Sample Report from 2009

Transcription

Specialty Chemicals
Update Program
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Adhesives and Sealants
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09
IHS Chemical
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by Ray Will with Thomas Kälin, Akihiro Kishi
and Yang-Wei
December 2009
ihs.com/chemical
ADHESIVES AND SEALANTS
DECEMBER 2009
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The information provided in this publication has been obtained from a variety of sources, which SRI
Consulting believes to be reliable. SRI Consulting makes no warranties as to the accuracy,
completeness or correctness of the information in this publication. Consequently, SRI Consulting will
not be liable for any technical inaccuracies, typographical errors or omissions contained in this
publication. This publication is provided without warranties of any kind, either express or implied,
including but not limited to, implied warranties of merchantability, fitness for a particular purpose, or
non-infringement.
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IN NO EVENT WILL SRI CONSULTING BE LIABLE FOR ANY INCIDENTAL,
CONSEQUENTIAL OR INDIRECT DAMAGES (INCLUDING BUT NOT LIMITED TO
DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, OR THE LIKE) ARISING
OUT OF THE USE OF THIS PUBLICATION, EVEN IF IT WAS NOTIFIED ABOUT THE
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EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL
DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. IN SUCH STATES SRI
CONSULTING’S LIABILITY IS LIMITED TO THE MAXIMUM EXTENT PERMITTED BY
SUCH LAW.
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Certain statements in this publication are projections or other forward-looking statements. Any such
statements contained herein are based upon SRI Consulting’s current knowledge and assumptions
about future events, including, without limitation, anticipated levels of global demand and supply,
expected costs, trade patterns, and general economic, political, and marketing conditions. Although
SRI Consulting believes that the expectations reflected in the forward-looking statements are
reasonable, it cannot, and does not, guarantee, without limitation, future results, levels of activity,
performance or achievements. Readers should verify through independent third-party sources any
estimates, projections or other forward-looking statements or data contained herein before reaching
any conclusions or making any investment decisions. SRI Consulting is not responsible for the
Reader’s use of any information in this publication.
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The absence of a specific trademark designation within this publication does not mean that proprietary
rights may not exist in a particular name. No listing, description or designation in this publication is to
be construed as affecting the scope, validity, or ownership of any trademark rights that may exist
therein. SRI Consulting makes no warranties as to the accuracy of any such listing, description or
designation, nor to the validity or ownership of any trademark.
 2009 SPECIALTY CHEMICALS
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TABLE OF CONTENTS
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Introduction..............................................................................................................................................
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Summary ..................................................................................................................................................
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Overview of the Adhesives and Sealants Industry ..................................................................................
World Consumption of Adhesives and Sealants .................................................................................
Structure of the Industry ......................................................................................................................
Company Profiles ................................................................................................................................
Henkel Corporation .........................................................................................................................
Organization.................................................................................................................................
Product portfolio and integration.................................................................................................
Financial performance .................................................................................................................
Bostik Inc.........................................................................................................................................
Organization.................................................................................................................................
H.B. Fuller .......................................................................................................................................
Organization.................................................................................................................................
3M....................................................................................................................................................
Organization.................................................................................................................................
Developments, acquisitions and divestitures ...............................................................................
Dow Chemical/ Rohm and Haas Company .....................................................................................
Organization.................................................................................................................................
Momentive Performance Materials .................................................................................................
Hexion Specialty Chemicals, Inc.....................................................................................................
Organization.................................................................................................................................
Konishi.............................................................................................................................................
Organization.................................................................................................................................
Operating Characteristics.....................................................................................................................
Research and Development .............................................................................................................
Manufacturing and Technology.......................................................................................................
Sales and Marketing.........................................................................................................................
Pricing and Profitability...................................................................................................................
Government Regulations .....................................................................................................................
United States....................................................................................................................................
Western Europe................................................................................................................................
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Japan ................................................................................................................................................
VOCs ...........................................................................................................................................
Chemical emissions .....................................................................................................................
Waste disposal .............................................................................................................................
Indoor air quality .........................................................................................................................
China................................................................................................................................................
Trends and Opportunities.....................................................................................................................
Markets ............................................................................................................................................
Technologies....................................................................................................................................
Competition .....................................................................................................................................
Consolidation ...................................................................................................................................
Globalization....................................................................................................................................
Electronic Commerce ......................................................................................................................
Critical Factors for Success .................................................................................................................
Product Performance and Reliability...............................................................................................
Technical and Market Expertise ......................................................................................................
Technical Service.............................................................................................................................
Customer Relationships ...................................................................................................................
Specialization...................................................................................................................................
Marketing and Sales Organization ..................................................................................................
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TABLE OF CONTENTS (continued)
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Product Types ..........................................................................................................................................
Reactive Adhesives..............................................................................................................................
Epoxy Adhesives .............................................................................................................................
General description ......................................................................................................................
Consumption and markets............................................................................................................
Consumption by region............................................................................................................
Consumption by market...........................................................................................................
Market participants ......................................................................................................................
Global ......................................................................................................................................
North America .........................................................................................................................
Central and South America......................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
Prices............................................................................................................................................
Future trends and strategic issues ................................................................................................
Polyurethane Adhesives ..................................................................................................................
Consumption by region............................................................................................................
Consumption by market...........................................................................................................
Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
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Prices............................................................................................................................................
Modified Acrylic Adhesives............................................................................................................
Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
Prices............................................................................................................................................
Anaerobic Adhesives .......................................................................................................................
Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
Prices............................................................................................................................................
Cyanoacrylate Adhesives.................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Japan ........................................................................................................................................
China........................................................................................................................................
Other Asia................................................................................................................................
Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
Prices............................................................................................................................................
Radiation-Curable Adhesives ..........................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
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Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
Prices............................................................................................................................................
High Performance Sealants..................................................................................................................
Overview of the Industry .................................................................................................................
North America .........................................................................................................................
Growth in Central and South America is expected as follows: ...............................................
Western Europe........................................................................................................................
Japan ........................................................................................................................................
Silicone Sealants ..............................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Japan/Asia................................................................................................................................
Prices............................................................................................................................................
Silyl-Modified Polyether and Other Polymer Sealants (Modified Silicone)...................................
Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Japan/Asia................................................................................................................................
Prices............................................................................................................................................
Polyurethane Sealants ......................................................................................................................
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TABLE OF CONTENTS (concluded)
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Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Japan/Asia................................................................................................................................
Prices............................................................................................................................................
Polysulfide Sealants.........................................................................................................................
Global ......................................................................................................................................
North America .........................................................................................................................
Western Europe........................................................................................................................
Asia ..........................................................................................................................................
Prices............................................................................................................................................
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SUMMARY
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This report focuses on the supply/demand and business aspects of the higher-value synthetic adhesives
and sealants as opposed to the long-established commodity products, typically of natural origin such as
animal- and plant-derived adhesives. Further information on the supply/demand and business aspects of
adhesive natural polymer active ingredients including dextrin, starch and casein, and water-soluble
polymer active ingredients including polyvinyl alcohol, methylcellulose, carboxymethylcellulose,
polyvinylpyrrolidone and others may be found in the SCUP report on Water-Soluble Polymers.
The polymer dispersion/emulsion adhesives category is the largest because of their versatility and
moderate price, followed by solvent-based adhesives. Consumption of solvent-based adhesives is
declining in developed countries primarily because of VOC emission regulations, but is growing strongly
in developing countries such as China following the rise of shoe manufacturing.
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Silicone products dominate the sealants market, followed by polyurethane products. Polysulfide sealants
are losing market share to these products and to commodity sealant products. Silicon-modified polyether
sealants have expanded beyond their Japanese production base to the larger markets in North America
and Western Europe.
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The following tables summarize specialty adhesive and sealant consumption for 2008.
Table 1
29.6
112.1
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1
2
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Epoxya
Polyurethanea
Modified Acrylicb
Anaerobicb
Cyanoacrylateb
Radiation Curableb
3.3
8.3
0.1
0.1
0.1
0.2
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Reactive Specialty Adhesives
South and
Central
America
Total
Western
Europe
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World Consumption of Specialty Adhesives and Sealants—2008
(thousands of metric tons)
149.7
12.1
68
2.9
21
3.4
19
0.12
2
1.3
95.3
22.4
25.1
80
0.93
0.6
0.48
4.7
111.8
Rest of
Asia
Rest of
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World
33.2
72
1.2
2
4
1
9.5
31.2
0.5
0.3
1.5
5
16.0
59.4
neg
neg
0.2
neg
127.2
413.3
4.59
4.3
8.8
16.2
46.3
113.4
48.0
75.6
574.5
16
0.12
6
0.6
21
13.2
12.9
3.1
114
<0.1
6
5.6
55
0.4
3
0.4
14
neg
5.5
1.0
401
32.7
96.9
29.9
22.7
50.2
125.7
58.8
21
560.5
Rest of
Europe
Japan
2.9
14.3
0.16
0.1
neg
0.1
7.6
36
0.7
0.2
0.5
1.3
17.6
China
Total
Specialty Sealants
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Siliconea
Silyl-Modifieda
Polyurethanec
Polysulfidesa
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Total
94
16
40.5
14.5
165
a.
Includes only the polymer or resin portion of the formulation, which can be 20-40% of the formulation in silicone-modified
polymer, polyurethane, and polysulfide, and 60-80% in silicone. Hot melt is nearly 100% of the formulation. The balance of
formulations is filler, pigment, plasticizer, thickener, solvent, etc.
b.
Includes monomer, resin, elastomer, curing agent, diluent and all other additives. The binder (monomer, resin and/or reactive
diluent) usually accounts for most of the formulation.
c.
Includes only the binder (polyol plus isocyanate) portion of the formulation. The binder usually accounts for 30-60% of the
total.
SOURCE:
SRI Consulting.
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FIGURE 1
World Consumption of Reactive
Specialty Adhesives—2008
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FIGURE 2
World Consumption of Specialty Sealants—2008
Acrylic
Cyanoacrylate Modified
0.8%
1.5%
Other
Radiation
0.8%
Curable
2.8%
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Polysulfides
Silyl-Modified 5.3%
5.8%
Epoxy
22.1%
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Polyurethane
17.3%
Silicone
71.6%
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Polyurethane
72%
Table 2
382
570
30
145
150
60
Total
Western
Europe
Rest of
Europe
Japan
China
Rest of
Asia
Rest of
the
World
Total
43
42
4
5
10
2
428
730
39
95
60
70
43
145
4
13
2
4
191
423
28
40
78
71
398
925
36
63
80
45
218
319
15
12
37.5
260
206
302
neg
neg
20
neg
1,909
3,456
156
373
437.5
512
1,337
106
1,422
211
831
1,547
861.5
528
6,843.5
815
36
141
32
200
1
13
12
760
140
356
132
110
1
50
5.4
250
403
260
96
736
neg
82
43
385
neg
69
8
168
8
37
8
3,424
589
1,008
336.4
1,024
226
1,388
166.4
1009
861
462
221
5,357.4
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Epoxy
Polyurethane
Modified Acrylic
Anaerobic
Cyanoacrylate
Radiation Curable
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Reactive Specialty Adhesives
South and
Central
America
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North
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World Value of Formulated Specialty Adhesives and Sealants—2008
(millions of dollars)
Specialty Sealants
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Silicone
Silyl-Modified
Polyurethane
Polysulfides
Total
SOURCE:
SRI Consulting.
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FIGURE 3
World Value of Reactive
Specialty Adhesives—2008
FIGURE 4
World Value of Specialty Sealants—2008
Polysulfides
6.3%
Modified Acrylic
2.3%
Silyl-Modified
11.0%
Cyanoacrylate
6.4%
Radiation
Curable
7.5%
Polyurethane
50.5%
Polyurethane
18.8%
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Anaerobic
5.5%
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Silicone
63.9%
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Epoxy
27.9%
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Specialty adhesives and sealants compete more on performance than price, as compared with generalpurpose or commodity products, although major adhesive and sealant producers may produce a full range
of products including specialty and general-purpose products; their products are typically branded.
Producers command a premium for specialty products, while general-purpose products typically also
benefit from branding, with more of a premium than less powerful brands or generic products.
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Significant increases in petroleum-derived feedstock prices have impacted adhesive and sealant
producers. Commodity producers tend to operate with smaller margins and have a greater share of
production cost in raw materials, while specialty producers have cited feedstock prices as reasons for
recent price increases and surcharges. Typically producers with valuable brands have exercised pricing
power and tried to maintain margins during rising raw material prices although this was exceptional
during the economic recession in 2008 since raw material price increases tended to outpace adhesive and
sealant price increases, particularly in the first half of 2008.
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Consolidation in the adhesives and sealants industry has built depth in vertical integration and broadened
product lines in some major companies such as Henkel, while other companies have closed, or spun off
poorly performing or less related businesses or reduced the array of products offered, such as General
Electric and H.B. Fuller. However, the industry remains highly fragmented, with numerous small and
medium-sized companies with a relatively high level of customization and service, particularly in the
highest-value adhesive and sealant segments.
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The diversity of the adhesives market can create a challenge for large adhesives companies that operate
several businesses across a variety of end uses. These companies seek cost advantages of scale and often
target large market segments. This allows smaller niche players to be very successful by choosing a
narrow segment and providing superior customer-specific service. Such service focus is particularly
important where producer oversight is needed to ensure correct selection and use of the product.
The types of users that are best served by small, local adhesives producers include medium-sized
companies in the packaging and beverage industries, bookbinders, woodworkers, and furniture makers.
The large global producers are more suited to supplying customers in the nonwoven, automobile, and
electronics/electrical markets. Supply chain integration in the adhesives business can be significant for
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major producers such as 3M, H.B. Fuller and National Starch and Chemical; however, most mediumsized and small producers are formulations focused, with few back-integrated into polymer production,
and rely on their suppliers to develop new polymers.
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Adhesives consumers prefer high levels of service and responsive product development, rather than inhouse product development because
Most end users would rather concentrate on their main business and the optimization of their
manufacturing equipment. Adhesives producers are best able to select the correct adhesive
technology for a specific end use.
●
End users do not need to keep stocks of adhesive and sealant raw materials, which can have a
short shelf life because of their reactivity, thus keeping their inventory requirements down.
●
Outside vendors can respond quickly when product requirements are changed. Users can avail
themselves of the experience and technical service of the adhesives formulator whenever they
have any production or quality problems and can hold the formulator liable for failures.
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In the sealants industry, a greater proportion of producers have backward integration, particularly in the
case of Dow Corning and Momentive in silicone polymers and silicone sealants.
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The cost of producing adhesives and sealants is attributable primarily to the cost of the raw materials plus
the necessary service component of training customers and helping them resolve manufacturing issues.
Adhesives compounding equipment is typically installed in multipurpose units that are seldom dedicated
to a specific product. Important strengths in manufacturing are flexibility, low-cost production units and
appropriate quality control.
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In general, the adhesives business is highly competitive, especially in the commodity sector. Prices and
margins vary, depending on the specific adhesive or sealant, market segment, and regional market. In
general, gross margins for adhesive products commonly range from 15% to 25% for commodity products,
while specialty products can range to as much as 45-50% or more. Producers in the mature commodity
markets compete on price; customers often request bids from competing producers. For premium
products, adhesives are selected and priced based on their performance characteristics. Product
performance and level of service are seldom identical among different producers so pricing is typically
differentiated by the needs of the customer. Also, formulation changes or reformulations may reduce the
impact of raw material price rises. But ultimately, pricing power is strongest for unique products in high
demand.
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Adhesive and sealant manufacturers have sales support and R&D staff that work closely with customers
to modify existing products or develop new products. In many cases, the responsiveness of the R&D and
technical customer service of the supplier are decisive factors in choosing adhesives. However, some
major adhesives producers, such as H.B. Fuller, have reduced product differentiation and customization
and are instead concentrating more on unique, but higher-margin, products with greater market potential.
Environmental regulations continue to increase as more VOC emission sources are targeted for reduction
or elimination. Some producers have switched from targeted solvents to other solvents only to find they
must switch again with new regulations, or have changed to lower- or no-emission technologies.
Waterborne products continue to push into commodity markets, but their penetration into specialty
segments has slowed because of the formulating difficulties and performance challenges in the
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solventborne segments. Although the consumption of solvent-based adhesives is continuing to decline in
North America, Western Europe and Japan, this category is growing steadily in China and the rest of
Asia, following the growth of relocated industries such as shoe manufacturing. Overall, hot melt
technologies have seen the greatest growth globally, because they offer very low or no emissions, work
on a variety of substrates, and are easy to apply. Also, new low-temperature and reactive hot melt
products have expanded the possible end-use areas for these adhesives.
Some of the critical factors for success in the adhesives and sealants industry are
Product reliability
●
Technical and market expertise
●
Effective and responsive marketing, sales, and technical service organizations
●
Strength of customer relationships and product brands
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●
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Although standard business practices will continue to play a major role in capturing and retaining
customers, electronic commerce also plays an important role in this industry, particularly as a means of
providing service, sales and support via more timely, more effective and less costly channels.
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INTRODUCTION
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In a world that is increasingly made up of synthetic materials, adhesives have a growing role in holding it
all together. Adhesives and sealants are versatile products that find use in most industrial sectors.
Opportunities for these products continue to expand as manufacturers increasingly seek new performance
requirements in bonding dissimilar materials, substitute synthetic substrates for traditional materials,
demand environmental benefits such as volatile organic compound (VOC) reduction and design for
recycling, and create fashion innovations and aesthetic bonding solutions for various substrates. From an
engineering and design perspective, adhesives are valued because of their ability to bond dissimilar
substrates, resist vibration, and distribute stresses over a wide area. Leading application segments include
paper, packaging and related, construction, assembly/manufacturing, woodwork and consumer products.
Specialty (premium) adhesives are typically used in construction, automotive, appliance, aerospace,
furniture and electrical/electronic applications.
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Sealants differ from adhesives in their primary function of filling gaps between surfaces to prevent the
passage of air, water and/or chemicals. Sealant formulations typically possess higher elasticity and
flexibility than adhesives and generally display lower cohesive strength, with failure occurring within the
sealants and not at the bond line.
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The use of heat bonding or rivets to join plastic products is generally not feasible so manufacturers often
turn to adhesives when they switch from traditional materials to plastic. And in applications that have
retained metal and other traditional substrates, many industrial users have learned to use adhesives and
have come to appreciate the secondary benefits—including vibration damping, reduced weight, improved
surface appearance and sealing properties—which helps to encourage their use in new designs. These
factors keep adhesives volume growth rates above GDP in most regions.
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Adhesives can be used in a variety of forms—water-based, solvent-based, 100% solids (hot melts and
pressure-sensitive adhesives), films and powders. They are used in a broad range of applications from
nonrigid bonding in textiles and flexible packaging to structural applications where the adhesive is
designed to provide high bond strength.
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Sealants are thick, nonpourable materials that are used to prevent the passage of a liquid or a gas between
two surfaces; they are designed for gap filling, tightness and long-term flexibility, often with an
acknowledged loss in bond strength. In many cases, sealants are also used for their adhesive properties
and, therefore, also benefit from factors that influence adhesive growth.
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Adhesives can also be categorized by form, chemical binder or end-use market. The multiple methods of
segmenting the adhesives and sealants industry often create confusion when trying to compare regions or
end uses in this industry, but serve to emphasize the strength of producer and intermaterial competition in
this complex industry.
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Table 3
Categories of Specialty Adhesives and Applications
Adhesive Form
Major
Applications
Types of Binder Used
Amino
Natural rubber
Phenolic
Polyvinyl acetate
SBR
Construction
Consumer
General industrial
Textiles
Transportation
Wood furniture
Hot melt
Ethylene–vinyl acetate
Polyamide
Polyester
Polyurethane
Polyvinyl butyral
Styrene block copolymer
Bookbinding
Diapers
Footwear
Furniture
Packaging
Transportation
Pressure Sensitive
Acrylic
Natural rubber
Styrene block copolymer
Decals
Labels
Tapes
Transfer films
High Performance, Reactive
Anaerobic
Cyanoacrylate
Epoxy
Modified acrylic
Radiation curable
Urethane
Aerospace
Appliances
Automotive
Consumer
Electronics
Textiles
SRI Consulting.
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SOURCE:
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General Contact
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The most important component of adhesives is a binder—usually a polymer—which holds the system
together and is the major contributor to the adhesive performance. Other components may be added to
achieve the required properties in the final adhesive formulation, including diluents and solvents,
antioxidants, extenders, fillers, catalysts, plasticizers, defoamers, preservatives, tackifiers and thickeners.
The formulator chooses the appropriate raw materials to balance performance requirements and cost
minimization for a particular application.
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On a chemical basis, adhesives are broadly defined by the following categories:
Natural Polymers—plant- and animal-derived adhesives such as casein, dextrin and starches
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●
●
Water-Soluble Polymers—cellulose ethers (carboxymethylcellulose, methyl cellulose, etc.),
polyvinyl alcohol, polyvinyl pyrrolidone and other
●
Solvent-Based—polychloroprene, polyurethane, natural and synthetic rubber, and other
●
Hot melt—polyethylene, polypropylene, ethylene–vinyl acetate, polyamide, polyester, styrene,
polyurethane and other
•
SRI CONSULTING
DECEMBER 2009
15
Reactive—epoxies, polyurethanes, polyesters, cyanoacrylate and other acrylics, phenolics, urea,
melamine, resorcinol, and others such as radiation curable
●
Polymer Dispersion/Emulsion—vinyl acetate, ethylene–vinyl acetate, acrylics, natural and
synthetic rubber, polyurethane, and other
●
Other
20
09
●
Sealants are defined by the following chemical categories:
Oil base, latex and solvent caulks
●
Polyvinyl acetate caulks
●
Butyl rubber
●
Polysulfides
●
Urethanes
●
Silicones
●
Silicone modified
●
Other
ep
or
t
fr
om
●
Reactive adhesives often compete with mechanical methods of fastening, such as nails, bolts, rivets,
solder and screws. The major advantages of adhesives are as follows:
Evenly distribute stresses over a wide area, giving improved fatigue resistance and long-term
durability.
●
Maintain continuous contact between substrates, giving sealing as well as load-bearing properties.
●
Bond dissimilar materials and precoated metal, thereby leading to greater design freedom.
●
Bond at ambient or moderately elevated temperatures compared with welding or soldering.
Lower bonding temperatures are particularly important for synthetic polymers.
m
pl
e
R
●
Reduce noise and vibration generation in the finished component.
Sa
●
●
Lower weight and cost without loss of strength.
●
Eliminate mechanical fasteners in aesthetically displeasing or physically impossible applications
(e.g., bonding of plastic panels to steel).
●
Lower potential damage to substrates during bonding than welding.
•
SRI CONSULTING
DECEMBER 2009
16
Some of the disadvantages of adhesives are as follows:
Redesign of the assembly process is often required. Design engineers usually have to modify
products and assembly processes to incorporate adhesives in place of mechanical fasteners.
Adhesives manufacturers educate potential users, who are often familiar only with mechanical
fasteners, about appropriate designs that can use adhesives. The total manufacturing system,
including substrate coatings and process lubricants, must be evaluated to select the proper
adhesive.
●
Disassembly after mistakes is very difficult and often destructive.
●
There is limited ability to obtain environmental resistance data, in some cases.
●
There is a possibility of chemical exposure during the adhering process. Chemicals are used that
must be handled with caution because of toxicity, fire and/or odor concerns. Workers can also be
exposed to high temperatures used for curing or melting.
●
Surface preparation may be necessary. Careful cleaning or priming of the substrate is often
required to ensure good bonding.
●
Postapplication support is often required. Fixtures may be required to hold the mated surfaces in
place until the adhesive cures or solidifies.
●
Bond quality assurance can be uncertain. There are no reliable nondestructive quality evaluation
procedures for adhesives. When a rivet or mechanical fastener has not been properly installed, it
is usually obvious to assembly personnel. However, an adhesive that is totally enclosed by the
bonded substrates cannot be easily inspected.
●
Heat or other radiation is often required. Some adhesives require heat for curing; this places the
substrates under thermal stresses, which may be objectionable (as with some plastics). Other
adhesives or sealants require ultraviolet light or an electron beam to facilitate polymerization and
curing.
R
ep
or
t
fr
om
20
09
●
Sa
m
pl
e
The distinction among adhesive classifications and between adhesives and sealants can be blurred—in
particular with polyurethane products, which are found in four adhesives categories. Likewise, some
sealants can possess excellent bond strength and can function as an adhesive and a sealant. These types of
sealants can accommodate relatively high levels of joint compression or tension with good recovery and
are suitable for use in commercial building and construction for exterior siding.
•
SRI CONSULTING
DECEMBER 2009
REVISED MAY 2010
17
OVERVIEW OF THE ADHESIVES AND SEALANTS INDUSTRY
WORLD CONSUMPTION OF ADHESIVES AND SEALANTS
20
09
The adhesives and sealants market is composed of both commodity and specialty adhesives and sealants,
as defined in the INTRODUCTION above. Many of the largest adhesive and sealant companies produce
a variety of products including both specialty and commodity adhesives and sealants but typically product
lines are channeled toward a particular consumer group—do-it-yourself consumer (DIY), professional
tradesmen (such as construction or aftermarket repair), or industrial manufacturer (such as footwear or
furniture). The following tables show world consumption for both commodity and specialty adhesives
and sealants.
Table 4
Central
and South
America
Western
Europe
44
--b
66
15
30
20
5
13
803
--b
326
282
174
174
65
109
Total
Sealants
Total
398.0
--b
71.7
108.0
38.3
38.3
14.3
24.0
218.9
222 c
50.2
100.8
107.7
45
26.3d
87.6
2,173
2,265c
353
380
217
nad
30d
350
310
-203
80.1
83
39.8
na
21.7
341
-223
86.3
91
44
na
23.9
5,600.9
2,487
1,691.2
1,402.2
1,336.3
496.9
187.6
730.2
5,768.0
737.6
809.6
13,932.2
1,933.0
692.6
858.5
97.0
46.0
27.1
5
121.8
65.3
16.6
8.9
28.5
48.6
114
20
18.6
11.1
14.3
8.6
437.9
213.5
31
9.8
9.2
10
4
16
4.4
3.7
neg
2.3
1.5
5
10.7
40.1
19.4
16.2
4.7
36.8
1.5
5.5
2.7
2.2
0.6
5.0
3.2
13.3
47.5
0.4
na
34.2
na
14
neg
0
na
25
33
9.8
neg
5.4
9.2
16.6
25.4
7.6
neg
4.2
7.1
12.8
109.2
103.8
78.8
40.7
27.1
151.4
43.0
175.7
173
103.7
80.0
1,162.4
223
49
315
Includes monomer, resin, elastomer, curing agent, diluent and all other additives. The binder (monomer, resin and/or reactive
diluent) usually accounts for most of the formulation.
Sa
a.
Rest of
the
World
193.0
pl
e
m
Total
China
Rest of
Asia
2,940.0
R
Silicone
Urethanes
Oil-Based Latex and
Solvent Acrylic
Polysulfides
Silyl-Modified Polyethers
Butyl Rubber
Polyvinyl Acetate
Other
1,313
--b
398
350
595
136
47
101
ep
Polymer Dispersion/Emulsion
Formaldehyde Based
Solvent Based
Reactive
Hot melt
Natural Polymers
Water-Soluble Polymers
Other
Japan
or
t
Adhesives
Eastern
Europe
fr
North
America
om
World Consumption of Adhesives and Sealants—2008a
b.
Formaldehyde-based adhesives are included in Reactive.
c.
Formaldehyde-based adhesives consumption for Japan, China and Asia includes use in lumber production, including
plywood, oriented strand board and particleboard manufacture. Lumber production adhesive use is excluded for other
regions.
d.
Natural polymer–based adhesives (especially starches) and water-soluble polymer–based adhesives (especially polyvinyl
alcohol) are not generally considered adhesives in statistics published by adhesive industry associations of these countries.
For additional information on water-soluble polymers used in adhesives see the SCUP Water-Soluble Polymers report.
SOURCE:
SRI Consulting.
•
SRI CONSULTING
FIGURE 5
World Consumption of Adhesives
by Country—2008
Central and
South America
1.4%
FIGURE 6
World Consumption of Adhesives
by Type—2008
Water-Soluble
Polymers
1.3%
Natural Polymers
3.6%
Rest of the
World
5.9%
Eastern Europe
5.0%
Rest of Asia
5.3%
Hotmelt
9.6%
Japan
6.2%
China
41.4%
Reactive
10.1%
Western
Europe
13.9%
om
fr
FIGURE 8
World Consumption of Sealants
by Type—2008
Rest of the
World
6.8%
Other
Polyvinyl Acetate 13.1%
2.5%
pl
e
R
ep
Western
Europe
27.1%
Butyl Rubber
3.5%
SilylModified
Polyethers
6.6%
Silicone
37.3%
Polysulfides
8.9%
North
America
19.2%
Oil-Based
Latex and
Solvent Acrylic
9.9%
Sa
m
Japan
15.1%
Formaldehyde Based
17.9%
or
t
FIGURE 7
World Consumption of Sealants
by Country—2008
China
14.9%
Polymer
Dispersion/
Emulsion
40.2%
Solvent
Based
12.1%
North
America
21.1%
Eastern
Europe
3.7%
Central and
South America
4.2%
Rest of
Asia
8.9%
Other
5.2%
20
09
DECEMBER 2009
REVISED MAY 2010
18
•
SRI CONSULTING
Urethanes
18.2%
DECEMBER 2009
19
Table 5
World Consumption of Formulated Adhesives and Sealants by Market—2008
Central
and South
America
Western
Europe
Eastern
Europe Japan
Rest of
China
Asia
Adhesives
Paper, Packaging and Related
(including pressure sensitive)
Adhesive Formulationa
Tape, Sheet, Label Productsb
Total
---
---
619
1,214
196
1,300
---
---
---
4,933
--
1,285
491
1,833
1,496
--
--
10,038
1,325
765
596
477
20
1,021
-------
1,694
526
759
584
117
876
9,137
464
5,841
Sealants
634
296
245
139
Total
742
441
168
32
16
645
1,350
1,303
90
68
500
1,368
-------
-------
5,759
3,236
1,903
1,384
698
4,245
2,233
3,877
6,175
3,200
875
31,802
900
417
218
310
344
159
83
118
742
214
27
71
611
115
50
88
300
115
30
60
-----
3,531
1,316
653
786
1,314
176
1,845
704
1,054
864
505
460
6,922
10,451
640
7,686
2,937
4,931
7,039
3,705
1,335
38,724
R
Total
648
201
290
223
45
335
-----
ep
Construction
Transportation
Consumer
Assembly/Other
om
---
fr
Construction
Woodwork
Transportation
Consumer Adhesives
Footwear/Leather
Assembly/Manufacturing/Other
Total
---
or
t
Total
Rest of
the
World
20
09
North
America
Estimated value for adhesive formulation for pressure-sensitive adhesive processed products.
b.
Estimated value for processed products such as pressure-sensitive tape, adhesive labels, and adhesive sheet. These are not
considered adhesives and are not reported by the adhesive industry associations of Japan and China.
pl
e
a.
SRI Consulting.
Sa
m
SOURCE:
•
SRI CONSULTING
Rest of the
World
2.8%
Assembly/
Manufacturing/Other
13.3%
Eastern Europe
7.0%
Footwear
2.2%
North
America
28.7%
Rest of Asia
10.1%
Consumer
4.4%
Transportation
6.0%
Total Paper,
Packaging
31.6%
om
Japan
12.2%
20
09
FIGURE 10
World Consumption of Formulated
Adhesives by Market—2008
FIGURE 9
Adhesives by Country—2008
Central and
South America
1.5%
DECEMBER 2009
20
Woodwork
10.2%
China
19.4%
Construction
18.1%
fr
Western Europe
18.4%
FIGURE 11
Sealants by Country—2008
Rest of the
World
6.7%
Assembly/Other
11.4%
Western
Europe
26.7%
R
ep
Rest of Asia
7.3%
Eastern
Europe
10.2%
or
t
Central and
South America
2.5%
FIGURE 12
Sealants by Market—2008
pl
e
China
12.5%
North
America
19.0%
Consumer
9.4%
Construction
51.0%
Transportation
19.0%
Sa
m
Japan
15.2%
STRUCTURE OF THE INDUSTRY
The structure of the adhesives and sealants industry is shown in Figure 13. The major participants are raw
material suppliers, adhesive and sealant formulators, distributors or resellers, and consumers.
The raw material suppliers to this industry also supply products to other industries. For example, the
coatings industry uses many of the same resins as the adhesives industry, and producers often market their
product similarly to these end uses. These suppliers typically focus their efforts on developing new resins,
allowing the adhesives producers to make new adhesive products to be sold under their own trade names.
•
SRI CONSULTING
DECEMBER 2009
21
20
09
Several large resin suppliers are adhesive and sealant producers—Dow Chemical, Dow Corning, and
Rhodia formulate products that are supplied to important resellers that then market them under their own
brand names. As much as 35-40% of U.S. adhesives demand is met by captive production, with the
remainder supplied from the merchant market. Captive production is more common in the packaging and
laminate market segments.
FIGURE 13
Structure of the Specialty Adhesives and Sealants Industry
Resin/Binder Manufacturers
Additive Manufacturers
Curing Agents
Fillers
Pigments
Solvents
Etc.
om
Epoxy
Polyurethane
Silicone
Acrylic
Etc.
Converted Product
Producers
or
t
fr
Formulators
Distributors and
Resellers
R
Automotive
and
Transport
ep
End-User Industries
Construction
Aerospace
Electrical/
Electronic
pl
e
Industrial
m
The adhesives and sealants formulating industry consists of a limited number of large global firms,
medium-sized companies, and many small independent producers. The global adhesives and sealants
industry is very fragmented; of the total global market, estimated at about $39 billion, the top eight
companies account for about 42% of global sales. Over 1,000 companies account for the balance.
Sa
This global situation is paralleled in the United States, where more than 400 adhesive and sealant
producers supply the market, according to the Economic Census 2007 published by the U.S. Bureau of the
Census, a manufacturing industry survey conducted each five years. The 2007 results show several
changes from 2002. Although this survey does not capture the entire market, it does provide useful
information on market trends. An important note: the year 2007 found the U.S. economy in a strong
growth trend; this was followed by the onset of economic recession beginning in 2008, particularly in
manufacturing. Therefore, the statistics generated by the Economic Census 2007 shown in the table below
do not capture the economic decline that arrived in 2008, which accelerated in the first half of 2009.
•
SRI CONSULTING
DECEMBER 2009
22
The number of adhesive and sealant producers decreased from 543 to 455 from 1997 to 2002, while total
sales decreased about 17% in dollar terms over the five-year period. Employment fell from 21,737
employees in 1997 to 20,367 in 2002, but rose in 2007 to 21,794.
U.S. Sales of Adhesives and Sealants
1997
543
455
445
324,534
4,327,861
221,499
3,971,879
na
na
349,152
410.4
na
na
na
na
75,510
34.9
433,804
na
na
na
na
na
na
na
na
492,785
na
na
na
na
fr
209,810
143.1
497,742
or
t
Natural Base Adhesives (thousands of dollars)
Synthetic Adhesives (thousands of dollars)
Acrylic Adhesives
Value (thousands of dollars)
Weight (millions of pounds)
Cyanoacrylate Adhesives
Epoxy Adhesives (thousands of dollars)
Urethane Adhesives
Structural Sealants (thousands of dollars)
Special Performance Sealantsa
(thousands of dollars)
Nonstructural Sealants (thousands of dollars)
Other (thousands of dollars)
321,259
1,421,143
809,408
na
1,362,905
1,421,643
na
na
8,770,223
7,470,711
9,932,941
ep
Total Sales Value (thousands of dollars)
a.
2007
om
Number of Producers
2002
20
09
Table 6
Special performance sealants include polysulfide, silicone, epoxy and urethane sealants.
U.S. Economic Census, Manufacturing Subject Series, U.S. Department of
Commerce, Bureau of the Census.
R
SOURCE:
pl
e
According to Census Bureau data, the value of adhesive and sealant shipments was $7.4 billion in 2002,
increasing to 9.9 billion in 2007 at an average annual rate of 5.9% since 2002.
m
Over the last few years urethane adhesives have shown the highest growth of the synthetic resins, while
cyanoacrylate sales have continued to fall as many applications using these products have moved to less
expensive labor markets.
Sa
Overall, sealants have seen greater value growth than adhesives, with nonstructural sealants showing the
greatest growth in value.
In the U.S., the size characteristics of adhesive and selants manufacturers is as follows, according to the
the 2007 U.S. Census of Manufacturing:
•
SRI CONSULTING
DECEMBER 2009
23
Table 7
Size Characteristics of U.S. Adhesives and Sealants
Manufacturers—2007
445
Number of
Establishments
Percent of
Total
1-19 Employees
317
54
20-99 Employees
208
36
60
10
om
100 or More Employees
Total
585
Total Employees
100%
21,794
U.S. Economic Census, Manufacturing
Subject Series, U.S. Department of
Commerce, Bureau of the Census.
or
t
fr
SOURCE:
20
09
Number of Companies
ep
As shown in the above table, the majority of adhesives and sealants establishments are small; they are
composed of nineteen or fewer employees. Only about 10% of the establishments have more than 100
employees.
R
Most major adhesives producers offer a variety of adhesive chemistries to selected market segments.
Although the range of end uses may be narrow, formulators often use several different resins to develop
all of the adhesives products required for the segment.
Table 8
pl
e
North American Suppliers of Reactive Adhesives to the Global Market—2009
Sa
m
Ashland Specialty Chemical Company
Dow Chemical U.S.A. (Rohm and Haas)
H.B. Fuller Company
Hexion
Huntsman
Illinois Tool Works
(includes Devcon, Permatex and
other subsidiaries)
Lord Corporation
RPM (including DAP, Tremco)
3M
a.
Cyanoacrylate
Epoxy
Modified
Acrylic
X
X
X
X
X
X
X
X
Xa
X
X
X
X
X
X
X
X
X
X
X
Anaerobic
X
Also supply acrylates to modified acrylic producers.
SOURCE:
SRI Consulting.
•
SRI CONSULTING
Polyurethane
Radiation
Curable
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
DECEMBER 2009
24
As the table reflects, North American–based global adhesives producers offer a wide variety of
chemistries. Nearly all of the major suppliers produce polyurethane adhesives because of their
formulation flexibility and utility in most applications. Epoxies offer superior strength and are also
supplied by most producers.
20
09
Radiation curable, followed by anaerobic and cyanoacrylates, are less frequently offered.
The situation is similar in the sealant market, where most producers offer more than one technology to the
market. Polyurethane and silicone technologies are dominant. Polysulfide sealants have been replaced by
polyurethane sealants in many applications; however, they retain dominant positions in window
manufacturing and aerospace applications.
Table 9
SOURCE:
Polysulfide
Polyurethane
Silicone
X
X
X
X
fr
X
X
X
X
or
t
ADCO
Dow Chemical U.S.A. (Rohm and Haas)
Dow Corning Corporation
Momentive
PPG Industries
RPM (including DAP, Euclid Chemical, Tremco)
3M
om
Global Suppliers of Sealants Based in North American—2009
X
X
X
X
SRI Consulting.
ep
In Western Europe, the adhesives and sealants market is also highly fragmented. The industry is
dominated by strong brands and broad product lines owned by global companies—Henkel, Bostik,
Huntsman Advanced Materials, and 3M.
pl
e
R
Specialty companies such as Ems-Grivory, Dow Automotive and Sika have established strong positions
in specialized markets that they are expanding by entering into joint ventures, such as that in 1997
between Ems-Chemie and H.B. Fuller—EFTEC, in the automotive sector, which was terminated in
2007—or by acquisitions such as that of Ciba’s automotive adhesives business by Gurit.
Sa
m
The major producers of adhesives and sealants in Western Europe are listed in Tables 10 and 11.
•
SRI CONSULTING
DECEMBER 2009
25
Table 10
Major Western European Suppliers of High-Performance Reactive Adhesives—2009
Modified
Acrylic
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
SRI Consulting.
Radiation
Curable
X
X
X
X
X
X
X
Fully owned by Ems-Chemie, Switzerland.
SOURCE:
Polyurethane
20
09
Epoxy
X
X
X
X
X
X
X
X
X
X
X
fr
a.
Cyanoacrylate
om
Bostik
Dow Automotive
Dunlop Adhesives
EFTECa
Evonik Degussa
H.B. Fuller
Henkel Corporation
Huntsman Advanced Materials Ltd.
Kömmerling Chemische Fabrik
Sika AG
3M
Vagnone-Boeri
Anaerobic
or
t
In 1997, Ems-Chemie and H.B. Fuller formed a 70/30 joint venture—EFTEC—serving the automotive
sector. Ten years later, H.B. Fuller sold its share for $80 million to Ems-Chemie, Switzerland.
Table 11
ep
Major Western European Suppliers of High Performance Sealants—2009
Polysulfide
Polyurethane
Silicone
X
X
X
X
X
X
X
m
pl
e
R
Bostik
Dow Corning
Formflex GmbH
Henkel Corporation
Hexion Specialty Chemicals, Inc
Hutchinson
Kömmerling Chemische Fabrik GmbH
PCI Augsburg GmbH (owned by BASF)
Rütgers Chemicals AG
Sika AG
SOURCE:
X
X
X
X
X
X
X
X
X
X
X
X
SRI Consulting.
Sa
Approximately 150-160 Japanese companies currently manufacture adhesives and/or sealants. This
number has remained nearly constant since 1987. The major Japanese producers of specialty adhesives
and sealants are shown in Tables 12 and 13.
•
SRI CONSULTING
DECEMBER 2009
26
Table 12
Major Japanese Producers of High-Performance Reactive Adhesives—2009a
X
(X)
X
X
X
(I)
X
(X)
X
(I)
X
X
X
(X)
X
Modified
Acrylic
Radiation
Curable
X
(X)
X
X
X
(I)
X
X
X
X
X
X
X
X
X
(X) indicates smaller market share or resale marketing for DIY.
Polyurethane
X
X
fr
a.
Epoxy
20
09
Aica Kogyo Co., Ltd.
Alteco Co., Ltd.
Cemedine Co., Ltd.
Denki Kagaku Kogyo K.K.
Henkel Japan Ltd. b
Hitachi Kasei Polymer Co., Ltd.
Konishi Co., Ltd.
Oshika Corporation
Sho-Bond Kagaku Co., Ltd.
Taoka Chemical Company, Ltd.
Three Bond Co., Ltd.
Tilement Corp.
Toagosei Co., Ltd.
Cyanoacrylate
om
Anaerobic
(I) indicates the products are imported from overseas plants.
Local production is the former plant of Nippon NSC, which was acquired by Henkel in 2008.
SOURCE:
SRI Consulting.
or
t
b.
ep
Most Japanese sealant suppliers offer a broad range of products to cover most end uses. Many of these
companies are also adhesives suppliers.
Table 13
pl
e
R
Major Japanese Producers of High Performance Sealants—2009a
Sa
m
Auto Chemical Industry Co., Ltd.
Bridgestone Corp.
Cemedine Co., Ltd.
Dow Corning Toray Silicone Co., Ltd.
Momentive Performance Materials Japan
Konishi Co., Ltd.
Shin-Etsu Chemical Company, Ltd.
Sika Japan (Sekaicho)
Sunrise MSI Corp.
Sunstar Engineering Inc.
Yokohama Rubber Co., Ltd.
a.
Polysulfide
Polyurethane
SiliconModified
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
(X) indicates smaller market share or outsourced production.
SOURCE:
SRI Consulting.
•
SRI CONSULTING
Silicone
(X)
X
X
(X)
X
(X)
(X)
(X)
(X)
DECEMBER 2009
27
Major producers of adhesives and sealants in Other Asia are listed below. It is believed that there are
more than 1,500 producers in China, and most of them are small. In China and Southeaast Asia, high
performance adhesives are generally produced by subsidiaries or affiliate companies of major foreign
companies in Japan, the Republic of Korea, Taiwan and other international companies.
20
09
Table 14
Major Other Asian Producers of High Performance Adhesives and Sealants—2009
Productsa
Company Name
China
Bostik Findly China Co., Ltd.
or
t
Changchun EFTEC Chemical Products Ltd.
Dongwan Dongjia Resins Factory
Dow Corning (Shanghai) Co., Ltd.
Evotite Adhesives Co., Ltd./
Tong Shen Enterprise Co., Ltd.
First Li-Bond (Wuxi) Co., Ltd.
Foshan Nanhai Bali Chemical Co., Ltd.
Fushun Geliahao Group
GE Toshiba Silicones Shanghai Co., Ltd.
Guangdong Guowang Fine Chemicals Co., Ltd.
Guangzhou ANTAS Chemical Co., Ltd.
Guangzhou Baiyun Chemical Industry Co., Ltd.
Guangzhou Victa Fine Chemicals Co., Ltd./
Shanghai Victa Adhesive Co., Ltd.
H.B. Fuller (China) Adhesives Ltd.
Hangzhou Zhijiang Silicone Co., Ltd.
Hengshui Jincheng Gongcheng Xiangsu Co., Ltd.
Henkel-Loctite (Yantai) Co., Ltd.
Huitian Adhesive Enterprise Co., Ltd.
PU hot melt, SB, others (EVA)
PU for footwear
Cyanoacrylate, silicone sealant
Silicone sealant
PU laminate
Silicone sealant
Silicone sealant
Packaging and footwear
ep
R
pl
e
m
Jialipu Adhesive & Ink Co., Ltd.
Jiangmen City Runhe Chemical Plant Co., Ltd.
Karmee (Foshan) Fine Chemical Co., Ltd.
Keyang Fine Chemical (Suzhou) Co., Ltd.
Kunshan AICA Kogyo Co., Ltd.
Luoyang Jiming Chemical Industry
Sa
Nagase Finechem (Wuxi) Co., Ltd.
Nanhai Nanguang Chemical Packing Co., Ltd.
Nan Pao Resins (China) Co., Ltd.;
Nan Pao Resins (FoShan) Co., Ltd.
Panyu Dongsung NSC Chemical Co., Ltd.
Shandong Beifang Xiandai Chemical
Industry Co., Ltd.
Shanghai Caoyang Building-Adhesive Plant
Alteco (Japan)
om
Beijing Beihua Fine Chemicals
Beijing Comens Chemical Co., Ltd.
Beijing Tonsan Adhesives Co., Ltd.
Cyanoacrylate and epoxy resin
adhesives repackaging
Cyanoacrylate
PU for laminate, automobile
PU, UV, anaerobic, silicone
sealant
PU for packaging, footwear,
construction
Automobile
PU WB, epoxy
Silicone sealant
Cyanoacrylate, epoxy
fr
Alteco Technology (Wuxi) Co., Ltd.
Invested/Parent Company
PU HM
Silicone sealant
Polysulfide sealant
UV, anaerobic, cyanoacrylate
PU, cyanoacrylate, anaerobic,
epoxy, silicone
PU laminate
Silicone sealant
Construction silicone sealant
WPI, epoxy for auto
Epoxy
PU TPU raw material for
footwear adhesive
Epoxy resin for electronic
adhesives
PU for footwear
PU WB
PU WB, SB for footwear
PU sealant
Epoxy
•
SRI CONSULTING
EFTEC
Great Eastern Resin (Taiwan)
Dow Corning
Tong Shen (Taiwan)
Hitachi Kasei Polymer (Japan)
Bali Group (Hong Kong)
GE Toshiba Silicone
Victa Technology
(Hong Kong)
Fuller
Henkel Technologies
Konishi (Japan)
Aica (Japan)
Nagase Finechem (Japan)
Nan Pao Resins (Taiwan)
Dongsung NSC (Republic of
Korea)
DECEMBER 2009
28
Table 14 (continued)
Productsa
Company Name
Shanghai Kangda Chemical Co., Ltd.
SGA (speaker), anaerobic,
cyanoacrylate, silicone
sealant, PU, epoxy
PU SB, sealant
Epoxy, UV
PU (SB, WB), anaerobic
WPI
WPI
Polysulfide sealant
Epoxy
Silicone sealant
Polysulfide sealant
PU laminate
Tianjin Yun’an Chemical Plant
Toagosei (Zuhai) Co., Ltd.
Weld Want Group Co., Ltd.
Wuxi Shengao Resin
Wuxi Wan Li Adhesive Materials Factory
Xiamen Jili Resin/Dongguan Jili Resin
Epoxy
Cyanoacrylate repackaging
Epoxy, silicone sealant
PU WB, PU HM
PU (HM, WB)
PU for footwear
or
t
fr
Epoxy, cyanoacrylate
ep
pl
e
India
R
Yokohama HAMATITE (Hangzhou) Co., Ltd.
Zhangjiang Oshika Chemical Industrial Co., Ltd.
Zhejiang Golden Roc (Jinpeng) Chemical Co., Ltd.
Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd.
Zhengzhou Zhongyuan Institute Applied Technology
m
Anabond Essex India (P) Ltd.
Anabond Ltd.
Anabond Taoka India Private Limited
DIC Coating India
Sa
Dow Corning India Private Ltd.
EFTEC Shroff (India) Ltd.
Rio India Ltd.
Rohm and Haas (India) Pvt. Ltd.
Nogawa Chemical (Japan)
Three Bond (Japan)
Aica (Japan)
Koyo Industrial (Japan)
om
Shanghai Nogawa Chemical Co., Ltd.
Shanghai Songjiang Threebond Chemicals Co., Ltd.
Shanghai Xinguang Chemical Plant
Shenyang AICA-HOPE Kogyo Co., Ltd.
Shenyang Koyo Industrial Co., Ltd.
Shenyang Lihang Sealed Material Co., Ltd.
Shenzhen No. 1 Fine Chemical Co., Ltd.
Sun June Sealant Factory Guangzhou China
Suzhou Nonmetal Mine Industry
Design Research Institute
Taizhou Henco Glue
Tex Year Chemistry Industry Technology
(Shenzhen) Co., Ltd.
Tianjin Cosmo Polyurethane (Suzhou) Co., Ltd.
20
09
China (continued)
PU for automobile sealant
WPI
Cyanoacrylate
Silicone sealant
Silicone and polysulfide sealant
PU for automobile sealant
Anaerobic, epoxy, urethane
Cyanoacrylate raw material
PU laminate
Tex Year (Taiwan)
Mitsui Chemicals
Polyurethanes (Japan)
Taiwan
Sun East Chemical (Taiwan)
Hwayuin Enterprise
(Hong Kong)
Yokohama Rubber (Japan)
Oshika (Japan)
Shin-Etsu Chemical (Japan)
Essex (Dow)
Taoka Chemical (Japan)
Dainippon Ink and Chemicals
(Japan)
Dow Corning
EFTEC
Silicone
Automobile
Epoxy
PU laminate
Dow Chemical
WPI
PU for footwear
WPI
WPI
Aica (Japan)
Alteco (Japan)
JV of Henkel
Koyo Industry (Japan)
Oshika (Japan)
Indonesia
P.T. AICA Indonesia
P.T. Alteco Chemical
P.T. Dongsung NSC
P.T. Koyolem Indonesia
P.T. Poly Oshika
•
SRI CONSULTING
DECEMBER 2009
29
Productsa
Company Name
Axia Korea Inc.
Dongbu Fine Chemicals Co., Ltd.
Dong Yang Silicone Co., Ltd.
SGA, epoxy, PU
Silicone
Dow Corning Korea Ltd.
Henkel Technologies (formerly Dongsung NSC)
Henkel Technologies Sealant Branch (formerly Lucky
Silicone)
Henkel Technologies Automotive Branch
KCC Corporation
Momentive Performance Materials Korea
Silicone
PU for footwear
Silicone sealants
Automobile
Sealant
Silicone
O-Kong Corporation
Epoxy
om
Momentive Performance
Materials
PU laminate
PU laminate
or
t
Cosmo Scientex (M) Sdn., Bhd.
Toyochem Malaysia Sdn. Bhd.
Singapore
Alteco Chemical Pte Ltd.
ep
Taiwan
pl
e
R
Cemedine Taiwan
Croslene Chemical Ind., Ltd.
Dow Corning Taiwan Inc.
Great Eastern Resins Industrial Co. Ltd.
Hwayuin Enterprise Co., Ltd.
Kuo Sen Enterprise Co., Ltd.
Nan Pao Resin Co., Ltd.
Shin-Etsu Silicone Taiwan Co., Ltd.
Sun East Chemical Co., Ltd.
Sunko Ink Co., Ltd.
Tai Tsang Co., Ltd.
Sa
m
Taiwan First Li-Bond Co., Ltd.
Tex Year Industries Inc.
