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[title] => A Q&A With Real Milk Paint Company Founder Dwayne Siever
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[body] => Coatings World recently spoke with the founder of the Real Milk Paint Company, Dwayne Siever.
Here's a look at the conversation, which covers the company's history, the milk paint creation process and more:
Coatings World: Where did the idea come from to begin experimenting with/using milk paint and starting The Real Milk Paint Co.?
Dwayne Siever: "Before the inception of Real Milk Paint Co, I repaired antique furniture in Pennslyvania.
"Much of the furniture was polychrome painted by Germanic influence in that area. Trying to match handmade paints with modern paint drove me to frustration. I started to research through old formula books on how paint was made.
"Milk paint provided the matte flat rich paint I needed to match the antique furniture.
"I then launched a company called D.O. Siever Products that sold pigment powders. On the back of the brochures was a formula for making milk paint from scratch. Customer feedback indicated that they had no time to make the paint. So after a year of experimenting with dry powder formulas, I developed the formula we use today. [After] we sold $1,000 worth of paint at our first outdoor show, I knew I was on to something.
CW: What sets milk paint apart from other paint types?
Siever: "It is natural, has little to no odor, [and] no off gassing when painting or after drying. It can be 100 percent disposed in the garden or yard and will benefit the soil."
CW: What is the process for creating milk paint?
Siever: Liquid milk paint – from scratch – is made by adding acid (vinegar) as rennet to milk to get the curd out. This is hung to dry in cheesecloth. Then lime is added to make the curd dissolve. When that process is complete pigment color is added. Then you are ready to paint."
CW: How long does the process take?
Siever: About 2 to 3 hours to make from scratch.
CW: What are the benefits of milk paint?
Siever: "Milk paint is safe for you, your pets, and the planet. It has a unique bold, bright look that is unmatched by modern paint. Modern paints sit on top of a surface and can look plastic and heavy. Real Milk Paint is thin yet full of color, allowing surface details to show."
CW: What are the best applications for milk paint?
Siever: "Any porous surface: Wood, stone, concrete, stucco, plaster."
CW: How do you get the different hues?
Siever: "Real Milk Paint is colored by iron oxides. You can see iron oxide on the roadside in rock face, yellows and reds."
CW: Where can one purchase Real Milk Paint?
Siever: "Real Milk Paint can be found at over 350 U.S. retailers and also in Spain and [across] Europe."
CW: How did the business grow and how much has changed since 1995 (when RMP was founded)?
Siever: Real Milk Paint Co. grew up in the internet age. I traded my first website for a refinished mahogany end table.
"The internet was way simpler then. Search engines would actually beg for URL listings so they could be the biggest.
"We have transitioned through four packaging designs. We started with only 10 colors and we now have 55. The world has become much smaller since 1995, however our formula and commitment to making the best and safest products has not."
Real Milk Paint Co. is based in Hohenwald, Tenn. The company is on Facebook, Pinterest, Instagram, YouTube, and Twitter.
Photo and video courtesy Real Milk Paint Co.
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[title] => 2018 Top Companies Report Countdown: No. 1 PPG
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[summary] => Once again, Coatings World brings the industry our Top Companies Report.
[slug] => 2018-top-companies-report-countdown-no-1-ppg
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[title] => NSF Sustainability: Reducing GHG Emissions—Satisfying the Environment, Your Customers & Your Budget
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[body] => Amid an increasing trend toward setting and meeting aggressive sustainability targets, organizations are scrambling to navigate the complex challenge of quantifying and mitigating their impacts while meeting their customer and investor demands.
Frequently, these targets include reducing greenhouse gas (GHG) emissions. While regulatory action is stalled in many parts of the world, companies are leading the way to reduce their climate impact – some even setting goals according to the Science Based Targets initiative (SBTi), which aligns emission reduction targets with the 2015 Paris Climate Agreement to keep the global temperature rise below 2 degrees Celsius.
These commitments are not born of altruism alone. Long-term business sustainability – and risk mitigation – drive many organizations to invest resources toward combating climate change. Undertaking these initiatives may also boost the bottom line, as environmental concerns continue to permeate mainstream consumer and investor preferences. Approximately 90 percent of consumers are likely to switch to more sustainable brands given comparable price and quality, and more than one out of every five dollars under professional management in the United States was invested in sustainable strategies in 2016 (an increase of 33 percent from 2014).1,2
However, setting and achieving goals around GHG reduction is not always straightforward. While quantifying emissions from owned operations is the easiest place to start, often a company’s greatest climate impact occurs outside its four walls. Emissions from the supply chain, distribution, consumer use, investments and product end-of-life can represent a much larger carbon footprint – and a much more complex challenge to address.
