News Updates

February 2010

Rubber prices reach an all-time high
Rubber prices reached an all-time high in 15 months, in line with the global recovery expected this year, according to a recent report.

Futures in Tokyo gained as much as 3.3% to the highest level since September 2008. In China, the world’s largest rubber consumer, businesses continued to expand while US manufacturing continued to expand and factory bookings increased.

Investors are buying the raw material on a speculative run against the back of better economic conditions while rising car sales in China will push the price of the commodity up since it is mainly used in tyres.

Prices more than doubled last year, the best performance since at least 1976, according to Bloomberg. Raw materials may return more than financial assets this year for the first time in three years as the global economy rebounds, according to Bloomberg.

Improved roller head unit
To meet the stringent requirements of the market, Kraiburg has started offering calendered plates produced on a new roller unit.

The production line sets new standards as regards quality due to the use of a cold-feed pin-type extruder that ensures gentle and uniform heating and mixing of the material, which is then processed to calendered sheets.

Processors including manufacturers of rubber rollers benefit from a number of improved properties like better surface finish with smoother plates that are nearly 100% free of blisters. The new calendered sheets are available in thicknesses of 0.3 to 10 mm and a maximum width of 1,500 mm. The combination of automated roller gap adjustment and integrated online thickness measurement also ensures dimensional accuracy during production.

The production line consists of the QSM 150 pin-type extruder with automated screenchange system; two-roller calender (600 x 2,000 mm) with hydraulic roller adjustment and continuously adjustable drive; laser monitoring of the dimensional accuracy and automated roller gap adjustment; four cooling drums; two semi-automatic centre winders with intermediate rotor unwinding station and process data recording with a roll weight of 30 to 500 kg.

December 2009

Cloning to boost Malaysian rubber yield
A rubber cloning technology is giving small Malaysian planters, led by the Rubber Industry Smallholder Development (RISDA), high hopes to increasing their produce with a better quality latex and longer lifespan for the trees.

Malaysia, which used to be the world’s top producer of rubber, has slipped rank below Thailand, Indonesia and India – currently the leading producers. With the integration of the technology into the country’s production it is anticipated that it will regain its foothold in the market.

The cloning technique can produce 2, 600 kg to 3,000 kg of latex per ha, says Ali Noordin Wahiddub, Deputy Director-General for Development at RISDA. The move can offset the impact of changing crops for cultivation and conversion of land to residential areas on the declining rubber yield.

More than RM37.5 million has been allocated for the rubber replanting project in the state of Pahang that will start in 2010. About 20,000 ha nationwide will be utilised for RISDA’s replanting progamme.

Rubber drop slows
Global consumption of rubber remained below 20.8 million tonnes in the third quarter, with the year-on-year decline in consumption slowing marginally to -12.0% in September, compared to a low of -12.8% reached in July, says the International Rubber Study Group (IRSG).

Global rubber production (both NR and SR) appeared to level off at 21.1 million tonnes during the third quarter, at which point the decline in output reached -10.9%. According to IRSG, the last time a fall of this magnitude was recorded was in August 1975.

In the short term, following the declines seen in 2009 and assuming a relatively strong recovery in the world economy, global rubber consumption (both NR and SR) is forecast to reach 23.9 million tonnes in 2010, with NR production of 10.4 million tonnes. In the longer term, global rubber consumption is forecast to reach 30.4 million tonnes by 2019, with NR production of 14 million tonnes.

Curbing rubber shortage with new technology
US-based waste-to-energy SNRG Corporation will use new devulcanising techniques through its tie-up with Enviropark Global to ensure that the supply of NR is consistent.

The growth in the automotive industry and its consumer base has proportionally increased new rubber consumption and generated a waste land for old rubber tyres. Evidences show that the global demand for rubber has exceeded to 22 million tonnes/year and is likely to cause supply shortage and hike in the price of NR, which has already been up by 400% since 2001.

The advanced materials and recycling technology, which works by the process of gasification, is quality-tested to bring viable and cost-effective commercial results for thousands of manufacturers as devulcanised rubber can be used for producing new rubber products.