OCI Corporation (Republic of
Korea)
Dow Corning
Henkel
Henkel
Henkel
fr
Malaysia
20
09
Korea, Republic of
Epoxy, PU
PU laminate
Silicone
PU WB (footwear), epoxy
PU for footwear
Epoxy
PU (WB, HM, SB)
Silicone
PU WB, PU HM
PU WB resin (raw material)
Epoxy, SGA, PU (moisture
cure), UV for DVD
Epoxy, others (EVA)
Cyanoacrylate, UV for DVD
Epoxy, silicone sealant
Mitsui Chemicals (Japan)
Toyo Ink (Japan)
Alteco (Japan)
Cemedine (Japan)
Mitsui Chemicals
Dow Corning
Hitachi Kasei Polymer (Japan)
Thailand
Asia Cemedine Company Co., Ltd.
Cemedine Thailand Co., Ltd.
Dongsung NSC (Thailand) Co., Ltd.
Dow Corning (Thailand) Limited
EFTEC (Thailand) Co., Ltd.
Momentive Performance Materials Thailand
Electric, architecture
Automobile adhesives
PU for footwear
Silicone
Automobile
Silicone
•
SRI CONSULTING
Cemedine (Japan)
Henkel-Cemedine
JV of Henkel
Dow Corning
EFTEC
Momentive Performance
Materials
DECEMBER 2009
30
Table 14 (concluded)
Productsa
Company Name
Shin-Etsu Silicones (Thailand) Limited
Sunstar Chemical (Thailand) Co., Ltd.
Three Bond Manufacturing Thailand Co., Ltd.
Silicone
PU and epoxy for automobile
Cyanoacrylate, UV, epoxy,
anaerobic
Tilement Thailand Co., Ltd.
Yokohama Rubber Thailand Co., Ltd.
PU sealant for automobile
Dongsung NSC Vietnam Co., Ltd.
Nan Pao Resin (Vietnam) Co., Ltd.
No-Tape Industrial Co., Ltd. (Repodexim Vietnam)
Yokohama Rubber (Japan)
Henkel Technologies
Nan Pao Resin (Taiwan)
No-Tape Industrial (Japan)
Abbreviations are as follows: PU, polyurethane; UV, UV-cure adhesives; WB, waterborne; SB, solventborne; HM, hot melt;
WPI, water-soluble polymer isocyanate; SGA, second-generation acrylic.
SRI Consulting.
or
t
SOURCE:
fr
a.
PU for footwear
PU for footwear
PU for footwear
Sunstar Chemical (Japan)
Three Bond (Japan)
om
Vietnam
20
09
Thailand (continued)
ep
In the adhesives and sealants industry worldwide, many adhesives suppliers tend to be small, serving only
limited geographic regions and/or markets. These small companies have been able to thrive because of the
following:
The manufacturing processes are not capital-intensive; companies with large corporate resources
do not have overwhelming advantages over small independent producers.
●
Most adhesives are produced in relatively small quantities for specific customers and applications.
Small companies can compete against larger ones by focusing on a narrow range of products or
limited end-use applications.
pl
e
R
●
Regional companies are often perceived as being more responsive by being able to produce and
deliver small customized shipments with little advance notice. Also, regional players often have
strong relationships with local manufacturers.
m
●
Sa
In some demanding applications, however, global companies offer a better solution for adhesives users.
Representative segments include aerospace and electronics, where a few companies are able to exert
strong leadership roles, often supported by above-average R&D budgets. These segments use small
volumes of adhesives that have high value, thus negating the cost of shipping to distant locations. Such
strength is enabled by
●
Exploiting Technology. Highly specialized aerospace and electronic adhesives are generally
produced by suppliers with global presence since product requirements are stringent, and volumes
are relatively small; high developmental costs can be justified only by serving the global market.
•
SRI CONSULTING
Following Customers. Research and development in the automotive industry sometimes requires
large investment and is being conducted increasingly in collaborative programs between suppliers
and automobile companies. Automakers often design parts in one region and plan assembly in
several regions, expecting that their suppliers will support them at every manufacturing location.
Following customers also occurs in the consumer and packaging segments, although the driver is
slightly different. Adhesives in these applications are lower in value but their reliable
performance is critical to maintaining the high line speeds of the production equipment. For this
reason, Procter & Gamble, for example, will maintain its relationships with North American
adhesives suppliers as it builds new consumer product units in the rapidly growing regions of
Asia and South America.
20
09
●
DECEMBER 2009
31
om
Many large chemical companies supply resins to the adhesives market; however, these companies are not
considered adhesives producers because most do not formulate finished adhesive products, although
many provide recommendations on how their products can be used in bonding applications.
fr
Some adhesives producers are back-integrated to resin production, such as Huntsman, producing epoxy
resins and formulating epoxy adhesives. A backward-integrated producer in sealants production is Dow
Corning. Dow Corning also supplies silicones to adhesives manufacturers such as DAP/RPM.
ep
or
t
Some large adhesives manufacturers operate small subsidiaries that can supply adhesives to highly
specialized industries. Examples include Henkel’s Ablestik brand, which targets the electronic adhesives
segment, and the H.B. Fuller/Ems-Chemie joint venture EFTEC, which was focused on the European
automotive adhesives market. After ten years, in 2007, H.B. Fuller sold its 30% share to Ems-Chemie. In
other examples, companies reorganize internally to focus on demanding end-use segments, such as the
new business units Dow Automotive and PPG Aerospace, which include adhesives or sealants as part of
their full product offering to the specific market segment.
GE Plastics’ acquisition of the adhesives and sealants business of Macklanburg-Duncan in March
2000. GE reorganized soon after the deal closed and integrated these products into its new,
broadened adhesives and sealants business unit under GE Silicones.
pl
e
●
R
There has been significant consolidation in the adhesives industry, although it remains more fragmented
and diverse than most other chemical and related industries. Recent examples include:
Henkel’s acquisition of the specialty polymer and adhesive business of Dexter Corporation. The
deal closed in 2000, increasing the company’s adhesives offering to the electronics and aerospace
segments.
m
●
Sika’s acquisition of Tivoli Klebstoff in 2000, adding reactive hot melt, pressure-sensitive and
dispersion adhesives for the automotive market to its product slate.
Sa
●
A few large mergers have also occurred in recent years. They have greatly expanded the acquiring
company’s position in the adhesives market and often require the new parent to restructure to
accommodate and integrate its new units. Such large deals include
●
The merger of TotalFina and Elf, which was completed in early 2000. This deal combined the
parent companies’ adhesives subsidiaries Bostik and AtoFindley into a single adhesives unit,
called Bostik Findley, which will remain a separate subsidiary within ATOFINA, the chemical
operations of the merged oil giant.
•
SRI CONSULTING
DECEMBER 2009
32
The merger of Neste and Dyno, creating Dynea International (formerly Neste Chemicals
International) in late 2000.
●
GE’s acquisition of the OSi Specialties silicone unit of Crompton in 2003, allowing GE to further
exploit the value chain of silicone sealants and other products through the use of OSi’s
proprietary silicone and silicon process technologies.
●
Henkel’s purchase of Sovereign Specialty Chemicals in 2004.
●
The sale of UCB to Cytec in 2004.
●
The formation of Hexion Specialty Chemicals in 2005 from the merger of Borden Chemical,
Resolution Performance Products and Resolution Specialty Performance Materials.
●
Henkel’s purchase of the adhesives business of National Starch and Chemicals in 2008.
●
Dow Chemical’s purchase of Rohm and Haas in 2009.
fr
om
20
09
●
or
t
This merger and acquisition activity has created large adhesives producers, as shown in Table 15. Many of
the midtier adhesives companies have been purchased by larger specialty chemical companies intent on
using these businesses as routes to higher-margin, higher-growth markets. H.B. Fuller is one major
producer that remains primarily in the adhesives business. The dominant businesses of other large
producers range from oil at Bostik’s parent Total SA, to detergents and chemicals at Henkel.
Table 15
ep
Top World Producers of Adhesives and Sealants—2008
Headquarters
Percent of
Total Sales
9.8
2.0
1.2
0.99
0.9a
0.6
0.5
0.4
47
100
89
4
1.6a
90
na
42.0
R
Company
Adhesives and
Sealants Sales
(billions of dollars)
m
pl
e
Henkel Corporation
Bostik
H.B. Fuller Company
3M
Dow/Rohm and Haas
Momentive
Hexion
Konishi
Sa
a.
Düsseldorf, Germany
Paris-La-Defense, France
St. Paul, Minnesota
St. Paul, Minnesota
Midland, Michigan
Albany, New York
Columbus, Ohio
Osaka, Japan
Estimated combined adhesives and sealants sales of Dow Chemical and Rohm and Haas
for 2008.
SOURCES:
SRI Consulting; company financial reports.
•
SRI CONSULTING
DECEMBER 2009
33
COMPANY PROFILES
Henkel Corporation
20
09
Henkel is a Germany-based chemical company with major activity in adhesives and sealants. The
company’s adhesives business sector is present on five continents and in more than 125 countries, with
production facilities in 52 countries. Henkel is structured in three business sectors with Adhesives
Technologies being Henkels’s most valuable sector.
The company is the leading market player in the global adhesives and sealants market. It is estimated that
Henkel holds 60% of the global adhesives market.
om
Organization
In 2007, Henkel Corporation reorganized its four business sectors into three by combining the Consumer
and Craftsmen Adhesives business sector with Henkel Technologies forming Adhesive Technologies.
ep
Product portfolio and integration
or
t
fr
The Adhesive Technologies business sector is active worldwide, supplying adhesives and sealants
systems; surface treatment products for industrial applications in the automotive, packaging, aircraft,
electronics, durable consumer goods and metal sectors, and for maintenanace, repair and overhaul
applications; adhesives and sealants for craftsmen and consumers and for applications in home, school,
and office.
pl
e
R
The activities of Henkel in adhesives started as long ago as the early 1920s, when Henkel decided to
produce the glues used in packaging of detergents in-house to ward off a possible shortage in delivery
from external suppliers. The first products were based on sulfite residues, dextrin, and corn starch, and
were directed to the industrial market. Since then Henkel has in parallel exploited the use of natural raw
materials and the rise of synthetic polymer chemistry to produce new adhesives. Through several
acquisitions, Henkel has consolidated its market position in the metalworking and building industries, in
vehicle construction, and in certain sectors of the electronics and medical industries. Henkel is currently
the largest and most versatile supplier of all types of adhesives.
Sa
m
The wide variety of adhesives marketed by Henkel ranges from naturally derived casein glues to
technologically sophisticated engineering glues, such as anaerobic adhesives. Specialty adhesives and
sealants marketed by Henkel are listed in the table below. Henkel also sells a large number of commoditytype adhesives.
•
SRI CONSULTING
DECEMBER 2009
34
Table 16
Specialty Adhesives and Sealants Marketed by Henkel
Application Field
Acrylates
Liquid to paste, two-component solvent-free
adhesives
Bonding of metals and plastics in the electronics
and cable industry
Anaerobics
One-component, liquid reactive adhesives
Low-, medium- or high-strength bonding of steel,
aluminum or nonferrous metals in the automotive
industry
Conductive Adhesives
Pastes, mainly epoxy or acrylate-based
adhesives
Electronics and microelectronics industry
Cyanoacrylates
One-component, liquid reactive adhesives
High-strength bonding of steel, aluminum,
plastics, elastomers, leather, wood for electronics
and cable, and footwear industry
Epoxy Adhesives
One- or two-component solvent-free, liquid to
paste adhesives
Flock Adhesives
Liquid, solvent-based PU adhesives, heat cure
by means of integrated cross-linking agent
Bonding of short polyamide flocks to EPDM
rubber in the automotive industry
MS Polymer Adhesives
One- and two-component viscous, moisturecurable adhesives based on silicon-modified
polypropylene glycol polymers
Elastic bonding suitable for all substrates
PU Adhesives
One- and two-component adhesives, solventfree, liquid to paste, room temperature cure
Bonding of sandwich elements in a variety of
industries (electronics and cable, automotive,
flexible packaging, footwear, transportation)
PU Dispersions
Emulsions of PU in water
fr
or
t
ep
R
Solid, cross-linking hot melts, solvent-free,
moisture cure
UV-Curing Adhesives
Automotive, wood and furniture, graphic arts
industry
Liquid, solvent-free reactive adhesives, based
mainly on acrylate monomers
Electronics and cable industry, flexible packaging
Company literature.
m
SOURCE:
High-strength joints of steel, aluminum, ceramics,
plastics, fiberglass-reinforced plastics
Bonding of high-quality materials for plastics,
leather, coated papers, film lamination, shoe
production
pl
e
PU Hot melts
20
09
Characteristics
om
Adhesives Group
Sa
The following table shows basic adhesive product groupings:
•
SRI CONSULTING
DECEMBER 2009
35
Table 17
Henkel Product Groups
Products
Wide range of adhesive and sealants for refurbishment and
home construction applications: wallpaper pastes; ceiling,
wall covering and tile adhesives; Sista sealants and Metylan
home decoration products; cyanoacrylates (Loctite); contact
adhesives; wood glues; glue sticks, glue and correction
products (Pritt); adhesive tapes
Building Adhesives (for professional
craftsmen)
For construction-related trades: roofing products: tiling;
humidity protection and thermal insulation products
(Ceresit); flooring adhesives (Thomsit) and polyurethane
foam fillers.
Packaging Consumer Goods and
Construction Adhesives
New brands through the acquisition of National Starch:
Technomelt adhesives and hot melt adhesives (Dispomelt).
Other adhesives include high-performance laminating
adhesives for the manufacture of composite films for food
packaging (Liofol), packaging and labeling adhesives
(Adhesin) and adhesives for the wood processing industry
(Dorus).
The product portfolio includes the Loctite range for
industrial maintenance, repair and overhaul, Teroson
sealants and industrial cleaners (P3).
or
t
Specialty Adhesives and Surface
Treatment (for automotive, aircraft and
household appliance industries)
20
09
Adhesives for Craftsmen and Consumers
(for private households, schools, offices,
DIY’s, professional trade people)
om
Adhesive
Technologies
Product Group
fr
Business Sector
SOURCE:
Gained importance through the merger of National Starch:
High-tech adhesives used for the manufacture of microchips
and printed circuit boards (Hysol and Ablestik).
ep
Electronics (for the electronic industry)
Company literature.
pl
e
R
The Henkel Group is one of the most versatile in the adhesives field. The company combines Henkel’s
traditional competence in standard industrial and professional craft applications with the competence
acquired through acquisitions in the high-tech sector and in structural engineering.
Sa
m
Henkel Corporation is a market-oriented company and this philosophy is reflected in the marketing
approach of the adhesives business, which is based on comprehensive marketing efforts and close
customer relationships. Henkel also holds technological leadership in engineering adhesives and invests a
considerable part of its income on further strengthening this position through R&D and through
acquisitions. In 2008 the company spent 429 million euros ($416 million) or 3.0% of total sales on R&D,
including restructuring charges of 52 million euros. Investment in R&D varies significantly among
departments, ranging from less than 2% for consumer products to 20% for electronic applications. The
biggest research facilities are in Germany and the United States. A new research facility opened in
Shanghai in 2007.
At the same time, Henkel has continued its policy of acquisitions and joint ventures to expand its
marketing and technology position as well as its geographical reach. In the Far East (China, Hong Kong,
Republic of Korea, Philippines, etc.) Henkel has made several acquisitions to give it a facility in virtually
every country in the Pacific region.
•
SRI CONSULTING
DECEMBER 2009
36
In 2006, Henkel acquired Alba Adesivos, São Paulo, Brazil from Hexion Specialty Chemicals.
Alba Adesivos is a leading Latin American producer of branded consumer and professional grade
adhesives.
●
In April 2006, Henkel acquired the Cimsec business from ICI, part of ICI Paints Europe. Cimsec
is used by professional tile layers and by consumers, and operates in Austria, Hungary, Czech
Republic, Slovakia, Croatia and Poland.
●
In November 2006, Henkel acquired the leading Taiwan-based solder shere manufacturer,
Accurus Scientific Company Ltd. Accurus enables Henkel to offer the full product circle
including advanced solder shere technology for the next-generation CSP and BGA devices and
specialty solder powder for fine-pitch applications.
●
At the beginning of 2008, Henkel sold Henkel Concorde S.A.S. and the entire water treatment
business to BK Giulini in Ludwigshafen, Germany in order to focus on the core businesses.
●
In April 2008, Henkel acquired the Adhesives and Electronic Materials businesses of the National
Starch & Chemical Company from Akzo Nobel.
●
At the end of 2008, Henkel sold its 29.5% stake in Ecolab Inc., St. Paul, Minnesota, United
States, in order to increase its cash amount for the intended acquisition of National Starch.
●
In May 2009, Henkel sold its operations involving the consumer adhesive brands Duck, Painter’s
Mate Green and Easy Liner in the United States and Canada to Shurtape Technologies, LLC of
Hickory, North Carolina, United States.
Financial performance
ep
or
t
fr
om
20
09
●
Sa
m
pl
e
R
The adhesives business sector, one of Henkel’s three business sectors, accounted for nearly 63% of sales
in 2008. Henkel Technologies sells adhesive products as well as other nonadhesive products for metals
and plastics finishing. Sales for the adhesives sector and Henkel Technologies for 2000-2008 with the
first three quarter of 2009 are shown in Table 18.
•
SRI CONSULTING
DECEMBER 2009
37
Table 18
Henkel Corporation Sales of Adhesives
Division Sales
Millions of Euros
Division EBIT
Millions of Euros
20
09
Millions of Dollars
Henkel
Technologies
Consumer and
Craftsmen
Adhesives
Henkel
Technologies
Consumer and
Craftsmen
Adhesives
Henkel
Technologies
2000
2001
2002
2003
2004
1,290
1,275
1,317
1,313
1,446
2,679
2,828
2,763
2,666
2,791
1,189
1,141
1,241
1,483
1,796
2,469
2,532
2,604
3,011
3,467
159
193
123
141
169
110
138
185
194
298
2005
2006
1,742
1,977
3,266
3,533
2,165
2,480
185
209
Adhesive Technologies
5,711
6,700
4,681
345
370
7,815
9,804
6,384
621
658
231
or
t
2007
2008
2009a
4,060
4,433
fr
om
Consumer and
Craftsmen
Adhesives
Division EBIT (continued)
Consumer and
Craftsmen
Adhesives
147
173
116
159
210
2005
2006
230
262
Consumer and
Craftsmen
Adhesives
Henkel
Technologies
Millions of
Euros
Millions of
Dollars
101
124
174
219
370
1.2
1.5
1.3
1.5
1.6
0.9
1.1
1.9
2.0
2.8
12,779
13,060
9,656
9,436
10,592
11,778
11,692
9,100
10,657
13,156
429
464
1.5
1.6
2.9
2.9
11,974
12,740
14,883
15,984
13,074
14,131
10,228
17,889
20,677
13,949
pl
e
m
Sa
2007
2008
2009a
a.
Total Henkel
Group Sales
Henkel
Technologies
R
2000
2001
2002
2003
2004
Division EBIT Percent of
Henkel Group Sales
ep
Millions of
Dollars
850
963
315
4.7
4.7
2.3
Data are the total of Q1 through Q3.
SOURCE:
Henkel financial reports.
•
SRI CONSULTING
DECEMBER 2009
38
20
09
After several years of aggressive acquisition activity, and achieving above-average growth rates, Henkel
has expanded its product groups comprising sealants and advanced, high-performance solutions for
chemical fixing and bonding, such as assembly adhesives. Henkel intends to further expand its businesses
in the growth regions outside Western Europe, emphasizing Eastern Europe, Asia, Latin America and the
Middle East. The Adhesive Technologies business sector of Henkel decreased organically by 13.3% as a
result of the difficult situation confronting major customer industries worldwide. For the fourth quarter,
Henkel expects a lower percentage decline than in recent quarters. It is unclear when and how strong the
upturn will show in the future.
Bostik Inc.
om
In 1996, the adhesives and sealants business of Elf Atochem’s subsidiary, CECA, merged with Findley
Adhesives Inc. (United States) and formed AtoFindley, followed by the acquisition in 1997 of Laporte’s
European adhesives and sealants business.
fr
The 2000 merger of the chemical and petrochemical activities of TotalFina and Elf Aquitaine to form
ATOFINA resulted in the combination of the business activities of two major adhesive companies—
Bostik, formerly part of Total, and AtoFindley, a member of the Elf Atochem group. Bostik Findley
changed its name to Bostik Inc. in October 2004.
ep
or
t
During 2005, Bostik acquired the following five adhesive companies: Cekomastik Kimya Sanayi, Turkey,
the second-largest Turkish sealant producer; Biscem, United Kingdom, a professional ceramic tiling
business (formerly a division of RMC from Cemex); Laybond, United Kingdom, from Close Brothers
Private Equity (CBPE), which has a major share in the United Kingdom in adhesives and sealants for
building activities (floor covering and roof waterproofing); AV Syntec, Australia, a leading Australian
brand in woodworking adhesives and coatings; and Global Brands, the Philippines, which is the leading
player in roofing sealants and product assembly adhesives in the Philippines. Global Brands was renamed
to Bostik Philippines.
pl
e
R
In 2006, sales increased by 15% compared to 2005, mainly because of several acquisitions: Bostik
acquired Sealocrete and Wetherby in the United Kingdom and Paso in Germany, strengthening its
position in the construction and distribution segments. Bostik furthermore acquired Pegaso in Mexico in
the industrial segement and the laminated adhesives activities of Dupont in Germany, and finally
purchased the minority shareholders’ shares of ASA in Australia.
m
In January 2007, Bostik acquired from Dupont de Nemours the adhesives business for the flexible
packaging market. It owns strong technologies supporting a leading position in this market.
Sa
In 2007, Bostik installed new capacity to produce tile powders in Sainville, France and in Sydney,
Australia; laminated products in Milwaukee, Wisconsin, United States, and in Helsingborg, Sweden; and
double-glazing in Leicester, United Kingdom.
In 2008, sales decreased by 6% (in euros) compared to 2007, but remained relatively stable at –1% at
constant exchange rates. Bostik’s strategy was to strengthen its position in the industrial market, which
has been less affected than the construction industry, and to continue its development in growing markets,
especially in the Asia Pacific region. New production units were commissioned in Zhuhai. China and
Sydney, Australia. Bostik has acquired Tekbau in Turkey.
•
SRI CONSULTING
DECEMBER 2009
39
Bostik is currently building a third production plant in Shanghai, China with a global final annual
capacity of 80 thousand metric tons in 2011. This plant will produce hot melt, polyurethane, polyester and
water-based adhesives for the nonwoven, transportation, flexible packaging and other industries.
20
09
With sales of 1,340 million euros ($1.961 billion), Bostik was the fourth-largest producer in 2008.
Bostik has 48 manufacturing sites and sixteen research centers around the globe and has sales offices in
39 countries. Bostik has a presence in 50 countries.
Bostik’s chemistry portfolio focuses on polyurethane, polyamide, polyester adhesives, styrenic rubber,
ethylene–vinyl acetate hot melt and silyl-modified polymer adhesives.
om
The breakdown of business by region in 2008 shows Europe with a 59% share—mainly Germany, France
and the United Kingdom; Americas with a 25% share—mainly the United States; and Asia Pacific with
16% share. Bostik has a strong presence in Western Europe, the United States and Australia. It has a
growing presence in Eastern Europe, Asia and Africa.
fr
Bostik’s fastest growing markets are in reactive adhesives based on epoxies, polyurethanes and modified
silicones, which are used in industrial bonding applications.
or
t
Organization
ep
The organization is divided into three geographical regions (Americas, Europe and Asia Pacific), three
global functions (finance, supply and corporate planning), one global business unit (nonwovens) and one
global function (industrial adhesives).
Sa
m
pl
e
R
Bostik’s activities serve three main markets—Industry (54% in 2008), Construction (32%), and
Consumer (14%). The customers served as well as the main products of the divisions are listed in the
table below.
•
SRI CONSULTING
DECEMBER 2009
40
Table 19
Business Areas of Bostik
Business Area
Main Products
Customers
Automotive manufacturers and
subcontractors, car aftermarket
distributors and industrial distribution.
Packaging: Manufacturing, sealing and labeling of packaging:
Case and carton sealing, film-to-film lamination, heat-seals
and cold-seals; pressure-sensitive tapes and labels.
Packaging industry, food and
detergents, film and foil converters,
pressure-sensitive stock converters.
Hygiene: Manufacture of disposable hygiene products:
Napkins and diapers (baby care, feminine care, and adult
incontinence), tissues and towels (toilet roll, kitchen roll, and
wipes).
Consumer product industries.
Assembly: Woodworking (laminated timber, wood panel
laminates and furniture), textiles and leather (foam-to-fabric
bonding, fabric laminating, hooks-and-loops fasteners
manufacturing, and footwear and leather goods), electronics
(connectors, low pressure molding, potting, under-the-hood
electronics, flexible laminating, flexible printed board and
cable wrap), and insulating glass sealants.
General industries.
Construction
Construction and decoration: Floor underlayment (floor
leveling compounds, primers and admixtures), floor covering
adhesives (vinyl and carpet, parquet flooring, ceramic tiles),
wall covering adhesives (wallpaper, glass fabric, vinyl and
textile fabrics, ceramic tiles), waterproofing and building
chemicals, and industrial and sports flooring.
Builders and contractors, builder
merchant, and multiple distribution
specialists.
Consumer
Do-it-yourself, stationery (office supplies): Assembly and
joinery (grab adhesives, wood glues), repair (contact
adhesives, epoxy, cyanoacrylics, SMP), renovation and
decoration adhesives (wall and floor coverings), and sealing
and waterproofing.
Hardware chains and specialized
dealers.
pl
e
R
ep
or
t
fr
om
20
09
Automotive: Bonding and sealing of transportation
components: Elastics bonding and sealing of body panels,
direct glazing, interior trim, dashboards, door modules,
headliners, filters, textiles, electronics, windscreen adhesives
and bodywork sealants.
Industry
SOURCE:
Company literature.
m
Sa
The company produces most types of adhesives and sealants, with particular emphasis on hot melt and
water-based adhesives reactive chemistry, powders and solvent based. It serves packaging, assembly,
industrial, nonwoven, automotive, construction and distribution, and consumer do-it-yourself segments.
Bostik has the second highest share globally in building applications, such as tiling, flooring,
waterproofing, renovation and construction and decoration. Bostik has the highest share in France and
strong positions in other European countries’ consumer markets. Bostik is the fourth biggest market
player worldwide in industry applications such as flexible and rigid packaging, assembly, tapes and
labels, automotive, marine and wood.
•
SRI CONSULTING
DECEMBER 2009
41
In polyurethanes, Bostik produces adhesives used in the construction of sandwich panels and in flexible
packaging applications. The company produces silicone sealants in Europe, and silicon-modified
polyethers in Europe and the United States.
20
09
Bostik is considered the global leader in hot melt pressure-sensitive adhesives for nonwoven hygiene
products such as diapers, with 80 billion diapers per year produced, and is also strong in adhesives for
packaging, woodworking, and tape and labels. Bostik is also a leader in SMP (silyl-modified polyethers)
technology for transportation and marine applications. The SMP products target polyurethane sealants;
SMP is more expensive but also more durable and does not require primer for windshield applications.
om
The parent company Arkema (formerly known as ATOFINA) is a major producer of raw materials for
adhesives and sealants including vinyl acetates, acrylate derivatives, polybutadiene, and resins and
solvents, providing vertical integration. The adhesives product line includes
Hot melt adhesives—linear saturated polyesters, polyamides (both dimer acid and nylon types),
compounded polyolefin and EVA copolymers, and formulated block copolymers
●
Liquid adhesives—polymer solutions such as polyester, one- and two-component polyurethane
and acrylics; waterborne systems (natural rubber latex, chloroprene, acrylics, polyurethanes,
polyvinyl acetate and vinyl acetate–ethylene) and rubber-based solutions
●
Film adhesives—high-performance, solvent-free thin layers of pressure-sensitive or thermoplastic
or thermosetting heat-activated adhesives
●
Web adhesives—based on polyester, polyamide, polyurethane and polyolefins
●
Powder adhesives in a variety of polymer types
or
t
ep
SUPERGRIP, a polyurethane or reactive hot melt, warm-applied, solvent-free, 100%-solids,
moisture-curing adhesive
pl
e
●
Copolyester resins (VITEL ) to be blended with other polymers to solve difficult adhesion
problems
R
●
fr
●
Self-leveling grouts
●
Epoxy adhesives for the DIY market, analogous to Araldite products, which Bostik distributes
exclusively for Huntsman Advanced Materials in the United Kingdom
m
●
Sa
The sealants product line includes
●
One-component 100%-solids hot melt butyl sealants
●
Two-component polyurethane sealants
●
One-component polyisobutylene sealants
•
SRI CONSULTING
DECEMBER 2009
42
Bostik is also a custom designer of adhesives, designing the products to fit the client’s individual needs.
The company’s technical applications department evaluates and designs the product of choice by
analyzing the customer’s operation and processing requirements.
20
09
Bostik has developed an expertise in block copolymer technology, which it has used to develop highperformance pressure-sensitive adhesives used in product assembly applications (e.g., automotive trim
and specialty packaging).
New products include
Polyurethane adhesive as new sealant for liquified natural gas tankers. It is new to the marine
shipping sector and provides flexibility and durability down to –160°C, the temperature of
liquified gas. For safety reasons, liquified natural gas is transported at very low temeprature and
atmospheric pressure. Bonding the tanker’s secondary containment membranes therefore requires
an absolutely perfect seal.
●
A 100%-solids hot melt adhesive for flexible lamination in food packaging which substitutes
reactive polyurethane and water-based adhesives. Drying is no longer needed, which can save
energy, reduce emissions, and increase productivity. The customer has reduced inventory because
there is no need for storage for final curing.
●
Adhesives for photovoltaic equipment provide outstanding aging resistance to ensure long term
protection of the silicon layers.
●
Bostik offers a range of environmentally friendly, high performance technologies which enable
wind turbine manufacturers to reduce material and assembly costs, increase production rates and
improve performance and long term reliability.
●
Bostik has developed water-based adhesives to phase out urea-formaldehyde resins, which have
been used to bond the honeycomb network between two layers for insulation and partition wall
panels.
●
Bostic’s VOC-free semistructural adhesives were selected for the first train manufactured in the
United States with panels and glass assembled by bonding without any mechanical fastening.
These adhesives have an excellence performance and do not require surface preparation with
solvent treatment before bonding.
pl
e
R
ep
or
t
fr
om
●
New hot melt polyurethane adhesive for textile lamination in Asia eliminates large amounts of
methylene chloride, while increasing the production line speed by a factor of six, because the new
adhesive cures at room temperature.
Sa
m
●
Financial results for Bostik are consolidated within the financial report of the parent Total group. In 2008,
sales are listed at 1,340 million euros ($1.961 billion).
In its market approach, Bostik will continue to respond to market needs with sustainable innovative
solutions. In the transportation market, which continues to look for alternatives to reduce VOCs, eliminate
hazardous materials, decrease vehicle weights and adhere hard-to-bond substrates, Bostik is offering hot
•
SRI CONSULTING
DECEMBER 2009
43
melt and waterborne adhesives in all forms that drastically reduce or eliminate VOCs. These technologies
also contain little or no free isocyanate, which makes them much easier to work with on the assembly
floor.
20
09
The company focus will continue to be the development of novel adhesives. Exclusive development
agreements with suppliers will allow the company to have access to new raw material polymers with new
adhesion properties.
om
Bostik will also continue to contribute its technology know-how in reactive hot melt adhesives based on
epoxies and polyurethanes. Anticipated future developments will be toward reactive, one-component
systems, which cure with air moisture; new adhesive polymer chemistry in exclusive collaboration
agreements with polymer manufacturers; and adhesives based on amorphous polyolefins, which could
help reduce adhesives prices.
fr
Bostik has also responded to environmental concern about the use of solvents in adhesives by investing in
expanded capacity at Middleton, Massachusetts, for its 100%-solids, solvent-free Purbinder™. This line
of adhesives is made with a novel, dual polyester and is recommended for such applications as cast
polypropylene laminated with oriented polypropylene and polyester. Other flexible converting
applications for these low-viscosity adhesives include polyester film–to–aluminum foil and laminates
made with metallized films.
or
t
Bostik’s strategy also focuses on developing new applications such as polyamide web adhesives, which
are starting to replace solvent-based polyol and isocyanate adhesives.
ep
H.B. Fuller
R
H.B. Fuller is based in the United States and has operations in 33 countries. Global adhesives and sealants
sales represented about 89% of the company’s 2008 revenues of $1.4 billion. More than 65% of its
business is outside North America, up from 54% in 2004 and 40% in 2001. The company has undergone
significant restructurings since the late 1990s and has emerged as a leaner and more focused organization.
pl
e
Organization
m
In the early 2000s, Fuller closed 50% of manufacturing, reduced headcount by 25% from 6,000 to 4,500
and reduced its product line from 8,000 products to 3,000 products. By year-end 2008, headcount had
been further reduced to about 3,100. The company’s core business is adhesives and is primarily organized
by geographic region: North America, Europe, Latin America and Asia Pacific.
Sa
Fuller offers a broad range of adhesive products for most end uses from naturally derived to synthetic
polymers. Its portfolio includes thermoplastic and thermoset products that are available in hot melt,
waterborne, and solventborne forms. Reactive chemical types include polyurethanes, one- and twocomponent epoxies, polysulfides and modified acrylics. Fuller also offers consumer caulks and sealants.
•
SRI CONSULTING
DECEMBER 2009
44
Assembly
●
Packaging
●
Converting
●
Nonwoven
●
Footwear
●
Construction
●
Insulating Glass
●
Consumer
om
●
20
09
H.B. Fuller supplies adhesives and sealants to the following customer segments:
Fuller has been actively pursuing acquisitions to add to its product mix and geographic presence. The
company has purchased several businesses in recent years, and has also divested a few nonadhesive
businesses.
fr
Table 20
Recent Acquisitions and Divestitures by H.B. Fuller
Acquisitions
Egyptian hot melt and specialty waterbased adhesives manufacturer, Egymelt
2007
--
2006
Roanoke Companies Group, grouts and
mortars
pl
e
R
Henkel’s insulating glass sealant business
Business
Total Charge
Automotive joint venture EMS CHEMIE
Holding AG, Switzerland
$80 million
Powder coatings business, sold to Valspar
Corporation
na
4.0 million
--
2006
2004
Total Charge
ep
2008
or
t
Business
Divestitures
na
$270 million
Probos S.A., adhesives and resins
na
Autotek, 48% ownership j.v., bonding,
sealing and coating
na
Specialty Group Asset Purchases
$5.4 million
2000
Adhesives business of Childers Products
na
Ecuador, liquid paint
$3.4 million
1998
Adhesive assets of Croda International
in New Zealand and Australia
Peterson Chemicals adhesives
UK-based Industrial Adhesives Limited
$92.4 million
North America, hot melt glue gun/stick
Europe, wax
New Zealand, powder coatings
$18 million
1997
30% of European and 38% of Asian
business of EMS-Chemie to form
EFTEC
$9.6 million
Europe, construction products
$1.1 million
2001
Sa
m
2000
SOURCE:
Company literature.
•
SRI CONSULTING
DECEMBER 2009
45
Fuller markets its products through a direct sales force and a few independent distributors.
20
09
As part of its restructuring efforts, the company reorganized its R&D organization to focus on more
strategic product development across product lines rather than on specific customer needs as it has
reduced the breadth of its product line. The company has launched new adhesive products since 1999 that
reflect this change in focus; a warm-melt matrix adhesive for windows, a new duo sealant for moisture
resistance in windows and a clear labeling hot melt adhesive for bottles addressing emerging requirements
in the packaging market. R&D spending declined from $17.9 million in 2002 and 2003 to $16.5 million
in 2008.
fr
om
H.B. Fuller’s revenue growth has been flat since 2004; however, its profitability increased over this
period with the exception of 2008. H.B. Fuller’s divestitures, while reducing sales revenue, have
improved profitability. In 2008, the gross margin slipped to 26% from nearly 30% in 2007 as raw material
cost increases exceeded the pace of the company’s price increases to its customers. The following table
shows sales and income since 1995:
Table 21
H.B. Fuller Sales and Incomea
31.2b
45.4b
40.3b
16.0b
44.1b
2.5
3.6
3.1
1.2
3.2
1,352.6
1,274.0
1,256.2
1,287.3
1,409.6
49.2b
44.4b
28.2b
38.6b
55.7
3.6
3.5
2.2
3.0
4.0
pl
e
R
2000
2001
2002
2003
2004
Sa
m
2005
2006
2007
2008
1,330
1,386
1,400
1,392
78.4
109.5
142.8
109.9
a.
Fiscal year ends November 30.
b.
Expressed as “Net Income” for 1995-2003.
SOURCE:
Income as
Percent of Sales
1,243.8
1,275.7
1,306.8
1,347.2
1,364.5
ep
1995
1996
1997
1998
1999
Operating Income
or
t
Net Sales Revenue
5.9
7.9
10.2
7.9
Company financial reports.
H.B. Fuller’s organic growth was negative from 2006 through 2008, while the pace of acquisitions has
slowed, particularly in 2007 and 2008.
•
SRI CONSULTING
DECEMBER 2009
46
3M
20
09
Minnesota Mining and Manufacturing (3M) is a $25 billion diversified technology company with leading
products for health care, electronics, industrial, consumer and office, and other markets. The company is
distinguished by a high level of R&D spending leading to the commercialization of innovative products
that typically are retained in the portfolio until growth prospects indicate life cycle maturation. 3M’s
adhesive and sealant sales were estimated at over $990 million in 2008.
Organization
om
As of 2008, 3M had 79,000 employees in more than forty business units, organized in six business
segments—Industrial and Transportation; Health Care; Safety, Security and Protection Services;
Consumer and Office; Display and Graphics; and Electro and Communications. These segments have
worldwide responsibility for virtually all of the company’s product lines. Headquartered at St. Paul,
Minnesota, the company has operations in more than sixty countries and operations in 29 U.S. states.
fr
or
t
3M’s adhesives and sealants are shared across different market segments as part of various branded
products created for specific end uses. Adhesive products and products containing adhesives are produced
in most of the segments; however, adhesive tape is a dominant commodity and specialty item in the
Consumer and Office, Industrial and Transportation, and Health Care segments. The following table
describes some of the major adhesive products and products containing adhesives sold in 3M’s business
segments:
ep
Table 22
3M Adhesive Products by Segment
R
Business Segment
pl
e
Consumer and Office
Major Adhesive Products
Adhesive tapes, adhesive note products, contact adhesives,
adhesive labels
Adhesive tapes, water-dispersed sprayable contact adhesives,
pressure-sensitive acrylic adhesives, neoprene rubber
adhesives, hot melt adhesives
Display and Graphics
--
m
Industrial and Transportation
Adhesive closures for disposable diapers, wound closure tapes
and adhesives, UV-cured dental adhesives
Electro and Communications
Electrical, electronic and shielding tapes, adhesive labels
Safety and Protection Services
Reflective adhesive materials, highway marking tapes
Sa
Health Care
SOURCE:
Company reports and product literature.
•
SRI CONSULTING
DECEMBER 2009
47
Developments, acquisitions and divestitures
20
09
While 3M focuses on retaining growing and high-margin items in its product portfolio, it occasionally
divests product lines that no longer meet its financial performance requirements. 3M also acquires
companies and products that provide a broader innovative product offering. In early 2007 3M acquired
the Rite-Lok™ product line from Chemence Inc. including anaerobic adhesives for thread locking as well
as thread sealants and cyanoacrylate adhesives.
Recent sales and income for 3M are shown below.
om
Table 23
3M Sales and Income
Operating Income
Income as
Percent of Sales
1998
1999
15,021
15,659
2,532
2,856
16.9
18.2
2000
2001
2002
2003
2004
16,724
16,079
16,332
18,232
20,011
2005
2006
2007
2008
21,167
22,923
24,462
25,269
fr
Net Sales
18.4
17.3
18.7
20.4
22.9
5,009
5,696
6,193
5,218
23.7
24.8
25.3
20.6
ep
or
t
3,081
2,777
3,046
3,713
4,578
R
SOURCE:
Sa
m
pl
e
In 2001, the company emphasized indirect cost controls to boost profit margins while sales declined
during a generally slowing global economy. Gross margins ramped up impressively from 2002 through
2007 as pricing power was demonstrated with some of the strongest brands in the business. Gross margins
were challenged in 2008 as raw material price increases made frequent price increases necessary in order
to maintain margins; however, frequent price increases were difficult to implement and the margin
suffered as shown in the table above. 3M spent over $1.4 billion on R&D in 2008, representing 5.5% of
sales revenue, down from 5.7% in 2005 and 6.6% in 2000.
Dow Chemical/ Rohm and Haas Company
Dow Chemical successfully completed its acquisition of Rohm and Haas in early 2009, significantly
increasing its position in the adhesives industry. This deal combined Dow’s leading latex business and
epoxy resin business with Rohm and Haas’ acrylics raw material position in the tape and label market and
polyurethane-based adhesives. The adhesives and sealants businesses combined from Rohm and Haas and
Dow had over $900 million in adhesive and sealant sales revenue worldwide in 2008. However, these
combined sales would have contributed only about 1.6% of Dow Chemical’s and Rohm and Haas’
combined 2008 sales revenue.
•
SRI CONSULTING
DECEMBER 2009
48
Organization
20
09
Dow’s sales come from seven operating segments: performance plastics, performance chemicals,
agricultural sciences, basic plastics, basic chemicals, hydrocarbons and energy, and unallocated and other.
In 2008, Dow’s sales of adhesives and sealants were reported in Dow’s performance chemicals operating
segment of which Building Solutions, Dow Automotive and Dow Latex were large subsegments. Dow
Latex provides a broad line of styrene-butadiene-based products for paper and paper board applications as
well as carpet and artificial turf backings. Dow decided to exit automotive sealants, under Dow
Automotive in North America, Asia Pacific and Latin America by midyear 2009 and in Europe in the
fourth quarter of 2008.
om
The adhesives and sealants business of the acquired Rohm and Haas company has served three market
segments—packaging and converting, pressure sensitive, and construction and transportation. Major
product categories include acrylic, urethane, styrenic acrylic and vinyl acetate.
or
t
fr
Prior to its acquisition of Rohm and Haas, Dow was a large supplier of latex and epoxy resins, but did not
have as broad a portfolio of adhesives and sealant products as Rohm and Haas. The newly acquired Rohm
and Haas had been a world leader in acrylic technology and produced a large variety of acrylate
monomers, acrylic polymers and latex products. The company has directed much of this expertise toward
coatings markets, but has also developed a strong position in the pressure-sensitive adhesives market
based on acrylics as well as polyurethane adhesives as water-based dispersions, solvent-based, hot melt,
and 100% solids—to customers in construction, packaging, transportation, and industrial markets.
pl
e
R
ep
The new Rohm and Haas portion of Dow has adhesives manufacturing facilities throughout the world. All
of the products in the Adhesives and Sealants group under Rohm and Haas prior to Dow’s acquisition
shared supply chain and infrastructure support, helping keep costs down by combining raw material
purchases and fully utilizing its production units. Rohm and Haas used its core technology to target seven
markets—construction, industrial laminating, packaging and converting, pressure-sensitive adhesives,
transportation, textile lamination and health care.
Sa
m
Dow does not have annual financial results for the adhesives and sealants business in the combined
Dow/Rohm and Haas entity. The recent, separate results of both firms are shown below.
•
SRI CONSULTING
DECEMBER 2009
49
Table 24
Rohm and Haas Sales and Earnings
Adhesives and
Sealants Segment
Sales Revenue
(millions of
dollars)
Adhesives and
Sealants Segment
Earnings
(millions of
dollars)
Adhesives and
Sealants
Segment Net
Profit Margin
6,879
5,666
5,727
6,421
7,300
7,994
8,230
8,897
9,575
354
395
(570)
280
497
638
840
963
1,040
5.2
7.0
-4.4
6.8
8.0
10.2
10.8
10.9
704
661
592
632
693
727
1,776a
1,826a
1,807a
23
(61)
(3)
9
37
19
na
na
na
3.3
--1.4
5.3
2.6
----
20
09
Total Net
Profit
Margin
(percent)
Packaging and building materials, including adhesives and sealants.
SOURCE:
fr
a.
Total Net
Earnings
(millions of
dollars)
om
2000
2001
2002
2003
2004
2005
2006
2007
2008
Total
Net Sales
(millions of
dollars)
or
t
In 2008 Rohm and Haas was a $9.6 billion specialty chemical company with strength in several end-use
markets. As can be seen above, for most of the time period shown, the adhesives and sealants segment of
Rohm and Haas performed less well than the overall company with a significantly lower profit margin.
ep
Recent financial results for the Dow Chemical company are as follows:
Table 25
Dow Chemical Sales and Earnings
R
Net Sales
Sa
m
pl
e
2000
2001
2002
2003
2004
2005
2006
2007
2008
SOURCE:
Net Income
29,798
28,075
27,780
32,632
40,161
46,307
49,124
53,513
57,514
1,675
(385)
(338)
1,730
2,797
4,515
3,724
2,887
579
Income as
Percent of Sales
5.6
--5.3
7.0
9.8
7.6
5.4
1.0
Dow’s financial reporting does not break out adhesives and sealants results. In 2008 Dow Chemical was
adversely impacted by raw material prices as they rose faster than the company was able to pass on price
increases to its customers and maintain its profit margin.
•
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DECEMBER 2009
50
Momentive Performance Materials
In late 2006, General Electric sold its Advanced Materials division containing its sealants and adhesives
business to the private equity firm, Apollo Management LP. The business was in turn renamed
Momentive Performance Materials.
20
09
Momentive’s adhesive and sealant sales revenues were estimated at about $600 million in 2008.
om
Momentive supplies over sixty branded, silicone-based sealants, primarily for professional, but also for
do-it-yourself consumers for applications in building construction, as well as general repair and
maintenance. Monentive is a vertically integrated silicone-based adhesive and sealant producer with six
manufacturing and formulation plants in Canada, India, Italy, the Netherlands, the United Kingdom and
the United States.
Acoustical sealant
●
Coating
●
Firestop and flame retardant
●
Insulating glass sealant
●
Primer
●
Structural sealant
●
Water repellent
●
Window bedding
pl
e
R
ep
●
or
t
fr
Momentive’s silicone adhesive and sealant applications include
●
Window glazing
Sa
m
Momentive supplies the finished GE sealant and adhesive brand adding value through the full chain of
activities from adhesive and sealant production and formulation through the final packaged and branded
retail product.
Momentive’s financial performance is not reported; it is not a publicly traded company.
•
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DECEMBER 2009
51
Hexion Specialty Chemicals, Inc.
om
20
09
Hexion has been involved in some high profile mergers and acquisitions in recent years. At its birth, in
mid-2005, Borden Chemical, Inc.; Resolution Performance Products LLC (RPP); and Resolution
Specialty Materials LLC (RSM) merged (together with Bakelite AG, which Borden Chemical had
acquired) to form Hexion Specialty Chemicals, Inc. Hexion Specialty Chemicals is in turn owned by an
affiliate of the private investment firm Apollo Management, L.P. In late 2005, Hexion acquired the ink
and adhesives resins business of Akzo Nobel. In early 2006, Hexion acquired the decorative coatings and
adhesives business of Rhodia Group. In mid-2007, Hexion, agreed to buy Huntsman Corporation for $6.5
billion but the deal collapsed when the banks that were expected to finance the deal backed away. In late
2007 Hexion completed the purchase of the German forest products business of Arkema, including
formaldehyde and formaldehyde-based resins. In December 2008, Apollo and Huntsman reached a $1
billion settlement in Huntsman’s favor.
fr
Hexion’s major products include formaldehyde, epoxy and phenolic resins, molding compounds, coating
resins, acrylics, alkyds, polyester resins, versatic acids, ink resins and other specialty products and
formulations. Applications include bonding, binding and coatings in market segments including
construction, transportation, electronics, printing, oil field, foundry, furniture, paints and engineered
wood.
or
t
The major adhesives portion of Hexion’s business came from Borden Chemical and gave Hexion a
leading position in industrial resins and adhesives, formaldehyde and specialty materials such as UVcurable coatings. Hexion’s adhesive sales were estimated at more than $500 million in 2008.
ep
Organization
pl
e
R
Hexion’s business is organized into four segments—Epoxy and Phenolic Resins, Formaldehyde and
Forest Product Resins, Coatings and Inks and Performance Products. Adhesives-related businesses seem
to be in each of the segments except Performance Products. Hexion’s headquarters is in Columbus, Ohio.
With 7,000 employees, Hexion has over 100 manufacturing and distribution sites in the Americas, Europe
and Asia Pacific.
Sa
m
The following table shows the major products of Hexion’s segments:
•
SRI CONSULTING
DECEMBER 2009
52
Table 26
Hexion Products by Segment
Segment
Products
Epoxy resins and intermediates, composite resins, molding
compounds, versatic acids and derivatives, phenolic specialty
resins and epoxy coating resins
Formaldehyde and Forest Products Resins
Forest products resins and formaldehyde applications
Coatings and Inks
Polyester resins, alkyd resins, vinylic resins and ink resins and
additives
Performance Products
Phenolic encapsulated substrates for oil field and foundry
applications
om
SOURCE:
20
09
Epoxy and Phenolic Resins
Company annual reports.
or
t
fr
Under restructuring the product portfolio has become narrower as well as deeper. The primary raw
materials used by the company are methanol, phenol and urea, generally available from numerous sources
in sufficient quantities, but subject to price fluctuation. The company has also become more focused on
direct sales to industrial customers, retaining more value in sales transactions.
ep
The recent acquisitions prevent the comparison of year-to-year financial information as nonrecurring
events impact the results of each year shown below.
R
Table 27
Hexion Sales and Income
2004
2005
2006
2007
2008
SOURCE:
Operating Income
2,019
4,442
5,205
5,810
6,093
9
208
286
302
(893)
Income as
Percent of Sales
0.4
4.7
5.5
5.2
--
Company reports.
Sa
m
pl
e
Sales to Unaffiliated
Customers
As Hexion’s financial results show, the company improved results in 2005 and 2006, but significantly
declined in 2008.
Konishi
Konishi is the largest adhesive and sealant company based in Japan.
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DECEMBER 2009
53
Organization
20
09
Konishi’s major business is adhesives and sealants. It has the following divisions: chemicals including
industrial chemicals, synthetic resins, and materials for electronics; adhesives including adhesives for
industrial and home use and tape products for industry; sealing; wax and cleaning equipment; and other
including real estate and paint. Konishi has a strong distribution network for consumer adhesives, it has a
contract with Toagosei to distribute Toagosei’s cyanoacrylate adhesives sold under the brand name Aron
Alfa. The domestic plants of Konishi are located at Urawa, Saitama Prefecture; Kouga, Shiga Prefecture;
and Ami, Tochigi Prefecture. Affiliated companies in Konishi’s adhesive division include Sunrise MSI in
Japan (architecture sealants and automobile adhesives) and Keyang Fine Chemical (Suzhou) in China
(epoxy adhesives for automobiles and water-soluble polymer isocyanate adhesives for laminated lumber).
om
fr
Major product lines of high performance products include epoxy adhesives for construction, nonsolvent
polyurethane moisture-curable adhesives for architecture, and various architecture sealants. New products
include (1) silyl-terminated polyurethane elastic adhesives in household/DIY adhesives and (2) onepackage ambient-curable “hard-type” epoxy adhesives, using ketime deblocking cross-linking technology.
or
t
The cost structure of Konishi Co., Ltd. is shown in Table 28, with actual sales values normalized to 100.
Table 28
ep
Konishi Revenue and Profit—2008a
(percent)
R
Revenues
Cost of Salesb
Selling, General, and Administration
pl
e
Gross Profit
1.7%
m
Operating Income (before taxes)
Sa
100
86.2
12.1
1.7%
a.
Fiscal year April 2008 to March 2009. Data are on a
consolidated basis.
b.
Includes R&D of 1.6%.
SOURCE:
Company financial reports to the Ministry
of Finance.
Consolidated sales of its “Bond” division is estimated as 43.1 billion yen ($0.4 billion) in fiscal year
ended March 2009, equaling 42% of total sales of Konishi. In geographic terms, more than 90% of
Konishi’s total sales are in Japan, with the balance of sales in Asia.