More information about quantifying sustainability impacts and setting successful sustainability goals is detailed in a recent NSF International white paper.
For those unfamiliar with carbon accounting, GHG emissions are categorized into three scopes:
• Scope 1 represents direct emissions from sources that are owned or controlled by a company (e.g., natural gas combustion in a company facility).
• Scope 2 emissions are indirect emissions from sources that are owned or controlled by a company, such as those that result from the generation of electricity, heat or steam purchased by the company from a utility provider.
• Scope 3 emissions result from sources not owned or directly controlled by a company but related to its activities. Scope 3 includes activities such as employee travel, shipping, procurement, product use, waste disposal and wastewater treatment.
For those just getting started on their sustainability journey, conducting an inventory for Scope 1 and Scope 2 emissions is a logical place to start. However, leading organizations understand that larger strides can be made by quantifying impacts within Scope 3 and developing strategies to address them.
AkzoNobel: In 2017, AkzoNobel reduced CO2 emissions by 100,000 tons. It was able to achieve this drastic reduction by implementing a new bio-steam facility, a combined heat and power (CHP) plant that provides both electricity and steam from renewable biomass. The company has publicly set goals of being carbon neutral and using 100 percent renewable energy by 2050.3
PPG: Not all reductions are associated with energy use reductions. PPG, at its Milan operations, cut transportation-related CO2 emissions 76 percent in 2017 by switching to intermodal shipping jnk. Rather than exclusively using trucks for distributing products, intermodal transport takes advantage of energy-efficient trains for long-distance shipping, with trucks used for short distances and intermediate travel. This move saved PPG 615 metric tons of carbon dioxide equivalent (CO2e) emissions and nearly $390,000 annually in transportation costs.4
While GHG quantification and management can be a challenge, the trends are clear that customers, investors and consumers are calling for private sector action on climate change. Whether you are just starting out or are further along in your journey, you don’t have to navigate alone. Third-party resources and sustainability experts can help you conduct and verify a GHG inventory, benchmark against your competitors, set goals and take steps to achieve them.
Diana Bach
1Ecovadis. Building the Business Case for Sustainable Procurement: A 5-Step Guide. 2015
2https://www.ussif.org/files/Trends/US%20SIF%202016%20Trends%20Overview.pdf
3https://a96fa647e5e0932a529c-f3023a2080eb9170df7c92d8b2a39df1.ssl.cf3.rackcdn.com/fact_sheet_sustainability.pdf
4http://sustainability.ppg.com/environment/emissions.aspx
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[title] => CHINACOAT2018 Guangzhou Offers Opportunities to Learn About Future of the Industry
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[slug] => chinacoat2018-guangzhou-offers-opportunities-to-learn-about-future-of-the-industry
[body] => CHINACOAT2018 will open its gate to global trade visitors from Dec. 4-6, 2018, at Area A of the China Import and Export Fair Complex in Guangzhou, P.R. China. The event will cover 7.5 exhibition halls: 1.1, 2.1, 3.1, 4.1, 1.2, 2.2, 3.2 & 4.2. The total gross exhibition area will be more than 78,500 square meters (21 percent more than the 2016 Guangzhou show). More than 1,150 exhibitors from 30 countries/regions are going to present their novel technologies and new products in five exhibit zones, namely “Powder Coatings Technology,” “UV/EB Technology & Products,” “International Machinery, Instrument & Services,” “China Machinery, Instrument & Services,” and “China & International Raw Materials.” Highlights this year include the total net exhibition area and the number of exhibitors of the “UV/EB Technology & Products’ exhibit zone, which has expanded by 67 percent in comparison with 2017 Shanghai show – likely due to the increasingly stringent environmental regulations and growing demand from automotive and industrial end-users.
