Asian PU Digest 04/2018 - Gupta Verlagwhile KCC and Wonik will account for 45 % and 5 %,...

New generation of metering machines

Prepolymer for cast elastomers

Interview with T. Roemer, Covestro

Polyaspartic coatingSo

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TECHNICAL MAGAZINE FOR THE ASIAN POLYURETHANES INDUSTRY

www.asian-pu-digest.com

Asian

DigestP U

4| 2018

FORANE®

FBA 1233ZD

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

INTRODUCING

forane.comForane® is a registered trademark of Arkema. © 2017 Arkema All rights reserved.

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

THE FRIENDLY FOAM BLOWING AGENT…

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3Asian PU Digest – VOL. 2, NO. 4

Editorial

Dear readers!

For this issue of “Asian PU Digest”, we have picked two interesting main articles that we believe you will find par-ticularly interesting:

First, we have chosen a comprehensive review by Denis Hicks about mergers and acquisitions in the global poly-urethane industry, covering key trends identified from over 120 publicly reported deals in the last two to three years. The formation of joint ventures as well as the arrival of Chinese companies on the global stage is also highlighted.

The second technical article by Bill Blackwell, John Blackwell and Brian Blackwell from Opus Technical Ltd. deals with the Vertifoam Variable Pressure Foaming (VPF-V) process. It presents insights into the operation of the process and shows how the VPF-V equipment and process have been developed and refined to produce a new range of foams that has opened up new profitable markets for the polyurethane foam industry.

Furthermore, we have conducted an interview with Dr. Thomas Roemer, head of Thermoplastic Polyurethanes (TPU), BU Coatings, Adhesives, Specialties at Covestro. Since January 2018, Roemer has taken over the responsibilities of Marius Wirtz, who changed to the position of Senior Vice President, PUR Commercial Operations APAC at the company.

In addition, the current issue includes reports on a new prepolymer for polyurethane hot-cast elastomers as well as on a new generation of metering machines. It also features a preview on the upcoming 11th edition of JEC Asia, which will be held for the second time in Seoul, Republic of Korea, in November 2018, as well as a sneak peak at CIFM / interzum guangzhou 2019. Of course, we also report on the current news and developments of the indus-try.

Enjoy reading!

YourAsian PU Digest Team

4 Asian PU Digest – VOL. 2, NO. 4

ContentNews .................................................................................................................................. 6

Hennecke introduces new generation of Streamline metering machines ............................. 12

Back to Seoul. JEC Asia 2018 gathers the composites industry in Korea ............................ 13

A new prepolymer for cast elastomers with unusual properties .......................................... 14

Global forecast for the cast elastomers market to 2023 .................................................... 16

From the board meeting of the IPTPF ................................................................................ 17

A glance at Covestro’s TPU business. Interview with Dr. Thomas Roemer, Head of Thermoplastic Polyurethanes (TPU), BU Coatings, Adhesives, Specialties ............... 18

Mergers and acquisitions in the polymer industry .............................................................. 22

B. Blackwell, J. Blackwell, B. BlackwellVertifoam variable pressure foaming (VPF-V): Full-scale production insights ....................... 28

interzum guangzhou 2019 to double in size ...................................................................... 34

Publication information & contacts

Reference to common names, trade names, names of goods, etc., does not warrant the assumption that such names are unrestricted and may therefore be used by anyone. Legally protected registered trademarks are often involved, even if these are not expressly shown as such.

Copyright and publisher’s rights:Articles signed with the author’s name or signature do not necessarily represent the editor’s opinion. Unrequested manuscripts will only be returned if return postage is provided. The publisher requires that the author possesses copyright and rights for use of all constituents of the material submitted, namely also for pictures and tables, etc which are also submitted. With acceptance of the manuscript, the right to publication, translation, re-prints, electronic storage in databanks, additional printing, photocopying and microfiche copying is transferred to the publisher. The magazine and all its contributions and pictures are protected by copyright. All use beyond the limits established by the law on author’s copyright is not permitted without approval of the publisher.

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Editors Dr. Isabella Kappner (Editor-in-Chief) Dr. Heinz B. P. Gupta Dipl.-Biol. Markus Linden Robert Müller Dr. Christine Rüdiger Dr. Stephanie WaschbüschEditorial assistant Patrizia Schmidt Tel. +49 2102 9345-12

Advertisement Indira Gupta, Julian Bäumer Tel. +49 2102 9345-15Subscription E-Mail [email protected] Tel. +49 2102 9345-0Layout Ulrich Gewehr Tel. +49 2102 9345-19

Frequency of publication 4 issues / year ISSN 2586-8713Bank accounts Postbank IBAN DE87 4401 0046 0413 1584 66 BIC PBNKDEFFCommerzbank IBAN DE33 3004 0000 0859 3915 01 BIC COBADEFFXXX

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2nd EDITION IN SEOUL


News

Industry News

BASF investigates establishment of second Verbund site in China

BASF is investigating the possibility of building a highly-integrated “Ver-bund” chemical production site in the South Chinese province of Guang-dong. On 9 July 2018, Martin Brudermüller, BASF’s Chairman of the Board of Executive Directors, and Lin Shaochun, Executive Vice Gov-ernor of Guangdong Province, signed a non-binding Memorandum of Understanding in Berlin, in the presence of Germany’s Chancellor An-gela Merkel and the Chinese Premier Li Keqiang. The Verbund site in Guangdong would be the company’s largest investment and would be operated under the sole responsibility of BASF. China – with a world market share of around 40 % – is the largest chemical market, and dominates the growth of the global chemical production. The invest-ment is estimated to reach up to USD 10 billion by completion of the project around 2030. The fi rst plants could be completed by 2026 at the latest. The site would ultimately be the third-largest BASF site world-wide, following Ludwigshafen, Germany, and Antwerp, Belgium.

www.basf.com

Huntsman opens formulations manufacturing facility in Vietnam

Huntsman has opened a multi-purpose facility at the Amata Vietnam Industrial Park, near Ho Chi Minh City, Vietnam. The site is a greenfi eld investment, will house the company’s Polyurethanes and Advanced

Sinochem and ChemChina set to merge

According to the Chinese news portal “Caixin”, China’s two state-owned chemical companies Sinochem and China National Chem-ical Corp. (ChemChina) are to merge into a new company with operations spanning the globe and annual revenues exceeding USD 100 billion. The government agency responsible for controlling China’s largest state-owned enterprises announced that Ren Jianxin, the long-serving chairman of ChemChina, will retire and that Sinochem Group Chairman Ning Gaoning will lead the consolidated chemicals company. Rumors of the planned merger have persisted for two years. While no clear plans regarding the structure of the new com-pany have yet been announced, sources close to Sinochem con-fi rmed that the merger has been decided upon, the report said. The merger is thought to be one of the Chinese government’s conditions for its support of ChemChina’s USD 49 billion takeover of Swiss agri-chemicals company Syngenta AG.

www.chemchina.com.cnwww.sinochem.com

KCC-led consortium to acquire Momentive Performance Materials

According to the news portal “BusinessKorea”, a consortium led by the Korean construction material producer KCC Corporation will acquire the US-based company Momentive Performance Materi-als, one of the world’s largest manufacturers of silicone, quarts and

BASF currently operates six Verbund sites: two in Europe (Ludwigs-hafen, Germany, and Antwerp, Belgium), two in the USA (Freeport, TX, and Geismar, LA) and two in Asia. The Verbund site in Nanjing, China, established in 2000, is a 50:50 JV with Sinopec, while the one in Kuantan, Malaysia, established in 1997, is a 60:40 JV with Petronas.

BASF is planning to build a highly-integrated chemical production site in the South Chinese province of Guangdong

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Materials businesses, and comprises manufacturing, R&D capabilities, a technical service centre, warehouse and distribution space, and a commercial offi ce. According to Huntsman, this is the fi rst manufactur-ing expansion investment outside China for its business in Asia Pacifi c. In addition to this facility, Huntsman has a distribution warehouse lo-cated in the inland container depot at Long Binh – Dong Nai Province, and a site in Hanoi which offers technical service and comprises ware-house and distribution space and a commercial offi ce.

www.huntsman.com

Tony Hankins, Huntsman’s CEO Asia Pacifi c and President of the Polyurethanes business, said: “Vietnam is one of the largest and fastest growing countries in Asia Pacifi c. For Polyurethanes, we’ve seen double digit growth rates for a sustained period and fully expect this to continue. At the new site, we’ll manufacture formu-lated systems for the footwear and automotive markets, rigid in-sulation foam used in construction and cold chain applications, and simulated wood for the furniture market. These products will be consumed primarily in Vietnam, with the balance being ex-ported to Cambodia.”


Invista to build adiponitrile facility in China

Invista is planning to invest approximately USD 1 billion in a 300,000 t/y adiponitrile (ADN) plant in China to meet the strong, local demand for the intermediate chemical. ADN is used to make nylon 6,6, fi bres and other speciality materials such as hexamethylene diisocy-anate (HDI) for polyurethane paints, coatings, and epoxy curing agents. Construction start is targeted for 2020 and production would begin in

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ceramics, for approximately USD 3 billion. The consortium is said to include Wonik Group, a Korean semiconductor raw material and equipment maker, and SJL Partners, a private equity fund manage-ment company. SJL Partners will pay 50 % of the acquisition price, while KCC and Wonik will account for 45 % and 5 %, respectively. Once the acquisition is completed, KCC will take over the silicone business and Wonik will integrate the quartz and ceramic businesses. SJL Partners will have a 50 % stake in both business divisions. With the acquisition, KCC is expected to increase its annual sales of sili-cone to KRW 2 trillion (~ USD 1.8 billion) from the current KRW 200 billion (~ USD 180 million), the report said.

www.kccworld.co.kr · www.momentive.comwww.sjlpartners.com · www.wonik.com

2023. Over the past fi ve years, the company has invested more than USD 600 million in China to support the nylon market, including a 215,000 t/y hexamethylenediamine (HMD) plant and a 150,000 t/y polymer plant at the Shanghai Chemical Industry Park (SCIP).

www.invista.com

Asahi Kasei to acquire Sage Automotive Interiors

Asahi Kasei has announced that it will acquire Sage Automotive Interiors, Inc., a US-based manufacturer of automotive interior mate-rial. Sage is headquartered in Greenville, SC, USA. The company was founded in 2009 as a spinoff from Milliken. Today it has approxi-mately 2,200 employees and production sites in the USA, Italy, Poland, Romania, Brazil, and China. Sage is a leading supplier of woven and knitted fabric for vehicle seats for automotive interiors. Asahi Kasei supplies Lamous microfi ber suede to Sage, and the two companies have a long-standing business relationship. Asahi Kasei said that as a medium-term strategic initiative, it is focused on expanding automotive-related business as a priority in the material sector. The cash transac-tion price is said to be approximately USD 700 million.

www.asahi-kasei.co.jp


Sabic to expand in China with proposed new plant

According to the news portal “Arab News”, Saudi Basic Industries Corporation (Sabic) is considering plans to build a petrochemical complex in the Chinese province of Fujian. The company has signed an initial agreement with the Fujian provincial government, which sets out a framework of cooperation for the world-scale project, said the report. Sabic said the agreement is part of a strategy to “diversify its operations, seek new investment opportunities and strengthen its position in the Chinese market.” The agreement did not contain any ‘definitive’ timeframes for the development, said the company. Sabic has already established a foothold in China through its existing 50:50 joint venture with the Chinese state-owned oil company Sinopec in an ethylene plant in the Tianjin Province.

www.sabic.com

Lubrizol celebrates 90th anniversary

Lubrizol, a Berkshire Hathaway company, celebrated its 90th anniversary on 28 July 2018. The company was founded in Cleve-land in 1928, moving to Lake County in 1931. The original Wickliffe location remains the site of Lubrizol’s world headquarters. Lake County is also home to Lubrizol’s Painesville facility. Lubrizol owns and operates 60 manufacturing facilities in 17 countries, as well as sales and technical offices around the world. The company has ap-proximately 8,700 employees worldwide. Revenues for 2017 were USD 6.3 billion.

