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Vice Chairman’s MessagePUTodayThese are really testing times for the Indian industry in generaland for the Indian Polyurethane industry in particular. Thisis mainly because of the global economic slow down. TheAmerican & European economies are badly affected by this slowdown, which in turn, has global ramifications.In India too, the share market index has fallen sharply in thelast few months, which has a negative effect on consumersentiments. People are getting cautious with their money, dueto which the expected growth in the automotive, appliance,building sector and other consumer goods industries has sloweddown considerably in the last couple of months. This in turn,has an adverse effect on demand for PU Foams & therefore onPU Raw Materials.The oil prices which were spiraling until August, have thankfullystarted coming down, however the rising oil prices coupled withthe high demand in China [till August], had pushed all thebasic Raw Material prices to a very high level internationally.This had even worse effects on the economy in India, becauseof the high depreciation of the rupee against the dollar. Such agrave situation has been a matter of great concern to all of us,but I believe that the worst is over.In recent times the oil prices have started going down, and onthe other hand, due to reduced demand, the cost of RawMaterials too has either stopped rising further or started adownward trend. Though this is a welcome phenomenon, interms of real pricing, I do not think this will be of much helpas long as the value of the dollar against the rupee remainsvery high. Unless the dollar rate starts dropping, no real changein terms of actual pricing is envisaged. There may not be reliefin prices in real terms, but being an optimistic I have seen thatsuch challenges keep coming to us every few years and like me,I believe that most of you do come out of it with flying colours.According to our Finance Minister, India will not be too seriouslyaffected by the global economic slow down. He predicts that itwill soon bounce back to normalcy. This certainly bodes wellfor all concerned! It will mean improved demand forPolyurethane products and our Indian PU Industry will be ableto maintain the growth rate close to what it has beenexperiencing for past few years. “Also, in times to come, manymore PU applications will come to India, which have beenvisible only in developed countries so far. This too will help infurther increasing demand for PU in India. Inspite of the presentsubdued conditions in the industry, let’s all hope for a quickturn around in circumstances in the immediate future!”Yours Truly,Mukesh BhutaS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y3

PUTodayEditorialIjust saw the proverbial ‘red flag’ being waved to incite the ‘bull’: anadvertisement on a bus read –“Last year, not all of Bret Lee’s Yorkers hit the wicket! It is payback time now…..”The visual accompanying this battle-cry, is of a gruesome injury on a bare foot– the looks of which had made me turn my face away, twice before, from thesame advertisement! This time around, the long red signal at the traffic lightsensured my captive attention.Are such incendiary “calls to march” required? Is “Halla Bol” an appropriatechant en route to a Cricket match? Such jingoistic behavior invokes the worstform of the rule of ‘an eye for an eye’ in people. What happened to – “playing thegame in its true spirit?” Sporting spirit is now passé - it has buckled under thecurrent wave of jingoism!The thumb rule that appears to define any kind of stratagem, is its jingoisticquotient – how fast and how strongly the plan of action, invokes this emotionin the masses, will decide its feasibility! Be it religion, politics, social service orbusiness, these same base instincts are appealed to, for fast results.This is why fanatics seem to rule the roost these days. It’s their diktat whichshapes the course of events as they unfold. It is their voice that is heard aboveall the sound and fury of the pathos around. It is not that this is the voice of themajority nor is it the case of having the backing of the majority. It’s just that the‘activists’ are always active. They are always on the prowl for opportunities tofurther their goals; to find any means to reach it, regardless of ethics – after all,the goal must justify the means and the costs.The ‘silent majority,’ is just that: SILENT; INACTIVE! Inertia seems to haveparalysed them. Each one who disagrees with what is going on around, juststays mum and inert like sitting ducks for the active arsonists and fanatics? Thisinertia or silence gives legitimacy to the social renegades, allowing them toportray themselves as the ‘Voice of the People!’ They take the law in their handsas if it were part of their ancestral inheritance - going about flouting it orbending it at will, with impunity!To galvanize those paralysed by inertia or denial, is a task often left to peoplein the ‘public eye,’ viz writers, performers artists and journalists through thecommon channel of the Media. BUT, the belligerent zealots use the media astheir mouthpiece. The aggressive war for TRPs and for just selling their ‘product,’has allowed these heretics to hold the media by the jugular – social responsibilitybe damned. The excuse for the media turning a blind eye to social responsibilityis that they are just ‘doing their JOB!’ There are ways and there are ways of doingone’s job. It’s up to individuals to redeem themselves on the day of reckoningwhen one meets one’s Maker!Why can’t a country with over a billion people come up with a panacea forthese maladies? Why can’t our country with self professed scholars from timeimmemorial, come up with a practical and secular philosophy for the masses?Why can’t we come up with ways to give ‘momentum’ to our ‘silent and inert’majority?Along with the nuclear deal with the US, we should also sign-up for a quickcourse in ‘American Salesmanship’ [where they teach you to sell ice to anEskimo in Alaska] – to disseminate palatable and captivating remedies forsocial causes.Sincerely,Medha Bhuta4 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

PUTodayContentsC O N T E N T SPUBLISHED BY THE INDIAN POLYURETHANES ASSOCIATIONEDITORMRS. MEDHA BHUTAEDITORIAL TEAMMR. PRANAV KULKARNIMR. ASHISH SOODCOMPILATION & SELECTIONMR. ARUN KUMARMR. CHANDRAKANT NAYAKDESIGN CONCEPTMR. MUKESH BHUTAGRAPHIC DESIGN & LAYOUTRED SKY DESIGNSPRODUCTION & EXECUTIONMR. RAMAMURTHYCHAIRMAN EMERITUSMR. M. SARANGAPANIIPUA OFFICE BEARERSCHAIRMANMR. RAHUL GAUTAM 0120 – 4162220 / 4162200 rahul@sheelafoam.comVICE CHAIRMAN’S MESSAGE ................. 3EDITORIAL .................................... 4CREDITS + CONTENTS ....................... 5INDUSTRY UPDATES .......................... 7INTERNATIONAL NEWS ........................ 13PRODUCT NEWS ............................ 19TECHNICAL ARTICLE ......................... 23HEALTH & SAFETY ......................... 24MARKET SURVEYS .......................... 26SPECIAL FEATURE ............................. 30PREVIEWS & REPORTS ..................... 38BOOK REVIEW .............................. 40EVENTS & TRENDS .......................... 42VICE CHAIRMANMR. G. RAMACHANDRAN 044-25941025 md@manalipetro.comMr. MUKESH BHUTA 022-27680303 mbhuta@expanded.co.inTREASURERMR. GIAN JAIN 011-27138428 juhipufoam@yahoo.co.inSECRETARYMR. K. RAMAMURTHY 044-24995923 tvkkrpu@md3.vsnl.net.insecretary@pu-india.orgIPUA EXECUTIVE COMMITTEE MEMBERSMR. JAGANNATH SARANGAPANI 040-23701871jagannath@ufoamindia.comMR. ASHISH KUMAR 0120-4255100 ashish_kumar@huntsman.comMR. UDO SCHILLING 022-55917420 udo.schilling@basf.comMR. DEEPAK T. MEHTA 079-26578912 deepakmehta@tirupatifoam.comMR. BALRAM U. NICHANI 080-27832851 balram.nichani@polyflexindia.comMR. AJAY DURRANI 0120-2589040 ajay.durrani@bayerbms.comMR. M. G. BOHRA 044-25952001 mgb@amulpolycure.comMR. H. S. KOCHAR 011-204355533 kochar@pfeda.netMR. S. ARUN 02642-247181 arun@gnfc.inMR. RABINDRA JHAJHARIA 033-22298904 multiwynfoams@multiwynfoams.comMR. CHANDRAKANT NAYAK 022-67978500 nayak@dow.comMR. SANJAY SANGHI 022-40059350/51/52 sanjay.sanghi@momentive.comMR. PRANAYA PRADHAN 09731303238 pranaya.pradhan@shell.comS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y5

PUTodayIndustry Updates6 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Industry UpdatesPUTodayMomentive and Chennai based Anabond willjointly invest to develop, manufacture and marketSPUR sealants for the Indian subcontinentSource: Momentive Performance Materials Published: 30 June 2008MomentivePerformanceMaterials and Anabond todayannounced their jointdevelopment agreement todevelop and manufacture ‘SPURSealants’ in India. UtilizingMomentive’s research,development support and expertiseof the SPUR+* pre-polymerAnabond will manufacture thisproduct in their Chennai /Puducherry plant for serving thelocal markets.This agreement allows Momentiveand Anabond to jointly developSPUR+ sealants and market themin the defined areas. Momentivewill market this product in theconstruction segment andAnabond will market it in theautomotive and electrical &electronics segment under licensefrom Momentive. Other Areas notspecified under this agreement areopen to both the companies formarketing their products based onmutual understanding.SPUR Sealant is a Hybrid thatexhibits excellent properties interms of Non-stain, non-bleed,paintable, high strength,primerless adhesion, Fast cure andDurable.Speaking on this occasion Mr. VPNalian, Managing Director,Momentive Performance Materialssaid “This development is aquantum leap in silicone sealantsarea, in this part of the world andis in line with Momentive India’sVision of combining globaltechnology with local applicationdevelopment, manufacturing andservice to bring world classproducts and services in siliconesto the Indian market. We believeAnabond is the right partner forthis joint development agreementto develop ‘Spur Sealants in India.”“Their expertise in the adhesive andsealants area namely in theautomotive industry, combinedwith their manufacturingcapabilities will help us develop“This development is a quantumleap in silicone sealants area, inthis part of the world and is inline with Momentive India’sVision of combining globaltechnology with localapplication development,manufacturing and service tobring world class products andservices in silicones to the Indianmarket.”Mr. VP Nalian, Managing Director,Momentive Performance Materialshigh end ‘SPUR Sealant’applications and bring this worldclass product to the Indiancustomers in a cost effectivemanner”. The partnership ofMomentive and Anabond will seethe launch of the ‘SPUR Sealants’by the fourth quarter. The projectwill be led by Mr. K. AdhiNarayanan, Director on behalf ofAnabond, and by Dr. VenkateshShingankuli - Director Technologyand Application Development ofMomentive.During this period Momentive willprovide all necessary technicalinputs and support for anyexperiments / trials by extendingtheir Application DevelopmentFacility (s) in India or overseas. Theywill also assist Anabond indeveloping formulation and processfor the compounding of SPUR+Sealants. Momentive will alsoprovide production technology,supply of raw materials, packingmaterials and training to Anabond’sproduction team.Speaking on the occasion, Mr. VijayKumar, Managing Director ofAnabond India said “We areprivileged to work with a globaltechnology leader like Momentivewith whom we have developed arelationship from a materialsupplier to a strategic partner. Weare proud to be associated withthem and look forward to havemore such growth opportunities inthe future.”S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y7