The booming construction industry has accelerated the functional development of water-in-water multicolor coatings in recent years. Coatings machinery and equipment manufacturers continue to feature high performance, energy efficiency, and automation to boost sales. The ratio of using renewable or bio-based ingredients in raw materials and additives are getting higher. Environmentally friendly products are gradually snatching market shares. CHINACOAT2018 will once again be an international meeting place featuring world-class exhibitors from across the coatings industry, offering visitors a broad range of solutions and expertise. A sampling of participating companies includes Wanhua, Silok, Elementis, Covestro, Daoqum, CHTI, BYK, Kukdo, ECKART, KRONOS, Scott Bader, H.J. Unkel, Allnex, Runtai, Synthomer, Chemours, Afcona, Rosf, DIC, Arkema, Coatex, Sartomer, Bostik, DELTA Specialties, Cathay, LOTTE, LANXESS, Kusumoto, Ashland, etc.
Alongside the exhibition, 13 technical papers will be presented, three Technical Workshops will be held and 30+ Technical Seminars will be organized to provide valuable opportunities for visitors to network with industry leaders and to share knowledge on latest trends in innovative technologies. The 16th CHINACOAT Conference will feature the theme “Green Coatings – Advanced Technology & New Materials” from Dec. 3-4.
Thirteen technical papers will be delivered. Two are keynote papers: “Ultra-low Temperature Curable Powder Coatings for Wood: VOC-free Technology Below the Boiling Point of Water” and “Underwater Self-Healing Polymer.” Three workshops will be held Dec. 4-5:
Workshop 1: Design & Formulation for Low VOC, High-Performance Waterborne Metal Protective Coatings
Tutor: Dr. Cai Yu, TS & D scientist, Dow Coating Materials, Dow Chemical Company;
Workshop 2: Designing Optimal Formulations for Waterborne Polymers & Coatings
Tutor: Prof. Jamil Baghdachi, a professor at Eastern Michigan University, professor of Polymers and Coatings and guest professor at the Shanghai University of Engineering Science;
Workshop 3: Sustainability – Shifting Coatings & Ink Technology Paradigm
Tutor: Prof. Long Lin, professor of Color and Polymer Science, director of DP Centre of Industrial Collaboration & head of the department of Color Science, University of Leeds, UK
Visitors can now pre-register on CHINACOAT’s official website to receive a visitor pass in advance to avoid queuing during opening hours. Other registration methods such as WeChat and onsite registration are also available. Follow CHINACOAT on Facebook, Twitter, and LinkedIn to receive first-hand information.
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[title] => LyondellBasell Begins Construction of World's Largest PO/TBA Plant
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[body] => LyondellBasell officially broke ground on what will be the largest propylene oxide and tertiary butyl alcohol plant ever built.
The Houston area project is estimated to cost $2.4 billion, representing the single-largest capital investment in the company's history. Once in operation, the plant will produce 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (one million metric tons) of TBA annually. Startup of the plant is planned for 2021.
"[This] groundbreaking is a historic moment for our company," CEO Bob Patel said. "This plant will be the largest of its kind, built to meet the rising global demand for urethanes used by billions of consumers each day and clean-burning oxyfuels that will help improve air quality around the world. The construction of this project will provide jobs for our neighbors, support local businesses and strengthen our communities with increased tax revenues across the greater Houston region. As one of the cornerstones of our global growth strategy, the new plant will strengthen our ties in Houston and generate long-term value for our shareholders."
To optimize product balances and realize synergies between LyondellBasell sites, two facilities will be constructed on existing manufacturing sites. The 140-acre PO/TBA plant will be built at the LyondellBasell Channelview Complex located in Channelview, Texas while an associated 34-acre ethers unit, which will convert TBA to oxyfuels, will be built at the company's Bayport Complex in Pasadena, TX.
"The groundbreaking on this new project not only brings more job opportunities for Texans, it also adds to the growing diversity of our booming economy," Texas Gov. Greg Abbott said. "It is because of investments from companies like LyondellBasell that the Texas economy continues to be the envy of the nation. I thank LyondellBasell for their investment and wish them continued success."
Based on an analysis by the Greater Houston Partnership, LyondellBasell's PO/TBA project is estimated to generate more than $453 million in tax benefits for the county, school district, community college and other local taxing districts over a 10-year period. The Channelview site is expected to deliver $349 million in tax benefits and the Pasadena site is expected to create $104 million in benefits.
"As the Congressman representing the largest petrochemical and refining complex in North America, I welcome the news about the construction of these new PO/TBA facilities at LyondellBasell's Channelview and Bayport plants. These $2.4 billion facilities are not only an expansion of LyondellBasell, but an investment in the future of our communities along the Texas Gulf Coast," U.S. Rep. Brian Babin (TX-36) said. "The several billion pounds of PO and TBA products that will be produced will make the way for more local jobs, economic growth and regional expansion over the coming decade and beyond."
