For manufacturers of waxes, solvents and additives, 2008 was a mixed year. On the one hand, it was
“Lubrizol’s wax and additives lines have done well in 2008 and we expect another good year in 2009,” said Carol Durgan, regional marketing manager, graphic arts for Lubrizol Advanced Materials, Inc. “We are on track to reach our sales and volume goals.”
“Shamrock has been able to maintain its current market position despite the rapid changes in the raw material pricing and availability,” said Joon Choo, vice president of Shamrock Technologies.
Chris Halvorsen, global marketing manager – commercial for Hexion Specialty Chemicals, said that Hexion enjoyed continued success with its wax and additives business.
“We see more opportunity to combine our resins, varnishes and complete line of wax and additives to bring more value to our customers,” Mr. Halvorsen noted.
Solomon Lemma, marketing manager, coatings, inks and adhesives for Air Products & Chemicals, said that in general, the additives industry enjoyed volume growth during the first months of the year and started to feel the economic slowdown as of mid-2008, depending on the region.
“From a profitability perspective, it was a challenging year due to soaring raw material and energy costs and highly volatile exchange rates,” Mr. Lemma added.
“Overall, we are facing a very challenging additive market,” said Michael Hoppe, product group manager – additives at Cognis Corporation. “Especially affected is the coatings market, as a result of global slowdown in residential housing and commercial construction in the U.S. and Western Europe. At the same time, higher growth rates in emerging markets, combined with a continued shift to waterborne technology, higher performance and sustainable products, strongly benefited Cognis.”
Raw Material Pricing and Supply
It should come as no surprise that higher raw material costs and supply issues are a major concern for waxes and additives manufacturers.
“Both supply and prices continue to be a concern for the entire industry,” Ms. Durgan said. “We are trying to keep up with raw material increases and secure ample raw materials to supply our customers.”
“Supply is currently tight as far as polyethylene goes, and we have been working as hard as everyone else to hold the line as far as pricing and costs go,” Mr. Choo said. “Customers have been understanding when presented with the facts of the increases, and we are working closer to look for alternative means of costs savings.”
“Virtually no sector has been immune, with unprecedented increases occurring in chemical feedstocks, basic materials, transportation and energy costs, especially mineral oil costs,” Mr. Hoppe noted. “Overall, we have been fairly successful in passing this through, but it is fair to say that we have experienced some push backs and were not able to pass on all of the higher costs across our entire product line.
“Although crude oil is dropping quickly in price, most derivatives have not yet shown signs of retreat,” Mr. Hoppe reported. “This is mainly driven by supply/demand situations existing in the market or ripple effects of the hurricanes impact in the gulf region.”
“The inflationary environment has taken its toll on our costs for raw materials, packaging, distribution and energy,” said Mr. Lemma. “Despite all efforts to absorb this pressure, it was necessary to increase prices for our wetting agents, defoamers and dispersants.”
Mr. Halvorsen noted that maintaining supply is of critical importance.
“We have experienced significant raw material increases which are never easy to pass along,” Mr. Halvorsen said. “While it has been difficult to keep up with the increases, most important is maintaining reliable sources of critical raw materials.”
The manufacturers of waxes, solvents and additives are facing plenty of challenges, beginning with managing cost and supply.
“Our biggest challenge is trying to maintain cost and supply of both raw materials and products to serve the industry,” Ms. Durgan said. “Lubrizol continues to increase our efficiency and try to control our raw material pricing and supply to maintain stable supply and pricing to the industry.”
Mr. Choo said major challenges include the anticipated softening of market demand due to the current economic crisis and uncertainty in prices and supply for raw materials in 2009. “We are continuing our efforts in broadening our supply lines as well as in end market applications,” Mr. Choo noted.
Mr. Hoppe noted that Cognis is taking a wide variety of steps to ensure its cost are competitive.