PUTodayIndustry UpdatesBayer on firm path to success with waterbornedispersions in Asia – PUD Road ShowA Customer Event organized, to showcase Bayer’s eco-friendly, water-based coatingand adhesive raw materialsM umbai, September 16 -Bayer MaterialScience,Business Unit: Coatings, Adhesives,Specialties organized a one dayworkshop for customers toshowcase the Company’scapabilities in polyurethanedispersions (PUD). Recently, BayerMaterialScience also celebrated thestart-up of a new 20,000 tons/yearfacility for PUD at the BayerIntegrated Site in Shanghai, China.With the-state-of-the-art facility,Bayer MaterialScience now has PUDproduction facilities in each of theworld’s major industrial regions,and is well-positioned to meet thegrowing demand ofenvironmentally friendly rawmaterials for coatings andadhesives in the Asia Pacificmarket. The other PUD productionfacilities of the CAS Business Unitare located in Europe (Dormagen,Germany) and North America (NewMartinsville, U.S.A.).quality levels of traditionalcoatings in certain respects such aschemical resistance or drying time.Examples of applications includeadhesives for the sole bonding ofhigh-quality athletic shoes; filmlamination of furniture facings,adhesives for automotive interiors,and coatings for furniture,parquet, vehicles, plastic parts andindustrial goods.In line with the Bayer Group’sglobal commitment to “Science fora Better Life” and the Bayer ClimateProgram, the CAS Business Unit isincreasingly promoting the use ofwaterborne dispersions as the rawmaterial of choice for coatings andadhesives. Waterbornepolyurethane dispersions (PUD)make a significant contribution tothe reduction of Volatile OrganicCompounds (VOC). PUD’s are usedin coatings and adhesivesformulations, textile and leathercoatings and in glass fiber sizings,where they achieve or even exceedPUD Road show - The CAS team with the guest speakersSpeaking at the event in Mumbai,Stephan Gerlich, ManagingDirector, Bayer MaterialScience Pvt.Ltd said, “In India, environmentalprotection has become a majorconcern and is also recognized asa priority by the government andmany agencies. In recent years,there has been a significantincrease in awareness and demandfor environmentally responsibleproducts and services in thecountry. That is why Bayer is bringinghigh-quality raw materials andadvanced technology to thecountry.” He further added, “Wehave started several initiatives fromwithin the Bayer world towards ourgoal for a safer and cleanerenvironment. It is our endeavour toprovide our customers withcomprehensive solutions for theirrequirements keeping in mind theseobjectives as well.”8 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Industry UpdatesPUTodayraw materials and technology incoatings. His presentation alsocovered various examples whereinwaterborne PUD’s have beensuccessfully used in coatings.PUD Road show - CAS products on display- L to R- Dr. Tong-Zhou Liu, Rolf Irnich andDr. Yuduo ZhuIn India, Bayer MaterialScience isalso committed to driving thedevelopment of waterbornedispersion raw materials. SatishShenoy, India Head for the Coatings,Adhesives and Specialties BusinessUnit said, “The Company here wouldlike to be the leader in promotingenvironmentally friendly coatingand adhesive raw materials. Thehigh cost and the need to conservenon-renewable resources andprotect the environment as well ashealth of users is a key concern area,which is driving this initiative fromBayer MaterialScience.”VOC emission control and theregulations and actions, in theIndian context.Chaiwat Kongnoi, Safety, Health,Environment and Quality expertfrom BaySystems, Thailand spokeon the international scenario onVOC & REACH.Dr.Tongzhou Liu, Director ofBusiness Development, IndustrialCoatings, APAC spoke on theApplication of Bayer’s waterborneRolf Irnich, Head of TextileCoating, APAC spoke on the use ofPUD’s in Textile coatingapplications. His presentationcovered the various grades of PUD’soffered by Bayer MaterialScience,processing of the PUD’s and thetechnical support offered by BayerMaterialScience for PUD basedtextile coatings.Dr.Yuduo Zhu, Head of BusinessDevelopment, Adhesives, APACspoke on the use of PUD’s formanufacture of environmentallyfriendly adhesives for variousapplications like footwear,furniture, automotive etc.The seminar was well attended bytechnical experts from leadingpaint, adhesives and end-useindustries. The final Q&A sessionwas very interactive with keeninterest shown by the audience inasking questions and seekingclarification from the BayerMaterialScience experts.There were several keynote speakersat the event, who illustrated throughtheir presentations and discussions,the need for looking at moreenvironmentally friendly systems andprocesses in the business and alsoexplained the tangible benefits ofthese raw materials.Anjali Srivastava, Deputy Director &Head, NEERI, Kolkata Zonal Centerwas the keynote speaker for theevent. She spoke on the need forPUD Road show - Mr.Stephan Gerlich, MD, BMS IndiaS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y9

PUTodayIndustry UpdatesRolf Irnich with a customerAbout the Coatings, Adhesives,and Specialties Business Unit:The Coatings, Adhesives, SpecialtiesBusiness Unit is one of the mainbusiness units among BayerMaterialScience. Business activitiesare focused on raw materials forcoatings, adhesives, sealants andfunctional films. The main segmentsserved include the automotive/transportation, mechanicalengineering, furniture, plastics,construction, packaging, footwear, ITand electrical/electronics industries.In 2007, Bayer MaterialScienceinaugurated an ApplicationDevelopment Laboratory forcoatings and adhesives at Thane withthe aim of strengthening theCompany’s position in the highpotential Polyurethanes coatingsmarket in India and providinginnovative solutions to customers.Forward-Looking StatementsThis release may contain forwardlookingstatements based oncurrent assumptions and forecastsmade by Bayer Group or subgroupmanagement. The companyassumes no liability whatsoever toupdate these forward-lookingstatements or to conform them tofuture events or developments.Indian automotive, zipin’ in the fast lane!But to capitalise on growth it will have to keep pace with globaldevelopmentsThe division of productionprocesses and outsourcingamong global automobilemanufacturers has led to a majorre-organisation of the supply basewithin the automobile and autocomponent industry. This newbusiness model being followed byglobal companies holdstremendous potential for thegrowth of auto-ancillary industryin India. However, the key risks thatthis industry in India faces includefluctuations in the cost ofproduction, especially rawmaterials like steel, aluminium,polymers. Then there is a poornegotiation power due tofragmented nature of industrywhich in turn limits their pricingpower. There’s more! Dependenceon traders and agents to accessoverseas markets which threatenstheir competitiveness and thenthere’s product substitutes due tofast-changing technology.Despite all the apparentshortcomings and infrastructuralbottlenecks, India has several keyadvantages over its westerncounterparts. The country providesskilled and cheap labour helpingplayers to achieve a significantSubhasish DeyIndustry Manager (Automotive)Huntsman International (I) Pvt. Ltd.10 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Industry UpdatesPUTodaylevel of automation at a lower cost.Global benchmarks for qualitystandards are also being met. Infact the companies are using totalquality management and totalproductivity management to lowertheir production costs. Even thelegal and accounting systems arein place to meet the globalstandards. Moreover, thetechnology in the industry too hasimproved significantly with quitea few Indian companies enteringinto technological collaborationswith global majors. This has ledIndian professionals’ proficiency inunderstanding technical drawings,specifications and their being wellconversant in all global automotivestandards. Further the flexibility insmall-batch production along withgrowing IT capability for design,development & simulation haveforced the global auto majors tolook at India.However the industry is stillrelatively fragmented withhundreds of small componentmanufacturers – but the largestplayers now have the scale andcapability to compete ininternational markets and meet thegrowing domestic demand.Through collaborating withtechnically sophisticated overseasmanufacturers they have developedthe design and manufacturingexpertise to become OEM and Tier-I suppliers. Moreover foreigninvestment rules now allowoverseas players to establish 100%owned subsidiaries. This has helpedto integrate India into the worldmarket and also forced domesticplayers to enhance the quality oftheir products. Global MNCs havestarted shifting Automotive DesignCentres into India, it being anexcellent base for prototyping,India is now being seen asan excellent base forprototyping, testing andvalidating of autocomponents.testing, validating andproductionisingofautocomponents. India now ranksamongst the most preferreddestinations for most of the majorglobal OEM players. Global autogiants which include Hyundai,Ford, Skoda, General Motors,Volvo, Delphi, Renault are alreadyoutsourcing from India. In factmost of them now also boast of adesign and research centre in India.The size of the global autocomponent industry is $1.2 trillionwith most of it located in high costcountries. Global purchases ofcomponents by internationalvehicle manufacturers are currentlyestimated to be $45 billion.However, the role of outsourcingis constantly increasing.Furthermore, the problem of highrejection rates which plagued thedomestic auto ancillary industryhas been overcome. This is reflectedin the number of overseas dealsconcluded by the domestic industryamidst stiff competition from otherAsian countries. The governmenthas extended various fiscalincentives and policy measureswhich too has helped the industry.Critically, outsourcing ofautomobile components that haverelatively high engineering anddesign content from suppliers inlow cost countries like India, israpidly gaining momentum.Exports of auto components fromIndia have witnessed acompounded double digit annualgrowth rate over the last few years.During the fiscal 2007, the industryachieved a milestone of $3 billionworth of exports over acomprehensive product range andacross the globe. It is estimatedthat in the next 10 years the autocomponents industry will reach$33-40 billion. Strategic tie-ups andcontract manufacturing is anotherway forward for the autocomponent industry with exHyundai chief R. V. Subbu ledArgentum Motors taking the initialstrides in this direction by takingover the erstwhile Daewoo factorypremises at Surajpur, UP.Looking forward, it is the best oftimes for Indian auto componentmanufacturers. The outlook for theindustry is bright and is expectedto continue on a high-growthtrajectory for the next 10 years.Capitalising on this growthprospect will mean keeping pacewith global developments andimbibing capabilities that will givean edge to Indian auto componentmanufacturers in surviving thisrapidly changing competitiveenvironment.Critically, outsourcing ofautomobile componentsthat have relatively highengineering and designcontent from suppliers inlow cost countries likeIndia, is rapidly gainingmomentum. Exports ofauto components fromIndia have witnessed acompounded double digitannual growth rate.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y11

