1

●

AkzoNobel publishes Q2 2015 results

3

● PPG earns NSF certification for four products, two coating systems for water tanks

4

● Thor opens major new facility in China 5

● Valspar’s Fluropon coatings coat CityCenterDC Office Towers 6

● WACKER honours chemist for production of precision silicone films 7

● Evonik opens new Business and Innovation Centre in Greater Richmond 8

● THE EUROPEAN MARKET FOR THERMAL INSULATION PRODUCTS 10

BASF to set up new global business unit combining all pigments

activities

BASF will form a global business unit (GBU) combining all of its

pigments activities effective January 2016. In the second half of

2016, BASF intends to carve out its pigments business and

establish separate legal entities.

With sales of about €1 billion in 2014 and 2,500 employees globally, BASF holds a leading

position in the pigments market, offering the broadest portfolio of products and technology.

The new GBU will likely be headquartered in the Ludwigshafen area. All employees who are

dedicated to the pigments business will be transferred to the new GBU.

“We have achieved and maintained a leading position in the pigments market through

acquisitions and a series of successful restructuring measures. The new global business unit

will fully concentrate on the pigments business and thus be even more focused on

supporting the needs of our pigments customers,” said Dr. Markus Kramer, President of

BASF’s Dispersions & Pigments division.

CUBE

719 24 July 2015

www.informationresearch.co.uk

cube@brggroup.com +44 (0) 208 832 7830

CONTENTS

2

Dr. Alexander Haunschild, Senior Vice President of the regional business unit Pigments and

Resins Europe and appointed head of the GBU, stated: “By creating an organisation fully

dedicated to pigments, we will adapt better to the challenges in the pigments industry. Our

customers will benefit from tailored services and higher responsiveness.”

BASF’s pigments business serves a variety of industries including paints & coatings, printing

& packaging and plastics. The portfolio comprises of colour pigments such as

phthalocyanines, high performance pigments, azo pigments, effect pigments, inorganic

pigments, dyes and pigment preparations.

Other BASF news

BASF and PETRONAS Chemicals Group Berhad (PCG) will build a new world-scale production

plant for highly reactive polyisobutene (HR-PIB) at the site of their existing joint venture,

BASF PETRONAS Chemicals Sdn Bhd, in Kuantan, Malaysia.

The plant, which will be the first of its kind in South East Asia, with a total annual capacity of

50,000 metric tonnes of HR-PIB, is expected to start production in the fourth quarter of

2017. HR-PIB is an important intermediate product for the manufacturing of high

performance fuel and lubricant additives, including additives for sludge prevention.

“Leveraging excellence in technology will be an important factor in accelerating future

profitable growth globally and especially in Asia,” said Dr. Christian Fischer, President of

BASF’s Performance Chemicals division. “With this investment, we are building on the solid,

long-term relationship with our strategic partner PETRONAS.”

BASF PETRONAS Chemicals’ fully integrated Kuantan site is one of BASF’s two Verbund sites

in the Asia Pacific region. According to Fischer, the joint investment with BASF’s partner PCG

at the Kuantan Verbund site will further increase security of supply for HR-PIB, especially for

the Asian market. The new plant will further strengthen the global footprint of BASF as the

leading supplier of this product.

“The investment marks another significant milestone in the development of the Kuantan

site as a leading speciality chemicals hub in the Asia Pacific region, in line with PCG’s

strategy to diversify into speciality chemicals and solutions,” said Datuk Sazali Hamzah,

President and Chief Executive Officer of PETRONAS Chemicals Group Berhad. “It also

strengthens the presence of highly advanced and forward oriented technologies and

expertise in Malaysia and the region.”

BASF has over seventy years of experience in the manufacturing of HR-PIB. Besides the new

plant in Asia, the company operates production facilities for HR-PIB at its Verbund sites in

Ludwigshafen, Germany and Antwerp, Belgium, and within a joint venture with Sinopec YPC

in Nanjing, China. BASF offers the broadest range of polyisobutenes in the market with

3

different molecular weights which are marketed by the global business unit Fuel and

Lubricant Solutions under the brand names of Oppanol® and Glissopal®.

BASF and PCG founded their joint venture BASF PETRONAS Chemicals in 1997. BASF

PETRONAS Chemicals operates an integrated complex situated at the Gebeng Industrial

Zone, Kuantan, Pahang.

In addition to the proposed plant, BASF PETRONAS Chemicals is also building two plants at

its Kuantan site, namely an integrated aroma ingredients complex for the manufacturing of

citronellol, L-menthol as well as citral and its precursors which are widely used in the flavour

and fragrance industry; and a 2-ethylhexanoic acid (2-EHA) production plant for the

manufacturing of 2-EHA compound for the production of synthetic lubricants as well as oil

additives. It is also used for functional fluids like automotive coolants, metal salts for paint

dryers, plasticisers, stabilisers, catalysts and other applications in various industries.