“Cognis continues working closely with its customers and also takes aggressive actions to increase operating efficiencies throughout our entire organization as well as leveraging our global organization to ensure our costs are competitive,” Mr. Hoppe said.
Mr. Lemma noted that the maturation of North American and European markets, managing costs as well as addressing regulations like REACH, VOC limitations or the EuPIA initiative to establish a public inventory list comprising packaging ink raw materials, are among the areas that Air Products & Chemicals is working on.
“Air Products strives to uncover our customers’ unspoken needs and continues to develop new solutions such as our ZetaSperse dispersant product line that bring value to our customers,” Mr. Lemma added. “An optimized use of surfactants helps to reduce cost-in-use and improve the overall performance of the inks. All recently introduced ZetaSperse grades are free from APEs, solvents, glycols and HAPS.”
Expectations for the Coming Year
Although waxes, solvents and additives manufacturers are concerned about the slumping economy, they believe that the new products will key growth in 2009.
“The prospects of business slowing in 2009, especially the first half of 2009, will be challenging,” Mr. Hoppe said. “At the same time, we believe that despite potential economic challenges, the ‘green movement is real’ and here to stay with continued increasing demand for eco-friendly, low/zero-VOC additives.”
“We are heading into very uncertain economic times and will likely see a general decline in consumption in the additives industry, including surfactants,” Mr. Lemma said. “Air Products will continue to stay focused on the development, production and supply of high-quality products and technical solutions to improve the competitiveness of our customers. New products, such as our ZetaSperse dispersant product line, continue to add value to our customers’ products while reducing costs.”
“A post-election environment will hopefully stabilize consumer expectations and confidence, with resulting stability in the financial markets and potentially a recovery towards the end of 2009,” Mr. Choo said.
“Lubrizol is very excited looking to 2009 with our graphic arts marketing focus,” Ms. Durgan concluded. “In 2009, we will focus on our specialty products and applications in the graphic arts market and maintaining our focus on quality and differentiating technology that will meet and exceed our customers’ needs.”
New Waxes, Solvents and Additives
The following listing includes products introduced to the ink industry in 2008.
Air Products & Chemicals
7201 Hamilton Blvd.
Allentown, PA 18195
Phone: (610) 481-4911
• ZetaSperse 2500
• ZetaSperse 3100
• ZetaSperse 3400
• ZetaSperse 3700
Comments: Four new ZetaSperse pigment dispersing additives were introduced in April 2008, designed to meet the demanding needs of the aqueous dispersion of high performance and problematic pigments. Each new member of this growing additive family has been tailored to provide exceptional results for specific performance needs.
ZetaSperse 2500 additive was designed to robust viscosity stability with metal salt red and similar organic pigment chemistries. This product can also be used as a co-dispersant to boost stability or enhance compatibility in letdown.
ZetaSperse 3100 additive offers broad compatibility with the range of carbon black pigment grades. Very easy to use and formulate, this product is suitable for all types of carbon black.
ZetaSperse 3400 and 3700 additives were tailored to the specific needs of problematic organic pigment chemistries. Through optimized pigment affinity and stabilization mechanisms, these additives can be used to prepare dispersions of outstanding viscosity and color stability. ZetaSperse 3400 additive was designed specifically for quinacridone and perylene pigment chemistries, and has also shown excellent suitability for many azo and organic-metal complex pigments ZetaSperse 3700 was designed specifically for DPP and azo pigment chemistries, and has also shown excellent performance with phthalocyanine pigments.
5051 Estecreek Dr.
Cincinnati, OH 45240
Phone: (513) 482-2340
Fax: (513) 482-5512
• Loxanol EFC 200
Comments: Loxanol EFC 200 is a renewable coalescent with very low odor.
• Perenol S 57
Comments: Perenol S 57 is a solvent-free, 100% active, polyether modified polysiloxane that exhibits excellent substrate wetting and reduction of surface tension of the liquid film.
