Canadian resin makers find competition tough
Transcript of Canadian resin makers find competition tough
![Page 1: Canadian resin makers find competition tough](https://reader031.fdocument.org/reader031/viewer/2022030208/5750a3861a28abcf0ca35913/html5/thumbnails/1.jpg)
For pharmaceutical development and production:
Protected amino acids for peptides
Lipids for Liposomes
cGMP-controlled custom synthesis
SYGENA ΓΛ
η C H E M I C A L S The new quality standard Made in Switzerland
Sygena Ltd Eichenwegl, CH-4410 Liestal/Switzerland Telephone 061/90159 59 Telefax 061/9016152
BUSINESS
board of directors. Prior to that, he worked at General Electric, at Climax Molybdenum Co., and, just before forming his own firm, as scientific director at the personal care products producer Shulton. In 1990, a management-led team acquired Kline & Co. and he continued to serve as an informal adviser.
Kline is remembered as an influential pioneer in the development of large, multiclient market research studies and as one of the first to take an international view of the chemical industry. "He was a completely knowledgeable, honorable, and versatile man with a broad spectrum of thinking/7 says Alec Jordan, founding editor of Chemical Week and personal friend of Kline's.
Kline was a member of numerous scientific, professional, and business groups, including Phi Beta Kappa, Sigma Xi, the American Chemical Society, and the Society of the Chemical Industry. In 1987, he received the Memorial Award of the former Chemical Marketing Research Association. He wrote more than 70 articles and books on technical and marketing subjects.
Ann Thayer
Canadian resin makers find competition tough A Canadian government report on the country's synthetic resin industry paints a good-news, bad-news picture of the industry's future prospects.
The good news: Canadian producers of low-value-added commodity resins can compete in their domestic market and in the northeastern, midwestern, and northwestern markets of the U.S., where their products enter duty free. They are "close to being competitive" with U.S., European, and Japanese producers in Southeast Asia and South America.
The bad news: Canadian resin producers face strong competition from their counterparts in the Middle East who have access to low-cost petrochemical feedstocks. And the agency that prepared the report, Industry, Science & Technology Canada (ISTC), says the competitiveness of Canadian resin producers is not likely to improve during the remainder of the nineties unless they make "significant" changes in the "factors affecting cost." Those
New Silica Sol is it!!
• Λ » * ^ 1 -#
m't " ·£»
*%-" ***** \\L· i ; & ; Li <* ST-UP is chain molecules of silica, 5-20nm in width 40-300nm in length
good film forming good binding and other unique properties.
for Binder? Micro Filler? or?
Colloidal Silica dispersed in organic solvent. Type SiO%2 Dispersant IPA-ST 30 Isopropanol EG-ST 20 Ethyleneglycol DMAC-ST 20 Dimethylacetoamide NPC-ST 20 Ethyleneglycol-
mono-n-propylether Particle Diameter 10-20nm. Available product is much more.
Q NISSAN CHEMICAL INDUSTRIES, LTD. — Specialty Chemicals Division —
Tokyo Head Office Phone:03-3296-8065 Telefax: 03-3296-8360
New York Office: Contact person: T.Koinuma Phone: 914-332-4745 Telefax: 914-332-4808 Dusseldorf Office: Contact person: Y.Fujikawa Phone: 0211-363591 Telefax: 0211-162243
CIRCLE 38 ON READER SERVICE CARD 22 MAY 11,1992 C&EN
CIRCLE 28 ON READER SERVICE CARD
![Page 2: Canadian resin makers find competition tough](https://reader031.fdocument.org/reader031/viewer/2022030208/5750a3861a28abcf0ca35913/html5/thumbnails/2.jpg)
io ta^
£ 8 » * -
If you've got a surface tension problem, 3M has the solution. With a small amount of Fluorad surfactant, you can reduce surface tension up to 30% lower than hydrocarbon surfactants. We have over a dozen different products for a wide range of applications.
3M Fluorad fluorochem-ical surfactants are active in both organic and aqueous systems. Try them and see for yourself. They'll prove to be the best. '£ 1992 3M.
S wNEWTONS PAPPLE.
Made possible by a grant from 3M
Free Fluorad Surfactants sample kit. Mail to: 3M Industrial Chemical Products Division, 3M Center Bldg. 223-6S-04, St. Paul, MN 55144-1000.
Yes. I want proof. I plan to evaluate Fluorad surfactants in the following systems:
Aqueous Π Organic
~l
Name-Company.