Source: BASF, 21 & 22 July

Akzo Nobel N.V. has

reported a second

quarter with

positive

developments in

profitability of all three Business Areas

despite a challenging market

environment.

Second quarter operating income

increased 38 percent to €486 million,

reflecting the positive effects of efficiency

programmes, lower costs, reduced

restructuring expenses, divestment results

and favourable currency rates. Revenue of

€3,949 million was up 6 percent

compared with the same period last year

due to favourable currency rates, offset by

divestments and lower volumes in some

areas. The divestment of Paper Chemicals

was completed in line with the strategy of

pruning the portfolio. The triennial review

with the trustees of the ICI Pension Fund

(UK) was completed in July, 2015. Market

trends in North America continued to be

positive with Europe not improving.

Conditions remained challenging in many

countries, including in Russia, Brazil and

China. Return on sales improved to 12.3

percent and return on investments was up

at 11.7 percent. AkzoNobel remains on

track to deliver its 2015 targets.

Says CEO Ton Büchner: “We continue to

deliver on our aim to improve the

performance of our company. This will

position us well to make the most of

future opportunities and growth. The

second quarter continued to show the

positive impact of our focus on

profitability and leadership in

sustainability. The global economy

remains challenging and shows a very

mixed picture with different dynamics per

region and customer segments. We

AkzoNobel

4

remain on track to deliver our 2015

targets.”

Decorative Paints achieved a solid growth

in profitability, with operating income

increased by 25 percent and revenue up 6

percent. Operating income showed

improvement with an increase of 25

percent, due to the new operating model,

lower costs, reduced restructuring

expenses, strict cost containment and

favourable currency developments.

Revenue was up 6 percent, mainly driven

by favourable currency effects. Volumes

for the second quarter were up in Asia,

while volumes were down for Europe and

Latin America.

Performance Coatings benefitted from

cost reductions created through

performance improvement initiatives,

margin management activities,

manufacturing productivity and

favourable currencies which resulted in an

increase of operating income of 24

percent. Revenue was up 8 percent across

all reporting units, benefitting from

favourable currencies and a higher

demand for premium products. Volumes

declined mainly due to lower capital and

maintenance spending in the global oil

and gas industry. Russia, Brazil and China

remain challenging.

Specialty Chemicals operating income

increased by 55 percent (31 percent

excluding incidental items related to the

divestment of Paper Chemicals business).

The results were supported by the

increase of production at the new

Frankfurt plant, operational efficiencies

throughout the business and favourable

currency developments. Revenue was up

5 percent due to continued favourable

currency effects, partly offset by the

impact of the divested Paper Chemicals

business. Volumes overall were flat.

Growth in some segments compensated

for lower demand in oil drilling segments.

North America continued to show a

positive trend while growth in Asia was

subdued and demand remained weak in

Europe and South America.

Outlook “Exchange rate movements,

positive market trends in North America

and no improvement for Europe overall,

as well as lower growth rates in many

countries, including Russia, Brazil and

China, are determining the dynamics of

2015. Our significant actions taken in

recent years form a sound basis for

further improved performance. We are on

track to deliver our targets for 2015.”

Source: AkzoNobel, 21 July

PPG Industries’ protective and marine coatings (PMC) business has

announced that four individual coatings and primers and two combined

coating-and-primer systems have been certified by NSF International for

water-tank applications. The new NSF certifications for PPG PMC

PPG

5

products include the following:

AMERCOAT® 133/844 pit-filler is a hand-applied coating designed to fill deep holes in pitted steel surfaces with a single pass. It features a 100-percent solids formulation and emits almost zero volatile organic compounds (VOCs), and it trowels easily to a smooth finish.

SIGMAWELD™ 199 primer is a weldable preconstruction primer that provides up to 12 months of corrosion protection during construction and offers extended recoatability thereafter. Designed specifically for metal fabricators and plate-steel shops, SIGMAWELD 199 primer has a low-zinc, low-solids formulation that dries quickly, adheres strongly and applies easily to thicknesses of 1 to 1.5 mils in addition to providing a wide window for final coating system application.

NOVAGUARD™ 810 coating is a high-build, single-coat novolac-epoxy lining. With a solvent-free, 100-percent solids formulation, NOVAGUARD 810 coating cures rapidly and achieves 30-40 mil thickness in a single coat.