High viscosity rubber grade for tyres
A range of highly elastic neodymium-polybutadiene (Nd-BR) rubbers with a grade of particularly high viscosity is being promoted by Lanxess.

Buna CB 21 has a Mooney viscosity of 73 MU and features outstanding rebound resilience and particularly low heat build-up, making it ideal for cutting rolling resistance of car tyres. This is a key feature of significance, particularly with respect to the efficiency labelling of tyres that has already been mandated by the European Parliament.

The rebound resilience of a rubber – closely linked to heat build-up under stress – is critical for rubber products subjected to dynamic loads. It is an indication of how economically an elastomer uses energy during deformation. High rebound resilience indicates that a rubber transfers a large proportion of the mechanical energy that is introduced, or releases this after loading, without converting it into heat and therefore wasting it. Rubber molecules that are as long as possible and have a uniform length/molecular weight are ideal for high rebound values. This makes a material of this type suitable for achieving a further significant decrease in tyre rolling resistance – essentially the proportion of drive energy converted into heat by rolling as a result of inevitable deformation – compared to products filled with silica.

Latex conference next year
iSmithers will have its sixth international conference for the latex and emulsion industry in Amsterdam, the Netherlands, from 23-24 March 2010.

Latex and Synthetic Polymers Dispersions 2010 will provide a forum to discuss all the latest market, technology and materials news, addressing perennial problems such as latex allergies and the need to find cost effective alternatives to natural latex, particularly in the face of rising oil prices. The conference will cover a wide range of applications from the use of water-based dispersions and latices as substitutes for solvent-based systems such as adhesives, sealants and coatings to the use of latex for condoms and disposable medical gloves. For information about this conference please visit www.polymerconferences.com or email conferences@ismithers.net


November 2009

Tyre companies fare better in the third quarter
While third quarter results from tyre majors Bridgestone, Goodyear and Michelin were better than the second quarter Hankook stood out with its whopping increase in profit.

Goodyear reported 15% lower sales, compared to 2008, but 11% higher than the second quarter. “The strength of our brands and steady stream of new and innovative tyres such as our branded fuel-efficient tyres provided marketplace momentum and led a strong third quarter performance,” said Robert J. Keegan, Chairman. During the third quarter, the company reduced its global work force by 300 positions, adding to approximately 5,500 first half reductions. The company’s full-year target was a reduction of 5,000 positions.

Sales for Michelin, the world's second largest tyre maker, dropped 11% in the third quarter, compared to the same period last year. The company said its passenger car tyre sales were EUR2.09 billion, a 4.6% decrease. Truck tyres dropped to EUR1.21 billion, an 18% decrease. Michelin maintains its objective of generating positive free cash flow in the second half of 2009.

Japanese Bridgestone, meanwhile, reported net sales of US$20.75 billion and operating income of 12 billion, a decrease of 25% and 90% respectively, compared to the previous fiscal year. Its net loss was US$303.37 million, while its net sales and operating income decreased by 24% and 83% respectively from last year. The company said unit sales of tyres in Japan and the US were down due to the impact of slumping demand brought on by a major decline in sales for passenger cars, light trucks, trucks and busses.

The only bright spot was from South Korean Hankook Tire that had 26.4% higher sales and what it says is an “astounding” increase in operating profit of 536.4%. Hankook also attained a global operating profit rate of 19.1%. Said CEO Seung Hwa Suh, “Despite the economic climate, Hankook Tire has continued to stand out with its record high performance.” He also said that Hankook remains positive about growth prospects for the future. The US replacement sales in the third quarter jumped 18% over the second quarter and were 21% ahead of the same period for 2008. The most significant boost in sales has come in the ultra-high performance tyre segment.

Expansion of rubber reclamation
In the UK’s rubber reclamation sector, a new devulcanisation technology is being further developed while a new crumbing business will reclaim tracks and an existing tyre crumbing operation diversifies.

The DevulCO2 project to devulcanise rubber, which was completed last year, involves a continuous de-vulcanisation system for waste tyres combining supercritical carbon dioxide with chemical devulcanisation agents in an autoclave.