www.lubrizol.com

Kuraray, PTT and Sumitomo establish JV for butadiene derivatives

Kuraray Co., Ltd., PTT Global Chemical Public Company Ltd., and Sumitomo Corporation have announced their decision to es-tablish a JV in Thailand for the production of butadiene derivatives. With Hemaraj Eastern Industrial Estate (Map Ta Phut Complex), Rayong in Thailand, as the candidate of the production site, the JV is scheduled to manufacture and sell high heat resistant polyam-ide 9T (PA9T) and hydrogenated styrenic block copolymers (HSBC). The name of the JV will be Kuraray GC Advanced Materials Co., Ltd. Kuraray holds a majority share of 53.3 %, while PTT and Su-mitomo hold minority shares of 33.4 % and 13.3 %, respectively. Kuraray said that it also plans to solely carry out production of 5,000 t/y of 3-methyl-1.5-pentanediol (MPD) at a production facility to be built on the same premises as the production facility for the butadiene derivatives. Kuraray will establish a wholly-owned sub-sidiary for the manufacturing and sale of the MPD under the name Kuraray Advanced Chemicals (Thailand) Co., Ltd. Both com-panies will be headquartered in Bangkok, Thailand, and will be led by Hiroshi Yamamoto.

www.kuraray.com · www.pttgcgroup.com · www.sumitomocorp.com

Arkema signs distribution agreements with TCP and Central Glass

Arkema has signed an agreement with Toyotsu Chemiplas (TCP) for the distribution of its Forane FBA 1233zd hydrofluoroolefin (HFO) foam blowing agent in several countries in Asia and Southeast Asia. The multi-year agreement covers sales into foam blowing applications in Bangladesh, Bhutan, Brunei, Cambodia, Hong Kong, India, Indonesia, Laos, Macau, Malaysia, Maldives, Mongolia, Nepal, Pakistan, Philip-pines, Singapore, Sri Lanka, Taiwan, Thailand, and Vietnam. In addition, Arkema K. K. (Japan) announced a new agreement with Central Glass Co. Ltd. for the exclusive distribution of its Forane 1233zd foam blowing agents and heat transfer products in Japan.

www.arkema.com · www.cgc-jp.co · www.toyotsu-chemiplas.com

BASF opens E-TPU production facility in Taiwan

BASF has launched a production facility for Infinergy expanded ther-moplastic polyurethanes (E-TPU) at its Changhua manufacturing site in Taiwan. According to the company, the material is the world’s first E-TPU. The closed-cell, elastic particle foam has a special combina-tion of properties, such as high rebound, low density, and durability over a wide temperature range, chemical resistance and low weight. The product is used in transportation, furniture, construction and sports equipment, such as a bicycle saddle created by Ergon, a cycling innovation company based in Koblenz, Germany. Ergon’s bi-cycle saddles are comprised of two shells functioning in isolation

A milestone in Lubrizol’s history is the invention of thermoplastic polyurethane. It was in 1959 when TPU was invented by Lubrizol’s predecessor company BF Goodrich (Patent of C. S. Schollen-berger US Pat. 2,871,218, 27 Jan 1959). Since that time, Lubrizol has continued to innovate the material, creating the first non-halo-genated flame retardant TPU and the first static dissipative TPU.

from each other in a sandwich construction, held in a floating arrange-ment by an elastomer damper made of Infinergy. In the three-wheeled concept vehicle 05Gen from Yamaha Motor Co., Ltd., the E-TPU was used in the tyres to enhance the overall riding experience, and its characteristic cellular structure contributed to its striking design. The material has also been adopted in construction, providing a safer and improved sporting experience on running track and playing fields, owing to the outstanding cushioning effect of the E-TPU parti-cles.

www.basf.com


Technology and Products

Huntsman launches TPU grades for footwear and films

Huntsman has showcased several new TPU technologies at China-plas 2018, which can be used to engineer film and sheet products: Krystalgran TPU is a family of aliphatic-based resins that can be extruded to create durable, light stable, protective films and barrier layers. Offering benefits in both optical and non-optical applications, films made from Krystalgran TPU can help safeguard display screens found in tablets and smartphones. They are also widely used to pro-tect car paintwork from chips and scratches; and in construction, flooring, footwear, graphic and textile applications. Krystalflex TPU is used for interlayer laminating films within the glass to create tough, hardwearing, glass and plastic laminates with better performance properties than pure glass systems. Compatible with glass, acrylic and polycarbonate, the TPU is said to offer good bond-ing between dissimilar substrates as well as good physical properties over a wide temperature range. Typical applications include contain-ment and security glass plus ballistic resistant laminates. Huntsman’s latest elastomer developments for the footwear industry are Avalon

Polyaspartic coating according to EN 13501 – 1 : A2-s1, d0

The German company Pultex GmbH, Simmerath, and the Dutch company Prokol Polymers & Compounds BV, Helmond, have jointly developed the non-combustible coating system FireGuard Pro 200 based on a polyaspartic resin. The product is certified ac-cording to EN 13501 – 1 : A2-s1, d0 and is used in structural fire protection. The certification guarantees that the coating will provide added fire protection to surfaces or substrates that are currently

55 AHG TPU and Avalon ABDI TPU. Avalon ABDI TPU is a new material with a fast cycle time, which is easy to demould while Avalon 55 AHG TPU is a new, soft soling material that offers improved slip-resistance on both wet and dry surfaces. With a nominal hardness of 55 Shore A, Avalon 55 AHG TPU can be used to make soft, thin, high definition, high grip parts, in a variety of colours.Other products presented at Chinaplas included Irogran K TPU, a family of polycaprolactone and polyether-based grades, Suprasec prepolymers, and Technothane hot-cast PU elastomer systems.

www.huntsman.com


People in the News

rated with class A1, A2 and B and will upgrade surfaces that are lower in fire protection required standards. The coating system does not support fire spread (A2), has literally no smoke development (s1), and does not develop flaming droplets or particles (d0). It is made of 90 % solids and can be used as a decorative and fire-safety painting system for internal and external use, e.g., for walls and ceilings, on façades and in tunnels. According to the manufacturer, nearly every existing substrate can be upgraded and protected using FireGuard Pro 200. This applies to external building façade panels that are made of calcium silicate as well as other mineral-like materials such as gypsum board, brick, concrete, ceramic including natural stone. The product is available in any RAL colour, is completely colourfast, abrasion resistant, water resistant, scratch resistant, and easy to clean. It can be applied easily with a paint roller and airless equip-ment.

www.pultex.de · www.prokol.nl

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Foamable TPV for door and window seals as alternative to polyurethanes

Teknor Apex offers new Sarlink TPV grades specifically for the production of low-density foams. These TPVs are said to exhibit the high resilience required for door and window seals and provide alter-natives to widely used polyurethane foams. Available from 40 to 70 Shore A, the Sarlink 8100 series can be foamed to a density of 0.20 g/cm3 range, which is comparable to those of PU foam used in door seals but is difficult to achieve with standard TPEs. As TPVs, they exhibit lower compressive set than standard TPEs, providing more of the resilience needed to withstand the repeated opening and closing of doors. The new compounds can be foamed using both chemical and physical blowing agents and, unlike urethane foams, are processed in standard equipment for thermoplastics. Another key difference from urethanes is that TPVs are recyclable, and do not present concerns about isocyanate monomer.Door and window profiles for sealing are typically three-layer struc-tures, with a skin layer providing protection and good appearance, the foam layer, and a rigid component such as polypropylene (PP).

Hulme new VP Commercial Operations at Jiangsu Maysta

Steve Hulme has been appointed as Vice President Commercial Operations of Jiangsu Maysta Chemical Co., Ltd. In this newly cre-ated role, Hulme will be responsible for the company’s global sales, marketing and technical service functions for the polyurethane addi-tives business. In addition, he will also serve as General Manager of Maysta International. Hulme has over 30 years of experience in the PU industry. For the bulk of his career, he held multiple positions at Air Products & Chemicals, including most recently the position as General Manager & Vice President, Polyurethane Additives, prior to the acquisition by Evonik Industries.

www.maysta.com

Personnel changes at BASF

Claudia Ruo Bing Huang, formerly Vice President, Business Man-agement, Isocyanates & Inorganics Asia Pacific, BASF’s Monomers division, has been appointed as Senior Vice President, Monomers, Asia Pacific, effective from 1 June 2018. She succeeds Dr. Ramku-mar Dhruva, who will serve as President, South & East Asia, ASEAN, and Australia/New Zealand regional division, effective from 1 July 2018. Furthermore, Fried-Walter Münstermann, President, Pro-curement, BASF SE, Ludwigshafen, Germany, will assume responsibil-ity for the “Task Force Process Simplification” effective from 1 Janu-ary 2019. He will be succeeded by Stefano Pigozzi, President, Monomers, BASF SE, Ludwigshafen. At the same time, Kenneth T.

The Sarlink 8100 series of TPVs adhere well to, and can be coex-truded with, other TPVs, TPOs, and PP. In addition, Teknor Apex sup-plies harder TPVs that serve as skin materials. The company can also custom-formulate foamable grades of TPVs or styrenic TPEs.

www.teknorapex.com

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Door and window profiles for sealing are typically three-layer structures.

FireGuard Pro 200 is used in structural fire protection indoors and outdoors


In the “Smart Machines” unit, all machine-specific digitalisation solutions will be managed and made available across segments and brands. It is divided into three pillars: machine technology (e.g. intelligent machines), connected solutions (e.g. Internet of Things) and data analytics (e.g. big data). The unit is part of the recently formed segment “Digital Service Solutions”.

Lane, President, Catalysts, BASF Corporation, Iselin, NJ, USA, will assume responsibility for the Monomers division. The Monomers division’s headquarter will be transferred from Ludwigshafen to Waterloo, Belgium, in the course of 2019. Dr. Peter Schuh-macher, President, Process Research & Chemical Engineering, BASF SE, Ludwigshafen, will assume responsibility for the Catalyst Division on 1 December 2018. He will be succeeded by Dr. Detlef Kratz, currently Senior Vice President, Corporate Technology & Operational Excellence, BASF SE, Ludwigshafen.

www.basf.com

Kruppa new Director Smart Machines at KraussMaffei

Effective from 1 July 2018, Dr. Stefan Kruppa took over as head of the recently established “Smart Machines” business unit of KraussMaffei Group. In his position as Director Smart Machines,

he will focus on the further devel-opment of new in-telligent systems and solutions for KraussMaffei’s in-jection moulding, extrusion and re-action processing t e c h n o l o g i e s . Kruppa joined the company in 2010 and was most re-cently responsible for machine tech-

nology. In 2015 he received his doctorate at the University of Duisburg-Essen with a thesis on “Adaptive process control and alternative injection concepts for injection molding of thermoplas-tics”.At the same time, Nadine Despineux has been appointed as Managing Director of the new Digital Service Solutions segment and member of the Executive Committee of KraussMaffei Group. Previously, Despineux served as Vice President Sales IMM (Injec-tion Molding Machinery).

www.kraussmaffei.com

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Building on the sale of over 70 Streamline machines in the fi rst generation, developers, manufacturers and raw material suppliers have been able to develop a variety of processes in the manufacture of fi bre-reinforced structural components (HP-RTM technology) and in surface fi nishing using polyurethane and polyurea coatings (Clear-RIM and clearmelt technology), leading to diverse serial applica-tions.

Hennecke said it is proud to have launched the fi rst series produc-tion of an HP-RTM component with the development of a composite leaf spring and to be one of the pioneers of this kind of innova-tive production pro-cesses. Particularly in the area of HP-RTM appl icat ions, the Streamline has be-come an industry standard, which is characterised by the fact that around 40 series applications are now using this machine system, said Hennecke.

According to the company, the pro-cess expertise and experience gained from consultations with development partners, customers and raw material sup-pliers have formed the basis of the machine confi guration for the new Streamline MK2. While the focus of the market launch of HP-RTM technology was still largely on research and development equipment, which was primarily used to design components for serial production, producers are now increasingly asking for standardised machines with high requirements in terms of availability, service and mainte-nance.

As many of the newly developed products have since entered mass production, this market trend is a logical consequence of the suc-cessful development activities, said the company. The MK2 provides Hennecke customers with a highly developed product, adapted to the process availability of serial applications in HP-RTM, ClearRIM and clearmelt processes. The second Streamline generation offers further benefi ts, e.g., its production fl exibility has increased thanks to the space-saving layout of the machine on a frame which is mo-bile and can also be lifted by crane. In addition, the Streamline MK2 is equipped with a wireless operator panel, which implements a lo-

cation-independent operation of all pro-cess parameters on the spot. Further-more, the heating and metering cabins are joined together using quick-locking mechanisms which allow for easy dis-mantling at any time. This ensures that all main components such as the high-pressure pumps can be exchanged very quickly.

In good timing for this year’s leading composite trade fairs in Shanghai (China Composites Expo 2018), Dallas (CAMX 2018) , Stut tgar t

(Composites Europe 2018), Seoul (JEC Asia 2018) and Tokyo (7th Highly-functional Plastic Expo Tokyo), Hennecke experts will be presenting the second generation of Streamline metering machines to the international trade audience. Delivery of the Streamline MK2 will start in January 2019.

www.hennecke.com

Hennecke introduces new generation of Streamline metering machines

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Shortly before market launch: the second generation of the Streamline metering machine

The German company Hennecke GmbH announced that with the experience gained from dozens of Streamline production systems and preliminary product developments, it was able to signifi cantly improve its high-pressure metering machines for HP-RTM and ClearRIM/clearmelt applications in the new generation MK2.


