K 2007 Trade Press Conference
July 3 and 4 in Frankenthal, Germany
BASF Polyurethanes
Versatile, innovative, global
Presentation by Jacques Delmoitiez,
President of the Operating Division Polyurethanes, BASFAktiengesellschaft, Brussels, Belgium
Polyurethane (PU), the "conjurer" among plastics, can be found wherever damping, insulation and innovation are concerned. Damping here means convenience when lying, sitting, running or driving. Insulation is highly relevant for our environment. With polyurethane-insulated houses one can save the energy necessary to produce the PU insulating elements already after 1 to 5 heating periods. Moreover, polyurethane means innovation, for example for safety issues. There is one example you know already – ship and bridge building with the SPS system (steel polyurethane sandwich elements). Another example from the maritime sector will be presented to you tomorrow.
The PU market
The market for PU has grown continuously in recent years. In the next 10 years, as well, we expect growth of a good 5% per year, with nearly 4% in the Americas, 4,5% in Europe and 6-7% in Asia. As the graphic shows you, Asia is on the cusp of becoming the largest regional PU market. Another interesting fact that the graphic shows: The worldwide PU market has grown in volume every year except for 2005, when the market slightly contracted in volume, due to very heavily increasing raw materials costs, but continued to grow in value. Influences such as the Asian crisis and 9/11, however, created downturns in one region, which were more than compensated for by growth in the other regions. An advantage of our global placement is clearly demonstrated through this fact. This global positioning significantly contributes to growth opportunities and the robustness of our business.
Fourfold PU from BASF
BASF brings its PU components to market in four different ways. First of all, as a base product such as MDI, TDI and the polyols; secondly as PU systems and customer-specific solutions, through a network of more than 30 system houses. Thirdly, the Division sells PU special elastomers in the form of thermo-plastic polyurethane (TPU) granulate and, fourthly, PU finished components go to market under the brand name Cellasto®. Cellasto are PU components that are used in particular as damping elements in chassis springs. In 2006, we were the worldwide market leader with PU systems, TPU and Cellasto.
We manufacture PU base products with our production plants in Europe and the Americas; in Korea, since the early 1990's and also in Caojing, China, since last year, where we have commissioned an integrated isocyanate location together with partners. In addition to this is our network of more than 30 system houses, our customer-oriented service centers for development, technical service and system production.
We encounter PU in many areas of our daily life. The largest applications are furniture cushioning, mattresses, as well as insulating and design elements in construction, automobiles, shoe soles and sporting equipment. Innovations with PU are correspondingly varied. Many are created in close collaboration with our customers.
PU for sports shoes
The collaboration of our subsidiary Elastogran with Adidas demonstrates, for example, how the BASF credo of "We help our customers to become more successful" is actually implemented in fact. Our material experts work in close solidarity with the shoe pros of Adidas. Whether in cold chamber tests or long-term use trials, our employees assimilate the needs and desires of the customer and work them into concrete product improvements and advanced developments. One result is the so-called a3 structure.
PU for insulation in buildings and refrigerators
Another example is our hard foam system, Elastopor®.
Insulation and energy efficiency are, of course, major topics in today's world. The application possibilities for Elastopor are as multi-faceted as the construction industry itself. Whether as a sandwich element, spray-in foam or insulation plate; whether in walls, ceilings or floors – thanks to the special insulating properties of this polyurethane application, significant quantities of energy can be saved and resources protected in private, commercial and communal buildings. Elastopor has an exceptional thermal conductivity measurement value of 0.019 W/mK; furthermore, the energy applied and the costs for manufacturing the insulation are amortized in the shortest possible time through heating cost savings. The small wall thickness of Elastopor in comparison to other materials leads to gained space and, last but not least: Elastopor H binds static and heat insulating functions in the sandwich element.
Insulation and energy efficiency are also in the foreground when it comes to Elastocool®, our strongly growing system for refrigerators. The system is also a platform for further developments: Elastocool Plus applies the fifth element, vacuum, together with new refrigeration concepts for insulation and increases energy efficiency through the so-called VIP elements (Vacuum Insulation Panels ), which can effect an energy savings of up to 30%.
PU for coastal protection
The application of PU as an elastic composite with gravel is completely new. Elastocoast® is a new concept for securing coastlines and riverbanks with better characteristics than conventional revetments made of concrete and asphalt. The elasticity of Elastocoast protects the revetment from the impact of bodies of water, as the hollow spaces between the stones, which are connected with one another, absorb the energy of the wave impact. Elastocoast is enormously tough, heat and frost resistant, more efficient than other protection measures, easy to process and environmentally friendly. A separate presentation during this press conference will deal specifically with this topic and will explain to you the advantages and areas of application of Elastocoast in detail.
