Keep Cool PU: THE KEY INGREDIENT FOR EFFICIENT INSULATION - Q-BOT: Urethanes Technology
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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
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
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 Website: www.UTECH-polyurethane.com LEADERSHIP Chairman: Keith E Crain Vice Chairman: Mary Kay Crain Simon Robinson President: K C Crain Editor Senior Executive Vice President: Chris Crain Vice President and Publisher: Brennan Lafferty Tel: +1 313 446 6768 Email: blafferty@crain.com EDITORIAL STAFF: 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 SUBSCRIPTION DETAILS: £20.00/€25.50 single copy; are reflected in the latest data from the polyurethane £90.00/€101.00. Subscription includes surface mail postage; air mail industry. EuroPUR reports that the furniture sector rates available on request. Four weeks’ notice required for change of address. Note: Subscription payments may be made using all stand- is booming, but the automotive sector is very slow. ard credit and debit cards at: UTECH-polyurethane.com/subscribe, However, our interviews with machinery makers show where you will find a range of different subscription options. 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 Email: customerservice@utech-polyurethane.com Print: Latitude Group Ltd www.latitudenorth.co.uk , Dorset, UK © 2020 Crain Communications Ltd. A member of All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the permission of the publisher. Registered office: 100 New Bridge Street, London EC4V 6JA United Kingdom. Registered No. 1576350 England. V.A.T. No. GB 577 6905 84 ABC audited www.utech-polyurethane.com 4
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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
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
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
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
14-16 September THE LEADING INTERNATIONAL EXHIBITION AND CONFERENCE FOR THE GLOBAL POLYURETHANES INDUSTRY LIMITED STAND SPACE LEFT Showcase your latest products and services to thousands of PU professionals. Secure your location today! ORGANISED BY: IN ASSOCIATION WITH: PARTNER: Stand and sponsorship enquiries, contact: Call for papers extended to 22 Jan 2021. Ed Rich, Sales Director For more information, contact: erich@crain.com / +1 (330) 869-0375 Clare Boldurmaz, Conference Producer clareb@boldurmaz.com LEARN MORE AT UTECHEUROPE.EU CONNECT WITH US: @UTECH_PU UTECH Polyurethane #UTECHEurope
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 POLYURETHANE EQUIPMENT THIS IS SAIP design and manufacturing of smart solutions for the business success of our customers More information at: www.saipequipment.it 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. NEW DATES JULY 28-30, 2021 ANNOUNCED! 2021 THE LEADING POLYURETHANE EVENT FOR THE CHINESE MARKET RETURNS TO SHANGHAI TARGET ONE OF THE LARGEST POLYURETHANE MARKETS IN THE WORLD To reserve a booth or inquire about sponsorships, contact Ed Rich at erich@crain.com or call +1 (330) 869-0375 WWW.PUCHINA.EU @UTECH_PU UTECH POLYURETHANE #PUCHINA #UTECHASIA Organized by: In association with: 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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