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International NewsPUTodayBASF makes offer to acquire Ciba15 September 2008• Cash offer of CHF 50.00 pershare provides attractivepremium• Ciba’s Board of Directorssupports offer• BASF to expand its leadingposition in specialty chemicalswith additional products andservices• Repositioning and restructuringof paper chemicals operationsto create leading supplier withextensive portfolio• Basel to remain an importantsite for parts of the combinedbusinessLudwigshafen, Germany –September 15, 2008 – BASF [BAS,BFA, AN] plans to acquire CibaHolding AG, Basel, Switzerland,[CIBN], a leading specialtychemical company, and will makea public takeover offer to Ciba’sshareholders. BASF will pay CHF50.00 in cash for each nominalshare in Ciba. BASF and Ciba havereached a transaction agreementin which the Board of Directors ofCiba supports BASF’s attractive offerand recommends its acceptance toCiba’s shareholders. The offercorresponds to a premium of 32percent above the closing price forCiba’s shares on September 12,2008 and a premium of 60 percentabove the volume-weightedaverage share price for Ciba sharesin the 30 days prior toannouncement of the publictakeover offer. Based on alloutstanding Ciba shares andincluding all net financial liabilitiesand pension obligations, theenterprise value would be CHF 6.1billion (approximately •3.8billion).Convincing strategic logic“With the acquisition of Ciba, weare strengthening our portfolio andexpanding our leading position inspecialty chemicals with productsand services for a variety ofcustomer industries, in particularthe plastics and coatings industriesas well as water treatment. Inpaper chemicals, we will intensifythe urgently needed restructuringprocess and become the leadingsupplier with an extensive portfolio.We will grow profitably inaccordance with our clear andsuccessful strategy. The transactionmeets our acquisition criteria. Weexpect that it will make a positivecontribution to earnings per sharein the second year,” said Dr. JürgenHambrecht, Chairman of the Boardof Executive Directors of BASF SE.“Our attractive cash offer gives Cibashareholders the opportunity torealize the full value of theirinvestment plus a high premiumimmediately,” he added.“We recognize the strength of broadareas of Ciba’s portfolio, even if thecompany’s performance hasdisappointed analysts and investors,especially in the second quarter of2008. Ciba has a leading marketposition, in particular with itsportfolio of plastics additives andcoating effect materials, and offersits customers significant benefits,“continued Hambrecht. Theintegration of Ciba’s activities intoBASF and the necessary furtherrestructuring measures will give thebusinesses sustainable strength andoffer them a long-term perspectivefor profitable growth. Theprecondition for this is to rigorouslyimprove operational excellence.Hambrecht stressed: “We lookforward to working with Ciba’shighly committed executives andemployees. We offer the companyand its employees a new home witha long-term, viable perspective.Basel will remain an important sitefor parts of the combined business,in particular research, and we willestablish a global operatingdivision there. We are convincedthat there is a good match betweenthe cultures and traditions of ourS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y13

PUTodayInternational Newstwo companies. BASF plus Ciba isa recipe for both consolidation andprofitable growth.”“Against the backdrop ofincreasingly challenging conditionswithin our industry, this is atransaction which combines a fairprice with an industriallycompelling solution for Ciba,” saidDr. Armin Meyer, Chairman of theBoard of Directors of Ciba. “Ciba’sbusinesses will be strengthenedsubstantially thanks to integrationinto BASF’s Verbund and the accessto BASF’s research, production andmarketing platform. This appliesparticularly in the Plastics, Coatingsand Paper divisions. BASF is a longstandingcustomer and supplier ofCiba and well-acquainted with ourpeople and our business. Theacquisition of Ciba by BASF willprovide a long-term perspective forprofitable growth of the Baseloperations in particular and ourother businesses around the world.”Clear advantages in globalcompetition“In the current consolidationphase in the chemical industry,the acquisition of Ciba offers clearadvantages in terms of globalcompetition,” said Hambrecht.The merger of the activities ofBASF and Ciba would extendBASF’s leading position as apreferred supplier to the plasticsindustry and make BASF thesecond-largest supplier of coatingeffect materials. In the fastgrowingand highly profitablemarket for plastics additives, BASFwould expand its portfolio bygaining important productsegments such as UV stabilizersand antioxidants. In the area ofcoating effect materials, thecombination of BASF and Cibawould offer an extensive range ofpigments, resins and additives.Thanks to economies of scale andgreater efficiency, the resultingleading supplier of chemicals forthe paper industry would offer thebroadest product portfolio in theindustry and with its global reachwould provide customers with thebest range of products and servicesin a difficult market environment.Extensive restructuring is necessarythroughout the entire paper valuechain. By combining andrepositioning the paper chemicalsbusinesses of BASF and Ciba, BASFwould start this urgently neededprocess with the aim of ensuringthe long-term profitability of theseactivities.Chemical Companies Work to Recover from Ike18 September 2008The American ChemistryCouncil’s (ACC) president andCEO Cal Dooley have issued thefollowing statement regarding Ike:“Our thoughts and prayers are withthe people of Texas and Louisianaas well as the emergency responseteams that are working hard torecover from Hurricane Ike. Theone-two punch of Gustav and Ikehas created major challenges forchemical facilities in the Gulf coastarea as they try to resume normaloperations as quickly and safely aspossible. Facility operatorscontinue to work closely withgovernment officials to expeditethe safe movement of employeesand materials in and out of areasimpacted by the storms.”Texas and Louisiana are the leadingdomestic producers of chemicals,accounting for 28% of the chemicalproduction in the U.S., and criticalto supplying the raw materialsused to manufacture products thatare essential to modern life.ACC represents the leadingcompanies engaged in the businessof chemistry and 90 percent of theproductive capacity for basicindustrial chemicals in the UnitedStates. The business of chemistryis a $664 billion a year high-techindustry and one of the largest andmost globally competitiveexporting sectors in the U.S., withexports totaling $109 billion in2004. U.S. chemicals exportssupport 227,000 of the nearly onemillion American jobs provided bythe chemical industry.We at ASI wish for all those affectedby Hurricane Ike to be safe duringthese difficult times.14 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

International NewsPUTodayBayer plans to invest EUR 100 million in BrazilWenning: “Brazil is our biggest market in Latin America”L eververkusen / Belforord d Roxoxo,June 23, 2008 – Bayer plans toinvest roughly EUR 100 million atits Brazilian sites through the endof 2009. This was announced byGroup CEO Werner Wenning at apress conference held in BelfordRoxo, near Rio de Janeiro, to markthe 50th anniversary of the site’sfounding. “Brazil is our biggestmarket in Latin America, and wewant to further expand our positionin this growth region,” Wenningsaid. In 2007 Bayer achieved salesof EUR 3.2 billion in Latin America.Of this figure, Brazil accounted forabout EUR 1.2 billion – or morethan one third – and is thus one ofBayer’s top ten markets worldwidein terms of sales.The announced investment programwill focus on Belford Roxo, whereEUR 40 million will be spent onmodernization and technicalupgrading of the productionfacilities for plastics precursors andcrop protection products, as well ason infrastructure projects. Inaddition, partner companies haveannounced that they will invest afurther EUR 55 million at the Bayerindustrial park in Belford Roxo. Theprojects to be implemented byBayer and its partners will create800 new jobs in the Belford Roxoarea in addition to the current2,000 positions at this location. Afurther amount of roughly EUR 60million is to be invested at the otherBayer sites in Brazil.“The size of this investmentunderscores our commitment and(f. r.) Bayer CEO Werner Wenning, SergioCabral, Governor of the State of Rio deJaneiro, President Luiz Inácio Lula da Silvaof Brazil, and the Bayer SeniorRepresentative in Brazil, Dr. HorsfriedLäpple, with students of the Bayer SoccerAcademy at the Belford Roxo site.is meant as a clear vote ofconfidence in Brazil,” Wenningstressed at a ceremony attended bymore than 500 guests from politics,industry and society – includingBrazilian president Luiz Inácio Lulada Silva and Rio de Janeiro stategovernor Sergio Cabral.Source : www.press.bayer.com/baynewsChina Q4 MDI outlook hinges on economics15 July 2008SINGAPORE (ICIS news)—China’sdemand for methylenediphenyl diisocyanate (MDI)after the Beijing Olympic Gamesdepends on whether the generalglobal economic climate improves,suppliers said on Tuesday.Various economic measuresimplemented by the Chinesegovernment earlier this year toprevent the domestic economyfrom overheating have squeezedthe cash-flows and margins ofmanufacturers in key MDIapplication sectors, they said.These measures included tightercredit controls and higher labourcost With the appreciation of theChinese yuan against the US dollar,these measures have leftmanufacturers in the key sectorssuch as refrigerator, shoes,synthetic leather and spandexgrappling with reduced exportorders from key markets such as theUS and Europe.Consumer demand in thesecountries had been hit by ageneral economic slowdown, theysaid.By Chow Bee Lin“China’s polymeric MDI (PMDI)demand has been weak since Juneas the key refrigeratorapplication sector startedcutting output two months earlierS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y15

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International NewsPUTodaythan usual due to poor local andexport demand,” an internationalMDI producer said.He noted that the typical lowproduction season is from Augustto September.The Chinese government’s plans tosubsidise rural households’purchases of refrigerators wereexpected to boost domesticdemand this year, but the moveshad not been fully implementeddue to a lack of resources, aJapanese trader said.The government’s financialresources have been diverted to therebuilding work in Sichuanprovince in the aftermath of thetragic earthquake in May, he said.Demand for polymeric MDI, a rawmaterial for making polyurethaneinsulators used in undergroundpipes, had weakened significantlyalso partly due to governmentregulations imposed to minimiseair pollution in the run-up to theBeijing Olympic Games, aShanghai-based trader said.“Ongoing underground pipelineprojects in north China have to stopworking from 20 July to 20September as part of the localgovernment efforts to minimise airpollution during the Games,” hesaid in Mandarin.Operations at the pipeline projectswere expected to return to normalin October but PMDI demand wasunlikely to pick up markedly if thekey refrigerator application sectorcontinued to run at low capacities,the MDI producer and traders said.Despite the lacklustre demand,China MDI prices had been largelystable as producers were faced withhigh feedstock benzene andanilene cost pressure, and wereunwilling to reduce prices to enticebuying interest, they added.“Around 60-70% of MDI comprisesbenzene feedstock which rose byaround $300/tonne in the secondquarter, and hence MDI prices rosein tandem by around $200/tonne,”a second Japanese trader said.He added that it was difficult to matchthe price hikes with that of benzenebecause it was not easy for MDI endusersto pass on the costs todownstream customers, he added.The average weekly polymeric MDIprices rose by $60/tonne in thesecond quarter from $2,515/tonneCFR (cost and freight) China in earlyApril to $2,575/tonne in end June,and the average weekly benzeneprices rose by over $200/tonne inthe same quarter from $1,105/tonneCFR NE (northeast) Asia in early Aprilto $1,330/tonne in end June,according global chemical marketintelligence service ICIS pricing.Mitsui Chemicals Acquisition of SDCTechnologies, Inc.26 June 2008Mitsui Chemicals, Inc. (ºnCI)announced today that onJune 25, 2008 (PDT) it completedthe acquisition of all theoutstanding shares of commonstock of Silvue Technologies Group,Inc. (D’ilvue), the holding companyfor SDC Technologies, Inc. (D’DC),which manufactures and sells highperformance coating materials forplastics and non-ferrous metals.Under its new Mid-term BusinessPlan starting in fiscal 2008, MCI hasset forth a basic strategy for theAdvanced Chemicals BusinessSector to increase its business scaleby focusing on M&A andestablishing a third pillar inaddition to the PerformanceMaterials and Basic ChemicalsBusiness Sectors. Through thisacquisition, the Vision CareMaterials business is aiming toenhance its profitability as a corebusiness driven by ophthalmic lensmaterials.We believe the acquisition of SDCwill open up several promising newareas for the MCI Group, includingentry into ophthalmic lens coatingmaterials. This will accelerate MCI’sown development of new coatingmaterials, which will furtherenhance the growth and expansionof the Vision Care Materialsbusiness.MCI will also seek additionalsynergies from the acquisitionthrough cooperation between abroad range of its businesses andthe newly acquired resources fromSDC to create significant value add.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y17