Amercoat 68MCZ primer is a zinc-rich urethane primer for new construction and field-maintenance of water tanks. It is compatible with other organic and inorganic zinc primers and cures rapidly to enable accelerated topcoat application.

NSF International also certified PPG water-tank coating systems incorporating NOVAGUARD

810 coating over Amercoat 68MCZ primer and NOVAGUARD 810 coating over SIGMAWELD

199 primer.

Diane Kappas, PPG Vice President, Protective and Marine Coatings, Americas, said the NSF

certifications enable PPG to expand its range of coatings solutions for water-tank builders,

fabrication shops, subcontractors and maintenance personnel.

“PPG coatings and primers have a long history of proven performance in the water-tank

field,” she explained. “The NSF stamp of approval makes it easier for customers to specify

PPG products as a single-source solution and to choose a PPG coating system best suited to

a particular application.”

Source: PPG, 21 July

Thor has

confirmed its

commitment

to the Asia

Pacific market with the opening of its

newly commissioned facility in Zhenjiang,

China.

Phase 1 of the 50,000 m2 site, at a total

investment of US$50 million, is complete

and fully operational, marked by the

official opening ceremony in April. The

Thor

6

facility comprises 3,000 m2 offices and

laboratories, 5,000 m2 warehousing and a

production plant capable of an output in

excess of 30,000 tonnes of Thor’s in-can

and dry film ACTICIDE® biocides, extensive

range of liquid and solid Microcare® quats

and AFLAMMIT® flame retardant

products.

Thor's Mark Jamieson, Regional Director,

Asia Pacific confirmed, “This new facility

will ensure ready product availability, not

only to the Chinese domestic market, but

also to the whole region, in particular our

expanding markets in Australia, Taiwan,

Korea and Japan.”

This major new development for the

Group comes on top of the recent

expansion of a similar multi-million dollar

facility in Querétaro, Mexico to supply the

Americas which, along with its principal

European facility in Speyer, Germany and

six further manufacturing sites worldwide,

strengthens Thor’s position as a global

supplier of speciality chemicals.

Source: Thor, 20 July

CityCenterDC offers a transit- and pedestrian-oriented

neighbourhood experience in downtown Washington, D.C.,

that blends 2.5 million square feet of shops, restaurants,

apartments, condominiums, offices, a hotel and public spaces.

One of the largest urban infill projects ever undertaken in the city, this 10-acre, mixed-use,

LEED-certified development occupies 3.5 city blocks and eight buildings. For the two office

towers, Valspar’s Fluropon coating systems were selected to meet the project’s aesthetic,

performance and sustainability goals.

As the owner and master developer, Hines was selected by the District of Columbia in 2003

to purposefully create the massive US$1 billion campus on the site of the former

Washington Convention Centre. The project is situated in the heart of downtown’s office

core, along a ceremonial stretch of New York Avenue between the new D.C. Convention

Centre and the U.S. Treasury and White House.

Foster + Partners, an international studio for architecture, planning and design based in

London, served as the master-plan architect for the overall project and the design architect

for the office and for-sale-housing components. Shalom Baranes Associates, P.C., a

Washington-based architectural firm, served as the executive architect for all buildings,

associate master-plan architect and the design architect for the two rental apartment

buildings.

Each 11-story office tower contains 280,000 square feet with an unobstructed 360-degree

view from the inside of every floor with glass pedestrian bridges linking the two office

Valspar

7

towers. High-end retail shops and restaurants are located around most of the ground level

of both office towers with large aluminium and clear glass storefronts.

Defining the offices’ sleek metallic and glass exterior, TSI/Exterior Wall Systems, Inc.

installed the aluminium-framed curtainwall and storefront plus the aluminium panels and

sun shades manufactured by Baker Metal Products. Texas Finishing Company finished the

majority of these architectural building products in a Bright Pewter colour using Valspar’s 70

percent PVDF resin-based Fluropon Classic II coatings. A two-coat Fluropon finish in Black

Buckle was selected for the ground floor storefront systems.

“We selected Valspar for this project due to superior quality and customer service we

receive during all phases,” said Ken Martin, Texas Finishing Company’s General Manager.

“From bid time and paint selection as well as product application to completion, Valspar has

always been there to assist in providing a quality product and service to our customers.”

Valspar’s Fluropon coatings meet or exceed the American Architectural Manufacturers

Association’s stringent standard, AAMA 2605 high-performance exterior specification.

Fluropon demonstrates reliable performance including resistance to harmful ultraviolet

rays, chemical degradation, abrasions and humidity. These attributes and proven durability

may contribute to green building criteria, such as the project’s LEED certification.

Source: Valspar, 20 July

WACKER, the

Munich-

based chemical group, has presented Dr.