• DSX 3220 and DSX 3515
Comments: DSX 3220 and DSX 3515 are solvent-free, VOC-free and low odor rheology-additives for aqueous systems.
Hexion Specialty Chemicals
8601 95th St.
Pleasant Prairie, WI 53158
Phone: (800) 852-9837
Fax: (262) 947-7328
• Ultrapoly 215
Comments: Ultrapoly 215 is a high performance blend of tough, low COF polyethylene/PTFE and is recommended where a high degree of lubricity, abrasion and mar resistance, heat resistance and pumpability may be required. Ultrapoly 215 is a 100% non-volatile and fast-setting, protecting the film in the earliest stages of the printing process, while developing exceptional toughness over time.
• Ultrapoly 980 E
Comments: Ultrapoly 980 E is a 100% nonvolatile polyethylene wax compound formulated with a high content of renewable material. Ultrapoly 980 E combines excellent rub resistance, abrasion and scratch resistance.
• Fluoron 735
Comments: Fluoron 735 is a PTFE dispersion providing maximum rub and slip performance properties while reducing the total cost of performance printing. Fluoron 735 is stable in all offset applications including overprint varnishes. Aqueous and UV coatings can be used with inks containing this material.
• Flexonic 37A
Comments: Flexonic 37A is a high density, polyethylene wax emulsion. Flexonic 37A is used as an additive in water-based inks and coatings where improved slip, rub resistance, hardness and/or block resistance are needed.
Lubrizol Advanced Materials, Inc.
9911 Brecksville Road
Cleveland, OH 44141
Phone: (216) 447-5000
Fax: (216) 447-5238
• Pinnacle 9009
Comments: Pinnacle 9009 is a high performance micronized PTFE with excellent slip and rub properties. Pinnacle 9009 is suitable for all inks requiring additional abrasion resistance and slip properties.
• Carbocure energy curable ink additives and dispersions
Comments: Carbocure energy curable ink additives and dispersions are formulated for use in energy curable ink systems to improve both press performance and the appearance of the printed product. Products available are:
• Carbocure 608, which improves rub resistance and slip for energy curable systems.
• Carbocure 645, designed for rub resistance and slip for energy curable systems.
• Carbocure 646 anti-mist additive for energy curable systems.
• Carbocure 647, designed for rub resistance and slip for energy curable systems.
• Carbocure 649, designed for rub resistance and slip for energy curable systems.
• Carbocure 651, formulated to reduce picking and piling in all energy curable lithographic inks.
• Carbocure 652, designed to provide matting, rub resistance and slip for energy curable inks and coatings.
• Carbocure 655, which provides low COF and good rub resistance while remaining suspended in the coating for longer periods than conventional wax dispersions.
• Carbocure 660, designed for rub resistance and slip for energy curable systems.
• Carbocure 750, a replacement for dry clay and silica additives in all energy curable lithographic inks.
• Carbocure 920, which provides a textured surface when added to energy curable overcoats.
• Carbocure 930, which provides a textured surface when added to energy curable overcoats.
Shamrock Technologies, Inc.
Foot of Pacific Street
Newark, NJ 07114
Phone: (973) 242-2999; (800) 349-1822
Fax: (973) 242-8074
• Hydrocer 795
Comments: Hydrocer 795 is a stable high loading aqueous wax dispersion over 50% active to impart excellent scuff resistance and low co-efficient of friction to water-based flexographic and gravure inks.
• UltraMATTE 76, 76A and 76S
Comments: UltraMATTE 76, 76A and 76S are modified urethane polymers for improved matting and a smooth, warm feel in all liquid coatings.
• S-252 N1
Comments: S-252 N1 is an easily dispersible functional wax formulated to impart the best slip and rub properties in both pigments and clear systems, with minimal impact on gloss in clears.
• AquaFLON 91
Comments: Offering “high rub for dark colors,” AquaFLON 91 is a new economical 60% aqueous PTFE dispersion developed for dark colors.