The 11th edition of JEC Asia will take place from 14 – 16 November 2018 at the Coex congress centre in Seoul, South Korea. According to the organiser JEC Group, after the record-breaking fi gures of the 2017 edition, that marked the move of JEC Asia from Singapore to Seoul, the event is returning to the capital city of the Republic of Korea with a strong programme, not only on the exhibition fl oor, but also in the conference sessions.

JEC Asia 2018 returns to Coex in Seoul

“We are very grateful for the support of the industry, government bodies, and academics, regarding the evolution of JEC Asia, that has led to the success of the platform. Indeed, 90 % of the show fl oor is already booked which bodes well for the preparation of the event,” commented Christian Strassburger, Events Director Asia for JEC Group. “On top of that, the event is truly international, as 45 % of the exhibitors are coming from outside Asia. JEC Asia will welcome pavilions from Germany, France, Italy, Japan, China and Singapore, as well as the major composite clusters in Korea,” he added.

Focus on the automotive industry

The future of mobility is an important topic for composite materials and JEC Asia will represent, promote and provide information about the increasing integration of composites in automotive developments.

Numerous programmes will be offered, such as a whole day confer-ence on Composites in Automotive, a Leadership Composites Circle, an Innovation Planet, showcasing parts, a B2B meetings programme, a JEC Innovation Award category and Composites tours (site visits of composite-related facilities).

Furthermore, for the second time, JEC Asia will host the International Carbon Festival, organised by KCTech and the Jeonju region, with top-notch conferences and international speakers.

Key fi gures for the year 2017:

• 230+ companies• 6,271 professional visits• 43 speakers• 42 countries represented• 12 JEC Innovation Awards• 400 B2B meetings• Two Composites Tours

www.jec-asia.events

Back to SeoulJEC Asia 2018 gathers the composites industry in Korea

The 11th edition of JEC Asia will be held for the second time at the COEX centre in Seoul, South Korea

Impression from the exhibition hall at JEC Asia 2017 Innovation Corner at JEC Asia 2017

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A new MDI-terminated prepolymer based on a polyester has been developed. It cures with 1,4-butanediol to give polyurethane hot-cast elas-tomers. These are characterized by high tear resistance and low compression set at the same time. Under catalysis, the prepolymer can be economically processed in short to medium pot life. This enables the production of elastomer solutions with hardnesses of 83 – 87 Shore A, covering a wide range of requirements. The post-curing of the resulting components can be delayed without any loss of mechanical properties.

The prepolymer Vibrathane 7085 is a development of the Urethane Systems business unit of Lanxess. This was established in 2017 following the acquisition of the US company Chemtura, a leading supplier of fl ame retardant and lubricant additives. Lanxess Urethane Systems sees itself as a systems provider and offers not only pre-polymers but also catalysts and curing agents for cast elastomers. The business unit is also a leading supplier of special aqueous polyu-rethane dispersions (PUD), as well as prepolymers and additives for coatings, adhesives and sealants with special focus on solvent-free and monomer-free systems. It has production facilities and application development centers in all major economic regions, including Brazil, the USA, India, China, Australia, Italy, and England. The focus of its

High tear resistance and low compression set

A new prepolymer for cast elastomers with unusual properties

innovation work, which is carried out in the global research, develop-ment and innovation center in Naugatuck, CT, USA, includes, for ex-ample, new technologies for the production of prepolymers with low free isocyanate contents (low free prepolymers, Adiprene LF grades) and the refi nement of blocked systems to improve the ease-of-use of polyurethane systems.

Focus on mechanical performance and economy

The development of the new prepolymer was prompted by inquiries from customers in the mechanical engineering and vehicle construc-tion industries, among others. The requirement was an MDI-terminat-ed polyester material, which can be processed under catalysis in short process times and at high throughputs into components with signifi cantly higher tear strength and lower compression set than, for example, the two standard prepolymers Vibrathane 8585 or 8587 established in series production. In order to meet all these needs, Lanxess Urethane Systems applied both the synthesis and design of the prepolymer and the processing conditions, such as stoichiometry, post-curing temperature and processing time. A further focus was set on the selection of a suitable catalyst and of a prepolymer polyol adapted to the catalyst.

Several hurdles had to be overcome in the development of the new casting prepolymer. Usually a low compression set and a high tear strength are hard to achieve at the same time, because both proper-ties are typically inversely related. High contents of catalyst improve the compression set, but other mechanical properties of the cured

Product solutions Vibrathane 7085 – Alternative 1(great compression set, best dynamics)

Vibrathane 7085(base)

Vibrathane 7085 – Alternative 2(best tear)

Properties

Stoichiometry 95 % 102 % 102 %

Processing conditions 115 °C mold,115 °C post cure/16 h

100 °C mold, 100 °C post cure/4 h

115 °C mold, 115 °C post cure/16 h

Compression set 15 % 26 % 42 %

Trouser tear 227 pli (39.8 kN/m) 441 pli (77.3 kN/m) 490 pli (85.9kN/m)

Dynamics, tan δ/Tc 0.029/130 °C 0.061/100 °C 0.063/100 °C

Tab. 1: Three elastomer variants based on Vibrathane 7085 in comparison

Fig. 1: Application example: PU coated pipelines

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High flexural fatigue resistance

Vibrathane 7085 is designed as a general purpose prepolymer. De-pending on the processing conditions, it produces casting resins with compression sets from 13 % to 42 % according to ASTM D395 method B (70 °C, 22 h). Tear strength according to ASTM D1938 (tear strength, Trouser), for example, is between 27.2 kN/m and 85.9 kN/m. Compared with standard poly urethane elastomers of similar hardness, the compression set is about 1.7 times lower and the tear resistance up to three times higher. This is precisely the special advantage of the prepolymer. Added to this is the low fatigue tendency of the resulting elastomers under cyclic loading. Thus, the flexural fatigue strength is at a high level. For example, tests accord-ing to ASTM D3629-99 (flex fatigue resistance) showed Texus flex values of more than 170,000 cycles at a stoichiometry of 102 % at deformations of 11 %, 18 %, 35 % and 45 %. Furthermore, the elon-gation at break values of 571 % to 691 % are significantly higher than for comparable standard products.

Higher throughput of parts, lower energy consumption

By using the catalyst, the reaction of the prepolymer with the chain-extender speeds up. Therefore, the parts can be demoulded faster and the tools can be refilled earlier, resulting in a higher throughput. In addition, the DoE optimized processing conditions allow to shorten the post cure duration which results in a higher productivity and re-duces energy consumption. This improves sustainability of the pro-duction and opens up for cost savings. Pot life can be kept very short at 90 s, but can also be extended to around 4.5 min, for example to achieve uniform tool filling for more complex component geometries.

The curing behavior tests also showed that the processor can delay the time between curing and post curing without degradation in tear resistance, compression set and other mechanical properties of the final elastomer product. This allows to collect demoulded parts first and then to cure them together, increasing flexibility and manufactur-ing efficiency.

Compression set and tear resistance can be individually optimized

One advantage of the new prepolymer is that by varying the stoichi-ometry and the processing conditions, both the compression set and the tear strength can be individually optimized and thus adapted to specific requirements of an application (tab. 1). The other mechani-cal properties remain largely unaffected. For example, the tear resist-ance can be increased to 85.9 kN/m (alternative 2), whereby this material variant still has a compression set of 42 %. In contrast to this is an elastomer with a compression set of only 15 % and excel-lent dynamic properties (alternative 1). Its storage modulus G’ is stable over a wide temperature range of 70 – 150 °C. The loss factor tan δ, which represents the ratio of loss modulus to storage modulus

elastomer such as modulus of elasticity, rebound resilience or hard-ness normally deteriorate. Furthermore, the use of a catalyst leads to faster processing, meaning less time remains for tool filling.

High purity and linearity of the prepolymer

The new prepolymer is matched to a catalytic processing. It is manu-factured under precisely defined conditions, in such a way that hard-ly any side reactions occur and a product with higher linearity and purity is produced. This means, among other things, that the pre-polymer reacts faster with the chain extender during curing and the cast elastomer shows better mechanical properties.

The processing was optimized with the aid of statistical design of experiments (DoE). This is a method for planning and investigating experiments that aims to describe the influence of important factors on a process with a minimum of effort and tests. In case of the pre-polymer processing, stoichiometry (91 – 105 %), post-curing tem-perature (85 – 130 °C) and post-curing time (4 – 24 h) were selected as factors because they have the greatest influence on tear resist-ance and compression set. In addition, the effect of the catalyst and delayed post-curing on the properties of the elastomer was analyzed.

Fig. 2: Application example: Mining screen

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Dr. Nitin [email protected] Research Chemist Global Research & Development and Innovation CenterUrethane Systems business unitLanxess AG, Cologne, Germany

Fig. 3: Urethane Systems’ services include FEA, CAD calculations, thermal and material fatigue analyses.

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and describes the energy conversion into heat during an oscillation, is low at 0.029 at 120 °C to 130 °C. This means less heat generation in the elastomer. The material is therefore particularly suitable for dynamically highly stressed components such as wheels of forklift trucks.

Wide range of applications

The application potential of the new prepolymer ranges from applica-tions in industry and mechanical engineering to vehicle construction, mining and opencast mining to wheels, tires and rollers (fig. 1, 2). Elastomers that are particularly tear and cut resistant and exhibit a high resistance to bending cycles could be used, for example, in the production of die-cutting blankets and anvils. On the other hand, there are material variants with low compression set and high tear strength for bushings in torque rods of trucks, buses and trailers. The elasto-mer materials optimized in their dynamic properties could prove themselves in the production of robust, noise-damping shaking screens for ore processing thanks to their high abrasion resistance.

Outlook

Lanxess Urethane Systems is currently working with customers to make first applications of the new prepolymer ready to series produc-tion. The partners are extensively supported in all steps of compo-nent development – from the initial concept idea to material selection, design and tool design right through to the start of series production. For example, Lanxess contributes its expertise in customer-specific material formulation, in the processing of hot-casting elastomers and

in component design (structural analysis) (fig. 3). In addition, the experience gained with Vibrathane 7085 will be used to develop fur-ther products, such as a polyurethane prepolymer based on a hybrid polyester system.

According to a new report from Markets and Markets, the global cast elastomers market is estimated at USD 1.20 billion in 2018 and is projected to reach USD 1.52 bil-lion by 2023, at a CAGR of 4.8 % between 2018 and 2023. Based on type, the market is segmented into hot cast and cold cast elastomers. Hot cast elastomers are esti-mated to lead the segment in 2018 owing to their wide usage in applications which re-quire high abrasion resistance and high load-bearing capacity. The segment is also pro-jected to grow at the highest CAGR during the forecast period owing to its low price,

thermal stability, durability, and impact resist-ance. Industrial applications, e.g., machinery parts, rollers, and industrial wheels, are es-timated to be the largest segment of the global cast elastomers market in 2018, and are projected to retain this position during the forecast period. Other growth sectors for cast elastomers include automotive and transportation, mining, oil and gas, amongst others. The Asia-Pacific region is estimated to be the largest as well as fastest-growing market during the forecast period. Its growth can be attributed to the shift in manufactur-ing facilities of cast elastomers from western

regions to countries in Asia-Pacific, espe-cially China and India, by various end-use in-dustries, mainly automotive and transporta-tion, industrial, and mining.

The study is titled: “Cast Elastomers Market by Type (Hot Cast, Cold Cast), End-use Indus-try (Automotive & Transportation, Industrial, Mining, Oil & Gas), and Region (North Amer-ica, Europe, APAC, Middle East & Africa, South America) – Global Forecast to 2023”.

www.marketsandmarkets.com

Global forecast for the cast elastomers market to 2023


In 2016, the Japanese International Polyurethane Technology Foundation (IPTPF), supported by Inoac Corporation, provided two research grants to Prof. Yoshihiro Yamashita from the Department of Apparel and Fashion Design at Osaka Seikei College and Prof. Hiroto Muraka-mi from the Graduate School of Engineering at Nagasaki University.

