Plastics, synthetic fibers output increases - C&EN Global Enterprise

Overall U.S. production of commercial polymers in 1992, including plastics and ... much improved over 1991 when polymer production increased less than...
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1992, with output up almost 7% com­ pared with a 11% rise in 1991. Produc­ tion of low-density polyethylene rose almost 4% in 1992, compared with a similar increase in 1991. Meanwhile, polystyrene production increased a modest 2%, and polypropylene in­ creased a mere 1% in 1992, compared with a decline of 1% and a marginal in­ crease, respectively, in 1991. In the thermosetting resins category, melamine showed a spectacular pro­ duction recovery, up over 18% in 1992 following a 3% decline in 1991. Phenol and other tar acid resins recovered in 1992, with production rising 10%, fol­ lowing a nearly 10% decline in the pre­ vious year. Even unsaturated polyes­ ters participated in the robust produc­ tion turnaround, climbing over 9% in 1992 after a 12% drop-off in 1991. Urea resins recorded a more modest but still respectable production rise of almost 5% in 1992, following a nearly 1% de­ cline in 1991. Only production of un­ Overall U.S. production of commercial bers production similarly grew about 4% modified epoxies declined in 1992, fall­ ing 8% after a less than 1% drop in polymers in 1992, including plastics to a little more than 9 billion lb. Production of thermoplastic resins 1991. and synthetic fibers, increased nearly Synthetic fiber output lengthened its 5% from 1991, reaching a new high of also increased 5% in 1992 to a little almost 61 billion lb. With the U.S. econ­ more than 45 billion lb, following marginal 1% recovery in 1991 to grow omy on the road to recovery, 1992 pro­ growth of only 3% in 1991. Thermoset­ about 4% in 1992 to more than 9 billion duction growth was much improved ting resins production, however, recov­ lb. Production actually declined 4.5% in over 1991 when polymer production ered in 1992, growing more than 7% to 1990 as the economy slowed. increased less than 2% over the previ­ just over 6 billion lb, following a 7% Cellulosic fibers turned around in ous year, and totaled just about 58 bil­ decline in 1991. 1992 with a production increase of lion lb. Among the thermoplastics, polyvinyl nearly 2% following a nearly 4% drop Plastics production, which accounts chloride and copolymers production for the group in 1991. Production of for more than three quarters of the poly­ rose 9% in 1992, following less than a 1% noncellulosic fibers increased almost mer category's production total, grew rise in 1991. High-density polyethylene 4% in 1992 after a modest 1% rise in 5% to almost 52 billion lb. Synthetic fi­ turned in the next best performance in 1991. 13.2 billion lb. Data on this chemical il­ lustrate the pitfalls of arriving at an ac­ curate listing of the Top 50 chemicals, and point to the reason large revisions may be necessary from time to time in the Top 50 list. A computer entry error in the U.S. International Trade Com­ mission's 1991 synthetic organic chem­ icals annual compilation published in February resulted in publication of a number that was 25% above the more accurate 11.7 billion lb that a trade commission statistician identified as correct. For inorganic chemicals, 15 of the 21 on the Top 50 list posted production increases, led by the plastic and paint additive titanium dioxide, with a 15% growth to 2.5 billion lb. Its position on the Top 50 moved up, as a result, to 41

from 44 in 1991. Carbon black also had a good year because of a surge in U.S. tire production. Production of the tire additive jumped nearly 11% to 3 billion lb, placing it 37th among the Top 50, up from 38th in 1991. Oxygen produc­ tion rose 8.5% in 1992 to 42.4 billion lb, shifting it into the number three spot from number four in 1991. Calcium chloride production rose to about 1.4 billion lb in 1992, a nearly 8% increase following a 6.7% decline in 1991. Harsh weather conditions con­ tributed to higher demand for the road salt used to melt icy accumulations during the early onset of winter in fall 1992. Calcium chloride moved to the 47th spot in 1992 from 49th in 1991 as a result of the production increase last year. Π

Plastics, synthetic fibers output increases

Output of both plastics and synthetic fibers grew about 5% last year Billions of lb

% annual change • Total Π Synthetic fibers H Plastics

Synthetic fibers

60 Ι Total

50 I 4 40 30 2

20 I 10

ol

982

0I 83

84

85

86

87

88

8!