PUTodayInternational NewsSaudi Aramco and Dow plan US$26 billion chemicalsprojectSource: Your Industry News07 July 2008In a bid to take advantage of theworld’s biggest oil reserves andmeet rising demand for plasticsused in consumer goods, SaudiAramco and Dow Chemical Co. planto invest US$26 billion in apetrochemicals complex in SaudiArabia.State-owned Aramco and Dow, thelargest U.S. chemical producer, aimto raise around $18 billion fromloans and bonds starting next yearto finance the project, said thebanker, who declined to beidentified because the plan isprivate. Royal Bank of Scotland PLCand Riyad Bank will help raise 70percent of the project’s cost, saidAbdulaziz al-Judaimi, Aramco’s vicepresident for new business,declining to provide an amount.The chemical plant, using low-costoil supplies, will open up cheaperraw materials to Dow and helpSaudi to diversify from petroleuminto higher-value products. SaudiBasic Industries Corp, the world’sbiggest chemicals maker by marketvalue, said last year it’s expandinginto specialty products in a bid tocompete with companies such asEurope’s BASF SE.Aramco and Midland, MichiganbasedDow last year formed anequal venture to build factories atRas Tanura on Saudi Arabia’sPersian Gulf coast. The plants willhave the capacity to produce asmuch as 8 million tons ofchemicals and plastics a year, usingraw materials from nearby oil andnatural gas plants. The oil ministryof Saudi Arabia, the world’s biggestcrude exporter, said today it plansto spend $250 billion on oil, gas,power and water productionthrough 2012.Dow is raising prices as much as 25percent this month to recoupsurging energy and raw-materialcosts as the cost of crude oil rose toa record above $145 a barrel. It hassaid the Ras Tanura complex willmake products including ethyleneand polyethylene, used to makefood packaging, chlorine, causticsoda, epoxy resins and polyurethaneonce production begins in thesecond quarter of 2012.Middle Eastern companies raised$38 billion of loans so far this year,compared with $45 billion in thesame period in 2007, datacompiled by Bloomberg show.Twelve lenders bid to advice on theRas Tanura financing, according tothe banker. The banks includedCitigroup Inc., HSBC Holdings Plc,BNP Paribas SA, Calyon, SocieteGenerale SA, Samba FinancialGroup and Gulf International BankBSC, he said.Dow and Aramco will also seekexport credit agency funding onceproject manager KBR Inc., theHouston-based engineering firmthat split from Halliburton Co. lastyear, has chosen all the plant’ssuppliers, the banker said.Dow Automotive Names New Global R&D DirectorAuburn Hills, MI02 September 2008Dow Automotive, a globalprovider of advanced solutionsfor vehicle manufacturers andaftermarket repair, has namedDavid Bem, Ph.D., the new GlobalResearch & Development (R&D)Director. Effective immediately, Dr.Bem will be responsible foridentifying, developing andcommercializing new technologiesthat create sustainable value. Hereplaces John Hacskaylo who is nowChief Technology Officer at K-DowPetrochemicals.Most recently, Dr.Bem served as the Senior ResearchDirector for Dow Hydrocarbons &Energy, Alternative Feedstocks andBasic Chemicals. Prior to joiningDow, Dr. Bem was Global R&DDirector at Celanese LTD for theTicona Engineering Resins business.He also led the Global Acetyls R&Dfor the Celanese Engineering Resinsbusiness and worked at UOP LLC, aHoneywell Company, where heheld various positions.Dr. Bem is acertified Six Sigma black belt andholds nine US patents. He hasauthored more than 20publications. He earned a Ph.D. insolid state inorganic chemistryfrom the Massachusetts Institute ofTechnology and his undergraduatedegree in chemistry from WestVirginia University. His office willbe based in Auburn Hills.18 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Product NewsPUTodayHuntsman launches new generation of brandedadhesive products for the global engineeredwood panel industry12 September 2008T he Woodlands, TX – ThePolyurethanes division ofHuntsman Corporation (NYSE:HUN)today announced the launch of anew generation of brandedadhesive products for the globalengineered wood panel industry.I-BOND® adhesives are a family ofMDI-based, zero-addedformaldehyde resins for use in themanufacture of oriented strandboard (OSB), medium densityfiberboard (MDF), particleboard(PB) and wood fiber insulationboard (WFIB). I-RELEASE® releaseagents can be utilized on eithercontinuous or multi-daylightpresses and can be applied eitherinternally or externally.”These new product brands showour commitment to theengineered wood panel industry bycontinuing to develop innovative,specialty grades of MDI adhesives,supported by a complementaryrange of release agents” said GregGeaman, Vice President Americasfor Huntsman’s Polyurethanesdivision and global sponsor for thedivision’s engineered wood panelsbusiness.“Our latest generation of fast cureand emulsifiable I-BOND®adhesive resins and our new rangeof complementary I-RELEASE®release agents, are the latest stepin our determined strategy to givecustomers the tailored productsthey need to solve specificproblems and reach new markets,whilst increasing their profitability”he added.The new product brands will besupported in the market byHuntsman’s service-oriented teamof composite wood panel experts,including dedicated industrialhygiene specialists.Forwardwebsite at www.huntsman.com.LookingStatement:Statements in this release that are not historical are forward-looking statements. The company assumes noobligation to provide revisions to any forward-looking statements should circumstances change, except asotherwise required by applicable laws.Bayer Material ScienceSandwich panels offer high mechanical strength and good soundabsorptionL everkusen, July 2008 – Withyoung soccer fans more than everthe European Soccerdream of scoring dramatic goalsChampionship just recentlyand becoming national favorites,over,just like Germany’s Podolski,Schweinsteiger and Ballack. Thesporting event of the year, togetherwith the World SoccerChampionship back in 2006, hasfired the ambition of many youngfans to one day play as professionalsthemselves on the field. But aseveryone knows, only practicemakes perfect. To provide juniorS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y19

PUTodayProduct Newssoccer players all over Germany withideal conditions for the necessarytraining, the German FootballAssociation (DFB) is investing EUR25 million in the construction of1,000 miniature playing fields. Toensure the safety of the players andreduce noise for neighbors, thefencing around the fields is madeof metal-faced sandwich panelsincorporating a polyurethane foamsystem from Bayer MaterialScience.In terms of funding, the project isthe largest in the DFB’s more than100-year history. Most of the playingfields are to be completed by theend of the year. The spokesman forthe project is former internationalAndreas Brehme, who scored thewinning goal for Germany in thefinal of the 1990 WorldChampionship.In accordance with DFBspecifications, each fieldencompasses an area of 13 by 20meters, plus a perimeter pathwayand access areas. The playersperform on new-generationartificial turf, with granulatedrubber infill and a flexible base layer.The fencing around the fieldcomprises panels with integratedgoals, on which high demands areimposed. They must withstandimpacts with players. Moreover, tosuit the needs of neighbors who areless enthusiastic about soccer, thematerial must also function as asound-absorber. Metal-facedsandwich panels have proven to bethe material of choice. Made of steelfacings and a polyurethane rigidfoam core, they are manufacturedfor this application by Fischer ProfilGmbH of Netphen-Deuz, Germany,a leading European manufacturer ofpolyurethane-based structuralcomponents for roofs and walls incommercial buildings. The entireorder amounts to a total surfacearea of 100,000 square meters. Thesystems for the polyurethane rigidfoam core are supplied by BaySystemsnÿ, the global partner forsystem solutions from BayerMaterial Science.Our foam system combinesreliable processing withoutstanding technical propertiesin the end product. The DFBproject depends not only on thehigh mechanical strength of thefoam, which is ensured in partby long-term bonding betweenthe foam and the steel, but alsoon the sound-absorbing effect ofthe system, explains IngoKellerhof, applications specialistfor metal-faced composites atBaySystems.Self-supporting polyurethane/metalsandwich panels were originallydeveloped for insulating largefacades and roofs in industrialbuildings. They have been put toeffective use in many segments ofthe building industry for more thanfour decades now. Surface-treatedsteel or aluminum sheets serve asthe visible facings, and these can beprofiled to increase their flexuralstrength and load-bearing capacity.When used as a facade, the profiledfacings simultaneously function asdesign elements and, together witha colored surface treatment, givedesigners great creative freedom.The sandwich panels are used inindustrial and commercialconstruction, as well as in coldstores, warehouses, exhibition halls,sports halls, office buildings andtransportation buildings (e.g.airports).Dr. Rolf Roers, head of CompositePanels Application Technology atBaySystems, considers the soccerproject to be an entirely new arenafor metal sandwich composites: Thisis just another example of the almostunlimited potential for developingnew polyurethane applications madepossible by the material’s versatility.Good products and successfulpartnerships in the market aredecisive in this context, and both areprovided by BaySystemsnÿ, the globalbrand name for our polyurethanesystems business.20 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Product NewsPUTodayHoneywell sells novel low-global-warmingblowing agent to European customersProduct used in energy-saving foam to seal around windows and doors, as well as in foamadhesives and aerosols, meets EU global warming regulatory requirementsMORRIS TOWNSHIP, N.J., Oct. 7,2008 – Honeywell (NYSE: HON)announced today it has begun sellingits low-global-warming blowing agentfor one-component foam and aerosolapplications in Europe. Honeywelllaunched the product and receivedclearance from the European Union toimport limited commercial quantitieslast year.The new blowing agent,hydrofluoroolefin HFO-1234ze, has zeroozone-depletion potential and meets EUregulatory requirements for reducingthe use of high global-warming-potential(GWP) substances. This fourth-generationtechnology from Honeywell is a directreplacement for hydrofluorocarbon R-134a in one-component foam andaerosol applications.The product enables one-componentfoam to expand in order to seal gapsand crevices around windows anddoors which can help home andbuilding owners save energy.“We are pleased to provide anenvironmentally superior and energyefficientsolution for foam and aerosolmanufacturers,” said Rene Mueller,managing director of Fluorine Productsin Europe, the Middle East, Africa andIndia. “We are committed to helping ourcustomers meet current and potentialregulatory requirements.”“Any replacement material mustmaintain or improve energy efficiencyand be a less potent greenhouse gas,”said Ian Shankland, technology leaderfor Honeywell’s low-GWP initiative.“Our next-generation blowing agentmeets these criteria while offeringsimilar performance properties as itspredecessor.”According to industry estimates, therewere more than 200 million cans ofone-component foam sold throughoutEurope in 2007. One-component foamis easily dispensed from a can andrequires no mixing.The blowing agent also serves as apropellant for aerosols, which are usedin a wide range of applicationsincluding warning systems and marinenavigation. Honeywell’s new HFO-1234ze was recently used in the airhorns at the Union of European FootballAssociations tournament, Euro 2008.Honeywell is a recognized, leadinginnovator in high-performance blowingagent technology for closed-cell foaminsulation and advanced energyefficiencyrefrigerants for heating,ventilation and air conditioning, as wellas other heat transfer fluid applications.Honeywell has consistently helpedmanufacturers replace ozone-depletingand global warming substances,improving the energy efficiency ofstationary air conditioning systems.Honeywell has ongoing research anddevelopment efforts to developenvironmentally superior solutions forcustomers around the world.Honeywell is a pioneer in developinghydrofluoroolefin (HFO) technology,which is the next generation, low-GWPproduct for blowing agent, propellantand refrigerant applications.Honeywell is currently partnering withthe global automobile industry tolaunch a low-GWP refrigerant solutionto replace R-134a.For more information about Honeywell’slow-GWP blowing agent, visit http://www51.honeywell.com/sm/lgwp-uk.Honeywell Specialty Materials, based inMorristown, N.J., is a $4.9 billion, globalleader in providing customers with highperformancespecialty materials, includingfluorine products; specialty films andadditives; advanced fibers and composites;intermediates; specialty chemicals;electronic materials and chemicals; andtechnologies and materials for petroleumrefining.Honeywell International is a $38 billiondiversified technology and manufacturingleader, serving customers worldwide withaerospace products and services; controltechnologies for buildings, homes andindustry; automotive products;turbochargers; and specialty materials.Based in Morris Township, N.J., Honeywell’sshares are traded on the New York, Londonand Chicago Stock Exchanges. Foradditional information, please visitwww.honeywell.com.This report contains “forward-lookingstatements” within the meaning of Section21E of the Securities Exchange Act of 1934.All statements, other than statements offact, that address activities, events ordevelopments that we or our managementintend, expect, project, believe or anticipatewill or may occur in the future are forwardlookingstatements.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y21