Address
State_
Phone_
_ZIP_
J
Innovation working for you™ CIRCLE 24 ON READER SERVICE CARD 3M
We'll • ri ν υ τ
I ν ψ w I
I À
City-
![Page 3: Canadian resin makers find competition tough](https://reader031.fdocument.org/reader031/viewer/2022030208/5750a3861a28abcf0ca35913/html5/thumbnails/3.jpg)
BUSINESS
Canada's domestic sales of synthetic resins fa l l . . . $ Billions (U.S.)a
1983 84 85 86 87 88D 89D 90D
. . . but higher exports take up some slack . . . $ Billions (U.S.)a
1.5
1983 84 85 86 87 88D 89D 90D
. . . and resin imports inch higher $ Billions (U.S.)a
1 9 8 3 8 4 8 9 b 9 0 b
a $1.00 = $1,195 Canadian, b In 1988, Canada replaced its Industrial Commodity Classification with the Harmonized Commodity Description & Coding System. The two systems are not ful ly compat ib le. Source: Industry, Science & Technology Canada
factors include raw materials, energy, capital, marketing and freight, and plant operating rates.
The Canadian resin industry will have to invest in and build new plants throughout the remainder of the decade to meet growing domestic demand and to replace obsolete units. Several projects—in Sarnia, Ontario; in Montreal; and in Joffre and Fort Saskatchewan, Alberta, are on the drawing boards.
For the most part, these projects are aimed at exports to the U.S., which account for about 60% of all Canadian exports of synthetic resins. However, ISTC says the industry's capacity and plant modernization will be "gradual and limited" during the nineties.
The Canadian synthetic resin industry produces primarily commodity-grade thermoplastic and medium-volume thermosetting resins and compounds. These two resin types account for about 83% and 17%, respectively, of production. Canada imports most of the specialty, low-volume commodity resins and engineering resins that it needs.
Taking these imports into account, ISTC believes the Canadian resin industry has enough capacity to satisfy domestic markets for polyethylenes, polypropylene, and all commodity-grade thermosets including phenol-formaldehyde, urea-formaldehyde, and unsaturated polyesters. However, by the mid-nineties, the industry will need more capacity to meet domestic demand for polyvinyl chloride, polystyrene, and ABS (acrylonitrile-butadiene-styrene) resins.
ISTC also says "an opportunity exists" to increase significantly production of several engineering resins. Less certain is how much resin Canadian plastics processors will need in the future.
Primarily as a result of the Canada-U.S. free trade agreement and the pending North American Free Trade Agreement linking Canada, Mexico, and the U.S., widespread restructuring has hit the plastics processing industry in Canada. "The extent of (this) readjustment is unpredictable," says ISTC.
Because of their small Canadian domestic market, exports are critical for Canadian resin producers and their large, world-scale plants. During the eighties, resin exports grew from about one third of total shipments to approximately one half of the total.
The following leading vendors have current applications that run on the powerful,
affordable IRIS Indigo family of workstations.
Accurate Automation Corp.
Advanced Technology
Albert Einstein Coll. Med.
Aquitaine Systèmes
Argonne Labs/Harrison.
Sbepard
Autodesk Inc.
Bavlor University
BioCAD
BioCryst. Ltd.
BioKad/Sadtler Division
Biostructure SA
Biosvm Technologies
Bristol-Meyers Squihl)/
Bruccoleri
Bruker Instruments, Inc.
CABM. Rutgers/kamer
Caltech/Coddard
Cambridge Crystallographic
Data Centre
Cambridge Molecular Design
Cambridge Scientific
Computing
Cambridge University
Chemagnetics Inc.
Chemical Design Ltd.
Cognivision
Cold Spring Harbor
Laboratory
Columbia University
Computer Associates
International, Inc.
Cray Research
Daikin Industries
Daylight CIS, Inc.
DCU Systems International
Distributed Chemical
Graphics
Dyad Software
EMBL/Vriend
Enraf-Nonius Corp.
Eric Swanson
ET H
Gaussian. Inc.
Genetics Computer Group
Gensym Corp.
Goettingen University
Hampden Data Services Ltd.
Hare Research
IMSLCorp.
Intelligent Light
Iowa State University/Elbert
Janssen Research Eoundation/
De Bie
JEOL Trading Co.
Kuck & Associates
Laboratory Technologies Corp.
Lark Sequence Technologies
Los Alamos Nat. Lab
MDS. Inc.
MG Software
Mihalisin Assoc.
Minitab
MIPS Software Development
MIT Whitehead Institute/
Lincoln
Molecular Applications (/roup
Molecular Design Ltd.
Molecular Discovery. Ltd.
Molecular Structure Corp.
National Cancer Institute
National Center for Super-
computing Applications
National Instruments
Neuron Data
New Methods Research, Inc.