The project will create more than 2,200 construction jobs at the peak of construction and 160 permanent positions.
"We value our relationships with industry and are pleased LyondellBasell has chosen to continue to invest in our region with this project, which will bring tremendous benefit to our local economy and workforce," Harris County Judge Ed Emmett said. "The construction of this world-scale facility in Harris County is a testament to LyondellBasell's commitment to this area and further solidifies our position as a global petrochemical and manufacturing hub."
PO is used to make bedding, furniture, carpeting, coatings, building materials and adhesives, while TBA will be converted to two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane gasoline components that help gasoline burn cleaner and reduce emissions from automobiles.
Global demand for urethanes is projected to grow by four to five percent over the next five years due to emerging economies in Asia and India and their increased demand for consumer products. The global TBA market is expected to increase by three percent annually between 2018 and 2028, as drivers and governments in Asia Pacific and Latin America seek to improve air quality with cleaner-burning gasoline.
LyondellBasell plans to sell the PO and derivative products to both domestic and global customers, while the oxyfuels will be primarily sold into Latin America and Asia. A portion of the TBA will remain in the domestic market in the form of high purity isobutylene which is used in tires and lubricants. The majority of the products will be exported via the Houston Ship Channel.
The PO/TBA project is part of LyondellBasell's $5 billion organic growth program taking place on the U.S. Gulf Coast. LyondellBasell recently completed ethylene expansion projects at the company's La Porte, Channelview and Corpus Christi sites in Texas, finalizing a multi-year plan to increase annual ethylene capacity in the U.S. by two billion pounds (900,000 metric tons).
Additionally, LyondellBasell is currently constructing a world-scale polyethylene (PE) plant at its La Porte Complex, which utilizes the company's proprietary Hyperzone PE technology and will more than double that site's PE capacity to two billion pounds (900,000 metric tons) per year.
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[title] => Talking about Tariffs
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[body] => This year’s CHINACOAT will be held Dec. 4-6 in Guangzhou. While attendees will certainly be eager to learn about the latest product and technology offerings, I suspect there will also be a lot of talk about the tariffs President Donald Trump has recently imposed on China and their effect on the coatings industry.
According to a Sept. 17 article in the New York Times, President Trump boasted over Twitter about the power of taxing imports and warned that countries that do not agree to his trade demands will be “tariffed,” escalating tensions as crucial negotiations loom with China and Canada.
According to the article, Trump is not expected to relent and is expected to announce that the United States will impose tariffs on another $200 billion worth of Chinese goods, a move that people familiar with the negotiations say could scuttle trade talks.
Trump has threatened to tax all Chinese goods if Beijing does not change its trade practices and has already levied tariffs on steel and aluminum imports from other countries, including Canada, Mexico and the European Union.
It will be interesting to see how companies based in China feel about these tariffs and whether they are concerned about their impact on the specialty chemical and paint and coatings industries.
Another hot topic at this year’s show will be China’s push to reduce air pollution. According to some reports, China’s strengthened pollution laws have yielded results. In this month’s China Report (p. 42), Arnold Wang reports that China produced 257 thousand tons of container coatings in 2017. As a result of a move to waterborne coatings, the entire container industry reduced 120 thousand tons of VOC. The reduction was the result of a public commitment made by China Container Industry Association, an association led by several of the largest container companies in the world.
The Coatings World team will be on site at CHINACOAT. If you are unable to make the trip to Guangzhou, be sure to sign up for our e-newsletter. We will be covering the show and sending out daily updates. Sign up is free at www.coatingsworld.com.
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[title] => 2018 Top Companies Report Countdown: No. 1 PPG
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[summary] => Once again, Coatings World brings the industry our Top Companies Report.
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[title] => NSF Sustainability: Reducing GHG Emissions—Satisfying the Environment, Your Customers & Your Budget
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[body] => Amid an increasing trend toward setting and meeting aggressive sustainability targets, organizations are scrambling to navigate the complex challenge of quantifying and mitigating their impacts while meeting their customer and investor demands.
