Wacker inaugurates global competence center for thermal interface materials in Shanghai

MOSCOW (MRC) -- Munich-based chemical group Wacker has recently opened a global competence center for thermal interface materials in Shanghai, China, as per the company's press release.

The new laboratory is located at the company’s China headquarters in Caohejing High-Tech Park. It will conduct fundamental research in order to develop novel silicone-based thermal interface products and solutions for the electrical vehicle market as well as for consumer electronics and telecommunication industries.

Wacker’s new competence center in Shanghai will conduct fundamental research and develop novel silicone-based thermal interface materials for the fast growing electrical vehicle market, for consumer electronics and for the telecommunication industries.

Over the past decade, thermal interface materials (TIM) have been one of the fastest growing segments of the materials market globally, with an average compound annual growth rate of more than six percent. Widely used in personal computers, consumer electronics, automotive and telecommunication industries, the demand for silicone-based TIMs is expected to grow continuously, as power density is rising exponentially and thermal management systems become increasingly important.

Electronic devices and batteries generate a great deal of heat that impacts their functionality and service life and can lead to serious faults. Efficient thermal management is therefore increasingly essential. “For improved thermal management of components, the industry is increasingly turning to heat-dissipation materials”, says Christian Gimber, head of Engineering Silicones at Wacker’s silicone division. “Our thermally conductive silicones can be processed very efficiently, and they also meet the stringent and rising safety and reliability requirements imposed by the electronics and automotive industries.”

The company’s new R&D lab in Shanghai will focus on the development of silicone-based thermal interface materials and novel applications, Gimber emphasizes. “With the new lab installed, Wacker will be able to significantly improve its capability of fundamental research for such materials and come up with tailor-made products to support our customers around the world.”

Located at WACKER’s Shanghai Center in Caohejing High-Tech Park, the TIM competence center shares existing resources such as analytics and the e-mobility lab of the site. Experts will conduct fundamental research aimed at overcoming technical hurdles with regard to performance, processability and cost-effectiveness and leverage Wacker’s proprietary technology to work on new material designs. The facility will develop customized products and solutions with locally available raw materials for the Chinese market, but also support other labs in the company’s worldwide network, such as labs in Germany and Korea, when creating new formulations.

The Chinese industry uses thermal interface materials in a wide array of products. “In fact, China’s range of TIM applications is quite remarkable and one of the most comprehensive in the world”, says Paul Lindblad, President of Wacker Greater China. The new R&D lab will leverage Wacker’s worldwide technological network and expertise to deliver market-driven innovations. “What’s more, operating a major TIM research facility here in China also means that our Chinese customers will be able to benefit from a faster response time”, Lindblad says.

Thanks to their unique properties, silicones are widely used for thermal management in the automotive, consumer electronics and telecommunication industries. Featuring excellent electrical insulation properties and a high degree of resistance against hot and cold temperatures, chemicals and UV radiation, silicone-based thermal interface materials are available as gap fillers, potting glues, adhesives, greases and foams for smartphones, telecommunication base stations, battery packs and power control unit modules for electric vehicles.

As MRC reported earlier, Wacker Chemie operates a 90 ktpa EVA compounding plant at the Ulsan site, consisting of two lines. The second line with a capacity of 40 thousand tons of products per year was launched in 2013.

According to MRC's DataScope, September EVA imports to Russia fell by 30,32% year on year to 2,38 tonnes from 3,420 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-September 2020 by 9,85% year on year to 26,340 tonnes (29,220 tonnes a year earlier).

Wacker Chemie manufactures and markets EVA dispersions under the VINNAPAS brand name. VINNAPAS polymer dispersions are used in a wide range of industries: for the production of complex thermal insulation systems, building and tile adhesives, plaster, building mixtures and mortars, cement sealing slurries and nonwovens.
MRC

North America chemical rail volume continues to strengthen

MOSCOW (MRC) -- Chemical railcar traffic in North America continued to strengthen during the week ended 17 October, according to Chemweek.

On a four-week basis, volume was down 0.4% from 2019 and down 2.5% from 2018, up from respective shortfalls of 1.2% and 3.3% the previous week and 2.8% and 5.9% the week before that (chart). For the year to date, chemical railcar traffic in North America is down 4.2% from 2019 and 5.5% from 2018.

Volume for the week totaled 43,147 carloads, down 0.5% year-over-year (YOY) and down 1.1% from the previous week, according to data released on 21 October by the Association of American Railroads (AAR).

Chemical railcar traffic in the US contributed 29,718 carloads to the total, down 6.3% YOY and down 4.2% from the previous week. For the year to date, US chemical railcar traffic is down 5.0%.

Canadian chemical rail traffic totaled 12,426 carloads, up 16.6% YOY and up 6.9% from the previous week. For the year to date, Canadian chemical railcar traffic is down 1.9%.

Chemical railcar traffic in Mexico totaled 1,003 carloads, a YOY increase of 1.7% and a sequential increase of 2.6%. For the year to date, Mexican chemical railcar traffic is down 5.6%.

As MRC informed earlier, Russia's August output of chemical products rose by 5% year on year. At the same time, production of basic chemicals increased in the first eight months of 2020 by 5.3% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-August output. Thus, August production of primary polymers rose to 888,000 tonnes from 838,000 tonnes in July due to increased capacity utilisation at ZapSibNeftekhim, Stavrolen and Gazprom neftekhim Salavat. Overall output of polymers in primary form totalled 6,630,000 tonnes in January-August 2020, up by 15.2% year on year.

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
MRC

Deepak Nitrite incorporates wholly owned subsidiary, DCTL

MOSCOW (MRC) -- Deepak Nitrite Ltd has incorporated a wholly owned subsidiary company named Deepak Clean Tech Limited (DCTL) with effect from 9th October, 2020, according to Kemicalinfo.