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Technical ArticlePUTodayINNOVATIVE PRODUCTION SYSTEM FOR TRACTOR ENGINE COVERS GOES INTO OPERATION AT HARITAWorld first: Inmould Painting of LFIparts goes into series productionM unich, August 4, 2008 – Anew inmould painting processto produce tractor engine coversrecently went into operation atHarita TVS Technologies Ltd.,Bangalore/India. The covers, madeof fibre-reinforced PUR in a LFIprocess, are given their high-glosssurface finish in the mould. Haritais the world’s first PUR processorto use this technique in seriesproduction. The companyproduces around 500 engine coversa month for the Tiger 10 tractormade by Same Deutz. The tractorsare currently made for the Indianmarket, but there are plans toexport them to China and Europe.The LFI process differs from otherPUR processes in that the long glassreinforcing fibres are wetted withthe PUR in the mixing head. Inrecent years, this technique hasproved a resounding success. Whatmakes the Harita system strikinglyinnovative is the fact that the highglosssurface to the LFI parts isachieved by spraying the paintdirectly onto the surface of themould. A barrier coat is appliedbetween the paint layer and theLFI substrate to prevent the glassfibres spoiling the smoothness ofthe paint surface.Successful endurance testSuccessful endurance tests – 12,000hours in agricultural operation –have shown that the engine coversare rugged and long-lasting. Theycan withstand temperatures up to100°C and have outstandingmechanical properties. The newproduction process has otheradvantages, for instance, exactcolour matching of the enginecovers and the injection mouldedfrontend, as well as the possibilityof integrating metal inserts in theproduction process.The commercial and utility vehicleindustry has shown huge interestin this innovative process fromKraussMaffei. Applications forinmould painting for LFI includeparts for buses, constructionmachinery, agricultural vehiclesand boat building.KraussMaffei company profileIn terms of sales, KraussMaffei isworld market leader in machinesand systems for plastics and rubberprocessing. With its three divisions– Injection Moulding Technology,Extrusion Technology and ReactionProcess Machinery – KraussMaffeiis a premium partner for theplastics and rubber processingindustries worldwide.In the 2006/2007 business year(year ending September 30), theKraussMaffei Group posted sales of950 million euros and bookedorders of over one thousandmillion euros. The group marketsits products under theKraussMaffei, KraussMaffei Berstorffand Netstal brands. TheKraussMaffei brand covers thewhole spectrum of injection andHarita has recently begun producingengine covers for the Same Deutz Tiger10 tractor in Bangalore/India using a newinmould painting for LFI process. Thecovers, made of fibre-reinforced PUR ina LFI process, are given their high-glosssurface finish in the mould.reaction moulding technology,while the KraussMaffei Berstorffbrand stands for successfulextrusion solutions. The Swisssubsidiary Netstal is firmlyestablished as a premium supplierof high-precision injectionmoulding machinery.With over 100 years’ of expertiseand know-how in machinery forplastics and rubber processing,KraussMaffei is today a majortechnology and process partner forindustry. The group offers a widerange of solutions that includesspecialized and fully integratedturnkey systems. Headquartered inMunich, the company employsaround 4000 people worldwide.Worldwide KraussMaffei operates anetwork of 140 subsidiaries andsales agencies, and deploys over570 service technicians, ensuringfast response and closeness tocustomers everywhere.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y23

PUTodayHealth & SafetyTHIS SERIES OF SHORT ARTICLES ON VARIOUS ASPECTS OF THE SAFE HANDLING OF MDIAND TDI HAS BEEN PROVIDED BY GLOBAL ISOCYANATES LIMITED (GIL). GIL IS A UK-BASEDSCIENTIFIC CONSULTANCY WITH MANY YEARS OF EXPERIENCE IN THE DIISOCYANATESINDUSTRY.NO REPRESENTATION, GUARANTEE OR WARRANTY IS MADE AS TO THE ACCURACY, RELIABILITYOR COMPLETENESS OF THIS TEXT OR THAT THE APPLICATION OR USE OF ANY OF THEINFORMATION, ANALYSIS, METHODS AND RECOMMENDATIONS HEREIN WILL AVOID, REDUCEOR AMELIORATE HAZARDS, ACCIDENTS, LOSSES, DAMAGES OR INJURY OF ANY KIND TOPERSONS OR PROPERTY. READERS ARE THEREFORE CAUTIONED TO SATISFY THEMSELVES ASTO THE APPLICABILITY AND SUITABILITY OF SAID INFORMATION, ANALYSIS, METHODS ANDRECOMMENDATIONS FOR THE PURPOSES INTENDED PRIOR TO USE.Dealing with fires involving MDI and TDIMDI and TDI do not catch fireor burn easily, but they maybe involved in a fire which isspread by other materials. Thesediisocyanates should be storedseparately from combustiblematerials or other fire hazards, sothat they will be protected in theevent of a fire.As shown in the table, the flashpoints and autoignitiontemperatures of MDI and TDI arerelatively high. Neitherdiisocyanate shows explosiveproperties.4,4’-MDIPMDI80/20 TDI 65/35 TDIMelting point o C 40 5 9.5 to 10 4Boiling range o C >300 >300 252 to 254 253 to 255Autoignition o C >601 >600 >595 >598Flash point * o C 211 208 132.4 128.3Explosivity Not Not Not Notexplosive explosive explosive explosive*Pensky-Martens closed cup methodSolvent grades of MDI have theirfire behaviour governed by the fireproperties of the solvent in whichthey are dispersed.Emergency actions if a fireoccurs• Evacuate the area• Inform management andemergency services• Use personal protectiveequipment• Use fire-fighting foam or water toextinguish the fire• Test the area for diisocyanateresidues• Evacuate the areaAs in any fire situation, all workers,except those dealing with theemergency, should be movedupwind of the fire to avoid inhalingthe smoke and fumes.• Inform management andemergency servicesEven if the fire does not involve thediisocyanate work or storage areas,the emergency services need to beinformed that diisocyanates arepresent on the site.• Use personal protectiveequipmentFire-fighters need to have fresh-airbreathing equipment and fullprotective clothing when dealingwith fires involving diisocyanates.• Use fire-fighting foam orwater to extinguish the blazeSmall fires involving MDI or TDIshould be extinguished using drychemical or carbon dioxide24 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Health & SafetyPUTodayappliances. If water is used itshould only be applied from a safedistance and in large quantities,for example, using hoses. Smallfires are preferably dealt with bythose site staff who have beentrained in dealing withemergencies.Large fires involving MDI or TDIshould be handled by fully trainedand equipped emergency services.Water-based protein or other firefightingfoams are effective inextinguishing such fires and also areuseful in suppressing any release ofdiisocyanate vapour. However, it ispreferable to use waterimmediately than to wait for foamto be obtained. If at all possible,the run-off water should becontained and disposed of suitablyto prevent environmentalcontamination.Metal drums of diisocyanate mayrupture with great force if heatedin a fire. If possible, any storeddrums should be cooled withwater, to prevent metal drumsrupturing and combustibleplastic containers degrading ormelting.• Test the area fordiisocyanate residuesAfter the fire is extinguished, andbefore work can be resumed, theair and surfaces must be tested tomake sure there is no diisocyanateremaining.Actions after a fire incidentA decision must be made on howto remove residual MDI or TDI. Thismay be very difficult if largequantities of material of unknowncondition are left. Both thediisocyanate manufacturer and thefire service may need to beconsulted. Small quantities ofdiisocyanates should beneutralized. Fire residues andcontaminated extinguishing watersshould be tested before disposal inaccordance with local regulations.All aspects of the involvement inthe fire of the diisocyanate shouldbe reviewed, to decide if furtherprecautions could be put in place.Whenever there are significantchanges to plant processes or tosite lay-out the fire safetyrequirements should be reviewed.The local fire service should begiven plans of the site showing theareas in which diisocyanates areused and stored.Sources of information onMDI or TDIFurther information on the fireproperties and behaviour of MDIand TDI can be obtained from theproduct suppliers.A book on all aspects of safehandling of MDI and TDI has beenwritten under the auspices of theInternational Isocyanate Institute:MDI and TDI: safety, health and theenvironment. Editors DC Allport, DSGilbert, SM Outterside. Wiley, 2003.Further details are available on :http://eu.wiley.com/WileyCDA/WileyTitle/productCd0471958123.htmlThe following websites containrelevant information:European Diisocyanate and PolyolProducers Association (ISOPA)http://www.isopa.orgAmerican Chemistry Council Centerfor the Polyurethanes Industryhttp://www.polyurethane.org/s_api/index.aspS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y25