•
SRI CONSULTING
DECEMBER 2009
54
O PERATING CHARACTERISTICS
Research and Development
20
09
Adhesive formulations require broad knowledge of adhesive chemistries and an understanding of the
demands of many application areas. Adhesives producers often work closely with their customers to
design products for specific applications, combining synthetic polymers with various additives to produce
the required performance. Formulators consider several factors in adhesives development, including
performance, application method, substrate, cure regime and environmental exposure.
om
Although performance is paramount when developing a new adhesive, the method of application is an
important consideration. With the drive to maximize productivity, many adhesives users run very fast line
speeds, requiring rapid application and set of the adhesive. The adhesive does not have to achieve its full
strength in that time, but instead must be capable of remaining on the substrate and possibly forming a
weak bond with the substrate allowing the part to be handled.
fr
Restructuring and industry consolidation have caused many adhesives producers to more precisely target
their R&D efforts on specific market segments and improve their speed to market for new products. A
quick response to customer needs is important in maintaining strong relationships and to ensure that those
customers remain leaders in their own end-use markets. As manufacturing demands change, adhesives
users and their suppliers must rapidly reformulate adhesives to bond to new materials.
ep
or
t
Winning new business remains competitive. For example, manufacturers in the aerospace industry require
very specific applications and request bids from several adhesives producers. Each qualifying bidder must
formulate a system to be cured by a specified procedure and meet demanding performance guidelines.
Although the effort is laborious, once an adhesive is chosen for the project, a company can retain that
business for several years.
pl
e
R
The development of a new product can take a few months or a few years, depending on the demands of
the applications and the changes required from the existing system. And some applications have
significant liability risks, so changes must be made very carefully. The introduction of adhesive bonding
in structural applications must be done in the initial design phase; thus, close collaboration between
supplier and customer is essential.
m
Many new specialty adhesive products developed recently are based on “hybrid technology,” which is the
combination of two or more existing technologies. The intent is to combine key features of one chemical
type with those of another to develop an optimized and targeted system. Examples include the blending of
urethanes into epoxy systems to increase their flexibility, or the inclusion of reactive groups on acrylic
backbone structures to increase polymer cross-linking for improved solvent resistance.
Sa
An example of a hybrid technology is structural bonding tape offered by 3M. These tapes combine the
pressure-sensitive adhesive qualities of a standard acrylic resin with the strength of a modified epoxy.
They can be applied with simple hand pressure, and then are later heat cured to develop strength near the
range of structural adhesives (lap shear performance above 1,000 psi). Although these products are
referred to as tapes, most are composed entirely of adhesive that has been foamed with nitrogen to create
thicknesses of a few mils. These products are very flexible, have elastic qualities and create very strong
bonds. Applications for these tapes include support beams for highway signs and the attachment of
tempered glass to oven door frames.
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DECEMBER 2009
55
Other recent advancements include the use of nanoparticles as fillers in various adhesive formulations to
provide greater strength and reduce failure.
20
09
Some companies and government researchers are working on new methods to evaluate the strength and
durability of adhesive bonds. Interest is especially high as adhesives are increasingly used in aircraft that
have been in service for several years. New testing methods being explored include ultrasound,
thermography, and optical shearography, which uses lasers to measure strain in a joint.
Manufacturing and Technology
om
Adhesive and sealant formulation and packaging is typically not capital-intensive. Most processes require
the blending of several components in metered ratios in relatively simple equipment that provides good
mixing and uniform temperature control. Production is almost entirely in batch processes and, although
units may make several products, companies typically isolate units according to the chemical type of
adhesive. Adhesives used in solid form, such as hot melts are usually manufactured by mixing raw
materials, followed by extrusion, pelletizing, drying and packaging.
or
t
fr
Formulation equipment is invariably multipurpose and seldom dedicated to an individual product. The
typical specialty adhesives manufacturer may produce hundreds of different compounds, with many of
them made in relatively small volumes. To increase manufacturing flexibility, many adhesives producers
tend to operate multiple sites with relatively small equipment.
Sales and Marketing
ep
Important assets in adhesives manufacturing are flexible, low-cost production units and effective quality
control, which help to ensure product uniformity.
R
With the diversity of the adhesives market, product selection is a critical component of success for all
participants in this industry. Effective sales and marketing efforts include educating customers on the
selection and use of adhesive and sealant products.
m
pl
e
Adhesives producers may provide sales support to help customers choose the correct product for their
application. With the expansive product lines now offered by most producers, customers often need help
understanding the differences in products. Although adhesive technology has been in use for nearly three
decades in most structural segments, many potential adhesives users require substantial training.
Thorough training also helps users reduce waste and incorrect use.
Sa
Adhesive and sealant producers should provide Internet-based technical information; usually replacing
detailed brochures to compare various adhesive chemistries and formulations, and discuss competing
systems. Typical property comparisons include substrate compatibility, temperature resistance, cure
requirements, and detailed performance data in terms of peel strength, flexibility, and hardness. Several
companies also provide general training seminars including Internet-based seminars on adhesives for
prospective and/or current customers. Although some of this training spends much of the time
highlighting the companies’ own products, they also provide a thorough review of adhesive chemistries
and formulations. In training courses and documentation, producers emphasize the need to redesign
products when converting from a mechanical fastener to a chemical adhesive. Some detail stress
distribution across various joint designs, comparing mechanical and adhesive fastening.
•
SRI CONSULTING
DECEMBER 2009
56
20
09
An effective sale of a specialty adhesive typically also has a strong technical component, often requiring
assistance from technical support in a company’s R&D organization to develop a product and resolve
handling and performance issues for the customer. The sales force is usually well-trained regarding a
company’s products and its competitors, and is often assigned customers based on application, rather than
location. However, the number of people involved in direct sales and technical support has been declining
in recent years as Internet-based training and customer support has supplanted face-to-face customer
interactions.
om
Adhesives producers supply products in a variety of forms and sizes. Liquids sold in large volumes can be
delivered in tank cars, totes, and drums, with smaller volumes available in 100-, 500-, or 1,000-kilogram
tubs. Hot melt pellets are supplied in bags, boxes and supersacks, depending on quantity. Most producers
provide single-use application equipment with their products, especially for two-component systems that
require mixing before use, or else recommend equipment suppliers for larger applications.
fr
Some adhesives producers also sell multiple-use application equipment with their products. For example,
Henkel sells hand applicators; control consoles; automatic spray, valve, and pencil applicators; syringe
systems; coater applicators; UV-curing equipment; and other accessories. 3M offers similar equipment as
well as several unique forms of adhesives in its product line, including spray cans of aerosol adhesive and
rolls of film adhesive.
or
t
Most adhesives producers sell directly to their large industrial customers, and use distributors to reach
smaller customers. Sales through distributors typically range from 30% to 50% of total sales, but the
portion can be much higher for some smaller or retail-oriented adhesives producers, and in the case of
Hexion sales through distributors are much lower.
ep
For consumer products, the distribution network is much more important than for industrial uses. In
Japan, for example, Toagosei’s cyanoacrylate adhesives for the consumer market are distributed by
Konishi because Konishi has a strong distribution network for consumer adhesives. Toagosei is primarily
a basic chemical producer so its distribution network is not as well-developed.
pl
e
R
Advertising is also an important tool in the consumer and do-it-yourself markets. Brand name recognition
helps producers build strength in the market. And with the increasing use of electronic commerce for
business products, brand name strength is becoming even more important.
Pricing and Profitability
m
Prices and profitability vary widely, depending on the specific adhesive, end-use market and geographic
sector. Commodity products have a larger raw material cost component than specialty materials, but
specialty products typically demand greater sales and administration expenditures than commodities.
Sa
The following table shows the average cost structure across U.S.-based adhesive and sealants
manufacturers in the 2007 U.S. Economic Census:
•
SRI CONSULTING
DECEMBER 2009
57
Table 29
U.S. Adhesives and Sealants Industry, 2 0 0 7
Economic Census, U.S. Bureau of the Census,
http://factfinder.census.gov/servlet/IBQTable?_bm=
y&-geo_id=&-fds_name=EC0700A1&_skip=100&-ds_name=EC0731I1&-_lang=en; SRI
Consulting
fr
SOURCES:
100
(53)
(15)
(68)
47
(1)
(2)
(10)
19
om
Sales Revenue
Raw Materials
Labor, with benefits
Cost of Goods Sold
Gross Margin
Energy
Depreciation
Selling, General and Administrative Expenses
Earnings Before Interest and Taxes
20
09
Average Cost Structure for U.S. Adhesives and Sealants
Manufacturers—2007
(percent)
R
ep
or
t
Gross margins generally declined in the late 1990s and early 2000s as raw material and labor costs rose,
while increasing competition kept prices stable. This situation accelerated in the period from 2005 to midyear 2008. For nearly all adhesives and sealants producers the cost of raw materials outpaced the ability to
raise prices particularly in the first six months of 2008. This pricing pressure was especially strong in the
automotive sector, where large producers demanded an annual price reduction from their suppliers.
Adhesives users in the aerospace and electronic areas have attempted similar methods as a way to keep
their costs down.
G OVERNMENT REGULATIONS
m
pl
e
Environmental and safety regulations continue to impact the adhesives and sealants industry. Solvent
reduction has been a major focus for the last few decades, and most easily replaceable solvent
applications have shifted to waterborne or high-solids products. Additional solvent reduction is much
more difficult to achieve because the remaining solventborne systems are used in particularly demanding
performance applications.
Sa
As with most other chemical-related industries, adhesive and sealant producers have to contend with
government actions, as well as public concerns regarding their products. Most resin and adhesive
producers have staff dedicated to health and safety issues and are usually prepared for new regulations.
Public perception of chemical threats are often the more difficult to respond to and these concerns are
having an increasing influence on the success of existing and new products worldwide. Examples include
consumer concern about isocyanate exposure and media stories on “sick building syndrome” (discussed
more fully below under United States and Japan).
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58
United States
20
09
Major U.S. environmental and health regulations became law following 1970 when the U.S.
Environmental Protection Agency (EPA) and Occupational Safety and Health Agency (OSHA) were
created. The pace of significant new regulation as shown in the following timeline has slowed since 1990:
Toxic Substances Control Act of 1976 (manufacturing, distribution and use of toxic chemicals)
●
Clean Air Act of 1979
●
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of 1980
●
RCRA Hazardous and Solid Waste Amendments of 1984
●
Superfund Amendments—Emergency Planning and Right to Know Act of 1986 (EPCRA)
●
Clean Air Act Amendments of 1990 (including reductions in the production and use of chemicals
that deplete stratospheric ozone)
fr
om
●
or
t
The most important recent regulations target solvent emissions from adhesives production, with the 1990
Amendments to the Clean Air Act having the greatest impact on producers. Of the 188 chemicals targeted
by these regulations, at least fifty are used in adhesives, either in the product, or as cleaning solvents for
equipment and work area. Some of the recent regulations that have affected adhesive and sealant
formulations include the following:
U.S. production and importation of 1,1,1-trichloroethane ended in 1996 as part of the required
phaseout of this ozone-depleting chemical under the Montreal Protocol of 1987 and made U.S.
law by the Clean Air Act Amendments of 1990. In response, manufacturers reformulated,
switching to alternative solvents; reformulated, switching to waterborne systems; eliminated
vehicles entirely by using high-solids technologies such as hot melt.
●
The U.S. Occupational Safety and Health Administration reduced the acceptable exposure limit
for methylene chloride to 25 ppm from 500 ppm in January 1997 under 29 CFR 1910.1052. This
change prompted more reformulation, after many had moved to methylene chloride from 1,1,1trichloroethane. A government-sponsored economic assessment of the impact of this reduction on
small businesses noted a profit impact of only 0.5% for plastic and adhesive manufacturers that
use methylene chloride. Some manufacturers have moved to the use of ethyl acetate for
isocyanate solutions, instead of methylene chloride.
m
pl
e
R
ep
●
Sa
Future regulations may include restrictions intended to improve indoor air quality as concern has
increased over the “sick building syndrome,” which refers to illnesses caused by breathing various
contaminants in indoor air pollution. According to the U.S. EPA, no standards have been set for volatile
organic compounds (VOCs) indoors in nonindustrial settings. Formaldehyde, one of the major
contaminants of concern in indoor air, is regulated by OSHA as a carcinogen. It is an off-gas from ureaformaldehyde resins used in oriented strandboard (OSB), particleboard, plywood and other manufactured
wood products. OSHA has adopted a Permissible Exposure Level (PEL) of 0.75 ppm, and an action level
of 0.5 ppm for formaldehyde in indoor air. Alternative adhesives to urea-formaldehyde such as phenolformaldehyde, which emits less formaldehyde or methylene diisocyanate, may increasingly be used to
improve indoor air quality.
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59
Western Europe
The REACH program is one of the most relevant regulations for the European Union member countries.
The European Union has a chemicals policy that it started in 1981 and then expanded in 1993 under a
series of Directives on Dangerous Substances and Dangerous Preparations.
20
09
On February 16, 2001, the European Commission adopted the White Paper, Strategy for a Future
Chemicals Policy, proposing that existing and new substances should be treated under the same, single
system, called “REACH” (Registration, Evaluation and Authorization of Chemicals). The REACH
system contains the following three elements:
Registration of basic information for around 30,000 substances. It is estimated that around 80%
of these substances would only require registration.
●
Evaluation
●
Authorization or banning
om
●
or
t
fr
On December 13, 2006, the European Parliament adopted the final REACH text while the European
Council of Ministers, representing national governments, followed on December 18, 2006. REACH
entered into force on June 1, 2007. In June 2008, the European Chemicals Agency (Helsinki, Finland)
should become operational and the preregistration phase begins. Important milestones in the timeline for
the implementation of REACH are
November 30, 2010—Registration deadline for substances in quantities of 1,000 tons and above
as well as carcinogens, mutagens and substances toxic to reproduction that have production
volumes above one ton per year and substances classified as very toxic to aquatic organisms that
have production volumes above 100 tons. The deadline is three and a half years after the
implementation of REACH.
●
May 31, 2013—Registration deadline for all substances in quantities of 100 tons and more.
●
May 31, 2018—Registration deadline for all substances in quantities of one ton and more.
R
ep
●
pl
e
The cost of REACH is difficult to estimate. The EU Commission estimates a 1-2% price increase of the
chemicals involved. The REACH program applies to both EU-produced goods as well as imported
products.
Sa
m
Other regulations that have the major impact on adhesives and sealants are those focused on restricting
VOC limits for health, safety, and environmental reasons. Adhesives and sealants industry concerns over
VOC emissions are much less severe than those of the coatings industry because solvents use is less
common in adhesives.
The difference in environmental legislation among European countries is expected to diminish as the
unification process proceeds. One of the major objectives of the European Commission’s environmental
policy is to harmonize all individual government regulations on chemicals in EU countries. Such
standards will also be observed by Western European adhesives producers on exported products,
particularly if they export to EU countries. A European-wide VOC legislative control was first set out in
1991 in the form of an EU Directive. Since then, the Directive has gone through at least seven unofficial
drafts. Publication has apparently been put on hold while priority was given to the Integrated Pollution
Prevention and Control (IPPC) Directive that was adopted in the second half of 1996. This Directive takes
•
SRI CONSULTING
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60
20
09
an integrated approach to pollution, requiring authorization permits but affecting solvent-using industries
such as adhesives and coatings. Full implementation throughout the European Community is expected. In
1999 in the European Union, the VOC Emissions Reduction in Industrial Installations Directive was
adopted by the Council of Ministers, setting out targets for solvent emission reduction. It applies to the
main types of organic solvent–using installations, including painting processes in a contained plant as
well as paint manufacture, with the aim of an emission reduction of 50% from the 1990 levels. Existing
facilities had until October 2007 to comply with the maximum allowed emission standards imposed by
the directive. New and reconstructed facilities had to comply by 2004; the guidelines set reduction targets
for each industry.
om
Pressure on solvent-based adhesives has existed for a number of years as companies have voluntarily
acted to reduce or eliminate solvent emissions. As a result, waterborne, hot melt and radiation-curable
formulations have been developed as substitutes. However, the problem facing the formulators has been
in developing products with performance/cost ratios comparable to solventborne products.
fr
Recycling of materials after a service life in a consumer product has a high public profile. Attempts to
recover adhesives are unlikely, but tailoring of adhesives to ease recycling of bonded materials is
receiving increasing attention. This is especially relevant to paper and board packaging, where recycling
requires mechanical or chemical methods to remove adhesive particles.
or
t
Environmental regulations governing the recycling of automobiles in particular will have an impact on the
adhesives and sealants industry. Germany is at the forefront in regulations targeting the saving and reuse
of materials. A used car ordinance came into force in 1998 just as a voluntary program began for
automakers, which increased material reuse in cars from 75% to 85% by 2002 and to 95% by 2015. A
similar reuse rule has been set by the European Union that requires 65% material reuse or recycle by
2005.
R
ep
The industry is studying the unbonding characteristics of its products and determining transformations
that occur during recycling or incineration. Special adhesives have been developed that can disbond “on
command” so that components can be separated under certain conditions. One example is adhesives based
on polymers containing di- or polysulfide groups that allow the disbonding of parts with the help of
specific reagents.
pl
e
The fear that some products will generate toxic compounds during recycling operations is forcing the
industry to develop safer alternatives. Recycling is even more of a problem in Europe than in the United
States because landfill space is more limited.
Sa
m
European car manufacturers are also obliged to reduce the average energy consumption of their current
range of vehicles, called “corporate average fuel economy,” by 25% from 1995 to 2008. Leading car
producers have a 30% reduction goal. This ambitious goal can be met by using lightweight construction,
which often includes bonded plastic parts. Adhesives and sealants offer several possibilities for bonding
and sealing these new materials.
The growing demand for “green” products has led to “environmentally friendly” labels appearing on
materials such as paints and detergents. Such labels are currently unofficial and based on questionable
claims, but the European Union has developed an ecolabeling scheme that aims to provide an official
guide to consumers on goods that cause the least damage to the environment. Criteria for an award of an
ecolabel are based on a “cradle-to-grave” life cycle analysis, including water use, pollution, noise and
consumption of energy and resources. In general, materials forming less than 5% of a product are
excluded, subject to weighting for environmental impact, so adhesives may escape attention unless they
cause polluting emissions.
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61
All forms of energy have an environmental impact. Adhesive bonding is a relatively low energy user and
may compare favorably with other assembly processes such as welding, although the energy used to
produce the adhesive itself must be taken into account.
20
09
All the reactive adhesive types are potentially harmful to skin and eyes as well as producing harmful
vapors in the case of polyurethanes, acrylics and cyanoacrylates. In particular, the possible presence of
hazardous monomers in certain adhesive formulations and the potential health hazard of certain
diisocyanates, such as toluene diisocyanate (TDI), is a concern. Many adhesives manufacturers use
prepolymers (polyurethane adducts) that pose fewer toxicity concerns.
fr
om
The main hazard posed by all industrially used isocyanates is their potential to cause allergy in the
airways (asthma). Methylene di-p-phenylene isocyanate (MDI) has been shown to cause asthma by skin
contact without inhalation exposure. Objections from the trade unions have made isocyanates the subject
of great publicity in the United Kingdom and Sweden. The government of the United Kingdom has set an
occupational exposure limit of 20 µg/m3, which is considerably lower than the international limit ranging
from 30 to 70 µg/m3. The UK exposure limit applies to all isocyanates, including prepolymers and
oligomers. This approach has not yet been adopted by other European countries.
Japan
or
t
VOCs
Currently, there is no strict solvent emission restriction in Japan compared with the United States and
Europe; however, adhesives are not used with solvents as much as coatings are, as shown in Table 30.
ep
Table 30
R
Japanese Markets for Coatings and Adhesives—2008
(percent)
Solvent Type
Nonsolvent Type
63
18-23
37
77-82b
pl
e
Coatingsa
Adhesivesb
a.
Includes thinners.
b.
Including UF, MF, and PF adhesives.
SRI Consulting.
m
SOURCE:
Sa
The lower use of solvent in Japanese adhesives is driven by such factors as the following.
●
Wood is the dominant material used in structural parts of homes and is also used in apartment
building flooring. Melamine-formaldehyde, urea-formaldehyde, phenol-formaldehyde and waterborne vinyl urethane products are the dominant wood adhesives, and these are supplied in water.
●
Unlike coatings (which often use a spray gun for application), it is not necessary to reduce the
viscosity of adhesives before application. In epoxy formulations, amine/amide-based crosslinkers, modified resins and reactive diluents reduce the viscosity of adhesives sufficiently to
apply them, allowing nonsolvent epoxy adhesives to be used in construction and civil engineering
applications.
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62
In packaging, fabric, bookbinding, and laminate applications, hot melt and waterborne adhesives
are preferred.
●
Solventborne adhesives need to be stored in fireproof warehouses, which require sprinklers, fireresistant walls, exhorting fans and so forth, but nonsolvent adhesives can be stored in ordinary
warehouses.
20
09
●
om
The Japanese government enacted new laws to regulate VOC emissions beginning in April 2006. In the
adhesive industry, plants/factories with drying fan capacities of more than 15 thousand square meters per
hour are regulated to keep VOC emissions below 1,400 ppmC (ppmC means total hydrocarbon
concentration as parts per million). The number of such plants/factories is not large; however, small to
midsized plants/factories are also considering reduction of VOCs voluntarily.
Chemical emissions
or
t
fr
New legislation in 2001 requires the disclosure of the emission of 345 chemicals, including some solvents
and plasticizers used or emitted in the adhesives industry. The law is called the Pollutant Release and
Transfer Register (PRTR) law, and is similar to the TRI (Toxic Release Inventory) in the United States.
Adhesives companies are becoming more sensitive to solvent emissions (motivated by concern over their
corporate image), as are coating companies.
Waste disposal
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Indoor air quality
R
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In order to reduce industrial waste disposal, and metal cans in particular, several adhesives producers
have developed new packages made of recyclable materials. These containers include plastic tubes or
bags and film-laminated paper containers. Recent products include EcoPak by Sunstar Engineering,
CleanPak by Cemedine, and P-Can by Yokohama Rubber. Use of these containers has been increasing in
the market.
Sa
m
The Building Standards Law of Japan has strengthened restrictions on formaldehyde emissions from
wood products in interior applications as follows—F”four star” (F****) grade (less than 0.4 mg/liter
vaporizing formaldehyde in desiccator condition), F”three star” (F***) grade (0.5-0.7 mg/liter), F”two
star” (F**) grade (1.5-2.1 mg/liter), and F”one star” (F*) grade (3-4.2 mg/liter). F* grade cannot be used
for interior applications. Generally, urea-formaldehyde adhesive resin meets only F**-grade
requirements, and thus is often used in outdoor civil work applications (concrete forms), but not in
interior uses. Melamine-formaldehyde adhesive resin meets F***-grade requirements. Formaldehyde has
been proposed as a major contributing factor to “sick house syndrome,” known as “sick building
syndrome” in northern Europe. When a new house is built, formaldehyde is vaporized from adhesive
resin, especially urea-formaldehyde adhesive resin, which was formerly used in plywood, particleboard,
MDF, flooring board, and vinyl cloth. This public issue varied in intensity between the 1970s and 1990s,
but emerged as a major issue in the early 2000s. In particular, children/infants have shown symptoms.
Waterborne polymer-isocyanate adhesives, which were invented in 1975 in Japan, have zero
formaldehyde emissions (F****-grade requirement) and have developed markets mainly in Japan,
Southeast Asia and some in the Republic of Korea and northern Europe, where formaldehyde emission
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concerns are significant. The markets for this adhesive in China and Southeast Asia are also increasing
because exports of wood finished products/architectural wood materials to Japan are increasing. Products
exported to Japan must meet Japanese requirements. Water-polymeric MDI-based glue is also used
increasingly as a binder for particleboard binder (this is not always defined as an adhesive use, thus is not
included in this report). Resorcinol-phenol-formaldehyde-type adhesives may emit very small amounts of
formaldehyde but still possibly meet F**** standards.
China
om
The regulations on adhesives and sealants in China are not very integrated compared with the United
States, Western Europe and Japan. There are two specifications in specifying the harmful materials limit
for adhesives, which are GB18583-2001 “Indoor Decorating and Refurbishing Materials Limit of
Formaldehyde Emission of Wood-based Panels and Finishing Products” and “Technical Requirement for
Environmental Labeling Products-Adhesives.”
ep
or
t
fr
“Indoor Decorating and Refurbishing Materials Limit of Formaldehyde Emission of Wood-based Panels
and Finishing Products” specified the limit of some harmful materials for adhesives used for indoor
decoration. In this specification the adhesives are categorized into two types, including solvent-based
adhesives and water-based adhesives. The up-limit of free formaldehyde was specified as 0.5g/kg for
synthetic rubber adhesive. The up-limit of benzene and toluene + xylene of solvent-based adhesives were
specified as 5g/kg and 200g/kg, respectively. The up-limit of tolyl-diisocyanate of polyurethane adhesive
was specified as 10g/kg. The total VOC of solvent adhesives was limited below 750g/L. The up-limit of
free formaldehyde was specified as 1 g/kg for water-based adhesives. The up-limit of benzene, toluene +
xylene, and total VOC of water-based adhesives were specified as 0.2g/kg, 10g/kg, and 50g/L,
respectively, for water-based adhesives.
Sa
m
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R
‘Technical Requirement for Environmental Labeling Products-Adhesives” specified the limit of harmful
materials in five kinds of adhesives. In package water-based adhesive and processing agent, the up-limit
of benzene was specified as 100mg/kg, the up-limit of benzene + toluene + xylene was specified as
1000mg/kg, and the halogenated hydrocarbon was specified as 1000mg/kg. In footwear and case
adhesives, the up-limit of benzene is 0.1 g/kg, the up-limit of toluene + xylene is 5g/kg, the up-limit of
tolyl-diisocyanate is 5g/kg, the up-limit of halogenated hydrocarbon was 2g/kg, the up-limit of n-hexane
is 100 g/L, and the up-limit of total VOC is 700g/L. In water-based construction adhesives, the up-limit of
free formaldehyde is 100mg/kg, the up-limit of benzene is 100mg/kg, the up-limit of toluene + xylene is
500mg/kg, the up-limit of halogenated hydrocarbon is 500mg/kg, and the up-limit of the total VOC is
50g/L. In solvent-based construction adhesives, the up-limit of free formaldehyde is 500mg/kg, the uplimit of benzene is 2000mg/kg, the up-limit of toluene + xylene is 2000mg/kg, the up-limit of tolyldiisocyanate is 5000mg/kg, the up-limit of tolyl-diisocyanate is 2000mg/kg and, the up-limit of the total
VOC is 750g/L. In carpet adhesive, the up-limit of total VOC is 10mg/m2 , the up-limit of formaldehyde is
0.05mg/m2 h, the up limit of 2-ethyl hexanol is 3 mg/m2 .
Because large quantities of wood furniture and products are exported outside China every year, the
adhesives and sealants used for wood processing must also meet the requirements of other countries. The
regulations of other countries, such as Janpan, Western Europe, United States, and Southeast Asia, etc.,
have an important effect on the production and consumption of adhesives and sealants in China.
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TRENDS AND OPPORTUNITIES
Markets
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ep
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om
20
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The Far East remains the highest growth region in the world, and most large adhesives producers are
following their global customers as they establish manufacturing operations there. With the exception of
Japan, Far East production of manufactured goods is increasing to meet growing consumption under
rising living standards, especially in the consumer product and disposable markets, which use large
volumes of commodity adhesives. Many new production facilities, both export-oriented and for domestic
markets, use the latest manufacturing processes that are designed to use adhesives instead of the older
mechanical fastening equipment that manufacturers first used in developed regions. China is the dominant
high growth market, with overall GDP growth exceeding 8% per year since 2002 and manufacturing
growth rising even faster. In terms of specialty adhesives, the key industries include (1) automobile and
other transportation industry; (2) footwear industry which Asia is the dominant world producer; (3)
appliance industry, which Asia is also dominant; (4) furniture industry, also Asia dominant; and (5)
construction and civil engineering industry (housing and road construction) which contributes to the
domestic industry. In automobile applications, roughly half are produced in Asia in 2008, and major
locations include Japan, China, the Republic of Korea, and recently India and Thailand. Footwear is
produced largely in China, and growing recently in Vietnam. Appliances are produced in all Asian
countries, including Japanese and Korean overseas plants and Chinese producers. Furniture is produced in
China and Southeast Asian countries such as Indonesia, Vietnam, etc. However, even in Asia, the
economy started to slow in the second half of 2008, and continues in 2009. This has especially damaged
export-oriented industries (to the United States/Europe), including automobile, footwear, furniture,
appliances, etc. Thus, adhesives demand for these applications has also decreased in 2009. Each country
tries to stimulate domestic consumption (for example, by reduction of taxes to purchase domestically
produced automobiles, appliances, etc.) or some countries increase public civil engineering works. These
supports help to some extent to recover the industries, but may not last long. Overall, it may take another
five years to recover to the 2008 level. Thus, the growth rate of total specialty adhesives consumption in
Asia (on average) from 2008 to 2013 could be 0-2%. The recovery ratio may be different by industry and
by country. Civil engineering work/construction may be stimulated by some countries governments, and
in that case, adhesives for civil engineering/construction, such as epoxy adhesives, will recover faster than
other industrial specialty adhesives.
m
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The markets of Central and South America also had relatively high GDP growth in the 1990s and some
companies have acquired local producers. Some Central and South America manufacturing has been
affected by the growth in Chinese manufacturing, as many global companies have chosen to move textile,
clothing, footwear and appliance manufacturing and assembly to China, and to close or reduce Central
and South American operations.
Sa
For most of the world and particularly in the United States, the building construction segment was
severely impacted by a slowing economy. While the economic recession began in 2007, the construction
segment began to decline in 2006, significantly impacting the consumption of several groups of adhesives
and sealants. The construction segment may show the slowest recovery as the United States and world
emerge from recession.
Transportation markets will continue to offer new opportunities for adhesives producers. Escalating oil
prices in the late 2000s have refocused attention on fuel economy and alternative energy sources, with a
greater urgency than in the 1990s. Vehicles designed for greater fuel economy continue to utilize higher
quantities of lighter plastic and composite components requiring adhesives. The year 2000 commercial
introductions of hybrid vehicles using electric motors and compact gasoline engines from Honda and
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Toyota were in smaller vehicles designed to provide weight savings for better performance. In 2004. Ford
introduced its first commercial U.S. hybrid automobile. In 2005, General Motors began commercial sales
of hybrid buses and in 2006 announced first production of consumer hybrid vehicles. As hybrids are
introduced as an option on larger, more mainstream vehicle models, weight savings will be emphasized
more broadly, with a greater use of plastics and composites as well as aluminum, creating new challenges
for adhesives to join dissimilar materials. According to the Automotive Composites Alliance, automotive
demand for composites rose more than 80% between 1996 and 2000 to an estimated 14 thousand metric
tons. In 2003, sheet molding compound (SMC) containing carbon fiber was introduced, increasing the
performance capabilities of composites and enabling broader use in vehicle body panels and other exterior
parts as well as in under-the-hood components.
fr
om
In the late 2000s electric vehicles either as “plug-in” hybrids or battery only are becoming available with
fewer performance limitations, although most models are pre-commercial, with working prototypes
available for testing by selected users. Most automakers with active electric car development expect
commercial sales by 2012 and beyond. Battery technology and expense remain as large challenges to the
introduction of “plug-in” hybrids and fully electric cars. These vehicles will provide new opportunities for
adhesives particularly for weight savings in new car designs as several may include carbon-fiberreinforced bodies.
or
t
In medicinal applications, reactive adhesives are increasingly being used for external and internal wound
closure. In dentistry, reactive adhesives consumption is growing as consumers spend more on appearanceenhancing dental procedures. Increasingly, mercury-containing amalgams are being replaced by UVcurable polymers, while metallic crowns are being replaced by ceramics held in place by reactive
adhesives. In volume terms, these markets are quite small but the growth rates are significant and the
value per unit is very high.
R
ep
After 2003, the Western European economy began to recover, reflected in average annual growth rates of
8.4% for German truck production between 2003 and 2005. In 2008, German truck production increased
by only 1.9%, before the onset of most recent economic recession that began in 2008. The construction of
the new Airbus A380 offers new, challenging applications for adhesives.
pl
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From 2006 through the first half of 2008, adhesives and sealant producers were forced to increase prices
to preserve margins as raw material and energy costs rose.
In Western Europe, passenger car demand declined by 8.4% in 2008. In 2009, Many European contries
provided timely limited government subsidies to promote sales of new cars with a scrapping premium of
2,500 euros like in Germany. These programs were able to reduce the car sales decline to about 5%.
Sa
m
The bottom of the car sales decline is expected to be reached in 2010; car sales are expected to resume
growth at an average annual rate of 7.5% between 2010 and 2013, returning to sales levels of 2008. This
trend will be followed by increased demand for adhesives and sealants for automotive applications.
Although adhesives find new uses in the transportation industry, the quantity used for a particular
application typically declines over time as the application process and technology are improved.
Packaging, construction/renovation and the automotive aftermarket will grow at a moderate pace.
From 2006 through the first half of 2008, adhesives and sealant producers were forced to increase prices
to preserve margins as raw material and energy costs rose.
The 1990s shift of automotive, appliance, and audio equipment manufacture from Japan to other Asian
countries reduced adhesives consumption in Japan. In the 2000s, production of appliances and audio
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equipment decreased, although Japan’s production of automobiles was still around 10-12 million units.
Many specialty adhesives for Japanese automobile and electric company plants outside Japan are still
supplied from Japanese adhesives companies, either by exporting from Japan or by producing adhesives
at subsidiary/affiliate plants in the local countries. These products have to satisfy the high quality
standards of Japanese end-user industries. Thus, Japan continues its leadership in designing high
performance adhesives in these industries.
fr
om
China continues as an assembly center for industrial products, due to low labor costs, thus China
consumes large volumes of adhesives for the assembly industry in appliances, shoe making, wood
products, etc. Southeast Asian countries including Vietnam and Cambodia are also increasing adhesive
consumption because of increasing manufacturing and assembly, particularly of shoes. Chinese domestic
consumption of commodity food packaging is experiencing high growth, while high-performance food
packaging such as retort pouches (often packed with cooked foods) are mainly exported to Japan. The
Japanese food packaging industry experienced some stagnation in 2008, due to pesticide contaminated
food products, and other contamination incidents (such as melamine, diethylene glycols), and some
Japanese food manufacturers began considering Southeast Asian countries, such as Vietnam, for second
plant locations. However, the overall food packaging industry in China continues to grow with increasing
living standards and also by diversifying export destinations to Europe.
Technologies
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Many new product developments have been driven by the need to replace solvent formulations,
particularly in North America, Western Europe and Japan. Waterborne formulations grew very quickly in
the late 1980s and 1990s as producers developed new water-based adhesive systems and improved their
formulating skills. Hot melt adhesives have also gained market share globally and at the expense of
solvent systems in North America, Western Europe and Japan, while solvent systems have grown in the
developing world, particularly as shoe manufacturing and other manufacturing activities have relocated to
China and Southeast Asia. Water-based adhesives consumption in China and Southeast Asia is increasing
in footwear applications, in order to improve labor conditions, as various human rights protection groups
complain about the working conditions in these countries. Hot melt adhesives are expected to grow;
however, a barrier to further market development is the expensive investment required to install large hot
melt applicators, and only a few large companies can pay. Also in developing countries, cutting labor
costs in footwear factories by installing automated hot melt adhesive applicators may not be a strong
driving force to use hot melt adhesives, because labor costs are not high. The conversion to waterborne
products has slowed in recent years but hot melt products continue to grow strongly.
Sa
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The North American market is currently about 45% waterborne, 20% hot melt, and 14% solvent-based,
with the remaining 21% being based on natural polymers and water-soluble polymers and other. Solvent
systems remaining in use in their present applications have proved to be very difficult to replace because
their performance is not easily achieved by adhesives in other forms.
Radiation-curable technologies will benefit from the trend away from solvents and the need for higher
manufacturing efficiencies (particularly where the curing time for waterbornes is too slow). Key
application areas that will provide opportunities for this type of technology include disposable medical
devices and expanded use in circuit board applications. Although these areas are important, the quantities
of adhesives employed are very small.
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New product development efforts are targeting demands by major customer segments, such as increasing
manufacturing efficiency through rapid-cure, easy-to-use adhesives, waste reduction in the transportation
market, and greater demands on adhesives in high-temperature under-the-hood applications.
20
09
Recycling is becoming an increasingly important consideration in adhesives development. In packaging
applications, many customers require water-soluble adhesives, or low-density adhesives that can be easily
separated from the wash water in paper recycling operations. Most structural adhesives create problems in
recycling operations because they do not easily separate. Some manufacturers are developing structural
adhesives that are durable under normal use, but can be separated by (1) heating and expanding
microcapsules formulated inside the adhesives, or (2) immersing in alkaline water or boiling water. Some
equipment manufacturers are investigating other separation methods to ease both recycling and cleaning
problems.
fr
om
Several companies and researchers are developing nondestructive tests to evaluate bond strength and
integrity. Typical adhesives test methods destroy bonds; a visual check in commercial operations may
provide some information but is not adequate to fully evaluate bond strength. New techniques rely on
infrared, ultraviolet, visual or ultrasound technologies to examine the bond line.
Competition
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Adhesives are considered performance products, which means they are sold based on their performance,
not on physical or chemical specifications. For this reason, it is often difficult to make simple
replacements of one adhesive for another, so suppliers can often keep a business until the customer
changes the substrate, conditions, or performance requirements for the system.
R
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However, intermaterial competition is significant, which means that adhesives based on different
technologies can compete against each other in the same end uses. Producers must always be alert to
alternate and new technologies that can be used in their target applications. Adhesives producers also
compete against alternative fastening methods such as hook-and-loop fasteners or product redesign that
allows molding of a single part, thus eliminating the need to fasten several parts together.
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Consolidation
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Mergers and acquisitions have been common in most industries as companies begin to compete on a
global level. Many seek to lower their costs and capture new growth opportunities, especially as public
companies feel pressure from quarterly performance measures, shareholders and stock analysts. Adhesive
and sealant producers have been participants in this activity. The major factors that favor acquisitions
include the following.
Need for New Technology. When a technological change is occurring in a market, some
companies have difficulty developing the needed technology quickly. Acquisition provides a
rapid means to gain the new technology.
●
Expanded Geographic Coverage. A company often will decide to expand or strengthen
coverage in a given region. Rather than developing its position through internal growth, the
company will gain a market by acquiring another firm having a strong presence.
Sa
●
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Broader Product Line. Several of the largest companies have chosen to leverage their brands,
sourcing and distribution networks, formulation facilities, and retail relationships through the
acquisition of companies in different categories of adhesives and sealants. This strategy is
focused less on technological improvements and more on serving customers more fully through a
complete line of products.
●
Environmental Regulations. Several small adhesives formulators have been driven out of
business in the last several years by the increasing cost of environmental compliance. Often,
larger companies are better able to manage these costs by sharing them across several business
units and a larger volume of sales. Environmental regulations can also serve as a barrier to
competition particularly if stringent regulations make it too expensive for a foreign producer to
enter a market.
20
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●
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Some acquiring companies do not always fully integrate the acquired business into their structure, and
may instead allow it to continue to use its branding power and operate as a separate subsidiary while
maintaining its focus on its unique markets. This route can be less disruptive to the acquired business, and
more fully preserve customer loyalty and goodwill. RPM is an example of this practice with its large list
of relatively independent subsidiaries.
or
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Globalization
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Adhesives suppliers operate in a mix of global and regional markets. Transportation, packaging,
assembly, and footwear markets are global in nature, with similar performance and raw material
requirements around the world. In contrast, the construction (and to a lesser extent consumer) and
woodworking markets remain regional. Cultural and climatic differences as well as historical availability
of feedstock and building materials have allowed these end uses to evolve differently in each region, and
adhesives suppliers must address the needs individually.
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In the global end-use markets, adhesives producers often follow their customers to new regions by
building local manufacturing sites or shipping product from established facilities in developed markets.
This is particularly common in the automotive industry where automakers often develop an adhesive
through research at their headquarters and then expect the adhesives producer to send it to all global
locations that make the car model.
Sa
m
Joint ventures with local producers are also common, either to quickly establish access to raw materials
for global markets, or to learn the requirements for the local end-use markets. An example is the joint
venture between Germany’s Henkel and Japan’s Cemedine, focused on Japan’s automotive adhesives and
sealants markets.
Electronic Commerce
With the fragmented customer and supplier base in the adhesives and sealants industry, electronic
customer support and purchasing has created new efficiencies as well as opportunities. Several adhesives
producers allow customers to make purchases directly from their websites. Also, many companies are
taking advantage of the ease and accessibility of the Internet to help potential customers select products
and disseminate product information and material safety data sheets.
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While price competition has intensified and regional price differences have been reduced through greater
electronic sales and promotion, branded products may retain higher prices though user/consumer
perceptions of higher quality and performance.
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Service responsiveness is also greatly advanced across time zones in global industries through the use of
the Internet and email to speed technical communications and sales support.
CRITICAL FACTORS FOR SUCCESS
Several factors are important for success in the adhesives and sealants market. The factors are similar in
most regions but their importance varies slightly.
om
Table 31
Relative Importance of Success Factors for the Adhesives Industrya
Japan
6
6
5
9
9
3
7
8
5
5
5
7
7
7
6
3
6
5
9
9
5
9
9
3
3
5
8
5
8
6
6
5
4
7
9
6
9
8
6
6
5
8
8
8
6
fr
Europe
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Applications Development
Breadth of Product Line
Competitive Credit Terms
Competitive Pricing
Consistent Product Quality
Frequency of Sales Calls
New Product Development
On-Time Deliveries
Process Development
Raw Material Integration
Regional Warehousing
Reputation
Technical Competence of Salespeople
Technical Service
Up-to-Date Technical Information
North America
a.
From one to 10, with one being least important.
SRI Consulting
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SOURCE:
Product Performance and Reliability
Sa
m
Many adhesives users spend a lot of time and effort to specify and qualify the adhesives suppliers they
use. While adhesives are typically a very small portion of a finished product, the adhesives performance is
critical to the integrity and operation of the product. Failure can cause considerable damage in the
manufacturing process and in the product use, possibly leading to injuries to equipment operators and
product users. Also, problems with adhesive application components can cause costly downtime of
production equipment.
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Technical and Market Expertise
Another critical factor for success in the adhesives and sealants industry is specific technical expertise.
The kind of technical expertise needed depends on the types of adhesives the company produces and the
market segments it covers.
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For producers of resins and manufacturers of adhesives, the required expertise includes skills and
experience in polymer chemistry, surface chemistry, and interface science. Adhesives formulators also
must keep up with changes in additive products to ensure that they can design cost-effective formulations
that meet individual customer requirements. To test their products, producers often purchase equipment
that is similar to that of their customers in an effort to mimic the production environment to test new
products.
fr
om
Such formulating skill is often required on short notice as product and market requirements change.
Substrate changes have been a particularly challenging area for adhesives producers in recent years, as
many new plastic formulations, blends, and alloys have been developed. Each new plastic has unique
surface characteristics and many contain processing aids that affect adhesion and often demand new
adhesive systems. The increasing use of lower-cost polyolefins in many applications is particularly
challenging for adhesives because of their low-energy surfaces, compared with engineering
thermoplastics or thermoplastic elastomers.
ep
or
t
In addition to technical skills, adhesives producers need to have a good understanding of the markets that
they participate in. The automotive market, for example, is particularly daunting with its tiers of suppliers
and long qualification periods for some applications. Adhesives suppliers that have participated in this
market for several years have an obvious advantage over those who are trying to enter the market for the
first time.
Technical Service
R
Technical service programs can include training customers in the use of the product, preparing
customized formulations to meet the specific manufacturing requirements of the customer, and solving
problems at the customer’s plant.
m
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Technical service personnel must be well-qualified, reliable, and responsive. The product development
staff should be available to assist the technical service personnel, if required. The key technical specialists
should have a generally recognized reputation for technical know-how and problem-solving abilities.
Finally, technical service personnel must be able to advise clients on the proper application equipment to
use with the adhesive.
Sa
Customer Relationships
According to adhesives producers it can take two to three years of negotiations, joint development work,
product testing, and trial runs before a potential customer decides to use an adhesive. A large adhesives
supplier may have significant advantages in entering into new adhesives businesses with an existing
customer compared with a smaller company with a narrow range of products trying to establish the same
new business. This advantage justifies the broadening of product lines through acquisitions to leverage
existing customer relations.
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Specialization
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Specialization in selected products, applications, and geographical markets is particularly important for
smaller-volume manufacturers of adhesives and sealants. Specialization of technical or marketing efforts
can be achieved in several ways, depending on an individual company’s strengths, such as unique
production capability and know-how, superior technology for a particular group of polymers, or
knowledge of and access to a particular market segment. Some companies are noted for providing a wide
range of products to a particular industry, such as Sika in construction products.
Marketing and Sales Organization
fr
om
The development and implementation of marketing and distribution plans is critical in the fragmented
adhesives and sealants markets. In the industrial adhesives markets, and particularly for engineering
adhesives, product development, in-depth knowledge of customer needs, effective and responsive
technical customer service, competitive pricing, and efficient and reliable application equipment are key
factors. In the do-it-yourself and consumer markets, powerful branding, retail shelf space ownership,
effective advertising, and a strong sales organization are indispensable.
For adhesives suppliers to best meet market demands and gain competitive advantage, critical areas to
focus on include
Targeting specific end-use markets
●
Shortening product development times (often through joint development with customers)
●
Improving the efficiency of production processes
●
Offering a broad product family (adhesives, sealants, surface treatment products, etc.), leveraging
strong brands
●
Supplying products globally
Sa
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●
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PRODUCT TYPES
REACTIVE ADHESIVES
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Epoxy Adhesives
General description
om
Epoxy adhesives form the strongest bonds among reactive adhesive systems and have gained wide
acceptance in diverse uses because of their strength, versatility and excellent adhesion to a wide variety of
surfaces. Epoxies can be used to bond metals, glass, ceramics, many plastics, wood, concrete and other
surfaces. Their most extensive use is in the bonding of metals to fiber-reinforced composites and plastics.
They are often referred to as structural adhesives, because their lap shear strength is greater than 51,714
Torr (1,000 pounds per square inch) and they can replace spot welds and other mechanical fasteners in
some applications.
fr
Epoxy adhesives generally have much better heat and chemical resistance, and cohesion/bonding strength
than comparable urethane adhesives. However, urethanes are favored in applications where flexible
substrates are joined, since they display greater peel strength than epoxies.
ep
or
t
Epoxy adhesives contain an epoxy resin and a curing agent, in one or two components. The epoxy part is
typically an oligomer of the diglycidyl ether of bisphenol A (BPA) in a liquid or solid form. Producers
sell a variety of epoxy oligomers; all have two epoxide end groups and midchain hydroxyl groups of
varying number, depending on their molecular weight. Some producers also offer novolac resins, which
have hydroxyl groups and may also have epoxy functionality, but have aromatic backbones that provide
higher temperature resistance than standard BPA epoxies.
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R
The properties of epoxy adhesives by type of cross-link are shown in the table below. The curing agent is
usually an amide or amine curing agent that reacts with the epoxy group on the resin to create linear
polymers. Cure mechanisms can also occur through the hydroxyl groups on the resin backbone resulting
in high-cross-linked thermoset polymers. The selection of the curing agent, sometimes called a hardener,
is critical to the ultimate performance of the adhesive. The nature and extent of cross-linking that occurs
through the curing agent has a fundamental effect on the stiffness and solvent and temperature resistance
of the final system.
Table 32
Sa
m
Epoxy Adhesive Properties by Type of Cross-Linkers
Package
Typical Cross-linkersa
Cure Speed (ambient)
Cure Temperature
Application
Cost of Crosslinker
Polyamide
Two
Dimer acid–EDA
condensate
Slow (0.5-1 day)
Ambient
Construction
(warm climate)
Low
Polyamine
Aliphatic
Aromatic
Two (one by ketimine)
EDA, m-XDA, IPDA
Slow-medium
(0.5-1 day)
Ambient
Construction
(cold climate)
Low-medium
One
m-PDA
> 60°Cb
Transportation
High
•
Other
One
DICY, ADH
150°C-180°Cc
Transportation,
electric
High
SRI CONSULTING
Two
Polymercaptan
Fast (5-30
minutes)
Ambient
High
DECEMBER 2009
73
Abbreviations: EDA, ethylene diamines, such as diethylene triamine, triethylene tetramine, tetraethylene pentamine;
m-XDA, meta-xylene diamine; IPDA, isophorone diamine; m-PDA, meta-phenylenediamine; DICY, dicyandiamide; ADH,
adipic acid dihydrazide.
b.
Above melting point of m-PDA.
c.
ADH, 1-2 hours by 150°C; DICY, 1 hour by 160°C or 20 minutes by 180°C.
SOURCE:
SRI Consulting.
20
09
a.
or
t
fr
om
Epoxy hybrids have become increasingly important in recent years as a means of meeting unique
performance requirements. The hybrids are physical and/or chemical blends of resins, such as acrylic,
polysulfide, silyl-modified polyether (SMP), styrene-butadiene rubber, carboxy-terminated butadiene,
nitrile rubber, silyl-modified urethane, polysulfide or urethane. In the case of hybrids with elastic
materials, especially SMP, the epoxy contributes high-temperature and chemical resistance, while the
SMP increases flexibility and durability. They are generally referred to as elastic adhesives rather than
epoxy adhesives. (See the Silyl-Modified Polyether and Other Polysulfide Sealants [Modified
Silicone] section.) In earthquake-prone Japan, elastic adhesives are typically epoxy-silyl-modified
polyether (SMP) resins that balance properties of hardness as well as flexibility (durability). Epoxy-SMP
is used to adhere outdoor tiles, providing excellent adhesion performance under dynamic stress such as
with earthquakes.
The major global producers of epoxy resins include Dow Chemical, Hexion and Huntsman Corp. These
companies also offer curing agents for the resins, as do several smaller producers.
ep
Both Dow and Huntsman Corp. are forward-integrated to adhesives markets. Dow’s adhesives subsidiary,
Essex, is focused exclusively on the automotive segment, called Dow Automotive.
pl
e
R
Huntsman Corp. acquired Vantico in 2003 and in turn created a division, Huntsman Advanced Materials
that includes Vantico’s former adhesives business, specializing in the aerospace and industrial market
segments. Huntsman’s adhesives are based mainly on epoxy, polyurethane, and acrylic resins and
formulations.
Consumption and markets
m
Consumption by region
Sa
Table 33 shows estimates for epoxy adhesives consumption in major regions in recent years.
•
SRI CONSULTING
DECEMBER 2009
74
Table 33
World Consumption of Neat Epoxy Resin for Adhesives
and Market Value of Epoxy Adhesives
Neat
Epoxy Resin
for Adhesivesa
(100% resin basis,
thousands of
metric tons)
Total
36.2
3
23
2.4
7.6
24.8
9
14.5
20
09
31.1
na
20
2.2
7.5
na
na
na
na
2008
2008
29.6
3.3
25.1
2.9
7.6
33.2
9.5
16.0
382
43
428
43
191
398
218
206
om
2005
fr
North America
Central and South America
Western Europe
Rest of Europe
Japan
China
Rest of Asia
Rest of the World
2002
Value of Epoxy
Adhesivesb
(formulated
basis,
millions of
dollars)
120.5
127
1,909
Excludes cross-linker, reactive diluent, modified resin, filler, solvent
and additives. Fully formulated epoxy adhesive volume is roughly two
times higher than the neat epoxy resin quantity.
b.
Wholesale value of formulated epoxy adhesives.
SRI Consulting.
ep
SOURCE:
or
t
a.
R
Figure 14 shows the regional breakdown for epoxy adhesives in 2008, based on market value. The total
consumption is estimated at $1.9 billion.
pl
e
FIGURE 14
World Consumption of Epoxy Adhesives—2008
Sa
m
Rest of Europe
2.3%
Rest of the
World
10.8%
Western Europe
22.4%
Central and
South America
2.3%
Japan
10%
Rest of Asia
11.4%
China
20.8%
North
America
20%
•
SRI CONSULTING
DECEMBER 2009
75
The following table shows 2008 world consumption of epoxy adhesives by region and segment by
volume:
Table 34
Industrial
Automotive
Construction
Electronic/Electrical
Aerospace
Other
Total
10.0
5.9
3.3
2.7
2.1
5.6
8.8
5.3
3.5
0.5
2.0
5.0
29.6
25.1
Japan a
0.3
1.0
5.9
0.2
neg
0.2
China a
1.7
5.0
21.5
3.3
-1.7
7.6
33.2
Represents consumption by adhesive formulators in Japan and China;
there may be another several thousand metric tons of epoxy resin used in
bonding applications in Japan and China, in civil engineering for
concrete treatment/repair and by electronics companies in use as
sealing/binding of electrical parts.
fr
a.