Now, a new ReMould project has been set up to move the technology beyond tyres, to include other scrap rubber products, such as EPDM automotive weatherstrip. The project, which will expand into large scale production, will be used to manufacture a range of goods and also extend the technology into the production of extruded profiles. The ReMould consortium includes the original DevulCO2 project members, Smithers Rapra, PJH Partnership, Martins Rubber Company, BD Technical Polymer, J Allcock & Sons and Charles Lawrence International, plus Kingpin Tyres and the London Metropolitan University.

Meanwhile, PMC Rubber Track Recycling has started a new crumbing business in Strathclyde, Scotland, which will reclaim tracks fitted to diggers and earth-moving equipment. The company has designed a machine, which will be patented, that removes the steel links from the tracks before shredding the rubber. Apart from the UK, PMC says it will sell the steel and rubber to South Korea, Dubai and China.

According to PMC, no other company in the world offers a similar service and it has secured contracts with track supply companies Osprey Industrial and SPS (Southern Plant Spares). It says that approximately 70,000 rubber tracks are sent to landfills every year in the UK, amounting to more than 10,000 tonnes of steel and rubber.

In related news, tyre shredding company Swiers and Grainger in York has now invested £62,845 in recycling equipment to widen the range of tyres it can handle, enabling it handle an extra 6,284 tonnes of rubber waste over the next three years.

The company's existing shredder had the capacity to shred 360 tyres/hour but tyres had to be cut manually to feed it and the shredder could not be loaded fast enough to achieve its maximum capacity. The new investment includes a pre-shredder to automate tyre cutting, which means the main shredder can run to capacity, tripling productivity. The shredded rubber produced is used as flooring for riding arenas.


October 2009

Dunlop Aircraft Tyres to record its centenary
To mark its 100 years in business next year, Dunlop Aircraft Tyres is planning to publish a book about its history and is asking its employees to help provide the content.

Said Chairman Ian Edmondson, "We are looking for people to help with memories, information or contacts and photographs that we can include – either about the firm itself or its place historically within the larger Dunlop/BTR organisation. Indeed it is the personal memories that will bring this book to life and, as so many people have either worked for Dunlop themselves or have had a friend or family at the company, we are sure that there are lots of stories out there ready to be told." For more information email century@dunlopatl.co.uk

Elastic rubber grade for tyres
A range of highly elastic neodymium-polybutadiene (Nd-BR) rubbers has been expanded with the introduction of a high viscosity grade by Lanxess.

Buna CB 21, with a Mooney viscosity of 73 MU, features improved rebound resilience and low heat build-up, making it useful for cutting the rolling resistance of car tyres. This is a key feature, particularly with respect to the efficiency labelling of tyres that has already been mandated by the European Parliament.

The rebound resilience of a rubber – closely linked to heat build-up under stress – is critical for rubber products subjected to dynamic loads. It is an indication of how economically an elastomer uses energy during deformation. High rebound resilience indicates that a rubber transfers a large proportion of the mechanical energy that is introduced, or releases this after loading, without converting it into heat and therefore wasting it.

Rubber molecules that are as long as possible and have a uniform length/molecular weight are ideal for high rebound values. This makes a material of this type suitable for achieving a further significant decrease in tire rolling resistance – essentially the proportion of drive energy converted into heat by rolling as a result of inevitable deformation – compared to products filled with silica.

Though the new elastomer is initially being produced for the worldwide market at the company’s Dormagen site in Germany, other facilities such as those at Port Jérôme, France, and Orange, US, may also manufacture it in the future.

Second leg of speciality chemical plant
Wacker Chemie and Dow Corning are constructing the second phase of their pyrogenic silica plant in Zhangjiagang, Jiangsu province, China.

The pyrogenic silica plant, together with a siloxane plant, is a key facility of an integrated silicone manufacturing site developed by both companies at Jiangsu Yangtze River Chemical Industrial Park in Zhangjiagang to produce materials used extensively in industries, including construction, beauty and personal care, power and automotive.

Covering an area of 1 million sq m, the site is China’s largest facility of this kind and said to be among the world’s largest and most advanced integrated production complexes for silicones.

