps in the controlled release
with summer shutdowns can-           association said.                      signed up.                         of drugs.

 New Adiprene prepolymers Storopack expands renewable
                          content of its PU packaging
 from starchy sources
                                                                              Polyols from
 Cologne, Germany – Lanx-            tomers with a range of hard-             sugar cane
 ess has launched a new              nesses between 40 Shore A
 range of Adiprene Green             and 60 Shore D.
 prepolymers for polyure-              ‘[They are] well suited for
 thane elastomers.                   applications such as roll cov-
    The new polyols com-             ers, wheel, press sleeves or
 prise 30-90% renewables,            non-pneumatic tyres,’ the
 Lanxess said. This means            company said.                          Metzingen, Germany – Pro-          the company said the foam
 their production generates            Markus Eckert, head of               tective packaging specialist       has similar material properties
 20–30% less CO₂ than con-           Lanxess’ Urethanes Systems             Storopack has added a new          to oil-based alternatives. It is
 ventional oil-based products.       business, said the new prod-           version of its Foamplus pack-      also CFC-, HCFC- and HFC-
    The polyols are derived          ucts are part of his compa-            aging foam with a higher re-       free. This make packaging
 from a renewable feedstock          ny’s goal to become climate            newable content. It claims         with a low shipping weight.
 that does not compete with          neutral by 2040. ‘By using             this is the first PU foam in the      When it is applied the
 the human or animal food            Adiprene Green, our cus-               packaging sector that has re-      two-component foam expands
 chain, according to Lanxess.        tomers can benefit from our            newable content. Its density is    to take on the shape of the
    They can be hand- or ma-         journey to climate neutrality,’        below 5kg/m³.                      packaged goods. The shock-
 chine-mixed to produce elas-        he said.                                  Foamplus 5504RC uses a          absorbent cushioning has
                                                                            sugar cane-based polyol, and       high compression strength.

 www.utech-polyurethane.com                                            10
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AMERICAS NEWSLINES

Coronavirus helps Purple to
54% first half sales growth
Lehi, Utah – Coronavirus lock-     ness model and the changes             more than offset sales through
downs in the US helped Pur-        in consumer buying behaviour           physical stores as these were
ple, the bed-in-a-box maker        brought on by coronavirus,’            shunned by the public during
and online retailer, increase      said CEO Joe Megibow.                  lockdowns across the US.
sales 54% in the first half of        He said Purple had scaled                The company has select-
2020. It recorded sales of         back production at the start of        ed Henry County in Georgia
$287.5m in the half. Adjusted      the pandemic, but increased            as the location for its third
EBITDA across the business         output and improved fulfilment         manufacturing plant in the US.
rose 487% to $35.2m. In the        to meet demand from online             The 520,000 sq ft (2.3ha) fac-
same period in the previous        direct-to-consumer sales as            tory will create 360 new jobs.
year, that figure was $6.0m.       the half progressed.                     The Henry County location
   ‘It was a record-breaking          ‘Our direct to consumer             will be the company’s first
[second] quarter from both         mattress business grew triple          manufacturing site outside its
a revenue and operating in-        digits, as did several of our          home state of Utah.
come standpoint as our organ-      other categories led by seat             Purple added that will be
isation successfully capitalised   cushions, pillows and sheets,’         designed to meet consumer
on the strengths of our busi-      he said. He added that this            demand for its products.            Megibow: record breaking quarter

Lower earnings at Nike Automotive woes hung
offset by online growth heavy on Adient in Q3
Beaverton, Oregon – Sales at          Nike sales are recover-              Plymouth, Michigan – Adi-         around the world hit Adi-
Nike, the global footwear gi-      ing faster because of digital           ent, the full-service automo-     ent’s business in the quarter.
ant, were $10.6 bn in the first    growth, according to CFO                tive interiors giant, had sales   For example, in its Americas
quarter of 2021, down slightly     Matt Friend. He promised                of $1.6bn in the third quarter    reporting segment, sales
on the same period last year.      more money to fuel what he              of 2020. This is a fall of 61%    plunged by 70% between
EBIT across the business rose      described as the company’s              compared with the same pe-        the third quarter of 2019 and
by 12.9% to $1780m in the first    consumer-led digital transfor-          riod in 2019. Adjusted EBIT-      2020, declining to $593m.
quarter of 2021.                   mation.                                 DA was a loss of $122m. In          This meant that adjust-
  Despite nearly all of the           Margin in the business grew          the same period in the previ-     ed EBITDA in the division
Nike-owned physical stores         in the first quarter of 2021.           ous year, the adjusted EBIT-      changed from a profit of
being open in the quarter in       Although the company dis-               DA was $205m.                     $69m to a loss of $83m in
North America, EMEA and            counted old stock to reduce                Shutdowns at car makers        the third quarter of 2020.
Greater China, along with          its inventory and faced high-
90% in Latin America, physical     er supply chain costs, it cut