Western
Europe
om
North
America
20
09
Consumption of Epoxy Adhesives by Major Region and Segment—2008
(neat epoxy resin, thousand metric tons)
SRI Consulting.
or
t
SOURCE:
pl
e
R
ep
In North America, the adhesive end use typically accounts for about 9-11% of total epoxy use. Statistics
on total North American epoxy production and use are reported by the American Plastics Council;
however, many epoxy purchasers use the product in several end uses, making it difficult for suppliers to
track the exact use of each amount of epoxy purchased, making the quantity reported somewhat erratic. In
the automotive area, substitution for mechanical fasteners, welding and dissimilar materials bonding will
be the primary drivers of growth. A wide variety of industrial assembly applications will also grow as a
result of the ability to bond dissimilar materials and displace traditional fasteners, reducing assembly
costs.
Sa
m
Demand for epoxy adhesives in Western Europe grew by an average of 3.2% from 2005 to 2007. In 2008,
demand grew by 2.4%. Germany, France and the United Kingdom together account for over 60% of
Western European epoxy consumption. Epoxy consumption is expected to decrease sharply in 2009 by
about 10% and then recover in the following years. During the next five years, little or no growth rate is
expected. From 2010 onwards, epoxy film adhesives will have the highest growth. Most of the growth
will occur in the automotive market, as plastics and aluminum slowly replace traditional steel as materials
of construction. The use of epoxy adhesives in the aerospace industry is expected to grow at an average
annual rate of about 5% as a result of the growth of the aerospace industry, especially because of the
production of the big Airbus A380 in Western Europe as well as increasing use in aerospace applications.
Epoxy use in electronics will also grow, but more in value than in quantity.
In the rest of Europe, demand for epoxy adhesives has been growing at 2.9% per year between 2002 and
2005 and at 6.5% between 2005 and 2008. After the economic downturn in 2009, a market growth of
about 4.5% per year is estimated through 2013.
•
SRI CONSULTING
DECEMBER 2009
76
20
09
In Japan, the major market of epoxy adhesives is construction/civil engineering, which has been stagnant
in the past several years. Consumption peaked (11 thousand metric tons) in 1996 mainly because of the
unusual procurement demand for construction/civil engineering projects that resulted from the major
earthquake in the Kobe area in January 1995; then demand dropped to the current level. Growth is not
expected in coming years because of the slump in the construction/civil engineering industry. Demand for
epoxy adhesives in the electrical and transportation industries is relatively stable, with some increase or
decrease depending on the economy of each industry.
om
In China, about 7% of epoxy resin was consumed to produce adhesives in 2007. Consumption of epoxy
adhesive has increased rapidly in the last five years. Epoxy adhesives have become the product of choice
in construction applications. They are also used in the manufacturing and repair of automobiles, marine
vessels, refrigeration equipment, mechanical equipment, instrumentation and solar heaters. Construction
adhesive is the major application of epoxy adhesives in China. The growth rate of epoxy resin adhesive
consumption will be 5% per year in the next five years in China.
or
t
fr
Epoxies are used in a wide variety of applications. Industrial applications are the most common, where
adhesives provide particularly high bond strength under demanding operating environments. The intensity
of use in the automotive segment has been growing; however, unit production of automobiles declined
significantly in 2008. In North America auto production declined each year after 2005, with 2008
production at 80% of the 2005 level. While new construction also significantly declined in North America
in each year after 2005, the use of epoxies benefited from its use in public highways, which were less
impacted by the economic recession and in concrete repair, which is were less expensive than concrete
replacement. Other segments were generally impacted by constrained spending in 2008, with the
exception of noncivilian aerospace and selective new applications such as wind turbines for electric
power generation.
ep
Table 35
North American Consumption of Epoxy Adhesives—2008
Percent
(volume basis)
Industrial
Automotive
Construction
Aerospace
Other
34
20
11
9
7
19
pl
e
R
Segment
SOURCE:
Product assembly, original equipment
Side molding, door frames
Concrete repair, road markers
Surface mounts
Honeycomb adhesives, engine covers
Consumer glues
100%
SRI Consulting.
Sa
m
Total
Sample Applications
•
SRI CONSULTING
DECEMBER 2009
77
FIGURE 15
North American Consumption of Epoxy Adhesives—2008
Industrial
34%
Aerospace
7%
Electronic/
Electrical
9%
om
Construction
11%
20
09
Other
19%
Automotive
20%
or
t
fr
Overall, North American consumption grew from 2005 to 2007 but declined in 2008, following trends in
the auto industry and general manufacturing economy. Consumption declines continued into the first half
of 2009. With eventual economic recovery, consumption is expected to resume average growth of about
2.5-3.0% per year, with industrial, construction and automotive segments leading growth.
ep
Epoxy adhesive consumption in Central and South America in 2008 was about 3.3 thousand metric tons,
neat basis. Consumption in the region is dominated by uses in manufacturing assembly, followed by
automobile and truck manufacture as well as aircraft in Brazil. While some slowing of consumption
occurred in 2008, average annual growth of 3.0-4.0% is expected through 2013.
A breakdown of epoxy adhesives consumption in Western Europe in 2008 is shown in Figure 16.
pl
e
R
FIGURE 16
Western European Consumption of Epoxy Adhesives—2008
Other
20%
Industrial
35%
Sa
m
Electronic/
Electrical
2%
Aerospace
8%
Construction
14%
Automotive
21%
In Japan, epoxy adhesive consumption by type of cross-linker by volume in 2008 was as follows: 46%
epoxy-polyamide (based on dimer acid) (for construction in warm climates), 38% epoxy-aliphatic
polyamine (based on ethylene diamines, isophorone diamine, m-xylenediamine, etc.) (for construction in
•
SRI CONSULTING
DECEMBER 2009
78
cold climates), 10% epoxy-aromatic amine (based on m-phenylene diamine, etc.) (for transportation), 6%
other (cross-linkers such as dicyandiamide, adipic acid, dihydrazide, etc.) (for electric/electronics and
transportation).
Table 36
Chinese Consumption of Epoxy Adhesives—2008
Segment
Percent
(volume basis)
Construction
Automotive
Industrial
Other
65
15
10
5
5
Concrete repair, road markers
Side molding, door frames
Surface mounts
Product assembly
Consumer glues
om
SOURCE:
Sample Applications
100%
SRI Consulting.
fr
Total
20
09
China’s consumption of epoxy adhesives is shown below.
ep
or
t
In China, at least 65% of epoxy adhesive consumption in 2008 was in construction and civil engineering.
The successful bidding and holding of Beijing Olympic games had a great influence on China’s economy.
The economy of China expanded rapidly during 2007 and the beginning of 2008. The real estate market
has also boomed since 2001. The annual growth rate for epoxy resin adhesive consumption was above
10% per year in 2004-2007, with a high of 39.3% in 2006. The booming automobile manufacturing
industry also led to increased consumption of epoxy resin adhesives; the consumption for automobiles
accounted for about 15% of the total epoxy adhesive consumption in 2008. Another important application
of epoxy adhesives is electrical use, which represent about 10%.
pl
e
R
In Other Asia, 75-85% of epoxy adhesive consumption in 2008 was in construction and civil engineering,
while the balance was used in electrical, transportation, and other applications.
Consumption by market
Table 35 shows 2008 consumption of epoxy adhesives by major region and market.
Sa
m
Transportation. In the transportation industry, epoxy adhesives are used in automobiles and trucks and for
military and commercial aircraft. In the automotive segment, epoxies benefit from the increasing use of
plastics and fiber-reinforced composite parts, which are usually based on epoxy resins. Also, the
vibration-damping abilities of epoxy adhesives help to continue their displacement of mechanical
fasteners for metal bonding. Epoxy adhesives are particularly useful in high-temperature under-the-hood
applications, including valve covers, timing chain covers and chassis/powertrain parts.
One-component epoxy systems that contain latent curing agents, such as dicyandiamide, adipic
dihydrazide, or amine adduct, are used for hem-flange bonding and reinforcing of structural steel sheets.
The adhesives are cured at the same time as the autobody coating at 170°C for 20 minutes at baking
electrodeposition coating. Epoxy adhesives can tolerate such high baking temperatures. However, the
usage of epoxy adhesives after autobody baking is not popular, because other types, such as moisture-cure
•
SRI CONSULTING
DECEMBER 2009
79
20
09
polyurethane, pressure-sensitive adhesives (acrylic) and synthetic rubber–based hot melts have enough
adhesive strength for bonding various parts to the body. Two-component epoxy-polyamide adhesives are
used for housing applications such as oil elements, motor magnets, filters, radiators, and so forth. Such
components are being increasingly produced by subassembly suppliers to automotive OEMs. Specific
examples of the application of epoxy adhesives in body construction include use in wheel arch areas and
for the front pillar, which are difficult to reach with spot welding. Epoxies also find use in brake and
clutch bonding.
A procedure known as weld bonding is sometimes used in auto production. This process involves the use
of epoxy adhesives and welding for bonding metal. The epoxy systems add extra stiffness to the joint that
can provide extra strength in vehicle crashes.
om
Epoxy adhesives use in automotive repair remains limited. Their use is typically restricted to secondary
panels because the bond may stiffen primary panels, thus changing the performance of crumple zones that
are part of the vehicle design and critical to performance in an accident. Overall adhesives use in car
repair is increasing, however, as more plastic is used in vehicles. Most of the adhesives are used in lowperformance interior applications.
or
t
fr
Most of the epoxy adhesives in the aircraft/aerospace segment are used in joining composite parts because
these systems achieve very high shear strength. For example, aircraft engine covers are often manufactured
with a core of aluminum honeycomb bonded to a metal skin to dissipate heat and suppress noise; epoxy
adhesives not only serve to keep the layers together but also act as a stiffener.
R
ep
Following the economic recession in 2001, the global commercial aircraft segment began a recovery in
2003; this recovery accelerated through 2004-2006, but the industry began to decline again in 2007-2008
with another recession. Prospects for civil aviation growth over the next five years continue to improve,
perhaps in 2010 and beyond in the United States. Adhesives use will benefit disproportionately at a
greater rate than aircraft unit production since the increasingly used composite materials in new aircraft
designs are held together with epoxies, saving weight and therefore fuel. Revenue from defense contracts
for military/aerospace equipment has also shown strength from continuing conflicts in Southwest Asia
(Afghanistan and Iraq). New civilian aircraft, such as the triple-deck 550-passenger Airbus A380, have
found enormous weight savings with 25% of its structure using composite materials and adhesives.
m
pl
e
Major adhesives producers for the aerospace segment include Cytec, Hexcel, Henkel and 3M. 3M epoxybased tape is used on Airbus jet wings. The product is a foam tape that is coated with both an acrylic and
a toughened epoxy adhesive and is used to adhere a steel scuff strip to the aluminum wing. The tape sticks
to the two different surfaces and is flexible enough to compensate for the different expansion coefficients
of the two surfaces. The product has been in use on existing planes for over twenty years, and Airbus has
begun to include it in its design of new aircraft.
Sa
In Western Europe, a major use of epoxy adhesives in the automobile transportation industry remains in
hem-flange bonding. With the popularity of hem-flange bonding in the Western European automobile
industry, the number of spot welds in visible body areas can be reduced. Some car producers use
plastisols with spot welding instead of epoxy adhesives for cost reduction. However, there is some
concern about the toxicity of decomposition products of the plastisols when exposed to the high
temperatures of spot welding. As a result, epoxies or epoxy/urethane hybrids may be used in greater
quantities since they improve stiffness, strength, and crash performance, as well as providing sealing
properties. The adhesive/sealant may be applied manually by spraying or by robot.
•
SRI CONSULTING
DECEMBER 2009
80
20
09
Other uses of epoxy adhesives are in bonding steel to plastic or composite parts, such as radiators, hoods
and doors, headlights, and trunk lids. Components such as doors, trunk lids and hoods are being
increasingly produced by subassembly suppliers to automotive OEMs. Polyurethane adhesives still
dominate in these applications, however, in the ratio of approximately 5:1. Epoxy adhesives are used for
sheet metal stiffening (e.g., in the handle areas) by the application of epoxy resin fiberglass sheets. Weld
bonding is increasingly being used in car body assembly.
In Japan, epoxy adhesives for use in composites/parts for aerospace are exported.
om
One industry issue facing epoxy adhesives is recycling, a process in which the presence of any
thermosetting material causes considerable problems. Some companies acquire ISO 14000 certification as
part of their environmental management. The ISO issue is that it is advisable to separate all parts by type
of material, such as steel, PVC, ABS, polypropylene, and so forth, in preparation for recycling. Epoxy
adhesives make it difficult to separate each material, as they produce a very strong bond. The adhesives
industry believes that epoxy adhesives are indispensable to automobile production; however, this issue
might become important in the future. Debonding is possible for epoxy adhesives, but requires
application of high temperatures for a long period of time.
or
t
fr
Construction. The construction industry traditionally has consumed considerable quantities of epoxy
adhesives in finishing floors and walls of commercial and residential structures. Their high strength and
chemical resistance make them useful in repairing cement and between new and old layers of cement,
particularly in load-bearing applications. Typical formulations for these applications are two-component
epoxy-polyamide systems; polyamines are often added to accelerate cure in low-temperature weather.
R
ep
In Japan, in 1998, the Yokohama Rubber Company developed a one-component epoxy-blocked
polyamine (ketimine) adhesive that balances storage stability with cure speed and adhesion strength. This
product (brand name Adguard) is currently promoted in civil engineering applications, such as bridges
and road construction. This system is expected to grow in the market gradually. In 2005, Konishi
developed a “hard-type” one-component epoxy-blocked polyamine (brand name Bond Uniepo), which
has the same level of tensile strength and flexural strength as general structural two-component epoxy
adhesives.
pl
e
In structural bonding applications, elastomers are often added to formulations to improve durability. The
improved performance of elastomer-modified epoxy adhesives (especially silyl-modified polyether) was
best demonstrated during the Kobe earthquake, when buildings bonded by elastomer-modified epoxy
adhesives experienced less damage.
Sa
m
Industrial applications. The industrial sector’s demand for epoxy adhesives comes primarily from product
assembly applications. Furniture and appliance manufacturers, for example, use epoxy adhesives to bond
plastics to metals or other plastics. Epoxies are also used in the bonding of various electrical components
such as transformer and electric motor cores and machine mountings. Other uses include skis, railroad
joints, tool handles, appliances and abrasives.
Another industrial application for epoxies is in the high-value electronics market, where epoxy adhesives
hold the dominant share. The largest uses for epoxy adhesives are in battery sealants, magnet bonding,
and TV tube manufacture. In printed circuit board manufacture, metal powders are blended with epoxy to
make conductive adhesives, which is a low-volume but high-value market. Epoxies are used, for example,
as die-attachment adhesives to bond integrated circuit boards to copper-lead frames. Epoxy is particularly
well-suited to this type of application because of its temperature resistance and high strength. Silicones
can also be used in this application, but switching to these polymers requires modification of dispensing
equipment.
•
SRI CONSULTING
DECEMBER 2009
81
The development of high-purity epoxies, with low chlorine content, has allowed them to displace
polyimides in integrated circuit board applications. Globally, die-attachment adhesives consumption
exceeds $50 million per year. Henkel is a leading North American supplier through its Ablestik™ brand.
20
09
Single-component epoxy/anhydride systems are also used in electrical applications. These systems require
a higher cure temperature (150-180°C) than blocked polyamines, but they do not release blocking agents
that can contaminate the substrate. Obviously, heat-resistant substrates are necessary in order to use these
adhesives. Applications include electronic chip/cupper foil/dye-bonding on circuit boards, liquid crystal
displays and speakers.
om
Other. Epoxy adhesives are also used in do-it-yourself applications where brand name plays an important
role. Henkel through its Loctite® brand and Huntsman are the major suppliers.
Market participants
Global
fr
The following table lists major global epoxy adhesive suppliers:
Table 37
Company
Headquarters
or
t
Major Global Suppliers of Epoxy Adhesives as of October 2009
Trade Name
Pliogrip®
Columbus, Ohio,
United States
Bostik
Paris-La-Defense,
France
Chemence Ltd.
Corby, United Kingdom EA series
Aerospace, industrial,
transportation
ep
Ashland Specialty
Chemical Company,
Valvoline Division
Bostik ®
Remarks
Largest markets are in
North America.
Industrial
Industrial
R
pl
e
Segments
Sales in North America,
Europe and Asia. Also
supplies UV-curing
anaerobics.
Woodland Park, New
Jersey,
United States
FM®, Cycom®
Aerospace
Dow Chemical U.S.A.
Midland, Michigan,
United States
D.E.R.®, D.E.N®
Automotive and general Major integrated
adhesive applications
production in North
America.
H.B. Fuller Company
St. Paul, Minnesota,
United States
“FE” Series
Automotive, industrial,
woodworking
North America.
Henkel Corporation
Durabond®
Teroson®
Industrial, medical
devices, automotive
Henkel has the largest
market share in most
world regions.
Hexion Specialty
Chemicals
Columbus, Ohio,
United States
Epon™, Eponol™,
Eponex™, Epi-Rez™
Full range of
applications including
aerospace, electronic
and construction
Major integrated
production in North
America.
Sa
m
Cytec Industries Inc.,
Cytec Engineered
Materials
•
SRI CONSULTING
DECEMBER 2009
82
Major Global Suppliers of Epoxy Adhesives as of October 2009
Company
Headquarters
Trade Name
Segments
Araldite®
Epocast®
Epibond®
Major integrated
Automotive, DVD
production in North
bonding, electronics,
pipe bonding, aerospace, America.
OEM assembly
Salt Lake City, Utah,
United States
ITW Devcon
Danvers, Massachusetts, Permatex®,
United States
Permapoxy®
Lord Corporation
Cary, NC
Lord®
Industrial
Permabond
Pottsown, Pensylvania,
United States
Permabond®
Industrial, electronics
(conductive)
Sika
Baar, Switzerland
Sikadur®
3M
United States
3M™, Scotch-Weld™
3M Light Cure
Construction, concrete
repair and coatings
om
the North America and
Europe.
Construction
fr
Industrial, OEM
assembly, electronics,
tapes, labels
or
t
SRI Consulting.
20
09
Huntsman
SOURCE:
Remarks
North America
R
ep
More than 200 companies formulate epoxy adhesives in North America. All the global companies shown
in Table 37 above have significant market shares in North America. Regional major epoxy adhesives
formulators in North America are shown below in Table 38.
Table 38
Major North American Suppliers of Epoxy Adhesives as of October 2009
pl
e
Company
Trade Name
Segments/ Comments
Gorilla™ Epoxy
Consumer DIY
Hexcel Corporation
Redux®
Aerospace, industrial/European
sales through distributors
Super Glue®
Consumer DIY
Polymeric Systems Inc.
Aquamend®, PSI Fast Steel®
Consumer DIY
Protective Coating Co.
PC® series (paste epoxies)
PC™ series (putty epoxies)
Consumer DIY
Royal Ahesives and Sealants, LLC
HardmanEpoweld®
Industrial, construction
m
Gorilla Glue Company
Sa
Pacer Technology
SOURCE:
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
83
In early 2005, the U.S.-based Elementis’ epoxy and urethane business was sold to Royal Adhesives and
Sealants LLC.
20
09
Cytec Industries, Henkel, Hexel, Huntsman and 3M are the major producers of structural adhesives for
the aircraft/aerospace market. The major suppliers to the automotive industry are H.B. Fuller, Cytec, 3M
and Lord. Henkel and ITW Devcon are major participants in the two-package consumer adhesives
business.
The Major North American–based producers of epoxy resins, which are used in the formulation of epoxy
adhesives, are listed in the following table:
Table 39
om
Major North American Producers of Epoxy Resins
Annual Capacity
as of January 1, 2009
(thousands of
metric tons)
Company and
Location
fr
Dow Chemical
Freeport, Texas, USA
Trade Name
250



or
t
Hexion Specialty Chemicals, Inc
Argo, Illinois, USA
Deer Park, Texas, USA
Norco, Louisiana, USA
194
ep
Huntman International LLC
Huntsman Advanced Materials
McIntosh, Alabama, USA
R
70
Resinas y Materiales, S.A. de C.V.
Tultitlan, Edo de Mexico, Mexico
D.E.R.®
D.E.N.®
Epon™, Eponol™,
Eponex™, Epi-Rez™
Araldite®
Epocast®
Epibond®
pl
e
10
SOURCE:
SRI Consulting.
m
Sa
Sales of most of the major global epoxy adhesive suppliers (as shown in Table 40) are represented in
Central and South America. Brazil is the leading producer and consumer in the region.
The following table lists the producers of epoxy resins, used in the formulation of epoxy adhesives in
Central and South America:
•
SRI CONSULTING
DECEMBER 2009
84
Table 40
Central and South American Producers of Epoxy Resins
Company and
Location
25
Epoxiquim C.A.
Valencia, Venezuela
na
HuntsmanAdvanced Materials Química Brasil Ltda.
Taboão da Serra, São Paulo, Brazil
10
RESIMON, C.A.
Valencia, Venezuela
na
SRI Consulting.
or
t
Western Europe
Araldite®
fr
SOURCE:
D.E.R.®
D.E.N®
om
Dow Brasil S.A.
Guarajá, São Paulo, Brazil
Trade Name
20
09
Annual Capacity
(thousands of
metric tons)
Sa
m
pl
e
R
ep
Epoxy adhesives are supplied to the Western European market by many companies, a number of which
serve only a limited geographic area. The more significant suppliers are shown in Table 41.
•
SRI CONSULTING
DECEMBER 2009
85
Table 41
Major Western European Suppliers of Epoxy Adhesives—2009
Bostik
France
Adekit
Aerospace
Automotive
Ardal, Evo-Stik
Bostik, Sader
Eponal (France)
Epoxan (Germany)
TopFix
Construction
Flooring
DIY
Dow Automotive
Switzerland
Betamete
EFTECa
Switzerland
Efbond
H.B. Fuller
Germany
Automotive
Transportation
Henkelb
Germany
<5
<5
5-10
Automotive
<5
General assembly
<5
or
t
Resiweld
Epolite
H.B. Fuller
om
Axson France S.A.
France
Market Share
(percent)
Segments
20
09
Trade Name
fr
Company
General industry
Automotive
Electronics
Engineering
Transportation
5-10
Durabond
Loctite® Hysol®
General assembly
Electronics
5-10
Araldite
Epibond
Aerospace
Industrial
Marine
10-15
National Starch & Chemical Ltd.d
United Kingdom
Permabond
Industrial
<5
3M Belgium
Belgium
3M Scotch Weld
Electronics
Aerospace
Automotive
ep
Macroplast
Metallon
Terokal
R
Henkel Technologies Loctitec
Germany
Sa
m
pl
e
Huntsman Advanced Materials AG
Switzerland
5-10
a.
Formed in 1997. 100% owned by Ems-Chemie since 2007, when H.B. Fuller sold its 30% share.
b.
Includes Teroson, which was acquired in 1992, and Boston SpA (Maxfin), acquired in 1994.
c.
100% owned by Henkel.
d.
Since 2008, 100% owned by Henkel Corporation, Germany.
SOURCE:
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
86
Several other companies produce and sell smaller amounts of epoxy adhesives covering a more restricted
market spectrum or in a more limited geographic area; these include Kömmerling GmbH, Huntsman
Advanced Materials AG (Agomet™), Dunlop Adhesives and Vagnone-Boeri (which is a major supplier
to Fiat).
20
09
Dow Automotive has a 60% market share of the Western European automotive and transportation
segment of the epoxy adhesives market through the full acquisition of Gurit-Essex in 2001. In 1997,
Gurit-Essex substantially strengthened its market position with the acquisition of Ciba’s automotive
adhesives business.
fr
om
Some epoxy adhesives suppliers in Western Europe are merely resellers, and some buy formulated
adhesives and modify them to suit special use requirements. Of the three major epoxy resin
manufacturers, Dow became the top producer after Ciba Specialty Chemicals and Shell Chemicals sold
their epoxy resin activities. Ciba Specialty Chemicals, which dominated the Western European market for
epoxy adhesives for the automotive and aerospace markets until late 1996, sold its automotive adhesives
business to Gurit-Essex in 1997, and it was acquired by Dow Automotive in 2001. Then at the beginning
of 2000 Ciba spun off its Performance Polymer division through a management buy-out to create a new
independent chemical company called Vantico. Headquartered in Basel, Switzerland, Vantico AG, which
supplies most industries with its adhesives, with particular emphasis on the automotive and aerospace
sector, was acquired by Huntsman in 2003 and became Huntsman Advanced Materials.
or
t
Henkel is also an important supplier of epoxy adhesives to the automotive industry. 3M and Henkel are
major competitors for Huntsman Advanced Materials in aerospace. Bostik is active in the construction
industry, primarily where its epoxy adhesives have established themselves in the repair of damaged metal
and concrete pipes in sewer and potable water networks and in industrial tile applications.
Sa
m
pl
e
R
ep
Major epoxy adhesive companies in Asia are listed in the table below. In China, construction and civil
engineering applications are supplied mainly by local producers, while electrical and transportation
applications are often supplied by foreign-invested companies.
•
SRI CONSULTING
DECEMBER 2009
87
Table 42
Major Asian Producers of Epoxy Adhesives—2009
Company
Trade Name
Segments
20
09
China
Electronic
China Bluestar Chengrand Chemical Co., Ltd.
Chengdu, Sichuan
Construction, electronic
Ciba Fine Chemical (Guangdong) Co., Ltd.
Panyu, Guangdong
Construction, civil engineering
om
Beijing Lintite Adhesive & Sealants Co., Ltd.
Beijing
Guangzhou Dongfeng Chemicals Industrial Co., Ltd.
Guangzhou, Guangdong
Xiangfan, Hubei
Loctite
fr
Henkel Loctite Adhesives (China) Co., Ltd.
Shanghai Research Institute of Synthetic Resins
Shanghai
Electronic
Shenzhen No.1 Fine Chemical Co., Ltd.
Shenzhen, Guangdong
Taizhou Henco Glue Co., Ltd.
Taizhou, Zhejiang
Tianjin Yun’an Chemical Plant
Tianjin
pl
e
R
ep
or
t
Shanghai Caoyang Building Adhesive Plant
Shanghai
Truetime Complex Material Co., Ltd.
Kunshan, Jiangsu
m
India
Anabond Ltd.
India
Sa
Japan a
Japan, China
Aika Aibon
Construction, wood, filter
Alteco Co., Ltd.
Japan, Singapore
Alteco
Fast cure
Cemedine Co., Ltd.
. Japan, Thailand, Taiwan
Cemedine
Construction, DIY
•
SRI CONSULTING
DECEMBER 2009
88
Company
Trade Name
Segments
20
09
Japan a (continued)
Henkel-Cemedine
Japan, Thailand
Automobile
Bond
Construction, civil engineering,
DIY, automobile
Mitsui Chemicals, Inc.
Japan
Struct Bond
Electric
Nagase Chemtex Corporation
Japan, China
Denatite
Resinous Kasei Co., Ltd.
Japan
Electric, transportation
Elastic adhesives
Civil engineering
Electric
fr
Resinous Bond
Epodine
FC-Hard
or
t
Sanyu Rec Co., Ltd.
Japan
om
Konishi Co., Ltd.
Japan, China
Sanyubond
Electric
Sekisui Bond
Construction
Sho-Bond
Sunstar Engineering, Inc.
Japan
Penguin Cement
Automobile
Japan, China, Thailand
ThreeBond
Electric, construction
Tilement
Axia Korea (Alteco Korea Inc.)
Republic of Korea
Axia
Fast cure
Republic of Korea
Maxbond
Electric
Sekisui Fuller Co., Ltd.
Japan
pl
e
R
ep
Sho-Bond Kagaku Co., Ltd.
Japan
Tilement Corp.
Japan, Thailand
Sa
m
Korea, Republic of
O-Kong Corporation
Republic of Korea
•
SRI CONSULTING
DECEMBER 2009
89
Company
Trade Name
Segments
Great Eastern Resins Industrial Co., Ltd.
Taiwan, China
20
09
Taiwana
KS Bond
Kuo Sen Enterprise Co., Ltd.
Taiwan
Tai Tsang Co., Ltd.
Taiwan
Taiwan, China
Weld Want Group
Taiwan, China
With locations of other plants in Asia.
SOURCE:
SRI Consulting.
fr
or
t
a.
om
Evo Bond
Asia
pl
e
R
ep
More than thirty companies supply epoxy adhesives in Japan, reflecting the widespread use of these
products and their established position in the industry. The three largest epoxy adhesives suppliers are
Konishi Co., Ltd.; Tilement Corp.; and Sho-Bond Kagaku Co., Ltd. These companies supply adhesives to
the construction and civil engineering industry; thus, the consumption volume is fairly large with lower
prices. Konishi has the largest market share in Japan. On the other hand, several niche adhesives
companies supply epoxy adhesives to the automobile, aerospace and electronic industries as one
component at higher prices. Two-component systems are used primarily in building, construction and
civil engineering applications. The major marketing areas of these companies are in the country or in
Asia.
Sa
m
The following table shows the major epoxy resin producers in China:
•
SRI CONSULTING
DECEMBER 2009
90
Table 43
Major Chinese Producers of Epoxy Resin
Company and
Plant Location
China
20.0
Baling Petrochemical Co., Ltd.
Sinopec Epoxy Resin Division
Yueyang, Hunan
50.0
om
Anhui Hengyuan Chemical Co., Ltd.
Huangshan, Anhui
Blue Star New Material Co., Ltd.
Wuxi Resin Factory
Jiangyin, Jiangsu
Wuxi, Jiangsu
50.0
30.0
fr
Changshu Jiafa Chemical Co.
Changshu, Jiangsu
5.0
90.0
Dow Chemical Zhangjiagang Co., Ltd.
Zhangjiagang, Jiangsu
41.0
Guangzhou Epoxy Base Electronic Material Co., Ltd.
60.0
Huangshan Runfa Chemicals (Group) Co., Ltd.
Huangshn, Anhui
15.0
Huntsman Advanced Materials (Guangdong) Corp.
Panyu, Guangdong
23.0
pl
e
R
ep
or
t
Dalian Qihua Chemical Co., Ltd.
Dalian, Liaoning
m
Jiahua Chemicals Corporation
Jiaxing, Zhejiang
Sa
20
09
Annual Capacity
as of 2009
(thousands of
metric tons)
7.0
Jiangsu Sanmu Group Co.
Jiangsu Sanmu Chemical Co., Ltd.
Yixing, Jiangsu
42.0
Kingboard (Jiangyin) Petrochemical Co., Ltd.
Jiangyin, Jiangsu
25.0
Kingboard (Panyu Nansha) Petrochemical Co., Ltd.
Panyu, Guangdong
52.0
Kukdo Chemical (Kunshan) Co., Ltd.
Kunshan, Jiangsu
60.0
Langfang Honghuanglan Chemical Group Co.
Langfang, Hebei
•
5.0
SRI CONSULTING
DECEMBER 2009
91
Major Chinese Producers of Epoxy Resin
Company and
Plant Location
China (continued)
Nan Ya Epoxy Resin (Kunshan) Co., Ltd.
Kunshan, Jiangsu
105.0
Norsun Chemicals Limited Company
Langfang, Hebei
20.0
om
Shanfu Chemical Co., Ltd.
Huangshan, Anhui
9.0
Shanghai Resin Factory Co., Ltd.
Shanghai
5.0
fr
Tianjin KC Chemical Co., Ltd.
Tianjin
5.0
15.0
Zhejiang Jiangshan Chemical Co., Ltd.
Jiangshan, Zhejiang
10.0
or
t
Wuxi DIC Epoxy Resin Co., Ltd.
Wuxi, Jiangsu
SRI Consulting.
ep
SOURCE:
20
09
Annual Capacity
as of 2009
(thousands of
metric tons)
Sa
m
pl
e
R
The following table shows the major epoxy resin producers in Japan and Other Asia:
•
SRI CONSULTING
DECEMBER 2009
92
Table 44
Major Producers of Epoxy Resins in Japan and Other Asia
Annual Capacity
as of 2009
(thousands of
metric tons)
Remarks
20
09
Company
Japan
15
3
37
35
40
40
na
22
11
54
Also produce cross-linkers.
Modified epoxy resins.
Owned by Mitsui Chemicals and DIC.
Mainly electronic application.
na
na
na
or
t
A.K. Industries
Petro Araldite Pvt. Ltd.
Sanvy Resins & Coatings Pvt. Ltd.
Korea, Republic of
33
205
50
30
Four plants in Korea. Also produce cross-linkers.
Chang Chun Plastics Co., Ltd.
Nan Ya Plastics Corp.
Union Material Technology Corp.
135
215
40
pl
e
R
ep
Hexion Specialty Chemicals Korea Co., Ltd.
Kukdo Chemical Co., Ltd.
Kumho P & B Chemicals, Inc.
Pacific Epoxy Co., Ltd.
Taiwan
fr
India
Captive for adhesives.
om
ADEKA Corporation
Asahi Kasei Epoxy Co., Ltd.
DIC Corporation
Dow Chemical Japan Ltd.
Japan Epoxy Resins Co., Ltd.
Nagase Chemtex Corporation
Nippon Epoxy Resin Manufacturing Co., Ltd.
Nippon Kayaku Co., Ltd.
Tohto Kasei Company, Ltd.
80
Owned by Dow Chemical.
Two plants in Taiwan.
Thailand
Aditya Birla Chemicals (Thailand) Ltd.
SRI Consulting.
m
SOURCE:
Sa
Some epoxy resin producers also produce polyamine or dimer-acid-based polyamide cross-linkers, which
are most commonly used for adhesives. In addition to the listed companies above, other major producers
of these cross-linkers for adhesives, include Air Products (plants in Japan, and Sanwa Chemical in
Singapore), Cognis (Japan), Fuji Kasei (Japan), Sanho Chemical (Tawian) and Yun Teh Industrial
(Taiwan).
•
SRI CONSULTING
DECEMBER 2009
93
Prices
20
09
Prices for epoxy adhesives vary with the application. Overall prices for U.S. epoxies averaged about
$4.10-4.25 per kilogram (formulated basis); however, prices vary by formulation and grade. For example,
a filled epoxy for automotive applications costs $7-10 per kilogram (formulated basis) in the United
States and 8.90-10.90 euros ($13-16) in Western European markets. Hybrid epoxies used in the
automotive industry are generally less expensive. In Western Europe an epoxy-PVC hybrid will cost $610 per kilogram, whereas a typical list price for liquid epoxy for aircraft or aerospace applications is about
$17-60 per kilogram. General industrial epoxies average about $7 per kilogram.
om
Prices for epoxy adhesives in Western Europe have increased over the past three years due to higher raw
material prices and energy costs. In 2009, the prices for epoxy adhesives were reduced because of lower
raw material prices and the economic recession. Prices are expected to increase through 2013 as raw
material prices are expected to rise again at the end of the recession. Epoxy adhesives for industrial
flooring applications range in price between $5 and $10 per kilogram.
fr
In Japan, the market price for one-component epoxy adhesives is ¥700-1,600 per kilogram ($7.00-16.00
per kilogram, commodity grade) and the price for two-component epoxy adhesive is ¥600-1,000 ($6.0010.00) per kilogram. The price for electronics adhesives formulated with electro-conductive fillers is
higher, estimated at ¥2,000-100,000 ($20-100) per kilogram, depending of the type of filler (carbon,
nickel or silver).
ep
or
t
In China, the price for epoxy adhesives for transportation uses is usually 40-50 renminbi ($5.70-7.20) per
kilogram. The price for epoxy adhesives for construction and industrial applications is 25-40 renminbi per
kilogram, equal to $3.60-5.70 per kilogram.
Future trends and strategic issues
pl
e
R
Epoxy adhesives continue to make inroads into traditional mechanical fastening applications. For
example, bicycle manufacturers are increasingly using epoxies in advanced (premium) bicycle designs
such as composite frames made of glass fiber, Kevlar® or carbon fiber and also as an alternative to
welding in aluminum tube frames or steel tube brazing or welding. However, mass-produced bicycles for
the North American market are mostly made in China, so a large portion of epoxy use is outside the
region.
Developers of epoxy adhesives are focusing their product development efforts on the following.
Film Adhesives with Lower Curing Temperatures. The application includes automobile and
electrical uses. The lower cure is becoming more crucial as automakers reduce the temperatures
of the ovens for the electrodeposition coating (E-coat) (from the current 170°C to 130°C) to bake
newer coatings in order to reduce energy costs. In automobile part binding applications or
electrical part binding applications, induction heating is also used to accelerate cure.
Sa
m
●
●
Hybrid Systems. Epoxy-urethane, epoxy-acrylic, and epoxy-silyl modified polyether are
examples of hybrid resins that balance properties and costs. These systems target improved
toughness and flexibility, in particular, and also expand the possible substrates that can be bonded
with epoxy adhesives. Concerning reduced surface preparation, especially for oily surfaces,
epoxy-SGA (second-generation acrylic) takes advantage of this application.
•
SRI CONSULTING
DECEMBER 2009
94
Structural bonding tape that combines the “immediate” adhesion properties of pressuresensitive adhesives with the high final bonding strength of structural epoxies. 3M continues to be
a leader in this technology.
●
More rapid development of physical properties at lower initiation temperatures, which will
require the use of improved (and costly) accelerators. Polythiol-based cross-linker is used in
rapid-cure applications (5-30 minutes cure after blending), and epoxy acrylate is used for much
faster cure time by UV radiation.
●
Greater crash resistance of epoxy adhesives as a consequence of increased demand for sideimpact resistance for cars. Urethane foam is inserted inside the metal panels of doors to fill space
and to improve crash resistance.
●
Improvement of adhesion to light metals (Al, Mg), which are increasingly used in the
automotive industry as a replacement for steel. New epoxy adhesives for bonding on aluminum
also have to be adapted to the mechanical characteristics of aluminum, which are different from
those of steel.
●
Reworkable, Repeelable Epoxy Adhesive
fr
om
20
09
●
Case 1 (reworkable/recyclable): To hold electronic components during assembly and
soldering and also to protect the solder during processing, and if errors occur in chip
manufacture, epoxy adhesives allow sections of the board to be reworked instead of
scrapping the complete board. The cross-linked polymer structure is controlled to be
relatively linear for this sort of adhesive, rather than to be a random three-dimensional
structure. Using such a linear polymer, the adhesive may be applied using conventional hot
melt equipment.
–
Case 2 (repeelable): To separate different material components, such as metal-plastic, for
recycling each material, repeelable adhesives are used. In order to make epoxy adhesives
repeelable, the following additives may be used in the formulation: (1) heat-expandable
microcapsules (repeelable by heating), (2) hydrophilic surfactants or water-absorbent
polymer (repeelable by immersing in boiling water), (3) repeelable electrically, such as 50 V
one minute (this is called the electrorelease system).
pl
e
R
ep
or
t
–
Polyurethane Adhesives
m
General description
Sa
Urethanes are extremely versatile compounds that are used in both adhesives and sealants. Polyurethane
(PU) adhesives have found broad application in many areas because of their excellent toughness, abrasion
resistance, good flexibility—especially at low temperatures—and good adhesion to a wide variety of
substrates. Some of the shortcomings of PU adhesives are poor resistance to temperature (limited to about
95°C) compared with epoxy adhesives, and UV radiation (depending on type of raw materials), and
mixing requirements (two-component systems only).
Polyurethane adhesives compete with epoxies in some applications. Generally, epoxies are favored for
bonding rigid substrates such as metals, whereas urethanes are favored for flexible materials like rubber,
plastics, plastic films and paper. Polyurethane adhesives are more flexible than epoxies with lower
modulus and greater tensile elongation. They typically have elongation of 200-250% vs. about 8% for
epoxies. Polyurethane adhesives have both relatively high shear and peel strength.
•
SRI CONSULTING
DECEMBER 2009
95
PUs are made by the reaction of a hydrogen donor (usually a polyol) and an isocyanate. The great variety
of combinations of components that can be used in the manufacture of polyurethane adhesives allows
tremendous scope for tailoring the properties of the adhesives to the needs of specific applications.
om
20
09
The most important isocyanate component used in polyurethane adhesives is polymeric diphenylmethane
4,4′-diisocyanate (PMDI). In Western Europe, no toluene diisocyanate (TDI) is used because of toxicity
concerns. In other regions, the only significant market is packaging laminates in which, because of the
low viscosity of TDI, thin layers of 100%-solids adhesives can be applied very quickly. Xylylene
diisocyanate (XDI) is also used in Japan. Aliphatic isocyanates—mainly hexamethylene-1,6-diisocyanate
(HDI), or sometimes isophorone diisocyanate (IPDI) and hydrogenated XDI—offer better light stability,
which is an important factor in coatings but much less so in adhesives, since the adhesive is usually
hidden by opaque surfaces. Aliphatics cost two to three times more than aromatic isocyanates, so use is
limited in such applications as food packaging.
fr
Generally, polyether polyols are used because of their low viscosity, low cost, versatility and acceptable
properties. Polytetramethylene ether glycol (PTMEG) polyols are premium types of polyether polyols that
display excellent physical properties. Polyester polyols are used where higher thermal stability, solvent
resistance, abrasion resistance, and better appearance are required; the disadvantages are medium to high
cost and high viscosity. The newly developed reactive urethane hot melt adhesives are usually based on
polyester polyols because of their high crystallinity or high glass transition temperature in the case of
amorphous polyester.
Sa
m
pl
e
R
ep
or
t
Polyurethane adhesives are used in adhesive systems in a variety of forms. Table 45 categorizes the types
of polyurethane adhesives and their applications.
•
SRI CONSULTING
DECEMBER 2009
96
Table 45
Types of Polyurethane Adhesives and Their Applications
Type of Polyurethane Adhesive
Application
20
09
Conventional Solvent
Thermoplastic Polyurethane
(high-molecular-weight polyurethane dissolved in large volume
of solvent, such as ethyl acetate, methyl ethyl ketone, toluene)
Used in footwear, leather, tape and film
Two-Package Reactive Polyurethane
Structural applications in construction and
automobile interiors
om
Polyether Polyol and Aromatic Isocyanate
Polyester Polyol/Polyester Resin
(high molecular weight) and Aromatic Isocyanate
Applications that require heat resistance and
better adhesive strength
Light packaging (food and nonfood) that does
not require heat resistance or cold-temperature
resistance
or
t
Polyether Polyol and Aromatic Isocyanate
fr
Dry Laminate
(solvents are removed and recovered/incinerated)
Polyester Polyol/Polyester Resin (high molecular weight)
and Aliphatic Isocyanate
ep
Moisture-Cure
Food packaging applications that require heat
resistance and better adhesion strength, such as
retort pouches
Wood flooring, panels, white board
Isocyanate-Terminated Polyester Polyol (high Tg or crystallinity)
Hot melt (auto interior film, architecture parts)
Waterborne
R
Isocyanate-Terminated Polyether Polyol (nonsolvent is possible)
Architecture (“on-site” application)
Water-Soluble Polymer (polyvinyl alcohol) and
Polymeric MDI; Two-Component
Oriented strandboard binder
Polyurethane Dispersion; One-Component (nonreactive)
or Two Component (with isocyanate)
Architecture (“on-site” application), auto
interiors, footwear and film
m
pl
e
Polyester Dispersion and Water Dispersed/
Modified Isocyanate; Two-Component
SRI Consulting.
Sa
SOURCE:
In addition, other reactive polyurethanes include a one-package type using blocked isocyanate, an
oxidation-reaction-type polyurethane, and a self-cross-linkable waterborne dispersion; however, these
types are generally used for coatings, not for adhesives. Besides dry laminate, there are different types of
processes; the wet laminate process uses other resins such as EVA emulsion.
•
SRI CONSULTING
DECEMBER 2009
97
Descriptions of major polyurethane formulations and their applications follow.
One-Component, Moisture Cure. These are isocyanate-terminated prepolymers (made by
reacting an excess of diisocyanate with a polyol to yield a compound with a net free NCO group)
applied in solution form. Curing takes place upon exposure to moisture, liberating carbon dioxide.
The moisture in the air is sufficient to cure the adhesive, but the substrates must have some
permeability to allow the moisture to get to the adhesive. Isocyanates react readily with a variety
of other functional groups, including those present in the substrates, thus obtaining strong
adhesive bonds. High-solid or nonsolvent-type formulations can be achieved by using high levels
of plasticizer or by applying adhesives at elevated temperatures in order to reduce viscosity.
Direct-glazing adhesives based on isocyanate moisture curing fall under this category. Polyether
polyol is used for liquid-type adhesives, while polyester polyol is used for hot melt types. The
prepolymers also can be blended with elastomers to form cements used to bond elastomers with
fabrics. These adhesives are also used to produce sandwich panels for recreational vehicles,
where an outer skin of fiberglass is bonded to a wood layer. Reactive hot melt adhesives based on
isocyanate moisture curing fall under this category but of course contain no solvent; for this
reason their growth has been impressive on a global scale.
●
Dry Laminate Types. In the dry laminate process, mostly two-component solvent-type (or
moisture curable, possibly) polyurethane is applied by roll coater to films (PET, nylon, polyolefin)
and foils. The solvents are flushed off, recovered, and/or incinerated prior to lamination.
Aliphatic isocyanates are used for food packaging, while aromatic isocyanates are used in
nonfood applications. Polyester polyol is often chosen as a polyol because of its strong bonding
and heat resistance. Dry laminate adhesives are well-established in food and industrial laminate
applications in Europe, Japan and Latin America, and also are rapidly penetrating into the North
American market, replacing solventborne and aqueous systems on a cost and performance basis.
Besides solvent types, safer waterborne and nonsolvent types have been developed recently as
follows:
ep
or
t
fr
om
20
09
●
Waterborne dry laminate. This is used only for light packaging applications. Because the
laminate line requires high energy for flush-off water and a lower line speed than solventtype dry laminates, this type is not popular.
–
Nonsolvent dry laminate. This can be used in most applications except foil, and the market is
growing. A flush-off line is not necessary (no water, no solvent), resulting in faster drying
speeds and less energy consumption than solvent types. As these adhesives have a short pot
life and must be applied at elevated temperatures (because of high resin viscosity), precise
process line control is necessary.
pl
e
R
–
Polyurethane Dispersions. Carboxylic-terminated polyester is synthesized between glycol and
dibasic acid in solvent. In particular, glycols of bulky structure and aromatic acid are used in
order to retard the hydrolysis (bulky structure prevents water attack on ester linkages). In order to
achieve higher molecular weight with higher acid functionality, polyhydroxy carboxylic acid,
especially dimethylol propionic acid (DMPA) and dimethylol butanoic acid (DMBA), are used
together as a resin intermediate. Hydroxyl-terminated polyester can be end-capped by isocyanates
to form isocyanate-terminated prepolymer. After carboxylic groups are neutralized by an amine,
the polymer can be dispersed by water. Then the isocyanate-terminated prepolymer’s molecular
weight is extended by reacting with diamine (as a chain extender), with no resultant active
isocyanate group n polymer chain. The solvent is vacuum-stripped in the final process; a small
amount of organic solvent is usually still present. This application includes footwear; polyurethane
dispersions can replace low-solid solventborne thermoplastic polyurethane adhesives.
Sa
m
●
•
SRI CONSULTING
DECEMBER 2009
98
Aqueous Vinyl Polymer Solution–Isocyanate Adhesives. These are two-component systems
consisting of polymeric MDI dissolved in plasticizers and a solution of a hydroxy-functional
polymer. The hydroxy-functional polymer used is often polyvinyl alcohol and thus these
formulations are often called water-based vinyl urethanes; however, carboxymethylcellulose and
hydroxymethylcellulose can also be used. This adhesive type was developed in Japan by Koyo
Sangyo together with Asahi Bond and Kuraray, and has been used in the wood adhesives market
since 1975. Since these adhesives do not emit any formaldehyde, they have gained attention as
alternative adhesives to prevent “sick house syndrome” and are widely used as high-performance
wood adhesives in Japan. Japanese producers have transferred the technologies to Southeast
Asian countries for the major purpose of exporting wood products back to Japan. These adhesives
are also produced in northern European countries where the sick house syndrome (also known as
sick building syndrome in the United States and Europe) is a concern.
●
Hot Melt Polyurethane Adhesives. Reactive hot melts are a special class of hot melt adhesives,
which were introduced to the market in the early 1990s. Reactive urethane hot melt adhesives are
produced by reaction of a polyester polyol with a diisocyanate. Polyester polyols used in the
system are often of the crystallizing type, but recently noncrystalline amorphous polyester polyols
have been developed for better wetting adhesion on plastic substrates. This type of hot melt does
not contain any solvent and is applied in molten form through designated hot melt applicators.
The adhesive strength increases upon cure.
fr
om
20
09
●
R
ep
or
t
In the past, urethane hot melt adhesives were applied mainly as a drop or thin bead and set
quickly, becoming structurally rigid in minutes. However, since around 1999, new urethane hot
melt gravure roll coaters have been developed to coat adhesives over a large area (generally with
a width of 1,000-1,200 mm, with a maximum width of 1,600 mm) with a very fast line speed.
This application method contributes significantly to increased demand for urethane hot melt
adhesives in laminate products. Polyurethane hot melts solidify quickly after roll-coating the
adhesive to films. In actual usage, hot melt adhesives are reactivated (e.g., with a heating gun),
and allowed to set quickly, followed by moisture cure.
Sa
m
pl
e
The table below compares the advantages and disadvantages of nonreactive hot melts, ambient-cure
nonsolvent reactive liquid adhesives and reactive hot melts.
•
SRI CONSULTING
DECEMBER 2009
99
Table 46
Property Comparison of Hot Melt Adhesives
Fast
One component
EVA, synthetic rubbers,
polyester, polyamide
Heat Resistance
Safety Concerns
Depends on polymer Tg,
but limited
Good
Good (no change)
Depends on type of monomer
used for the polymer
None
Storage Recommendations
None
Cost
Low-medium (depends on
type of polymer)
Initial Adhesive Strength
Final Adhesive Strength
Hydrolytic Resistance
Residual free monomer
(MDI, TDI, bisphenol A)
Store at low temperature;
avoid moisture for
polyurethane and epoxy
Medium
SRI Consulting.
ep
SOURCE:
Poor
Excellent
Excellent
Reactive
Hot Melt
120°C
Moisture cure
Fast
One component
Moisture-cure urethane
om
Process Time
Component
Chemical Examples
Room temperature
Moisture cure in urethane,
ketimine deblock in
epoxy, enamine
formation in acrylic
Slow
One and two component
Epoxy-ketimine;
moisture-cure urethane
Acrylic emulsion
Excellent
fr
150°C
None (thermoplastic)
or
t
Applied Temperature
Typical Type of Reaction
Nonsolvent
Reactive Liquid
20
09
Nonreactive
Hot Melt
Excellent
Good
Excellent
Excellent
Residual free MDI monomer
Fill nitrogen or carbon dioxide
in container, keep away from
moisture
Medium
pl
e
R
As the applied temperature of reactive urethane hot melts is lower than that of nonreactive hot melts, the
application realm can be extended to some plastic substrates susceptible to heat damage. The table above
indicates that moisture-cure urethane hot melts are unique among specialty adhesives because they offer
the fast setting time of nonreactive hot melts and the excellent adhesive strength properties of nonsolvent
liquid-type reactive adhesives.
m
Consumption by region
Sa
Regional consumption of polyurethane adhesives is presented in Table 47.
•
SRI CONSULTING
DECEMBER 2009
100
Table 47
World Consumption of Polyurethane Adhesives
Total
2002
2005
2008
2008
106.3
na
71
11.8
34
na
na
na
126.7
7.5
76
13
35.0
58.9
24.1
54
112.1
8.3
80
14
36.0
72.0
32
59.4
570
42
730
145
423
925
319
302
223.1
395.2
413.8
3,456
om
North America
Western Europe
Rest of Europe
Japan
China
Rest of Asia
Rest of the World
Valueb
(millions of
dollars)
20
09
Volumea
(thousands of
metric tons)
Data include only the binder portion of the adhesive (polyol plus
isocyanate component).
b.
Fully formulated adhesives containing polyurethane.
SRI Consulting.
or
t
SOURCE:
fr
a.
Figure 17 shows the regional breakdown for polyurethane adhesives in 2008, based on market value. The
total consumption is estimated at $3.5 billion.
ep
FIGURE 17
World Consumption of Polyurethane Adhesives—2008
R
Central and
South America
1.2%
Rest of the
World
8.7%
Rest of Europe
4.2%
China
26.8%
Sa
m
pl
e
Rest of Asia
9.2%
Japan
12.2%
Western Europe
21.1%
North America
16.5%
Attractive properties and a relatively low price for polyurethane adhesives will contribute to global
consumption growth on the average of 4-5% per year beginning in 2010 with expected economic
recovery. They will continue to maintain a major share of the specialty adhesives market in the future,
with much of the increase being driven by growth in demand from the automotive and packaging
industries.
