Kissimmee, Florida – Air Products and Chemicals’ polyurethane additives business will continue to launch new products and build capacity ahead of the Materials Technologies spinoff to shareholders, said Steven Hulme, general manager, polyurethane additives
Hulme was speaking on the sidelines of the Center for Polyurethanes Industry (CPI) technical conference which ran from 5-7 October 2015 in Orlando, Florida.
Work on the company’s expansions in Nanjing China and Pasadena, Texas are progressing well, Hulme said, and both plants could be online by mid-2016. The Nanjing expansion will make triethylenediamine (TEDA) and the Pasadena site will make products mainly based around hydrogenation chemistry.
Air Products is using the CPI event to showcase a first generation amine catalyst for HFO blowing agent formulations.
The new product, designated Polycat 204, is “all about the interaction with HFOs and how that affects system stability,” said Hulme.
Polycat 204 is designed to overcome shelf life stability challenges associated with traditional amine catalysts in HFO formulations and is aimed specifically at the spray foam industry, Hulme said. “These customers may need six to eight months shelf stability,” he added.
“We are also developing sister products for other applications such as appliance, insulation panels, and flexible foam, where the system stability and reactivity needs may be somewhat different”, Hulme suggested.
Other new products which the company is planning to launch in the early part of 2016 include aldehyde scavengers for automotive applications, Hulme said.
Following the recent announcement by Air Products of its intention to spin the Materials Technologies business from the rest of Air Products, Hulme suggested that the process for separation was well underway and should not cause any problems for the Materials Technology business. There are some shared services, but the business is fairly self-contained, he said.
According to Air Products’ information, the new company is likely to have sales of around $2.1bn EUR 1.8bn with 54% of its sales in the US. Polyurethane additives is likely to make up 15% of the new business in terms of sales and is geographically balanced.
The new company is likely to have a debt to earnings ratio of around 4.5x EBITDA (earnings before interest, taxation, depreciation and, amortisation).
“We have a healthy cash flow that will allow us to cover our obligations, invest to grow our business, and reward our shareholders,” Hulme added.
XE Currency conversion: 8 October, 2015