The Catalyst Review October 2019 - 12

SPECIAL FEATURE
The chemicals and plastics
application segments lead the
global organic peroxide market,
in terms of volume and value.
The diacyl peroxide segment is
estimated to be the largest type
segment of the global organic
peroxide market. As known,
diacyl peroxide is used as a free
radical polymerization as well
as a curing agent for thermoset
resins and for cross-linking of
thermoplastics and elastomers/
rubbers.

Table 2. Major Polymerization Initiator Suppliers.

Source: Author
As expected, Asia Pacific is
estimated to be the largest
market for organic peroxide with China projected to be the largest market. Key companies competing in the global organic peroxide
market include Akzo Nobel (now Nouryon), Arkema, United Initiators (UI), Pergan, NOF Corporation, Chinasun Specialty Products, UI
Wanhua JV Peroxide Co., MPI Chemie, Sigma Aldrich, Novichem, Akpa Kimya Ambalaj Sanayi Ticaret Ltd., and Vanderbilts Chemicals
(MarketsandMarkets 2017; Grand View Research 2017). The most important azo-compounds suppliers are Nouryon, Arkema,
Waco, Miller-Stephenson, as well as Otsuka. Major suppliers of anionic initiators (alkyl-lithium) and organo-metallic polymerization
co-catalysts are Albemarle, Chemtura, Nippon Aluminum Alkyls and Chinese producers. Polymerization initiator and co-catalyst
supply (peroxides and organo-metallics) is a specialized business with requirements for exceptional safety procedures and carefully
monitored logistics. These aspects and chemistry provide significant barriers to entry by new suppliers. Furthermore, it was logical
for these suppliers to invest significantly not only in process research to reduce costs, but also into identifying and improving the
functionalities of new classes of activators. They began to work closely with developers of metallocene technologies (catalyst
suppliers, polymer producers and technology licensors) to find synergies in their research activities. Some were drawn into supply
of metallocene compounds, and then into metallocene catalyst assembly and activation. Polymer and related catalyst industry are
capital intensive with high investment rates, high R&D intensity and long times to profitability after investing.

The polymerization catalyst market is very competitive with many M&As, cooperation's agreements and so on along the years. There
is currently a market trend concerning some companies now involved in polymer/catalysts businesses that wish to become leaner
and more focused companies, in the hope to generate superior, faster and more certain value creation with substantially fewer risks
and uncertainties. In fact, there are some cases of market consolidation (e.g., Akzo Nobel selling its Specialty Chemicals Division,
Lanxess acquiring Chemtura specialty chemicals and selling its top-leader rubber business). The profiles of some the major initiator
suppliers are briefed in the following.
AkzoNobel is the world's leader supplier of organic peroxides, curing agents, organometallics initiators and co-catalysts and polymer
additives; they produce and supply the entire polymerization catalyst chain. They have broad experience in how to safely handle
highly-reactive chemicals. AkzoNobel offers also custom manufactured complex organics, such as ligands, metallocenes, single
site catalysts for polyolefins and elastomers using own proprietary technology, scale-up expertise, pilot facilities and commercial
scale production. AkzoNobel manufacturing sites and distribution centers are all around the globe, including joint ventures in
Japan, China and Germany. In May 2017, AkzoNobel enlarged its business portfolio by completing an expansion project for Polymer
Chemistry production facility in Los Reyes, Mexico; this expansion increased the company's peroxyester capacity in North America
by 40%. However, AkzoNobel completed during 2018 the divestiture of its Specialty Chemicals division, including the peroxides,
polymerization catalysts, co-catalysts, additives and activators to Carlyle Group and Singapore's GIC sovereign wealth fund for $12.5
Billion; the new unit now operates as a new global public company employing 10,000 people, called Nouryon (Noel 2018). After this
business spin off, AkzoNobel remains more focused in its coatings and paints businesses.
Arkema is a global manufacturer of specialty chemicals and advanced materials, with three business segments - High Performance
Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The group reports in 2018 annual sales of
€8.8 billion euros. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries (Arkema 2019).
Arkema was created in 2004 when French oil major Total restructured its AtoFina chemicals business. Arkema High Performance
Materials business gathers four high value added product lines: organic peroxides, specialty polyamides, fluoropolymers (PVDF),
molecular sieves for filtration and adsorption. Its flagship brands are Luperox (organic peroxide), Rilsan (polyamide 11), Kynar (PVDF),
and Siliporite (molecular sieves).
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The Catalyst Review October 2019

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