Special PU: TPU and Cellasto
But even among the established PU products, there are astounding materials that have achieved their unique market positions through continuous further development, often together with customers: In the thermo-plastic PU elastomer (TPU) Elastollan®, we have a multi-talented material with great potential for innovation. Elastollan can be purposefully processed with various procedures and is characterized by an extraordinary combination of elasticity and durability properties, which is ensured across a wide range of temperatures. It is abrasion-resistant, impact-resistant, restore-capable, tear and kink-proof as well as oil and grease resistant. Depending on the application, Elastollan can be specifically modified, such as by reinforcing with glass fibers.
Components made from cellular PU elastomers are developed, produced and sold under the brand name Cellasto®. Nine out of ten automobile manufacturers use Cellasto damping systems in the chassis of their automobiles. As auxiliary springs, compression buffers and damper bearings or as complete systems, Cellasto swallows vibrations, prevents noise and increases driving safety and comfort as a result. Cellasto is a master example of innovative PU know-how: mastery of PU chemistry as well as mixing and dosing technology are combined here with the highest processing precision. The systems are developed with modern CAD and FEM technology, based on detailed component databases, and designed precisely according to customer specifications.
Central research, regional development and system houses
You see that innovation is an important topic when it comes to polyurethane, and BASF is very well positioned for it. While global system research is concentrated in Lemförde, in northern Germany, the specific regional requirements of our customers are custom tailored on the systems in our Regional Development Centers. We have such centers in Lemförde, for Europe, in Wyandotte, Michigan for America and also in Shanghai as of this year. Just four weeks ago, we inaugurated a polyurethane specialty location in Shanghai, with a system house, TPU production and the Regional Development Center for Asia. Here, we can provide the resources that enable us to meet the growing demands of our Asian customers. Our customers will profit from closer development partnerships and shorter development and delivery times. The concentration of system house, development, production, sales and technical service in one location enables an optimal exchange of know-how and cooperation. The development of shoe systems is taking place directly in the most important markets, in Italy and Guangzhou (China). The same applies for spray foam systems, with centers of competency in Spain and Texas. The research and development of new chemical processes takes place in Ludwigshafen.
The system house is the home of innovations on the market. Innovations are worked out and implemented at these system houses, together with our customers, because our customers are very innovative. Our creativity and that of our customers come together here. We are ideally positioned for this with our network of more than 30 systems houses. In the past two years, system houses in South Africa, the Netherlands, India, Thailand and a second one in China have been added.
Three-pillar strategy: Innovations – site concept – globalisation
We have now seen several examples of innovative PU products and applications and demonstrated how BASF has been positioned to implement these innovations. But there are innovations in marketing concepts, as well. In order to clearly differentiate our service package and optimally meet the relevant customer demands, we define and implement clearly structured business models BASF-wide. In connection with this, BASF Polyurethanes acts primarily as a so-called "lean and reliable basics supplier" in its base product business, as a “customized solution provider” in the specialty business and as a “product and process innovator”. You have just heard what these business models are about from Mr. Feldmann.
As an example of our technological leadership in chemical processes, I would like to name the innovative HPPO process, which we are implementing right now in Antwerp, together with DOW – our 300 kt PO plant will begin operation in early 2008. At the end of 2008, our restructured and expanded polyol production in Geismar, Louisiana will be commissioned. In mid-June we signed an agreement with the local authorities in Chongqing (western China), in which we are evaluating this location for a world-scale MDI plant for operating in the fast-growing Chinese market. A feasibility study for a collaborative TDI plant in Europe is currently underway with DOW Chemical. We thus continue to build on our location concept with few, integrated world-scale production locations for PU feedstock and base products, as well as an expanded and dense network of system houses.
Our third strategic pillar is our global positioning. Already today, we are the most globalized PU player. We will continue to expand this position in order to have approximately the same market position in all regions in several years.
Photo: BASF, 2007
Jacques Delmoitiez, President of the Operating Division Polyurethanes, BASFAG
Jacques Delmoitiez started his career in Belgium in the chemical and the coating industries.
1984 Joined BASF in Belgium, Wintershall Motoroils
1986 Several positions in BASF's car refinish paint business in Belgium and Germany
1991 Brand Management R-M, one of BASF's refinish paint trademarks, in France
1998 Global marketing BASF Pigments, in Ludwigshafen
2001 Group Vice President, Global Business Unit Performance Chemicals for Paint, Plastics and Specialties in Ludwigshafen
2002 Group Vice President, Refinish and Commercial Transport Coatings, President BASF Coatings France
2004 Group Vice President, Senior Project Management "Help our customers to be more successful"
2006 President of BASF Group's Polyurethanes division headquartered in Brussels, Belgium