                                                                          Lear profits down 30% in H1
sales fell because of coronavi-    the advertising spend by 33%
rus and safety measures.           after coronavirus caused the
  Online sales were up 82% in      cancellation of sporting events
the quarter.                       where it promotes itself.              Southfield, Michigan – Lear,          Sales in the company’s seat-
                                                                          the automotive interiors and       ing business dropped by 34%
                                                                          seating company, generated         between the first half of 2019
 Johns Manville breaks ground for new plant                               $6.9bn sales in the first half     and 2020, to $5.1bn. Adjusted
 Hillsboro, Texas – Johns          US. The site will produce              of 2020, 32% lower than the        earnings in the division de-
 Manville has broken ground        board and also act as a distri-        same period in 2019. It made a     clined by 85% to $99m.
 for a new polyisocyanate in-      bution hub. It will employ 50          core operating loss of $43m in        It was not all bad news for
 sulation board products site      people.                                the first half of 2020.            the business in the quarter,
 in Texas. The Hillsboro site is      ‘There are growth oppor-               Looking across the compa-       however. As Scott explained:
 about 60 miles south of Dal-      tunities in the south-west for         ny as a whole, CEO Ray Scott       ‘We saw weekly improve-
 las. The plant is scheduled to    polyiso products,’ said Joe            said: ‘The second quarter of       ments in capacity utilisation
 be complete by mid-2021.          Smith, president of the com-           2020 was one of the most           and in our business perfor-
    The company chose Hills-       pany’s roofing systems busi-           challenging in our history. Our    mance throughout the month
 boro because of its proximity     ness. ‘Three of the 10 largest         business was negatively im-        of June. We also had another
 to a number of key custom-        cities in the country are a            pacted by unprecedented pro-       quarter of strong business
 ers in the south-west of the      short drive from Hillsboro.’           duction shutdowns in our ma-       wins, including additional con-
                                                                          jor markets in April and May.’     quest [new] business.’

 www.utech-polyurethane.com                                          12
AMERICAS NEWSLINES

PU facilities included                                                                                                              ACC and OSHA
                                                                                                                                    renew safety pact

in Dow cutback plans
                                                                                                                                    Washington, DC – The
                                                                                                                                    American Chemistry Coun-
                                                                                                                                    cil (ACC) and OSHA, the
                                                                                                                                    US Occupational Safety
                                                                                                                                    and Health Administra-
Midland, Michigan – Dow is                                                                   cost-cutting targets and im-           tion, have renewed the
to close some of its polyure-                                                                prove overall competitiveness          ACC OSHA Alliance for a
thanes manufacturing sites                                                                   as the global economy recov-           further five years. Its aim
as part of a company-wide                                                                    ers from the coronavirus pan-          is to make working with
cutback. In a news release is-                                                               demic, it said.                        diisocyanates safer.
sued on 30 September, Dow                                                                       In July, Dow announced it              Three ACC groups are
described the PU units being                                                                 was cutting 6% of its global           involved: the Center for
closed as small-scale down-                                                                  workforce as a result of the           the Polyurethanes In-
stream manufacturing facil-                                                                  financial impact of the pan-           dustry, the diisocyanates
ities. No further information                                                                demic. It is selling its rail infra-   panel, and the aliphatic
was available.                                                                               structure assets at six North          diisocyanates panel. The
   A company spokesman said                   Fitterling:Well positioned for recovery        American sites to Watco Cos            primary goals are to raise
more details may be provided                                                                 of Pittsburg, Kansas in a deal         awareness of the issues,
in Dow’s third-quarter earn-                Dow says it plans to rationalise                 worth more than $300m.                 and educating employers,
ings release in October.                    its upstream asset footprint in                     It is also selling some ma-         workers and OSHA offi-
   The company is also closing              Europe, the US and Canada by                     rine and terminal operations           cials on the safe use and
a selection of specialty chem-              adjusting supplies of siloxane                   and assets to Vopak for more           handling of diisocyanates
icals facilities, including plants          and silicon metal.                               than $600m.                            in the PU value chain.
making amines and solvents                     Dow expects to save more                         CEO Jim Fitterling said, ‘We           Guidance documents
in the US and Europe. Some                  than $300m by the end of                         remain well positioned to cap-         and presentations have
performance materials and                   2021 as a result. The cuts will                  ture significant growth as mar-        been highlights so far.
coatings assets will also close.            enable the company reach                         ket conditions improve.’