New Mexico State University/
Fields
Ν Rolf Numerical Algorithms Group Ohio Supercomputer Center Oxford Molecular Polygen/Molecular
Simulations. Inc. P-STAT, In<·. Precision Visuals Protein Identification Resource Proteus Biotechnology Ltd. QCPE Research Systems, Inc. Rutgers CABM San Diego Multiwire Systems, Inc. San Diego Supercomputer Ctr. SAS Institute Schroedinger, Inc. Scientific Computing Associates, Inc. SERC Daresbury Laboratory Serena Software Siemens SL Corp. SPSS Spyglass Statistical Sciences, Inc. Synthetic Peptides Inc. T.J. O'Donnell Associates Technical Utilization Corp. Technische Hochschule Darmstadt The MathWorks, Inc. Tripos Associates UAB Center for Macromol.
Cry st. UCSC/Wipke UCSD/Dempsey UCSE/Ferrin UCSF/Kollman UCSF/Kuntz Umetri/Wold UNIRAS University of Bern University of Groningen University of Karlsruhe/Ahlrichs University of Lund University of Marseille University of Montreal University of Uppsala University of Virginia University of Washington University of Western Australia University of Wisconsin VA Medical Center Pittsburg/
Furey Varian Instruments V.I. Corp. Vital Images Inc. Waterloo Maple Software Wavefront Wavefunction Inc. Wavetracer Wistar/Keiber-Emmons Wolfram Research, Inc. Yale University/Jorgensen
SHiconGraphics Computer Systems
24 MAY 11, 1992 C&EN
1.5
1.0
0.5
0
1.0[
3.5 f
oi
1.5[
1.0
15
ol
![Page 4: Canadian resin makers find competition tough](https://reader031.fdocument.org/reader031/viewer/2022030208/5750a3861a28abcf0ca35913/html5/thumbnails/4.jpg)
Somebody in the lab till ms
h^^Mk «κι
m ell &&& W£$Ê$miM tiM £Mm
mmm hasrmade an amazing
Sill i n H i mm PKu^elS
new discovery.
β>' bringing affordable, next-generation SI) visualization fxnver to the chemistry desktop, IRIS Indigo gives your lab a decisive, competitive advantage.
IRIS Indian delivers 30 MIPS. 4.2 MKLOI'S. 26 SPKCmarks. CD-quality audio. 8-24 l>it color. AC.K-i'ompatihil-ity. and comes complete with color moni-
\ Copyright ©1992 Silicon Graphics. Inc. Silicon Graphics, the Silicon Graphics lo^o and IRIS arc re[p.stered trademarks, and IRIS Indigo is a trademark of Silicon (Graphics. Inc. All other registered and unre»jstered trademarks are the sole property oi their respective owners.
Desktop discovery: IRIS Indigo RISC/PC. Discover the workstations that run the applications you know, render in 3D, and
do it all affordably. They run popular chemistry software - from chemical structure drawing to word
processing to molecular modeling programs. And most importantly, IRIS Indigo* workstations allow chemists to easily see, study and understand the 3-dimensional structural and dynamic features of their discoveries.
IRIS Indigo's award-winning, affordable technology enables application developers to deliver next-generation software to chemisty desktops today. Which means you reduce the time to market, the number of experiments required, and the expenses involved - while building a decisive, competitive advantage.
At prices (starting imder $10,000) that put these powerful, easy-to-use, Macintosh® and PC network-compatible machines on more desks, the IRIS Indigo family enhances a precious scientific resource - the lab chemist - by extending the promise of computer-aided discovery to every desktop.
Call for our free white-paper, "Competitive Benefits of 3D Chemical Modeling," and discover the power of IRIS Indigo for your team. S/7/COnGrapfj/CS
Call 1 (800) 800-7441 . Ext 13 Computer Systems
BYTE 1991
![Page 5: Canadian resin makers find competition tough](https://reader031.fdocument.org/reader031/viewer/2022030208/5750a3861a28abcf0ca35913/html5/thumbnails/5.jpg)
BUSINESS
Data for 1990, the latest year for which data are available, illustrate the point. In 1990, during the eye of the recession, domestic shipments of Canadian resins dropped a hefty 20% to just over a billion dollars. However, exports jumped 11% to $1.2 billion.
Although resin exports have always accounted for a good part of total shipments, they exceeded domestic shipments for the first time in 1990. And, de
spite the recession, resin imports grew 2% in 1990 to $1.4 billion, topping exports as they consistently have.
With the economies in Canada and the U.S. apparently on the mend, both domestic shipments and exports likely will improve for Canada's synthetic resin producers. Just how much, says ISTC, will depend upon the pace of the economic recovery.