The overall nameplate capacity for both siloxane and pyrogenic silica, including the second phase silica plant, is expected to be 210,000 tonnes/year.

Pyrogenic silica is a nano-structured speciality chemical. It can be used as an active filler in silicone elastomers, a viscosity-adjusting agent in coatings, printing inks, adhesives, unsaturated polyester resins and plastisols or as a flow aid, for example in the cosmetics, pharmaceutical and food-processing industries.

Both companies also own manufacturing plants for finished silicone products at the Zhangjiagang site.

Curing by light
A new range of elastomer products that can be cured by simply exposing it to UV light has been introduced by Momentive Performance Materials.

While silicone elastomers (HCR) are typically vulcanised with peroxide catalyst cured by heat exposure, this new UV-sensitive, platinum catalysed curing system also allows curing at room temperature. Part geometries commonly produced by extrusion processing can be cured within significantly reduced times compared to conventional silicone elastomers.

Over the past decade, the demand for silicone elastomers has grown steadily as the market shifted to the use of silicone as a replacement for other organic materials, largely due to the stringent biocompatibility, food contact and higher heat requirements imposed upon these materials. In particular, addition cure materials are increasingly being used in medical or food contact and water applications, due to a lack of peroxide residues, as well as FDA and BfR conformity.

UV cure technology can help provide energy savings and increased extrusion speed while maintaining the physical properties of silicone elastomers. The UV exposure time for the cure can be as short as 0.5 seconds, depending on the speed of the line and UV intensity. As the cure is initiated through UV radiation, the speed of cure is independent of the diameter and the cross-section of the extruded tube or profile. This allows high-speed extrusion without the risk of under-curing. Since the cure of the new UV silicone elastomers occurs at room temperature, this new technology also opens the potential for co-extrusion of silicones with temperature sensitive materials such as polyolefins and thermoplastic elastomers, which is not possible with traditional thermal cure silicone elastomers.


September 2009

100-year old SR still in the spotlight
The 100th anniversary of the founding of synthetic rubber (SR) by Fritz Hofmann was marked by speciality chemicals company Lanxess on 12 September, with a dedicated conference in Cologne, Germany, attended by 400 guests from 18 countries.

It was this day, a 100 years ago, that Hofmann’s employer Elberfelder Farbenfabriken (now known as Bayer) was granted a patent for the material. Since then the material has been opening up new frontiers, under the purveyorship of Lanxess, a company spun off from Bayer in 2005.

“Even after a 100 years, the potential of synthetic rubber is far from exhausted,” said Axel Heitmann, Chairman of Lanxess, at the day-long forum that had 14 speakers. He went on to say that no one could have predicted that the product would still be so successful a hundred years later. “We are building on the versatility and outstanding chemical properties of this material because we know that the future of synthetic rubber has only just begun.”

The material remains important to Lanxess’s portfolio, accounting for over 50% of its turnover. “We expect a 3% increase in global sales this year. Strong growth is expected in butyl rubber because 85% of its output is directed towards global production of tyres,” said Heitmann, adding that increased momentum for the material is being seen in China, India, South America and Southeast Asia.

Heitmann said that, given the current economic situation, demand for SR was picking up “at low levels”. But he added, “We do not know if the demand is sustainable and it will take a long time before the prices get back to the 2007/08 levels.”

The company is also continuously expanding its product range, which at the last count was a hundred, and has committed an additional 10% spending on R&D, despite the global downturn and cost cutting measures.

The importance of R&D at Lanxess was emphasised by Heitmann who spoke about the new technology innovation the company is working on, with a few partners, to be implemented at its Singapore butyl rubber plant, which will now start up in 2014 after having been delayed. “We cannot disclose details now, but you will all be surprised!”

At the forum, Lanxess also highlighted a new HNBR (hydrogenated nitrile rubber) grade that is said to be “as liquid as oil” and is expected to open up a new area of use in gaskets. The other new innovation, Nanoprene nanoadditive, was recently commercialised with Japanese company Toyo Tire being its first taker. When added to tyre production, it has no detrimental impact on rolling resistance and wet grip but reduces abrasion, which extends the lifespan of the tyre.