Frequently, these targets include reducing greenhouse gas (GHG) emissions. While regulatory action is stalled in many parts of the world, companies are leading the way to reduce their climate impact – some even setting goals according to the Science Based Targets initiative (SBTi), which aligns emission reduction targets with the 2015 Paris Climate Agreement to keep the global temperature rise below 2 degrees Celsius.
These commitments are not born of altruism alone. Long-term business sustainability – and risk mitigation – drive many organizations to invest resources toward combating climate change. Undertaking these initiatives may also boost the bottom line, as environmental concerns continue to permeate mainstream consumer and investor preferences. Approximately 90 percent of consumers are likely to switch to more sustainable brands given comparable price and quality, and more than one out of every five dollars under professional management in the United States was invested in sustainable strategies in 2016 (an increase of 33 percent from 2014).1,2
However, setting and achieving goals around GHG reduction is not always straightforward. While quantifying emissions from owned operations is the easiest place to start, often a company’s greatest climate impact occurs outside its four walls. Emissions from the supply chain, distribution, consumer use, investments and product end-of-life can represent a much larger carbon footprint – and a much more complex challenge to address.
More information about quantifying sustainability impacts and setting successful sustainability goals is detailed in a recent NSF International white paper.
For those unfamiliar with carbon accounting, GHG emissions are categorized into three scopes:
• Scope 1 represents direct emissions from sources that are owned or controlled by a company (e.g., natural gas combustion in a company facility).
• Scope 2 emissions are indirect emissions from sources that are owned or controlled by a company, such as those that result from the generation of electricity, heat or steam purchased by the company from a utility provider.
• Scope 3 emissions result from sources not owned or directly controlled by a company but related to its activities. Scope 3 includes activities such as employee travel, shipping, procurement, product use, waste disposal and wastewater treatment.
For those just getting started on their sustainability journey, conducting an inventory for Scope 1 and Scope 2 emissions is a logical place to start. However, leading organizations understand that larger strides can be made by quantifying impacts within Scope 3 and developing strategies to address them.
AkzoNobel: In 2017, AkzoNobel reduced CO2 emissions by 100,000 tons. It was able to achieve this drastic reduction by implementing a new bio-steam facility, a combined heat and power (CHP) plant that provides both electricity and steam from renewable biomass. The company has publicly set goals of being carbon neutral and using 100 percent renewable energy by 2050.3
PPG: Not all reductions are associated with energy use reductions. PPG, at its Milan operations, cut transportation-related CO2 emissions 76 percent in 2017 by switching to intermodal shipping jnk. Rather than exclusively using trucks for distributing products, intermodal transport takes advantage of energy-efficient trains for long-distance shipping, with trucks used for short distances and intermediate travel. This move saved PPG 615 metric tons of carbon dioxide equivalent (CO2e) emissions and nearly $390,000 annually in transportation costs.4
While GHG quantification and management can be a challenge, the trends are clear that customers, investors and consumers are calling for private sector action on climate change. Whether you are just starting out or are further along in your journey, you don’t have to navigate alone. Third-party resources and sustainability experts can help you conduct and verify a GHG inventory, benchmark against your competitors, set goals and take steps to achieve them.
Diana Bach
1Ecovadis. Building the Business Case for Sustainable Procurement: A 5-Step Guide. 2015
2https://www.ussif.org/files/Trends/US%20SIF%202016%20Trends%20Overview.pdf
3https://a96fa647e5e0932a529c-f3023a2080eb9170df7c92d8b2a39df1.ssl.cf3.rackcdn.com/fact_sheet_sustainability.pdf
4http://sustainability.ppg.com/environment/emissions.aspx
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[title] => CHINACOAT2018 Guangzhou Offers Opportunities to Learn About Future of the Industry
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[body] => CHINACOAT2018 will open its gate to global trade visitors from Dec. 4-6, 2018, at Area A of the China Import and Export Fair Complex in Guangzhou, P.R. China. The event will cover 7.5 exhibition halls: 1.1, 2.1, 3.1, 4.1, 1.2, 2.2, 3.2 & 4.2. The total gross exhibition area will be more than 78,500 square meters (21 percent more than the 2016 Guangzhou show). More than 1,150 exhibitors from 30 countries/regions are going to present their novel technologies and new products in five exhibit zones, namely “Powder Coatings Technology,” “UV/EB Technology & Products,” “International Machinery, Instrument & Services,” “China Machinery, Instrument & Services,” and “China & International Raw Materials.” Highlights this year include the total net exhibition area and the number of exhibitors of the “UV/EB Technology & Products’ exhibit zone, which has expanded by 67 percent in comparison with 2017 Shanghai show – likely due to the increasingly stringent environmental regulations and growing demand from automotive and industrial end-users.