Earl Anderson
= Barrei ro/Estarreja (Portugal) 1992 =
IMPORTANT PUBLIC AUCTION DUE TO RESTRUCTURATION OF
QUIMIGAL - QUÎMICA DE PORTUGAL S.A. CHEMICAL PLANTS
PARQUE INDUSTRIAL DO BARREIRO, 2830 BARREIRO (35 KM FROM LISBON AIRPORT)
ON THURSDAY JUNE 4,1992 from 10.30 a.m.
at "Antigo Cinema C.U.F.", Rua da C.U.F., Barreiro (Portugal)
The auction will include:
FACTORIES OF BARREIRO SULFURIC ACID PLANT (contact 5), cap. 500 ton/day; SULFURIC ACID PLANT (contact 6), cap. 640 ton/day; SULFURIC ACID PLANT (contact 7), cap. 650 ton/day; SODIUM SULPHATE PLANT, cap. 35 ton/day; KOWA SEIKO (cinders pelletizing), cap. 1040 pellets/day; TCP. (pyrite cinders treatment), cap. 900 ton/day; ZINC OXIDE PLANT, cap. 30 ton/day; PYRITE MILLING AND STORAGE, cap. 45 ton/h; liquid pesticide plant, cap. 12.000 l/day; SOLID PESTICIDE PLANT, cap. 2.5 ton/day; COPPER SULPHATE, cap. 11.000 ton/year in cristal, 7.000 ton/year in powder; AMMONIA PLANT, cap. 170 ton/day; NITRIC ACID PLANT, cap. 146 ton/day; PHOSPHORIC ACID PLANT, cap. 35.000 ton/day; PHOSPHORIC MILLING, cap. 45 ton/h; FERTILIZER GRANULATION Ner 2, cap. 200 ton/day; AMMONIUM SULPHATE PLANT, cap. 750 ton/h; 3 STEAM POWER STATIONS CV1, CV 2 and CV 3; WATER TREATMENT PLANT, cap. 168 m3/h of water; BAGGING STATION Ner1, cap. 25 ton/h;
FACTORIES OF ESTARREJA WATER-NITROGEN DISTILLATION 1, cap. nitrogen-2000m3/h,oxygen-1000 m3/h; OXYGEN-NITROGEN PRODUCTION PLANT, cap. nitrogen-600 m3/h, oxygen-250m3/h; GASIFICATION, cap. 4000 m3/h; AMMONIA SYNTHESIS, cap. 50 ton/day; AMMONIUM SULPHATE, cap. 280 ton/day.
VIEWING: Monday June 1 till Wednesday June 3,1992 from 09.00 a.m. till 04.00 p.m. as well as on the day of sale from 08.00 to 10.00 a.m. at the plant, or by appointment.
PHOTO-LEAFLET on request
ίΕ = Ι»Ι»1=ΐΑ^Π^
I TROOSTWIJK VEILING EN B.V. Auctioneers and Appraisers
De Boelelaan 1065 -1082 SB Amsterdam Tel. 31(0)20-646.32.01, Telex 14692 artronl
Telefax 31 (0)20 - 642.74.10 I CIRCLE 50 ON READER SERVICE CARD
Oxygenates seen as hot market by industry Gasoline reformulation will change global markets for methyl tert-butyl ether (MTBE), methanol, ethanol, and other oxygenates virtually "overnight," according to a new study done by chemical industry consultants Probe Economics Inc., Millwood, N.Y. Consequently, it also may affect prices for a host of other petrochemicals.
'The combination of clean air legislation and raw material supply limitations has already begun to alter oxygenate markets, and could entirely transform them during the 1990s," says Fred Peterson, Probe's president. He predicts world oxygenate demand could increase more than 10-fold from its level today by the year 2001.
Petrochemical producers and energy companies see "oxygenates as the hottest game in town and all of them want a piece of the action." Although producers enthusiastically anticipate gains, Peterson cautions that they should acknowledge the risks of getting involved in a market in which the ultimate global supply and demand balance is still uncertain.
The U.S. Clean Air Act created the initial attraction for oxygenates, explains John Johnson, a Probe consultant. The law requires refiners to reformulate gasoline to reduce vapor pressure, decrease the aromatics content, and increase oxygen content between 2.0 and 2.7% of gasoline by weight for use in certain regions of the country; use in other regions will follow.
Conveniently, oxygenates such as MTBE, ethanol, and methanol provide both octane and oxygen. Most refiners prefer MTBE because they can produce it within the refinery, blend it easily with gasoline, and transfer the reformulated mix through existing pipelines.
In addition to clean air legislation, the other force buffeting oxygenate markets is supply of butane, a key raw material in MTBE production. Producers isomerize butane into iso-butane, dehydrogenate it to isobutyl-ene, and react it with methanol to yield MTBE. Most refiners now blend butane directly into gasoline, or use it in alkylate for gasoline. "There is only a limited supply of butane, which come from natural gas or crude oil,"
26 MAY1L1992C&EN