•
SRI CONSULTING
DECEMBER 2009
101
In North America, polyurethanes are used in hot melts (nearly 100% polyurethane), solvent-based
adhesives, and polymer dispersion emulsion (water-based) adhesives. The following pie chart shows the
distribution:
20
09
FIGURE 18
North American Consumption of Polyurethane Adhesives—2008
Solvent Based
13%
om
Dispersions
28%
fr
Hot Melt
26%
R
ep
or
t
In the United States prior to 2006, construction had been the leading growth segment, growing at an
average annual rate of about 8% in volume. Since 2006, construction consumption has declined
significantly for new construction. There has been some increased use of spray-applied polyurethane
foams in retrofits as energy saving insulation; this is not considered an adhesive application but is often a
sealant application when used for filling gaps. In packaging, polyurethane consumption growth prior to
2007 was about 7% per year, by volume, however growth was flat in 2008. Transportation consumption
has declined significantly from 2006-2008, following declines in automobile and civilian aircraft
production. Both construction and transportation segments are expected to resume growth as the United
States emerges from economic recession. Other less significant segments are mostly flat, with the
exception of textiles and fibers, which is declining. Following a continuing decline across all segments in
2009, overall U.S. gowth is expected at an average annual rate of 2.5% through 2013.
Sa
m
pl
e
Polyurethane adhesive consumption in Canada and Mexico in 2008 was about 30 thousand metric tons
and 6 thousand metric tons, respectively. Consumption is dominated by uses in construction. Canada’s
growth of consumption in construction has been the fastest in the region, albeit from a much smaller base
than the United States. The overall average annual growth rate in volume was about 8% from 2002 to
2006. Since 2007 Canadian consumption growth has slowed and consumption declined in 2008. In
Mexico volume growth was about 6% from 2002 through 2006, but growth has declined since then as
automobile assembly/production has declined. Overall growth averaging 2.5% per year is expected for the
North American region through 2013.
Polyurethane adhesive consumption in Central and South America in 2008 was about 8.3 thousand metric
tons. Consumption in the region is dominated by uses in construction, followed by transporation
including automobile and truck manufacture as well as aircraft in Brazil. While some slowing of
consumption occurred in 2008, propects for growth are more positive than in North America and average
annual growth of 3.0-4.0% is expected through 2013.
•
SRI CONSULTING
DECEMBER 2009
102
20
09
In Western Europe, the most important market for structural and semistructural polyurethane adhesives is
the automotive industry, accounting for an estimated 30 thousand metric tons in 2008. Of this total, 23
thousand metric tons were used for automotive glazing, up from around 11 thousand metric tons in 1996.
It is expected that structural and semistructural polyurethane adhesives in the Western European
automotive and transportation sectors will grow at an average rate of 2.6% per year between 2009 and
2013.
Overall, Western European use of polyurethane adhesives is forecast to average growth of 2.2% per year
over 2009-2013. Generally, the increased use of plastics in cars will lead to increased use of PU
adhesives, because of their ability to bind plastic to metal and plastics to plastics. Hot melt adhesives will
find increased use in laminating of internal upholstery. The fastest growth rate is expected for the hot melt
type and for water-based PU adhesives in place of solvent-based systems.
fr
om
Aqueous polyurethane dispersions will steadily increase their market share in the field of technical
lamination for the automotive as well as the furniture industry. The trend is supported by some EU
regulations, which intend to reduce the use of solvent-based adhesives. The share of waterborne
polyurethane systems in comparison to solventborne or solvent-free (hot melt) systems in Europe is
shown in the following table:
Table 48
or
t
European Consumption of Polyurethane Adhesives—2008
(percent)
35
99.5
20
65
0
80
Hot Melt
0
0.5
0
SRI Consulting.
R
SOURCE:
Solvent-Based
ep
Automotive—Technical Lamination
Furniture—Technical Lamination
Footwear—Shoe-Sole Bonding
Water-Based
pl
e
Solvent-based systems will continue to be largely used in vehicle manufacture, since it is hard to equal
their performance with water-based systems. French car manufacturers reportedly are more inclined to
use one-component solvent-free PU adhesives than are German car manufacturers.
m
The footwear industry in Europe is also reluctant to replace solvent-based systems with alternative
systems that may not have the same long-term performance. Footwear repair shops tend to use solventbased PU adhesives because of their versatility.
Sa
Hot melt PUs are used in footwear, but not for shoe-sole bonding, since their performance is considered
insufficient for this application.
In Japan, polyurethane consumption in 2008 is estimated at 83 thousand metric tons on a formulated basis
(36 thousand metric tons on a resin basis), including laminate adhesives, nonsolvent-type moisture-cure
adhesives, water-soluble polymer isocyanate adhesives, high-molecular-weight polyester resin
(solventborne or waterborne) with isocyanate cross-link adhesives, conventional solventborne twocomponent adhesives, and moisture-curable hot melt adhesives, as shown in the table below. The resin
content of liquid-type polyurethane adhesives varies depending on the type—about 25-65% of formulated
volume, while hot melt has almost 100% resin content.
•
SRI CONSULTING
DECEMBER 2009
103
Table 49
Japanese Consumption of Polyurethane Adhesives—2008
(percent)
By Value
39
20
12
24
2
3
46
12
12
20
4
5
Laminate
Water-Soluble Polymer Isocyanate
Liquid Solvent Type
Moisture-Cure (liquid, nonsolvent)
Moisture-Cure (hot melt)
Polyester-Isocyanate (solventborne and waterborne)
Total
100%
100%
SRI Consulting.
om
SOURCE:
20
09
By Volume
ep
or
t
fr
In China, the consumption of polyurethane-based adhesives totaled about 300-320 thousand metric tons
on a formulated basis. More than 90% of the consumed polyurethane adhesive is solventborne, and the
remaining is water-based. In most liquid polyurethane adhesives, the resin content is 20-25%. High
solids–content polyurethane adhesives have been developing very rapidly in recent years. There is very
little use of hot melt polyurethane adhesives in China. The major applications for polyurethane adhesives
include footwear, packaging materials, construction and transportation. Footwear is the largest end use,
accounting for about 49% of the market. The second-largest market is packaging materials, sharing at
least 28% of the market. Construction and transportation are the third-largest application. China was the
largest global automobile producer in 2008. Polyurethane adhesives are widely used for attaching
automotive plastic parts and for installing windshields. The average growth rate of polyurethane adhesive
consumption will be 8-10% in the next five years in China.
pl
e
R
In Other Asia in 2008, consumption of polyurethane-based adhesives totaled about 75-80 thousand metric
tons on a formulated basis, about 90% of which was solventborne, with the remaining 10% water-based,
including water-soluble polymer isocyanate adhesives for woodworking and waterborne polyurethane
dispersion adhesives for footwear; only about 0.1% was hot melt.
Consumption by market
Sa
m
The 2008 regional consumption of polyurethane adhesives by end use is shown in Table 50.
•
SRI CONSULTING
DECEMBER 2009
104
Table 50
Consumption of Polyurethane Adhesives by Major Region and Segment—2008a
(as polyurethane resin base, thousands of metric tons)
Rest of
Europe
38
27
28
1
4
2
11
23
18
19
2
4
7
7
3
5
3
neg
0.3
2
1
112
80
14.3
Construction
Packaging
Transportationb
Footwear
Electrical/Electronics
Woodwork
Other
Total
(percent by weight)
29
22
24
2
5
9
9
100%
100%
10
19
2
0.1
na
4
1
36
China
21
35
21
neg
2
14
7
100%
Other
Asia
8
20
5
35
0
4
0
2
15
1.2
10
0
3
0
72
31.2
China
Other
Asia
28
53
5
0.3
na
11
3
11
28
7
49
< 0.5
5
neg
7
42
4
31
na
17
na
100%
100%
100%
Japan
fr
34
24
25
1
4
2
10
Rest of
Europe
ep
Total
Western
Europe
or
t
Construction
Packaging
Transportationb
Footwear
Woodwork
Other
North
America
Japan
20
09
Western
Europe
om
North
America
Breakdowns include nonrigid adhesives used in packaging but do not include polyurethane
adhesive that is used in the textile industry to bind carpet underlay or in foundries to bind
sand cores.
b.
Includes automotive, trucks, aircraft, railroad and marine. Apparently, polyurethane adhesive
consumption for transportation is lower in Asia; this is probably because (1) Japanese
automobile manufacturers replaced ABS parts and PVC interior film bonding by polyurethane
adhesives with “polyolefin parts/film bonding without adhesives (by heat adhesion, possible
with adhesion promoters only,” and (2) instead of polyurethane adhesives, acrylic foam tape
is used for bonding roof bows/sliding roofs/header rails on car roofs, and synthetic rubber–
based hot melt is used for bonding headlight assemblies in place.
m
pl
e
R
a.
SRI Consulting.
Sa
SOURCE:
Examples of key applications by major end-use industry are as follows:
●
Construction
–
Bonding polyurethane foam sandwich elements to outer layers of plastics or metals
–
Bonding of roof sheeting
–
Construction of sandwich panels
–
Bonding of cladding panels to buildings
•
SRI CONSULTING
DECEMBER 2009
105
Footwear
– Attaching soles and insoles to leather uppers
●
Marine
– Bonding plastics to structural members
– Insulation sandwich construction for liquid natural gas tankers (combined with urethane
sealants)
●
Automotive/Transportation
– Bonding the windshield, rear window and fixed parts of side windows to the body frame
– Bonding of stiffener panels to roof, door, etc.
– Bonding of plastics, such as rigid PVC, cellulose ethers, polycarbonates and polyesters, to
other plastics or dissimilar materials, especially for interior parts
– Bonding sheet molding compound (SMC) and other plastic panels to other automotive
structural members
– Bonding steel and aluminum panels to steel frames, composite roofs and side panels, glass
rooflights, and structural glazing in railroads and other commercial transport
– Manufacture of vacuum-formed panel laminates
●
Packaging
– Lamination of films and foils for food products and dry goods packaging (e.g., boil-in-bag
food pouches)
– Bonding clear labels to cans
●
Electronics
– Bonding ferrite particles to magnetic tapes and loudspeakers to cabinet assemblies
R
ep
or
t
fr
om
20
09
●
pl
e
Omitting the windshield application, which consumes more than 20 thousand metric tons worldwide,
most applications tend to use less than one thousand metric tons and are mostly niche markets—often
satisfied by smaller producers.
Developments in selected end-use markets for urethane adhesives are outlined in the following sections.
Sa
m
Transportation. The automotive market has been a key growth area for urethane adhesives because of
their suitability in plastic-to-plastic and plastic-to-glass bonding. Urethanes are used for bonding SMC,
fiberglass-reinforced plastics (FRP), ABS, polycarbonate, acrylic sheet and polyurethanes. They can also
be used to bond polyolefins, but require a primer. Urethanes are best suited to bonding plastic to metal or
plastics that are dissimilar in coefficient of thermal expansion.
Urethane adhesives are used in applications such as bonding of interior sheets and carpets.
●
Assembly/Bonding of Thermoplastic Parts and Components. Polyurethane adhesives are used
increasingly to bond parts to the body after painting. For example, Opel and Volkswagen are
using a polyurethane adhesive to bond the cockpit area into the body of some models. Some
companies use polyurethane adhesives for certain low-bond-strength applications, such as roof
bows, sliding roofs, header rails on car roofs, wheel arches or, in the case of Renault’s all 2009 SPECIALTY CHEMICALS
•
SRI CONSULTING
DECEMBER 2009
106
composite Espace, body panels (acrylic foam tape is often used in these applications). Urethanes
are also used to bond polycarbonate automotive headlight assemblies in place (synthetic rubber–
based hot melt adhesive is often used in this application).
SMC Bonding. Polyurethanes are broadly used in sheet molding compound (SMC) applications
in vehicles, typically for the assembly of square-back station wagons and sport utility vehicle
(SUV) rear doors. Polyurethane adhesives contribute rigidity to the vehicles; by doing so, there is
a significant savings in weight. Semistructural polyurethane adhesives are also used in recreational
vehicles and commercial vehicles, particularly in delivery vans (e.g., for bonding the cargo
compartment to the driver’s cabin). In the latter case, they also serve as sealants. Epoxy resins
also compete with polyurethanes in SMC applications.
●
Other Uses. Sliding roof reinforcement (BMW, Renault, Volkswagen), glass moonroof
construction, bonding of nonremovable plastic parts to the car’s aluminum body (Renault) and,
more traditionally, in applications such as seam sealing, hem-flange bonding, spot-weld bonding
and bonding of antiflutter stiffeners.
om
20
09
●
fr
In commercial vehicles and buses, polyurethanes are used to bond steel and aluminum panels to steel
frames, composite roofs and side panels, glass and plastic dome lights, and structural glazing. In railway
rolling stock, polyurethanes are employed in bonding the components to the body.
or
t
North American consumption grew from 2005 to 2007 but declined in 2008, following trends in the auto
industry and general manufacturing economy. Consumption declines continued into the first half of 2009.
With eventual economic recovery, consumption is expected to resume average growth of about 2.5-3.0%
per year, with construction, packaging and transportation segments leading growth.
R
ep
Polyurethane adhesive consumption in Central and South America in 2008 was about 8.3 thousand metric
tons. Consumption in the region is dominated by uses in construction, followed by transportation,
including automobile and truck manufacture as well as aircraft in Brazil. While some slowing of
consumption occurred in 2008, propects for growth are more positive than in North America and average
annual growth of 3.0-4.0% is expected through 2013.
m
pl
e
In Western Europe, increased use of fiberglass-reinforced plastics to reduce weight in the construction of
inner city trains has made the use of elastic polyurethane adhesives indispensable. PU adhesives are used
to bond the fiberglass-reinforced plastic elements to the steel or aluminum frame. In trucks, polyurethanes
are used to bond the prefabricated sleeping cabin to a steel frame and then the finished sleeping cabin on
top of the driver’s cabin. Modern streetcars can weigh up to one-third less than older models and many
are now made with as much as 400 kilograms of adhesives per wagon.
Sa
In other transportation areas, replacement of mechanical fasteners continues to offer opportunities for
urethane adhesives, including applications in the truck and marine segments (e.g., trim for boat cabins and
personal craft such as jet skis). These segments tend to require a somewhat different mix of adhesive
performance characteristics since the high cycle times and exceptional cosmetic qualities needed with
automobiles are less critical in these applications.
In shipbuilding one of the most demanding applications is in the insulation of tanks for transporting
liquefied gas. Adhesives are used to bond sandwich elements to each other and to the metallic hull.
Adhesives used have to withstand temperature differences in the range of –160°C to 60°C as well as have
high mechanical resistance. Polyurethane products have established themselves as the adhesive of choice.
•
SRI CONSULTING
DECEMBER 2009
107
Reactive urethane hot melt adhesives are increasingly being used in automotive manufacturing
applications—mainly to bind interior PVC films (recently many Japanese automobile manufacturers have
been using polyolefin film instead of PVC film, and do not use polyurethane adhesives).
20
09
Other. Applications for urethane adhesives have developed in other markets as end users make product
changes, in some cases in response to environmental issues. In packaging, clear labels have been
replacing inks used for labeling on containers. Above-average growth is also expected for urethane
adhesives in flexible packaging laminates, which are in greater demand because of end users’ drive
toward reduction in packaging and the replacement of metallic cans and glass containers by plastic.
In packaging laminates, polyurethane adhesives are used to bond aluminum film with sealable plastic
films, whereby a surface pretreatment of the plastic film is generally required. A quick onset of adhesion
is generally required, since the operating speed of laminating machines is 300 meters per minute.
or
t
fr
om
In Japan, nonsolvent moisture-curable urethane adhesives are used in interior on-site architecture
applications such as wood flooring and bath unit installation. For the bonding of floor wood panel and
subflooring, nails and vinyl acetate adhesives were used in the past, but later methods used both nails and
urethane adhesives, which contributed to growth in consumption in the late 1990s. Also, the use of wood
flooring is increasing in Japanese architecture, at the expense of traditional tatami flooring (a floor
covering made of tightly woven grass and straw that does not use adhesives), and this has contributed to
the growth of urethane adhesives consumption during the 2000s. Conventional solventborne polyurethane
adhesives are used for bonding decorative films to glued lumber at factories; however, these polyurethane
adhesives require methylene chloride solvent, which is not preferred because of environmental reasons,
and the adhesives have changed to other solvent-type polyurethane adhesives or to polyurethane hot
melts.
ep
A growing application for polyurethane adhesives is in the bonding of the blades of wind turbines for
electric power generation. Large blades require upward of 100 kilograms of adhesive.
R
Reactive hot melt polyurethanes find use in panel assembly, windows and doors, automotive interiors,
headlight assemblies, furniture, book binding and product assembly. They are also widely used in the
textile industry for laminating fabric, seaming and stitch replacement, and for producing foam and fabric
laminates.
m
pl
e
Loctite (Henkel Technologies) introduced a hot melt adhesive (PROFORM™) that is a 100%-solid,
single-component, structurally reactive urethane used in heat-sensitive applications. This adhesive can
attach difficult-to-bond substrates such as polypropylene and polyethylene and is capable of filling large
gaps. 3M offers a line of moisture-cure urethanes (JetWeld™) that reportedly achieve bond strength of
1,000 psi in ten minutes.
Sa
These new-generation urethane hot melt adhesives find applications in high-production environments,
such as electronics, PVC window profiles and appliance housings.
Market participants
Global
The following table lists the major global suppliers of polyurethane adhesives:
•
SRI CONSULTING
DECEMBER 2009
108
Table 51
Major Global Suppliers of Polyurethane Adhesives as of April 2009
Paris-La-Defense,
France
Dow Automotive
Applications
Aerospace,
Adhesive—bonding
construction, repair thermoset composites
Isogrip®
Construction
Adhesive—gap filling
for wood
Isoset®
Construction
Adhesive—structural
bonding for wood
Pliobond ®
Flexible packaging Adhesive—closures,
general purpose
Pliogrip®
Motor vehicle
assembly
Bostik HeavyDuty
Construction
Adhesive®
Construction
Supergrip®
Motor vehicle
assembly
Adhesive—wood,
aluminum, steel
bonding
Thermogrip®
General assembly
Hot melt adhesive—
metal, plastic and wood
bonding
or
t
Bostik
Segments
Pliogrip®
Midland, Michigan, Betamate™
United States
Window glass adhesive
Motor vehicle
assembly
Adhesive—sound
deadening, void filling,
structural stiffening
EFTEC®
EFBOND
Motor vehicle
assembly
Auto repair
Window glass adhesive Owned 100% by EmsAdhesive—trim
Chemie, Switzerland,
assembly
since 2007. Was a
joint venture between
Ems-Chemie and H.B.
Fuller’s automotive
division.
Swift®bond
Helmitin®
Adhesive—bonding
Woodworking,
wood, metal and glass
automotive,
construction,
packaging, textiles
Shoe construction Gluing shoe soles
Europe.
Elastic attachment, Adhesive—bonding
diapers and
polyolefin and
underwear
nonwoven materials
North America.
ep
H.B. Fuller
Zug, Switzerland
Adhesive—subflooring
and floor joist
assemblies
Motor vehicle
assembly
R
pl
e
Sa
m
Forbo
Adhesive—SMC
bonding
Adhesive—trim
assembly
Betafoam™
Romanshorn,
Switzerland
North America.
Motor vehicle
assembly
Betaseal™
Ems-EFTEC
Remarks
20
09
Ashland Specialty
Columbus, Ohio,
Chemical Company United States
Trade Name
om
Headquarters
fr
Company
St. Paul, Minnesota, Optimelt® 100
United States
Rakoll®
Woodworking,
high-pressure
laminates and other
general uses
•
Adhesive—water-based
and liquid moisturecuring polyurethanes,
bonding wood veneers,
metal skins, and
fiberglass panels
SRI CONSULTING
DECEMBER 2009
109
Major Global Suppliers of Polyurethane Adhesives as of April 2009
Company
Headquarters
Trade Name
Segments
Applications
Düsseldorf,
Germany
Technomelt®
Packaging,
construction
Hot melt adhesive—
paper and general
bonding
Sika
Baar, Switzerland
Sikaflex®
Automotive,
construction
Automobile glass to
steel bonding, broad
range of construction
adhesives
Company websites and literature.
om
SOURCE:
market share in most
world regions.
20
09
Henkel
Remarks
North America
fr
The global companies listed in Table 51 are among the leading formulators of urethane adhesives for the
North American market. More than sixty firms are formulators in the region and the market is very
fragmented.
or
t
Dow Automotive, a business unit of Dow Chemical, is a major supplier of polyurethane adhesive systems
to the transportation industry in North America.
Table 52 lists the major regional suppliers of polyurethane adhesives to the North American market:
ep
Table 52
Major North American Suppliers of Polyurethane Adhesives as of April 2009
Elmer’s Products/
Berwind Corporation
Segments
Applications
ProBond®
Automotive
Construction, automotive and
repair
Auto replacement glass adhesive
General assembly—wood, metal, plastic, glass
Consumer
Adhesive—wood and general bonding uses
A division of ADCO Global serving North America.
m
a.
Titan®
Pur-200
pl
e
ADCO Products, Inc.a
Trade Name
R
Company
SRI Consulting.
Sa
SOURCE:
Elmer’s Products, formerly part of Borden was purchased by private equity firm Berwind Corporation in
2003.
Major North American–based producers of diisocyanates and polyols, used in the formulation of
polyurethane adhesives are listed in the following table:
•
SRI CONSULTING
DECEMBER 2009
110
Table 53
Major North American Producers of Polyurethane Adhesive Ingredients
AnnualCapacity
(thousands of
metric tons)
Arch Chemicals, Inc. Performance Products
Bradenburg, Kentucky, United States
Products
20
09
Company and
Location
Polyether polyols
na
Wyandotte, Michigan, United States
160
290
317
30
Toluene diisocyanate
p,p′-Methylene diphenyl diisocyanate
Polyether polyols
Polyether polyols
Bayer de Mexico, S.A. de C.V.
Santa Clara, Edo de Mexico, Mexico
11
BASF, Polymers Division, Urethanes
Geismar, Louisiana, United States
Carpenter Co.
Pasadena, Texas, United States
ep
Dow Chemical Canada, Inc.
Sarnia, Ontario, Canada
or
t
Channleview, Texas, USA
New Martinsville, West Virginia, United States
South Charleston, West Virginia, United States
220
300
238
41
185
Polyether polyols
p,p′-Methylene diphenyl diisocyanate
Polyether polyols
Polyether polyols
Polyether polyols
fr
Bayer Material Science LLC
Polyurethane Division
Baytown, Texas, United States
om
136
Dow Chemical U.S.A.
Freeport, Texas, United States
Polyether polyols
75
Polyether polyols
100
240
491
p,p’-Methylene diphenyl diisocyanate
Polyether polyols
Huntsman International LLC
Huntsman Polyurethanes
Geismar, Louisiana, United States
73
Polyether polyols
INVISTA, Inc.
La Porte, Texas, United States
41
Polyether polyols
Lamberti Synthesis USA, Inc.
Chattanooga, Tennessee, United States
45
Polyether polyols
Penn Specialty Chemicals, Inc.
Memphis, Tennessee, United States
27
Polyether polyols
42
Polyether polyols
6
Polyether polyols
Sa
m
pl
e
R
La Porte, Texas, United States
125
Polioles S.A. de C.V.
Lerma, Edo. de Mexico, Mexico
Poliurequimia, S.S. de C.V.
Ocoyoacac, Edo. de Mexico, Mexico
Sartomer Company Inc.
Grand Junction, Colorado, United States
SOURCE:
12
Hydroxyl-terminated polybutadiene
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
111
Sales of most of the major global polyurethane adhesive suppliers (as shown in Table 52) are represented
in Central and South America. Brazil is the leading producer and consumer in the region.
20
09
The following table lists the producers of MDI and polyester polyols, which may be used in the
formulation of polyurethane adhesives in Central and South America:
Table 54
Central and South American Producers of Polyurethane Adhesive Ingredients
Annual Capacity
BASF Poliuretanos Ltda.
Mauá, São Paulo, Brazil
Polyester polyols
45
MDI
8
or
t
COIM Brasil Ltda.
Vinhedo, São Paulo, Brazil
12
fr
Bayer SA
Belford Roxo, Rio de Janeiro, Brazil
Brampac S.A. (Cromitec)
Piracicaba, São Paulo, Brazil
Products
om
Company and
Location
Polyester polyols
20
Polyester polyols
5
Polyester polyols
5
Polyester polyols
Reichhold do Brasil Ltda.
Mogi das Cruzes, São Paulo, Brazil
5
Polyester polyols
Scandiflex do Brasil S.A. Indústrias Químicas
Mauá, São Paulo, Brazil
8
Polyester polyols
ep
Dow Química Ltda.
(formerly Rohm and Haas)
Jacareí, São Paulo, Brazil
pl
e
R
Plaquimet
Burzaco, Buenos Aires, Argentina
SRI Consulting.
m
SOURCE:
Western Europe
Sa
The global companies listed in Table 51 are among the leading formulators of polyurethane adhesives in
Western Europe. Table 55 shows major regional producers of polyurethane adhesives in Western Europe.
•
SRI CONSULTING
DECEMBER 2009
112
Table 55
Major Western European Suppliers of Polyurethane Adhesives—2009
Trade Name
Axson France S.A.
Hutchinsona
Kömmerling Chemische Fabrik KG
Adekit
Le Joint Français
Köraplast , Körapur, Köramelt
a.
Markets
Aerospace, automotive
Assembly and bonding of automobiles
Footwear, automotive, transportation
Owned 100% by the Arkema Group.
SOURCE:
SRI Consulting.
20
09
Company
Most of the above companies supply polyurethanes primarily for structural applications.
or
t
fr
om
Dow Automotive is the largest producer of semistructural polyurethane adhesives/sealants for automotive
glazing in Western Europe, with a market share in that market of approximately 50-55%. The company,
located at Freienbach, Switzerland, is a subsidiary of Dow Chemical. It specializes in supplying urethane
adhesives and sealants to the automotive and transportation industries; in addition to direct glazing, it
supplies adhesives for bonding plastics and steel parts, sealants for a variety of joints, and body-stiffening
members. In January 1997, the company acquired the automotive adhesives business of Ciba, thereby
expanding into the epoxy sector. Dow Automotive developed BETAMATE™, a two-component (2K) PU
adhesive technology, which enables bonding a broad range of materials with different thermal expansion
coefficients, such as aluminum, steel and plastic composites. It was first applied on the new BMW 7
Series to bond the aluminum roof to the steel body. BETAMATE 2K PU adhesives complemented
BMW’s high-end material mix, enabling both lightweight design and reduced CO2 emissions.
pl
e
R
ep
EFTEC was formed in early 1997, with the combination of the global automotive adhesives, sealants and
coatings businesses of Ems-Chemie and H.B. Fuller Co. in a joint venture of mixed geographic
ownership. EFTEC Europe is 70% owned by Ems-Togo and 30% by H.B. Fuller; EFTEC America is
70% H.B. Fuller and 30% Ems-Togo. In 2007, H.B. Fuller exited the joint venture and sold all its shares
to Ems-Togo, which renamed itself to Ems-EFTEC. EFTEC is one of the leading suppliers of
polyurethane adhesives and sealants to the automotive industry, with a market share of 10-20% in
Western Europe overall and 30% of the polyurethane automotive market. The company’s core
technological areas are in moisture-cure, two-component and heat-cure polyurethane adhesives. EFTEC
also produces epoxy adhesives, but has a much smaller position in this technology.
Sa
m
In the Arkema Group (renamed from ATOFINA Group), Hutchinson supplies adhesives and sealants to
the automotive industry and has a small presence in windscreen bonding in France. Bostik and Sika are
mainly suppliers of semistructural polyurethane sealants for nonautomotive uses; Sika supplies these
sealants for the manufacture of buses and railroad coaches (e.g., for bonding windows of trains). The
company does, however, also supply polyurethane glazing adhesives to BMW and Opel, and is growing
in importance.
Bostik also supplies urethane adhesives to the automotive industry while Ashland Chemical imports
Pliogrip® urethane adhesives from the United States and supplies them to the German automotive
industry.
The major suppliers of semistructural urethane adhesives for construction and industrial uses are Bostik,
Henkel and Sika. Henkel now after the acquisition of National Starch supplies urethanes for construction
applications such as bonding external panels to buildings while Kömmerling supplies urethane adhesives
and sealants for construction, automotive and general industrial uses.
•
SRI CONSULTING
DECEMBER 2009
113
Asia
om
20
09
More than thirty companies produce polyurethane adhesives in Japan. Adhesives producers in packaging
applications include DIC, Mitsui Chemicals and Toyo Morton; these companies captively produce raw
material polyester polyol. Mitsui Chemicals also produces polyether polyols and isocyanates as raw
materials for polyurethane adhesives. Adhesives companies, such as Konishi, Cemedine, Sunstar
Engineering, Yokohama Rubber, Oshika Corporation, Koyo Sangyo and Aica Kogyo, supply
polyurethane adhesives to construction or woodwork applications. Toyobo, Hitachi Kasei Polymer and
Toagosei are major high-molecular-weight polyester resin suppliers, and these companies market
hydroxyl-terminated polyester resins to cure with small volume of isocyanate cross-linkers. Specialty
isocyanates (such as HDI based or hydrogenated XDI) or XDI is used in food packaging applications,
while TDI based, or some MDI based are used in light-adhesion-strength type packaging applications. In
heat-cure applications or hot melts, TDI-based polyisocyanate use has been decreasing relative to MDIbased systems because the toxicity of free isocyanates is a concern.
The major urethane adhesives suppliers in Asia are listed in Table 56.
Table 56
fr
Major Asian Suppliers of Polyurethane Adhesives—2009
Company and Location
Trade Name
Beijing Comens YanShan Tech. Co., Ltd.
Beijing
Tonsan
ep
Beijing
or
t
China
Bostik Findley (Guangzhou) Adhesive Co., Ltd.
Laminate
Transportation
R
Transportation
Fushun Jianhe Polyurethane Plant
Fushun, Liaoning
pl
e
Guangtai Chemical Paper Co., Ltd.
Anji County, Zhejiang
Lianggong
Haining Jinchao Industrial Co., Ltd.
Haining, Zhejiang
m
Packaging
Sa
Henkel (Guangzhou) Adhesives Technology Co., Ltd.
(formerly Panyu Dongsung NSC Chemical)
Panyu, Guangdong
Xiangfan, Hubei
Packaging
For footwear
Huitian
Transportation
Jialipu Adhesive & Ink Co., Ltd.
Kunshan, Jiangsu
Laminate
Jinan Shanxing Chemical Co., Ltd.
Jinan, Shandong
•
SRI CONSULTING
Remarksa
DECEMBER 2009
114
Remarksa
Trade Name
20
09
China (continued)
Luoyang Jiming Chemical Industry
Luoyang, Henan
Solventborne, and hot melt PU adhesives
for footwear applications
Shanghai
Solventborne, waterborne
Wuxi Wan Li Adhesive Materials Factory
Wuxi, Jiangsu
Waterborne, hot melt
om
Jili
Yangzhou Chenhua Group Co., Ltd.
Yangzhou, Jiangsu
Transportation
fr
Zhejiang Golden Roc Chemical Co., Ltd.
Taizhou, Zhejiang
Japan, China, Indonesia
Cemedine Co., Ltd.
Japan, Taiwan, Thailand
AU
WPI
Auton-Adher
One package
ep
Japan
or
t
Japan b
Cemedine
Construction
DIC Corporation
Japan, India
R
Dainichiseika & Color Co., Ltd.
Japan, China
Laminate
Laminate, waterborne
Hitachi Kasei Polymer Co., Ltd.
Japan, China
Haibon/Libon
Hot melt, solventborne
Konishi Co., Ltd.
Japan, China
Bond
Construction, WPI
Koyo Sangyo Co., Ltd.
Japan, China, Indonesia
KR Resin
WPI
Sa
m
pl
e
Tyforce
Mitsui Chemicals Inc.
Japan, China, Taiwan, Malaysia
Nogawa Chemical Co., Ltd.
Japan, China
Laminate
Diabond
Solventborne
No-Tape Industrial Co., Ltd.
Japan, Vietnam (contract)
For footwear
•
SRI CONSULTING
DECEMBER 2009
115
Remarksa
Trade Name
Oshika Co., Ltd.
Japan, China, Indonesia, Vietnam
Selecty, PI bond
WPI
Laminate
Toyo Morton Co., Ltd.c
Japan, Malaysia
Laminate
om
Rock Paint Co., Ltd.
Japan
Taiwanb
Greco
Nanpao Resins Co., Ltd.
Taiwan, China, Vietnam
Nanpao
Footwear (waterborne and solventborne)
fr
Great Eastern Resins Industrial Co., Ltd.
Taiwan, China
For footwear
WPI = waterborne polymer isocyanate adhesives for woodworking/glued lumber.
b.
c.
Company equally owned by Toyo Ink and Rohm and Haas.
ep
SRI Consulting.
or
t
a.
SOURCE:
20
09
Japan (continued)
pl
e
R
Hitachi Kasei Polymer is the leading producer of moisture-cure polyurethane hot melt adhesives in Japan,
with about 40% of market share. The company expanded production capacity for these adhesives to 2
thousand metric tons in March 2003. Other polyurethane hot melt suppliers include Toagosei, Henkel
Japan (formerly Nihon NSC), and Nitta Zelatine.
Sa
m
Toyo Morton is one of the major producers of polyurethane adhesives for dry laminate packaging
applications because of the strong position held by its parent company, Toyo Ink Manufacturing, as a
producer of gravure inks. Also, Mitsui Chemicals (formerly Mitsui Chemicals Polyurethanes) has a strong
position as a urethane resin supplier. DIC Corporation (formerly Dainippon Ink and Chemicals) also has
significant market share because of strong position for both gravure ink and urethane resin. The major
application for dry laminates is in food packaging, and these companies expanded the plants in Asia in
response to the expected growth in the use of polyurethane adhesives for packaging. Mitsui Chemicals
has polyurethane adhesive plants (including ester type and ether type adhesives) throughout Asia, a 4
thousand metric ton-per-year plant in Taiwan, a 10 thousand metric ton plant in Malaysia, and an
approximately 10 thousand metric ton plant in China; DIC built a 1.2 thousand metric ton plant in India in
2005; Toyo Morton started operation of adhesives at Toyochem Graphics in Malaysia in late 2008. Rohm
and Haas (currently Dow Chemical) opened a total of 35 thousand metric tons of adhesives and coating
products production capacity in India in 2003; the major product is acrylic for coatings/adhesives, but
polyurethane adhesive formulations for flexible packaging applications are also produced.
•
SRI CONSULTING
DECEMBER 2009
116
In water-soluble polymer isocyanate applications, Oshika and Koyo Sangyo have higher market shares,
because these companies have a strong distribution network for wood products (for floors, plywood and
furniture). Other suppliers include Konishi and Aica.
om
20
09
Polyurethane adhesives consumption for footwear is a huge market in China, and many Republic of
Korea and Taiwanese companies have invested in footwear manufacturing plants there. Pou Chem Group
and Yue Yuen Industrial, the major Taiwanese footwear companies, and Hwaseung Corporation and
Kukdong Corporation, the major Korean companies, manufacture sport shoes for Nike at manufacturing
plants in such countries as China and Vietnam. They produced footwear in the Republic of Korea and
Taiwan until the 1990s, but have moved most of their production to lower-labor-cost countries. Major
adhesive suppliers to them are Nanpao Resins (a Taiwanese company), and Henkel, which acquired
Dongsung NSC (a Korean company); these are also major waterborne polyurethane adhesive suppliers to
the footwear market.
fr
The production of polyurethane adhesives developed very rapidly during 1995 to 2005. Most producers of
polyurethane adhesives are small ones. Low-tier polyurethane adhesives produced in China could meet
the requirements of the market, but the high-tier products still rely on imports. Some new high technology
companies are developing and producing high-grade polyurethane adhesives to meet the local market.
The merger of small producers should be the trend of the future.
or
t
The major Asian-based producers of polyurethane adhesive ingredients are listed in Table 58. In Asia,
there are numerous producers of polyester and polyether polyols; however, most of the products are for
nonadhesive applications, such as foams, footwear elastomers and synthetic leather. The following table
includes only producers of select specialty polyols for PU adhesives and sealants.
Table 57
na
pl
e
Asahi Glass
Japan
Annual Capacity
R
Company and
Location
ep
Major Asian Producers of Polyurethane Adhesive Ingredients
Products
Polyether polyols (high MW)
232
360
TDI/MDI
TDI/MDI
Bayer Material Science
China
Japan
260
67
MDI/HDI
MDI
m
BASF
China
Republic of Korea
Markets
SMP polymer for adhesive/sealant
na
Polyester polyols
Packaging
DIC
Japan, Thailand, India
na
Polyester polyols, polyether
polyols
Packaging
Hitachi Kasei Polymer
Japan
na
Polyester polyols, polyurethane Hot melt
prepolymer
Sa
COIM
Singapore
•
SRI CONSULTING
DECEMBER 2009
117
Major Asian Producers of Polyurethane Adhesive Ingredients
Annual Capacity
Products
120
MDI
Mitsui Chemicals
Japan
Republic of Korea
Japan, Malaysia
300
32.5
na
TDI, MDI, XDI, HDI
MDI
Polyester polyols, polyether
polyols
Nippon Polyurethane
Japan
Japan
425
na
MDI/HDI
Polyester polyols
Packaging
om
Huntsman
China
Markets
20
09
Company and
Location
Packaging
na
Hydroxy-terminated
polybutadiene
Double-paned insulating glass
Toyo Ink
Japan, Malaysia
na
Polyester polyols
Packaging
or
t
Yantai Wanhua
China
500
SRI Consulting.
R
Prices
MDI
ep
SOURCE:
fr
Sartomer Idemitsu Corporation
Japan
pl
e
Prices rose significantly from 2004 through the first half of 2008. Polyurethane adhesive prices in 2008
ranged from about $4 per kilogram to more than $20 per kilogram in the United States, while the average
price of formulated reactive polyurethane adhesives was about $5.10 per kilogram in 2008. Urethane hot
melt adhesives are more expensive, ranging from $15 to $25 per kilogram; however, they are typically
composed of 100% active ingredients.
Sa
m
In Western Europe, prices for urethane adhesives have been increasing steadily since 1999, due to higher
energy costs and higher raw material prices. Because of the weakening of the dollar against the euro,
prices in dollars increased by an additional 17% between 2005 and 2008. In 2008, prices were in the
range of $4.90-6.90 per kilogram for direct glazing adhesives, $6.50 for semistructural adhesives, $9.00
for adhesives for bonding structural composites, and $13.60-15.50 for solvent-free adhesives used in foil
laminating. Reactive hot melt adhesive prices lie in the range of $18-24 per kilogram.
When evaluating which adhesives to use, it is advisable not to use price as a gauge because quantities
vary for each application. For example, solvent-free polyurethane adhesives used in foil lamination are
more expensive per kilogram than solventborne products, but only 50% by weight of the solvent-free
product is required. In addition, productivity is higher because laminating machines using solvent-free
systems can run at rates up to 300 meters per minute, compared with about 200 meters per minute with
solventborne adhesives.
•
SRI CONSULTING
DECEMBER 2009
118
In 2009, the average unit sales price from adhesive manufacturers for polyurethane solvent-type adhesives
in Japan was ¥500 ($5.00) per kilogram; the average unit sales price of waterborne isocyanate oligomer
adhesives was ¥180 ($1.80) per kilogram. The estimated market prices of polyurethane adhesives were as
follows: liquid type, ¥500-700 ($5.00-7.00) per kilogram; hot melt type, ¥1,000-1,100 ($10.00-11.00) per
kilogram; and waterborne polymer isocyanate, ¥220-350 ($2.20-3.50) per kilogram.
om
Trends and opportunities in urethane adhesives are as follows.
20
09
In 2008, the price of solvent-based polyurethane adhesives in China was 16-25 renminbi ($2.30-3.60) per
kilogram. The average price of water-based polyurethane adhesive was 20-30 renminbi per kilogram,
equal to $2.88-4.30 per kilogram.
Polyurethane reactive hot melt adhesives. These represent an attractive technology that is
becoming increasingly popular, with annual growth rates of 5.0-5.5% in Western Europe, while
in North America similar growth may occur with economic recovery in the United States in 2010
or 2011. In Japan, the growth of reactive hot melts stagnated, due to competition from other
specialty thermoplastic resins such as high-molecular-weight polyester hot melts and polyamide
hot melts, which are better in handling and processability.
●
Increasing use for car and other vehicle assembly. As more automakers move to modular
assembly, polyurethane adhesives are being used in place of epoxy and PVC products because of
their flexibility.
●
Development of more effective primer systems for engineering plastics (i.e., a universal primer
system).
●
Increased use of polyester polyols.
●
Increased use of MDI formulations.
●
Development of “multifunctional” adhesives with higher green strength, higher modulus, low
electrical conductivity.
pl
e
R
ep
or
t
fr
●
Greater use of one-component systems in place of two-component to eliminate mixing
requirements and to reduce waste and worker exposure to potentially hazardous materials (e.g.,
isocyanate curing agents). Nonsolvent-type moisture-curable one-component systems are
increasing in interior construction applications in Japan.
m
●
Curing time. Continuing research efforts, as with other adhesives, to decrease the time and
energy required for cure.
●
Waterborne and high-solids systems. Ongoing conversion to the use of waterborne
formulations (in packaging, for example) and high-solids systems in place of systems containing
relatively large quantities of organic solvents. Although a number of reformulated systems have
been developed and commercially available for a few years, use of these more environmentally
acceptable adhesives is only now beginning to be more widespread as pricing and performance
characteristics have become more comparable to those of solvent-based products.
Sa
●
•
SRI CONSULTING
DECEMBER 2009
119
Solvent-free urethane adhesives. More importance will be placed on the development of these
adhesives; however, they are still deficient in terms of cost and performance compared with
solvent-based adhesives. In packaging, hot water resistance has been improved by the
development of new polyurethane dispersions used in combination with a water-based crosslinker. In footwear adhesives, solvent-free formulations are important for an improved working
environment.
●
Hybrid systems. More frequent use of urethanes in the form of hybrids. In the area of highperformance structural adhesives, urethanes will be used more frequently in the form of hybrids
to balance desirable properties with costs. These hybrids will likely claim an increasing share of
the market over the next five years. An example of such hybrids are the silane-end-capped
polyurethane products developed by Sivento, a division of Degussa, and also by Konishi. Epoxyurethane adhesives have been developed by Yokohama Rubber.
●
Development of new polyurethane adhesives for bonding of plastics with low surface energy.
Plastics like polypropylene, polyethylene, PTFE, silicone-coated plastics and some grades of
ABS are difficult to bond. Generally, modification of the surface energy of the plastic is the
method used to overcome the problem, either by flame treating, corona treatment, electrostatic
treatment or plasma treatment. Companies are working on improved adhesives that eliminate the
need for pretreatment. Development of more effective primer systems for engineering plastics
(i.e., a universal primer system) is needed.
●
Development of water-based acrylics for one-component adhesives. In the field of film-tofilm lamination, two-component polyurethanes, either as solution in organic solvents or as
solventless formulations, are currently widely used in Europe. However, the toxicity of organic
solvents and isocyanates threatens polyurethane use in food packaging applications. Water-based
acrylics for one-component adhesives are being developed by BASF and Rohm and Haas as
environmentally friendly and toxicologically safe alternatives to polyurethane-based adhesives. In
Japan, high-solids two-component polyurethane is used for laminate adhesives. A waterborne
polyurethane laminate adhesive was developed in the past, but was not widely used because of
the cost.
●
Foamed products for adhesives and space-filling applications. These are particularly useful in
automotive applications because they also offer sound dampening and high side-impact
resistance.
pl
e
R
ep
or
t
fr
om
20
09
●
Rongalit catalyst systems. The major disadvantage of two-component waterborne polyurethane
adhesives is slow setting speed. Rongalit catalyst (formaldehyde sulfoxylate salt) is a potentially
good catalyst to accelerate the cure of two-component reactive systems; however, the use of
rongalit catalysts will be regulated in Japan, because of formaldehyde emission concerns.
Sa
m
●
Modified Acrylic Adhesives
General description
Modified acrylics are composed of monomers that polymerize through a free-radical mechanism (i.e.,
methyl methacrylate), an elastomer or oligomer for reinforcement, and a redox system (e.g., lauroyl
peroxide, azoisobutylnitrile, cumene hydroperoxide) to initiate cure. The elastomer provides good impact
strength and peel strength; examples include chloroprene, chlorosulfonated polyethylene, polybutadiene,
•
SRI CONSULTING
DECEMBER 2009
120
carboxylated butadiene/acrylonitrile copolymer or a polyurethane. Catalysts, viscosity modifiers, fillers,
inhibitors and coloring agents can also be added to the formulation.
om
20
09
Acrylic adhesives can be classified by generation: first-generation acrylics have no reaction between
acrylic monomer and elastomers; second-generation acrylic adhesives have some reaction between acrylic
monomer and elastomers, and thus improved performance; and third-generation acrylics include
radiation-cure with second-generation systems. Third-generation systems are covered in the RadiationCurable Adhesives section; this section focuses on second-generation acrylic systems. Applications can
also include an equal part mixture dispensed to form nearly instant bonds. The elastomer and acrylic
monomer are applied by equally distributing the two components. The catalyst is contained in one
component and the initiator in the other. Denki Kagaku Kogyo promotes this system using a specially
designed nozzle with a double-feed applicator. This “meter-mix” method is also known as the fourthgeneration system.
fr
Another method developed independently by both DuPont and Lord Corporation coats the initiator on one
of the two surfaces to be bonded together. The catalyst and monomers are coated on the second surface.
When the two surfaces are joined, the initiator reacts with the catalyst and the monomers, and initiates
polymerization.
Still another system is microencapsulation, in which the catalyst or the initiator is encapsulated to make a
one-component system. Polymerization occurs when the capsule is broken.
or
t
Modified acrylic adhesives could be compared by their adhesive performance of high toughness and
impact resistance to epoxy adhesives and welding. The main advantages of the modified acrylics over
epoxy adhesives are
Rapid cure, which occurs in several minutes
●
Low-temperature cure at less than 10°C; cure at slower rates is possible below 0°C
●
High tolerance for poorly prepared metal surfaces because of the presence of the monomer, which
can dissolve oils
●
No need to accurately weigh the two components; rough proportions are adequate to initiate cure
●
Excellent performance in bonding a variety of substrates, and in particular polyester matrix
composites
m
pl
e
R
ep
●
However, usage has been hindered by the following disadvantages:
Odor and toxicity problems of acrylic monomer, such as methacrylic acid. Some suppliers have
developed types with less odor, as well as acid-free types.
●
Higher cost than conventional epoxy adhesives.
●
Decrease in adhesion strength at high temperatures. Some suppliers have developed heat-resistant
systems that depend on the glass transition temperature or heat distortion point of polymerized
modified acrylics.
Sa
●
•
SRI CONSULTING
DECEMBER 2009
121
Polymerization slightly inhibited by air, especially where surplus adhesives overflood at the
outside bondline.
●
Too-rapid cure, which can make it difficult to bond materials with large surface areas.
Consumption of modified acrylics is relatively small, as shown in Table 58.
Table 58
World Consumption of Modified Acrylic Adhesives
20
09
●
Value
(millions of
dollars)
1999
Total
1.1
na
0.81
0.14
0.55
na
na
2.45
2.60
2008
2008
1.2
na
0.88
0.15
0.6
0.2
0.3
1.0
0.1
0.93
0.16
0.7
1.2
0.5
30
4
39
4
28
36
15
3.33
4.59
156
fr
1.0
na
0.77
0.13
0.55
na
na
2005
Includes monomer, elastomer, curing agent and all other components.
SRI Consulting.
R
SOURCE:
ep
a.
2002
or
t
North America
Western Europe
Rest of Europe
Japan
China
Other Asia
om
Volumea
Sa
m
pl
e
FIGURE 19
World Consumption of Modified Acrylic Adhesives—2008
Central and
of Europe
South America Rest 2.6%
2.6%
Other Asia
9.6%
Western Europe
25%
Japan
17.9%
China
23.1%
North America
19.2%
•
SRI CONSULTING
DECEMBER 2009
122
20
09
Modified acrylics are used primarily in industrial markets, including structural applications in the
aerospace, aircraft, automotive and electronics industries. Optimal areas are in long-term structural
applications because the strength of the bond limits recyclability. Reactive acrylic adhesives can be used
for bonding metals (e.g., steel, aluminum, other nonferrous metals), ceramics, porcelain, glass, wood,
engineering plastics, and some hard plastics (except for polyolefins and untreated polyamide and
polytetrafluoroethylene [PTFE] products). Modified acrylics can be used in bonding porous materials
where air might be present. Modified acrylics have been used to bond the side doors of freight
locomotives—their selection was based on the need for minimum surface preparation, fast cure, and
resistance to impact, high humidity, water and engine coolants. Bosch (Germany) has chosen acrylics to
replace mechanical joining in the assembly of small electric motors in order to reduce noise.
fr
om
Other typical bonding applications for modified acrylic adhesives include nameplates to machinery;
acrylic and glass dial faces to metal housings; furniture wood to plastic, wood and glass; glass to steel in
solar collector panels and stained glass windows; ferrites to metal in electronic assemblies, such as
speakers; aluminum and steel to acrylonitrile-butadiene-styrene (ABS)/graphite in sporting goods; table
and desk steel corner brackets to extruded aluminum tubes and channels; metal signs to concrete walls;
automotive roof lights, sunroofs, and rear view mirrors; screws, studs and cylinder liners on engines; and
aluminum and composite components of ship structures.
R
ep
or
t
In the United States the consumer “do-it-yourself” segment has been growing rapidly as consumer
packages have become available through retail chains. 3M has introduced the Scotch-Weld™ Acrylic
Adhesive DP-805 brand. It is a 1:1 mix ratio adhesive with exceptional overlap shear and peal strength,
bonding metallic and plastic surfaces. It also adheres to oily (unprepared) surfaces reducing assembly
steps in original equipment manufacture. Lord Corporation has also introduced LORD ® 403, a fast-set,
modified acrylic adhesive formulated to provide high impact and peel strength for low-temperature
environments. North American consumption grew from 2005 to 2007 but declined in 2008, following
trends in the auto industry and general manufacturing economy. Consumption declines continued into the
first half of 2009. With eventual economic recovery, consumption is expected to resume average growth
of about 3% per year, with automotive, manufacturing assembly and construction segments leading
growth.
pl
e
Modified acrylic adhesive consumption in Central and South America in 2008 was minor at about 100
metric tons. Consumption in the region is divided between use in construction and general assembly in
manufacturing. Average annual growth of 3.0% is expected through 2013.
Sa
m
In Western Europe, demand for structural adhesives in transportation and general assembly applications,
where quick bonding of metal to plastics is required, decreased in 2009 by about 10% because of the
economic downturn that especially hit the automotive industry. After 2010, an increase in consumption of
structural acrylics of approximately 2.0% per year in 2010-2013 is estimated. Use of these adhesives in
the electronics industry, in particular in the assembly of loudspeakers, or generally for acoustic insulation,
will increase at a 2.5% average annual growth rate, following the growing consumer market.
Consumption of modified acrylic adhesives in Japan has decreased slightly since 1993 as electronic
companies shifted audio production to Other Asian countries. Denki Kagaku Kogyo, the largest producer
of second-generation systems in Japan, is estimated to have exported approximately 50% of its total
production to China and Other Asian countries for this application.
The 2008 breakdown of product shipments by application in Japan is shown in Figure 20.
•
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DECEMBER 2009
123
FIGURE 20
Japanese Consumption of Modified Acrylic Adhesives—2008
20
09
Other
13%
Transportation
10%
Electrical Industry
52%
om
Construction
25%
ep
or
t
fr
In Asia, the electrical appliance assembly segment, especially in high-end loudspeaker assembly
applications, is an indispensable application for modified acrylic adhesives. Another important
application is speakers for automobiles. Japanese loudspeaker manufacturers have plants domestically and
overseas—for example, Foster Electric (China, Vietnam), Panasonic Electronic Devices (Japan, China,
Taiwan, Thailand, Indonesia, Brazil, the United States, England), Tohoku Pioneer Corporation (Japan,
China, Thailand, Vietnam, Mexico) and Onkyo Corporation (Japan, China, Malaysia). Domestic Chinese
loudspeaker manufacturers include Tianjin Zenmay Electro Acoustic Equipment Corporation, Guoguang
Electric, and others. Low-end speakers (such as small-component stereo speakers and radio cassette
speakers) may not use modified acrylics where the quality of sound is not critical.