On 30 August 2018, a board meeting of the IPTPF and the second research report meeting were held at the Inoac head offi ce to dis-cuss the results achieved so far and on how to proceed with the research. IPTPF board members present at the meeting were: Koji Ito (President and Chairman) and (in alphabetical order) Bungo Ochiai (Director), Eisuke Yamada (Director), Hiroshi Uyama (Direc-tor), Iwao Ishino (Director), Kenjiro Miwa (Director), Kikujou Yamash-ita (Director), Mutuhisa Furukawa (Director), Shintaro Ideta (Direc-tor), and Toyohiko Okina (Director). The abstracts of the research reports are given below.

“Water resistant PU/EVOH nanofi bre fi lter made from aqueous solution”, Prof. Yoshihiro Yamashita

When nanofi bres are used for fi lters, their water resistance is im-portant. The nanofi bre production of EVOH in a state close to the aqueous system was realised by combining it with PU. The incor-poration of polyurethane (PU) emulsion dispersed in water was

investigated, to improve the adhesion be-tween the nanofibres and the non-woven fabric of the substrate, and the rubber elas-ticity to the nanofi bres themselves. Since PU fi rmly adheres to the non-woven fabric of the base material, peeling of the nanofi -bres from the base material does not occur, and excellent PM 2.5 particle removal is possible even with very small nanofi bre ba-sis weight. It was found that nanofi bres can be produced by using a coil type electro-spinning apparatus.

“Development of Polyurethane Elastomers Crosslinked by Polyrotaxanes Containing Aminocyclodextrin”, Prof. Hiroto Murakami

Polyurethanes (PUs) crosslinked by polyrotax-anes (PRXs), which consist of α-cyclo-

dextrin (CyD) and poly(ethylene glycol) (PEG), contain both mechanical crosslinks and chemical crosslinks. This infl uences the physical prop-erties of the PUs, because it is possible to form multiple crosslinks from one CyD in the PRX. It is well-known that the reactivity of amino groups towards isocyanate is much higher than that of hydroxy groups. Therefore, a PRX consisting of monoamino-CyD and PEG was synthesised to decrease the formation of multiple crosslinking from one CyD.

A PU crosslinked by the PRX containing the monoamino-CyD was prepared by a modifi ed prepolymer method (PU-A). The thermal and physical properties of the obtained PU-A were compared with those of two PUs (PU-M1 and PU-M2) crosslinked by PRX containing half-methylated CyD in different inclusion ratios. Swelling ratios in tolu-ene, DSC measurements, dynamic viscoelastic measurements and tensile tests show evidence of the decrease of chemical crosslink-ing in PU-A.

www.pu-zaidan.jp/en/

From the board meeting of the IPTPFResearch reports of Prof. Y. Yamashita, Osaka Seikei College,

and Prof. H. Murakami, Nagasaki University, presented

Back (f. l. t. r.): Shintaro Ideta, Director IPTPF; Toyohiko Okina, Director IPTPF; Kikujou Yamashita, Director IPTPF; Iwao Ishino, Director IPTPF; Eisuke Yamada, Director IPTPF; Bungo Ochiai, Director IPTPF. Front (f. l. t. r.): Kenjiro Miwa, Director IPTPF; Koji Ito, President of IPTPF (Chairman and moderator); Prof. Hiroto Murakami, Nagasaki University; Prof. Yoshihiro Yamashita, Osaka Seikei College; Mutuhisa Furukawa, Director IPTPF; Hiroshi Uyama, Director IPTPF.

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Since January 2018 the Thermoplastic Polyurethanes (TPU) business within Covestro is under new leadership. Dr. Thomas Roemer has taken over the responsibilities of Marius Wirtz, who changed to the position of Senior Vice President, PUR Commercial Operations APAC at Covestro. PU Magazine had the chance to speak to Dr. Thomas Roemer about his new role and the innovations in the TPU portfolio.

Asian PU Digest:Could you please tell our readers something about your previous professional career?

Thomas Roemer: Of course. I have been working for Covestro and its predecessor company Bayer for al-most 20 years in Germany and abroad. With my role at TPU, I can personify what makes Covestro so successful since its IPO in 2015: A start-up mentality with broad experience.

I hold a PhD in business administration and have been fortunate to experience a variety of functions in the commercial environment: from Sales and Purchasing, through Market-ing and Product Management, to Chief of Staff and Managing Director.

During this time my family and I were stationed in Germany, the USA, Serbia and now in Hong Kong. I was primarily responsible for our polyurethanes raw materials, which is why I am particularly excited about the complementary expe-rience in the forward-integrated specialty business of TPU.

Asian PU Digest:What is your current position and what is your current fi eld of activity within Covestro?

Thomas Roemer: Since the beginning of this year, I have been the head of our Ther-moplastic Polyurethanes unit responsible for Covestro’s global TPU business. The special feature of our unit is that we can combine the best of both worlds for our customers: On the one hand, the back-bone of a blue chip company with more than 14 billion Euros in annual sales and its potential in terms of e.g. industry coordination, product scope and sourcing. On the other hand, we have all the functions – such as our production or application technology – un-der one roof in a dedicated TPU unit worldwide and are so particu-larly resourceful.

A glance at Covestro’s TPU business Interview with Dr. Thomas Roemer, Head of Thermoplastic Polyurethanes (TPU), BU Coatings, Adhesives, Specialties

Asian PU Digest:How is Covestro’s global TPU business cur-rently positioned?

Thomas Roemer: We strive for a particularly customer-oriented lineup. So we have three regional organiza-tions in APAC, EMLA and NAFTA that bundle our sales, marketing and application develop-ment. In addition, there are global production and innovation platforms.

We produce globally at six locations: in the US, Germany, India, China, Taiwan and Japan – the latter together with our local JV partner DIC Corporation . We are the TPU manufac-turer with the broadest global coverage and a balanced regional breakdown. This network enables us, for example, to make best use of our innovation, the support of global custom-ers or our own employee development.

Including our current expansions in the US and Taiwan, our production facilities reach a global capacity of approximately 100,000 tons per year. This makes us one of the top players in the global TPU industry.

Of course, we have the ambition to accompany the growth of our customers and to support them with innovations and product avail-ability. For the coming years, we currently expect annual demand growth of around 6 %.

Asian PU Digest:The broad TPU market is currently experiencing high growth rates, with a focus on Asia. What is your strategy to participate in this growth?

Thomas Roemer: As I said, we estimate the annual global growth at around 6 %. With the acquisition of the Taiwanese Uretech in 2007, Covestro has proven good foresight and was able to build up confi dence with fast-growing customers in Asia early on.

Dr. Thomas Roemer is the head of Covestro’s Thermoplastic Polyurethanes unit and responsible for the company’s global TPU business.

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kusen, but in Hong Kong. What role does Covestro play in the Asia-Pacific region as a TPU supplier, also in the face of smaller local suppliers with frequently fluctuating qualities?

Thomas Roemer: It is clearly our aspiration to be the most Asian Multi-National Com-pany (MNC) in the TPU industry. Again and again, our customers certify that we have maintained the decision-making speed from the Uretech acquisition, which is so important in Asia. This is how we manage to be the first to “have a foot in the door” among local top companies.

The competitive pressure is of course very high, especially in China, due to the large number of suppliers. However, we see this as an incentive to keep our costs under control and, in the context of in-novations, also to focus on scalability.

In addition, quality expectations continue to rise, and there are still several product groups that need to be fully imported to Asia. So here we still have a lot of potential to set ourselves apart from the compe-tition as an MNC through local production and sales force.

Finally, the network of subsidiaries of Asian companies worldwide, especially from Japan, China and South Korea, is also growing. Here, of course, we want to further expand our role as a preferred partner with a truly global product and innovation platform.

Asian PU Digest:On 1 June 2018, Markus Steilemann took over the duties of long-standing CEO Patrick Thomas at Covestro. In various statements he has already shown himself open to acquisitions. Recently, there have been some major acquisitions in the European TPE industry. Perhaps also for the TPU business at Covestro there is an acquisition on the

In Japan, we already formed a joint venture with DIC in 2000 and have since become a leading local manufacturer.

We expect that the Asian market will continue to be the global growth driver, also because it already accounts for nearly two thirds of de-mand. However, after some rather restrained years, we are currently seeing a strong increase in demand also in Europe and America.

Our strategy to participate in this growth is based on the pillars of innovation, the exploitation of our global network and the assurance of the fastest possible decisions.

A current example how this strategy unfolds is our product launch of fibers made out of Desmopan TPU and polyamide that we have pre-sented in May during the “Techtextile North America”. Many custom-ers could already convince themselves of the advantages in context of haptic feeling, abrasion resistance and durability.

Asian PU Digest:Asia is the largest TPU market in the world. As a result, it is not sur-prising that your desk is not in the corporate headquarters in Lever-

Shoe upper, printed with TPU (filament process)

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Textile application with the right look and feel

Uppers of sports shoes made using knitting technology is one of the most revolutionary moves in the shoe industry. It allows less material per single pair of shoes, and a fancy design through one single knitting process. Covestro is eager to take one step forward to develop this unique, innovative TPU fiber that can be seam-lessly integrated into the state of the art knitting technology for footwear and apparel applications.

Samples of knitted TPU fabrics, showing the variety of possible colors and patterns

The fiber is extremely uniform and shiny and has a unique haptic feeling. It enables design freedom while bringing add-on technical functions, and is also suitable for automated production. Thanks to the intrinsic properties of TPU and polyamide, Covestro´s fiber is highly abrasion resistant and more durable compared with com-mon polyester fibers.

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agenda that would allow to expand the portfolio either by new prod-ucts or new technologies?

Thomas Roemer: We as Covestro also want to be bolder in acquisitions and are con-stantly looking for interesting acquisition targets. Our focus is on businesses and products that make our portfolio less vulnerable to economic ups and downs. Our coatings and adhesives raw materials and specialties segment, which also includes the TPU business, is already relatively independent of the economic cycle. Important criteria for the selection are not only the size and the pur-chase price, but above all the possible added value, in combination with synergies and the congruence with our strategic goals. At this stage, however, there are no concrete plans.

Asian PU Digest:Let’s talk a little bit about sustainability. There have been TPUs on the market for many years, some of which are based on renewable raw materials. While many other suppliers rely on vegetable raw materi-als, Covestro has a very special technology, the “Dream Production” with a production line for CO2-based polyurethane precursors at the Dormagen site. How do these raw materials find application in TPUs?

Thomas Roemer: Covestro wants to expand its raw material base with carbon dioxide (CO2) as a new building block for polyurethane raw materials. Our company is at the forefront in this field and, thanks to a pioneering innovation, is now producing its first product components, polyols. CO2-based polyols are already being marketed for the production of soft polyurethane foam especially for use in mattresses and uphol-stered furniture. In addition, the new polyols are suitable for the pro-duction of TPUs. We are currently working on a Desmopan product group based on these cardyon polyols. Desmopan samples were produced on an industrial scale and are in the stage of market intro-duction.

Asian PU Digest:The topic of additive manufacturing is currently one of the major theme factors in the polymer industry. Every day we receive new success stories. Nowadays everything is printed from pie to the ar-tificial kidney to the complete automobile. Covestro positioned itself in this market early in 2011 with Luvosint, a laser-sinterable TPU. Since then, the product has been continuously evolving and new ap-plications have been tapped - covering recent exciting applications such as “Air Skin” in a recent issue of TPE Magazine. How does Covestro continue to work with TPUs for additive manufacturing, and how do you generally see the opportunities for thermoplastic elasto-mers in additive manufacturing?

Thomas Roemer: Processing 3D TPUs has advantages such as good ply bonding and comparatively low component anisotropy, as well as a relatively low processing temperature that allows a more cost-effective process

and reuse of non-sintered powder material. Covestro continues to work on the further development of TPU powders, which can be processed both in classic laser sintering and in high-speed sintering.

In addition, TPUs are well suited for fused deposition modeling, where strands of thermoplastic are layered. Here, too, we are currently optimizing suitable material solutions.

In terms of component properties, TPUs offer a number of advan-tages over thermoplastics currently used in 3D printing: They stand out among others. Due to their high flexibility and toughness, they are stable over a wide temperature range and are particularly resist-ant to abrasion. Due to their variable chemical composition, TPUs are available in a wide range of hardnesses from elastic to hard-tough.

At the same time, all of these products are chemically so closely related that they are well compatible with each other, so that in multi-material printing about hard housing parts can be produced with di-rectly integrated elastic seals.

Asian PU Digest:In March 2018, Covestro launched the commercial production of fiber-reinforced semi- finished products, e.g. films and sheets of con-tinuous fiber reinforced thermoplastic composites. In addition to polycarbonate, TPUs have also been mentioned as possible matrix materials for impregnating the carbon or glass fibers used. How is the state of affairs here? Are there already TPU composites and where are they used?