90

91

92

1991-92

1990-91

1987-92

1982-92

APRIL 12,1993 C&EN 13

©1992 Amoco Chemical Company

ithitsability to transmit vast amountsof information, fiber optic cable has fast become the mainstay of the information age. Today telephone, video, audio and computer data are all transmitted over fiber optic cable. A n d quite soon, all information may be transmitted this way. Unfortunately, just a little bit of moisture can bring it all to a dramatic halt. Moisture is one of fiber optic cable's biggest enemies; it can seep into an open cable during installation or repair, migrate along the shaft and eventually cause cable failure. But now a material made with poly butène from Amoco Chemical Company is halting the progress of moisture. This "cable-flooding" compound fills the interstitial spaces and irregularities between the cable core and layers of corrugated steel armor and jacketing, effectively sealing the cable off from damaging moisture.

THANKS 7Ό AMOCO, THERE'S LIGHT AT THE END OF THE BUNDLE.

Every year, A m o c o Chemical produces more than $4 billion of quality petrochemical-based products like this for customers in such varied fields as recreation, medicine, construction, fashion design and the environment. A n d our goal is always the same: customer satisfaction. For more information on how we've helped companies produce a flood of successful products, write Amoco Chemical Company, MC4106, Dept. M510,200 East Randolph Dr., Chicago, Illinois 60601-7125. Or call 1-800-621-0626, extension 510.

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Total polymer production was about 60 billion lb in1992 Common units (millions of lb)

Billions of lb

PLASTICS Thermosetting resins8 Phenol and other tar acid resins Urea resins Polyesters (unsaturated) Epoxies (unmodified) Melamine resins Thermoplastic resins8 Low-density polyethylene PVC and copolymers High-density polyethylene Polystyrene6 Polypropylene TOTAL8 SYNTHETIC FIBERS Cellulosics8 Rayonc Acetated Noncellulosics8 Polyester Nylon® Olefinf Acrylic9 TOTAL8 GRAND TOTAL

Average annual growth

1992

1991

1992

1991

1987

1982

6.34 2.92 1.55 1.18 0.46 0.23 45.27 12.00 9.99 9.81 5.05 8.42 51.61

5.91 2.66 1.48 1.08 0.50 0.20 43.24 11.58 9.16 9.21 4.95 8.33 49.15

6,340 2,924 1,552 1,175 457 232 45,266 11,996 9,989 9,812 5,049 8,420 51,606

5,909 2,658 1,483 1,075 497 196 43,244 11,582 9,164 9,214 4,954 8,330 49,153

6,265 2,870 1,382 1,368 433 212 36,992 9,599 7,971 7,995 4,780 6,647 43,257

4,367 2,060 998 865 286 158 24,425 7,503 5,326 4,928 3,191 3,477 28,792

0.50 0.28 0.22 8.56 3.58 2.55 1.99 0.44 9.06

0.49 0.27 0.21 8.27 3.41 2.54 1.87 0.45 8.75

495 275 220 8,563 3,577 2,554 1,993 439 9,058

486 273 213 8,266 3,411 2,535 1,866 454 8,752

605 414 191 8,316 3,541 2,689 1,494 592 8,921

584 388 196 6,442 3,168 1,927 723 624 7,026

60.66

57.91

1991-92

1990-91

1987-92

0.2% 7.3% - 7 . 1 % 0.4 -9.8 10.0 4.7 -0.9 2.3 -12.0 9.3 -3.0 -0.4 -8.0 1.1 18.4 -3.0 1.8 4.7% 3.2% 4.1% 3.6 3.9 4.6 0.7 9.0 4.6 4.2 10.5 6.5 -1.3 1.1 1.9 0.2 4.8 1.1 1.8% 5.0% 3.6%