R
In China, the concept of modified acrylic adhesive is not strictly defined. There are many products
claimed to be modified acrylic adhesives, but most are likely first-generation acrylic adhesive products.
Only a small quantity of high-quality modified acrylic adhesive was consumed in China in 2008,
estimated at less than 2 thousand metric tons. The major applications of modified acrylic adhesives
include aviation, appliances and electronics.
Sa
m
pl
e
A new application developed by Denki Kagaku Kogyo and Mitsubishi Electric (called “MELARS”) uses
a combination of second-generation acrylics with rivets; this combination is expected to replace some
welding in electrical applications, including elevator panels and electric control panels, for example. 3M
has been particularly successful in targeting applications that require high strength under difficult
conditions. These uses include outdoor signs and decorative products. In many of these applications, bond
strength, as measured by lab shear, is greater than 2,500 psi. A methacrylate-based adhesive is coated
onto an L-shaped carbon fiber that is then inserted into structural joints throughout a building.
The peroxide-based initiator can be replaced with a photoinitiator to produce a UV-curing acrylic
adhesive that has very rapid cure. UV-curing reactive acrylic adhesives can be used to bond transparent
film and thin sheets.
Generally, acrylics are more flexible than epoxies. The choice of adhesive depends on the properties
required. For metal-to-metal bonding, epoxy adhesives are usually preferred. In addition, there is some
application (around several hundred metric tons) for filling cracks in concrete walls, although this use is
not generally classified as an adhesives application.
•
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DECEMBER 2009
124
Market participants
Global
20
09
The following table lists major global suppliers of modified acrylic adhesives:
Table 59
Major Global Suppliers of Modified Acrylic Adhesives as of October 2009a
Company and
Headquarters
Trade Name
Assembly and repair
Lord® Fusor
Metal Bonding
Modified Acrylic
Lord® 400 series
Harsh environments,
plastics (PVC, ABS,
polycarbonate), Metals
(aluminum, stainless
steel, steel)
Henkel has the
largest market
share in most
world regions.
om
Metal Welder™
Remarks
Structural bonding of
aluminum, steel and
stainless steel with
little or no surface
preparation
Automobile structural
assembly, unprimed
metal
Metal to plastic assembly Plastic (polycarbonate,
Xenoy®) and metal
bonding
Plastic to plastic assembly Fiberglass to metal
bonding
Metal to composite plastic
assembly
Metal to metal assembly
and auto repair
ep
Lord Corporation
Cary, North Carolina, United States
Industrial, electronics
Applications
fr
ITW Devcon
Danvers, Massachusetts,
United States
Speedbonder®
or
t
Henkel Corporation
Segments
R
Lord® 500 series
Lord® 600 series
m
pl
e
Permabond
Pottstown, Pennsylvania,
United States
Assembly
Ceramics, metals,
plastics and woods
Scotch-Weld™
Industrial
Structural bonding of
metals, ceramics,
wood and most
plastics
Sa
3M
St. Paul, Minnesota, United States
Permabond®
TA Series
a.
Denki Kagaku Kogyo has significant market share, but mainly in Asia.
SOURCE:
•
SRI CONSULTING
Largest
markets are in
North America
and Europe.
DECEMBER 2009
125
North America
20
09
Nearly all of the North American supply is from the global companies listed in the global producer
section (Table 59) above. Most modified acrylics are consumed in automotive assembly and repair,
structural and electrical/electronic assembly and construction, while consumption in consumer
applications is significantly smaller, but growing.
om
The supply to Central and South America is primarily from the global companies listed in the global
producer section above.
Western Europe
or
t
fr
Evonik Röhm GmbH, which is part of Evonik Degussa GmbH (Germany) and Lucite International Group
Ltd. (United Kingdom), are the two largest manufacturers of methyl methacrylate raw material for
adhesives applications in Western Europe. The number of producers of modified acrylic adhesives in
Western Europe is rather small, and is limited to those participating in the structural adhesives market.
The major producers are Evonik Röhm, Permabond and Sichel-Werke GmbH (part of the Henkel Group).
Henkel Corporation and 3M are minor suppliers.
Table 60
Western European Manufacturers of Modified Acrylic Adhesives—2009
ep
Company
Evonik Röhm AG
Hanau, Germany
Markets
Electrical
Transportation
Henkel Corporation
Loctite
Industrial
Electronics
Permabond Ltd.
Eastleigh, United Kingdom
Permabond
Industrial
Sichel-Werke GmbH
Hannover, Germany
Omnifit A/B
Electronics
3M
Scotch-Weld
Industrial
pl
e
R
Agomet
SOURCE:
SRI Consulting.
Sa
m
Trade Name
Asia
In Japan, there are more than thirteen market participants in modified acrylic adhesives (including import
dealers such as Lord Far East). Denki Kagaku Kogyo is the largest Japanese producer of secondgeneration acrylics in Japan, with more than a 50% share of the market in Japan, and probably has the
largest share on a value basis in Asia. It also exports modified acrylic adhesives to Asian countries for
loudspeaker manufacturers. Other producers hold a smaller market share each. Table 61 lists the major
market participants in Asia.
•
SRI CONSULTING
DECEMBER 2009
126
Table 61
Major Asian Suppliers of Modified Acrylic Adhesives—2009
Company
Trade Name
Application
Speakers
Heilongjiang Academy of Science of
Institute of Petrochemistry
Harbin, Heilongjiang
Transporation
Shanghai
Speakers
om
Cling Chemical Co., Ltd.
Zhuji, Zhejiang
Japan
Cemedine
Denki Kagaku Kogyo K.K.
Japan
Hardloc
Japan
Pegalock
Diabond
Construction, transportation
ep
Other
Speakers, elevator, golf clubs, construction
or
t
Koatsu Has Kogyo Co., Ltd.
Japan
Mainly golf clubs
fr
Cemedine Co., Ltd.
Japan
Republic of Korea
R
Speakers
Tai Tsang Co., Ltd.
Taiwan
Construction
SRI Consulting.
pl
e
SOURCE:
20
09
China
Sa
m
The major application for modified acrylics in the rest of Asia is loudspeakers. Currently, the major
production area is China, possibly accounting for more than 30% worldwide, followed by the ASEAN
countries, especially increasing the production in Vietnam since late 2000s.
Prices
Prices for modified acrylic adhesives vary widely, depending on the application. U.S. prices for modified
acrylics average $25-35 per kilogram. U.S. consumer packages are significantly higher at about $150-200
per kilogram at the wholesale level.
Prices have fallen slightly in Western Europe in the past five years, in line with other adhesives. List
prices for reactive acrylics in Western Europe are estimated at 18-41 euros ($13.80-32) per kilogram.
•
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DECEMBER 2009
127
In Japan, the price of modified acrylic adhesives in 2009 ranged from ¥3,000 to ¥6,000 per kilogram ($30
to $60) per kilogram, depending on the quantity and grade.
20
09
In China, the price of modified acrylic adhesives was in the range of 150-300 renminbi per kilogram,
equal to $21.60-43.00 per kilogram in 2008.
Modified acrylic adhesives were developed to improve the performance of and to follow the trends in the
modified acrylic adhesives industry.
In some cases it is not desirable to use methyl methacrylate (MMA) as an adhesives ingredient,
because of its strong odor and low flushing point. Some companies have developed non-MMAtype adhesives.
●
Welding of complicated structural panels must be done by a well-trained operator, and may cause
heat distortion at welding points. The combined use of modified acrylic adhesives and rivets
(called MELARS by Denki Kagaku and Mitsubishi Electric) has replaced some welding
applications for metal boxes and panels, such as switchboard control boxes, air conditioning in
trains, and other electrical applications. The system has excellent adhesive strength, corrosion
resistance, and no heat distortion or need for a refinishing process for distorted parts. Hitachi
Electric has also adopted this system. In addition, modified acrylics may be used for aluminum
boxes and panels without rivets.
General description
ep
Anaerobic Adhesives
or
t
fr
om
●
pl
e
R
Anaerobics are single-component, solventless adhesives that can be stored for long periods of time under
normal ambient conditions. They cure rapidly when confined between surfaces that exclude oxygen and
must be stored in air-permeable containers. When the adhesive is applied between two surfaces that are
subsequently pressed together to exclude air, the adhesive cures rapidly to form a strong bond. These
adhesives are often called threadlockers because they are most commonly used to hold screws in place.
m
Anaerobic adhesives form bonds with excellent resistance to solvents, dilute acids and alkalis, and water,
but they tend to have only limited impact and peel strength and gap-filling ability. They are used mainly
on surfaces with active metal ions (e.g., steel and copper) where the presence of the ions speeds the cure;
a primer with metal ions is used for nonactive surfaces.
Sa
Most anaerobics are based on initiators and monomers such as polyethylene glycol dimethacrylates or
polypropylene glycol dimethacrylates, primarily because of their low cost, high reactivity, and good
physical properties when cured. Some newer formulations include polyurethane methacrylate,
tetrahydrofurfuryl methacrylate, 2-hydroxyethyl methacrylate, and dicyclopentenyl methacrylate. They
are formulated with additional ingredients including thickeners, plasticizers, accelerators, and stabilizers.
Elastomers can be added to reduce brittleness and increase toughness. Most formulations have very low
viscosity so they can flow into small crevices in parts to be assembled.
•
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DECEMBER 2009
128
A range of strength types and cure speed types is available. Higher-strength versions may be used for the
permanent fixing of rotating components, such as gears, bearings, or pulleys, avoiding the need for
machining parts and preventing mechanical fretting and corrosion problems.
20
09
The type of anaerobic adhesive can be classified by the application method or cure mechanism, as noted
below.
The most popular use of anaerobics is to prevent loosening of bolt or screw fasteners. Anaerobic
adhesives are directly applied around the bolt/screw, and when these are tightened, the curing
reaction starts. The setting speed depends on the type of metal substrate; fast cure occurs on
copper surfaces (5-30 minutes), and slow cure on stainless steel surfaces (several hours).
●
Another popular use is to bind rough (porous) metal surfaces together. When the surfaces of
metal substrates are rough, the actual contact surface area between the metals is very small, but
by using anaerobic adhesives, strong bonding can be achieved.
●
Other anaerobic formulations are designed to cure by ultraviolet radiation, resulting in improved
bond strength and aging characteristics. Exposure to UV light provides a relatively weak
temporary bond before the anaerobic curing mechanism proceeds to give a strong, permanent
bond. This system is used to attach small electronic components to printed circuit boards. UV
light may also be used to replace chemical primers under certain conditions. UV-curing anaerobic
adhesives are used predominantly in electrical/electronic applications.
●
Anaerobics can be used in the form of encapsulated materials for bolt and screw applications.
Epoxy adhesives can also be used in this form and compete with anaerobics. When the capsules
are broken by tightening and assembling the bolt/screw, the reaction of curing starts. Extension of
the preapplied threadlocking and threadsealing applications is being done through the
microencapsulated approach.
●
Formulations have been developed that combine the slow, durable cure of anaerobics with an
instant but weaker cure of a pressure-sensitive adhesive; along with a tackifying resin, this system
exhibits immediate adhesion but allows repositioning before the anaerobic achieves full bond
strength.
pl
e
R
ep
or
t
fr
om
●
Advantages of anaerobic formulations include the following:
No organic solvents are used in formulations
m
●
One-component formulations require no mixing
●
They are easy to clean with an appropriate organic solvent because the adhesive remains uncured
outside the bondline
●
They cure at room temperature
●
There is no shrinkage or release during cure
Sa
●
Disadvantages of anaerobic adhesives include the following:
•
SRI CONSULTING
DECEMBER 2009
129
The cure is slow in the absence of metal ions. For use on nonactive surfaces, the opposing mating
surface must be coated with a primer containing metal ions or amines.
●
They are not suitable for plastic substrates.
20
09
●
om
Anaerobic adhesives are used principally to lock threaded parts and fasteners to keep them from
loosening when exposed to excessive vibration. A range of strengths is available to allow disassembly
and use on a wide range of thread diameters. Higher-strength versions may be used for the permanent
fixing of rotating components, such as gears, bearings, or pulleys, avoiding the need for machining parts,
and preventing mechanical fretting and corrosion problems. These adhesives are also widely employed in
the assembly of flat load-bearing panels where ease of use and rapid curing has benefits over the more
traditional classes of adhesives. Some formulations may be used for the filling and sealing of surface
imperfections in manufactured parts and for gasket joining.
or
t
fr
Anaerobic adhesives can be used in the form of preapplied dry threadlocking materials. The particularly
active portions of the adhesive are encapsulated in thin-wall shells before addition to the bulk of the
adhesive. The material is applied as a dry film to the threaded fitting of a part such as a bolt; when the
bolt is assembled, the encapsulation breaks, and the adhesive is activated and thus serves as a threadlocker.
ep
These products can also be used as sealants in two major application areas: porous metal impregnation
and liquid gasketing. In both applications, the system cures to form materials that resist attack by most
industrial fluids, counterbalance the effects of surface imperfections, and do not shrink or crack when
cured. Impregnation sealants migrate into pores, cracks, and surface imperfections to seal gaps between
rigid castings, welds, or powdered metal products.
pl
e
R
Anaerobic adhesives are preferred where their low viscosity allows them to flow into close-fitting parts.
In liquid gasketing applications, these products are applied as highly viscous pastes; they have the
advantages of minimizing sag and maximizing gap-filling and function best between metal-to-metal
bolted flanges. Anaerobic sealants are resistant to a variety of equipment fluids, including motor oils,
antifreeze, automatic transmission oils and gear oils. Automotive applications include use in the bonding
of a ring gear in a Renault differential and the structural gasket in the Rover engine.
Sa
m
Consumption of anaerobic adhesives has shown slow, steady growth over the years, with major uses in
the transportation and machinery industries where resistance of mechanical fasteners to vibration is a
concern. The total amount of anaerobic adhesive used is relatively small, since many applications require
only one or two drops to achieve effective bonding. Future use is expected to increase only slowly, as
most replacement of mechanical fasteners has already occurred and the quality of finished metal parts has
improved, resulting in less need for adhesives to fill gaps or repair machined components.
Table 62 and Figure 21 show the global consumption of anaerobic adhesives by region.
•
SRI CONSULTING
DECEMBER 2009
130
Table 62
World Consumption of Anaerobic Adhesives
Total
2005
2008
1.0
na
0.61
0.09
0.25
na
na
1.0
na
0.63
0.10
0.2
na
na
1.1
na
0.66
0.11
0.2
1.4
na
1.0
0.1
0.6
0.1
0.2
2.0
0.3
1.95
1.93
2008
145
5
95
13
40
63
12
3.47
4.3
373
Includes monomers, resins, fillers, plasticizers, thickeners and other additives.
SOURCE:
SRI Consulting.
fr
a.
2002
om
North America
Western Europe
Rest of Europe
Japan
China
Other Asia
1999
20
09
Value
(millions of
dollars)
Volumea
or
t
FIGURE 21
World Consumption of Anaerobic Adhesives—2008
Central and
South America
1.3%
Other Asia
3.2%
Rest of Europe
3.5%
ep
Japan
10.7%
R
North America
38.9%
Western Europe
25.5%
m
pl
e
China
16.9%
Sa
In North America, anaerobic adhesives will continue to grow slower than GDP, having already penetrated
into most transportation and industrial assembly applications. Less anaerobic adhesive is required in new
vehicles as they move to more bonded parts, instead of screws, and designs include larger molded
components that replace several smaller parts that previously had to be bolted together. About 10% or less
of North American consumption is from the consumer/DIY segment. This segment may have continuing
potential for higher growth than the rest of the industrial segments and can be sold at relatively high retail
prices. Overall, North American consumption grew from 2004 to 2007, but declined in 2008 as
manufacturing/general assembly declined with the economic recession. Future North American growth is
expected to resume at 1.5-2.5% per year.
•
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DECEMBER 2009
131
Consumption in Central and South America is expected to grow at 3-4% per year through 2013, with a
growing domestic auto industry and increasing output from manufacturing.
European consumption is expected to remain flat, or grow slightly at 0-1% per year for the next five
years.
20
09
Figure 22 shows the breakdown of demand in Japan by application.
FIGURE 22
Japanese Consumption of Anaerobic Adhesives—2008
om
Microelectronics
10%
fr
Transportation
45%
or
t
Industrial
45%
R
ep
In Japan, demand for anaerobics in the automotive and transportation industries has leveled in recent
years, because Japanese automobile manufacturers are increasing their overseas production of
automobiles. Industrial applications include hard disk assembly (rotating parts) and pipe joint seals for
construction uses. Although there is demand in other sectors (e.g., usage for construction, for maintenance
of machines), the amounts are still small. Henkel introduced handy stick-type anaerobic adhesives during
the mid-2000s, and this has contributed to some growth in repair applications. Overall demand is
expected to remain constant or slightly increase over the next five years.
m
pl
e
Anaerobic adhesives have developed very rapidly in China. The consumption of anaerobic adhesives
increased at an average growth rate of 20% per year from 2005 to 2007. Consumption was estimated at
around 2 thousand metric tons in 2008. Industrial applications are believed to account for around 80-90%
of the total, because there are many computer/electrical assembly lines. The growth rate is expected to
average 10-12% per year for the next five years.
Sa
Market participants
Global
The following table lists the major global suppliers of anaerobic adhesives:
•
SRI CONSULTING
DECEMBER 2009
132
Table 63
Major Global Suppliers of Anaerobic Adhesives as of October 2009
Chemence Ltd.
Corby, United Kingdom Rite-Lok
Permabond
Somerset, New Jersey,
United States
Three Bond
Tokyo, Japan
Remarks
Automotive
Threadlocking, retaining, Sales in North America, Europe
gasketing, pipe sealants
and Asia. Also supplies UVcuring anaerobics.
Loctite®
OmniFIT®
Industrial,
electronics
Threadlocking,
threadsealing, gasketing,
retaining, bonding
Permabond®
Automotive,
plumbing
Threadlocking,
threadsealing, gasketing,
retaining, bonding
ThreeBond
Industrial, general
assembly
Henkel has the largest market
share in most world regions.
Largest markets are in the U.S.
and Europe.
Threadlocking, retaining, Largest market shares are in
bonding
Asia.
or
t
SOURCE:
Applications
om
Henkel Corporation
Segments
20
09
Trade Name
fr
Company and
Headquarters
North America
R
ep
In North America, the global companies Henkel and Permabond have the largest market shares. Henkel’s
Loctite® brand retains its market dominance in the region, particularly in retail sales. Within North
America, growth has recently been limited in Mexico, as manufacturing and assembly have moved from
there to Asia, particularly China. There are few major regional North American suppliers.
Table 64
pl
e
North American Suppliers of Anaerobic Adhesives—2009
Company
m
ND Industries
Sa
Pacer Technology
SOURCE:
Trade Name
Segments
Applications
ND Microspheres®
Acrylic Series
Aerospace
Automotive
Fastening and threadlocking for OEM
ANL series
Consumer, DIY
Threadlocking, threadsealing, retaining,
flange sealing
SRI Consulting.
•
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DECEMBER 2009
133
20
09
Supply to Central and South America is primarily from the global companies listed in the world producer
table above.
Western Europe
Henkel retains the largest market share through its acquisition of Loctite. Permabond, also part of Henkel
Corporation through the acquisition of National Starch, has developed its own anaerobic technology
adhesive and has gained an important position in this market in the United Kingdom.
om
Another major Western European supplier of anaerobic adhesives is Chemence Ltd. (United Kingdom).
The one major regional Western European manufacturer of anaerobic adhesives is listed in the following
table:
fr
Table 65
Western European Manufacturer of Anaerobic Adhesives—2009
Trade
Name
Loxeal Engineering Adhesives Srl.
Cesano Maderno, Italy
SRI Consulting.
Loxeal
Mechanical industry, anaerobic threadsealing,
threadlocking, retaining and gasketing
ep
SOURCE:
Applications
or
t
Company
pl
e
R
Several companies, such as 3M, Dunlop Adhesives and Delo (Germany), supply anaerobics produced by
other adhesives companies, including Three Bond and Toagosei of Japan. UV-curing anaerobic adhesives
are supplied mainly by Henkel.
Asia
Sa
m
Table 66 lists the major suppliers of anaerobic adhesives in Asia.
•
SRI CONSULTING
DECEMBER 2009
134
Table 66
Major Asian Suppliers of Anaerobic Adhesives—2009
Company and
Plant Location
Trade
Name
Remarks
20
09
China
Beijing Tianshan New Materials and Technology Corp.
Beijing
Cling Chemical Co., Ltd.
Zhuji, Zhejiang
Hengxin Chemical Industry Co., Ltd.
Zhuhai, Guangdong
om
HX
Litai Anaerobic Co., Ltd.
Huizhou, Zhejiang
Yantai, Shandong
fr
Luoke Anaerobic Adhesive Co., Ltd.
Ningbo, Zhejiang
Loctite
or
t
Xiangfan, Hubei
Largest market share in Asia.
Shanghai
Japan
R
Japan, Thailand
ep
Zhejiang Keli Anaerobic Adhesive Co., Ltd.
Hangzhou, Zhejiang
Second-largest market share
in Asia.
SRI Consulting.
pl
e
SOURCE:
ThreeBond
Sa
m
Henkel has a 70% share of the Japanese market for anaerobics. The company, which helped bring
anaerobic adhesives to Japan, has a wide range of product grades and a good reputation in the region.
Three Bond Co., Ltd. has the second-largest market share at around 25%, and is the primary producer of
encapsulated anaerobic adhesives.
Prices
The U.S. price for anaerobics ranges from $120 to $170 per kilogram at the wholesale level for the
professional/industrial segments and is about $1,000 per kilogram at the retail level for consumer do-ityourself. In Western Europe, large-volume users can pay list prices in the range of 95-136 euros ($140$200) per kilogram. In Japan, the price of anaerobics in the domestic market was about ¥1,000 ($100) for
50 ml, or ¥20,000 ($200) per kilogram as average price in 2009.
•
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DECEMBER 2009
135
In China, the price of anaerobic adhesive was 150-300 renminbi per kilogram, equal to $21.60-43.00 per
kilogram in 2008.
20
09
Even with their very high cost, anaerobics can provide cost savings over mechanical fasteners since only
very small quantities are needed for bonding.
om
Producers are developing new applications for anaerobics as sealants in two major areas: porous metal
impregnation and liquid gasketing. In both applications, the system cures to form materials that resist
attack by most industrial fluids, counterbalance the effects of surface imperfections, and do not shrink or
crack when cured. Impregnation sealants migrate into pores, cracks, and surface imperfections to seal
gaps between rigid castings, welds, or powdered metal products.
or
t
fr
Anaerobic adhesives are preferred where their low viscosity allows them to flow into close-fitting parts.
In liquid gasketing applications, these products are applied as highly viscous pastes; they have the
advantages of minimizing sag and maximizing gap-filling and function best between metal-to-metal
bolted flanges. Anaerobic sealants are resistant to a variety of equipment fluids, including motor oils,
antifreeze, automatic transmission oils, and gear oils. In sealing automobile engines, silicones are
predominantly used. Anaerobic producers have tried to develop markets in this application based on
anaerobics’ advantage of fast cure and better corrosive resistance. Other examples of applications include
use in the bonding of a ring gear in a Renault differential and the structural gasket in the Rover engine.
R
Cyanoacrylate Adhesives
ep
Basic technology of anaerobic adhesives has not changed for almost twenty years, but in 2009, Henkel
introduced a higher-heat-resistant anaerobic product. The product does not change any other properties
except heat resistance; thus, it can widen the use of anaerobics into heat-resistant applications.
General description
Sa
m
pl
e
Cyanoacrylates are a special class of acrylic monomers that polymerize very rapidly at room temperature
in the presence of bases as weak as water. They have a few unique advantages over other adhesives—ease
of use, speed of cure, strength and versatility, and economy of use. Cyanoacrylates were invented by
Eastman Chemical as a base component using methyl cyanoacrylate in 1958, but about 90% of the current
systems are based on ethyl cyanoacrylate. Some other monomers, such as butyl cyanoacrylate, isopropyl
cyanoacrylate and octylcyanoacrylate, are used for special applications. Eastman Chemical has withdrawn
from this business, and the worldwide cyanoacrylate market is currently shared primarily by Loctite and
Japanese producers (Toagosei, Alteco and Taoka Chemical). Taiwanese and Chinese companies also
produce low-priced products.
The first generation of cyanoacrylates showed limited resistance to water and higher temperatures, were
somewhat brittle, and did not adhere to porous surfaces. These deficiencies were minimized somewhat by
adding modifiers. Still, cyanoacrylates are generally not recommended for applications requiring
excellent resistance to weathering, heat and aging. Moreover, conventional cyanoacrylates do not possess
any gap-filling properties. In fact, the thinner the glue line, the stronger the bond. More recently,
cyanoacrylates of high viscosity have been developed by adding a small amount of fumed silica to the
formulation or by dissolving certain specific acrylates in the cyanoacrylate monomers. These modified
•
SRI CONSULTING
DECEMBER 2009
136
20
09
cyanoacrylates form thicker bonds, but do not fill gaps. They are popular in the consumer market as a
user-friendly “superglue” because they are easier to apply to three-dimensional surfaces, are less likely to
run off vertical surfaces, and are easier to handle; for instance, they are less likely to drip or splash. Care
must be exercised in using cyanoacrylates to avoid contact with skin and eyes, as these adhesives will
rapidly bond to skin.
The properties of cyanoacrylates can be modified with impact-strength enhancers (i.e., elastomers,
plasticizers), curing accelerators (for use on acidic or porous surfaces), viscosity modifiers (nitrocellulose
polyacrylate or polydiarylphthalate) and stabilizers (e.g., a free radical stabilizer such as hydroquinone or
an acidic compound).
om
fr
Cyanoacrylates are unique among specialty adhesives because of their wide acceptance in the consumer
market. Sold as superglues and under similar names, they are popular with the general public because of
their ease of use, widespread applicability, and fast cure. Penetration into the industrial market has been
limited by cost, performance limitations, and concerns about toxicity and odor.
Consumers use cyanoacrylates in countless applications to bond substrates such as glass, ceramics,
metals, elastomers and many plastics.
or
t
Cyanoacrylates are quite expensive, but can be cost-effective in an industrial setting for a number of
reasons:
Only small quantities are necessary for bonding
●
Automatic dispensing equipment can be used
●
Bonding times are short; expensive fixturing is not needed
●
Most substrates can be bonded
●
Curing takes place at room temperature
●
They are one-component, solvent-free adhesives
●
They have excellent chemical, solvent and grease resistance
m
pl
e
R
ep
●
Sa
Disadvantages of cyanoacrylate adhesives are as follows:
●
Fair thermal resistance, impact resistance and low flexibility.
●
Slow cure on acidic surface substrates, especially on wood. Cyanoacrylate adhesives for wood
applications have been developed using an accelerator as part of the formulation.
●
Not suitable for a wide area of adhesion.
•
SRI CONSULTING
DECEMBER 2009
137
No gap filling. A gelatinous form has been developed that has limited gap-filling ability using
highly thixotropic gels, hydrophobic silica, etc.
●
Irritating odor and blooming of the free monomer around cyanoacrylate adhesives. Reduced-odor
and lower-blooming products have been developed using higher-molecular-weight esters on
cyanoacrylates, including isopropyl, isobutyl and ethoxyethyl cyanoacrylates.
●
Relatively high cost.
Applications for cyanoacrylate adhesives include the following areas:
20
09
●
Automobile industry—rubber weatherstripping, temporary positioning of parts assembly, to be
followed by welding or use of epoxy adhesive
●
Electrical industry—fixing small nuts, screws, assembly of small electrical/electronic parts, to
be followed by soldering or use of epoxy adhesive
●
Woodworking industry—assembly of small parts, adhesion between wood and rubber
●
Medical use—to stop bleeding during surgery; n-butyl cyanoacrylate is preferred in Western
Europe because it degrades more slowly than ethyl cyanoacrylate, resulting in fewer allergic
reactions
●
Cosmetics—for false fingernail application
●
Household—consumer glues for general repairs
●
Industrial
ep
or
t
fr
om
●
Weatherstrip automotive bodies; cyanoacrylates have been used in the manufacture of
automotive air bags, and are used in aftermarket applications to repair interior and exterior
trim
–
Bond joints of ceramic pipes
pl
e
R
–
–
Temporarily position rubber gaskets before assembly
–
Bond small parts (e.g., electronic chips on printed circuit boards)
Sa
m
Consumption of cyanoacrylates remains relatively small because of the minimal amount of adhesive
required to produce a strong bond (about one drop per square inch). Table 67 and Figure 23 show
consumption for cyanoacrylate adhesives by world region.
•
SRI CONSULTING
DECEMBER 2009
138
Table 67
World Consumption of Cyanoacrylate Adhesives
Total
2005
2008
1.7
na
0.7
neg
0.5
na
na
na
1.8
na
0.6
neg
0.4
na
na
na
2.0
0.1
0.5
neg
0.41
2.0
1.0
0.2
2.0
0.1
0.48
neg
0.5
4.0
1.5
0.2
2.9
2.8
6.2
8.8
2008
150
10
60
2
78
80
37.5
20
437.5
Includes monomers, inhibitors, stabilizers, fillers and all other components.
SOURCE:
SRI Consulting.
fr
a.
2002
om
North America
Western Europe
Other Europe
Japan
China
Other Asia
Rest of the World
1999
20
09
Value
(millions of
dollars)
Volumea
or
t
FIGURE 23
World Consumption of Cyanoacrylate Adhesives—2008
ep
Central and Other Europe Rest of the World
0.5%
South America
4.6%
2.3%
Other Asia
8.6%
R
North
America
34.3%
Japan
17.8%
China
18.3%
Sa
m
pl
e
Western Europe
13.7%
Since the acquisition of Loctite, the Henkel Group holds over 40% global market share for cyanoacrylates
by value; Japanese companies hold over 35%. On a volume basis, these percentage are lower, as the
Taiwanese and Chinese producers market cyanoacrylate adhesives for general industrial applications at
lower prices.
•
SRI CONSULTING
DECEMBER 2009
139
North America
Consumption of organoacrylate adhesives by segment in North America is shown in the following table:
Table 68
Percent
(volume basis)
Segment
Industrial
Medical
Consumer/DIY, Other
SOURCE:
Product assembly, original equipment, aftermarket repair
Wound closure
Consumer glues for general repairs
100%
om
Total
33
17
50
Applications
20
09
North American Consumption of Cyanoacrylate Adhesives—2008
SRI Consulting.
or
t
fr
In North America, roughly half of cyanoacrylate adhesive by value is sold in the consumer market with
the balance in industrial and medical segments. Unlike most other adhesives, cyanoacrylates show little
impact from the economic recession in 2008. Consumption has declined for the smaller industrial
segment, but this has been balanced by the growing use in medical applications and the relatively steady
consumption by consumers in do-it-yourself repair applications. As compared to 2005, consumption
appears flat in 2008, but growth occurred in 2006-2007. Growth is expected to resume with economic
recovery in 2010 or later, averaging 3.5-4.0% in volume per year through 2013.
pl
e
R
ep
Cyanoacrylates have been approved for tissue closure in medicine as an alternative to sutures and staples;
they are used in some European countries but have more limited use in Japan and North America. An
early U.S. FDA approval, Closure Medical Corporation’s DermaBond ®, uses proprietary cyanoacrylate
technology. In 2001, a second polymer, Liquiderm™, was approved by the FDA, and can be used to treat
minor cuts and burns. Closure also markets NEXABAND ® for wound closure in the veterinary market
segment. 3M sells Vetbond™ for the veterinary segment in the United States while Tissu-Glu™ from
Cohera Medical Inc. is sold for the human health segment in Canada and the United States. Indermil®, a
Henkel cyanoacrylate wound closure product, is sold in the United States through the U.S. surgical
division of Tyco.
Sa
m
Permabond is active in the medical devices market with Permbond™ 4C10, a cyanoacrylate designed for
high-speed production of medical devices, including bonding, sealing and fixturing parts and substrates.
Within five to twenty seconds, the single-component adhesive polymerizes when pressed into a thin film
between substrates including brass, steel, plaster, stone, aluminum, ABS, phenolic, polyesters, SBR, PVC
and many other plastics.
Western Europe
Consumption by segment in Western Europe is shown in the following table:
•
SRI CONSULTING
DECEMBER 2009
140
Table 69
Western European Consumption of Cyanoacrylate Adhesives—2008
Percent
(volume basis)
Sample Applications
40
15
45
Product assembly, original equipment, aftermarket repair
Wound closure
Consumer glues for general repairs
Industrial
Medical
Consumer/DIY, Other
Total
20
09
Segment
100%
SOURCE:
SRI Consulting.
om
Ethyl cyanoacrylate constitutes the majority of cyanoacrylate consumption in Western Europe. Methyl
cyanoacrylate products continue to lose market share as alkoxy alkyl cyanoacrylates gain share because of
their low odor.
or
t
fr
Henkel is one of the most important suppliers of cyanoacrylates for medical markets in Europe. Its
subsidiary in the Henkel Technologies division, Loctite, has developed a cyanoacrylate tissue adhesive
for external wound closure—Indermil—that is marketed in collaboration with Tyco.
Japan
ep
Toagosei is the largest supplier of cyanoacrylates for the medical markets in Japan, providing products
based on ethyl cyanoacrylate, methyl cyanoacrylate, and other similar monomers.
pl
e
R
In recent years, the growth rates for the production and consumption of cyanoacrylates in Japan have been
limited, because some Japanese electric companies have built their assembly plants in other Asian
countries. Also, in the consumer market, silyl-modified polyether-type elastic adhesives are gaining
market share. In 2008, production was around 1,100 metric tons and 46% was exported. The market is
divided into the consumer market and the industrial market; the consumer market sells small-volume
packages via various distributors and the final unit price is very high at the consumer level, while the
industrial market sells larger volumes via a few or no distributors and the price becomes lower than
consumer price.
Sa
m
In value terms, the 2008 Japanese market for cyanoacrylate adhesives was 30% for automobile, 20-30%
for electric, 20% for woodworking/architecture, 20% for consumer, and the rest for others. In volume
base, automobile application may become almost 40-50% of total.
•
SRI CONSULTING
DECEMBER 2009
141
FIGURE 24
Japanese Consumption of Cyanoacrylate Adhesives—2008
Consumer
Market
20%
Automobile
Industry
30%
om
Construction
20%
20
09
Other
5%
fr
Industry
25%
China
pl
e
R
ep
or
t
It was reported by China National Adhesives Industry Association that sales of cyanoacrylate adhesives in
2008 totaled 15 thousand metric tons; however, this value is believed to be overstated as a result of
double-counting of resale, export repackaged products, and overstatement by local producers. But the
production of cyanoacrylate adhesives has increased very rapidly in the last three years, at an annual rate
averaging more than 30% per year. The production of cyanoacrylate adhesives in China was estimated at
about 5.0 thousand metric tons in 2008. Some of this volume was exported; local consumption was
estimated at 4.0 thousand metric tons in 2008. A large quantity of the cyanoacrylate adhesive was
consumed in industrial markets. Another important application of cyanoacrylate adhesives is for medical
uses, particularly in surgical operations; the majority of these cyanoacrylate adhesives are supplied
through imports. Ethyl cyanoacrylate–based adhesives are the most commonly produced in China, known
as 502 adhesive.
Other Asia
Sa
m
Major applications include automobile manufacturing and woodworking. In Other Asia, cyanoacrylate
adhesives are produced in Taiwan, the Republic of Korea, and India. Production in Taiwan was about two
thousand metric tons, and mostly exported. Cyanoacrylate adhesives are well-known in consumer markets
in Southeast Asia (such as Singapore and Thailand).
Market participants
Global
The following table lists major global suppliers of cyanoacrylate adhesives:
•
SRI CONSULTING
DECEMBER 2009
142
Table 70
Major Global Suppliers of Cyanoacrylate Adhesives as of October 2009
Company and
Headquarters
Trade Name
Segments
Applications
Bostik ®
Professional, consumer
DIY, industrial
Ceramics, metals,
plastics and wood
Chemence Ltd.
Corby, United Kingdom
C series
DIY, industrial
Ceramics, metals,
plastics and wood
BlackMax®
Prism®
Quick Set®
SuperBonder®
Tak Pak®
Industrial, professional
Consumer DIY
Consumer DIY
Electronic (circuit body)
Ceramics, metals,
plastics and wood
ITW Devcon
Danvers, Massachusetts,
United States
Zip Grip®
Ceramics, metals,
plastics and wood
Permabond
Pottsown, Pensylvania,
United States
Permabond®
Toagosei Co., Ltd.
Tokyo, Japan
om
market share in most world
regions.
fr
or
t
Industrial, general
assembly
Ceramics, metals,
plastics and wood
North America and Europe.
Aron Apha®
Krazy Glue ®
Ceramics, metals,
plastics, and woods
Mainly Asia and North
America.
Industrial, general
assembly
DIY, industrial
pl
e
SOURCE:
ThreeBond
R
Three Bond
Tokyo, Japan
supplies UV-curing
anaerobics.
ep
Henkel Corporation
20
09
Bostik
Remarks
North America
Sa
m
In North America the largest market share is held by Henkel, while Pacer has a strong presence in the
DIY consumer segment. Regional suppliers of cyanoacrylate adhesives in North America are presented in
Table 71.
•
SRI CONSULTING
DECEMBER 2009
143
Table 71
Major North American Formulators of Cyanoacrylate Adhesives—2008
Company
Trade Name
Markets
Gorilla™ Super Glue, Impact Resistant
Consumer DIY
Pacer Technology
Bondini®
FutureGlue
Plasti-Fuse®
Super Glue®
Private label (store brands)
ISL-LOK™
Consumer DIY
Consumer DIY
Consumer DIY
Consumer DIY
Consumer DIY
Threadlocking for nonmetal parts; product
line offers three strengths of adhesion, from
disassembly possible to disassembly difficult.
om
SOURCE:
20
09
Gorilla Glue, Inc
SRI Consulting.
or
t
fr
Roughly fifty companies distribute cyanoacrylate adhesives in North America. Many of these adhesives
are imported from Japan. 3M distributes Toagosei’s cyanoacrylate adhesive under the trade name
Pronto™. Elmer’s Products, Inc. sells Toagosei’s Krazy Glue ® on the consumer market. A formulation of
Krazy Glue® described as “shock resistant” is more durable in environments requiring more flexibility,
according to Elmer’s.
R
Western Europe
ep
Supply to Central and South America is primarily from the global companies listed in the world producer
table above.
Sa
m
pl
e
There are many suppliers of cyanoacrylate adhesives to Western European markets, but there are only a
few major producers.
•
SRI CONSULTING
DECEMBER 2009
144
Table 72
Western European Manufacturers of Cyanoacrylate Adhesives—2009
Trade
Name
Markets
Bostik
Industrial
Chemence Ltd.
Rite Lok
Industrial
Consumer
Medical
Henkel Technologies
Dublin, Ireland
Loctite™
Automotive
Electrical
Permabond Ltd.
Permabond
Sichel-Werke GmbH (Henkel)
Hannover, Germany
Sicomet
fr
Medical
Product assembly
or
t
Product assembly
Transportation
Electronic industry
Medical
SRI Consulting.
ep
SOURCE:
om
Bostik
20
09
Company
Asia
R
A larger number of companies distribute cyanoacrylates in Western Europe; much of the product is
imported from Japan. Leading companies are Bostik, Delo, Dunlop and Panacol.
m
pl
e
In Japan, more than fifty companies supply cyanoacrylate adhesives, including resale. The largest supplier
is Toagosei, which introduced Aron Alpha cyanoacrylate adhesives to the Japanese market in 1963. The
rest of the market is shared by Alteco, Koatsu Gas Kogyo, Taoka Chemical, Henkel (Loctite brand) and
Three Bond. Many other companies repackage and sell under their own brand names. In the consumer
market, Konishi has contracted to handle sales of Toagosei’s cyanoacrylate adhesives under the brand
name Bond Aron Alpha. Cemedine also has a strong distribution channel in the consumer market, and
sells Henkel’s Loctite brand products in the consumer market.
Sa
In the industrial market, Toagosei as well as Alteco and Taoka Chemical are strong. In the domestic
market, many types of cyanoacrylate esters are consumed, but export products are mostly ethyl
cyanoacrylate. Daiichi-Sankyo Company distributes Toagosei’s Aron Alpha in the medical segment.
Table 73 shows the major cyanoacrylate adhesives producers in Asia.
•
SRI CONSULTING
DECEMBER 2009
145
Table 73
Major Asian Producers of Cyanoacrylate Adhesives—2009
Company and Plant Location
Trade Name
Remarks
Beijing Beihua Fine Chemicals
Beijing
20
09
China
Beihua
Changshu Jiangnan Adhesive Co., Ltd.
Changshu, Jiangsu
Geliahao
Golden Roc Chemical Co., Ltd.
Taizhou, Zhejiang
Golden Roc
Henkel-Loctite (Yantai) Co. Ltd.
Yantai, Shandong
Loctite
Taizhou Henco Glue
Taizhou, Jiangsu
Japan a
Alteco
Large market share.
ep
Alteco Co., Ltd.
Japan, China
Indonesia (repackaging)
Singapore (raw material)
Wanda
or
t
Shanghai
Large market share.
fr
Xiangfan, Hubei
The largest producer of cyanoacrylate
adhesives in China.
om
Fushun, Liaoning
Cyanon
Taoka Chemical Co., Ltd.
Japan, India (raw material)
Cyanobond
pl
e
R
Koatsu Has Kogyo Co., Ltd.
Japan
Japan, Thailand
Sa
m
Toagosei Co., Ltd.b
Japan, China (repackaging)
Repackaging is mostly outsourced,
since the closure of repackaging plant
in China in 2008.
ThreeBond
Alon Alpha®
Krazy Glue®
Large market share.
Korea, Republic of
Axia Korea (Alteco Korea)
Republic of Korea
Axia
Taiwana
Tex Year Industries, Inc.
Taiwan, China (repackaging)
Three Seconds
Taiwan, China (repackaging)
Evobond
•
SRI CONSULTING
a.
b.
Company also has a repackaging plant in the United States.
SRI Consulting.
20
09
SOURCE:
DECEMBER 2009
146
With growing consumption expected in Asia, Japanese producers have been active in establishing their
presence with either production plants or specifically designed repackaging plants. The moisturesensitivity of cyanoacrylate adhesives demands that specialized facilities be used to repackage these
products that are different from the standard repackaging units that most distributors operate.
fr
om
There are at least twenty producers of cyanoacrylate adhesives in China in 2008. The production of
cyanoacrylate adhesives has increased very rapidly in the last three years. Zhejiang Golden Roc
Chemicals Co., Ltd. is the largest local cyanoacrylate adhesive producer in China, with an annual capacity
of 3 thousand metric tons in 2008. Half of the cyanoacrylate adhesive products produced by Golden Roc
are exported.
Prices
or
t
Prices for the raw material ingredients for cyanoacrylate adhesives increased following the ramp up in oil
and energy prices, and acrylates in general from 2005-2008. While prices have risen at the wholesale
level, retail prices increases have been restrained in the United States because of strong competition
among regional distributors and national retailers.
R
ep
U.S. prices for industrial grades of cyanoacrylate adhesives can exceed $130 per kilogram and average
about $75 per kilogram. Consumer adhesives are much more expensive on a per weight basis because of
the small package quantities and high retail markups. In 2009 retail consumer prices were as high as $750
per kilogram. The products also have a relatively short shelf-life, making stock rotation a critical issue.
pl
e
In Western Europe, prices vary by country, with consumer-grade cyanoacrylate adhesives selling at £27
($45) per kilogram in the United Kingdom and 32 euros ($47) per kilogram in France. Specialty
adhesives for industrial use are often sold for as much as 135 euros ($200) per kilogram. Consumer
adhesives are extremely expensive on a per-kilogram basis because of small package quantities and high
retail markup.
Sa
m
In Japan, the prices for cyanoacrylate adhesives ranged from ¥600 to ¥1,200 for 20 grams, or ¥30,00060,000 ($300-600) per kilogram. Bulk cyanoacrylate liquid is not as expensive, about ¥20,000 ($200) per
kilogram. Repackaging small quantities creates a significant added cost for the producer, which is passed
on to the consumer. Taiwanese products are sold at lower prices in Japanese discount stores.
In China, prices have declined recently because the production of cyanoacrylate adhesives has increased
so rapidly in the last three years. The price for the most cyanoacrylate adhesives was about 100-120
renminbi per kilogram, equal to $14.40-17.30 per kilogram in 2008. Some expensive product could reach
5,000 renminbi per kilogram, equal to $719 per kilogram.
•
SRI CONSULTING
DECEMBER 2009
147
Trends and opportunities in the cyanoacrylate adhesives industry include the following:
Efforts to improve heat resistance (three-dimensional cross-link), impact resistance and flexibility
(by modifying elastomer) have resulted in some improvement of adhesion strength and resiliency,
while maintaining the quick-set ability. To achieve such properties, one possibility is to combine
(not blend) other elastic adhesives, such as silyl-modified polyether (SMP). For example, when
binding wide surface area substrates, cyanoacrylate can be applied in spots (like nails) and SMP
can be applied in lines (imparting excellent final adhesion strength and durability).
●
Some producers have developed primers that allow the bonding of polyolefins by cyanoacrylates.
This is increasingly important because polyolefins are increasingly replacing PVC in many
applications in construction and the automobile industry.
●
Toagosei has developed a new product series (Aron Alpha Extra, a high-purity cyanoacrylate) by
reducing impurities, such as alkyl cyanoacetates, that inhibit polymerization of cyanoacrylate.
The Aron Alpha Extra products have higher tensile strength than conventional types after having
heating histories.
fr
om
20
09
●
or
t
Radiation-Curable Adhesives
General description
R
ep
Radiation-curable adhesives are special formulations that cure upon exposure to ultraviolet (UV), electron
beam (EB) or visible light (VL) radiation. More than 95% of radiation-curable adhesives are acrylate
monomers and acrylate oligomers derived from epoxies, polyesters, polyethers, urethanes, and hybrids of
these polymers. Unsaturated polyesters are also used to a limited extent. These adhesives often contain
photochemical polymerization initiators and photosensitizers and are supplied as viscous liquids that
contain no organic solvent or water.
m
pl
e
The effective curing of UV adhesives depends on the correct wavelength and intensity of exposure at the
bond line. Consequently, it is important that the substrates be transparent to UV light. The advantages of
radiation-cure systems over other cure methods include rapid speed of cure, reduced equipment space
needs and lower energy requirements. The use of UV radiation to cure adhesives provides an alternative
to conventional two-component, thermally cured or solvent-based product. UV-curable adhesives using a
cationic initiator with cycloaliphatic epoxy/oxetane derivatives, polyglycidylmethacrylate, and vinyl ether
oligomers have been developed in recent years. Although the cost of the adhesive is higher, these are used
in some DVD and LCD sealing applications.
Sa
Visible light and electron beam adhesives offer some advantages over UV-cure systems, which has
helped to increase their use. UV-cure adhesives can only be used on transparent substrates that do not
absorb UV light. Visible light radiation can penetrate UV-absorbing substrates and allows for use of
colored substrates. EB radiation has the best transmission, allowing the use of these adhesives on highly
filled and even paper or metallized substrates.
The property differences are shown in the following table:
•
SRI CONSULTING
DECEMBER 2009
148
Table 74
Comparison of Radiation-Cure Methods
Ultraviolet
Visible Light
Advantage
Disadvantage
Not for large surface
areas
Heat generation
areas
Heat generation
20
09
Esters of (metha) acrylic
acid and glycols,
urethane acrylate,
epoxy acrylate
Esters of (metha) acrylic
acid and glycols, urethane
acrylate, epoxy acrylate,
silicone acrylate,
vinyl ethers
436 nm wavelength
DVD disks
LCD seal
Medical applications
(disposable needles),
dental uses
Applicable on opaque Less heat generation
substrate
Safety
Applicable on opaque
substrate
areas
Storage stability
Less than 10 nm, with 200
kV of electron beam
Tape applications,
including sticky pressuresensitive adhesive tape
Applicable on large surface
areas
Less heat generation
Applicable on opaque
substrate
High initial capital
investment
Generation of ozone
SRI Consulting.
R
SOURCE:
Polyfunctional vinyl
ethers, aliphatic/
cycloaliphatic
epoxy compounds,
polyglycidyl
methacrylate
None
Extremely expensive
None
om
Specific Applications
Radical initiator
Less expensive
Expensive
fr
Typical Wavelength
Cationic initiator
Expensive
Very expensive
or
t
Type of Monomer
Radical initiator
Expensive
Expensive-very
expensive (LCD seal)
Esters of (metha)
acrylic acid, glycols,
urethane acrylate,
epoxy acrylate,
silicone acrylate,
unsaturated polyester
365 (or less) nm
wavelength
Lenses, watch glass,
electrical/electronics
chips, parts,
DVD disks, LCD seal,
PDP anti-wet, etc.
Wide variety of uses,
low initial capital
investment cost,
industrial standard
ep
Initiator Type
Equipment Cost
Cost of Initiator
Electron Beam
Sa
m
pl
e
Radiation curing has had particular success in coatings and ink markets, where UV light can be directly
radiated onto the substrate surface. For adhesives, the primary issue is the need for adequate levels of
radiation at all parts of the adhesive layer during the irradiation procedure. In structural bonding
applications, this requirement currently limits UV adhesives use to cases where at least one of the
substrates is transparent to the incident radiation. To a limited degree, this problem has been
circumvented by the incorporation of a secondary curing mechanism into the adhesive system. For
example, UV curing can be used in conjunction with thermal, moisture, oxidative, or anaerobic cure
components in dual-mechanism curing adhesives. Cationic-catalyzed UV-, VL- and EB-radiation
adhesives typically cure adequately on their own without the need to include additives to facilitate a
secondary cure.
The most common UV-curable adhesives in use are radical initiators with (meth)acrylate monomer/
oligomers. These systems are used in many applications. The following table summarizes radiationcurable adhesive market segments:
•
SRI CONSULTING
DECEMBER 2009
149
Table 75
Radiation-Curable Adhesive Market Segments—2009
Electrical/
Electronics
Segment
DVD
Bonding
Flat Panel
Display
Dental
Medical
UV (radical)
UV (radical,
cationic)
UV (radical)
VL
Price
High
Low
Medium (PDP
display)Very High (LCD
seal)
High-very high High
Major
Region/Country
China, Japan,
Republic of Korea,
Taiwan, Europe
Taiwan and Japan
(blank media),
Asia/United
States/Europe
(DVD-ROM)
Japan and Korea Global
(LCD and PDP)
Taiwan and China
(LCD)
Application
Lenses, watch glass, DVD-R, RW,
sensors, display
RAM, ROM
Global
om
Orthodontics,
veneer, crown,
bridge and
implant
adhesive
fr
LCD “One Drop
Filling” seal,
PDP display antiwet seal
EB, UV
(radical)
Disposable
needles
Low-medium
United States,
etc.
Pressuresensitive tape
or
t
SOURCE:
VL
20
09
Type of Radiation
Tape
SRI Consulting.
ep
UV-curable products can also be used in transportation applications where they are increasingly used to
secure headlights in body structures. Uses include metal adhesion in parts of Cessna light aircraft and
composite-to-fiberglass adhesion in the structure of the Chevrolet Corvette.
m
pl
e
R
Flat-panel display applications use UV cured adhesives. In LCD-type flat panel displays, a liquid crystal
dropping method (called “one drop filling [ODF]”) is widely utilized; the UV adhesive (also called UV
seal) is applied on the outline of the glass panel, the liquid crystal is dropped inside the outlined UV
adhesive, and the other glass plate is bonded as the UV adhesive is cured by radiation. In order to avoid
the contamination of the liquid crystal, high-purity UV adhesive is used. Another flat-panel display
application is for plasma display panel (PDP), which uses a UV cure seal (antiwet seal) between the
flexible polyimide circuit film and the glass plate, to avoid moisture penetration inside the plasma
electrode.
Sa
The VL-curable adhesives market remains a very high value, but relatively small market. Their use is
growing because these systems are safer than other radiation methods, transmittance to the substrate is
better and equipment costs are reduced. In dental applications, VL-curable adhesives are used because of
their harmless radiation. 3M serves the Central and South American region through its 3M Unitek
subsidiary, providing VL-curable adhesives to dental/orthodontia segment.