Andreas Köllnberger with the 2015

Alexander Wacker Innovation Award. The

41-year-old chemist had developed a

process for producing ultrathin silicone

films. As thin as 10 micrometers, the

precision films are very versatile. Due to

their dielectric properties, they are ideal

for use in electronics, robotics, sensor

systems and medical technology, and

enable the development of innovative

products. The award ceremony took place

during the Group’s annual research

symposium at its plant in Burghausen,

Germany.

This year was the fourth time that the

€10,000 innovation award had been

presented for product innovation. Dr.

Köllnberger and his team developed a

process to produce silicone films that are

only 10 to 400 micrometers thick. The

high-precision films are extremely

uniform, their thickness not varying by

more than five percent over their entire

area. The production process is fully

automated and takes place in a closed

system under cleanroom conditions. For

the first time, it is possible to produce

WACKER

8

silicone film of very high quality and purity

as roll stock on an industrial scale.

Due to their wide-ranging properties,

silicone films are suitable for numerous

industrial applications. Since silicone is

selectively permeable to gases, such as

oxygen and carbon dioxide, silicone films

are ideal for gas separation and for

producing wound dressings. Moreover,

silicone films are of interest for

developing novel sensors and actuators.

Due to their dielectric properties, they can

be used as electroactive polymers in

intelligent sensors, artificial muscles,

energy-saving electrical relays and valves,

and in the generation of electricity.

“Few companies have influenced silicon

and silicone chemistry from the outset as

much as WACKER,” said Executive Board

member Auguste Willems in his speech at

the award ceremony in Burghausen. “Our

portfolio of silicones has grown to include

thousands of products. The outstanding

work of Dr. Köllnberger and his team has

now added another highly promising

product.”

Willems handed over the award during

the 43rd R&D symposium, which, as in

previous years, was held at WACKER’s

main plant in Burghausen, Germany. The

2015 Alexander Wacker Innovation Award

attracted entries from 48 employees,

including from sites in China, India, Japan

and the USA. Examples of the product

innovations submitted ranged from a

terpolymer for formulating low-emission

tile adhesives through to new polyvinyl

acetate solid resins for gumbase and a

silicone fluid emulsion developed

specifically for Asian hair-care products.

“This year, the standard was again

extremely high,” said Willems. “All

submitted product innovations are very

promising, with strong profits likely.”

About the Alexander Wacker Innovation

Award

Since 2005, the Munich-based chemical

company has honoured employees’

outstanding R&D work at its annual

research symposium. Named after the

company’s founder, the €10,000

“Alexander Wacker Innovation Award”

rotates between the categories of product

innovation, process innovation and basic

research. Next year, the groupwide

research competition will focus on process

innovation.

Source: WACKER, 17 July

Global speciality chemical company Evonik Industries, one of the

world’s leaders in innovation, has inaugurated its Richmond

Business and Innovation Centre.

Dr. Klaus Engel, Chairman of the Executive Board of Evonik

Industries AG, along with other company executives and state, county and local officials, cut

Evonik

9

the ribbon for the new $15.4 million facility in the Greater Richmond area as more than 140

employees, dignitaries and guests marked the occasion.

“At Evonik, new ideas are being incubated while I speak,” Engel said. “Our intention is to

turn Evonik into one of the most innovative companies in the world. Evonik’s vigorous

culture of innovation will be further strengthened by our new Richmond Business and

Innovation Centre. The centre will not only develop new products and processes but also

bring together colleagues from different parts of the company to identify breakthrough

technologies.”

In its continuous pursuit of innovation, Engel noted that Evonik has established strong

relationships with leading universities, around the world. “Here in Richmond, we are

collaborating with Virginia Commonwealth University,” Engel said. “We are participating in a

design project for process sustainability with VCU’s Engineering College and we are actively

engaged with one-on-one discussions with renowned professors.”

Evonik’s Richmond Business and Innovation Centre is a major benefit to the Greater

Richmond area, added David DelGuercio, Senior Vice President and General Manager,

Evonik Nutrition & Care, North America.

“Rather than build an Innovation Centre elsewhere, Evonik purchased a vacant 96,000

square foot structure here and transformed it into a state-of-the art Business and

Innovation Centre,” DelGuercio said. “We expect to grow and add 50 jobs over the next five

years. In addition, by locating the Centre in the Greater Richmond area, Evonik preserved

125 local full-time jobs.”

With the new facility, Evonik more than doubles its laboratory and commercial space in the

Greater Richmond area. The centre combines innovative research and development,

marketing, sales, customer service, and support functions such as environment safety and

health, procurement, controlling, human resources, and information technology in one

facility to foster collaboration, networking and creativity.

