Of related interest:
Update 14 July 1997
The following report is adapted from the April/May edition of Urethanes Technology.
Asia-Pacific polyurethane processors hear of the latest developments
By David Reed, UT Editor
Singapore - With growth rates still over 8 percent, the polyurethanes business in Asia-Pacific is set to top 2 million tonnes a year by the turn of the century and is likely to match that of the USA and Europe, according to several speakers at the recent UTECH Asia '97 conference. In addition to the massive scope for continued growth in the region as a whole, demand growth in the People's Republic of China is now taking the lead from Japan, the traditionally dominant Asian market.One key factor will be the development of raw material capacities in the region and the UTECH Asia meeting - the third major conference and exhibition for the polyurethanes business in Asia-Pacific - coincided with the first step in one of these major investments: Shell Chemicals opened its urethanes laboratory on Pulau Seraya, where the firm's major plants for making propylene oxide and polyether polyols are in the final stages of construction. There was also a change in location of one of the other major investments, BASF AG's plant in China and, in a more recent announcement, Dow has licensed its MDI distillation technology to Dahin Co. Ltd, allowing the Taiwanese firm to build a plant capable of processing up to 30 000 tonnes a year of the key material for its thermoplastic PU and footwear systems business.
The UTECH Asia '97 event attracted over 2500 attendees, all keen to hear about the latest developments in what is still the world's fastest growing polyurethanes business. The major technical conference gave 276 delegates a chance to catch up with some of the latest advances in polyurethane raw materials and processing technologies, as detailed in the more than 60 presentations made at the conference by representatives of some of the world's leading companies.
The exhibition running in parallel saw nearly 2300 individual visitors attend to see the latest offerings from more than 65 firms exhibiting over the three days of the meeting, February 18-20.
But, while opening on an upbeat note with a presentation titled 'Explosive growth - without growing pains,' Graham Ferris, director for petrochemicals outside Europe for Shell International Chemicals Ltd, cautioned that there are issues which must be faced if this no-pain growth was to be achieved. These issues include expanding the region's technological base, sustaining the quality image of polyurethane products, and active product stewardship, he said.
Ferris cited the new Shell laboratory in Singapore as one aspect of his company's commitment to the first of these issues, saying that "this facilitates the two-way flow of ideas and 'know-how' between our research facilities and our customers."
Shell's market research in Asia-Pacific has highlighted concerns among processors in the region about the quality of their raw materials, Ferris continued, but "we believe that these concerns of customers are principally about the ability to control the manufacturing process, and we consider that there is a need to increase direct investment in polyurethane technology development in the region."
Investment in world-scale raw material plants is needed, he said, pointing out that capacities in the region are generally behind demand and that "relatively few plants are of world class."
And 'world class' now means 100 000-120 000 tonnes a year for isocyanates and 200 000 to 250 000 tonnes a year for propylene oxide, Ferris pointed out.
Finally, on product stewardship, the Shell director emphasised that this had an "added dimension" in the Asia-Pacific region as it is in a period of major growth. "New companies are springing up, companies are expanding rapidly and new people are coming into the industry. These people are from a wide range of social, educational and linguistic backgrounds and need education and training," he said.
"For the workforce, the essential information will be concerned with basic product safety - product handling advice, personal protective equipment, exposure at the workplace and dealing with emergencies such as spillages," Ferris continued. "Commitment to product stewardship can bring gains in operational efficiency alongside risk management," he emphasised, pointing out that "meeting these needs is a priority task for the polyurethane industry as a whole - raw material suppliers in partnership with polyurethane processors."
In 1996 the International Isocyanates Institute, Inc. created an Asia-Pacific Diisocyanate product stewardship committee to coordinate efforts and this will help "through the delivery of a shared and consistent message," but it is "not a substitute for direct action by individual raw material suppliers," Ferris concluded.
The environmental message was further highlighted in the second presentation at the UTECH Asia conference, delivered by Chew Eng Soo, regional director Asia-Pacific for ICI Polyurethanes. He emphasised that "concern about the environment ... must not be separate from or merely an add on to the business strategy."
ICI Polyurethanes has published its Environmental Strategic Direction, listing its key actions and intents, "this is intertwined with its business strategy and is as applicable in Asia-Pacific as it is in the rest of the world," Chew emphasised.
Its key elements include:
In addition, "joint action with other members of the polyurethane industry to obtain a common framework to address issues," was an important element for the future, said Chew. Design of products with minimised environmental impact through their life cycle; Production of products with minimised emissions, energy consumption and waste; The selection of suppliers to include environmental criteria; and All employees to be given training in environmental issues. "One of the particular challenges in the region is the phase-out of the use of CFCs (chlorofluorocarbons) in polyurethane foams," he continued. All countries in the region are signatories to the Montreal Protocol, which requires them to reduce CFC use from mid-1999 to complete phase-out by 2010, but many countries are more progressive, Chew said, citing Thailand and Indonesia which plan to phase out CFCs by the beginning and end of 1997, respectively.