EB-curable adhesives include peelable pressure-sensitive PET film tapes, some of which use silicone
acrylates. Also, EB-curable adhesives have a great opportunity in lamination for flexible packaging.
Consumption of UV-curable adhesives is expected to continue to show significant growth worldwide.
•
SRI CONSULTING
DECEMBER 2009
150
Table 76
World Consumption of Radiation-Curable Adhesives
Value
(millions of
dollars)
North America
Western Europe
Rest of Europe
Japan
China
Other Asia
Total
1.8
na
2.7
neg
0.35
na
na
2.9
na
3.5
neg
0.45
na
na
4.85
6.85
2005
2008
3.8
na
4.2
0.1
1.3
0.5
2.1
4.0
0.2
4.7
0.1
1.2
1.0
5.0
2008
60
2
70
4
71
45
260
12.0
16.2
512
Includes monomer, oligomer and all other components.
SOURCE:
SRI Consulting.
fr
a.
2002
om
1999
20
09
Volumea
or
t
FIGURE 25
World Consumption of Radiation-Curable Adhesives—2008
Rest of
Europe
0.8%
Central and
South America
0.4%
ep
China
8.8%
R
North America
11.7%
Other Asia
50.8%
Japan
13.9%
m
pl
e
Western Europe
13.7%
Sa
The radiation-curable adhesives market is relatively small in terms of quantity, but it has a relatively high
value, particularly in applications such as dentistry. The major commercial applications include pressure
sensitive, structural and assembly. The highest consumption is in the most affluent world regions
including North America (with the lowest use in Mexico on a per capita basis), Western Europe and
Japan. Consumption is also high in quickly developing and manufacturing-oriented regions such China
and Other Asia. Consumption for manufacturing in much of the rest of the world is not significant.
•
SRI CONSULTING
DECEMBER 2009
151
North America
om
20
09
In North America, radiation-curable adhesives will continue to grow at the expense of other adhesives
because they emit fewer volatile organic compounds (VOCs). The U.S. Environmental Protection
Agency, plus state and regional air quality regulators have emphasized the environmental advantages of
this technology. Nearly all of the North American radiation-curable adhesives used in pressure-sensitive
applications such as tape and labels are captively produced, primarily for labels. Laminates accounted for
over 80% of North American radiation-curable applications by volume in 2008. Electron beam (EB)
curable competes with UV curable; UV is restricted to clear or UV-transmitting materials, while EB can
be used to cure opaque substrates such as paper, metallized paper, plastics and foil laminates. However,
the large size and high cost of the EB equipment required has limited the use of these products. As costs
come down and equipment becomes more manageable, more users will switch to this technology.
Additional uses of radiation-curable adhesives in North America include product assembly for electronic
circuit boards, electronics, and automotive uses.
Consumption by segment in North America is shown in the following table:
fr
Table 77
North American Consumption of Radiation Curable Adhesives—2008
Percent
(volume basis)
Sample Applications
or
t
Segment
Industrial
Dentistry
Other
80
13
7
100%
ep
Total
Labels, pressure sensitive, laminates
Adhering crowns, bridges
SRI Consulting.
R
SOURCE:
pl
e
Consumption of radiation curable adhesives is relatively minor in Central and South America; however,
the applications in dentistry have a high value on a per-unit basis and are growing.
m
Western Europe
In Western Europe, radiation-curable adhesives are used as follows:
Pressure-Sensitive Adhesives. These are used in tapes and labels in the packaging industry as
well as in lamination adhesives, which are used in thin foils to help protect the surface of cars,
kitchen cabinet fronts or notebook display screens during transportation or installation. A very
specialized, small, but rapidly growing application is in medical tapes. The consumption of these
mostly UV curable adhesive formulations is estimated at 4.2 thousand metric tons, equivalent to a
sales volume of $47 million and growing in the range—depending on the special application—of
4%.
Sa
●
•
SRI CONSULTING
DECEMBER 2009
152
Structural Adhesives. In the transportation (automotive, airplane, train, ship) and construction
industries, these adhesives are replacing mechanical fastenings and welding because of their
lower weight, greater bonding strength, better corrosion resistance and easier processing.
●
Assembly Adhesives. These applications use small quantities of adhesives and the applications
are quite varied, ranging from electrical and electronic applications such as chip bonding in the
manufacture of printed circuit boards (PCBs), encapsulation/sealing of electronic components and
optical fiber applications to the assembly of LCDs and DVDs, waterproof diving watches, the
bonding of prisms, lenses, safety glass, loudspeakers, crystal ornaments, jewelry or solar panels.
Medical applications include the bonding of hypodermic needles into syringes and intravenous
tubing, catheters and medical filters.
20
09
●
or
t
fr
om
The 2008 consumption volume of highly specialized structural and assembly adhesives is estimated to
have been 530 metric tons in 2008, equivalent to a sales value of 15.5-16 million euros ($22-24 million).
The optoelectronics segment with DVD manufacture and optical fiber bonding is the largest subsector,
with a consumption of 250 metric tons. The DVD application is still growing annually at 5% due to the
recent commercialization of home cinema systems, while optical fiber bonding applications are
stagnating. Structural and assembly adhesives in electronic and electrical products and in transportation
and construction applications consumed about 200 metric tons and are growing in the range of 5%
annually. Assembly adhesives in medical applications and in the jewelry segment used about 25 metric
tons each.
Asia
pl
e
R
ep
In Asia, UV radiation-curable adhesives are used mainly in niche electrical/electronic applications, such
as optical pick-up devices and LCD seal, as well as in the assembly of plasma displays, disks, parts of
liquid crystal displays and for bonding lenses to glass. Another major application is DVD bonding, which
consumes large volumes of radiation-curable adhesives while being much lower priced than other
segment adhesives. Visible light–curable adhesives are used in medical devices and dental applications.
Another use is for adhesive tapes, which have a radiation-cured foamed acrylic layer on the base film.
Radiation-curable adhesive consumption by each market segment in Asia is shown below.
Table 78
Asian Consumption of Radiation-Curable Adhesives—2008
m
Segment
Percent
(value basis)
49
DVD bonding
25
Medical/VL Cure
Optical Pick-Up Devices
11
9
PDP Display and Other
Packaging/Tape
6
--a
Sa
LCD Seal
Total
Major Consuming Country
Mainly Republic of Korea, Taiwan and
Japan, with some in China
Mainly Taiwan, India and Japan, with
some in China
Southeast Asia and Japan
Mainly China and some in Southeast
Asia
Japan and Korea
Japan
Applications
LCD flat panel displays
DVD disk
Medical needles
Assembly of computers, game
systems, audio-visual equipment
PDP flat panel display
Foam tape
100%
•
SRI CONSULTING
a.
DECEMBER 2009
153
Market for packaging/tape applications are not identified.
SOURCE:
SRI Consulting.
20
09
By volume, the DVD bonding application has the largest share; about 6 thousand metric tons were
consumed in Asia in 2008, and about half was consumed in Taiwan. There was high growth for the
market in the 2000s; however, further high growth is not certain because storage media other than DVDs
may become more popular over the next five years.
fr
om
In China, UV-curable adhesive production increased at a very high growth rate in the last three years from
2005 to 2008. Production increased from 363 metric tons in 2005 to 846 metric tons in 2007, and the
annual growth rate from 2006 to 2007 reached 73% according to the statistical data by Rad Tec China. It
was estimated that the consumption of UV-curable adhesives was at one thousand metric tons in 2008.
Electronic and optical applications are the major markets for these UVs adhesive in China, representing
about 60% of the market, such applications as LCD glass adhesive, adhesive for mobile phone keys and
so on. Another important application is crystal and glass artist processing or repairing, representing about
35%. The balance of the consumption was in medical uses and other applications.
or
t
Market participants
Global
Sa
m
pl
e
R
ep
Major global suppliers of radiation-curable adhesives are presented in the following table:
•
SRI CONSULTING
DECEMBER 2009
154
Table 79
Major Global Suppliers of Radiation-Curable Adhesives as of October 2009
Company and Headquarters
UV Front Line
Electronics,
automotive, glass,
furniture, medical
device assembly
UV curing
adhesives are used
for coating,
bonding,
encapsulating,
laminating and
potting
EBECRYL®
Industrial
Remarks
Ashland purchased
Northwest Coatings
radiation curable
adhesives business in
2007.
20
09
Laminating
supplies UV-curing
anaerobics.
Metal pipe and
tubing
Epoxy acrylate.
Solar Cure™
Pressure-sensitive
adhesives
Food labeling and
removable lables
North America.
Loctite® 3974™
Medical, electronics
Glass, metal,
thermoplastic; for
disposable medical
devices, electronic
component potting
and sealing
Highly flexible, can cure
with visible light.
the United States and
Europe.
R
Henkel
Flexible packaging
ep
H.B. Fuller
United States
51345 series
or
t
Cytec Industries Inc.
Cytec Engineered Materials
Woodland Park, New Jersey,
United States
Applications
om
Chemence Ltd.
Segments
fr
Ashland
Covington, Kentucky,
United States
Trade Name
Lite-Lok
Industrial
Glass and plastic
assembly
3M Unitek
United States
Prompt L-Pop™
Dental/orthodontia
Adhesive for crowns Dental adhesive
application has
and tooth veneers
extremely high value.
and orthodontic
appliance temporary
attachment to teeth.
Sa
m
pl
e
Permabond
Somerset, New Jersey,
United States
SOURCE:
North America
The global companies listed in Table 79 above serve most of the radiation-curable adhesives market in
North America.
•
SRI CONSULTING
DECEMBER 2009
155
As these products have grown in popularity, many major adhesives producers have added radiationcurable products to broaden their product lines.
20
09
The supply to Central and South America is primarily from the global companies listed in the global
producer table above.
Western Europe
om
There are about 20-25 producers of radiation-curable adhesives in Europe. Table 80 lists the major ones.
Henkel, with its various subsidiaries, as well as 3M are present globally in many segments of structural
and nonstructural adhesives. BASF, with a market share in excess of 50%, is the leader for pressuresensitive and lamination adhesives for labels and tapes in Europe, joined by Henkel, Collano, Novamelt
and Sika (formerly Sika Tivoli France).
fr
Table 80
Western European Producers of UV/EB-Curable Adhesives—2009
Trade Name
BASF AG
Ludwigshafen, Germany
acResin®
Acrylic hot melt, UV-cured pressure-sensitive adhesive
(PSA) systems for labels and specialty tapes and films
Ecomelt™
PSA hot melt adhesives
ep
Collano AG
Sempach-Station, Switzerland
Markets
or
t
Company
Delo Industrie Klebstoffe GmbH & Co. KG
Landsberg, Germany
Electronics
DIC Europe GmbH
Daicure™
Optoelectronics, DVDs
Henkel Technologies Loctite
Dublin, Ireland
Loctite
Transportation, electronics and maintenance industry,
medical devices
Huntsman Advanced Materials
Duxford, Cambridge, United Kingdom
Araldite™
Optoelectronics, DVDs
Loxeal Engineering Adhesives Srl
Cesano Maderno, Italy
Loxeal™
Glass-to-glass and glass-to-metal bonding
Novamelt GmbH
Wehr, Germany
Novamelt™
PSA hot melt and laminating adhesives
Panacol-Elosol GmbH
Oberursel, Germany
Vitralit™
Electronics, glass, medical applications
Permabond Ltd.
Lite-Lok
Glass and plastic assembly
Sika
Drome, France
SikaMelt™
PSA hot melt adhesives
Sa
m
pl
e
R
Delo-Photobond
Delo-Katiobond
SOURCE:
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
156
20
09
Most producers of UV-curable formulations for the structural adhesives markets specialize in particular
chemistries and therefore supply to only two or three main segments. Leaders in the various markets
include, for example, Huntsman Advanced Materials and Dainippon Ink and Chemicals (DIC) for
optoelectronics/DVDs (in 2005, DIC bought Eques Coatings, a Dutch manufacturer of UV-curable
coatings and adhesives for optical discs, the former coatings division of Philips Electronics), PanacolElosol for decorative glass applications, Delo Industrie Klebstoffe for smart cards and Loctite for the
medical devices segment.
Asia
om
In the electronics segment (except DVD bondings), four major suppliers share a total of 90-95% of the
market in Asia: Sekisui Chemical, Kyoritsu Chemical, Three Bond, and Henkel. On a value basis, Sekisui
Chemical and Kyoritsu Chemical have higher share in LCD seal applications. In optical pick-up
applications, Three Bond, Kyoritsu Chemical and Henkel have the higher shares. Other niche suppliers
include Sunrise MSI and Denki Kagaku Kogyo, which share the market in lens bonding applications.
fr
In the DVD bonding segment, DIC Corporation and Sony Chemical & Information Devices have the
largest market share, followed by Nippon Kayaku; these three companies share nearly 90% of the total
world market.
or
t
Both UV-curable and visible light–curable adhesives are used in medical tool applications. Henkel has the
largest share in Asia, with both UV and visible types, for such uses as disposable needles. Ardel has the
largest share of the dental application, as visible light–cure adhesives. Toagosei also has some market
share in visible light–cured adhesives.
Sa
m
pl
e
R
ep
In the adhesive tape segment, in Japan, Sumitomo 3M has dominated the market until recently. However,
some basic patents by 3M are expiring, and other Japanese companies have begun to enter the market.
The table below summarizes the major suppliers of radiation-cure adhesives in each product type.
•
SRI CONSULTING
DECEMBER 2009
157
Table 81
Major Asian Suppliers of Radiation-Curable Adhesives—2009
Company and Plant Locations
Trade Name
Segment
Remarks
Golden Roc
Glass and art
Yantai, Shandong
Loctite
Electronics,
medical/VL cure
Huitian (Guangzhou) Fine Chemical Co., Ltd.
Xiangfan, Hubei
Huitian
Electronics
Electronics
Shenzhen Meitaibang Chemical Co., Ltd.
Shenzhen, Guangdong
Glass and art
fr
Ransheng Chemical Co., Ltd.
Weitai Chemical Co., Ltd.
Suzhou, Jiangsu
or
t
Electronics
Japan
Ardel Co., Ltd.
Japan
Electronics,
medical/VL cure
ep
Ardel
Electronics
R
Asec Co., Ltd.
Japan
Chemitec Co., Ltd.
Japan
Optoelectronics.
om
Golden Roc Chemical Co., Ltd.
Taizhou, Zhejiang
20
09
China
Electronics
Hardloc
Electronics
DIC Corporation
Japan
SD series/Daicure
DVD bonding
China as raw material source
for UV oligomers.
World Rock
Electronics
LCD seal and optoelectronics.
m
pl
e
Denki Kagaku Kogyo Kabushiki Kaisha K.K.
Japan
Kyoritsu Chemical Co., Ltd.
Japan
Sa
Lintec Corporation
Japan
Packaging/tape
Nippon Kayaku Fukutama Co., Ltd.
Japan
Kayarad/Kayacure
DVD bonding
Sekisui Chemical Co., Ltd.
Japan
Photolec
Electronics
•
SRI CONSULTING
LCD seal.
DECEMBER 2009
158
Major Asian Suppliers of Radiation-Curable Adhesives—2009
Company and Plant Locations
Trade Name
Segment
Remarks
Soken Chemical Co., Ltd.
Japan
Packaging/tape
Sony Chemical & Information Devices Corp.
Japan
SK series
DVD bonding
Packaging/tape
Sunrise MSI Co., Ltd.
Japan
ThreeBond
Electronics
fr
Photobond
Japan, Singapore
Toagosei Co., Ltd.
Japan
Electronics
Optoelectronics and LCD seal.
Electronics
Medical/VL cure
or
t
Arontite BU
Luckstruck LCR
Taiwan
Eternal Chemical Co., Ltd.
Taiwan
ep
DVD bonding
Tai Tsang Co., Ltd.
Taiwan
R
Tex Year Industries Inc.
Taiwan
DVD bonding
Dymax
DVD bonding
SRI Consulting.
pl
e
SOURCE:
Large market share in Sony
products, including games and
Blu-ray disks.
om
Sumitomo 3M Co., Ltd.
Japan
20
09
Japan (continued)
Prices
Sa
m
Prices for UV/EB-curing adhesives vary considerably, depending on the market segment, product, and
quantity ordered. For example, prices for UV-curable adhesives for electrical/electronic applications are
much lower than those for medical/dental.
In the United States, the average price is about $60 per kilogram, but can range up to $2,000 per kilogram
for specialized products. Prices in Germany range from 60 euros to 700 euros ($88-1,000) per kilogram.
In Japan, the market prices for UV-curing adhesives for electronic applications varied depending on the
applications: (1) adhesives for DVD bonding are the least expensive, at about ¥1,500-2,000 ($15-20) per
kilogram; (2) for optical pick-up and general medical uses, prices are about ¥3,000-3,500 ($30-35) per
kilogram, but ISO 10993–approved UV/VL adhesives for medical use are much higher; and (3) for LCD
seal, ¥210,000-300,000 ($2,100-3,000) per kilogram.
•
SRI CONSULTING
DECEMBER 2009
159
In China, the price of UV-curable adhesives for electronic applications was in the range of 400-1,000
renminbi per kilogram, equal to $57-144 per kilogram in 2008. The price of UV-curable adhesives for
furniture, glasses and artists varied from 70-200 renminbi per kilogram, equal to $10-29 per kilogram.
20
09
The UV/EB-curing adhesives trends include:
Flush UV-radiation-type equipment has been developed. Flushed UV light (strong radiation
within a very short time) can go through less transparent substrates such as polycarbonate. As a
result of such a short UV radiation time, heat generation is negligible, and this is an advantage in
such applications as DVD-ROM.
●
New cationic silicone UV/EB adhesives are being tested for possible use on quick-release
surfaces for a variety of “sticky” applications such as in tapes, labels and envelopes.
●
Improved UV- and EB-curing adhesives are being developed that require less intense light for
curing. Full-size EB units cost as much as $260,000; only a few companies, such as pressuresensitive tape companies, can afford to install such expensive equipment. Smaller EB units (also
called mini-EBs) are about half the price, but are still more expensive than UV systems ($4,00018,000, depending on size). VL equipment is less expensive than UV equipment.
●
The next-generation flat panel display material is OLED (organic light emission diodes), which is
susceptible to heat. VL-type radiation-curable adhesives will be a choice as adhesive because it
can minimize heat generation.
ep
or
t
fr
om
●
R
UV radiation is also being used to reduce the adhesion of some resin systems. In electric dicing, UV
radiation polymerizes the adhesive to ease removal of a tape that it is holding. The current market volume
of this application is negligible.
pl
e
H IGH PERFORMANCE SEALANTS
Overview of the Industry
m
General description
Sa
In 2008, the global sealants market was valued at $5.6 billion, while the specialty sealants portion was
worth about $5.0 billion.
By definition, sealants are materials that fill gaps between substrates while also adhering to their surfaces.
They are based on synthetic or natural materials of varied chemistries. Some sealants use the same
synthetic resins as those used in adhesives although sealants are formulated differently to maximize
elasticity and flexibility, not cohesive strength. They are, however, much stronger than putties and caulks.
Sealants are not only able to fill gaps in the joint, but are also especially effective in excluding moisture,
air, oils or chemicals. They also function as thermal and acoustic insulators and as electrical insulators in
some applications.
•
SRI CONSULTING
DECEMBER 2009
160
Fillers, pigments, plasticizers, curing agents and other additives are added to the polymer to formulate the
sealant. Formulations vary significantly depending on the properties required and the particular polymer
being used. Silicone sealants, for example, contain on average 60% polymer and only 20% acrylic
sealant.
20
09
The types of sealants and their relative importance are shown in Table 82. This report focuses on high
performance sealants.
Table 82
U.S. Performance Rating and Market Shares of Caulks and Sealants—2008
(percent)
Market Share
42
13
6
2
11
6
8
3
9
69
12
10
3
2
1
1
<1
2
100%
100%
fr
High
High
High
High
Medium
Medium
Low
Medium
By Value
or
t
Silicone
Urethane
Silyl-Modified
Polysulfide
Acrylic Latex
Butyl
Oil-Based Caulk
Polyvinyl Acetate Latex
Other
By Volumeb
om
Performance
Ratinga
Total
On a relative basis, from high to low. Low performance sealants will
withstand 5% extension or compression before joint failure, medium
performance sealants 5-12%, and high performance sealants 25-50%.
b.
Fully formulated sealants.
R
ep
a.
SOURCE:
SRI Consulting.
Sa
m
pl
e
The key performance properties in sealants are movement capability, adhesion, life expectancy and
material cost. A widely used classification for sealants is joint movement tolerance. Those sealants with
the largest joint movement tolerance—25% or more, and with >80% recovery—are classified as high
performance (silicones, polysulfides, polyurethanes and silicon-modified polyethers). These sealants can
accommodate relatively large amounts of joint compression or tension with good recovery; the others are
brittle and exhibit excessive shrinkage on cure or significant creep under stress. High performance
sealants are suitable for use in commercial building and construction for exterior siding. Medium and low
performance sealants are typically used in the interiors of commercial buildings and in residential
construction and repair.
•
SRI CONSULTING
DECEMBER 2009
161
Table 83
Property Comparison of High Performance Sealants a
Polyurethane
Silicone
Silyl-Modified
Polyether
++
+
++
--/+
+
+
-+
+
+
++
++
-+
+
+
-+
--/+
-++
-+
--/+
-++
-++
++
--/+
++
++
+
+
++
+
+
+
a.
om
Chemical Resistance
Elasticity
Mechanical Properties
Odor
Paintability
Relative Price
Shelf Life
Surface Preparation
Temperature Resistance
UV Resistance
Dashes indicate “low.”
SRI Consulting.
fr
SOURCE:
20
09
Polysulfide
R
North America
ep
or
t
Among the high performance sealants, silicone products offer the best overall properties for most
applications, although they are more expensive, and some formulations cannot be painted and require
surface preparation. Polysulfide systems are best for corrosive environments and polyurethane sealants
offer mechanical properties. As manufacturers target productivity, the reduced surface preparation of
silicon-modified polyethers is becoming more important.
The total consumption of specialty sealants in North America in 2008 was approximately 95.3 thousand
metric tons with a value of about $1.0 billion.
Sa
m
pl
e
Table 84
North American Consumption of
Specialty Sealants—2008
(percent)
By Volume
Construction
Transportation
Consumer
Assembly/Other
Total
SOURCE:
By Value
67
14
12
7
64
17
11
8
100%
100%
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
162
20
09
The major markets for sealants include building and heavy construction (roads and bridges),
transportation (autos, trucks, rail vehicles, aircraft, ships and offshore rigs), consumer, and assembly
applications. In the building and construction market, sealants are used to seal building joints, glass
window panes to metal and wood sash, and in many other applications. An estimated 66% of usage is for
new buildings, with the remainder for remodeling and retrofitting, particularly for energy conservation. In
North America, growth has been higher in the use of sealants in the restoration of older buildings and the
maintenance of new, lighter construction technologies (e.g., those using large numbers of veneers and
panels). Rising energy prices and government incentives (economic stimulus spending) have also
increased the use of sealants to prevent air leakage.
om
The automotive industry requires constant innovation because of changes in substrates (plastics) and
coatings. Usage has also been growing as a result of the continuing replacement of mechanical fasteners
encouraged by the vibration damping properties of sealants. Currently, an estimated 9 kilograms of
sealant are used in each car.
The aerospace segment declined in 2008, particularly in civil aviation, but increased military/defense
orders and maintenance has partially offset this loss.
fr
Growth in consumption of specialty sealants will vary by sealant as shown below.
Table 85
or
t
North American Average Annual Volume Growth Rates
for Specialty Sealants—2008-2013
(percent)
ep
Polysulfide
Polyurethane
Silicone
Silyl-Modified Sealants
R
SOURCE:
2.0-3.0
2.0
3.0-4.0
6.0
SRI Consulting.
pl
e
Sa
m
Growth in Central and South America is expected as follows:
Table 86
Central and South American Average Annual Volume
Growth Rates for Specialty Sealants—2008-2013
(percent)
Polysulfide
Polyurethane
Silicone
Modified Silicone
SOURCE:
4.0
3.0
4.0-5.0
6.0
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
163
Western Europe
20
09
The value of the Western European market for specialty sealants in 2008 was estimated at $1,388 million,
of which $760 million was silicone sealants. The most important market for specialty sealants in Western
Europe is the commercial and residential construction industry. Other applications are in transportation
(mainly automobiles, but also trailers, trucks, boats and railroad equipment), the manufacture of grinding
disks, and the production of special coated roofs and awnings. The Western European aerospace industry
is a less important market for sealants than is that of the United States, but it has been steadily growing as
Airbus Industrie has gained global market share in the commercial aircraft sector.
Table 87 gives estimates of the relative importance of various sealant markets in Western Europe.
Table 87
By Volume
45
24
14
17
fr
45
24
13
18
By Value
or
t
Construction
Transportation
Consumer
Assembly/Other
om
Western European Consumption of
Sealants—2008
(percent)
Total
100%
SRI Consulting.
ep
SOURCE:
100%
R
In the consumer segment, silicone and acrylic sealants together account for about 80% of the Western
European market in both quantity and value, but silicones clearly predominate. The remaining 20% of the
market is shared almost equally by polysulfides, polyurethanes and polyisobutylene.
pl
e
The use of high performance sealants will grow in Western Europe at about 2.2% per year for the next
five years. The building and construction industry stagnated from 2002 through 2003 due to the economic
recession, which slowed construction activity throughout Europe. The recovery in automotive segments
and increasing investment in renovations and new buildings in the following years fueled growth near
GDP levels.
Sa
m
The recent economic downturn starting in late 2008 and 2009 had a major impact on Western European
construction markets, as well as the automotive sector. In 2009, GDP within the Euro Zone fell by about
4%, but the first and second quarter of 2009 were as bad as –11%. To support the automotive industry,
programs were initiated in several Western European car manufacturing countries, similar to “cash for
clunkers” in the United States. This limited-time-offer increased car sales again in 2009. For 2010 though,
very low growth in car sales is expected.
In the construction sector, some sectors will show stronger growth, such as double- and triple-glazed
windows for new construction.
Western European consumption of formulated specialty sealants is estimated at 165 thousand metric tons
in 2008. Figure 26 shows consumption of high performance types of sealants in Western Europe by
percent.
•
SRI CONSULTING
DECEMBER 2009
164
FIGURE 26
High Performance Sealants—2008
Polysulfide
9%
Polyurethane
25%
fr
om
Silicone
59%
20
09
Silyl-Modified
Polyether
7%
ep
Japan
or
t
Many multinational producers are targeting southern and Eastern Europe to motivate consumption in
these developing markets. In particular, southern European consumers are starting to demand higherquality sealants, which are not manufactured in that region. To penetrate the market, sealant
manufacturers are selling products at low-level entry prices with the intent of raising them when the
products are established. In Central and Eastern Europe, an average annual growth rate of about 6.2% is
estimated for the next five years.
R
A breakdown of Japanese consumption of sealants on a value basis is shown in Figure 27.
Other/
Consumer
2%
Electrical/Assembly
7%
Transportation
13%
Sa
m
pl
e
FIGURE 27
Japanese Consumption of Sealants
on a Value Basis—2008
Building and
Construction
78%
•
SRI CONSULTING
DECEMBER 2009
165
A breakdown of Japanese consumption of sealants on a volume basis is shown in Figure 28.
FIGURE 28
Japanese Consumption of Sealants
on a Volume Basis—2008
om
20
09
Other/
Consumer
Electrical/Assembly 1%
3%
Transportation
12%
fr
Building and
Construction
84%
or
t
In the building/construction segment the main application is joint sealing materials for siding board,
panels, and tiles. The main transportation application is direct glazing window sealant and PVC paste for
automobile body sealers, joining glass to metal.
ep
Specialty sealant consumption by type of resin in Japan is shown below.
Polysulfide
6%
pl
e
R
FIGURE 29
Japanese Consumption of Specialty Sealants—2008
Urethane
26%
Sa
m
Silicone
42%
Modified Silicon
26%
•
SRI CONSULTING
DECEMBER 2009
166
Silicone Sealants
General description
20
09
Silicone sealants are very versatile products that have excellent resistance to ultraviolet radiation, ozone
and most chemicals. They also offer good thermal stability, low-temperature flexibility and long-term
aging properties. Formulations typically include adhesion promoters and fillers, to increase flexibility and
tensile strength.
om
Silicone sealants can be one- or two-component systems. The polymer is usually based on methylsubstituted polysiloxanes and a cross-linker, which is hydrolyzable by exposure to moisture. The Si-OH
segments rapidly condense with cross-linkers, forming Si-O-Si bonds in a three-dimensional heavily
cross-linked structure. One-component silicone sealant properties by type of cross-linker are as follows:
Table 88
One-Component Silicone Sealant Properties by Type of Cross-Linker
Acetone
Release
Alcohol
Release
Hydroxylamine
Release
fr
Acetic Acid
Release
Oxime
Release
Acetic acid
Acetone
Methanol
Advantage
Fast cure, strong
adhesion,
transparency
Heat resistant,
fast cure, nontoxic
Noncorrosive,
Low modulus, low
adhesion to various odor
substrates
Noncorrosive,
adhesion to various
substrates
Disadvantage
Corrosive to
metal, toxic
Yellowing
Slow cure,
reversion
Slow cure, inhibition
of cure by alcohol
Corrosive to copper
Odor
Acetic acid odor
None
None
Amine odor
Slight
Price
Lower
Application/
Major Substrate
Glass
ep
Middle
Slightly higher
Middle
Chimney
Polycarbonate
Large glass tank,
refinish on oil caulk
Glass, metal, antibacteria
R
Slightly higher
SRI Consulting.
pl
e
SOURCE:
Diethylhydroxylamine Methylethyl ketoxime
or
t
By-Product
The acetic acid release type is mainly used because of lower cost and strong adhesion. However, because
of its strong acetic acid odor, use is limited in Japan, where the oxime release type is mainly used.
Sa
m
In the case of two-component types, linear or cyclic aminoxy siloxane, tetraethoxy silane, tetrapropoxy
silane, ethyl orthosilicate, for example, and the activator portion, an organometallic catalyst such as
dibutyltin dilaurate, are packaged separately and must be mixed with the silicone at a set ratio. The
silicone polymer content of these materials is 60-80% of the formulation with a minor percentage of
cross-linkers. Pigments, fillers and rheological agents are also added. The one-component systems are
called room-temperature-cure vulcanizates (RTVs) and can be compounded into low-, medium- or highmodulus sealants. The one-component systems are preferred because of their ease of use. Two-component
systems account for an estimated 10% of the market and are preferred for structural glazing.
In Western Europe, silicone sealants compete with polyurethane and polysulfide sealants in some
specialized applications. They also compete to some extent with medium performance sealants based on
acrylics. Silicone products will continue to replace lower performance sealants, such as those based on
butyl rubber.
•
SRI CONSULTING
DECEMBER 2009
167
20
09
During the early through mid-2000s, about 80% of silicone sealants were used in building and
construction applications. In the U.S., this use declined significantly in 2006-2008 and at least through the
first three quarters of 2009. Other applications are in the electrical/electronic, automotive, appliance and
other industries. To balance properties and reduce cost, silicones are often blended with other polymers
such as acrylics or isobutylene.
om
Silicones are widely used in the construction industry for structural glazing, sealing metal-to-glass joints
on windows and doors, and for bathroom and kitchen appliances. Other demanding applications include
expansion joints between dissimilar materials, and for weathersealing in high-rise buildings, airport
runways, and highways. Do-it-yourself (DIY) consumers use relatively large quantities of silicones for
applications such as bathtub, kitchen, and window sealing, and as general household glues and sealants.
Silicone sealants are used to bond mirrored glass to metallic structures, such as the Grand Louvre
Pyramid in Paris and modern high-rise office buildings.
or
t
fr
In many applications, silicone sealants also perform as adhesives. For example, in structural glazing on
glass-walled buildings, the sealant also acts to adhere the glass to the building framework. Silicones do
not display the high tensile strength of epoxies, acrylics, and others, but display superior durability and
dependability when exposed to conditions of high humidity, chemical attack, or electrical stress. In
addition, silicones allow some movement between the bonded parts, thus dissipating some of the shearing
stresses that can result from the differences in thermal expansion of dissimilar materials.
R
ep
Silicone sealants are also used in the electrical appliance and automotive industries. Typical examples of
applications in the electrical appliance industry are housings, refrigerators, and potting of electronic and
membrane switches. Electroconductive silicone sealants are used in sealing electromagnetic interferences
and in antistatic applications. Other uses are in marine applications (e.g., to bond seals and windows and
plastic panels) and automotive applications (e.g., to bond beams to fascias on thermoplastic bumper
systems, and headlamps and rearview mirrors to plastic housings and formed in-place gaskets). Silicone
sealants have also found a niche market in the bonding and sealing of large aquariums (in France, the
Netherlands and Brazil, for example) where the requirements for a sealant that is nontoxic, inert,
transparent and high strength were perfectly met by silicones.
Sa
m
pl
e
The use of silicone sealants has grown in recent years, as indicated in Table 89. Silicones continue to
replace butyl, neoprene, bitumen and polyurethane sealants in highly demanding applications such as
filling expansion joints in concrete roads. The use of a lesser performing sealant leads to rapid
deterioration of highway concrete and the underlying rock bed. In addition, the increase in construction of
curtain wall buildings has led to an increase in demand for one- and two-component silicone adhesives/
sealants. Demand has also been strong in the electronics industry.
•
SRI CONSULTING
DECEMBER 2009
168
Table 89
World Consumption of Silicone Sealants
2002
2005
2008
73
na
76
na
22
na
na
na
86
na
82
na
23
na
na
na
93
20
88
13
20
75
50
13
68
19
94
16
21
114
55
14
171
191
372
401
North America
Western Europe
Rest of Europe
Japan
China
Other Asia
Rest of the World
Total
2008
815
200
760
110
250
736
385
168
om
1999
20
09
Valueb
(millions of
dollars)
Volumea
3,424
Includes only the resin portion of the formulation. Generally, the silicone resin
content is about 60-80% of the total.
b.
Value fully formulated.
SRI Consulting.
or
t
SOURCE:
fr
a.
ep
FIGURE 30
World Consumption of Silicone Sealants, Value Basis—2008
Rest of the
World
Rest of Europe 4.9%
3.2%
Central and
South America
5.8%
R
North
America
23.8%
pl
e
Japan
7.3%
Sa
m
Rest of Asia
11.2%
Western Europe
22.2%
China
21.5%
North America
The pie chart below shows North American consumption of silicone sealants by segment.
•
SRI CONSULTING
DECEMBER 2009
169
FIGURE 31
North American Consumption of Silicone Sealants—2008
Transportation
2%
Other
4%
om
20
09
Consumer/DIY
16%
fr
Construction
78%
or
t
North American consumption is expected to grow at an average annual rate of 3-4% per year through
2013; however, it is expected that 2009 will show a further decline from the levels of 2008.
R
Western Europe
ep
Consumption in the region is dominated by applications in construction. While construction growth
slowed in 2008, and likely in 2009, overall growth in silicone sealant consumption is expected to resume
at an average annual rate of 3-4% through 2013.
pl
e
Of the total high-performance sealants market in Western Europe, silicone-based sealants account for
about 55% on a weight basis. In Western Europe, construction dominates silicone-based sealants
consumption with a share of 79%, with 30% of construction accounted for by do-it-yourself (DIY). About
10% of the do-it-yourself products are water-based.
Sa
m
In Western Europe, RTVs (room-temperature-cure vulcanizates) are the most important curing system
both in volume and value terms. About 80-90% of all single-component RTV (RTV-1) systems are used
as general-purpose sealants in the construction and building industry. It is forecast that these systems will
continue in importance, primarily because of their cost and ease of application. Two-component RTV
systems represent the smallest segment in Western Europe because of their rather complicated application
process (mixing and dispensing equipment is required) as well as their higher cost. The use of twocomponent systems in the construction, automotive and aviation industries is, however, growing and it is
estimated that the growth rate will exceed that of RTV-1 systems over the next few years.
Construction applications are growing slightly above GDP in Western Europe. Through 2013, growth in
the construction sector is estimated to reach 2-2.5%. Also, highway construction and repair will continue,
and silicone sealants are beginning to replace the traditional bitumen and other materials that do not last
as long.
•
SRI CONSULTING
DECEMBER 2009
170
Asia
Figure 31 provides a consumption breakdown for silicone sealants in Japan.
20
09
The automotive and electrical segments have higher unit values than other segments.
FIGURE 32
Japanese Consumption of Silicone Sealants—2008
Automotive
7%
Electrical
6%
fr
om
Construction,
Two-Component
13%
or
t
Construction,
One-Component
74%
R
ep
In Japan, two-component silicone sealants are used for large curtain walls with high weatherability in
skyscrapers. Single-component products are used in automobile applications for heat resistance and
electrical applications for electrical shielding. The percentage of the market held by automobile and
electrical applications is higher on a value basis, because prices are higher than in construction
applications. In Japan, domestic shipments of silicone sealants (formulated basis) for building
construction were 24.0 thousand, 26.4 thousand, 27.4 thousand, 27.2 thousand, 30.8 thousand, and 23.9
thousand metric tons in 1995, 1997, 1999, 2000, 2002, and 2005, respectively.
m
pl
e
In China, silicone sealants are the most used sealants. Silicone sealants have been widely used in
construction. During 2001-2008 the real estate market was booming in China because of the rapidly
growing economy and the Beijing Olympic Games. Consumption of various construction materials
increased at a very high growth rate, including sealants. Silicone sealants consumption grew at an average
rate of above 25% per year from 2001 to 2005. Chinese consumption of silicone sealants was estimated at
114 thousand metric tons in 2008. Consumption of silicone sealants will continue to grow at more than a
10% average annual rate in the next five years, taking the place of some low-grade products.
Sa
Market participants
Global
Table 90 lists the major global suppliers of silicone sealants.
•
SRI CONSULTING
DECEMBER 2009
171
Table 90
Major Global Suppliers of Silicone Sealants as of October 2009
DAP, Inc./RPM, Inc.
Medina, Ohio, United States
Dow Corning Corporation
Midland, Michigan,
United States
Windows, siding,
general sealing
Dap®-Side Winder®
Dap®-Premium Paintable
Dap®-100% Silicone
Sealant
Construction
Automotive
Textiles
Electrical
Aerospace
Window glazing,
siding, general
sealing
Dow Corning®
Construction
Automotive
Textiles
Electrical
Aerospace
UltraGlaze® SSG4000
GE Silicone
GE Silicone II
Construction
Consumer DIY
ep
Shin-Etsu Silicones
Construction
Automotive
Textiles
Electrical
Remarks
Windows, siding,
general sealing
Vertically integrated
production.
In Japan, silicone
products are made by
Dow Corning Toray.
Window glazing
Outdoor and indoor
building sealing
Some of the silicone
products are made
under the GE Bayer
Silicones JV.
Momentive uses the
brand GE Silicone.
Window glazing
Outdoor and indoor
building sealing
Vertically integrated
production. Major
plant locations include
Japan, Thailand,
China, United States.
Company websites and company literature.
pl
e
SOURCE:
Construction
R
Shin-Etsu Chemical Company
Tokyo, Japan
Bostik ®
or
t
Momentive Performance Materials
Albany, New York,
United States
Applications
20
09
Bostik
Segments
om
Trade Name
fr
North America
Sa
m
All of the global silicone sealant producers listed above also serve the North American market. Table 91
lists a major regional North American producer of silicone sealants.
Table 91
Major North American Regional Suppliers of Silicone Sealants as of October 2009
NuSil
Carpinteria, California
SOURCE:
Trade Name
CF, FS, R series
Segments
Aerospace
Applications
Sealing, potting and
encapsulating
Remarks
One-part RTV, two-part systems and
fluorosilicone sealants. Nusil also
has production and sales in Europe.
•
SRI CONSULTING
DECEMBER 2009
172
20
09
Global supplier Dow Corning is the dominant North American silicone manufacturer, followed by
Momentive Performance Materials. DAP, Inc. is a partner with Dow Corning in the development of
silicone sealants, with Dow Corning supplying silicones and DAP formulating sealants, culminating in
the DAP/Dow Corning line of silicone sealants. Dow Corning has recently introduced a line of hot melt
silicone sealants that provide adhesion to metal, wood, painted sufaces, and glass as well as PVC, ABS,
and PTFE.
om
Central and South America is supplied primarily by the global companies listed in the world producer
section above.
Western Europe
or
t
fr
Western Europe has more than fifty formulators and resellers of silicone sealants. The structure of the
silicone sealants business is illustrated in Figure 33. The three major global sealant raw material
producers—Illbruck, Momentive Performance Materials (formerly GE Bayer Silicones) and BlueStar—
each have an approximate 25% share of the Western European market. Many of the major adhesive and
sealant companies such as Bostik and Henkel are resellers of sealants under their own brand name. The
“pure” formulators tend to be specialist sealant companies with their own brand names and, often, more
local markets.
ep
FIGURE 33
Structure of the Western European Silicone Sealants Industry
pl
e
R
Silicone
Polymer
Producer
Sa
m
Dow Corning
GE Bayer Silicones
BlueStar
Wacker Chemie
Momentive
Wacker Chemie
Dow Corning
BlueStar
Formulator
Bulk
Sealant
Producer
Packaging
Packaging
Resellers
Rhodia
IllBruck
Own Label
e.g., Bostik Findley
Dunlop
Sika
•
SRI CONSULTING
e.g., Henkel
DECEMBER 2009
173
20
09
There has been significant restructuring in the Western European silicone industry. In 1998, Bayer AG
and GE Plastics formed a joint venture, GE Bayer Silicones GmbH & Co. KG, encompassing the
silicones business of both partners in Europe, Africa, India and the Middle East. Also in 1998, Wacker
Chemie acquired the company Hüls-Silicone GmbH. In 2000, Dow Corning sold Perennatorwerke to the
German company Illbruck GmbH.
In December 2006, Momentive Performance Materials was created through the sale of GE Advanced
Materials and its well-known joint ventures GE Bayer Silicones and GE Toshiba Silicones to Apollo
Management, L.P.
In 2007, China National BlueStar Corporation acquired the global silicones business of Rhodia.
om
A number of companies formulate and supply silicone for sealant applications. The most important
formulators are shown in Table 92. Most of the silicone producers are significantly integrated
downstream and market finished silicone sealant products.
Table 92
fr
Western European Formulators of Silicone Sealants—2009
Company
Trade Name
BlueStar
France
Aerospace
or
t
VI-SIL
Henkel
Germany
Construction, insulating glass
Sista, Henkel
General industry, insulating glass
Perennator, Illseal
Construction
Assembly
R
Illbruck
(Perennatorwerke)
Germany
Zwaluw
ep
Den Braven BV
Netherlands
Germany
Construction
Insulating glass
Krafft SA
Spain
Silkron
Automotive
PCI Augsburg
Germany
PCI-Silcoferm, PCI-Siligum
Construction
QUILOSA
Spain
Orbasil
Automotive
Construction
Soudal NV
Belgium
Elastasil, Cenusil
Wacker Chemie GmbH
Germany
Elastocil, Cenusil
Sa
m
pl
e
Koedisil
SOURCE:
Markets
Construction
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
174
Henkel is a formulator and packager of purchased bulk silicone sealants. The company participates in the
market through its Adhesive Technologies; its wholly owned subsidiary Henkel-Toroson, in the industrial
and glass segments; and Henkel (formerly Henkel Technologies Loctite), in the automotive and electronic
segments.
20
09
PCI has a strong presence in the construction industry, but is nearly absent from the DIY market.
Perennatorwerke has ceased being a formulator and is now active only in the packaging and reselling of
bulk sealants. The company was recently acquired by Illbruck, a major German supplier of building
materials in Europe. The Dutch company Den Braven has a significant market share in the Western
European construction industry. In Western Europe, Spain, Italy and France show the highest growth in
consumption, compared with only a moderately growing market in Germany.
om
In Eastern Europe, TKK in Slovenia and Selena in Poland are among the biggest formulators. Kazan in
Russia is the only manufacturer of silicone sealants, with an annual capacity of 4.0 thousand metric tons.
Japan/Asia
fr
Dow Corning Toray Silicone, Shin-Etsu Chemical and GE Toshiba Silicones are major silicone polymer
suppliers that also dominate the silicone sealant market. Table 93 summarizes the major suppliers of
silicone sealants by product type in Japan and Other Asia.
or
t
Table 93
Major Asian Suppliers of Silicone Sealants—2009
Company
ep
China
Trade Name
China
Remarks
R
Construction.
Blue Star Chemical New Material
China
Captive resin.
Geliahao
Construction.
Guangzhou ANTAS Chemical Co., Ltd.
ANTAS
For consumer market.
Baiyun
Construction, large producer.
m
pl
e
China
Guangzhou Baiyun Chemical Industry Co., Ltd.
Sa
Hangzhou Zhejiang Silicone Co., Ltd.
Hangzhou, Zhejiang
Construction, large producer.
Xiangfan, Hubei
Huitian
For transportation.
Karmee (Foshan) Fine Chemical Co., Ltd.
Foshan, Guangdong
Karmee
Construction.
•
SRI CONSULTING
DECEMBER 2009
175
Major Asian Suppliers of Silicone Sealants—2009
Company
Trade Name
Remarks
Shanghai
Wanda
Weitai Chemical Co., Ltd.
Suzhou, Jiangsu
Weitai
For transporation.
Zhejiang Xin’an Chemical Industrial Group
Hangzhou, Zhejiang
om
Captive resin.
Other Asia
Dong Yang Silicone Co., Ltd.
Republic of Korea
fr
Captive resin, construction, electrical,
automotive; a subsidiary of DC Chemical.
Henkel Technologies Sealant Branch
(formerly Lucky Silicone)
Republic of Korea
or
t
DIY, etc.; a subsidiary of Henkel.
Koreseal
Captive resin, construction, double glazing,
automotive.
Three Bond
Automotive.
ep
KCC Corporation
Republic of Korea
Japan, Singapore
Taiwan, China
R
Electronic
SRI Consulting.
pl
e
SOURCE:
20
09
China (continued)
Prices
Prices depend on the particular application in each region.
Sa
m
General-purpose, fully formulated silicone sealants averaged about $12.00 per kilogram in the United
States in 2008 at the wholesale level. Specialty grades ranged from $35 per kilogram to several hundred
dollars. Consumer retail prices ranged from $15.50 to $31.00 in 2009.
Prices for silicone sealants in Western Europe are between $2.70 and $11.60 per kilogram depending on
the country and sales outlet. High-performance one- and two-component RTV sealants used in
automotive and electrical applications are 10-14 euros ($14.70-20.60) per kilogram.
In China, most silicone sealants are used in construction. The prices of construction silicone sealants were
42-48 renminbi per kilogram, equal to $6.00-6.90 dollar per kilogram in 2008. Locally produced
electronic silicone sealants were priced at around 65 renminbi per kilogram, equal to $9.35 per kilogram.
•
SRI CONSULTING
DECEMBER 2009
176
Opportunities and trends in the silicone sealant industry are listed below.
20
09
In Japan, prices for one-component silicone sealants for construction were in the range of ¥400-600
($4.00-6.00) per liter and two-component sealants were ¥600-800 ($6.00-8.00) per liter. Generally,
sealants for construction are sold by volume, not weight, in Japan. As the specific gravity of silicone
sealant is usually 1.1 for the one-component type, and 1.3 for the two-component type, the price becomes
a little higher per kilogram. The price in automobile and electrical applications is higher, in the range of
¥3,000-4,000 ($30-40) per kilogram.
The substitution of oxime systems in neutral silicone sealants. Oximes are under investigation in
Western Europe for possible carcinogenicity, and their use may be subject to restriction. Several
producers already offer alkoxy-substituted products as replacements.
●
Products for more demanding applications that cure faster, exhibit greater thermal stability, and
have improved adhesion properties.
●
Increased use of neutral-curing sealants that emit by-products of cure that are less corrosive and
irritating than acetic acid and amines. Some sealants now also contain accelerators that allow
more latitude in curing conditions.
or
t
fr
om
●
Silyl-Modified Polyether and Other Polymer Sealants (Modified Silicone)
ep
General description
pl
e
R
Silyl-modified polyethers (SMP) are polyethers (typically based on propylene oxide) with attached
methyldimethoxysilane groups at terminal positions. The silane end groups cure through reaction with
moisture to yield a cross-linked polymer. On curing, the sealant remains very flexible because the main
chain structure contains no unsaturated bonds or high cohesive linkages. The polymers have relatively
low viscosity and can accommodate large volumes of fillers.
m
One- and two-component SMP systems are available. One-component systems are easy to use and neither
one-component nor two-component requires a primer. However, primers are recommended when sealing
cement. The two-component formulations are used when a faster, more thorough cure is required
(especially for thick sections) and when applied under dry conditions.
Sa
Other advantages include excellent adhesion to various substrates, good durability, including high
resistance to UV radiation and low shrinkage (<2%). SMP products also cost less, are less prone to pick
up dirt, and are easier to paint than silicone sealants. However, they display lower elasticity and are not as
weather and heat resistant. Kaneka has developed a weather-resistant acryl-modified SMP and silylmodified polyisobutylene. Recently, silyl-modified polyurethane has been developed and marketed by
some companies.
Compared with less expensive polyurethane sealants, silyl-modified sealants require only a single primer
coat, and have a longer shelf life; these advantages can lead to a lower cost-in-use for the silyl-modified
polyethers.
•
SRI CONSULTING
DECEMBER 2009
177
Silyl-modified polyether sealants are used in construction applications such as sealing metal curtain walls
and masonry panels, as well as in DIY applications.
20
09
Silyl-modified polyether sealants are also used as elastomeric adhesives in applications such as
automotive body trim and body parts as well as hem flanges, ceramic wall tiles in train and subway
stations, flooring tiles, and large exterior panels. They can be blended with epoxy resins; the siliconmodified polyether contributes flexibility to the formulation, and the epoxy adds strength. The epoxyblended systems offer tough bonds that are resistant to displacement, impact and thermal stress; they also
provide excellent bonding between different substrates.
om
Silyl-modified polyethers have moved beyond the Japanese market, where they were first used, to new
markets.
Table 94
World Consumption of Silyl-Modified Polymer Sealants
2002
2005
or
t
1999
fr
Volumea
(thousands of
metric tons)
a.
4
na
7
na
11
na
na
3
na
9
na
11.6
neg
neg
2.9
0.12
16b
0.12
13.2
<0.1
0.4
36
1
140 c
1
403 e
neg
8
15
22
23.6
32.7
589
R
Total
Includes only the resin portion of the formulation. On the average, resin accounts
for about 30-33% of the total formulation.
b.
Includes both types: polyester type (11 thousand metric tons) and polyurethane type
(5 thousand metric tons).
c.
Value is for the polyether type and the polyurethane type.
d.
The 2008 volume includes silyl-modified polymers used in elastic adhesives, while
the 1999-2005 volumes exclude the elastic adhesives, which may be a few thousand
metric tons.
e.
Includes SMP elastic adhesives.
pl
e
m
Sa
2008
1
na
3
na
11
na
na
ep
North America
Western Europe
Rest of Europe
Japand
China
Other Asia and Rest of World
2008
Value
(millions of
dollars)
SOURCE:
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
178
FIGURE 34
Consumption of Silyl-Modified Polymer Sealants
by Major Region, Value Basis—2008
20
09
Rest of
World
North America 2%
6%
Western Europe
24%
fr
om
Japan
68%
or
t
In the North American and European markets, these products are used as sealants for automobile
windshields, window glazing for building construction and in marine applications, particularly as ship
deck caulks. Important properties include sandability, UV stability, no shrinkage and paintability.
ep
Consumption in North America started growing in the last few years even though there are few suppliers,
although consumption declined in 2008 with the declines in construction and vehicle production. In the
U.S. in 2008, consumption was split as follows: about 31% was used in construction and 69% in
transportation. Consumption growth from 2008 to 2013 is expected to average a rate of 6% per year.
pl
e
R
In Western Europe, SMP sealants have achieved limited penetration in specific geographic markets, such
as in the Scandinavian countries (which have very restrictive regulations on the use of isocyanates),
Switzerland and the Benelux region. This can be attributed in part to the conservative nature of the
construction industry, the most important application market, but also to the higher price of SMP sealants
with respect to polyurethanes, with which they compete in a number of applications. Between 2005 and
2008, SMP sealant consumption grew at an average annual rate of about 1.5%. SMP sealants can be used
in part as a replacement for urethanes and others: in the automotive industry, in particular in paint shop
applications, SMP sealants can be applied directly on the paint, prior to assembly.
m
In Western Europe practically only one-component modified silicon (MS) sealants are available on the
market. Consumption of two-component MS sealants is very limited and almost exclusively in the
automotive aftermarket, where a very short cure time is desired.