                           ADVANCED
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                                                    design and manufacturing of smart solutions for the business success of our customers

                                                                More information at:
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                                                                                        13                                            October/November 2020
AMERICAS NEWSLINES

American Excelsior spends Lubrizol invests for extra
on polyurethane processing flexibility and growth
Arlington, Texas – US-based     market demands for many of            Wickliffe, Ohio – Materials         er and market insights pro-
packaging company Amer-         our products.’                        specialist Lubrizol has invest-     gramme. ‘[This should help
ican Excelsior is investing        Increased demand means             ed in its thermoplastic polyure-    us] stay ahead of the evolving
in new equipment for foam       more work, Sadowski added.            thanes (TPU) business to sup-       needs in PPF and other sur-
processing at three separate    ‘[The plant expansions will]          port its growth in the surface      face protection end uses,’ the
locations. Plants in Norwalk,   create from 25 to 30 new              protection and paint protec-        company said.
Ohio, West Chicago, Illinois,   jobs and opportunities for our        tion film (PPF) markets. PPFs          ‘We’re at our best collabo-
and Sheboygan, Wisconsin        current associates,’ he said.         are designed to help maintain       rating with customers across
will all have upgrades.            Ken Starrett, VP of sales          vehicle surfaces.                   the value chain,’ said Gabe
   This part of a $5m plan      and marketing, said that the             The company, which de-           Rhoads, the company’s gen-
to expand production in the     company’s flexible foam divi-         clined to quantify the invest-      eral manager for engineered
company’s wood fibre and        sion would get a 330 ton die          ments, said it has increased        polymers. ‘We aim to create
flexible foam divisions.        press for PU in West Chicago.         capacity at its site in Montme-     smarter, and this investment in
   Terry Sadowski, the com-        A PE laminator and a cut-          lo, Spain. It has also expand-      TPU capacity, testing and pro-
pany’s president, said coro-    ter-sheeter are being in-             ed its testing capabilities at      cess technology enables us to
navirus had helped the          stalled at Norwalk, and She-          Brecksville, Ohio and Songji-       do more.’
company to accelerate in-       boygan is scheduled to gain           ang, China.                            He added the investments
vestments it planned at the     a new PE laminator.                      There have also been ex-         will help Lubrizol react faster
start of 2020. ‘The terrible       Starrett declined to give          pansions at the Spanish lo-         to customer demands.
pandemic has caused some        details of suppliers, but             cation. These improvements             As well as shortening reac-
markets to grow while other     promised more investment              should assist its programme to      tion times and making custom-
falter,’ he said.               and more employment.                  develop next-generation inno-       er needs more clear, Lubrizol
   ‘We have had the good           He said these would ap-            vations, the company said.          said the investments will help
fortune of seeing stronger      pear in later phases.                    Lubrizol has also expand-        make supplies of its products
                                                                      ed and improved its consum-         more secure.