The booming construction industry has accelerated the functional development of water-in-water multicolor coatings in recent years. Coatings machinery and equipment manufacturers continue to feature high performance, energy efficiency, and automation to boost sales. The ratio of using renewable or bio-based ingredients in raw materials and additives are getting higher. Environmentally friendly products are gradually snatching market shares. CHINACOAT2018 will once again be an international meeting place featuring world-class exhibitors from across the coatings industry, offering visitors a broad range of solutions and expertise. A sampling of participating companies includes Wanhua, Silok, Elementis, Covestro, Daoqum, CHTI, BYK, Kukdo, ECKART, KRONOS, Scott Bader, H.J. Unkel, Allnex, Runtai, Synthomer, Chemours, Afcona, Rosf, DIC, Arkema, Coatex, Sartomer, Bostik, DELTA Specialties, Cathay, LOTTE, LANXESS, Kusumoto, Ashland, etc.
Alongside the exhibition, 13 technical papers will be presented, three Technical Workshops will be held and 30+ Technical Seminars will be organized to provide valuable opportunities for visitors to network with industry leaders and to share knowledge on latest trends in innovative technologies. The 16th CHINACOAT Conference will feature the theme “Green Coatings – Advanced Technology & New Materials” from Dec. 3-4.
Thirteen technical papers will be delivered. Two are keynote papers: “Ultra-low Temperature Curable Powder Coatings for Wood: VOC-free Technology Below the Boiling Point of Water” and “Underwater Self-Healing Polymer.” Three workshops will be held Dec. 4-5:
Workshop 1: Design & Formulation for Low VOC, High-Performance Waterborne Metal Protective Coatings
Tutor: Dr. Cai Yu, TS & D scientist, Dow Coating Materials, Dow Chemical Company;
Workshop 2: Designing Optimal Formulations for Waterborne Polymers & Coatings
Tutor: Prof. Jamil Baghdachi, a professor at Eastern Michigan University, professor of Polymers and Coatings and guest professor at the Shanghai University of Engineering Science;
Workshop 3: Sustainability – Shifting Coatings & Ink Technology Paradigm
Tutor: Prof. Long Lin, professor of Color and Polymer Science, director of DP Centre of Industrial Collaboration & head of the department of Color Science, University of Leeds, UK
Visitors can now pre-register on CHINACOAT’s official website to receive a visitor pass in advance to avoid queuing during opening hours. Other registration methods such as WeChat and onsite registration are also available. Follow CHINACOAT on Facebook, Twitter, and LinkedIn to receive first-hand information.
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[title] => LyondellBasell Begins Construction of World's Largest PO/TBA Plant
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[body] => LyondellBasell officially broke ground on what will be the largest propylene oxide and tertiary butyl alcohol plant ever built.
The Houston area project is estimated to cost $2.4 billion, representing the single-largest capital investment in the company's history. Once in operation, the plant will produce 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (one million metric tons) of TBA annually. Startup of the plant is planned for 2021.
"[This] groundbreaking is a historic moment for our company," CEO Bob Patel said. "This plant will be the largest of its kind, built to meet the rising global demand for urethanes used by billions of consumers each day and clean-burning oxyfuels that will help improve air quality around the world. The construction of this project will provide jobs for our neighbors, support local businesses and strengthen our communities with increased tax revenues across the greater Houston region. As one of the cornerstones of our global growth strategy, the new plant will strengthen our ties in Houston and generate long-term value for our shareholders."
To optimize product balances and realize synergies between LyondellBasell sites, two facilities will be constructed on existing manufacturing sites. The 140-acre PO/TBA plant will be built at the LyondellBasell Channelview Complex located in Channelview, Texas while an associated 34-acre ethers unit, which will convert TBA to oxyfuels, will be built at the company's Bayport Complex in Pasadena, TX.
"The groundbreaking on this new project not only brings more job opportunities for Texans, it also adds to the growing diversity of our booming economy," Texas Gov. Greg Abbott said. "It is because of investments from companies like LyondellBasell that the Texas economy continues to be the envy of the nation. I thank LyondellBasell for their investment and wish them continued success."