PUTodayMarket SurveysACC issues polyurethane coatings, adhesives,sealants & elastomers market survey reportNAFTA Market Production, End-Use Consumption Historical Trends and StatisticsA RLINGTONON, , VA (Jululy y 8, 2008)– The Center for thePolyurethanes Industry (CPI) of theAmerican Chemistry Council (ACC)has issued a market survey reportdetailing production and enduseapplication statistics, historicaltrends, and issues for polyurethanecoatings, adhesives, sealants andelastomers (CASE) in the NorthAmerican Free Trade Agreement(NAFTA) countries. Excerpted fromthe 2006 End-Use Market Survey onthe Polyurethanes Industry in theUnited States, Canada and Mexicoissued last year, the 2006Polyurethane CASE Market SurveyReport analyzes significantproduction and usage trends forpolyurethane CASE materials in theconstruction, transportation,machinery, footwear, marine, tire,spandex and many otherindustries. “All four of thepolyurethane CASE material sectorsexperienced growth from 20042006as they continued to becomeimportant in a wide variety ofindustries,” said NeevaGayleCandelori, Director of CPI. “Thisdata will provide managers in theconstruction, transportation, tire,footwear and other industries withan analysis on how these specialtypolyurethane products continue togain ground and penetrate newapplications in North America. Italso details how production andenduse patterns were affected bytechnology, imports, supply anddemand, and a host of otherfactors as producers and endusersadjusted to global economicconditions and pressures.”The 2006 Polyurethane CASE MarketSurvey Report includes several graphsand charts detailing production andenduse statistics for each CASEspecialty by region, country, andindustry. Market reviews also areincluded in the 271page report. ThePolyurethane CASE Survey Report,as well as separate surveys of RigidPolyurethane Foams and FlexiblePolyurethane Foams, are availablefor purchase atwww.americanchemistry.com/polyurethane. The cost for CPImembers is $500; Non-members is$750. For further information,contact NeevaGayle Candelori, CPIat (703) 7415103.www.americanchemistr.americanchemistry.com.comThe American Chemistry Council(ACC) represents the leadingcompanies engaged in the businessof chemistry. ACC membersapply the science of chemistry tomake innovative products andservices that make people’s livesbetter, healthier and safer. ACC iscommitted to improvedenvironmental, health and safetyperformance through ResponsibleCare ® , common sense advocacydesigned to address major publicpolicy issues, and health andenvironmental research andproduct testing. The business ofchemistry is a $664 billionenterprise and a key element ofthe nation’s economy. It is one ofthe nation’s largest exporters,accounting for ten cents out ofevery dollar in U.S. exports.Chemistry companies are amongthe largest investors in researchand development. Safety andsecurity have always been primaryconcerns of ACC members, andthey have intensified their efforts,working closely with governmentagencies to improve security and todefend against any threat to thenation’s critical infrastructure.www.americanchemistr.americanchemistry.com/.com/polyurethaneThe Center for the PolyurethanesIndustry of the AmericanChemistry Council promotes thesustainable growth of thepolyurethaneindustry, consistent with theprinciples of Responsible Care ® ,by identifying and managing issuesthat could impact the industry, incooperation with user groups. Itsmembers are U.S. producers ordistributors of chemicals andequipment used to makepolyurethane or are manufacturersof polyurethane products. Thebusiness of polyurethanes is a$56.1 billion enterprise, supportsabout 220,000 jobs and a keyelement of the nation’s economy.26 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Market SurveysPUTodayACC issues polyurethane flexible foammarket survey reportNAFTA Market Production, End-Use Consumption Historical Trends and StatisticsA RLINGTONON, , VA (Jululy y 8, 2008)– The Center for thePolyurethanes Industry (CPI) of theAmerican Chemistry Council (ACC)has issued a market survey reportdetailing production and enduseapplication statistics, historicaltrends, and issues for polyurethaneflexible foams in the NorthAmerican Free Trade Association(NAFTA) countries. Excerpted fromthe 2006 End-Use Market Survey onthe Polyurethanes Industry in theUnited States, Canada and Mexicoissued last year, the 2006 FlexiblePolyurethane Foam Market SurveyReport analyzes significantproduction and usage trends forflexible slabstock and flexiblemolded foam in the furniture,bedding, and transportationmarkets, as well as a section onFlooring Underlay/Rebond Foam.“Although production of moldedfoam polyurethane productsincreased from 2004-2006, flexibleslabstock volume declinedthroughout NAFTA,” saidNeevaGayle Candelori, Director ofCPI. “This data will providemanagers in the furniture,bedding, transportation, andflooring industries details on thestrong and resilient flexible foamindustry in North America. It alsodetails how production andenduse patterns were affected bytechnology, imports, naturaldisasters, disruption in supply anda host of other factors ascompanies adjusted to globaleconomic conditions andpressures.”The 2006 Flexible Polyurethane FoamMarket Survey Report includesseveral graphs and charts detailingproduction and enduse statistics byregion, country, industry and, insome cases, subsectors withinindustries. An extended enduseanalysis section for furniture andbedding is also included in the195page report. The FlexiblePolyurethane Foam Market SurveyReport, as well as separate surveysof Rigid Polyurethane Foams andPolyurethane Coatings, Adhesives,Sealants & Elastomers are availablefor purchase atwww.americanchemistry.com/polyurethane. The cost for CPImembers is $500; Non-members is$750. For further information,contact NeevaGayle Candelori, CPIat (703) 7415103.www.americanchemistr.americanchemistry.com.comThe American Chemistry Council(ACC) represents the leadingcompanies engaged in the businessof chemistry. ACC membersapply the science of chemistry tomake innovative products andservices that make people’s livesbetter, healthier and safer. ACC iscommitted to improvedenvironmental, health and safetyperformance through ResponsibleCare ® , common sense advocacydesigned to address major publicpolicy issues, and health andenvironmental research andproduct testing. The business ofchemistry is a $664 billionenterprise and a key element of thenation’s economy. It is one of thenation’s largest exporters,accounting for ten cents out ofevery dollar in U.S. exports.Chemistry companies are amongthe largest investors in researchand development. Safety andsecurity have always been primaryconcerns of ACC members, andthey have intensified their efforts,working closely with governmentagencies to improve security and todefend against any threat to thenation’s critical infrastructure.www.americanchemistr.americanchemistry.com/.com/polyurethaneThe Center for the PolyurethanesIndustry of the AmericanChemistry Council promotes thesustainable growth of thepolyurethane industry, consistentwith the principles of ResponsibleCare ® , by identifying andmanaging issues that could impactthe industry, incooperation with user groups. Itsmembers are U.S. producers ordistributors of chemicals andequipment used to makepolyurethane or are manufacturersof polyurethane products. Thebusiness of polyurethanes is a$56.1 billion enterprise, supportsabout 220,000 jobs and a keyelement of the nation’s economy.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y27

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Market SurveysPUTodayACC issues polyurethane rigid foam marketsurvey reportNAFTA Market Production, End-Use Consumption Historical Trends and StatisticsA RLINGTONON, , VA (Jululy y 8, 2008)– The Center for thePolyurethanes Industry (CPI) of theAmerican Chemistry Council (ACC)has issued a market survey reportdetailing production and enduseapplication statistics, historicaltrends, and issues for rigidpolyurethane foam in the NorthAmerican Free Trade Agreement(NAFTA) countries. Excerpted fromthe 2006 End-Use Market Survey onthe Polyurethanes Industry in theUnited States, Canada and Mexicoissued last year, the 2006 RigidPolyurethane Foam Market SurveyReport also details significanthistorical usage trends in theconstruction, appliance,packaging, marine, decorative,transportation and industrialmarkets.“Rigid polyurethane foam is acritical material in the NorthAmerican construction, appliance,packaging and transportationmarkets, among others,” saidNeevaGayle Candelori, Director ofCPI. “This data will providemanagers in these industries andother interested parties detailedanalysis of the resilient and healthyNorth American rigid polyurethanefoam industry, despite a 6.2percent decline in North Americanrigid foam production from20042006. They also will want tounderstand how enduse andproduction patterns are shifting ascompanies adjusted to globaleconomic conditions andpressures.”The 2006 Rigid Polyurethane FoamMarket Survey Report includesseveral graphs and charts detailingproduction and enduse statistics byregion, country, industry and, insome cases, subsectors withinindustries. Extended enduseanalysis sections for construction,automotive and refrigeration alsoare included in the 173page report.The Rigid Polyurethane FoamMarket Survey Report, as well asseparate surveys of FlexiblePolyurethane Foams andPolyurethane Coatings, Adhesives,Sealants & Elastomers are availablefor purchase atwww.americanchemistry.com/polyurethane. The cost for CPImembers is $500; Non-members is$750. For further information,contact NeevaGayle Candelori, CPIat (703) 7415103.www.americanchemistr.americanchemistry.com.comThe American Chemistry Council(ACC) represents the leadingcompanies engaged in the businessof chemistry. ACC membersapply the science of chemistry tomake innovative products andservices that make people’s livesbetter, healthier and safer. ACC iscommitted to improvedenvironmental, health and safetyperformance through ResponsibleCare ® , common sense advocacydesigned to address major publicpolicy issues, and health andenvironmental research andproduct testing. The business ofchemistry is a $664 billionenterprise and a key element ofthe nation’s economy. It is one ofthe nation’s largest exporters,accounting for ten cents out ofevery dollar in U.S. exports.Chemistry companies are amongthe largest investors in researchand development. Safety andsecurity have always been primaryconcerns of ACC members, andthey have intensified their efforts,working closely with governmentagencies to improve security and todefend against any threat to thenation’s criticalinfrastructure.www.americanchemistr.americanchemistry.com/.com/polyurethaneThe Center for the PolyurethanesIndustry of the AmericanChemistry Council promotes thesustainable growth of thepolyurethane industry, consistentwith the principles of ResponsibleCare ® , by identifying andmanaging issues that could impactthe industry, in cooperation withuser groups. Its members are U.S.producers or distributors ofchemicals and equipment used tomake polyurethane or aremanufacturers of polyurethaneproducts. The business ofpolyurethanes is a $56.1 billionenterprise, supportsabout 220,000 jobs and a keyelement of the nation’s economy.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y29