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www.utech-polyurethane.com                                       14
ASIA NEWSLINES

China’s PU feedstock market
reflects double-digit decline
Beijing – China’s consumption        Chem366.com, the official                 lowered utilisation rates amid      spite the lockdown. Building
of polyurethane feedstocks,          data disclosure media outlet              the coronavirus pandemic. To-       and pipe insulation, automo-
including TDI, polymeric MDI,        of CPUIA, China’s Polyure-                soh’s MDI plant in Ruian, Zhe-      tive, mattress and couch seg-
monomeric MDI and polypro-           thane Industry Association.               jiang province, for example,        ments have been stagnant,
pylene glycol, shrank by 24%         It is the first time that China’s         suspended production in early       according to CPUIA data.
in the first half of 2020, to        PU sector has registered a                February, and did not resume           CPUIA expects the market
2.2m tons.                           decline in either consumption             operations until August.            to rebound over the second
   The country’s production          or production since records                  Refrigerators, freezers and      half of 2020. It attributes the
of these feedstocks also             started.                                  the cold chain are among the        change in fortune to a turn-
fell to 3.2m tons, a 27% de-            A number of diisocyanate               application segments that           around in demand and low in-
cline, according to data from        makers halted production or               showed moderate growth de-          ventory from H1.

Hongbaoli raises capital                                                        Slow start to Q1 2021 for Sheela
for rigid polyol expansion                                                      Noida, India – Sheela, In-
                                                                                dia’s only listed polyurethane
                                                                                                                   profitable, despite what it
                                                                                                                   describes as ‘very low’ sales.
                                                                                foam maker, generated sales           In its Australian business,
Taizhou, Jiangsu – Chinese              China’s cold chain sector               of INR2.7bn ($36m) in the          sales rose by 4% between
system house Hongbaoli               still has great potential. Refrig-         first quarter of 2021, 46%         the first quarter of 2020 and
plans to raise up to CNY509m         erated vehicles in the country             down on the 2020 period.           2021, to INR820m. EBITDA
($74m) through a private share       account for only 0.3% of total             EBITDA across the business         in the division increased by
placement. All of the funds will     freight lorries, while the share           fell by 55% to INR280m, from       63% to INR130m. This result-
be pumped into a new project         stands at up to 1% in the US               INR620m.                           ed from a change in the Aus-
with 120kT/year capacity for         and 3% in Germany.                            The company said that           tralian accounting standard.
polyether polyol at the compa-          The polyether polyol facili-            coronavirus restrictions in           In the second quarter of
ny’s site in Taixing, which is lo-   ty will take two years to com-             India meant that for the first     2020, Sheela bought Inter-
cated in the county of Taizhou,      plete and is expected to gen-              two months, there were             plasp of Yecla, which became
Jiangsu province, it said.           erate CNY1.3bn annual sales                hardly any sales in its larg-      its division in Spain. In the
   Currently, Hongbaoli has          when in full operation.                    est market. However, the           first quarter of 2021, sales in
150kT/year polyether polyol             The Taixing site is already             business controlled expens-        this division were INR600m,
capacity, and last year sold         home to 120kT/year of pro-                 es and managed to remain           and EBITDA was INR110m.
120kT. Growing downstream            pylene oxide, the capacity of

                           Wanhua and 3Trees
markets, especially along the        which may also be raised in
cold chain, will further boost       the future when the new proj-
the demand, it said.                 ect is on stream.

 Covestro’s record turbine partner in a joint lab
                                                                               Yantai, Shandong – Wanhua           mal choice and a must for both
 Beijing – Covestro has jointly      liability, and will begin small           and Chinese coatings maker          of our companies,’ 3Trees’
 developed the world’s larg-         batch manufacturing by the                3Trees have set up a joint in-      chairman and president Hong
 est PU wind turbine blades,         end of the year. Compared                 novation laboratory. The for a      Jie added.
 working with Chinese wind           with epoxy, polyurethane                  strategic partnership contract         Under the agreement, the
 turbine maker Goldwind              resin has lower viscosity, a              was signed at Wanhua’s head-        companies will conduct mate-
 and blade manufacturer              shorter perfusion time, and               quarters in Yantai in August.       rial research and application
 LZ Blades. The 64.2m long           there is no need for post cur-               ‘Wanhua and 3Trees share         development.
 blade has its spar cap, shear       ing. It will markedly raise pro-          the same beliefs in creating a         They will also join forces to
 web and shell all made              duction efficiency and make               better life,’ said Wanhua pres-     promote the products in areas
 through polyurethane per-           the manufacturers more                    ident Kou Guangwu at the            such as building interior and
 fusion. This is a first in the      competitive.                              signing event. ‘We will deepen      exterior waterproof coatings,
 global wind turbine industry,          Covestro and Goldwind                  our cooperation in concerted,       Wanhua said.
 Covestro claimed.                   now plan develop bigger                   innovative efforts to contribute       A PUD for waterproof coat-
    The blade has passed             polyurethane-based blades,                to environmental safety, the in-    ings was launched in May.
 static loading and dynamic          as used in offshore wind                  dustry’s benign development         3Trees, also known as SKSHU
 fatigue tests for long-term re-     farms.                                    and consumer health.’               Paint, claims to be the ninth
                                                                                  ‘[The partnership] is an opti-   largest coatings maker in Asia.

