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Market construction
Jack Baarends - Global Advertising and marketing Director (Publication Inks) for Hexion - has lately had cause to intently research the structure of the market, in connection with submissions made to the EU, throughout their acquisition of the Ink and Adhesive Resins division of Akzo Nobel in 2006. Hexion - a USD 6 billion personal fairness owned US company, that itself has been created by acquisition, is a mix of 4 firms; Resolution; Speciality Materials/ Efficiency Polymers; Borden Chemical and Bakelite. Hexion admits that it will be unlikely that Hexion could be allowed to make any further acquisitions (in offset), on account of EU competitors law.
Evonik Industries can be a newly shaped industrial group which contains the companies of chemical compounds, energy and actual property, also with non-public equity investment. Group turnover is EUR 14.eight billion and Evonik claim to be clear chief in volume of sales in resins used as cobinders. Hexion in turn claim the number 2 place with 15 % of the global market.
Indian producers
Another main world player in resins is Indian based Micro Inks however, apart from small portions of ketone resins for export, Micro Inks primarily provide resins for ink manufacture to Huber - their father or mother firm in Germany - and do not compete within the open market; in impact backwards integration. Certainly ink is the major software for resins and Baarends experiences that the offset marketplace for inks represents eighty five % of Hexion's international resins sales.
Robust competitors from Asia has emerged recently, significantly on ketone resins, which has necessitated a higher concentrate on added value merchandise for the European manufacturers. One other key driver is new EU legislation equivalent to REACH and Hexion, who sell ketone resins for food packaging utility, has rising concerns about formaldehyde as a constituent for these resins, which
Baarends feels "has the potential to be banned". For this reason, Evonik have responded by launching formaldehyde free resins, which are available globally.
Hexion have noticed robust price competition from the Far East as India is a significant exporter and producer. Export statistics show that within the year to August 2008, Micro Inks and Suparna between them exported over 1,100 tonnes of ketone resins, greater than half of India's total resins exports. Micro Inks have six crops in India and one in the USA.
Essential Applied sciences utilized in Europe
Hexion calculate the chemistry breakdown for solvent primarily based liquid inks for packaging to be as follows:
Nitrocellulose ............ 35 % Polyurethane............. 22 % Polyamides................ 20 % Polyketones................. 3 % Others......................... 20 %
Based on Dr. Andreas Wenning, Technical Director for Specialty Resins, most Evonik ketone resins are used as co-binders, typically with polyurethane, polyamides or nitrocellulose resins, as a quality improver. "Evonik deal with modified ketone resins that are used not only in solvent borne but additionally in additional environmentally pleasant programs like waterborne, UV/EB or 100 % liquid technologies. Evonik consider these standards to be core market drivers, along with cost and legislation", states Dr. Wenning. Baarends, Hexion, considers the market for ketone resins to be a mature market in Europe and USA, although still growing in Asia.
Environmental impression/EU laws
Hexion are additionally developing other applied sciences and regard sulfo-polyesters as extra environmentally friendly for water-based, but for solvent-primarily based, polyamides are preferred. Nevertheless Baarends sees a paradox in respect of water-borne resins "Water-borne will not be actually environmentally friendly, as a result of it is primarily primarily based on acrylics, which are not biodegradable, so it is very difficult.
The second level is that it accommodates lots of additives like anti-foam agents, wetting brokers, surfactants. "Sulfopolyesters do not contain any additives and are more environmentally friendly, as nicely higher biodegradable." Hexion have anticipated the brand new EU legislation and see the market is beginning to replace ketone with polyurethane and polyamides, pushed by customer demand. Urea aldehyde resins are thought to be a sustainable know-how, though they are under some environmental stress in Europe and North America. REACH is now a big concern for polyketones by way of utilization of raw supplies and Hexion feels that this will rationalise the market, particularly in inks.
The environmental impression of solvent-primarily based products might be mitigated if the customer buys a new incinerator or particular abatement gear, thus extending the life of these products.
But the broadly held view is that value and laws are the two components which might be really driving customers to change - i.e. eco-efficiency.
Conclusion Hexion Epoxy Resins
Ketone and aldehyde resins are considered to be long established technologies. However, both resin groups still have a powerful market position and rivals differentiate and cope with legislative and value pressures by making use of completely different strategies, applied sciences, innovation, and manufacturing platforms.
