Page 21 - Plastics News December 2017

COMPANY NEWS

Covestro to make €200m PopFoam partnering with US

investment in Spanish MDI site plastics manufacturer

erman materials supplier Covestro AG is investing opFoam, a custom manufacturer of a proprietary
G€200m in its manufacturing site in Tarragona, Spain, Pethylene vinyl acetate-based injection molded
to continue production of diphenylmethane diisocyanate foam, is partnering with a plastics manufacturer in the
(MDI) beyond 2020.Part of the investment will go towards United States to boost production capacities and serve
the company's setting up its own chlorine supply, “a its North American customers.Troy Lewis, co-founder
crucial raw material” in the production of MDI, to increase and vice president of sales & marketing at PopFoam,
the cost competitiveness of the site. Covestro will also said that he could not disclose the name of the plastics
debottleneck its local MDI plant, increasing production manufacturer at this time. The production facility is in
capacity by 50 kilotonnes per annum (ktpa) to around Oregon, but Lewis declined to give a specific location.
220ktpa.
"We're sharing space with them and, of course,
we're working with them in the actual production as
well," he said, adding that the two manufacturers
will also be sharing some equipment.The EVA foam
manufacturer uses injection molding machines up to
300 tons.PopFoam has two factories in China and one
in Taiwan, and employs 250. Lewis said the company
has a three-year plan that includes adding equipment
and creating 15-30 jobs. "The last three years we've
been on a pretty good growth curve. Our Taiwan
facility is almost at capacity, and we're adding a
machine there," Lewis said. "There is potential growth
in China, but we actually want to refocus to work with
the U.S. [facility]." Lewis said there is a growing trend
of U.S. companies that want to make their products
domestically.
MDI is a precursor for rigid foam – an insulation material
used, for example, in buildings and refrigerators. “We
are fully committed to the MDI market and our site in
Tarragona. By debottlenecking and establishing our own
chlorine supply, this site will become an even more
efficient and competitive plant within our network,” said
CEO Patrick Thomas.
Debottlenecking will be carried out through 2022 while
the start of chlorine production is planned for the end of
2020.External sources will supply the operation until 2020.
For the new chlorine production, Covestro intends to use
what it described as “state-of-the-art energy efficient The Oregon facility meets this demand and will allow
technology”, which will make the production of key raw PopFoam to work with faster delivery schedules. EVA
materials and the overall production more efficient.Also foam is primarily used on footwear, such as Crocs
commenting on the project, chief commercial officer Inc.'s foam clogs. But Lewis said PopFoam does "almost
(CCO) Markus Steilemann said his company anticipated anything but shoes." The company's proprietary EVA-
demand for MDI will continue to outgrow supply.Covestro based injection molded foam, which it says is "virtually
is also doubling its MDI production capacity at the German indestructible," is used for sporting equipment,
site of Brunsbuettel to 400ktpa by the end of 2018. exercise rollers, soccer balls and footballs.

21 December 2017 Plastics News