                                                                          15                                            October/November 2020
ASIA NEWSLINES

Sinomax slumps to operating loss
Hong Kong – Coronavirus               sales to customers in Vietnam.           team in the US. The facto-           coronavirus and the US-China
lockdowns and slower eco-             Sales from online customers              ry there started operating in        trade war, US importers have
nomic activity in the first half of   started to grow from the sec-            2017 and, Sinomax said, sig-         started to revisit their supply
2020 drove Hong Kong’s only           ond quarter.                             nificant losses were incurred        chains,’ the company said.
listed foamer, Sinomax, into             Coronavirus also hit sales            over the years. ‘In May 2020,        ‘[With production in China,
an operating loss of HK$3m            in the largest market, China,            our US factory started report-       Vietnam and the US, we can]
($380,000). In the same peri-         which fell by 39% to HK$554m.            ing an operating profit, mainly      arrange our production and lo-
od in 2019, it made an operat-        The decline in north America             resulting from various savings       gistics schedules with flexibili-
ing profit of HK$52.7m.               was 11.6%, with sales dropping           including materials and labour       ty to minimise the overall costs
   It was not all bad news in         to HK$485m. It cut costs in              efficiency,’ it said. ‘In June and   including production, tariff and
the half, however, as sales in        selling and distribution as the          July 2020, the reported oper-        transportation.’
Europe and overseas rose              volume of sales fell, and also           ating profit is consistently im-        It added that, based on the
from HK$24m in the first half         laid off staff where it could.           proving, and we hope that this       recent monthly results and
of 2019 to HK$51.7m in 2020.             The company added that it             trend will continue.’                increasing demand, it is op-
This was because of increased         has changed its management                  Following the outbreak of         timistic.

Mlily to expand in Spain and Arizona                                                                                Profits down in
                                                                                                                    first half at Wanhua
Nantong, Jiangsu – Chinese                Mlily declined to disclose           Less, which it bought last year.
mattress and pillow maker             additional details about the                Commercial real estate            Yantai, Shandong – Wanhua
Mlily is to expand production         new plant.                               agent Yan Chen of Colliers,          posted CNY2.8bn ($410m)
in Valencia, Spain. It is also            The new capacity in Spain            San Francisco said: ‘By manu-        net profit in H1 2020, down
building a new plant in Phoe-         will use Maxcolchon’s distribu-          facturing in Arizona, Mlily can      by 49.6% from H1 2019. Sales
nix, Arizona.                         tion channels. Its output will go        continue to provide high quali-      during the period dipped 2%
   The company has complet-           to the US and Europe markets.            ty products at lower cost to US      year-on-year to CNY30.9bn.
ed China’s regulatory process             Mlily is also leasing a sec-         consumers while expanding            Net assets fell 2.5% to
for outbound investment and           ond property in the US to ex-            its global footprint.’               CNY41.3bn, according to the
registered overseas compa-            pand its North American pro-                Mlily has been expanding          company’s half year report in
nies for both projects.               duction capabilities. It plans to        outside China for some time.         August.
   The Valencia project will be       employ 300 at the facility once          In addition to the new plants in       ‘The fall in net profit was
separate from any of the ex-          it is in full production.                Spain and the US.                    mainly caused by falling MDI
isting facilities of Maxcolchon,          The company will also cre-              It also has a number of plans     prices as well as lower pro-
the Spanish mattress brand it         ate synergy with the sales               for further developments in          duction and sales due to the
bought in 2017.                       network of Mor Furniture For             Serbia and Thailand.                 pandemic,’ the report said.
                                                                                                                      Wanhua’s monomeric MDI