ICI offers technologies to support the CFC elimination process, Chew emphasised. Looking to the future, with the planned major expansions of raw material capacity across the region, Chew cautioned that high standards must be applied to these units. ICI has its own 'Challenge 2000' programme, seeking to halve the environmental burden of its operations by 2000, compared to a 1995 baseline, he said.
Finally, Chew highlighted the need to encourage 'Responsible care' across the region, pointing out that it is often difficult in Asia-Pacific with "inordinate amounts of drums rather than bulk delivery." This necessitates the establishment of "an effective emergency response network," he said firmly.
In addition, although safe working practices with isocyanates "have been well established ... the specific challenge is to teach all workers in all factories through the region to handle the chemicals." Chew concluded.
"The rapid growth of the economies in Asia during the last decades is one of the economic miracles of the century," suggested Dr Friedrich Vogel, vice president of BASF AG's polyurethane business unit basic products, the third speaker in the plenary session of the UTECH Asia '97 conference.
In polyurethanes, Japan has been the leader for many years but "things are about to change," he said firmly, citing the rapid growth and massive potential of the People's Republic of China. By 2005, Vogel suggests, China will account for over a third of the PU market in Asia-Pacific - and the Asia-Pacific market will, by then, amount to more than 3.4 million tonnes.
Not surprisingly, this has led to the announcement of raw material investments in the region - and in China specifically - but Vogel cautioned that the total amount of isocyanate investments announced for the next few years exceeds 500 000 tonnes, "which might cause some players to defer their decisions," he said.
Although there are risks in investing in China, the same is true in other parts of South East Asia, the BASF chief continued but, "taking all these negatives into consideration we nevertheless believe that ... China will experience an enormous growth during the coming years, bringing more prosperity and quality of life to its citizens and a plethora of opportunities to all of us in the polyurethane industry."
These plenary presentations were followed by a series of technical papers in eight separate sessions, each of which opened with a Keynote presentation putting the subject area into a solid commercial setting by reviewing the current market situations in the various business areas.
The sessions were:
Automotive (12 papers)
Keynote: The battleground moves East, by Mike Dunn of Automotive Resources Asia Ltd, Thailand, detailing the massive growth expected of the automotive sector in Asia-Pacific in the coming years.Innovations and new developments (six papers) Rigid foams (7 papers)
Keynote: Technical trends in rigid polyurethane foam manufacture, by Toshikazu Kaneda, Mitsui Toatsu Chemical Co. Ltd, discussing the current and projected usage of alternative blowing agents to CFCs (chlorofluorocarbons).Appliance (six papers)
Keynote: David Sparrow, ICI Polyurethanes Asia-Pacific, detailing trends in the sector, with special reference to the situation in Asia-Pacific in general and China in particular.Building & construction (six papers)
Keynote: Reinhold Lang, Bayer AG, highlighting the massive scope for expansion of these application sectors in the Asia-Pacific region, as the markets become more sophisticated.CASE - Coatings, adhesives, sealants and elastomers (five papers) Furniture & bedding (10 papers)
Keynote: Richard Sandham, Shell Chemicals, providing a comprehensive review of the status of all the key markets in Asia-Pacific and analysing the economic, political and technical factors affecting their growth prospects. A further paper reviewed the status of and prospects for the flexible foams business in India.Footwear (seven papers)
Keynote: Steve Lee, consultant, detailing the situation of the footwear sector in Asia-Pacific which already accounts for over 60 percent of the world's footwear business. Despite the dominant role of the region's footwear business, polyurethane usage is lower than the global average, suggesting good scope for the future.The Book of Papers presented at the UTECH Asia '97 conference is available, price £80 in the UK, £85 elsewhere, including postage, from Rapra Technology Ltd, Shawbury, Shrewsbury, Shropshire SY4 4NR, UK. Tel: +44 (0)1939 250 383; Fax: +44 (0)1939 251 118.
The next UTECH meetings will be UTECH Asia in Singapore, March 16-18, 1999; and UTECH in The Hague, March 28-30, 2000. If you wish to be kept informed as the programmes for these events develop, use the links below to contact our conference department.
The next UTECH conference will be UTECH Asia '99 in 1999. However, before that Crain will be organising a number of other useful conferences. Of particular relevance to UTECH Asia attendees will be , to be held in Shanghai next April.
Contact our conference department by email or phone, fax or letter.
Chinese and Asian readers may also be interested in details of our Chinese language edition of Urethanes Technology, to be published twice a year in May and October.
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