Midsole made from laser-sintered TPU

Elastic cube made from sintered TPU

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Orthopedic shoe last printed from TPU filament

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Thomas Roemer: The use of TPU as a matrix material for our continuous fiber rein-forced thermoplastics (CFRTP) allows us to create a unique combina-tion of very different properties. Thus, for example, for lightweight applications, the stiffness or elasticity, but also the damping proper-ties and thus, the acoustics are targeted in very wide ranges.

In addition, an appealing haptic and very good chemical resistance are of great importance for many applications. Due to these special combination possibilities, TPU composites represent the logical extension of our growing product portfolio in the field of continuous fiber reinforced thermoplastics. We have already developed TPU composites and the results of our previous analyzes are very prom-ising.

We see great potential for using these materials in a large number of applications, in particular in the sports and consumer goods industry, where we are currently working together with various customers on development projects.

Asian PU Digest:New business opportunities are also opening up for digitization, which is being driven forward at Covestro. A cooperation with Alibaba has recently been launched and by 2019 already around EUR 1 billion is to be realized on new company-owned digital marketplaces. How can the TPU business unit profit from this digitization strategy and what are the benefits for your customers?

Thomas Roemer: All digitization activities are bundled at Covestro in the comprehensive Digital@Covestro program. Our customers and we can benefit from it in three ways, at the following levels:

1. “Digital Operations” improve cost efficiency through data integra-tion, such as the predictive maintenance of facilities.

2. “Digital Customer Experience” enables new sales channels, such as the collaboration we have with Alibaba or our digital chemical trading platform planned for this year.

3. “Digital Business Models” are designed to create additional cus-tomer needs by offering new services, such as online configura-tors to determine the best product selection.

TPU is firmly integrated in the digitization program of our company. Personally, I see the greatest leverage in digital business models, as we can expand our years of innovation experience with numerous data points collected based on new technologies.

Asian PU Digest:A company motto of Covestro is: “To make the world a brighter place”. How can TPUs contribute to this?

Thomas Roemer: TPUs can make an important contribution to realizing this vision of our company. On the one hand, we promote innovation and growth with TPU products that benefit society and reduce its impact on the environment. Examples are our current sampling of TPU with cardyon – our polyols based on CO2 – or even classic applications such as fire hoses or medical devices. Also very useful for blind and visually im-paired people are tactile floor guidance systems made of TPU, which provide, for example, at streets or in train stations for easier orienta-tion.

On the other hand, within Covestro we are enabling the development of great, new product classes that will make our lives even more worthwhile in the future, for example in the areas of 3D printing and composites. Regardless of whether they are processed as a sales product or internally in the areas mentioned: TPUs make their contri-bution to maximizing carbon productivity; in the spirit of our mission: To make the world a brighter place.

Asian PU Digest:Covestro has been the driving force behind the founding of the TPE-Forum, the new network of thermoplastic elastomers experts, and has been heavily involved ever since. What is the significance of Covestro’s involvement in this network?

Thomas Roemer: As one of the first and world-leading manufacturers of TPUs, which belong to the material group of TPEs, we feel closely associated with this material group. We therefore identify strongly with the objectives of the TPE-Forum, which is primarily aimed at establishing TPEs as an independent group of materials and expanding the awareness of this important but under-represented class of materials.

We also actively contribute to standardization work and promote the development of special training programs, materials data bases, ex-pert networks and specialist conferences.

Asian PU Digest:Dr. Roemer, thank you very much for the interview!


The last 2 – 2½ years has seen some major activity in M&A related to the polyurethanes industry. Changes are underway and M&A activity is one source of data to assess what strategic directions are being taken. This article looks at trends identifi ed from over 120 publicly re-ported deals in the last 2 – 3 years. These are relentless consolidation, focused restructuring around core activities and access to growth markets. The arrival of Chinese companies on the global stage is also highlighted.

1 Introduction

Mergers and acquisitions (M&A), public offerings (PO), equity invest-ments and joint ventures (JV) represent strategic decisions. They are a way to improve a company’s performance in a particular market by obtaining technology, geographical access or infl uence over the value chain through vertical or horizontal integration. Large deals have the potential to consolidate industries and change the balance of commercial infl uence between customers and suppliers. As such, these deals can be useful in giving an insight into the long term trends in an industry.

Many publically available reports cover mergers and acquisitions (M&A) in the chemicals sector in general. For example, Deloitte Global reckons that mergers and acquisitions in the chemicals indus-try in 2017 amounted to USD 46 billion with 636 deals. This is not far off the averages for 2010 – 2017 but down from the peaks of 2014 – 2016 which saw several megadeals go through.

However, few summaries are published related to the polyurethanes industry despite some important activity over the last 2 – 3 years.

Mergers and acquisitions in the polymer industry

Focus on polyurethanes

The aim of this paper is to highlight some of the key trends in M&A related to polyurethanes, primarily as a way to see the direction that the industry may take over the next 5 – 10 years. The formation of joint ventures (JV) is also included. The data are drawn from over 120 deals that were publically announced or closed in the last 2 ½ years (see tab. 1). This is not a complete list, as it is drawn from mainly western sources, but it still highlights some interesting trends.

2 Strategic rationale for deal making

A breakdown of the deals by market segment is shown in fi gure 1. It should be noted that the number of deals does not imply any sig-nifi cance but tends to relate to the degree of consolidation of the segment. For example, the high number of deals in coatings, adhe-sives, sealants and elastomers (CASE) is probably related to the relatively fragmented nature of this market.

From an overall perspective, fi gures 2 and 3 show the main ration-ales for the buying and selling parties in the deal based on judge-ments and publicly available information where it is available.

AdditivesPolyolInsulationBio-chemicals

Auto OEMCASESystem houseRestructuring

Auto suppliersFlexible foamOther

ConsolidationOther/unknownTechnology

Private equityentranceGeographical diversi�cation

Market diversi�cationHorizontal/vertical integration

ExitDistressed sale

Focus on coreOther/unknown

Fig. 2: Polyurethane industry buyers’ rationale

Fig. 3: Polyurethanes sellers’ rationale

Fig. 1: Breakdown of M&A/JV deals by market segment


Lotus to add to the acquisition of Volvo in 2010. Geely has also taken equity positions in AB Volvo Trucks and Daimler.

Chinese automotive suppliers are also active. Ningbo Jifeng in-creased its stake in Grammer, Key Safety Systems (Ningbo Joy-son Electronic Systems) acquired Takata’s airbag business in a distressed sale and Shanghai Shenda Co. formed a JV with IAC for interior trim and acoustic parts.

China is also important in the disruptive area of electric vehicle (EV) technology. Western automotive companies are eager to access the largest and growing EV market in China. So China’s decision to im-pose manufacturing quotas on low emission vehicles prompted a flood of Western/Chinese joint ventures to produce electric vehicles in China. These JVs are required by foreign entities if they are to be allowed to participate in the market. Ford, Renault and VW all an-nounced deals in the middle of 2017.

Highlight 2: Corporate restructuring makes raw material suppliers more focused on polyurethanes

Raw material suppliers have always been particularly active in restruc-turing to enhance their value proposition to shareholders and recent years have been no exception. The overall outcome is to increase the focus on polyurethanes as a core business.

Dow and DuPont completed its USD 130 billion merger and are in the process of splitting into three divisions with polyurethanes being in the ‘New Dow’ materials science company. This ‘New Dow’ is look-ing to increase its equity share in its JV with Aramco, Sadara, to 50 %.

Covestro, a polyurethanes and polycarbonate company, recently announced it will divest its US polycarbonate extruded sheet business as non-core.

Huntsman sold its European surfactants business and then floated its titanium dioxide business after merging it with Rockwood Hold-ings. Huntsman then proceeded with downstream acquisitions in polyurethanes (spray foam (Demilec) and a rigids system house in the UK (IFS)).

BASF consolidated the adipic acid and polyamide chain by buying Solvay’s business for USD 1.6 billion.

Finally, Lanxess acquired Chemtura and Solvay’s phosphorus busi-nesses.

Some of this restructuring was heavily influenced by shareholder activism. In this category are Huntsman’s attempted merger with Clariant (which ended with Sabic taking a nearly 25 % equity stake in Clariant), AkzoNobel’s floatation of its specialty chemicals busi-

Most buyers in the survey were either existing companies primarily interested in market consolidation or private equity companies seeing an opportunity to invest. Together they account for over half of the deals. Diversification (by market or geographical expansion), value chain integration (horizontal or vertical) and the acquisition of technol-ogy were the other main reasons for investing.

The majority of sellers (77 %) were interested in exiting their business completely or disposing of non-core activities. Relatively few sellers were forced into a distressed disposal. Other reasons for deals in-clude compliance with anti-trust requirements following a major ac-quisition, or raising cash via a public offering to optimise a company’s finances by paying down debt.

This simple overview provides a high level conclusion on priorities in the polyurethanes industry. By diving deeper into sectorial trends, a much richer impression of the various priorities in each market seg-ment emerges.

Here we look at the top four highlights.

Highlight 1: Automotive industry – indicators of disruption ahead?

Probably the most sophisticated market for polyurethanes is the automotive industry. It is undergoing an unprecedented rate of change. Geographically, growth is moving to Asia. It is under pres-sure for its impact on urban air quality and global warming. There are new business models emerging, such as autonomous vehicles and car sharing. Technology is moving away from the internal com-bustion engine to fully electric or hybrid drive with, as yet, an un-known energy carrier (be it hydrogen, synfuels, fuel cells or a battery charging infrastructure). Finally, its customers are trans-forming. Millennials and the connected generation are joining the customer base and increasingly regard car ownership as undesir-able.

The industry response to this has been consolidation. Mitsubishi has joined the Renault-Nissan partnership, and Renault-Nissan is report-edly discussing merging into one legal entity to compete with VW and Toyota as the world’s number one car manufacturer. Toyota has taken an equity share in Mazda. PSA consolidated the European market and enabled General Motors to exit by buying the Opal and Vauxhall brands.

Amongst tier 1 suppliers, consolidation was also evident. Following the flotation of Adient from Johnson Controls, Adient acquired Fu-turis from Clearlake Capital and Lear took over Antolin’s seating business. Freudenberg acquired the remaining equity in Vibracous-tic from Trelleborg.

China is increasingly important globally. Geely is emerging as the Chinese global car company. It acquired Proton of Malaysia and


Tab. 1: Recent publicly announced mergers, acquisitions and joint ventures in the polyurethanes industry. (M = merger, A = acquisition, JV = joint venture, PO = public offering, E = equity)

Seg-ment Acquirer Target Value Date Comments Type

Addi

tives

Valtris Specialty Chemicals (HIG Capital)

Akcros (GIL Investments) Apr 16 Specialty chemicals and additives A

American SecuritiesChromaflo Technologies

(Arsenal Capital)Dec 16 Colourants A

Evonik Air Products USD 3.8 billion Jan 17 Additives A

Jordan Group Borchers (Vectra Group) Jan 17 Change in private equity ownership A

Chem-Trend (Freudenberg Group)

Rubio Trading & Consulting Mar 17 Mould release Eastern Europe A

Lanxess Chemtura EUR 2.4 billion enterprise value Apr 17 Fire retardants and specialty PU additives and systems A

Milliken Keystone Aniline Apr 17 Combines colourants businesses A

Azelis Chemcolour NZ Ltd Jul 17Specialty chemical company distributing and manufacturing

in Australia/New ZealandMomentive Performance Prod-

ucts (MPM Holdings Inc)USD 100 million Sep 17 SEC filing with intention to IPO (postponed) PO

LanxessSolvay US Phosphorus Additives

BusinessNov 17 US and Asian additives market, including fire retardants A

Clariant Tiangang Auxilliary Co Ltd Feb 18 JV to produce process and light stabilisers in Cangzhou, Hebei Province JV

Auto

mot

ive O

EM

PSA/Iran Khodro & PSA/SAIPA EUR 400 million Jun 16 2 JV’s in Iran to produce 200,000 Peugeots and 200,000 Citroëns JV

Renault Nissan Mitsubishi Motors USD 2.3 billion Oct 16Nissan acquires a controlling interest with 34 % of equity.