  China’s refrigerator exports
                                                                                                                    and polymeric MDI prices in H1
                                                                                                                    2020 were both down from a
                                                                                                                    year ago. Monomeric MDI in
  up by two-thirds in August                                                                                        June, for example, showed a
                                                                                                                    30% decline.
  Beijing – China export-                In August, China’s pro-                                                      During the half year, Wan-
  ed 7.3m refrigerators and           duction of refrigerators, ex-                                                 hua produced 1.23m tonne of
  freezers in August 2020,            cluding freezers, improved                                                    polyurethane-related     prod-
  an increase of 68.9% on             by 29.7% from August 2019                                                     ucts, down 9% on the previ-
  August 2019. The value              to 9.1m units, according to                                                   ous year. It sold 1.24m tonne
  of these exports leapt by           the National Bureau of Sta-                                                   – a 6% drop. PU-related goods
  55.5% year-on-year to               tistics. Production over the                                                  generated 43% of the compa-
  $854m, according to Chi-            first eight months reached                                                    ny’s total revenue.
  na’s General Administration         55.4m units, down by 1.9%
  of Customs.                         year on year.
     Exports over the first              The country’s freezer                                                       News in Brief
  eight months of 2020                production has not slowed
  amounted to 42.4m units,            down. In August, it shot up                                                     OSIC starts plant
  up by 20.3% from the same           by 75.1% from a year ago,                                                       Zhangjiagang, Jiangsu –
  period in 2019. The total val-      to 3m units. Eight-month                                                        OSiC Performance Ma-
  ue of exports climbed 12.6%         production rose by 29% to                                                       terials has started up its
  year-on-year, to $4.9bn. It is      17.5m units.                                                                    second polyurethane ad-
  the first time this year that          You can read more about                                                      ditive plant. It has 18kT/
  China’s refrigerator export         the rigid polyurethane mar-                                                     year capacity for silicone
  has shown double-digit              ket in the feature that starts                                                  surfactant and 2kT/year
  growth across the board.            on page 19.                                                                     for waterborne adhesives.

 www.utech-polyurethane.com                                               16
FORANE
                                                          ®

FBA 1233ZD
THE FRIENDLY FOAM
BLOWING AGENT…
       Thermal Performance
       • Improved energy efficiency for cold chain uses
       • High insulation value for spray foam

      Low Environmental Impact
      • Low global warming potential (GWP = 1)*
      • Non-ozone depleting
      • VOC exempt. 1233zd is not a VOC

      Safety Performance
      • Non-flammable
      • Low vapor pressure

      Cost and Ease of Use
      • Utilizes existing processing equipment
      • Easy to use in liquid form

info.forane@arkema.com

*IPCC 5th Assessment Report WG1. Jan. 2014
Arkema has granted patents on 1233zd use in Foam
and Heat Transfer applications throughout the world.

Forane® is a registered trademark of Arkema.
© 2019 Arkema Inc.
All rights reserved.

forane.com
PRICING

Prices rise in tight
markets
       Report by Regina Sousa,                 of the supply available was for existing       ber because of a turnaround, and some
     Consultant, Tecnon Orbichem               contracts. In September, prices continued      sellers were holding stock to sell at high-