Amongst the speakers at the forum was Georg Weiberg of Daimler Trucks who said that reducing fuel consumption and achieving maximum vehicle reliability were the most important challenges for the automotive industry of the future. Daimler's objective was to cut fuel consumption by 20% by the year 2020 by lowering the weight of the vehicles, improving the rolling resistance of tyres and developing special wheel trims.

Another speaker Didier Miraton, Managing Partner of the Michelin Group, said, ”We must look even further ahead and begin to dream if we want to prepare ourselves for the future.” He said that the company recognised that fuel saving tyres would be important for mobility in the future and have therefore been working on this for 15 years.

Meanwhile, Horst Wildemann, Professor at the Technical University in Munich, suggested that development teams should be bold enough to explore new avenues having already spent 100 years with this flexible material. “We still have a growth potential of 5-9% in Europe for synthetic rubber,” he said.

Fritz Katzensteiner, Managing Director of the WDK – the Association of the German rubber industry – said there are still wide-ranging possibilities for expansion above all in the automotive industry but also in medical technology and sports. He said the main challenges were the development of new, environmentally friendlier substitutes for rubber production, the breaking down of international trade barriers and man's changing mobility.

China fights back US penalties
The Chinese Rubber Industry Association has urged the government to increase tax rebates, reduce export tariffs and to buy more locally-made tyres to offset the effect of new import duties imposed by the US.

The decision by the US government to impose added duties on tyres that come from China resulted in strong complaints from Chinese tyre companies. The Chinese government is accusing the US of promoting protectionism and is said to be mulling over the lodging of a formal complaint to the World Trade Organisaion.

Meanwhile, in the US, penalties on products from China are welcomed by the United Steelworkers union, people who are important to the President's healthcare plan push. The union says that imports of Chinese tyres in recent years led to the closure of five US tyre plants and the loss of thousands of jobs. The union represents about 15,000 hourly workers who make tyres in the US for Goodyear, Bridgestone and Michelin.  

Imported Chinese tyres to the US totalled less than 15 million in 2004 but rose to more than 46 million in 2008.

But not everyone welcomes the additional tariffs especially Cooper Tire & Rubber, which is a major importer of Chinese tyres, Toyo Tire Holdings of America (a subsidiary of the Japanese company), tyre importers and the farming community that is afraid of a Chinese boycott of American agriculture products.

Rubber consumption at its lowest
Global rubber consumption was 20.8 million tonnes in the year to June 2009, its lowest level since May 2005, according to a new report from the International Rubber Study Group.

The year-on-year consumption growth at the same point was -12.3% and this compares to a growth rate of -3.5% reached in March 2002, at the height of the last global economic downturn.

The global synthetic rubber (SR) production declined by 13.7%, in year-on-year terms in June 2009, while global natural rubber (NR) production fell by 3.7%. The more pronounced decline in global consumption compared to global production has moved the NR market into modest surplus. Global NR consumption is projected to fall by 5.5% in the 2009 calendar year, while SR demand is forecast to decline by 7.3%; meanwhile, global NR production is projected to fall by 4.8% in 2009.

Using a more pessimistic global economic growth scenario, with 2009 and 2010 growth rates set at 0.4%, below those forecast by the IMF, which form the base scenario, results in 0.9-1.9% lower rubber consumption over the period. Under a more optimistic scenario, in which global growth in 2010 recovers to its 2008 level, rubber consumption would be 0.7-2.1% higher than the base scenario.

Dow beefs up SR capabilities
US chemicals giant Dow Chemical has set up a synthetic rubber (SR) laboratory at its Freeport site in Texas and is streamlining its EPDM plant in Louisiana.

The new laboratory will be for the compounding, mixing, processing and testing of thermoset elastomers and will complement the existing polymer analysis, material science and physical testing capabilities at the site.

Meanwhile, at its Louisiana plant, the company is expanding its output to add around 11,000 tonnes of capacity through process improvements. This is due to be completed in the first quarter of next year.


August 2009

Nanoprene to drive the tyre market
Targeted primarily at the tyre market, Lanxess has developed a polymer additive that is now available for industrial application.