Evonik believes innovation is performed by people — not by processes, projects or

machines, added DelGuercio. “The company believes the keys to innovation are creativity,

courage and team spirit,” he said. “The innovation culture of a company determines how

fast employees are able to drive forward good ideas and convert them into a profitable

business. The Richmond Business and Innovation Centre will play an integral part in this.”

With around 500 projects in its innovation pipeline, Evonik is already one of the world’s

most innovative companies.

Source: Evonik, 21 July

10

THE EUROPEAN MARKET FOR THERMAL INSULATION

PRODUCTS

IAL Consultants is pleased to announce the publication of the tenth edition of its popular study on The Market for Thermal Insulation in Europe

This new study updates and expands upon the information included in our previous study published in 2013, with all data available for the first time in our online database platform enabling the customer greater ease of comparison and data manipulation. The report contains market data by material type and end-use application for the base year of 2014. Data is presented in both volume (cubic metres and tonnes) and value (€ million). Unique to this edition is that the update shows five-year forecasts to 2019. The information contained within this report is based upon an extensive programme of interviews throughout the industry and across the different geographies in Europe. This has been further supported by an analysis of economic indicators and relevant legislation and/or technical issues affecting demand for thermal insulation materials. The analysis covers 27 countries (including all major European thermal insulation markets) split into 15 individual country volumes, and covering all of the most commonly used insulation materials. An additional 4 material volumes focus on a specific insulant type individually (mineral fibre, EPS, XPS & PU/PIR) and present data for the regions of Western, Central and Eastern Europe, and then for the same 27 countries. Purchasers of the complete study set will receive an Executive Summary volume free of charge. Market Summary The total market for thermal insulation products in Europe stood at just under 234.6 million m3 in 2014 (7.4 million tonnes). This equates to an approximate market value of €11.5 billion. Commercial and domestic buildings continue to represent the bulk of the demand for thermal insulation materials in Europe, with the overall use in industrial applications remaining smaller.

Western Europe

59%

Central Europe

16%

Eastern Europe

25%

European Thermal Insulation Market by Region, 2014

NEW FROM IAL CONSULTANTS

Building 87%

Industry13%

European Thermal Insulation Market by Main Application Type, 2014

11

Although the construction industry has remained relatively subdued ever since the outbreak of the financial crisis in 2008, concerns over improved energy efficiency in buildings and rising energy prices are making insulation materials a popular solution. Regulatory authorities are highlighting the importance of minimising heat loss through the building envelope and are adopting legislation encouraging zero energy buildings. Retrofit construction is now also regulated and minimum energy performance standards have been set, which are a key driver for thermal insulation materials.

Likewise, product awareness is on the rise. There is much talk about the fire performance of the different insulation materials and the mineral wools are well positioned in this respect. Glass wool and stone wool are well established, and combined represent 58% of the European thermal insulation market. Manufacturers are promoting their ‘natural’ fire protection characteristics and lobbying against the use of other plastic foam insulation materials, especially EPS. Whilst EPS remains a very popular material in external wall insulation in much of the region, EPS consumption in many Western European countries has started suffering from its behaviour in case of fire. This is not necessarily the case in Eastern Europe, where the lower price of EPS continues to favour its use in construction. The higher requirements for thermal insulation materials are inherently increasing the thicknesses of these. Polyurethanes offer the competitive advantage of being slimmer than other materials. The thermal insulation market is poised to grow at a rate of 2.8% year-on-year to 2019. The growth in Central and Eastern Europe combined (3.2% CAGR) is expected to surpass that of Western Europe (2.5% CAGR), where the thermal insulation market is more mature. The economies in Central and Eastern Europe are developing more vibrantly than those in their Western counterparts. Provided these growth rates are sustained, the total demand for thermal insulation products in Europe would reach a total of 269.3 million m3 by 2019. At

36.0%

22.0%

27.1%

6.4%

0.1%

8.1%

0.4%

European Thermal Insulation Market, 2014 (m3)

Glass wool

Stone wool

EPS

XPS

Phenolics

PU/PIR

Flexible Insulation

12

the current time, interesting growth is reported in countries including Germany, Italy, the United Kingdom and Turkey. The European Market for Thermal Insulation Products is now available from IAL Consultants. Prices start at €1,100 for single country volumes. The whole report is priced at €8,000. All data in this report plus additional historical trends and forecasts are now available in our unique online database. Introductory discounts are available. To purchase the report or for more information please contact: Mrs Cathy Galbraith IAL Consultants Email: cgalbraith@brggroup.com Website: www.ialconsultants.com

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