I
                                               to firm because of lower supply levels,        er prices. List prices firmed. In mid-July,
     socyanates markets continue to im-        and producers were accepting only exist-       prices went up again as sellers stood
     prove in all regions on the back of       ing orders for contract material. Exports      their ground. Most downstream players
     higher demand levels and persistent       were also coming in as domestic supply         had finished stocking up, and demand
     supply disruptions. Supply in North       tightened. In addition to the supply situa-    was low. Buyers also refused to pay in-
America has been long for pure and             tion, downstream markets showed good           creases. Traders under pressure to sell
crude MDI since 2019, but changed from         signs of recovery.                             dropped their prices. Internationally, TDI
September because of production issues.           TDI supply in North America has been        was short, and high levels of export deals
   In late August, market participants were    long for months, especially as demand          were heard to have taken place. This led
carefully watching the progress of two         was muted by the coronavirus pandemic,         to lower domestic supply, and further
storms in the Gulf of Mexico. The first,       but it was disrupted in July by BASF an-       price firming.
Marco, briefly intensified to hurricane sta-   nouncing a force majeure at its 160 kT/           Polyether polyols demand experienced
tus before making landfall in Louisiana as     year TDI plant at Geismar, Louisiana. The      steady growth again in August, following
a tropical storm. No major damage was          reason has not been disclosed. Coves-          months of muted demand. The call for rig-
reported. The second, larger storm, Lau-       tro also declared force majeure at its         id polyether polyols into construction and
ra, made landfall as a major hurricane on      220 kT/year TDI unit in Baytown, Texas         appliances was stable, and is expected
27 August along the Louisiana Gulf Coast.      in September. Initially, the company had       to remain unchanged. Demand into auto
It caused serious damage in southern           suspended operations in preparation for        applications is said to be improving, while
Louisiana, but was not as destructive as       the approaching storms, but afterwards a       it was also getting better for flexible poly-
forecasters had feared. Several ener-          lack of raw materials led the company to       ether polyols into furniture and bedding.
gy and petrochemical plants were shut          declare force majeure. This is reported to     Polyols prices firmed because of better
ahead of the storm’s arrival. Supply was       be continuing in mid October. TDI is now       demand, and TDI supply was shorter after
still disrupted in October because of the      reported to have been placed under sales       several producers announced price hike
hurricanes due to logistic constraints.        control due to lower supply. This means        initiatives for September as demand was
   Supply in the European MDI market           prices are seeing hefty increases, espe-       healthy and supply low.
tightened in August after several planned      cially as demand is healthy.                      The European polyether polyols mar-
and unplanned turnarounds. Covestro’s                                                         ket started to improve in June, and is now
new 200 kT/year MDI plant at Brunsbut-         Turnarounds tighten supply                     showing high levels of demand. Tight
tel, Germany, was expected to come on-            Prices in the European TDI market con-      supply is also pushing prices up as two
line in Q2, but rumours suggest the plant      tinued to firm after good demand levels        European plants are having production
is still offline. Covestro declared force      were seen in July and August. Automotive       issues. One buyer said the polyols supply
majeure at another MDI plant in Uerdin-        markets are finally pulling good demand        chain is currently empty because demand
gen, Germany on 23 July. Borsodchem’s          and this will add upward pressure on Eu-       has increased well beyond expected lev-
annual turnaround went ahead at the end        ropean prices. Supply began to tighten         els. A foam seller said it is receiving en-
of July and lasted until the end of August.    in August with turnarounds. Borsodchem         quiries from all over the world and from
At the end of May there was a turnaround       had its annual turnaround at the begin-        new customers because there has been a
at Huntsman’s 120 kT/year MDI plant in         ning of August. The plant is situated in Ka-   significant increase in demand for flexible
Rozenburg, Netherlands. The plant was          zincbarcika, Hungary, and has a total TDI      foam in all regions.
expected to be back online in July, but        capacity of 250 ktpa. Covestro planned            The Chinese flexible foam polyol mar-
had technical problems when the opera-         to have a maintenance turnaround at its        ket firmed in September owing to high
tor tried to restart. The plant remained off   Dormagen, Germany 250 ktpa TDI plant           feedstock costs and lower supply levels.
line until the end of July.                    in September, which was expected to last       The market also had good demand levels,
   In China, supply also tightened. Wan-       one month. BASF announced force ma-            further pushing prices up.
hua started its annual maintenance turn-       jeure on 1 September for a grade of TDI at
around in July, and BASF ChongQing had         its Ludwigshafen, Germany plant. The op-                 For more pricing information
an unplanned turnaround in the same            erator said unforeseen circumstances led           contact: Regina Sousa: regina.sousa@
month. Sellers were cautious about offer-      to the shut down of the T80 TDI grade.          orbichem.com or visit the Orbichem website
ing product in the market because most            In China, supply tightened in Septem-                   at www.orbichem.com

 www.utech-polyurethane.com                                        18
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