1982-92

3.8% 3.6 4.5 3.1 4.8 3.9 6.4% 4.8 6.5 7.1 4.7 9.2 6.0%

-3.8% 1.9% -8.7 0.7 3.4 3.3 1.0% 3.6% 6.8 4.9 0.7 -4.8 2.4 6.8 -10.3 -3.3 0.7% 3.5%

-3.9% -7.9 2.9 0.6% 0.2 -1.0 5.9 -5.8 0.3%

-1.6% -3.4 1.2 2.9% 1.2 2.9 10.7 -3.5 2.6%

1.6%

3.1%

5.4%

4.8%

a Totals are for those products listed and may not add because of rounding, b No longer includes acrylonitrile-butadiene-styrene, or styrene acrylonitrile resins; historical data are restated, c Includes acetate tow beginning with 1985. d Includes diacetate and triacetate yarn, but does not include cigarette tow. Beginning with 1985, includes rayon yarn, e Excludes aramid after 1982. f Includes olefin film, olefin fiber, spun-bonded polypropylene, and vinyon. g Includes modacrylic. Sources: Society of the Plastics Industry, Fiber Economics Bureau

Synthetic rubber excludedfromthis year's polymer table Unlike previous years, this year's tion data for C&EN would reveal ranking of polymer production does specific information about Canadian not include data for synthetic rubber. production should a reader compare Until 1989, the Rubber Manufacturers the C&EN data with the IISRP's pubAssociation (RMA) in Washington, lished data. Only three producers opD.G, supplied annual U.S. rubber pro- erate in Canada, one of which, duction data, but discontinued the Polysar, is the overwhelming domipractice in 1990. At the time, an RMA nant producer. spokesman told C&EN that since the Although IISRP will publish 1992 government discontinued its report of North American production data latsynthetic rubber production, RMA er in the year in its Worldwide Rubhad no reliable source against which ber Statistics publication, it has pubto check its own data. lished an early forecast of rubber Last year, the International Insti- consumption. Even though consumptute of Synthetic Rubber Producers tion is a measure of customer use, (IISRP) in Houston supplied U.S. and production is a measure of actuproduction data gleaned from its al producer output, a look at IISRP's membership survey. However, this consumption data gives some insight year the group was unable to supply into the synthetic rubber market for the production data because it might 1992. IISRP puts 1992 North Amerireveal proprietary information. IISRP can synthetic rubber consumption at generally publishes North American just under 2.7 million metric tons, up production data, and a spokesman nearly 10% from 1991. Polybutadiene says that breaking out U.S. produc- consumption was up the most—15%. 16

APRIL 12,1993 C&EN

Among the cellulosic fibers, rayon production increased less than 1% in 1992 following a sharp 9% drop in production the year before. Production of acetate fibers also moved up, rising slightly more than 3% in 1992, about the same as in 1991. Olefin fibers led production of noncellulosics in 1992, with output up nearly 7% compared with an increase of more than 2% in 1991. Polyester registered the next largest growth, with production of these fibers up about 5% following a nearly 7% increase in 1991. Production of nylon fibers increased less than 1% in 1992—in contrast to a nearly 5% decline in 1991. The only noncellulosic fiber to show a production decline in 1992 was acrylic, off some 3%, following a more than 10% drop in 1991. Olefin and cotton have replaced acrylic in many apparel uses. Acrylic fibers lost the broadloom market a number of years ago, principally to nylon fibers. Marc Reisch