PUTodaySpecial FeatureIntroductionThis publication summarises thevalue of the polyurethanesindustry, based on aromaticdiisocyanates and associatedpolyols, to the European economy.The data contained in it has beenproduced by an independentconsultant during the first half of2003 looking back at the status ofthe industry in 2002.This project was commissioned byISOPA so that it could communicatethe contribution of the industry toa range of stakeholders. Theconsultant’s brief included theinvestigation of the industry alongthe entire value chain from thechemicals suppliers to their directcustomers and then to the finalproducers of consumer goods. Inaddition, the study includes theassociated but indirect industryincluding service providers such asthe logistics and maintenancecompanies.SummaryThis publication shows that,starting from a modest number ofchemical suppliers, a vast range ofEuropean industry is served and it,in turn, provides, essential goodsand articles for consumers inEurope and, through exports, toconsumers further afield. Thearomatic diisocyanates and polyolsindustry serves nine major sectorsand information is given for eachof these. There are additionalsectors, such as toys and leisureapplications, which are notexplicitly in this publication. Someof these are of greater significancein other manufacturing centressuch as China.Summarising the key parametersfor the industry value chain basedon aromatic diisocyantes andassociated polyols• Involves more than 23,500companies most of which areSMEs• Employs well over 800,000workers• Generates a market value ofnearly •130 billion.In addition, the associated butindirect activities involve morethan 71,000 companies employingabout 2,040,000 people.It is important to note that themajority of companies in thepolyurethane industry are smalland medium-sized enterprises(SMEs).The significant end-use applicationsinclude infrastructure and buildingproducts such as insulation panels,coatings and adhesives plusbinders for forest products.Polyurethanes are key componentsfor refrigerators and freezersautomobiles, furniture and shoes.30 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Special FeaturePUTodayThe key property of polyurethanechemistry is its extreme versatilityand the end properties includesuperb insulation, extremeadhesion, high comfort and adurability that surpases most othersynthetic or natural materials.A summary of the key parametersfor each stage in the value chain isgiven in the table below:A note on ISOPAISOPA, the European Diisocyanatesand Polyol Producers Association,was founded in 1987 and it providesa forum for the industry’sstewardship of the developmentand use of raw materials which arefundamental to the manufactureof polyurethanes. It is committedto encouraging dialogue withEuropean institutes andgovernment and to explaining theindustry and polyurethanes’ socialenvironmental and economiccontribution to modern life.ISOPA’s approach is based oncombining the extensive technicaland scientific expertise of itsmembers together with those ofthe International IsocyanateInstitute (III). It uses these skills andknowledge to continuouslyimprove the environmental, healthand safety standards relating to theuse of aromatic diisocyanates andpolyols and provides qualityinformation to the industry and itsproducts to all stakeholders.ISOPA is a non-profit makingassociation and is an affiliatedorganisation of the EuropeanChemical Industry Council (Cefic) –which in turn represents the widerchemical industry at Europeanlevel.ISOPA’s members are Bayer, Dow,Elastogran (BASF Group),Huntsman, Repsol and Shell.The Chemical ProducersThe polyurethane value chainstarts with the comparatively fewmajor suppliers of the aromaticdiisocyanates, MDI and TDI and/orassociated polyols. Themanufacturers of MDI and TDI inWestern Europe are all members ofISOPA as are the largest producersof polyether polyols. Some of theISOPA members also manufacturepolyester polyols. Many of theseproducers are also back-integratedand produce the intermediates formaking the diisocyanates andpolyols.There are also other manufacturersof polyols, both polyethers andpolyesters, plus two aromaticsdiisocyanate manufacturers, one inPoland and another in Hungary.Most of the ISOPA membercompanies also operate systemshouses whose role is to producetailor-made formulations. Thereare also a number of independentsystem houses who produceformulations and prepolymers(diisocyanates) which are aimed atspecialist applications. Some of thesystem houses produce prepolymersand formulations which aretailored for specific sectors such asadhesives or coatings.The table below includes all thearomatic diisocyanate and polyolproducers as well as the systemhouses.Sector Snapshot – Adhesivesand SealantsAdhesivesDiisocyanates and polyurethanesare so versatile that they are alsoavailable as top quality glues thatThe value chain is illustratedin this figure:S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y31

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Special FeaturePUTodaycan bind together quite differentmaterials such as wood, rubber,cardboard or glass. Constructionprojects benefit particularly fromthese qualities of the products.Packaging and exterior furniture,which need resilience and strength,often rely on polyurethaneadhesives. Diisocyanates andpolyurethanes help produce new,useful applications from usedmaterials. For instance, end-of-usevehicles tyres can be made intochildren’s playgrounds, sportstracks or stadia surfaces thanks topolyurethanes’ adhesive qualities.SealantsSealants prevent liquids fromentering or escaping through gapsand crevices. Polyurethanes aretough and used, for example, inharsh climatic conditions toprotect windows or in theconstruction sector on concreteexpansion joints and as preformedgasket seals in the automotivesector. These are also used inelectrical and electronicequipment to prevent moistureentering items such as joints andswitchgear.Sector Snapshot – AppliancesPolyurethane rigid insulating foammakes a major contribution topreserving food through the foodchain from production, todistribution and finally to thedomestic kitchen. The domesticrefrigerator and freezer is anessential appliance today.Polyurethane rigid foams areexcellent insulators, inhibiting theunwanted movement of heat orcold while being light and needinglittle space. Almost all refrigeratorsand freezers produced in the worldare insulated with these foams andthis enables the amount of foodstored to be maximized.These appliances are now designedto use less energy, thus benefitingthe environment and cost less tooperate. The contribution of theinsulating foam means that evermore stringent energy standardscan be met and the benefits passedonto the consumer.The processing versatility and thestrength of polyurethane rigidfoam results in appliances whichare can be automated processesand are light and strong.Sector Snapshot – AutomotiveWe drive more safely andcomfortably today thanks topolyurethanes. As foams for carseats, headrests and othercomponents in the passengerS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y33

PUTodaySpecial Featurehave opened up new opportunitiesto use different types of materialstogether. As highly versatile glues,they can bind together wood,rubber and recycled materialseasily and safely in imaginativeways.cabin, polyurethanes help reduceinjury in case of collision. As soundinsulation they dampen vehiclenoise by 50% more than traditionalmaterials such as bitumen sheet orfelt fibre. Vibration is cut down bypolyurethanes too, giving a morepleasant and less tiring drive. Inuse, polyurethane applicationsreduce vehicle weight and,consequently, fuel consumptionand emissions to the atmosphere.At end of life, polyurethanecomponents can be recycled,helping to conserve resources.Sector Snapshot – BindersThe binding qualities ofdiisocyanates and polyurethanesApplications include high qualityboards to make cupboards, worksurfaces and kitchen floorings.Similarly, diisocyanates can be usedto bind together used foamcrumbs to make carpet underlays.The steel industry usesdiisocyanates as the basis forbinders to make moulds forcasting.Sector Snapshot – Building &ConstructionThe construction industry usespolyurethane rigid foams (PUR)extensively in residential,commercial and institutionalbuildings. The most importantapplication is insulation to preventheat transfer, which equally means,for example, keeping heat inbuildings in cold climates, keepingheat out in warm climates orkeeping food stores cool.Buildings last longer and with lessmaintenance because of PUR’sdurability. Rigid composite panelswith PUR cores are light but strong,moisture-resistant and easy toinstall.Due to its insulation value, PURreduces space requirements forwalls and roofs and, hence,maximises internal volume. This isespecially important when existingbuildings are being renovated toimproved insulation standards.PUR spray foam is particularlyversatile and efficient for theupgrading of existing buildingsPUR is a superb insulator. Inbuildings PUR can reduce fuel costsand help conserve energy. It isestimated that insulation ofbuildings to optimal standardscould reduce global CO2 emissionsby 20%.34 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Special FeaturePUTodayMany of the companies in theconstruction industry are SMEswho have particular skills andexperience in using polyurethanebased construction products.bridges and motorway structuresto steel railway carriages andwagons to wooden furniture.The applications include rollersand belt for carrying minerals inquarrying operations, wheels forroller-blades and hospital trolleys,the rollers for printing processesand hoses and other componentsin automotive, under-the-bonnet,applications.Sector Snapshot – CoatingsModern coatings protect theexposed surfaces of many differentproducts, helping to make themlast longer and look better. TheSector Snapshot – ElastomersPolyurethane elastomers are usedin a very wide range ofapplications. Most of these are inthe engineering field where theirproperties of durability, abrasionresistance and chemical and oilresistance are needed.durability, corrosion and weatherresistance of polyurethane makethem suitable for coatings onsurfaces of all kinds - from steel andconcrete to wood and othercellulose materials.The applications range fromconcrete constructions such asSector Snapshot – FootwearGood footwear is comfortable,long-lasting, appropriate for usage- and sold at the right price.Polyurethanes let designers meetall these objectives. Light buthighly abrasion resistant,polyurethanes are perfect for hardwearingshoe soles which lastlonger than traditional materials.Polyurethane soles are practicaland keep water out but do notconstrict the imagination onS E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y35

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Special FeaturePUTodayPolyurethane foams adapt to andsupport the body. This is why wefeel better for longer andexperience less fatigue if chairs andbeds use polyurethane foams.Polyurethane flexible foams aresoft yet give support, are durableand keep their shape. They are anWhen asleep the human body loseswater through perspiration.Combined with heat, this canstimulate micro-organisms to grow.Polyurethane foams help preventsuch problems because their opencellular structure allows goodabsorption of humidity, ventilationand heat transfer. For this reason,design. Within the sectorpolyurethanes are used for a widerange of footwear types.Perhaps best known for sports andathletics shoes and boots, they arealso widely used for business/fashion shoes soles and for durablefootwear for work safetyapplications.hospitals recommendpolyurethane mattresses.More rigid but still pliantpolyurethane elastomers are usedfor the armrests of, for example,office and institutional chairs.Sector Snapshot – Furnitureand BeddingModern homes, offices andcommunal buildings would bemuch duller and far lesscomfortablewithoutpolyurethanes.excellent filling material for seatingcushions and mattresses and canbe produced to the density themanufacturer requires. Theirversatility allows the designers touse the full scope of theirimaginations.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y37