Mitsubishi joins the Renault Nissan allianceE

Zhejiang Geely Holding GroupProton Holdings Bhd including Lotus

CarsUSD 235 million May 17 Geely acquires a 49.9 % stake in Proton and 51 % of Lotus shares A

Volkswagen / Anhui Jianghuai Automobile Group

May 17 50:50 JV to produce new energy vehicles JV

PSAGeneral Motors European Division

(Vauxhall & Opel Brands)

USD 2.3 billion (Opel and Vaux-hall for USD 1.3 billion and GM Europe Finance for USD 995

million)

Jul 17PSA becomes Europe’s 2nd largest car producer after VW and re-enters

US marketA

Zhejiang Geely Holding Group Terrafugia Jul 17 US start-up building flying cars A

Renault Group / Jinbei (Brilliance)

RMB 1 (plus RMB 750 million capital injection)

Jul 17JV to develop China’s light commercial vehicles market plus electrified

LCVsJV

Toyota MazdaUSD 450 million (Toyota takes 5.05 % of Mazda equity, Mazda takes 0.25 % equity of Toyota)

Aug 17JV to jointly develop a US production site, electric vehicles and after

technologyE

Renault, Negin Khodro, IRDO Aug 17JV to produce 150,000 cars/y in Saveh, Iran. Renault 60 %, Negin Khodro

20 %, Industrial development and renovation organisation 20 %JV

Renault-Nissan/ Dongfeng Motor

eGT New Energy Co (Dongfeng Motor) Joint venture Aug 17 JV to produce electric vehicles in China JV

Ford / Anhui Zotye Automotive Anhui Zoyte Automotive Joint venture Aug 17 50:50 JV to produce electric vehicles JV

Zhejiang Geely Holding Group AB Volvo Trucks (Cevian Capital) USD 3.3 billion Dec 178.2 % equity in AB Volvo making it the largest shareholder.

Volvo Trucks owns 45 % of China's Dongfeng commercial vehiclesE

Zhejiang Geely Holding Group Daimler USD 8 billion Feb 18 9.68 % stake in Daimler E

Auto

mot

ive s

uppl

ier

BASF Yinfan Automotive Coatings (PRC) Jun 16 Automotive refinish coatings China A

Freudenberg Vibracoustic (Trelleborg) Jul 16Automotive elastomers. Acquired 50 % of shares it did not own already

from TrelleborgA

Adient (Johnson Controls) USD 8 billion Oct 16 Market flotation PO

Ningbo Jifeng GrammerUSD 64 million for 9.2 % equity stake

Feb 17 Hastor family retains 20 % stake via Cascade International Investments E

Lear Corp Grupo Antolin (Seating Division) USD 307 million Feb 17 Antolin to focus on car interiors by selling its seating division A

Futuris (Clearlake Capital) Kongsberg Automotive Mar 17 Head rest and armrest division in Milan, TN, USA A

Key Safety Systems (Ningbo Joyson Electronic Corp)

Takata Corp USD 1.59 billion Jun 17 Acquisition following bankruptcy of Takata USA and Japan. A

Adient Futuris Group (Clearlake Capital) USD 360 million Aug 17 Consolidation of seating and interior trim market in USA and Asia. A

SGL ACF BMW Nov 17SGL acquires BMW’s 49 % equity in SGL Automotive Carbon Fibers GmbH

& Co. KG. BMW retains 18.3 % stake in SGL Carbon SE.E

Shanghai Shenda Co Ltd / IAC Auria Solutions Ltd Feb 18JV to produce soft trim and acoustics products in China.

Shenda take 70 % equity and IAC 30 %.JV

Adient / Boeing Feb 18JV to produce aircraft seats. Adient will hold 50 % of the equity and

Boeing the rest. Market expected to grow from USD 4.5 billion in 2017 to USD 6 billion in 2026.

JV

Bio-

chem

ical

s

Black Diamond Capital Manage-ment and Brightwood Capital

AdvisorsVertellus (USA) USD 454 million Oct 16 Bio-chemicals E

Cargill BBT Biobased Technologies May 17Consolidates Cargill’s BiOH polyol range with BBT Agrol polyols based on

soy and cashew nutshell polyols.A

PTT Global Chemicals Myriant USD 6.5 million 2017 Investment in bio-chemicals R&D E

Polyo

l

Rokita / IRPC Jan 15 50:50 JV for polyols and systems in Thailand JV

Arsenal Capital Petersen Chemicals Apr 16 Majority stake. Specialty polyols (especially for bedding) A

Saudi Aramco Novomer Up to USD 100 million Dec 16 Polyols & carbon dioxide technology A



Polyo

l

Perstorp Polialcoli Srl (Polioli SpA) Jul 17Producer of polyols for coatings (NEO, TMP, TMPDE) which was under

receivership.A

PTT Global Chemical, Sanyo Chemical, and Toyota Tsusho

Aug 17JV to produce 103 kt/y polyols and 20 kt/y systems in Thailand. Equity will be PTTGC 82.1 %, Sanyo 14.9 %, Toyota Tsuho 3 %. PTT will also

build a 200 kt/y PO plant based on Sumitomo’s process.JV

Ningwo New Materials Jan 18 IPO for Chinese polyol producer to raise capital for expansion & R&D PO

CASE

ICP Group (Audax Private Equity) 3M USD 150 – 200 million Jan 16 PU foam adhesive A

ICP Group (Audax Private Equity)Fomo Inc (FLM Holdings (Hago

Chemotechnik))Apr 16 Adhesives & sealants A

IPS Corporation (Nautic Partners)

Integra Adhesives Apr 16 Special adhesives A

SynthomerHexion Perfomance Adhesives and

Coatings (Apollo Global Management)USD 226 million Jul 16 A

Manali Petrochemicals (India) Notedome (UK) GBP 13.5 million Oct 16 Elastomers A

Hongbao Li Xionglin New Material Technology USD 12 million for 12 % stake Dec 16 TPU films (currently in doubt) A

Stahl (63 % Wendel Group) Eagle Performance Products Dec 16 Coatings (inc. fire retardant PU coatings) A

RPM International Arnette Polymers LLC Jan 17 80 % equity. Additives for epoxy and PU formulations in the USA A

RPM International Prime Resins Jan 17 Epoxy and PU sealants, soil stabilisation and structural repairs in the USA A

Schweitzer-Mauduit International (SWM)

Conweb Plastics LLC (Leucadia National Corporation)

USD 295 million Jan 17Industrial films and netting. Compliments acquisitions of Argotec (2015) and Delstar (2013) which will combine into the Advanced Materials and

Structures Segment of SWMA

Beijing Comens New Materials Huasen Rubber and Plastics USD 131 million Jan 17PU adhesives manufacturer acquiring rubber technologies to expand into

automotiveA

TeknosFeyco Treffert Group (Looser Holding AG)

Apr 17 Consolidation of wood coatings businesses A

Axalta Valspar Wood (Valspar) USD 225 million in revenues Apr 17Axalta enters OEM and aftermarket for wood coating.

Divestment required for the merger of Sherwin-Williams and ValsparA

Axalta Spencer Coatings Group May 17Spencer Coatings was the largest, independent supplier in the UK of high

performance industrial coatings, including Acothane PU coatingsA

Henkel Sonderhoff May 17 Leading supplier of adhesives and sealants based on PU and silicone A

Philippe Michaud Allrim May 17 Specialised formulations and RIM components. SME change in ownership A

Sherwin-Williams Valspar USD 13.3 billion Jun 17 Coatings A

TrinseoAPI

(Applicazioni Plastiche Industriali SpA)Jun 17

Access to soft-touch TPE, EVA, PVC, biobased-TPE and -TPU and 2K PU formulations

A

RPM International (Euclid Group) Key Resin Company Jul 17Acquisition of family owned coating company in North America focusing

on floors, walls and concrete repair marketsA

HB Fuller Adecol Ind. Quimica Limitada (Brazil) 8 x 2016 EBITDA Jul 17 Largest manufacturer of industrial adhesives in Brazil A

Sika ABC Sealants Aug 17 Access to Turkish market. Products included PU sealants and foams A

HB FullerRoyal Adhesives & Sealants (American Securities LLC)

USD 1.58 billion cash-free/debt-free basis. 9.1 x 2017 EBITDA

Sep 17 Complimentary addition in high value adhesives market A

PPGThe Crown Group (High Road Capital

Partners and Charter Oak Capital Partners)

Sep 17 Includes Crown’s polyurea coatings business A

ICP Group (Audax Private Equity Group)

Master Coating Technologies Nov 17 Included architectural coatings and PU adhesives and sealants A

Sika Emseal Joint Systems Dec 17 Sika acquires US market leader for structural expansion joints A

Polytek Development Corp (Morgenthaler Private Equity)

CMI (Califormia Medical Innovations) (Morganthaler Private Equity)

2017Mid-sized specialty chemicals acquisition to expand the range of materials offered (latex, PVC, TPE). Polyteck already supplies PU casting systems

M

Pidilite Cipy USD 15 million Jan 18 Acquisition of 70 % shareholding. Indian floor coatings market A

Alberdingk Boley Synthomer Leuna Jan 18Take over of the Leuna site for PU and acrylate dispersions

following acquisition of Hexion PACA

Flex

ible

foam

Arsenal Capital (USA) Pacific Urethanes (USA) Mar 16 Specialty bedding products. Merged into Elite Comfort Solutions A

Arsenal Capital (USA) Elite Foam (USA) Mar 16 PU foam for bedding. Merged into Elite Comfort Solutions A

Arsenal Capital (USA) Hickory Springs (USA) Apr 16 PU foam for bedding. Merged into Elite Comfort Solutions A

Sheela Foam USD 70 million Dec 16 IPO PO

Hilding AndersHilding Anders

(Arle Capital Partners equity stake)Dec 16

Bedding in EU, Russia & Asia. KKR expected to be the majority share-holder

E

Innocor (Bain Capital Private Equity)

Innocor (Sun Capital Partners) Mar 17 US bedding market A

Monomoy Capital Partners Klaussner Home Furnishings Feb 17 US furniture market A

Target Caspar SleepUSD 75 million as part

of a funding roundMay 17 Move into ‘digital sales’ with Caspar’s bed in a box concept E

Woodbridge FoamPartner (Conzetta) Aug 17Woodbridge acquires 51 % of the equity it did not own in the Chattanooga JV. Releases FoamPartner from contractual limitations in the US market.

A

FoamPartner (Conzetta) Otto Bock Kunststoff Aug 17Consolidation in technical foams, predominately automotive applications. Includes all equity in the existing JV in China. Otto Bock to concentrate

on med-tech sector with 20 % EQP investment prior to IPOA

FXI (One Rock Capital Partners)FXI (MatlinPatterson Global Advisers LLC and Black Diamond Capital Man-

agement LLC)Sep 17 Change in private equity ownership A


ness to private equity so that it could focus on coatings and Evonik’s acquisition drive which included Air Products PU additives business.

Asian companies participated in this restructuring as well. ChemChi-na bought KraussMaffei and announced it will float it on the Shang-hai stock exchange. Shandong Ruyi bought Invista from Koch Industries, an important supplier of PTMEG and BDO and the owner


Indu

stry

rest

ruct

urin

g

Innospec Huntsman USD 225 million Aug 16 European surfactants business A

Clariant Huntsman “Merger of equals” May 17 Failed. Creation of a USD 14 billion specialty chemicals group

PTT Chemical Vencorex (Perstorp) EUR 31.37 million Jun 17PTT increased its stake in Vencorex from 91 % by buying 34 % of equity

as part of the process initiated with Perstorp in 2014A

Venator Huntsman Approximately USD 946 million Jul 17IPO and secondary PO of titanium dioxide business. Huntsman retains approximately 55 % of the equity

PO

NittaChemical and Industrial Products Division of Toyo Tyre and Rubber

Approximately USD 34 million Aug 17 Includes PU related railway, construction and waterproofing materials A

DowDuPont Sadara (Aramco/DowDuPont) Aug 17

Non binding MOU. DowDuPont to acquire 15 % of JV with Saudi Aramco for Sadara, giving Dow a 50 % equity. This will occur within 18 months after DowDuPont separates into its three businesses and Saudi Aramco

passes a credibility reliability test

E

DowDuPont Dow and DuPont USD 60 billion Sep 17 Merger with the intention to separate the businesses JV

Indu

stry

rest

ruct

urin

g

BASF SolvayUSD 1.6 billion (cash and debt

free). 7 x EBITDASep 17

Acquisition of polyamide business including adipic acid production. Closing Q3 2018 after formal approvals.

A

Shandong Ruyi Investment Holding

Invista Apparel and Advanced Textiles (Koch Industries)

Oct 17Includes Lycra brand and production of PTMEG, BDO & THF.

(Invista retains IP on PTMEG, BDO and THF with the intention to license)A

Sabic Clariant Jan 18 Acquisition of 24.99 % shareholding E

Covestro (Bayer) USD 2.2 billion Jan 18Bayer reduces its stake in Covestro from 24.6 % to 14.2 %. Bayer Pension Trust still retains 8.9 % of Covestro shares.

PO

Carlyle Group GICAkzoNobel Specialty Chemical

BusinessUSD 12.6 billion (enterprise value)

2018AkzoNobel will concentrate on its Paint and Coatings Business.