Fullerene licensing strategy outlined >

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Ο FDA I N S P E C T E D F A C I L I T I E S FOR: Fullerenes, molecular forms of carbon such as Qo and C70/ have been one of the hottest areas of research for the past few years. Although these unique mate­ rials have garnered a great deal of scien­ tific interest, their commercial utility has yet to be proved. This situation, not to mention that intellectual property rights have not yet been determined, has not prevented Research Corporation Tech­ nologies (RCT) of Tucson, Ariz., from formulating a licensing plan. RCT's plan was outlined in a session on licensing technology, sponsored by the Division of Chemistry & the Law, at the ACS meeting in Denver. "Com­ mercializing C^: Making the Market and Hedging Your Bets" was coauthored by Timothy J. Reckart, general counsel, and Jeffrey E. Jacob, director of venture development, both of RCT. RCT is a technology transfer company that works with universities and inven­ tors to move technologies to the mar­ ketplace through patenting, licensing, and commercialization. Fullerenes were first discovered by Harry F. Kroto of the University of Sus­ sex, Brighton, U.K., and Richard E. Smalley and coworkers at Rice Universi­ ty, Houston, in 1985. Not until 1990, in a collaboration between the research groups of Donald R. Huffman, professor of physics at the University of Arizona, Tucson, and Wolfgang Kràtschmer at Max Planck Institute for Nuclear Physics in Heidelberg, Germany, were recoverable quantities of solid material produced. It is Huffman and Kratschmer's method for producing and recovering fullerenes for which RCT has filed patent applications in the U.S. and overseas. The awarding of a U.S. patent to RCT is not a "given," says Reckart, but a "good assumption," based on the course the company's patent prosecution has taken. Ί would guess before the end of the year RCT ought to have a good indication ... [of] whether ifll be awarded a patent." Reckart adds that he is not aware of any

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conflicting patent applications or interfer­ ing claims. Patent protection certainly will be a key aspect to any company's licens­ ing and marketing strategy. Huffman and Kratschmer's method for producing fullerenes involves the evaporation of graphite electrodes in an inert atmosphere and extraction of QQ and C70 in nonpolar organic solvents. Others have produced fullerenes using laser vaporization, electric arcs, or flame synthesis. Claims in RCT's U.S. patent application are broad enough to cover the material, its separation and purifica­ tion, and, Reckart says, very likely other methods of production. However, ob­ servers in the fullerene area suggest that there are no guarantees that such broad claims actually will be granted. "From a technological point of view, if large-scale production were to become of interest," says Jack B. Howard, profes­ sor of chemical engineering at Massa­ chusetts Institute of Technology, "flame synthesis of fullerenes would be a com­ petitive way to make them." In 1991, Howard and collaborators produced bulk fullerenes by burning hydrocarbons in a flame. Theflameis aflowreactor that can be operated continuously, he explains, and is something with which engineers are already familiar with scaling up. Others institutions, such as Rice Uni­ versity and possibly ΜΓΓ, have patent applications filed on fullerene produc­ tion methods. The fullerene patent situa­ tion has many complicated issues that have yet to be resolved, says Lila Ander­ son, founder of Texas Fullerenes, Hous­ ton. Patent applications relating to ful­ lerenes and their derivatives have be­ come a leading area offilingsat the U.S. Patent & Trademark Office. This activity, on top of overwhelming research activi­ ty, has required little, if any, effort by RCT to promote fullerenes and their market development. Although a market for large-scale quantities of fullerenes has not yet de­ veloped, says Howard, there is a grow­ ing market for research amounts of fullerenes. Several small companies have begun producing and selling the materi­ al. RCT has licensed the technology to MER of Tucson. One of RCT's goals is to make fullerenes widely available so that re­ searchers can work on developing val­ ue-added uses for the materials, explains Reckart. In allowing access to the mate rials by researchers, new developments effectively will help to "make the mar­

ket" for fullerenes and their derivatives. At the same time, it is desirable to main­ tain control, he says. RCT tries to accom­ plish both goals—access and control— through allowing MER to sell researchscale quantities only. "Originally, RCT hoped to obtain a dominant, preemptive position on highvalue uses of fullerenes," says Reckart. However, the company has taken a more "realistic" view in light of the tre­ mendous amount of activity in the field. "But thaf s not to say RCT can't still look at patents on high-value uses," he says. "If s just the preemptive, dominant posi­ tion is no longer available to RCT." Even if a patent based on Huffman and Kratschmer's work was awarded to­ day, says Reckart, market maturity most likely would not come until after the patent had expired and thus make it of little value. Because it is the high-value uses of fullerenes—as proposed in areas such as coatings, lubricants, electronics, and even pharmaceuticals—that will drive the market, RCT is "hedging its bets" by making limited amounts of ma­ terial available now, hoping to expand through licenses for commercial-scale production, and eventually to obtain patent positions on a selected range of high-value applications. RCT is addressing access torightsfor these selected applications through its connection with the Arizona Fullerene Consortium, associated with the Univer­ sity of Arizona, Tucson. RCT offers pre­ ferred licensing positions to consortium members. Another means by which it will pursuerightsto high-value applica­ tions is through joint ventures with in­ dustrial partners. It still is much too early to see any re­ sults from RCT's evolving and, because major patents have not yet issued, large­ ly hypothetical licensing plan. Reckart does see the potential for widespread in­ fringement and what could be a night­ marish legal situation. "There is a lot of industrial activity, and a lot of people advertising to make fullerenes and sell them, who, to RCT's knowledge, don't have any license with RCT or any ar­ rangement with MER." Fundamentally, he explains, it will become an economic decision, on a case-by-case basis, as to whether it makes sense to try to stop in­ fringement. "[RCT doesn't] want people to acquire legalrightsby its inactivity," he says. "On the other hand, [the company] doesn't want to stifle development." Ann Thayer

Hoechst offers out of R+D:

U.K. capital spending still falling in 1993 The U.K. was one of the first countries in the European Community to go into recession, and it is also one of the first to have begun climbing out. But one indication that the recovery will be a slow and difficult process comes from the annual investment intentions survey just issued by the Chemical Industries Association (CIA). The survey predicts that capital spending by the U.K. chemical industry will be down roughly 10% in real terms from last year, which in turn was down nearly 11% from 1991. In 1992, total chemical industry capital spending in the U.K. was about $2.61 billion, when calculated in 1985 prices. Capital spending had been particularly high in 1991, when it hit $2.92 billion. The level is forecast to slip to $2.34 billion this year. And many companies, the survey indicates, have cut spending even more sharply. Capital spending won't pick up until next year, the survey says. In 1994, capital investment is projected torise16% in real terms, before declining again in 1995. According to the survey, just over a third—35%—of this year's investment program is for additions to capacity for existing and new products. Spending on R&D facilities will be kept level with last year's 24% share of total spending. However, spending on environmental protection will account for an increasing share of total spending. Of the companies surveyed and of those that responded to CIA's survey in 1992, 62% spent less in total than they

Pharmaceuticals dominate chemical capital spending % of total capital investment 1993-95a 1992

Pharmaceuticals Specialties Petrochemicals/ plastics Basic inorganics/ fertilizers Dyes/pigments TOTAL

36% 29 23

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APRIL 12,1993 C&EN 19

Alpha Olefins Answers

Dr. Roger Williamson

Q: Is it possible to copolymerize alpha olefins with vinylacetate or acrylates? A: We did quite a bit of research years ago in copolymerizing or terpolymerizing these monomers by emulsion polymerization tech­ niques. The alpha olefin content of the polymers varied from 5-8 weight percent. Most of the research was done using 1-octene or 1-tetradecene as the alpha olefin to give the following structure: CH 2 -CH

ο I c=o I

CH-CH

-CH 2 -CH-|-

I iCH 2 )5orll CH,

CH,

C=0

I ο I C7,9, or 13

The polymers gave films with much lower water absorbtivity than polyvinylacetate or vinylac­ etate acrylate copolymers. Details of the polymerization techniques and physical properties of the prod­ ucts may be obtained by request. If you have any questions about alpha olefins please contact Dr. Williamson through our Houston office.

BUSINESS

had predicted last year, while 24% actu­ ally spent more. Most of the under­ spending—73%—stemmed from post­ ponements and rephasing of projects, 13% from cancellations, and 14% from estimating errors. What companies are investing in is also changing. As CIA officials point out, two years ago petrochemicals and plastics dominated spending, account­ ing for nearly 40% of the total. "Since then, the situation has changed radical­ ly," the report notes. "World recession has added to the problems of European overcapacity, and spending on U.K. projects has fallen steeply." Currently, spending is focused on pharmaceuticals and specialties—spe­ cialized organics and inorganics for in­ dustrial, agricultural, home, and office uses, and soaps, detergents, and toilet­ ries—as the U.K. chemical industry

Olefins and Derivatives Division

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P.O. Box 3766 Houston, Texas 77253 TEL (713) 359-6500 FAX (713) 359-6515 0 1 9 9 3 Chevron Chemical Company

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Patricia layman

Heavy investment in Czechoslovakia last year Led by German investors, the major countries investing last year in Czecho­ slovakia—Germany, France, U.S., Swit­ zerland, Belgium, and Austria—put nearly $420 million into the chemical in­ dustry of the country, now split into the Czech and Slovak republics (C&EN, Jan. 4, page 9). Germany accounted for near­ ly half of the spending, with $202 million in direct foreign investment in the chem­ ical industry. According to the Czech Ministry of Industry & Trade, the chemical industry received the third largest share of direct foreign investment, after the categories of construction and building materials, $732 million, and general engineering,

Germany led spending in Czechoslovakia in 1992 Investments

t$ Chevron

shifts from a commodity chemical base to one based on higher value-added products. Of those categories, pharma­ ceuticals is the largest spending sector and this is expected to continue. Part of the reason for the continuing rise in environmental spending is tight­ ening U.K. pollution legislation. As a result, companies have not only been stepping up their spending, but also their assessment of how to cope with the legislation. One key problem is lack of clarity of procedures and standards. In addition, administrative delays and uncertainties have become a major bur­ den to the industry. The outlook? According to the sur­ vey, another very tough year is in the cards, with only a very slow recovery in U.K. chemicals output, linked to macroeconomic developments.

$ Millions

Selected industries*

Chemical industry

Germany France U.S. Switzerland Belgium Austria

$1420.0 331.0 212.0 205.0 182.0 139.0

$202.0 130.0 74.0 11.0 0.8



a Metallurgy, civil engineering, general engineering, electronics and electrical engineering, chemicals, light industry, wood processing, and construction and building materials. Source: Czech Ministry of Industry & Trade

$614 million. The total invested in eight of the major industrial sectors of the economy in 1992 was $2.49 billion, up dramatically from about $640 million in 1991. In that year, about 87% of the funds were invested in what is now the Czech Republic, rather than in the Slo­ vak Republic. Most of the funds were used for joint ventures. In 1991, the major investment was in transport vehicles. Most funds went into the venture worked out between Volks­ wagen and Czech automaker Skoda; it accounted for two thirds of the total. In­ vestments in the chemical industry were the second largest category. Again, weighted by the Volkswagen-Skoda deal, German capital accounted for 73% of invested funds, followed by U.S. cap­ ital at just under 10%. The Czech ministry predicts that both the Czech and Slovak republics will be­ gin to emerge from their economic slump either this year or next year at the latest. The gross national product (GNP) of the Czech Republic was down nearly 15% in 1991, and down 7% last year. This year, however, GNP is expected to grow 0.7 to 2%, and in 1994,2.2 to 4.4%. The Slovak Republic is forecast to show a decline of 2 to 3.5% in GNP this year, following drops of an estimated 8.3% in 1992 and 16% in 1991. Not until next year will GNP grow, ministry econo­ mists predict, and then 0.4 to 2.0%. Patricia Layman