These microgels, which consist of nanoscale organic particles, can be used to improve the material properties of elastomer and thermoplastic materials. Lanxess’s Technical Rubber Products (TRP) and Rhein Chemie business units worked together closely and have applied for numerous patents. These cover the processing method, the use of nanoparticles in rubber mixtures and the impact on thermoplastic and thermoset polymers. The product will be sold as Nanoprene by TRP while Rhein Chemie sells the additive under the brand name Micromorph.

Rhein Chemie worked with Japanese tyre manufacturer Toyo Tire to incorporate the additive in the production of winter tyres, said to boast dry and wet road grip, without the tyre rubber hardening on contact with snow or ice.

Different Nanoprene grades can be used to satisfy different requirement profiles for winter/summer tyres and various tyre components (tread, side wall and carcass) in line with their glass transition temperature.

The physical properties of rubber give rise to a conflict of objectives – also known as the magic triangle of tyre technology – between certain parameters of the rubber. For example, improving wet grip in the past was only achieved at the cost of higher rolling resistance and, therefore, greater fuel consumption. Using the new nanoparticles as an additive can improve all three properties of the magic triangle – wet grip, rolling resistance and service life of tyres.

Lanxess says in tests it conducted, using Nanoprene in summer tyres, for example, improves dry road grip by between 10 and 15%. It also improves the stiffness of the tread blocks, which has a positive impact on the cornering properties under aquaplaning conditions. The abrasion resistance of tyre treads containing Nanoprene is also much higher than those based on standard silica mixtures.

In principle, Nanoprene consists of pre-crosslinked rubber particles that are manufactured by the German company using a patented emulsion process. Different conditions can be achieved during the synthesis process, for example in terms of the degree of crosslinking (glass transition temperature) or polarity of the particles, depending on the required application. With particle sizes ranging between 40 and 200 nanometers, Nanoprene has a large specific surface area, which leads to improved distribution and joining of the silica filler to the polymer matrix.

After the manufacturing process, the rubber additive is available in the usual delivery forms such as bales, granules, powders, pastes and masterbatches.


July 2009

Carbon REACH
A group of companies have submitted the REACH dossier for carbon black to the European Chemicals Agency (ECHA) in Helsinki.

The consortium includes Evonik Degussa, Cabot, Columbian Chemicals, Timcal Belgium, Sid Richardson Carbon & Energy, Continental Carbon and Cancarb. After validating the completeness of the dossier, ECHA issued the registration number for carbon black to Evonik Degussa, which acted as lead registrant on behalf of the consortium. The submission included both the technical dossier and the chemical safety report. Once the remaining consortium members file their supplementary registration documents, all seven companies will be fully registered ahead of the November 2010 deadline. The consortium invites other interested companies to participate in the joint submission of the Carbon Black Consortium by way of a letter of access. More information is available at: www.cb4reach.eu/.

Lanxess delays butyl plant to focus on new technology
Due to the global downturn, German chemical company Lanxess has put on hold its largest investment project to date in Asia, which is the EUR400 million butyl rubber plant to be built in Singapore.

The 100,000 tonnes/year plant will now start up in 2014 instead of 2011. The company says the delay in the project is due to the lower demand for butyl. Lanxess is also working on a new technology for the production process, which has so far been tested on a pilot plant. Touting it as a more energy-efficient, cost effective and environmentally friendly technology, Lanxess plans to invest what it says is a substantial sum in researching it over the next few years.

Meanwhile, the company has not totally given up on Singapore and it is looking at moving its butyl rubber headquarters from Switzerland to the Asian country. It is currently negotiating with the Singapore Economic Development Board with a view to managing the global business of the butyl rubber business unit from here in the future.


June 2009

Self-healing elastomer
A rubber material where cracks or breaks can be repaired simply by putting the fractured surfaces back together and applying light pressure is now in the final stages of commercialisation.

Produced by Arkema, in a joint development with the Paris Ecole Supérieure de Physique et Chimie Industrielles (ESPCI) laboratory, the self-healing rubber, known as Reverlink, is based on the concept of supramolecular chemistry. These are composed of at least 60% fatty acid oligomers derived from vegetable oils, in line with Arkema’s strategy to increase the use of renewable raw materials.