Sa
The main applications for MS sealants in Western Europe are in general industry (50-60%), which
includes automotive, and in construction (40-50%). Other industrial applications include marine, railway
rolling material, such as that used for high-speed trains in Germany, and tanks for liquid gas transport.
SMP use in the DIY market remains limited in Western Europe and varies by country. The products are
gaining market share in the Benelux region but account for only 5% of the size of the German SMP
market. Henkel and Soudal (Belgium) are the only producers for the DIY market.
•
SRI CONSULTING
DECEMBER 2009
179
In Japan, silyl-modified polyether and other polymers are used in various applications, not only in
construction, but also as elastic adhesives and other sealants. Table 95 shows the consumption breakdown
for silyl-modified polyether/polymer by application (including elastic adhesives) and by backbone
polymer.
20
09
Table 95
Japanese Consumption of Silyl-Modified Polyether/Polymer—2008
(percent by weighta)
By Type of Application
Sealant for Siding
One-Component
Two-Component
Elastic Adhesives
Otherb
om
29
42
28
1
100%
By Type of Backbone Polymer
Total
b.
82
17
1
0.1
100%
Estimated based on the polymer consumption for the applications.
ep
a.
or
t
Polyether
Acryl-Modified Polyether
Polyisobutylene
Polyurethane
fr
Total
DIY and automobile window sealant.
SRI Consulting.
R
SOURCE:
pl
e
Consumption of silyl-modified polyether-based polymers as sealants for construction grew from 32.8
thousand metric tons in 1995 to 40.7 thousand in 2005 (fully formulated basis), and slightly decreased to
38.7 thousand metric tons in 2008. Significant growth is not expected in sealant applications.
m
Silyl-modified polyether is increasingly used for elastic adhesives by itself or in blends with epoxy resin.
This elastic adhesive has excellent durability, and is increasingly used to bind tiles onto outside walls.
During the Kobe earthquake in 1995, tiles bonded by this adhesive did not drop, while tiles bonded by
mortar failed. These elastic adhesives have a good reputation in earthquake-prone Japan.
Sa
Silyl-modified polymer sealant is a new product in China. Little silyl-modified polyurethane sealant was
produced in 2008. SMP sealant was consumed mainly for automobiles.
Market participants
Global
Global silyl-modified sealant suppliers are listed in the following table:
•
SRI CONSULTING
DECEMBER 2009
180
Table 96
Major Global Suppliers of Silyl-Modified Sealants as of October 2009
Bostik-MS
Construction,
general industrial
General sealing,
construction, outdoors
Flextec®
Pattex®
Sista®
Construction,
general industrial
General sealing,
outdoors, sealing
windows
Kaneka™
MS Polymer™
Kaneka Epion™
Kaneka Silyl™
Construction,
general industrial
Raw materials for
formulators (Kaneka
Silyl™) as well as
general sealing,
construction and
outdoor applications
sealing between glass
and metals/stone
share in most world regions.
Kaneka has vertically
integrated production in
Belgium, Japan and the US
(opened a new plant in
Houston, Texas in 2009).
or
t
SOURCE:
Remarks
20
09
Kaneka Corporation
Osaka, Japan
Applications
om
Henkel Corporation
Segments
fr
Bostik
Trade Name
North America
R
ep
The major supplier of silyl-modified polyethers in North America is Bostik, followed by BASF. These
producers purchase the polyethers from Kaneka’s plant in Belgium, which began operating in late 1997.
Kaneka holds the original patent for the polymers.
pl
e
Supply to Central and South America is primarily from the global companies such as Bostik, BASF and
Kaneka. Current consumption is negligible.
m
Western Europe
Sa
Western European formulators of silyl-modified sealants are listed in the following table:
•
SRI CONSULTING
DECEMBER 2009
181
Table 97
Major Western European Formulators of Silyl-Modified Polyether Sealants—2009
Company
Trade Name
Segments
Koerapop
Construction
Merz & Benteli
Switzerland
Gomastit, Merbenit
Building and construction
industry
Quilosa
Spain
Syntex POL
Sealing joints in buildings and
construction industry, aerospace
and automotive industry
SABA Dinxperlo BV
Netherlands
Sabaplast
Automotive
Expansion joints, general industry
fr
Soudaseal, Fix-All,
Fix-All High Tech
SRI Consulting.
or
t
SOURCE:
om
Soudal NV
Belgium
20
09
Kömmerling Chemische Fabrik
Germany
R
ep
Kaneka Corporation is the only manufacturer of the base polymer, MS Polymer™. In 2004, Kaneka
increased its polymer capacity to 10 thousand metric tons in Belgium for the production of silyl-modified
polyethers. Kaneka’s current MS Polymer™ capacity in Belgium is 15 thousand metric tons. The plant,
which became operational in 1997, supplies Europe and North America. Kaneka is following a strategy of
maximizing the technical advantages of the polymers to establish the high-end market. In 2008, Western
European consumption of neat silyl-modified resin was estimated at about 16 thousand metric tons with
about 35 thousand metric tons of formulated products.
m
pl
e
Other suppliers of silyl-modified polymers to Western European sealant manufacturers are Bayer
MaterialScience AG of Germany and Hanse Chemie of Germany (Polymer ST 50). However, the silylmodified polymers offered by these two companies are based on modified PU polymers treated with
silanes, and thus retain the urethane linkages in the base polymer. Bayer gained this business, which uses
long-chain polyols, with its purchase of Lyondell’s polyol business in 1999. The urethane linkages in
these systems provide higher cohesion strength and better low-temperature viscosity, but they have lower
UV stability than SMP products.
Sa
Formulating companies such as Henkel, Bostik, Merz & Benteli (Switzerland) and Soudal (Belgium)
offer SMP sealants on the European market. Soudal offers mainly one-component SMP sealants for
expansion joints and general industry bonding (Soudaseal™), for regular adhesive/sealant applications
(Fix-All™), and for instant, heavy-use adhesive/sealant applications (Fix-All High Tech™).
•
SRI CONSULTING
DECEMBER 2009
182
Japan/Asia
om
20
09
The largest producer of silyl-modified polymers in Japan is Kaneka, which has a production capacity for
SMP of about 15 thousand metric tons at its Takasago plant in Japan. In addition to Kaneka, Asahi Glass
has capacity for SMP but of a smaller volume. Kaneka has been producing these materials since 1979,
and also markets the resins (known as MS Polymer) in Europe and North America; Kaneka Belgium has a
production capacity of 15 thousand metric tons, and in 2009, built a new plant in the United States with
10 thousand metric tons of capacity. These products were introduced to the Western European market in
1986 by Simson, which is now owned by Bostik. Kaneka’s products include MS Polymer (polyetherbased) for sealant applications, Silyl SAT (polyether-based) for elastic adhesives, Silyl MA (acrylicmodified polyether) for adhesive and sealant applications, and Epion (silyl-modified polyisobutylene).
Asahi Glass’s product is ExceStar (polyether-based), which has a high-molecular-weight polyether polyol
as its polymer backbone. Konishi developed silyl-modified polyurethane (SU Polymer) in 2001. Konishi
has marketed to the DIY consumer adhesive markets and to interior architectural applications; sales of SU
Polymer grew from $5 million in 2005 to $8 million in 2008.
fr
The table below shows major suppliers in Asia. In Japan, the one-component-type silyl-modified
polyether sealant is a moisture-cure system, and is used for typical housing construction. The twocomponent type is a catalyst-cure system, and is used for larger homes and buildings. Cemedine and
Yokohama Rubber have large market shares in the one- and two-component markets, respectively.
or
t
Table 98
Major Japanese and Other Asian Suppliers of Silyl-Modified Polymer Sealants—2009
Company
Trade Name
Japan
Comens
R
Beijing Comens YanShan
Tech. Co., Ltd.
ep
China
Product Type
Remarks
SMP sealant
One-component.
Petam
SMP sealant
One- and two-component.
Cemedine Co., Ltd.
Super X
SMP elastic adhesive
Concriment V
Tile Ace
POS Seal
SMP sealant
PM165-200
SMP-epoxy elastic adhesive
One-component, DIY and
electrical applications.
One-component, concrete
bonding.
One-component, tile bonding.
One- and two-component, siding
board sealant.
One- and two-component,
construction and electric use.
BelaAce
Duaribon
SMP sealant
SMP sealant
Sa
m
pl
e
Bridgestone Corporation
Henkel Japan Ltd.
•
SRI CONSULTING
Two-component.
One-component.
DECEMBER 2009
183
Major Japanese and Other Asian Suppliers of Silyl-Modified Polymer Sealants—2009
Company
Trade Name
Product Type
Remarks
SMP sealant
Bond MS Seal
SMP sealant
Bond MPX
Bond Eflex
Bond Exceal
Bond SU Polymer
SMP-epoxy elastic adhesive
Silyl-modified polyisobutylene
Silyl-modified polyurethane
adhesive
Sika Japan Ltd.
Sikaflex
SMP sealant
Sunrise MSI Corp.
SR Seal
SMP sealant
One- and two-component; a
subsidiary of Konishi.
Penguin Seal 2500-2570
Penguin Seal 7000
SMP sealant
Silyl-modified polyisobutylene
Two component, glass sealing.
Hamatite Super
SMP sealant
SRI Consulting.
fr
One- and two-component;
Sekaicho was acquired by Sika
Japan.
ep
SOURCE:
One-component, siding board
sealant.
Two-component, panel/tile
sealant.
One-component, board/panel
bonding.
One-component, tile bonding.
Two-component, glass sealing.
One-component, DIY use.
om
Bond MS Caulk
or
t
Konishi Co., Ltd.
20
09
Japan (continued)
pl
e
R
Major producers of silyl-modified polymers (SMP) used in the formulation of SMP adhesives and
sealants are listed in the following table:
m
Asahi Glass Co., Ltd.
Kamisu, Ibaragi Prefecture,
Japan
Sa
Major Producers of Silyl-Modified Polymers
Annual Capacity
as of September 2009
(thousands of
metric tons)
Company and
Plant Location
3
Kaneka Corporation
Westerlo-Oevel, Belgium
Takasago, Hyogo Prefecture,
Japan
Houston, Texas, United States
SOURCE:
Table 99
40
Type of Backbone
Polymer
Remarks
Polyether polyol (high molecular Mainly Japanese market.
weight)
Polyether polyol
Polyether polyol/acrylic blend
Polyisobutylene
SRI Consulting.
•
SRI CONSULTING
U.S. plant started operation in
April 2009. Applications include
sealants for construction,
transportation, and general uses,
and for elastic adhesives.
DECEMBER 2009
184
Kaneka Corporation is the major manufacturer of the base polymer, MS Polymer™. Kaneka built its
polymer capacity with a 10 thousand metric ton plant in Texas in 2009 to expand the North American
market, which used to be served from its Belgian plant. The Belgian plant serves the markets Europe and
other regions.
om
20
09
Other suppliers of silyl-modified polymers to Western European sealant manufacturers are Bayer
MaterialScience AG of Germany and Hanse Chemie of Germany (Polymer ST 50). However, the silylmodified polymers offered by these two companies are based on modified PU polymers treated with
silanes, and thus retain the urethane linkages in the base polymer. Bayer gained this business, which uses
long-chain polyols, with its purchase of Lyondell’s polyol business in 1999. The urethane linkages in
these systems provide higher cohesion strength and better low-temperature viscosity, but they have lower
UV stability than SMP products.
Prices
fr
Prices for SMP products have a wide range because of the large variety of uses and formulations. In the
United States, prices were about $35-60 per gallon when sold in 55-gallon drums and $6-7 per cartridge
for single-use applications in 2006. In 2008 prices averaged about $12.25 per kilogram.
or
t
In Western Europe, SMP products are more expensive than PU sealants (from 20% more to twice the
price of polyurethane sealants); however, they are expected to become competitive in a short time as
larger quantities are consumed on the marketplace. The price of neat SMP resin in 2009 was about
$12.70, whereas prices for the formulations varied depending on the application and container size,
between $26 and $120 per kilogram.
ep
The price of two-component SMP in the Japanese construction market was approximately ¥400-600 ($46) per liter, and the one-component type was ¥700-900 ($7-9) per liter; as the specific gravity of SMP
sealant is usually 1.1-1.5, the price becomes higher on a per-kilogram basis.
pl
e
R
The price of one-component SMP produced by local producers was around 54 renminbi per kilogram in
2008 in China, equal to $7.80 per kilogram.
m
In North America, consumption may be sluggish or decline depending on product availability and the
marketing efforts of suppliers. Consumption volumes declined significantly in 2008 versus flat to small
declines in 2006 and 2007 with the collapse of U.S. construction activity.
Sa
Industry experts estimate that in Western Europe, SMP polyether sealants will gradually take market
share from other sealants, mainly polyurethane sealants. Soudal already has a mixed-base SMP product
on the market (Four-All-Paint™) competing with polyurethane sealants in the wood industry.
Use of elastic adhesives (either silyl-modified polyether or its epoxy-blended system) is growing in the
Japanese adhesives market. In sealant applications, the products require improved weatherability, and
acrylic-modified SMP consumption is expected to grow. The markets for SMP may expand not only in
the construction sealant sector but also in the automotive and other industrial sealant/adhesive sectors. In
Japan, about 10% of SMP consumption was based on acrylic-modified SMP in 2002; the percentage
increased to 17% in 2008.
•
SRI CONSULTING
DECEMBER 2009
185
20
09
In Japan, SMP sealants for construction use are priced by the liter, and the gravity is around 1.1-1.4. In
order to reduce raw material cost on a per-liter basis, formulators try to reduce the gravity more toward
1.0 as much as possible, and recently, low-gravity fillers have been developed, and have replaced heavy
calcium carbonate–type fillers in lower-gravity-type SMP sealants.
Polyurethane Sealants
General description
fr
om
Polyurethanes (PUs) are produced by the reaction of a diisocyanate and a polyol. Although many
diisocyanates and polyols are available, the polyols most commonly used in sealants are polypropylene
glycols, which offer superior hydrolysis resistance, viscosity, low-temperature flexibility, and cost over
competitive polyols. As for diisocyanates, the aromatic types (chiefly TDI and MDI) give more rapid
cures and higher tensile strengths but inferior light stability compared with the aliphatic diisocyanates
(mainly hexamethylene diisocyanate [HDI]). Most urethane sealants are based on TDI prepolymers and
polyether polyols, which provide the physical properties necessary for desired attributes like low
shrinkage, chemical resistance, low viscosity, and good shelf stability. Sealants made from MDI
prepolymers usually display lower performance qualities. However, there is an accelerating trend to
substitute TDI prepolymers with special MDI prepolymers (e.g., isomers containing a high content of o,pMDI) that offer lower volatility and fewer handling concerns.
ep
or
t
Polyurethane sealants can be one- and two-component systems. One-component systems consist of a
prepolymer that is made by reacting a polyol with an excess of diisocyanate. On application, the
isocyanate groups react with moisture from the air to yield cured polyureas. The carbon dioxide byproduct may cause foaming and blistering if it evolves too rapidly from a thick section. In a twocomponent formulation, the diisocyanate and additives are packaged separately from the polyol(s) and
other additives. Immediately before application, the two parts are mixed; for optimal properties, the two
components must be kept dry, and the stoichiometric ratios must be precisely controlled.
R
Polyurethane sealants have the following advantages:
Competitive price for the level of performance
●
Versatility; a wide range of properties is available
●
Toughness and abrasion resistance
●
Good elasticity and structural strength
m
pl
e
●
Good adhesion properties to a variety of substrates, although promoters may sometimes be
required
Sa
●
●
Hydrolysis resistance
●
Excellent chemical resistance
●
Good cold-temperature properties
●
Fast cure for multicomponent types
●
Relatively good paintability
•
SRI CONSULTING
DECEMBER 2009
186
Disadvantages of polyurethane sealants include
Toxicity concerns about the presence of compounds containing unreacted isocyanate groups
(prior to curing)
●
Limited temperature resistance; polyurethane sealants are not recommended for continuous
temperatures above 180°C
●
Relative sensitivity to UV radiation; UV exposure will cause the sealant to age, crack and chalk
●
Inconvenience of two-part systems
●
Relatively slow cure for one-component sealants
om
20
09
●
fr
Polyurethanes offer better paintability, adhesion, and abrasion resistance than silicone sealants. However,
they cannot match the long-term performance of silicones in high-temperature environments or when
exposed to ultraviolet radiation.
or
t
Polyurethanes provide high performance sealants noted for their elasticity and excellent abrasion
resistance. They are commonly used in construction, automotive, parking deck and sidewalk sealing, and
marine applications.
R
ep
One-component systems are used primarily for sealing roofs, for electrical cable, and in plumbing. Twocomponent polyurethanes are used mainly for outdoor applications where property development must be
fast. They are generally used for construction (e.g., sealing curtain walls and in expansion joints). Both
one- and two-component systems can be used for underwater applications, using special primers.
m
pl
e
In joint sealing, polyurethanes are used to seal high-rise curtain walling and prefab construction. They are
favored for use when sealing aluminum panels, which have high thermal expansion and require the use of
high-resilience sealants. In commercial construction, polyurethanes are used as foam sealants to seal floor
and ceiling holes through which electrical and telephone lines pass. The foam exhibits good insulating
properties to limit heat loss. Polyurethane sealants have gained market share at the expense of polysulfide
sealants in construction glazing and have gained a significant share (almost 20%) of this segment in North
America. Urethanes are favored for their environmentally favorable formulations (100% solids), low
shrinkage, and superior adhesion to glass.
Sa
An important market for polyurethane adhesives and sealants is the construction of foam sandwich
elements bonded to external sheets of glass fiber–reinforced plastic, aluminum or steel with twocomponent polyurethane adhesive. Various elements of large trucks are assembled with the aid of a onecomponent polyurethane sealant.
Worldwide, more than 90% of automobiles are produced with bonded windshields and rear windows
using one-component urethane sealants. In North America, Europe and Japan, almost all new cars have
the windshield and rear windows directly bonded. The replacement market is large; for example, in
Europe about 3 million windshields have to be replaced each year.
•
SRI CONSULTING
DECEMBER 2009
187
20
09
The total annual market for urethane sealants in direct glazing in Western Europe is on the order of about
10 thousand metric tons for new and about 2 thousand metric tons for replacement windshields. For the
replacement market, one-component polyurethane sealants in small cartridges are generally used without
paint primer. Between glass and painted body surfaces, moisture-cured polyurethane sealants bind glass,
rubber supports, and painted body surfaces directly. Different types of solventborne primers are typically
applied between sealant and glass, and between sealant and painted body surface. Generally, there are two
major types of polyurethane sealant in this application—a low-viscosity type with ambient temperature
application, and a higher-viscosity type with slightly warm temperature (40°C) application, which
apparently has quick bonding performance due to high viscosity.
om
There is growing use of primerless sealants for glass surfaces. There is also a growing trend in Western
Europe to bond without a primer on the paint of the car body. Implementation of this technology depends
on the automobile company, and specifically on the delay between application of the glazing and
installation in the automobile, and also on whether the company has high confidence in the paint topcoat
quality and reproducibility. Apparently the paint color also plays a role—the high titanium dioxide
content of white paints requires the use of a primer. Primerless technology is now used by European
automobile producers Renault and Volvo, among others.
fr
Modified polyurethane sealants are being used increasingly by the automotive industry to replace PVC
plastisols.
or
t
Regional markets for polyurethane sealants are summarized in Table 100. Consumption data include
polyurethane foams for sealing applications. Western European use of polyurethane sealants for nonfoam
applications was about 8 thousand metric tons in 2008.
Table 100
Valueb
(millions of
dollars)
Volumea
1999
2002
pl
e
R
ep
World Consumption of Polyurethane Sealants
24
na
37
na
13
na
na
na
26
na
38
na
13
na
na
na
28
2
39
5
12.8
4.3
2.3
5
21
2
40.5
6
12.9
6.0
3
5.5
141
13
356
50
260
82
69
37
Total
74
77
98.4
96.9
1,008
Sa
m
North America
Western Europe
Rest of Europe
Japan
China
Rest of Asia
Rest of the World
2005
2008
2008
a.
Includes only the binder (polyol plus isocyanate) portion of the formulation. The binder
usually accounts for 25-33% of the total.
b.
Value fully formulated.
SOURCE:
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
188
FIGURE 35
World Consumption of Polyurethane Sealants, Value Basis—2008
Central and
South America Rest of the World
1.3%
3.7%
20
09
Rest of Europe
5%
Rest of Asia
6.8%
Western Europe
35.3%
China
8.1%
om
North America
14%
fr
Japan
25.8%
or
t
The following table shows polyurethane sealant consumption in North America:
Table 101
ep
North American Consumption of
Polyurethane Sealants
2005
Total
SOURCE:
14
11
1
1
1
9
9
1
1
1
28
21
SRI Consulting.
m
pl
e
R
Construction
Transportation
General Industrial
Marine
Consumer (DIY)
2008
Sa
In North America, polyurethane sealants are most frequently used in construction, followed by
transportation applications. Construction applications utilize the flexibility and elongation characteristics
of polyurethanes to seal concrete joints in commercial buildings, highways and bridges, and homes.
Polyurethane sealants maintain a strong seal against moisture and air leakage despite the different
coefficients of expansion for dissimilar building materials. In vehicle assembly, these products are used to
install all fixed glass to the metal body. Polyurethane sealants are also used on seams between metal
surfaces, typically in doors and other body sections of vehicles such as cars, trucks, buses and recreation
vehicles. Polyurethane sealants are also used for repairs during the replacement of vehicle glass. General
industrial applications include sealing plumbing structures such as tanks and pipelines, electrical/
electronics, and biomedical instruments. In marine applications polyurethanes are increasingly used
below the water line, displacing the use of polysulfides, the traditional sealant for boat building.
•
SRI CONSULTING
DECEMBER 2009
189
Polyurethane sealants are the preferred sealant in boat building due to their excellent adhesion to glass,
wood, metal and fiberglass, the principal materials of marine pleasure craft. They are also used in boat
maintenance. Consumer uses are very general from home maintenance to hobbies and crafts.
om
20
09
In the United States, construction was the largest and fastest growing segment through 2005, but
consumption declined in each year from 2006 though 2008 as the industry suffered from an over-built
market (inventory surplus) and price “bubble,” particularly in residential housing. This situation was
compounded by a shortage of available financing beginning in 2008, as the U.S. financial crisis widened
and bank failures ensued. Future prospects for the U.S. construction segment remained bleak through
2009 and will perhaps into 2010. Overall consumption growth in Canada is expected to remain positive
and accelerate in 2010 at an average annual rate of about 2.5%. Canada’s construction segment is
expected to continue to grow, reflecting a healthier economy and more conservative financial system that
did not finance the real estate price bubble experienced in the U.S. Mexico is expected to grow at an
overall average rate of about 2% per year through 2013; however, from 2009 to 2010 growth may be flat
or negative, reflecting slow economic activity in part due to slack demand from its largest trading partner,
the U.S. Overall North American growth is expected to be 2.0% through 2013 with growth suppressed by
the slowly recovering U.S. construction segment.
fr
Polyurethane sealant consumption in Western Europe in shown below.
Table 102
or
t
Polyurethane Sealants—2008
(percent)
By Volume
R
ep
Transportation
Construction
Consumer
Assembly/Other
Total
38
24
2
36
46
21
2
31
100%
100%
SRI Consulting.
pl
e
SOURCE:
By Value
Sa
m
In Western Europe, the sealants markets include not only DIY applications in the consumer applications
category, but also all sealants that are not sold directly but through trading companies and large DIY retail
chain stores. In addition, Western Europe has a large number of small and medium-sized enterprises
active in the building industry that buy sealants from specialized DIY chain stores; this consumption is
listed under the consumer category.
The transportation and construction categories include direct sales to OEMs in the transportation industry
and to large building companies in the construction industry.
In Western Europe, demand for polyurethane sealants varies strongly from country to country. The United
Kingdom and Ireland consume very little polyurethane sealant, while Germany, Italy and France are
strong consumers. The Benelux countries are also strong consumers, but modified-silicone polymer
sealants have over the years increasingly replaced polyurethane sealants. In Germany, one of the largest
markets in Europe, polyurethane consumption has experienced large fluctuations over the past ten years.
•
SRI CONSULTING
DECEMBER 2009
190
20
09
It is estimated that in the next five years, consumption of polyurethane sealants will experience very
moderate growth, mainly because of increased activity in the construction business. Polyurethane will
continue to be replaced by competing materials such as modified-silicone polymers, new hybrid systems
and neutral (alkoxy) silicones. Also, in recent years, the better performance/price ratio of polysulfides
(particularly regarding UV-degradation resistance and gas permeation) has limited the market penetration
of urethane sealants. Some growth is expected in automotive and commercial vehicle applications as the
industry moves from lower-priced plastisols to urethanes. A factor that may dampen this growth,
however, is the strong push by automakers to lower costs, so plastisols will remain viable for a while.
Overall, consumption growth for polyurethane sealants in Western Europe in 2008-2013 is not expected
to exceed an average annual rate of 1%.
om
Japanese and Chinese consumption figures are shown below, including a breakdown by one- or twocomponent system.
Table 103
Japan
China
24
43
27
6
26
neg
69
5
or
t
Construction
One Package
Two Package
Automotive
Other
fr
Asian Consumption of Polyurethane
Sealants—2008
(percent by volume)
100%
100%
ep
Total
SRI Consulting.
R
SOURCE:
m
pl
e
In Japan, the polyurethane sealants market increased steadily until 1996 as Japanese builders began to use
siding wall construction, which required polyurethane sealants, for new construction and renovation.
Much of this volume was lost in the next few years as the building industry went into recession. Also,
silyl-modified polyether sealants began to replace polyurethane in some applications. Producers such as
Yokohama Rubber, Sunstar Engineering, Auto Chemical, Sekaicho (now merged into Sika Japan), and
Sharp Chemical have developed new types of urethane sealants that do not contain any plasticizer; these
products are referred to as “nonbleeding” urethane sealants. These sealants are expected to show good
growth in the next few years, at the expense of conventional polyurethane sealants.
Sa
The major automobile application for polyurethane sealants is as a direct glazing window sealant. In the
past, low-viscosity-type direct glazing adhesives were used; however, they were replaced largely by the
high-viscosity type and partly by the hot-application type, both of which have the advantage of high
initial apparent strength and quick-seal properties.
•
SRI CONSULTING
DECEMBER 2009
191
Market participants
Global
Table 104
20
09
The following table lists major global suppliers of polyurethane adhesives:
Major Global Suppliers of Polyurethane Adhesives as of October 2009
Trade Name
Segments
Applications
Chem-Calk®
Construction
General sealing for
siding, windows and
other gaps
Dow
Midland, Michigan
Betaseal™
Motor vehicle
assembly
Window glass sealing
EMS-EFTEC
Thurgau, Switzerland
EFTEC® EFSeal
Motor vehicle
assembly
Auto repair
Henkel
Sista
Sika
Baar, Switzerland
Sikaflex®
fr
or
t
Butt joint sealing
General sealing for
siding, windows and
other gaps
Automotive
Industrial
Marine
Glass to steel bonding,
broad range of
construction adhesives
3M™ Marine
Adhesive/Sealant
Marine
Broad uses for marine
environment
R
ep
Construction
Industrial
Consumer DIY
Can also be considered
adhesive application.
Joint venture between EMSChemie and H.B. Fuller’s
automotive division.
share in most world regions,
Can also be considered an
adhesive application.
pl
e
3M
United States
om
Bostik
Remarks
SOURCE:
m
North America
Sa
There are many formulators of polyurethane sealants in North America, but the global suppliers listed
above have the majority of the North American market. Another major formulator in North America is
shown in Table 105.
•
SRI CONSULTING
DECEMBER 2009
192
Table 105
Major North American Formulators of Polyurethane Sealants—2009
Tremco®
Vulkem®
RPM (Tremco)
SOURCE:
Markets
Construction
Construction
20
09
Trade
Name
Company
SRI Consulting.
Western Europe
om
Table 106 shows the major suppliers of polyurethane sealants in Western Europe.
Table 106
Western European Suppliers of Polyurethane Sealants—2009
EMFI S.A.
France
or
t
ISOLEMFI
Germany
ep
PCI Augsburg GmbH
Germany
R
Soudal NV
Belgium
Markets
Construction
Körapure
ADCO
Construction
Automotive
PCI-Elretanl
PCI-Escotan TF
Construction
Soudaflex
Construction
Automotive
SRI Consulting.
pl
e
SOURCE:
Trade
Name
fr
Company
m
Global companies Sika and Soudal dominate the Western European market for polyurethane sealants.
Sika is particularly strong in its home market, Switzerland, and in France and Italy, while Soudal’s
presence is stronger in the Benelux and Scandinavian countries.
Sa
The most important supplier of urethane polymer raw materials in Western Europe is Bayer
MaterialScience.
Japan/Asia
The table below lists the major polyurethane sealant suppliers in Japan and Other Asia. In Japan, onecomponent-type polyurethane sealants are used for individual houses and two-component types are used
for condominiums and other buildings. In Other Asia, the one-component type is generally used.
•
SRI CONSULTING
DECEMBER 2009
193
Table 107
Major Japanese and Other Asian Suppliers of Polyurethane Sealants—2009
Company
Trade Name
Markets
Consumer
Beijing, China
Automotive
Hangzhou Zhijiang Silicone Co., Ltd.
Hangzhou, Zhejiang
Construction
Shandong Beifang Xiandai Chemical
Industry Co., Ltd.
na
Construction
om
Antas Chemical Co., Ltd.
Japan
Bridgestone Corporation
na
Petam
Cemedine Co., Ltd.
na
Cemedine
Konishi Co., Ltd.
na
R
Sika Japan Ltd.
na
Construction (one and two component)
Construction (one- and two-component)
Bond Seal
Construction (one- and two-component)
Belace
Duaribon
Construction (two-component)
Construction (one-component)
Sikaflex
Construction (one- and two-component), automotive;
Sekaicho was merged into Sika Japan
Penguin Seal
Construction (one- and two-component), automotive
Hamatite
Construction (one- and two-component), automotive
ep
Henkel Japan Ltd.
(formerly Nippon NSC’s products)
na
Construction (one component)
fr
Auton Sealer
or
t
na
pl
e
Japan, Thailand
Japan, Thailand, China
20
09
China
Other
m
Anabond Essex India (P) Ltd.
India
Automotive
EFTEC
Changchun EFTEC (China)
EFTEC Shroff (India)
EFTEC (Thailand)
Sa
Automotive
Henkel Technologies Automotive Branch
Republic of Korea
KCC Corporation
China
Republic of Korea
SOURCE:
Automobile
Construction
Construction (two-component), automotive
Koreseal
SRI Consulting.
•
SRI CONSULTING
DECEMBER 2009
194
20
09
The largest producers of one-component direct glazing automobile urethane window sealants in Japan are
Yokohama Rubber and Sunstar Engineering, which are also strong in two-component sealants for the
siding/construction market. Sika also imports direct glazing sealants for the automobile aftermarket
(repair) by selling smaller cartridges. Both Yokohama Rubber and Sunstar Engineering have plants in the
United States, Thailand, and/or China to supply window sealants, mainly to Japanese automobile
producers. In one-component construction applications, Auto Chemical Industry Co., Ltd. (an affiliate of
Nippon Polyurethane) has the largest market share, accounting for more than 50%. Konishi and Nippon
NSC have developed urethane acrylate sealants as fast-curing nonbleeding sealants, but their market share
is still very small.
Prices
om
The U.S. wholesale price for polyurethane sealants averaged about $6.70 per kilogram in 2008.
fr
The average Western European price for polyurethane sealants was 5.80 euros ($8.60) per kilogram in
2009. Prices for polyurethane sealants have been steadily decreasing in Western Europe, because of
increasing price competition in the market. Polyols and MDI constitute as much as 70% of the raw
material costs in a polyurethane adhesive. Polyol prices increased in 2008 as a result of higher oil prices
and energy costs.
or
t
In Japan, prices for one-component urethanes are around ¥400-600 ($4.00-5.00) per liter, and
approximately ¥300-500 ($3.00-5.00) per liter for two-component urethanes; as the specific gravity of
polyurethane sealant is usually 1.1-1.4, the price becomes higher per kilogram—approximately ¥400-500
($4.00-5.00) per kilogram for direct glazing automotive sealants.
ep
In China, prices for polyurethane sealants ranged from 20 to 30 renminbi per kilogram in 2008, equal to
$2.90-4.30 per kilogram.
R
m
pl
e
Producers have been experimenting with polyurethane sealants that cure by exposure to oxygen rather
than moisture. These systems have the advantage of achieving a more complete cure, especially in the
inner portion of the sealant (the part of the sealant layer that is not in direct contact with a mating
surface). Development has not yet, however, led to marketable products. In addition, producers continue
to develop systems that eliminate the use of organic solvents. Sealant formulations are evolving toward
higher than 90% solids and closer to 100%. In consumer sealant applications, materials are under
development that will cure at temperatures as low as 5°C and at low air moisture content. There will also
be a trend away from free TDI and a growing use of acrylic polyols in some applications.
Sa
Suppliers to the automotive industry are developing materials that can cure at lower temperatures (about
100-160°C) to be used at the body shop stage of car manufacturing. This development has been triggered
by the trend in the automotive industry to lower the operating temperature of the curing ovens. These
materials can find applications in car roof sealing, since they have higher flexibility and higher resistance
than classic materials such as PVC.
In Japan, as with SMP sealants, polyurethane sealants for construction uses are priced per liter, and the
gravity is around 1.1-1.4. In order to reduce the raw material cost on a per-liter basis, formulators try to
reduce the gravity as much toward 1.0 as possible, and recently, low-gravity fillers have been used
increasingly replacing heavy calcium carbonate–type fillers.
•
SRI CONSULTING
DECEMBER 2009
195
20
09
Silane-end-capped polyurethane polymers are occupying an increasing and specialized area in sealant
applications. These polymers are prepared by reacting isocyanate polyurethane prepolymers with
secondary aminosilanes. Silanes function as adhesion promoters for inorganic substrates and these
sealants have very good adhesion to glass, aluminum and primed concrete (see the Silyl-Modified
Polyether and Other Polymer Sealants [Modified Silicone] section).
Polysulfide Sealants
General description
fr
om
High-performance polysulfide sealants have been used in applications requiring a flexible, adhering, and
chemically resistant sealant. Most polysulfide sealants are based on liquid polymers of bis(ethylene
oxy)methane-containing disulfide linkages. The terminal groups are mercaptans that provide reactive sites
for curing, which is typically accomplished by oxidizing the polymer’s thiol terminals to disulfide bonds.
Additionally, polymers with polyoxypropylene urethane or polythioether backbones and mercaptan
terminals are used extensively as insulating glass sealants. Commonly used curing agents include
manganese dioxide, cumene hydroperoxide and calcium peroxide.
or
t
Plasticizers, reinforcing agents, thixotropes and extending fillers are commonly used in compounding
sealant formulations. Compounded products can vary significantly in processing and performance. The
following table lists five types of polysulfide sealant formulations that are used in different end-use
applications:
Table 108
ep
Polysulfide Sealant Formulations for Various Applications
(percent)
One-Part
Building
Insulating
Glass
Aircraft
Casting
Compound
20
50
25
2
3
35
40
20
2
3
30
50
15
2
3
65
25
5
2
3
35
35
27
-3
R
pl
e
Polysulfide Polymer
Fillers
Plasticizers
Adhesion Additives
Curing Agents
E. M. Petrie, Handbook of Adhesives and Sealants, McGraw-Hill, 2000.
m
SOURCE:
Sealant Application
Sa
Polysulfide sealants are available as one- or two-component formulations. One-component formulations
cure slowly but do not have to be mixed on site. Two-component polysulfides can be formulated to allow
cure rates over a broad range from one hour to thirteen or more weeks. The vast majority of polysulfide
sealants are the two-component type. In Japan, one-component systems are consumed only in small
volumes. A major advantage of polysulfide sealants is their excellent chemical resistance, which leads to
wide use in aircraft fuel-tank sealing. Other key properties include good resistance to alkalis and
negligible shrinkage. The sealants also maintain good adhesion, even after UV and water exposure, and
also impart excellent waterproofing properties.
•
SRI CONSULTING
DECEMBER 2009
196
Polysulfides were the dominant high performance sealant in the 1960s and 1970s, but have lost market
share in many applications because of competition from silicones and urethanes. Currently, the largest
applications for polysulfides are for sealing the following:
Double-pane insulating glass windows
●
Joints of curtain wall, concrete, and masonry buildings
●
Integral fuel tanks for commercial and military aircraft
●
Concrete joints in fuel spill secondary containment areas in airports and tank farms
om
20
09
●
Regional polysulfide sealant consumption is shown in Table 109.
Table 109
fr
World Consumption of Polysulfide Sealants
or
t
Volumea
1999
2002
9
na
13
na
3
na
na
na
7
na
14.5
na
3
na
na
na
4
1.3
15.4
na
3.5
2.2
0.4
1.0
3.4
1.3
14.5
0.6
3.1
5.6
0.4
1.0
32
12
132
5.4
96b
43
8
8
25
24.5
27.8
29.9
336.4
R
ep
North America
Western Europe
Rest of Europe
Japan
China
Other Asia
Rest of the World
Total
2005
2008
2008
Data include only the resin portion of the formulation. The polysulfide resin
portion ranges from 15% to 60% of the total, and probably averages about
40%.
b.
Polysulfide polymer is used as both adhesives and sealants. An additional $10
million of polysulfide polymers were used in adhesive applications.
pl
e
a.
SOURCE:
SRI Consulting.
Sa
m
Value
(millions of
dollars)
•
SRI CONSULTING
DECEMBER 2009
197
FIGURE 36
World Consumption of Polysulfide Sealants, Value Basis—2008
Central and
South America
3.6%
Rest of
Europe
1.6%
Rest of the World
2.4%
20
09
Other Asia
2.4%
North America
9.5%
Western Europe
39.2%
om
China
12.8%
fr
Japan
28.5%
or
t
Polysulfide consumption is highest on a per capita basis in Japan, followed by Western Europe.
Historically, consumption has been limited by the cycles of industrial/commercial building construction
as well as more efficient on-site use of sealant (i.e., less waste) because of improved product packaging
and application practices. However, overall the polysulfide sealant market share is eroding, particularly in
the construction and marine segments as polyurethane and silicone sealants increase their market shares.
ep
The following table shows polysulfide sealant consumption in North America:
Table 110
R
North American Consumption of Polysulfide Sealants
pl
e
Transportation/Aerospace
Construction (window glazing)
General Industrial/Assembly
SOURCE:
2008
2.0
1.3
0.7
1.8
0.9
0.7
4.0
3.4
SRI Consulting.
Sa
m
Total
2005
Window glazing (double pane, insulated glass) accounts for most of the use in the construction segment
in North America. Worldwide growth is expected to be driven by cold climate countries, particularly in
Western Europe where energy conservation regulations are more stringent. Other regions and countries
such as Eastern Europe, Russia and East Asia also show promise. Marine sealing applications could show
moderate growth outside of North America.
In North America, transportation applications, including aerospace, consumed the largest amount of
polysulfide sealants in 2005 and 2008. Construction was second largest, and other applications, including
assembly, used the remaining quantity. Consumption is expected to decline further from 2008 levels into
•
SRI CONSULTING
DECEMBER 2009
198
2009, but from 2008 through 2013, average annual consumption growth is expected to average between
2.0% and 3.0% per year, with energy saving retrofits stimulating demand for double pane (double glazed)
windows, in turn stimulating polysulfide sealants consumption.
20
09
Polysulfides have almost no competition in the aerospace market, where they are specified in a number of
military applications, such as for the sealing of integral fuel tanks, pressurized cabins, and cargo and
galley areas, and for aerodynamic smoothing and corrosion control. The sealant must be able to endure
the demands of flexure, torsion, vibration, temperature extremes and chemicals. Aerospace formulations
contain a considerably higher percentage of polymer per unit weight of product than other formulations.
om
Polysulfides can be used in overseas shipping containers and other goods exposed to the marine
environment (because they are resistant to the corrosive effects of seawater), and in truck trailers and
miscellaneous industrial uses.
fr
In Western Europe, use of polysulfides in the insulating glass market varies from country to country. In
Germany, polysulfides account for about 80% of the market, while in France, market share dropped from
55% in 1985 to around 30% in 1996. In the period from 1993 to 1996, polysulfides held their own and
currently account for the major percentage of double and triple glazing produced in Western Europe.
Other sealants used are hot melts (polyisobutylene plus butyl rubber) and acrylics. In the overall European
market for sealants in all construction applications, the share of polysulfides decreased from about 25% of
the market in 1980 to 15% in 1996 and 1999, and finally to about 6% in 2008.
or
t
In double-glazing applications, polysulfide sealants remain the material of choice in Europe, as shown in
the following table:
Table 111
Share
(percent by
volume)
R
Sealant
Type
ep
Western European Market for Double Glazing by Sealant Type—2008
pl
e
Polysulfides
Polyurethanes
Hot Melt
Silicone
Total
Practically not used in the United Kingdom and Ireland.
Almost exclusively in the United Kingdom and Ireland.
100%
SRI Consulting.
m
SOURCE:
70
20
6
4
Remarks
Sa
A statistical rise in consumption between 1990 and 1996 in Western Europe is attributable mainly to the
incorporation of data for eastern Germany (former German Democratic Republic), where large
reconstruction efforts were undertaken. During 1999 to 2002, average yearly growth in consumption was
2-3%, because of the increased manufacture of insulating glass, one of the main applications for
polysulfide sealants. Between 2005 and 2008, polysulfide sealant consumption dropped because of more
efficient on-site use of sealant (i.e., less waste) because of improved product packaging and application
practices. In Western Europe, marine sealing applications are expected to show moderate growth. Overall,
low growth of about 1.5% is foreseen for polysulfide sealants in the near future.
•
SRI CONSULTING
DECEMBER 2009
199
20
09
The market share of polysulfides is declining overall since they are being replaced by polyurethanes and
silicone. Their continued use, however, appears guaranteed, particularly because of use in sealing areas
exposed to chemical or petrochemical spillage and also in the manufacture of gas-filled insulated glazing
units. The insulating glass market is expected to continue to grow, particularly in southern European
countries, Eastern Europe and Turkey. No growth is expected in Germany, and reduced consumption is
expected in France because of increasing competition from polyurethane sealants. The aerospace market,
currently about 350 metric tons per year, is expected to show only slow growth.
During the 1990s, polysulfide was used in Western Europe to seal pavement joints of gas stations to
protect groundwater from gasoline, especially diesel.
om
In Japan, the insulating glass market has not yet fully developed, but about 90% of the sealants used are
polysulfide-based. The rest is polyurethane sealant.
Table 112 shows the consumption breakdown for polysulfide sealants by application and system in Japan;
the estimated volume of polysulfide sealants was around 11 thousand metric tons (formulated), and of
this, about 3.1 thousand metric tons of polysulfide elastomers and block copolymers were used in 2008.
fr
Table 112
or
t
Japanese Consumption of Polysulfide Sealants—2008
(percent by volumea )
ep
Sealant for Siding/Construction
Double Glazing Window Sealant
Epoxy-Polysulfide Adhesives
Other Sealants
Total
100%
Estimated by the consumption of polymers (including
block copolymers) for the applications.
R
a.
55
39
3
3
SRI Consulting.
pl
e
SOURCE:
m
In sealant applications for siding/construction, lead oxide was used as a catalyst to polymerize polysulfide
elastomer in the past, but was totally replaced by a new polysulfide sealant system, polysulfide-polyether
block copolymer isocyanate cross-linker in Japan by 2005. This new polysulfide sealant has the
advantage of being environmentally friendly (lead free), and has improved performance in such features
as weatherability and paintability. In terms of the double-glazing market by sealant type, polysulfide had
slightly more than a 60% share, silicone had 30% and the remainder was accounted for by others in 2008.
Sa
The production of double-glazing windows in Japan has been increasing (9 million, 9.5 million, 14
million, and 13.4 million square meters in 2000, 2003, 2005 and 2008, respectively), and consumption of
sealants depends on these volumes. Due to the recession in the housing industry in 2008, production
decreased slightly. Manganese dioxide is often used as a catalyst for polysulfide double-glazing sealant
and other sealant applications.
Epoxy-polysulfide adhesives include epoxy-modified polysulfide used for elastic adhesives and
polyether-modified polysulfide used for fast-cure adhesives with epoxy resin.
•
SRI CONSULTING
DECEMBER 2009
200
Easy-to-use one-component systems have the disadvantage of slow cure, but are typically used by
consumers in the DIY market and by small contractors. Two-component systems require more expertise
to apply correctly and, therefore, are used by general construction companies. The two-component
systems also offer better durability and overall higher performance.
20
09
In China, polysulfide sealants had usually been consumed as waterproof materials in civil engineering,
such as dams and tunnels. Consumption of polysulfide sealants has increased very rapidly in the last three
years. In the future, polysulfide sealant consumption will continue to grow at an average annual rate of
8% of in the next five years.
om
In other Asia, polysulfide is used in cold climate regions/countries, such as in the northern Republic of
Korea for insulated glass windows. Consumption in Southeast Asia is very small, if any; it is imported as
sash units containing sealant.
Market participants
fr
Global
Global suppliers of polysulfide sealants are listed in the following table:
or
t
Table 113
Fenzi
Milan, Italy
Segments
Remarks
ep
Major Global Suppliers of Polysulfide Sealants as of October 2009
Trade Name
Insulated glass window
glazing
Manufactured in Milan, Italy; Shanghai,
China; Toronto, Canada; and Vilvoorde,
Belgium.
PS-545R
Insulated glass window
glazing
Adheres to glass, aluminum, galvanized
steel and stainless steel without the use of
primer.
Pro-Seal®
Aerospace
Manufactured in California, England and
France.
Thiover®
pl
e
R
H.B. Fuller
St. Paul, Minnesota, United States
m
PPG
Aerospace Division of PPG
Sylmar, California, United States
SRI Consulting.
Sa
SOURCE:
In early 2009, PPG’s polysulfide product PR-2007 became the first sealant to be qualified to SAE
International’s Aerospace Material Specification (AMS) 3281 Type II for a low-density, fuel-resistant
polysulfide sealing compound.
•
SRI CONSULTING
DECEMBER 2009
201
North America
North America’s supply of polysulfide sealants is provided by the global suppliers listed above as well as
by the company listed in the following table:
20
09
Table 114
North American Suppliers of Polysulfide-Based Sealants—2009
Company
Trade Name
Royal Adhesives and Sealants
South Bend, Indiana
Aerospace
SRI Consulting.
om
SOURCE:
WS series
Segments
fr
North American–based formulators of polysulfide sealants include H.B. Fuller, supplying PS-545R for
insulating windows and PPG’s PRC DeSoto division with its Pro-Seal ® product line supplying the
aerospace market segment.
Western Europe
or
t
The major suppliers of polysulfide-based sealants in Western Europe are shown in Table 115.
Table 115
Company
R
Den Braven BV
Netherlands
ep
Western European Suppliers of Polysulfide-Based Sealants—2009
pl
e
Germany
m
PCI Augsburg GmbH
Germany
Sa
Soudal NV
Belgium
SOURCE:
Trade Name
Markets
Zwaluw polysulfide
(one- and two-component)
Window glazing, floor joints
GD-115-116
NAFTOTHERM
(two-component sealant)
Insulating glass
PCI-Elrebon S
Fuel tank sealants
Soudacol
Construction
SRI Consulting.
Chemetall GmbH, Bereich Glas was purchased by Kömmerling Chemische Fabrik KG in 2003. PRCDeSoto, formerly Courtaulds Aerospace Coatings and Sealants, dominates the worldwide aircraft sealants
market, holding an estimated 80-90% market share. PCI Augsburg, part of the German SKW Group, only
markets polysulfide sealants under its trade names. Actual manufacture of the formulated sealants has
been outsourced to the company Colfirmit Rajasil, Germany, also a member of the SKW Group.
•
SRI CONSULTING
DECEMBER 2009
202
20
09
There are two producers of polysulfide base polymers in Western Europe—Akcros Chemicals Ltd.
(United Kingdom), 100% owned by GIL Investment Limited, and Arkema. The major producers of
polysulfides for window double glazing are Fenzi (Italy), Kömmerling (Germany), and Henkel
(Germany) with its brand Teroson.
Asia
om
Major producers in Japan and Other Asia are listed in Table 116. Yokohama Rubber is the largest
producer, and markets both sealant for siding/construction and double glazing window sealant, resulting
in an approximate 50% share of the total polysulfide sealant market. One-component polysulfide sealant
is used primarily for individual houses and two-component types are used for condominiums and other
buildings; however, the consumption of the one-component type is very small. Major Asian suppliers of
polysulfide sealants are listed below.
fr
There is one producer of polysulfide base polymers in Japan—Toray Fine Chemicals, with a production
capacity of 12.5 thousand metric tons including polysulfide-polyether copolymer; it markets product
domestically and overseas. Akzo Nobel built a new plant in Taixing, China, which had 10 thousand
metric tons of capacity in 2007. Local Chinese polysulfide sealant producers are all small producers;
multinational insulating glass producers have plants in China, and export the window units to the United
States and Europe.
or
t
Table 116
Major Asian Suppliers of Polysulfide Sealants—2009
China
Trade Name
ep
Company
Hengshui Forest Products Rubber Works Ltd.
Hengshui, Hebei
Markets
R
Construction
Construction
Ruida Rubber Engineering Co., Ltd.
Hengshui, Hebei
Construction
Shenyang Lihang Sealed Material Co., Ltd.
Shenyang, Liaoning
Construction, transportation
m
pl
e
Hengshui Jincheng Gongcheng Xiangsu Co., Ltd.
Hengshui, Hebei
Suzhou Nonmetal Mine Industry Design
Research Institute
Suzhou, Jiangsu
Sa
Construction
Zhengzhou Zhongyuan Institute Applied Technology
Zhengzhou, Henan
Construction
•
SRI CONSULTING
DECEMBER 2009
203
Major Asian Suppliers of Polysulfide Sealants—2009
Company
Trade Name
Markets
20
09
Japan
Hi-Bond
Konishi Co., Ltd.
Japan
Bond Seal
Nippon NSC Co., Ltd.
Japan
Belace
Nitto Polymer Industry Co., Ltd.
Japan
Parmaseal
om
Hitachi Kasei Polymer
Japan
Construction (one-component)
Japan, China
fr
Transportation
Japan
Toray Fine Chemicals Co., Ltd.
Japan
Japan
ep
Construction (one- and two-component),
double glazing
Koreseal
Construction (two-component), double glazing
SRI Consulting.
pl
e
SOURCE:
R
KCC Corporation
Republic of Korea
One-component
Hamatite
Other
or
t
Penguin Seal
Prices
m
In the United States, prices for polysulfide sealants averaged about $9-10 per kilogram in 2008.
Sa
The Japanese market price for two-component polysulfides (formulated) for construction was about ¥700900 ($7-9) per liter in 2009. As the specific gravity of polysulfide sealant is usually 1.4-1.5, the price
becomes higher per kilogram. Polysulfide sealant for double pane windows was about ¥500-600 ($5-6)
per kilogram.
In Western Europe, polysulfide sealants for insulating glass product assembly delivered in barrels are
about 5.50 euros ($8.05) per liter and 8.20-13.60 euros ($12-20) per liter for special performance products
for the construction market.
In China, the prices of polysulfide sealants ranged from 12 to 25 renminbi per kilogram in 2008, equal to
$1.70-3.60 per kilogram.
•
SRI CONSULTING
DECEMBER 2009
204
Opportunities and trends in the polysulfide sealant industry are listed below.
Paintable polysulfide sealants have been developed.
●
Low-emissivity (“Low-E”) double-glazing glass is common in northern Europe due to strict
legislation. High performance polysulfides having high gas/vapor barrier properties and
weatherability/outdoor durability may have more market opportunities among currently less
regulated countries as energy conservation becomes more important and energy efficiency
becomes more highly regulated.
●
Low-emissivity double-glazing glass is also common in northern Japan and there are some
market opportunities in northern Asia, such as the Republic of Korea and China. As this
technology is for energy saving purposes, even in the slowed economy in 2008-2009, the market
may not be damaged significantly.
Sa
m
pl
e
R
ep
or
t
fr
om
20
09
●
•
SRI CONSULTING

Sample Report from 2009

Transcription

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