“Deepak Nitrite Limited has subscribed to the Memorandum & Articles of Association to the extent of 100% of Share Capital of Deepak Clean Tech Limited, which has been incorporated under the Companies Act, 2013 on October 9, 2020. By virtue of the same subscription, Deepak Clean Tech Limited became a wholly owned subsidiary of Deepak Nitrite Limited on October 9, 2020,” the company stated in its stock exchange fillings.

“DCTL shall carry out business in the field of manufacture of chemical intermediate products,” the company said.

Deepak Nitrite is known as a major manufacturer of chemical intermediates in India. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas.

The company’s products are manufactured across five locations. Company’s consolidated turnover for FY20 grew by 57% whereby revenues stood at Rs. 4,265 crore as against Rs. 2715 crore in FY19.

As MRC reported earlier, in April,2020, Deepak Nitrite’s fully-owned subsidiary Deepak Phenolics began production of isopropyl alcohol (IPA) at its plant in Dahej, Gujarat, India. The company confirmed in its official disclosure to the Bombay Stock Exchange that the company commissioned a 30,000 metric ton per annum plant at Dahej to make Isopropyl Alcohol (IPA) from Acetone, thus significantly reducing the country’s dependence on imports.
IPA is an important input in the production of essential pharmaceuticals and manufacturing of sanitizers.

We remind that the company started up its new phenol/acetone plant, located at Dahej in the state of Gujarat, on 16 August 2018. The plant, which is operated under Deepak Nitrite’s wholly-owned subsidiary Deepak Phenolics Limited, is able to produce 200,000 tonnes/year of phenol and 120,000 tonnes/year of acetone. There is also the potential for a capacity expansion in the future. Deepak Phenolics’ plant is the largest phenol/acetone plant in India.

Besides, Deepak Phenolics shut its phenol/acetone plant in Dahej on 25 March, 2020, because of the nationwide lockdown because of the spread of coronavirus. It resumed operations in late April, 2020.

Phenol is one of the main feedstocks for the production of bisphenol A (BPA), which, in its turn, is used for the production of polycarbonate (PC).

According to MRC's ScanPlast report, overall estimated consumption of PC granules in the Russian market reached 58,000 tonnes in January-July 2020, up by 22% year on year (47,500 tonnes).
MRC

Styrolution receives funding for new styrenics recycling research

MOSCOW (MRC) -- Styrolution has received Belgian government funding for new research into the potential recycling of styrenics using dissolution technology, said Chemweek.

The styrenics subsidiary of Ineos says it will be contributing to the ‘Remove2Reclaim’ project, which is researching the recycling of plastics and titanium dioxide using advanced dissolution and separation techniques for plastic additive removal. No financial details were given.

The project involves several leading research institutes in Belgium, with the aim of developing solvent-based extraction routes to remove additives such as titanium dioxide from different polymer matrices. Targeted polymers include polystyrene (PS), high-impact PS, and acrylonitrile-butadiene-styrene (ABS), according to Styrolution. The potential dissolution process will complement existing mechanical and depolymerization recycling projects, “rounding up the understanding of the broad range of recycling technologies available for styrenics,” it says. The research project is funded by the Flemish Agency of Innovation and Entrepreneurship.

As MRC reported earlier, in September, AmSty announced that it had joined Ineos Styrolution’s plans to build in Channahon, Illinois a 100-metric tons/day recycling facility based on the same technology.

According to ICIS-MRC Price report, October prices of Russian PS continued their upward trend. A shortage of material remained in the domestic market. Traders said Nizhnekamskneftekhim reduced its offer prices for this month's PS purchases to 40%. October prices of Nizhnekamskneftekhim's GPPS grew for the agreed with buyers quantities to Rb89,000-95,000/tonne CPT Moscow, including VAT, whereas HIPS - to Rb93,000-99,000/tonne CPT Moscow, including VAT.
MRC

PQ Group to sell microspheres unit to private equity, explore options for sodium silicates

MOSCOW (MRC) -- PQ Group announced plans to sell its performance materials business, a producers of glass microspheres for transportation safety and electronics applications, to private equity firm The Jordan Company (New York, New York) for USD6550 million, said Chemweek.

The performance materials business generated USD363.0 million in revenue and USD76.7 million in adjusted EBITDA during 2019.

The company has also announced plans to explore strategic alternatives, including a possible sale, for its sodium silicate and silicate derivatives unit, called performance chemicals. That unit, PQ’s largest reporting segment, generated USD685.1 million in revenue and USD154.3 million in adjusted EBITDA in 2019. It operates in diversified end markets, including food and beverage, coatings and personal care.

The plans are both part of a strategy to focus PQ on its catalysts and refining services businesses, which are “well positioned to use its technology and service offerings to help customers drive sustainability by more efficiently producing the lightweight polymers and clean fuels that are expected be in high demand going forward,” says PQ Group CEO Belgacem Chariag. The performance chemicals and performance materials segments account for over 60% of PQ Group’s annual revenues.

The performance materials sale is expected to close by the end of this year. Proceeds from the sale will go towards reducing debt and funding a special dividend of up to USD1.84/share. Goldman Sachs and Harris Williams are acting as financial advisors to PQ, while Ropes & Gray is acting as legal advisor. Kirkland & Ellis is acting as legal advisor to The Jordan Company. No timetable has been given for the potential sale of the performance chemicals segment.

As MRC informed earlier, in last December, PQ Group Holdings Inc. announced an agreement with INEOS Polyolefin Catalysts to commercialize certain polyethylene catalysts to customers of selected processes.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC