Clariant a target for Solvay's cash?

After Solvay sold its drug unit, Abbott, on Monday for EUR4.5 billion, speculation has started as to what Solvay will spend the money on. In a Reuters article, it was pointed out that the ailing Clariant could be a target.

Clariant's share price rose by as much as 4% on the back of the speculation, but many analysts remain sceptical.

Can you trust market data?

It was interesting to read a recent advert for a study by Frost & Sullivan.  The title is, ' European Pulp & Paper Chemicals - is Consolidation the Response to a Mature Market?  What is striking is the market data shown for the European paper chemicals industry - there are only three significant players in a chart that is described as, '..... the market shares of the leading companies in the European pulp and paper manufacturing process chemicals market in 2008.

The segmentation of the pulp and paper chemicals market shows a complete lack of market knowledge and then to suggest that Kemira, Eka Chmeicals and Solvay have 85% of the process chemicals market is claptrap.  Further comments could be made on the report but it it not worth the effort.......... when the data are suspect, how can one trust the conclusions.  

Fluorochemicals used in paper and packaging - is the new C6 chemistry an advance on the problematic C8?

To the many of you who read the earlier blog on fluorochemicals and their use in paper, and any others with an interest in this topic, it may be worth reading the recent article by the Environmental Working Group (EWG).

EWG, 'Finds no evidence that the industry-touted replacement chemicals being rushed to market are safer -- and plenty of evidence that DuPont and other manufacturers are continuing a decades-long pattern of deception about the health risks of PFOA and related chemicals.'

EWG make the point that the move from C8 to C6 chemistry is,

'Greenwashing – claiming environmental benefits for a product that's little better than its replacement – at its worst. PFOA is so remarkably persistent in the environment and broadly toxic to living organisms that using it as a bar against which to judge "green chemistry" is like calling anything under 200 miles per hour a safe speed limit. For C6 replacements, the full extent of the public record on their safety consists of a PowerPoint presentation delivered by Asahi Glass Company to the Environmental Protection Agency. Public records show that DuPont, Asahi, and Clariant are all shifting from PFOA to C6 chemistries despite an absolute dearth of public safety data, and despite the fact that on 3 critical counts, C6 may be as great a concern as PFOA:

• C6, like all the other PFCs, is extraordinarily persistent in the environment (NAS 1972).
• C6 is potentially 3 to 5 times more toxic than C8 to aquatic organisms (Asahi 2006).
• C6 crosses the placenta to contaminate children before birth, according to an EWG study of umbilical cord blood from 10 newborn babies (EWG 2005). While many studies of thousands of people by CDC, industry, and academic university researchers show that PFOA contaminates nearly the entire U.S. population, industry has failed to publish even a single study of C6 in people. EWG's tests of cord blood show it to be potentially as great a concern as PFOA.

EWG certainly make some good points in amongst the sometimes emotive and hyperbolic writing. The fact remains, does it make sense to continue with fluorine chemistry? Surely this is an opportunity to develop and market fluorine-free alternatives.

The main companies involved in the manufacture and supply (directly or indirectly) of fluorine-based chemicals to the paper industry are: Arkema, Asahi, Ciba, Clariant, Daikin, DuPont, 3M/Dyneon and Solvay Solexis. There are others.

Fluorine-based chemicals are mainly used in paper and packaging to give grease-resistance (eg pizza boxes, burger wrap, butter wrap, soap wrap, pet-food bags). Alternative barriers are available for some of the current applications, but in some of the more demanding applications it has been difficult to find chemicals which perform as well as those containing fluorine with its unique physical properties. Finding fluorine-free alternatives is an opportunity.

Hydrogen peroxide market predicted to reach 4.3 million tonnes by 2012

A press release by RISI reports on a recent market review, "Hydrogen Peroxide: A Global Strategic Business Report" published by Global Industry Analysts, Inc.

The highlights are:

• Hydrogen peroxide (H2O2) demand is partly driven by elemental chlorine free (ECF) processes; the introduction of maximum achievable control technology (MACT) by the EPA in United States; and total chlorine free (TCF) processes mandate by the European Union [comment: there is still not much TCF pulp produced and some analysts do not see much future growth - at least in the next 10 years]
  
• The US hydrogen peroxide market in 2008 is estimated to be 705 thousand metric tons for 2008
• The Asia-Pacific is the fastest growing market, with a CAGR of 8% over the period 2001-2010.
  
• The pulp & paper industry is the largest market segment for hydrogen peroxide and this segment is expected to be around 2.11 million metric tons by 2010.
• European producers dominate the market in both Europe and North America.
  
• North American producers such as Dow Chemical and FMC also have a significant presence in the market.
  
• The market is fragmented in the Asia-Pacific region where there is a large number of small players.
• Players dominating the global hydrogen peroxide market include Arkema, BASF AG, Chang Chun Petrochemical Co, DC Chemicals, Dow Chemical, Eka Chemicals, Evonik Degussa, FMC Corporation, Guangdong Zhongcheng Chemicals, Hansol Chemicals, Kemira, Kingboard Chemical Holdings, Mitsubishi Gas Chemicals, Nippon Peroxide, PT Degussa Peroxide Indonesia and Solvay.

California first to introduce a bill to ban the introduction of PFCs into food packaging - Why are they alone?

At last there has been a move somewhere in the world to challenge the lengthy, voluntary withdrawal of the use of fluorochemicals containing PFCs from use in applications such as food packaging. This topic has been covered before in this weblog and the question asked as to why there should be a voluntary agreement with the EPA to withdraw these products when there is clear evidence that they are harmful.

See the weblog on the EPA announcement that the big manufacturers are on track, or that on the recent DuPont study to produce evidence as to the fate of fluorochemicals in the environment.

The question remains, why wait until 2015? In many papermaking applications there are alternatives, but if there are not, then increased pressure will generate innovation.

Enviroblog covers this topic well and highlights the recent bill filed by California State Senator Ellen M. Corbett which would make California the first state to ban some PFCs in food packaging. The bill, sponsored by EWG, would prohibit more than trace amounts of two PFCs called PFOS and PFOA in any material used to package food, beginning in 2010.

The big producers working with the EPA include Arkema, Asahi, Ciba, Clariant, Daikin, DuPont, 3M/Dyneon and Solvay Solexis.

EPA announces that big PFOA releasers are on track

The EPA has announced that eight major companies have reported significant drops in the release of PFOA (perfluorooctanoic acid) and related chemicals, putting industry on target to meet a 95 percent reduction goal in PFOA emissions and product content by 2010. Further reductions are anticipated by 2015.

The chemical companies include Arkema, Asahi, Ciba, Clariant, Daikin, DuPont, 3M/Dyneon and Solvay Solexis. In an earlier post the question was raised as to why it takes so long to stop selling products containing PFOA or PFOA precursors especially in paper and packaging where alternative, fluorine-free options are available.

More information on PFOA is at: epa.gov/opptintr/pfoa/index.htm

Company progress reports and EPA's summary tables are available at: epa.gov/oppt/pfoa/pubs/preports.htm

Solvay and Rahu Catalytics agree on co-operation

Belgian based Solvay SA, has agreed a long term technical collaboration with RahuCat in the development of activated oxidation and bleaching processes.

The deal provides a platform for using RahuCat's Dragon activators and catalysts to improve hydrogen peroxide performance. Development is aimed at, 'Peroxide market growth through improved operating economics, expansion into new applications and meeting future environmental regulation. The technical programme will use R&D facilities at both companies, initially based in Europe, but could expand into fast growing markets as application opportunities arise.'