PUTodayPreviews & ReportsPU Summit / PU China / Utech Asia 2008A Report by the Secretary of IPuAThe Second International PuSummit was held on 1-2September 2008 at the RenaissanceHotel, Pudong, Shanghai China.The summit was organized inassociation with the InternationalPU Magazine, Germany.The topics covered in the summitwere• Global Challenges in the PUindustry• 20 years of ISOPA• Climate Protection• China PU Market• BDO Market• Adipic Acid Market• Rigid Foam Developments• TPU Market Overview• Indian PU Market Scenarioand TrendsThe Indian Pu Market paper waspresented by our ChairmanMr. Rahul Gautam and was very wellreceived – the interest in India isenormous especially after our megaevents PU TECH 2005 & 2008. Severalqueries were raised and replied to.The summit was attended by about100 delegates drawn from China,Japan, Korea, India, Australia,South Africa, Thailand etc.It served an important purpose inbringing the Asian Pu industryfraternity closer to each other andto explore inter developments.PU CHINA / UTECH ASIA 2008PU CHINA 2008 was a well organizedaffair as usual. There were over 115exhibitors – both international aswell as Chinese Exhibitors.We could notice a very strongmanufacturing presence of theMNC’s in China and almost all leadplayters have a manufacturing basein China and are expanding theiroperations.Our Chairman and self had fruitfulinteractions with ISOPA SecretaryGeneral Dr. Wolfram Frank –discussed on the synergies betweenour two organizations and decidedto enhance the cooperationbetween ourselves so that the IndianPu industry gains from theinternational expertise of ISOPA.Ms. Neeva Gayle Candelori –director centre for polyurethaneindustry, american chemistrycouncil, arlington, usa they havepromised to keep us informed abouttheir events and requested us toparticpate – we in turn requestedtheir cooperation in technicalarticles etc for our magazine.Mr. Ken Usami, chairman, japan PUAssociation – here again theyrequested we particpate inregional meetings of the variousPU associations in the region – likeKorea, Japan, China etc and assuredus of cooperation in growing theIndian Pu industry.A contingent of about 60 Indianmembers also visited the Eventand the feed back from them is38 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

Previews & ReportsPUTodaythat the event was a big learningexperience and they are goingback to india with more awarenessin all the sectors.All in all the event was a memorableone where relationships werefurther strenghthened.All exhibitors were requested toparticipate in our next event PUTECH 2011 - all exhibitors/visitorswho had come to PU TECH 2008also expressed their happiness atour event and confirmed that indiawould be the next fastest growingcountry.Huntsman and Nestaan take ‘Walk the Talk’ initiativeto Benelux sprayers15 September 2008E verberg, Belgium – MDIproducerHuntsman andsystems house Nestaan Hollandjoined forces twice this year to trainmore than 40 polyurethanesinsulation sprayers from Belgiumand the Netherlands on the safehandling and usage of MDI.The training sessions were basedclosely on the European Di-Isocyanate and Polyol Producers’Association’s (ISOPA) ‘Walk the Talk’product stewardship programmefor MDI users, which was firstlaunched in 2006.The meetings covered not onlyessential information on MDI’schemical and physical properties andEHS data, but also safe and unsafehandling behaviours, recommendedpersonal protective equipment/workplace measures and emergencyprocedures in case of spillage.Kay Hennekens, Managing Directorof Nestaan Holland said: “Thepolyurethanes sprayers we supplyhandle and use our isocyanates andpolyols every day at constructionsites across the Benelux region andit is essential that they be fullyaware that with properprecautions they can operate incomplete safety.”Gwendolien Fonck, BusinessManager Systems Houses forHuntsman’s polyurethanes divisionadded: “We are pleased to assistNestaan to take downstream totheir customers a training moduledeveloped by our upstreampolyurethane raw materials tradeassociation - with this ‘multiplier’effect we can ensure that accurateinformation on the safe handlingand use of MDI travels effectivelydown to end markets.”About Nestaan Holland:Founded in 1968, Nestaan Hollandis a leading Dutch polyurethanessystems house, as well as aproducer of rigid polyurethane andpolyisocyanurate block foam. Thecompany’s main products include:formulated blends of raw materialsfor all types of applications as wellas two-component PU adhesivesand PU and PIR block foamproducts. Nestaan Holland isheadquartered at Tholen in theNetherlands. For furtherinformation about NestaanHolland, please visit the company’sweb site www.nestaan.nlAbout Huntsman:Huntsman is a globalmanufacturer and marketer ofdifferentiated chemicals. Itsoperating companies manufactureproducts for a variety of globalindustries, including chemicals,plastics, automotive, aviation,textiles, footwear, paints andcoatings, construction, technology,agriculture, health care, detergent,personal care, furniture, appliancesand packaging. Originally knownfor pioneering innovations inpackaging and, later, for rapid andintegrated growth inpetrochemicals, Huntsman todayhas 13,000 employees and operatesfrom multiple locationsworldwide. The Company had2007 revenues of approximately$10 billion. For more informationabout Huntsman, please visit thecompany’s website atwww.huntsman.com.Forward Looking Statement:Statements in this release that are not historicalare forward-looking statements. Thesestatements are based on management’scurrent beliefs and expectations. The forwardlookingstatements in this release are subjectto uncertainty and changes in circumstancesand involve risks and uncertainties that mayaffect the company’s operations, markets,products, services, prices and other factors asdiscussed in the Huntsman companies’ filingswith the U.S. Securities and ExchangeCommission. Significant risks anduncertainties may relate to, but are not limitedto, financial, economic, competitive,environmental, political, legal, regulatory andtechnological factors. In addition, thecompletion of any transactions described inthis release is subject to a number ofuncertainties and closing will be subject toapprovals and other customary conditions.Accordingly, there can be no assurance thatsuch transactions will be completed or thatthe company’s expectations will be realized.The company assumes no obligation toprovide revisions to any forward-lookingstatements should circumstances change,except as otherwise required by applicablelaws.S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y39

PUTodayBook ReviewThe 8th Habit: Fromeffectiveness to greatnessIt is 18 years since Stephen Coveypublished his seminal work “The7 Habits of Highly Effective People”,which had a huge impact, sellingmillions of copies across the globe.In that book, Dr Covey showed ushow to become as effective as wepossibly could be. In the 8th Habit,he opens up more potential for usall – by moving from “effectivenessto greatness”. The world today isdifferent, with more challenge,ambiguity and complexity andwhile the 7 Habits form a strongbasis upon which to start, it is thisnext step – the 8th Habit –that willtake us to true fulfillment in whatCovey describes as the age of theknowledge worker.The book’s synopsis promises thatThe 8th Habit is the answer to theyearning for greatness, theorganization’s imperative forsignificance and superior results,and the human’s search for its“voice”. There are some handy tipsto be found in the book. The bookis divided into two sections. Thefirst focuses on “finding your voice”and the second on “inspiring othersto find theirs”.Finding your voiceThe essence of this habit is thatyou will find your voice when youcan say you are 100% involved withwhat you are doing in your life, sothat your body, mind, heart andspirit are all engaged in whateveris important to you. To find yourvoice, you need to examine yournatural talent, what you absolutelylove to do, what really interestsyou. And you must listen to theconfirming inner voice of yourconscience that tells you what theright thing to do is.Covey says that the reality inbusiness today is that there aremany people who have not foundtheir voices or have lost theirvoices. We see this every day –people go to work to serve their“bodily” needs, but do not reallyput their creativity, talent andintelligence into the job. Very true– and losing your voice is a goodmetaphor for understanding – thequestion of course is; how do weget our voice back?Inspiring others to find theirvoiceWhen you have found your voice,you can begin inspiring others todo the same – this is really aboutleadership. Great leaders havealways inspired people to be selfaware, to find themselves and tofind their voice – that is the essenceof greatness. People andorganizations who have truly foundtheir voices go on to become great.Covey says that an organizationwith great leaders (who live the 4leadership roles of modeling, pathfinding, alignment andempowering) and great people(who have discovered their giftsand their voice) has hit the “sweetspot” – where the greatestexpression of power and potentialhappens.The 8th Habit contains summariesof the material from his otherAuthor(s): Stephen CoveyPublishers: Simon & SchusterEdition: 2004ISBN: 0743206827Revieviewed by: Gill McKay,Director, Extensor LimitedRating: 000.00books. If you have not already readthe 7 Habits, I would stronglyrecommend you to read it beforetackling this book. It is betterwritten, in a manner which is easierto follow and each of the habits isdescribed in a way which makesthem easier to understand in thecontext of each of the other habits.40 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

PUTodayA D V E R T I S E M E N T T A R I F FAdvertisement1 Issue 2 Issues 4 IssuesBack Cover 14,000.00 13,000.00 12,000.00Inside Front Cover 10,000.00 9,000.00 8,000.00Inside Back Cover 10,000.00 9,000.00 8,000.00Full Page Colour 8,000.00 7,500.00 7,000.00Half Page Colour 5,000.00 4,500.00 4,250.00Quarter Page 3,000.00 2,750.00 2,500.00Special Feature (2 pages) 10,000.00Each Additional Page 4,000.00S E P T E M B E R 2 0 0 8P O L Y U R E T H A N E S T O D A Y41

PUTodayEvents & TrendsOct 22-24, 2008JEC Asia 2008As part of its activity to promotethe use of composite materialsand solutions worldwide, the JECGroup, organiser of the JEC showis announcing a new compositeevent to be held in Singapore.Nov 11-13 Nov, , 2008Feipur & FeiplarComposites Latin America2008The most important trade fairsabout the composites andpolyurethane markets of LatinAmerica, Feipur 2008 & FeiplarComposites 2008, take placeEvents CalendarINTERNATIONALfrom 11 – 13 November 2008 inSão Paulo, Brazil.PU Latin America 2008Final dates not set, dates &venue to be announcedPDA Europe 2008Annual ConferenceAustria Trend ParkhotelSchonbrunn, ViennaContact - Dana Popp: pdaeurope@kelleneurope.comTel. +32 2774 9611Fax. +32 2774 9690March 31-April 02, 2009UTech Europe 2009MECC, Maastricht, TheNetherlands Contact CrainCommunications Ltd.Tel. +44 20 7457 1400Fax. +44 20 7457 1440email: pmitchell@crain.comconf contact UTECH-2009@crain.com5-7 May 2009Polyurethanes 2009Technical ConferenceenceFort Washington, MD (Wash., DCArea)42 P O L Y U R E T H A N E S T O D A YS E P T E M B E R 2 0 0 8

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PUTodayFOR 44 PRIVATE P O TE L Y CIRCULATION U R E T H A N E ONLY. S T OEdited D A Y by Ms Medha Bhuta Published by K. Ramamurthy for Indian S EPolyurethane P T E M B E R 2Association0 0 8Printed by