Net proceeds of approximately EUR 7.9 billion will go to shareholders.A

Plaskolite LLC Covestro US PC Sheet Business Mar 18Covestro divests non-core US polycarbonate sheet production. Plaskolite

becomes the largest US plastic sheet supplier for PC, PMMA, PET-G.

Insu

latio

n

Accella (Arsenal Capital) Quadrant Urethane Technologies Mar 16 Spray foam division A

Tenex Capital Partners SES Spray Foam Sep 16 Spray foam A

RPM International (DAP Group) Clayton Corporation (Foam Division) Jan 17Two-component spray foam for gap filling and insulation in DIY

and professional marketsA

Accella (Arsenal Capital) Covestro (Spray foam business) Feb 17 US PU spray foam market A

Kingspan Panelmet, Columbia Purchase of 51 % equity Apr 17 Access to Columbian market A

Firestone Building Products Gaco Western Products Q1 17 US PU Spray foam and silicone roof coatings A

Sekisui Chemical CoSolfan Wiz Co Ltd (part of DiverTech subsidiary of Toyo Tyre & Rubber Co)

Absorption type company split and transfer

Aug 17Rigid foams business unit (metal faced panels, spray foam insulation, and cryogenic insulation) in Japan and Thailand. Toyo to focus on rubber and

tyre business. A

KingspanIsoleste Constructivos Isotermicos,

BrazilPurchase of 51 % of equity Sep 17 Access to Brazilian market with four production sites. A

Icynene (FFL Partners LLC) IsolatFrance Sep 17 US group accessing French EU spray foam market. A

Carlisle Companies Inc Accella (Arsenal Capital) USD 670 million Oct 17Integration of Accella’s rigid spray, roofing and tyrefill and PU systems

into the Carlisle Construction Materials Business A

KingspanBrakel, Netherlands (majority owned

by Gimv investment company) Nov 17

Kingspan Light and Air Division, acquisition of building roof light, fire safety and ventilation

A

Kingspan Balex Metal, Poland Dec 17 Insulation panels and boards A

KingspanSynthesia, Spain (Huurre & Poliure-

thanos)Dec 17 Panel manufacturing in Spain and Panama and PU systems A

Icynene (FFL Partners LLC) Lapolla Industries Inc USD 160 million, including debt Jan 18 Consolidation of US spray foam market A

Pruszynski Florian Centrum Jan 18 PU and PS insulation panels

Huntsman Demilec (Sun Capital Partners) USD 350 million Mar 18Vertically integrating into PU spray foam. Deal valued at 11.5 x EBITDA

(7.5 x EBITDA after synergies)A

West Roofing Systems Inc Foam Application Inc Mar 18 Consolidation of US sprayfoam market A

Syst

em

hous

es

Bodo Möller Chemie (D) Huntsman Dec 15 Egyptian systems house for epoxies and PU A

Baalbaki (Egypt) Polysystem (Italy) Jan 16 70 % of equity of rigids system house A

Huntsman IFS Chemical May 17 MDI based system house in the UK A

Othe

r

Rampf Innovative Polymers (USA) Jul 16 PU tooling and modelling products A

Rampf Apex Composites(CAN) Apr 16 Composites & resins A

ChemChina KraussMaffei (Onex Private Equity) USD 925 million Jan 16 Polymer / PU processing equipment A

Capvis Equity Partners Hennecke (Adcuram) Q2 2016 PU equipment A

Mearthane Products Elmco Tool Inc Oct 17 PU part supplier acquires precision machining services company AHennecke

(Capvis Equity Partners)OMS Dec 17 PU equipment A

of the Lycra brand. Thailand’s PTT is gradually acquiring Vencorex from Perstorp, has interests in bio-based materials and recently announced a JV to make PO and polyol with its Japanese partners.

Restructuring inevitably implies that companies decide to exit polyu-rethanes related activities and concentrate on other markets. These include Johnson Controls (floated Adient), Air Products (exited PU


3 Where next for M&A?

Looking forward, it seems reasonable to assume that the world is 1 – 2 years from a peak in the business cycle, depending on the re-gion, which may make business leaders and private equity more cautious in engaging in new deals. However, there are some funda-mental drivers which will still make M&A and JVs attractive strategic options.

In the automotive sector, it seems that the rate of change in technolo-gies and markets will mean that this industry is in a state of constant flux. The impact of new technology vehicles will drive the development of new combinations of solutions to make these vehicles more attrac-tive to consumers. Car interiors, in particular, may be subject to chang-es as new requirements on vehicle usage, noise and vibration and light weighting which will need expensive R&D to resolve.

China will continue its “Made in China 2025” and “One-Belt-One-Road” initiatives. Its chemical and downstream industries will become increas-ingly global with better access to overseas markets. Western compa-nies may well need to merge to stay competitive and retain control over unique know-how in the face of China’s obvious ambitions.

Even without the impact of China, the economic forces driving con-solidation are also ever present and more likely to be exercised dur-ing difficult economic conditions. Increasingly larger chemical plants imply fewer suppliers so some companies will have to transform or become gradually less competitive.

Private equity may well increase its presence. Stock markets and shareholder activism can be disruptive and private equity offers a way to transform and restructure without these pressures.

And finally, there will always be distressed sales, small and medium sized companies that wish to sell out to a larger group as well as large private equity funds looking for secure cash flows. All this means that well placed companies make money, but only if they stay alert.

additives), Bayer (gradually floated Covestro), Koch Industries (exited Invista) and Solvay (exited US phosphorus and adipic acid/polyamides chain). In foams, Otto Bock decided to sell its technical foams busi-ness to concentrate on medical applications.

Highlight 3: Prominent companies expanding geographically and into new segments

Certain segments of the polyurethanes market are naturally devel-oped by small and medium sized companies which become attractive to their larger acquisitive competitors.

Rigid foams and CASE markets are good examples and so Kingspan continued its acquisition drive with four deals covering buildings and insulation in Europe and South America. In the CASE market, Axalta, Henkel, H.B. Fuller and Sika also expanded into new geographies and markets by buying local market leaders or specialist companies.

Highlight 4: Private equity bet on US economic recovery but also cleverly combined acquisitions

About 40 % of the deals listed involved private equity. The recent economic recovery in the USA seemed to be an important reason for private equity interest in polyurethanes.

Audax made three acquisitions in the CASE market. Arsenal Capi-tal combined acquisitions in specialty polyols, flexible foam and bed-ding companies. Arsenal Capital also added the spray foam busi-nesses of Covestro and Quadrant to Accella and then sold it to Carlisle. Icynene (FFL Partners) combined the spray foam busi-nesses of Lapolla and Isolat France. Bain Capital acquired In-nocor in bedding.

In other examples of private equity combining businesses, Clearlake Capital combined automotive suppliers under Futuris and sold out to Adient, and Capvis equity partners acquired Hennecke and fol-lowed that by acquiring OMS in the machinery sector.


The Vertifoam Variable Pressure Foaming Machine (VPF-V) is now estab-lished in full commercial production. This paper gives insights into the operation of the VPF-V process and shows how the VPF-V equipment and process have been developed and refi ned to produce highly successful new foam that has opened up new profi table markets for the PU foam industry. The paper explains how a number of both formulation and equip-ment developments have given improved cell structure and block yields. It explains how a unique high pressure technology has been applied to the process giving multiple advantages, and how a brand new technique was employed to allow extended runs of highly reactive formulations without the problems normally associated with build-up. Formulation savings will be explained, as well as the effi ciency of peeling large diameter, near per-fect round blocks, to produce a new range of foams that can outperform polyester fi bre in both cost and performance for bedding and furniture applications.

B. Blackwell, J. Blackwell, B. Blackwell

Vertifoam variable pressure foaming (VPF-V):

Full-scale production insights

Bill Blackwell

[email protected]

Technical Sales Director

John Blackwell

Engineering/Technical Director

Brian Blackwell

Chairman

Opus Technical Ltd., Hurdsfi eld, Macclesfi eld, Cheshire,

United Kingdom

www.opustechnical.com

All fi gures and tables, unless otherwise stated, have

been kindly provided by the authors.


1 Introduction

The Vertifoam-VPF process, the development of which was described in a previous paper for the PFA in November 2016, has now been in commercial operation for the last 12 months at our customer Shee-la Foam’s headquarter facility just outside Delhi in India.

Sheela Foam, one of the leading foaming companies in Asia, pro-duces a wide range of both comfort and technical foam products with an annual production of over 44 kt. The company also produces its own range of bedding products under the brand-name “Sleepwell”, which is a household name across the Indian subcontinent.

Sheela chose the Variable Pressure Foaming (VPF) process so it could produce a range of foams with unique physical properties and cost savings for its range of bedding products. The VPF-Vertifoam, or Ver-tivac as Sheela has named the machine, was installed in late summer 2016 and the fi rst production runs took place in December. The blocks produced are 1.27 m (50 inch) in diameter when produced and unlike the horizontal round block process are truly round in shape (fi g. 1).

This paper gives insights into the operation of the VPF-V process and shows how the VPF-V equipment and process have been developed and refi ned to produce highly successful new foam that has opened up new profi table markets for the PU foam industry. We will explain how a number of both formulation and equipment developments have given improved cell structure and bun yields and how a unique high pressure technology has been applied to the process giving multiple advantages.

2 Development of the VPF-V process

The Vertifoam process as the name suggests produces foam in the vertical plane by a continuous moulding process. The liquid chemicals are fed into a totally enclosed space and allowed to expand to fi ll the

shape. Both rectangular and round blocks can be produced, however this paper will concentrate on round block production at Sheela Foam.

To ensure competitiveness for the 21st century, the original process required developments in the following areas:

• High quality cell structure and pin holing• Operation with new higher reactivity foam formulations and exten-

ded run times• Optimising block shape

2.1 Development of cell structure and minimising pin holing

2.1.1 High pressure metering and mixing technology

The Vertifoam process was originally developed as a low pressure metering and mixing process to produce simple comfort grade foams. In today’s increasingly competitive marketplace, where cell structure is a much more important factor and customers associate premium products with premium cell structure, it was important that VPF-V should meet these more stringent requirements.

Low pressure metering and mixing systems using high speed mixing and the addition of auxiliary nucleating air at high levels result in a limited cell count range and increased levels of pin holes in the foam. High pressure metering and mixing require much lower mixer speed and no auxiliary nucleating air and therefore give a much improved range of cell structure size and much reduced pin holes. In table 1 typical process parameters for low and high pressure technology are summarized.

High pressure technology had been tried previously with little success in the early 1990s. However, applying the techniques learnt from developments in the fi eld over the last ten years allowed Opus to accurately meter the high pressure chemicals at the Vertifoam output requirements and feed them into a specially designed high pressure Vertifoam mixing head (fi g. 2).

Accurate metering control at pressures above 100 bar and careful control of the mixing head pressure in the range 0.1 – 0.7 bar is es-sential to ensure the quality of cell structure required today.

Fig. 1: Round blocks from VPF-V

Parameter Low pressure High pressure

Chemical pressure in bar 2 – 10 60 – 110

Mixer speed in min–1 4,000 – 5,500 1,000 – 2,000

Mixing head pressure in bar 1.0 – 3.0 0.1 – 1.0

Nucleating air in l/min 1 – 2 0

Cell count in pores/inch (ppi) 50 – 70 20 – 120

Pin holes Many Few

Tab. 1: Low pressure/high pressure process parameters


2.1.2 Separate TDI injection

In virtually all continuous slabstock mixing heads, the TDI component is introduced into the port ring of the mixing head above the rotary stirrer. This is standard practice for the slabstock foaming industry. As part of Opus’ liquid carbon dioxide technology (CO-2) we discov-ered that the TDI component can be separated from the rest of the foaming mixture and introduced after the rotary stirrer (fig. 3).

Vertifoam technology requires a length of up to 4 m of a 2.54 cm (1 inch) diameter flexible hose after the mixer before the materials are introduced into the expansion zone of the machine. This pipe can hold up to 2 l of foam and has a dwell time of up to 6 s. During this time the chemical reaction has started and the advantages gained from nucleation of high pressure chemical injection can be affected giving rise to some partial collapse of the nucleation sites and this can be detrimental to the final cell structure of the foam.

The VPF-V mixing head is therefore configured with all other compo-nents arriving inside the rotary mixer and the TDI introduced just before the foam machine expansion zone via high pressure injection and a specially designed inline static mixer system.

Separation of the TDI means:• All the other chemical components can be efficiently mixed by a

rotary stirrer.• The nucleation sites produced by high pressure injection of the

TDI can be optimised.• The dwell time of the reaction is reduced prior to expansion inside

the foaming machine.• Improved cell structure control.• Reduced cleaning of foamed parts at shutdown.