Based on an analysis by the Greater Houston Partnership, LyondellBasell's PO/TBA project is estimated to generate more than $453 million in tax benefits for the county, school district, community college and other local taxing districts over a 10-year period. The Channelview site is expected to deliver $349 million in tax benefits and the Pasadena site is expected to create $104 million in benefits.
"As the Congressman representing the largest petrochemical and refining complex in North America, I welcome the news about the construction of these new PO/TBA facilities at LyondellBasell's Channelview and Bayport plants. These $2.4 billion facilities are not only an expansion of LyondellBasell, but an investment in the future of our communities along the Texas Gulf Coast," U.S. Rep. Brian Babin (TX-36) said. "The several billion pounds of PO and TBA products that will be produced will make the way for more local jobs, economic growth and regional expansion over the coming decade and beyond."
The project will create more than 2,200 construction jobs at the peak of construction and 160 permanent positions.
"We value our relationships with industry and are pleased LyondellBasell has chosen to continue to invest in our region with this project, which will bring tremendous benefit to our local economy and workforce," Harris County Judge Ed Emmett said. "The construction of this world-scale facility in Harris County is a testament to LyondellBasell's commitment to this area and further solidifies our position as a global petrochemical and manufacturing hub."
PO is used to make bedding, furniture, carpeting, coatings, building materials and adhesives, while TBA will be converted to two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane gasoline components that help gasoline burn cleaner and reduce emissions from automobiles.
Global demand for urethanes is projected to grow by four to five percent over the next five years due to emerging economies in Asia and India and their increased demand for consumer products. The global TBA market is expected to increase by three percent annually between 2018 and 2028, as drivers and governments in Asia Pacific and Latin America seek to improve air quality with cleaner-burning gasoline.
LyondellBasell plans to sell the PO and derivative products to both domestic and global customers, while the oxyfuels will be primarily sold into Latin America and Asia. A portion of the TBA will remain in the domestic market in the form of high purity isobutylene which is used in tires and lubricants. The majority of the products will be exported via the Houston Ship Channel.
The PO/TBA project is part of LyondellBasell's $5 billion organic growth program taking place on the U.S. Gulf Coast. LyondellBasell recently completed ethylene expansion projects at the company's La Porte, Channelview and Corpus Christi sites in Texas, finalizing a multi-year plan to increase annual ethylene capacity in the U.S. by two billion pounds (900,000 metric tons).
Additionally, LyondellBasell is currently constructing a world-scale polyethylene (PE) plant at its La Porte Complex, which utilizes the company's proprietary Hyperzone PE technology and will more than double that site's PE capacity to two billion pounds (900,000 metric tons) per year.
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[title] => Talking about Tariffs
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[body] => This year’s CHINACOAT will be held Dec. 4-6 in Guangzhou. While attendees will certainly be eager to learn about the latest product and technology offerings, I suspect there will also be a lot of talk about the tariffs President Donald Trump has recently imposed on China and their effect on the coatings industry.
According to a Sept. 17 article in the New York Times, President Trump boasted over Twitter about the power of taxing imports and warned that countries that do not agree to his trade demands will be “tariffed,” escalating tensions as crucial negotiations loom with China and Canada.
According to the article, Trump is not expected to relent and is expected to announce that the United States will impose tariffs on another $200 billion worth of Chinese goods, a move that people familiar with the negotiations say could scuttle trade talks.
Trump has threatened to tax all Chinese goods if Beijing does not change its trade practices and has already levied tariffs on steel and aluminum imports from other countries, including Canada, Mexico and the European Union.
It will be interesting to see how companies based in China feel about these tariffs and whether they are concerned about their impact on the specialty chemical and paint and coatings industries.
Another hot topic at this year’s show will be China’s push to reduce air pollution. According to some reports, China’s strengthened pollution laws have yielded results. In this month’s China Report (p. 42), Arnold Wang reports that China produced 257 thousand tons of container coatings in 2017. As a result of a move to waterborne coatings, the entire container industry reduced 120 thousand tons of VOC. The reduction was the result of a public commitment made by China Container Industry Association, an association led by several of the largest container companies in the world.
The Coatings World team will be on site at CHINACOAT. If you are unable to make the trip to Guangzhou, be sure to sign up for our e-newsletter. We will be covering the show and sending out daily updates. Sign up is free at www.coatingsworld.com.
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