Supramolecular materials feature so-called reversible (non-permanent) intermolecular bonds, in contrast with polymers derived from traditional chemistry, which are based on irreversible (permanent) bonds. It is this reversibility that imparts a capacity to self-heal. The materials recover nearly all their initial strength without the need for bonding or heating.

The self-healing elastomer technology can be used in an elastomer (rubber) part that is likely to suffer damage from micro-cracks or deep grooves. Arkema is exploring many industrial applications such as conveyor belts, sealing joints, impact protection, insulation and shock-absorbing layers, industrial gloves, anti-corrosion coatings for metal and formulation additives for adhesives, bitumen, organic binders, paints, varnishes, pastes and sealants. The company says it has signed 30 confidentiality agreements relating to possible developments.

During the past year Arkema has been fine-tuning a pilot plant at its Feuchy facility (Pas-de-Calais) in France that has a capacity of 100 tonnes/year.


May 2009

Barwell goes global and invests in China
UK-based rubber machinery supplier Barwell has been renamed as Barwell Global and invested US$1.1 million in a facility in China to reduce its overheads.
The company will retain its UK facility in Cambridge as its headquarters and design centre. The investment in the new facility in Shanghai is backed by a Taiwanese businessman, Dr Shieh, who also runs a multi-million dollar group of companies, in manufacturing, logistics and trading, in China.
The company says the Chinese facility will build machines to CE specification using its current European suppliers for parts and materials. As well as product design and development, the UK headquarters will offer worldwide sales, spares and service support. Barwell also has a direct presence in North America, through Barwell Machinery USA, in China, through Barwell China and in South America, through Barwell do Brasil, as well as a network of agents in more than 40 countries.
Involved in machine building since 1926, Barwell says it was the first to develop and use hydraulic ram extrusion technology. Its core business is in gear pumps and standard performers; ram extruders; cold feed screw extruders; cryogenic deflashing machines and microwave drying and heating systems.

German company looks to Asia for growth
While other European companies are barely staying above water, German ContiTech is confident that it will close its 2009 fiscal year successfully.
"We are convinced that ContiTech will be one of the companies that emerge from the global economic crises stronger," said CEO Heinz-Gerhard Wente, adding that the good positioning of the company would help it. "Some 50% of our sales come from products outside the automotive original equipment industry. For years this share has grown at an above average rate and we are adhering to this strategy."
Primary growth sectors for ContiTech are conveyor belts, which are required globally for the eco-friendly development of raw material deposits, and the booming rail vehicle technology field, especially in Asia. Wente also wants to beef up ContiTech's involvement in renewable energies, such as wind energy.
In 2008, ContiTech realised sales of EUR3 billion, with the conveyor belt unit recording an above average growth: sales increased EUR41 million from EUR428 million to EUR469 million. ContiTech also expanded its sales outside of Western Europe. Currently, 11% of its sales come from Eastern Europe, 10% from the US and 9% from Asia. "We are focusing our growth on China and the Asian region, as it is here that we see the best chances for significant economic growth once again," said Wente.
The company wants to make further targeted investments in 2009 with new plants in Brazil (Ponta Grossa, conveyor belt systems), China (Changshu, engine mounts) and Mexico (San Luis Potosí, surface materials). The company also spent EUR59 million on R&D last year.

Environmentally friendly tyres in Europe by 2012
Lanxess has welcomed the decision by the European Parliament to label tyres, a step it says is vital towards improved fuel efficiency, lower CO2 emissions and greater safety.
The European Parliament in Strasbourg passed a resolution that from 2012 onwards tyres must have details of their fuel efficiency, wet grip and rolling noise marked on them. The tyres are to be categorised in a system of classes, with the best performance being labelled Class A and the poorest Class G. This system will offer consumers an important decision-making aid when purchasing new tyres, since around 75% of all the tyres sold in Europe are, according to experts, bought to replace old, worn out tyres.
"With our modern high-performance rubber products, we can enable the tyre industry to comply already with the EU's strict requirements on safer, environmentally friendlier tyres," said Axel Heitmann, Chairman of the company. Lanxess expects the new regulations to bring a lasting, positive boost to the European tyre industry and to the Leverkusen-based speciality chemicals company in its capacity as one of the world's leading suppliers.
Heitmann also said that since the number of vehicles worldwide will double within the next 25 years, the widespread use of innovative tyre technologies is essential to allow the efficient use of fuels and to slow down climate change.