2.1.3 Reactivity control

The VPF-V process can be considered a continuous moulding process and therefore careful control of the chemical reactivity and expansion

is important to give optimum block shape. It is important to maintain constant reactivity both during the production run and on a day to day basis.

The reactivity is controlled by three major factors:

• Reactivity of the raw materials: It is important to ensure that good quality raw materials with consistent physical and chemical pro-perties are used.

• Control of formulation: It is important to have accurate and repro-ducible metering systems and good metering control.

• Temperature control: The rise profile of the foam is strongly af-fected by changes in temperature, particularly of the TDI and polyol. Precise temperature control is essential and the tanks should be installed in a temperature controlled room and also in-clude in-line heat exchangers to ensure temperature hold of ±1 °C during foaming (fig. 4).

2.2 Extended “trough-less” operation

One of the major grades of foam that Sheela produces on the VPF-V machine is a 12 kg/m3 (0.75 pcf) grade of foam. This foam is used as the quilt layer for its Sleepwell brand of mattresses.

The typical output of this grade on the round block VPF-V machine is 20 kg/min (44 lb/min). The requirement for foam to meet mattress demand at this Sheela plant requires foaming runs of at least 5 h per day.

VPF-V like the Maxfoam process was designed to operate with a trough which allows partial expansion prior to full expansion in the “V” conveyors. It is well known in the slabstock industry that troughs cause three major issues for foamers:

• Build-up reducing run time• Cell structure defaults leading to pin holes and striations• Splits in the foam block

Port ring

Polyol manifold

ActivatorsBarrel

StirrerPolyol andactivators

Static mixerHigh pressureTDI

Vertifoam machine

Fig. 2: Mixing head and computerised control system Fig. 3: Separate high pressure TDI dosing


Trough

PE film

”V” conveyors

Cure sectionFoam chemicals expand

horizontally

PE film

Nip rollersAdhesive tape

Gravity equal over the rising foam

The increased operating temperatures present in India during the summer months and the tendency for increased reactivity formula-tions with new polyols meant that reducing trough build-up has to be achieved. The trough on a Vertifoam is inside the machine and cannot be “scraped” clean in the way some Maxfoam troughs are today.

Once again, the CO-2 process led to the answer. In 1997 we installed a CO-2 upgrade on a Vertifoam machine at Karn Yang Yeen Yong In-dustries (KYYYI) in Thailand. We discovered that we could operate the machine without the trough by modifying the inlet at the bottom of the foam expansion zone or “V” conveyor section. This worked very well with the “frothed” CO-2 foams.

The VPF-V machine operates by joining together two polyethylene films to form a bag by driving them through a set of “nip rollers” and applying two adhesive tapes either side to join up the bag (fig. 5). We took this idea one stage further and designed an elliptical seal

that allows the mixed liquid foam materials to be introduced into the base without the need for a trough. The system was set-up and tri-alled by Sheela Foam in early 2017 and found to operate perfectly.

This development has been the most significant equipment develop-ment and provided three principle benefits:

• Zero trough build up• Continuous runs over 5 h run time• Improved cell structure

The removal of the trough has also given the following additional benefits:

• Smoother running of the polyethylene film giving improved block shape

• Reduced preparation and setup time• Reduced cleaning time

Fig. 4: Bulk tanks and in-line temperature control

Fig. 5: Nip roller arrangement

Fig. 6: Horizontal round bun expansion (a → b)

Base conveyor

Side conveyors

Gravity

Base conveyor

Side conveyors

Gravity

Different agesof foam

a

b


3 Round bun optimisation

3.1 Comparison to horizontal round bun production

Horizontal round bun machines have been in operation for many years, they do however all suffer from the same problems of circular block shape and gravity acting downwards on the foam as it rises. The liquid foam chemicals are introduced at the bottom of the circu-lar shape and have to rise against gravity and are forced to fill the round shape.

Figure 6 shows how the foam rises against gravity and figure 7 shows the resultant foam with poor block shape, wide density distri-bution top to bottom, heavy side skins due to rising friction and “tired” shoulders leading to excessive trim waste.

In contrast the VPF-V block has gravity acting equally over the foam block during expansion and the liquid chemicals are quickly distrib-uted across the diameter of the block. The foam then expands to fill the round space and density distribution is minimised (fig. 5).

The VPF-V round block process shows a saving in trim waste and density distribution of 7 – 10 % compared to horizontal round bun foaming.

3.2 Round bun peeling yields

Ensuring the bun is formed into a truly round shape during foaming and making sure the block is not damaged during subsequent curing is essential for high peeling yields.

Careful control of the foaming reaction is maintained by accurate metering and precise temperature control and techniques have been developed during the commissioning period to accurately control the catalysis of the reaction. This combination of process techniques produces a very accurate round shape bun with almost negligible side skins.

Start and stop blocks have been optimised to reduce waste with typical lengths of 76 – 102 cm (30 – 40 inch) / 12.7 kg (28 lbs) of foam.

Once the block has been foamed it is very important that the shape of the block is maintained during curing. If buns are allowed to cure on a flat surface then they will take the shape and flatten which can have a serious impact on final peeling yields. Foam blocks are there-fore cured on shaped horizontal conveyor systems (fig. 8).

Once cured, the buns are peeled on horizontal peeling machines. The buns are first centre drilled to accept the mandrel of the peeling machine (fig. 9). Drilling is an extremely important part of the pro-cess as any inaccuracies in drilling the true centre will result in re-duced peeling yields.

The drilled block is then placed onto the peeling machine. The thick-ness of foam can be varied, however typically the VPF-V block of 127 cm (50 inch) diameter will produce 110 m peeled sheet of 9 mm thickness.

Data collected over a 12 month period has shown that a typical yield for the VPF-V block is between 87 % and 89 % which compares very favourably with the typical peeling yields of 84 – 88 % for the large looping machines.

Peeling in this way also has the following advantages compared to loop splitting:

• Much lower capital cost of equipment (peeler vs. looper)• Reduced block handling systems• Reduced space• Reduced labour cost• No glue lines• Reduced scorching/exotherm control

Foam tired at shoulders

Thick skin

Large trim wasteuntil true round block

Not true round shape

Density variation topto bottom of block

Fig. 7: Horizontal round bun

Property Standard (15 kg/m3)

VPF(12 kg/m3)

Density in kg/m3 15.15 11.75

Cell size in pores/inch (ppi) 60 61

Tensile strength in kg/cm2 0.70 0.75

Elongation in % 180 190

IFD hardness in kg/323 cm2 Compression (10 %) “A” Compression (25 %) “B” Compression (50 %) ”C” Compression (65 %) “D”

7.511.2516.524.25

6912

18.5

Support factor (D/B) 2.15 2.05

Comfort factor (B/A) 1.5 1.5

Resilience in % 40 40

Porosity in cm3/(cm2·s) 95 95

Tab. 2: Comparison of standard and VPF foam physical properties


Fig. 8: Round bun curing and storage

Fig. 9: Block drilling machine

4 Variable pressure formulation savings

4.1 Savings when quilting with PU foam

Sheela’s range of branded mattresses has a top layer using a quilted polyurethane foam and fabric. Traditionally, Sheela had used 15 kg/m3 (0.94 pcf) foam. Having studied the results from its VPF produc-tion at Joyce Foam in Australia the company could see that – by using the enhancing properties of VPF – they could switch to 12 kg/m3 (0.75 pcf) foam that would outperform the 15 kg/m3 foam. Table 2 shows the physical properties of both foams.

Using the 12 kg/m3 (0.75 pcf) VPF foam gives the following cost savings: (a) raw material cost saving due to the lower density of 20 %; (b) additional gas loss saving due to lower water level and not using methylene chloride or liquid carbon dioxide up to 12 % when using CH2Cl2.

A typical double mattress has dimensions of 1,370 mm × 1,880 mm (54 inch × 74 inch) and Sheela uses a 27 mm (1.06 inch) layer of

foam for quilting. This equates to 0.07 m3 (2.46 ft3) of foam per mat-tress when quilted one side. Assuming raw material prices of ca. USD 2,000 – 2,500 per tonne, the saving per 1 million mattresses just considering the density saving accounts to ca. USD 420,000.

4.2 Savings when quilting with polyester fibre

Many foam mattresses are quilted using polyester fibre on the top layer. VPF foams have now been successfully used in the bedding industry for over seven years and in some markets virtually totally replaced fibre for the following reasons: price, performance, reduc-tion in returns.

4.2.1 Material savings

Primarily fibre is used because it is low cost and the typical density of fibre used in this application is 400 g/m2. So for typical double bed this would require approximately 1.2 kg (2.64 lbs) of fibre per mat-tress and this can be replaced with 0.9 kg (1.98 lbs) of VPF-V foam, giving a saving per 1 million mattresses of ca. USD 550,000.

4.2.2 Returns savings

In addition polyester fibre has a major disadvantage in that in a rela-tively short time the fibre collapse quickly losing their resilience and quickly showing body imprint in the top of the mattress. This reduc-tion in performance causes in the first three to six months a return rate of mattresses on average of 3 % of total sales.

5 Conclusions

This paper has shown that the VPF-V process is now in full commer-cial operation. A number of very successful equipment developments have been achieved, which also have applications in other continuous foaming processes. Early stage trial work has resulted in an excellent foam quality. The VPF-V technology gives excellent block yields over 88 % and is still improving. The VPF-V foams can lead to savings in mattress manufacture of between USD 420,000 and 550,000 per 1 million mattresses produced.

Thus, VPF-V clearly demonstrates major economic and performance advantages for the bedding and furniture industries.

6 Acknowledgements

The authors would like to thank the following people and organisations for the invaluable help with the development of the VPF-V process: Staff at Sheela Foam Ltd, India, staff at Joyce Foam Products Ltd, Australia, staff at Opus Technical Ltd, UK, Mr. A. Griffiths, Mr. A. Van de Velde.�


According to the organizers Koelnmesse and China Foreign Trade Centre (Group), with continuously evolving consumer demand, cus-tom and non-standard furniture has become the hottest trend that has been widely embraced by furniture makers. While they meet the indi-vidual needs of consumers, fl exible automated production in small volumes is also made possible.

Data shows that China’s custom furniture industry continues to grow, and accounts for about 20 % market share in the furniture industry. Compared with developed countries with over 60 % market share, there is substantial room for growth in China. Currently, the phenom-enon has extended from customizing cabinets and wardrobes to the entire house. This is a test of information technology, process tech-nology and fl exible production capabilities of manufacturers, which is also expected to bring about great opportunities.

Located at hall 14.1 (area C) of the Pazhou Complex, the Custom Furniture Suppliers Zone is poised to stir up fresh interest among visitors. CIFM / interzum guangzhou continues to be sought after by industry brands, with over 95 % of the exhibition spaces at the inter-national halls booked out.

Among them, national pavilions have always been an integral part of the international exhibition area, and are also one of the most popular highlights at the event. Every year, nearly 100 of the industry’s top

raw material as well as component suppliers for furniture production are being showcased bringing the latest product information to the show.

In 2019, CIFM / interzum guangzhou will continue to welcome na-tional pavilions from major global furniture manufacturing hubs and markets, such as Germany, Turkey, USA/Canada, South Korea and Italy. In addition, industry associations including the American Hard-wood Export Council (AHEC), Quebec Wood Export Bureau, Canada Wood and French Timber will also be back once again to seek distributors, agents and bulk buyers in Asia through the event.

Besides that, a series of exciting concurrent activities is also to be anticipated, including business match-making, exhibitor sharing ses-sions and forums to enable enterprises in the region to promote their products and technologies to global buyers.

The last edition occupied 150,000 m2 and spanned 17 exhibition halls. 1,459 companies from 38 countries and regions gathered at the event attracting 89,858 trade visitors from 132 countries and regions. Online visitor pre-registration for 2019 has kick-started.

www.interzum-guangzhou.comwww.cftc.org.cnwww.koelnmesse.com

interzum guangzhou 2019 to double in size

Exponential growth awaits custom furniture market in China

Slated to be held in China’s furniture manufacturing powerhouse Guangzhou from 28 – 31 March 2019, CIFM / interzum guangzhou is one of the largest and most comprehensive trade fairs in the woodworking machinery, furniture production and interior decoration industry in Asia. Following positive response from the furniture production industry for the launch of the Custom Furniture Suppliers Zone at the international exhibition area of CIFM / interzum guangzhou in 2018, the organizers of the show have announced the return of an expanded feature showcase in 2019 to take up twice as much space in view of strong growth potential for this market.

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