Tillotson licenses glove technology to Ansell
US-based Ansell Healthcare Products has taken a license from Tillotson to manufacture disposable nitrile gloves in the US and Europe.
This agreement also settled all disputes between the companies and their affiliates related to the manufacture and sale of such gloves. Neil Tillotson and Luc DeBecker developed this glove technology in 1990 and Tillotson Corporation was granted a patent in 1997. The Tillotson patent teaches how to produce a synthetic rubber glove that relaxes after being donned and comfortably conforms to the contours of the wearer’s hand.  All other terms of the license are confidential.


April 2009

New plant in India inaugurated
Since March rubber injection moulding machinery supplier Desma has started producing in India, near Ahmedabad, in a new factory.
When in 2007 the former production site, with an annual production of more than 100 machines to be produced for the Indian market, was bursting at its seams, Desma decided to build a new 5,200 sq m manufacturing and production plant on a land area of 11,000 sq m.
With this new building, Desma now also provides in India, besides mechanical engineering, a mould shop and an engineering centre for mould testing and optimisation as well as a training centre. Almost 80% of the machines produced are sold in India and around 20% in the Asian markets.

Rhein Chemie sales drop
Rubber chemicals producer Rhein Chemie ended the 2008 financial year with lower sales of EUR281 million, compared to EUR295 million in the previous year.
“Rhein Chemie performed very well in the first three quarters of 2008. This was marred by a significant fall in sales in the fourth quarter due to the general economic crisis,” said Anno Borkowsky, CEO/President.
The company’s business was affected by the marked downturn in the automotive industry. To mitigate the effects of the global recession, a package of structural improvements and HR-related measures was rolled out at the start of February, with the aim of lowering cash-outs by a single-digit million EUR amount.
Despite the difficult economic conditions, Rhein Chemie is continuing to pursue its growth strategy, with new production facilities started up as planned at its Mannheim headquarters and in Qingdao, China. The investment for both projects amounts to around EUR12 million.


March 2009

Malaysia to maintain its pricing for NR
Even with natural rubber (NR)’s price in the world market falling drastically, the Malaysian government will not set a ceiling price for the commodity, said Deputy Minister of Plantation Industries and Commodities A. Kohilan Pillay recently.
However, immediate measures will be taken to ensure that the price of the commodity remained at a profitable level for smallholders and rubber products producers. These include expediting replanting of old, unproductive and uneconomic rubber trees to slow down NR production. This year alone, the government aims to replant 32,000 ha of unproductive rubber trees. Under this approach, an estimated 32,000 to 38,000 tonnes of NR output could be reduced. It is expected that Thailand and Indonesia, two leading producers of NR, will also take a similar stand.

Tyrexpo Asia sells out in Singapore
Despite the economic turbulence in global markets, Tyrexpo, to be held from 24-26 March in Singapore, has surpassed expectations, says the organiser ECI International.
For the first time, the expo has attracted the interest of commodities specialists including the Singapore-based Phillips Futures and the Singapore Commodity Exchange.
Other recently confirmed exhibitors include Chinese companies Aeolus, Allen Iron, Lap Laser Application, Roadmax, Qingdao Qizhou, Dongying Zhengyu Wheel Company and the Iron Steel Company. DM Marketing, Intercontinental Marketing Corp and Tire Curing Bladders are US companies new to the show. Export-hungry Chinese suppliers make up the largest contingent from a single country.
The Singapore-based International Rubber Study Group is also staging its World Rubber Summit from 23-24 March. Keynote speakers include Dr RP Singhania, CEO, JK Tyres, India; Adam Jones from Goodyear Singapore; Fan Rende, President of the China Rubber Industry Association; Jeffrey Currie, Managing Director, Goldman Sachs, UK.
For more information, visit: www.eci-international.com

 

 

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